Knowledge Management in Iran's Buy-back Oil Contracts: Structural Equations Modeling

Oil contracts are supposed to facilitate knowledge transfer from foreign investors to the host country staff improving local knowledge and managerial skills. This paper aims at examining knowledge management in Iran's oil buy-back contracts using structural equations modeling. According to Probst et al. (1998) knowledge management is a multi-dimensional phenomenon including knowledge targets, identification, acquisition, development, allocation, deployment, preservation and measurement of knowledge. Based on the two questionnaires relating to KM in Probst model and practice of KM in Iran oil industry, data gathered from experts of National Iranian Oil Company have been used to evaluate the knowledge management implications of buy- back contracts through structural equations modelling approach. According to the results buy-back contracts have no effect on the existing knowledge management situation in the oil industry. All of KM dimensions should be taken into account in buy-back contracts to improve the KM status in the oil industry.