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Knowledge management is of prime importance to help different organizations making better use of knowledge in developing their activities and competitiveness. This paper underlines the different prospects and challenges concerning knowledge management with special emphasize on developing countries. This paper identifies a number of elements that can lead to the difficulty of applying knowledge management in developing countries namely: *Thinking of knowledge as only existing outside the minds of individuals, while most knowledge is implicit latent in their minds, *Lack of awareness of importance and role of tacit knowledge, and not encouraging its manifestation 'in ability to develop a definitions or identifications of praétical Imowledge and to distinguish between data, information and knowledge. *Focusing on knowledge stored in knowledge bases and not paying attention to the flow of knowledge, especially new knowledge *Failure to identify the ways of thinking and rational conclusions, assumptions and believes, and lack of awareness of the importance of experience. Depending on communication technology instead of human interaction (in the direct dialogue and face to face arguments, and Thinking and focusing on the past and present rather than on the future. The study recommended the following: *paying the due attention to technicalities of knowledge management. *Identifying multidisciplinary working groups to the responsible for devising knowledge management training programs and plans. *Building capacities and skills specialized in knowledge assembling, processing and dissemination. Rewards, and stimulating incentives could be very helpful in this respect. *Gradually proceeding into the implementation of knowledge management systems in such a way as to start with focal groups, and simple systems, then to gradually cover the whole population of the organization and more sophisticated systems.
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