Subject This article examines the quality management issues affecting the organization's business processes, as well as the knowledge management mechanism. Objectives The article aims to develop a methodology for assessing the effectiveness of applying the knowledge economy principles at the level of an organization. Methods For the study, we used the methods of comparative analysis, synthesis, and modeling. Results The article presents a developed methodology for evaluating the effectiveness of the knowledge-based economy principles application in the organization, as well as a method of knowledge importance prioritizing in terms of a limited budget. Conclusions Knowledge management is an element of the organization's quality management. The proposed knowledge management mechanism and methodology for assessing its effectiveness provide a good opportunity to strengthen organizations' intellectual capital and sustainable development.
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