Role of Knowledge Management in Enhancing the Effectiveness of the Gig Economy

1. Introduction

The emergence of the gig economy can be attributed to a convergence of factors, most notably the burgeoning demand for adaptable work structures and the rise of digital technology. A pivotal attribute of the gig economy lies in its provision of a novel model that fosters connectivity between workers and businesses through digital platforms, engendering short-term contractual work (Duggan et al., 2020). This paradigm has garnered increasing traction in recent years, owing to its manifold advantages for businesses, workers and consumers alike. Businesses stand to gain through optimized resource utilization, with the adoption of gig workers offering a cost-effective alternative to the recruitment of full-time employees (Friedman, 2014). This proves particularly enticing for startups and smaller enterprises grappling with resource constraints, seeking to maximize operational efficiency. Furthermore, gig work affords businesses access to a broader talent pool, streamlining the quest for individuals possessing specialized skills and expertise. For workers, the gig economy epitomizes enhanced flexibility and command over work schedules, enabling the pursuit of other interests or responsibilities beyond the confines of employment. This, in turn, can cultivate heightened job satisfaction, well-being and supplemental income-generating opportunities.

Additionally, the gig model bequeaths a plethora of choices and conveniences in the realm of personal services offered (Manyika et al., 2016). However, the gig economy does not traverse its course without encountering a litany of challenges that warrant meticulous consideration. Foremost among these concerns is the dearth of benefits and protections extended to gig workers. A substantial cohort of these workers remains bereft of health insurance, retirement benefits, or other safeguards, thereby engendering financial insecurity and ambiguity. Work-life management poses a formidable challenge, as gig workers navigate the intricacies of juggling multiple projects and clients, yielding a lack of predictability and income consistency (Pichault & McKeown, 2019). This predicament renders financial and personal planning arduous and is conducive to burnout and stress. Moreover, the gig economy leaves an indelible imprint on work culture and the employment landscape. As an increasing number of individuals gravitate towards gig work, conventional employment models witness a wane in popularity, heralding a transformative shift in the dynamics between businesses and workers. Lastly, the gig economy finds itself at the intersection of evolving political, cultural and business landscapes, including the impacts of digitization, evolving flexibility requirements, generational effects and the reverberations of the COVID-19 pandemic (Rao et al., 2021; Arora et al., 2023). The gig economy stands as a multifaceted and intricate phenomenon, swiftly evolving under the influence of economic, social and technological determinants. This trajectory is steered by the escalating demand for digital technology, the surge in preference for flexible work arrangements and the imperatives driving businesses to optimize their efficiency and resources. Consequently, it has disrupted traditional business models by conferring greater flexibility in hiring and facilitating access to an expansive talent pool.