Proceedings of the 8th International Conference on Intellectual ...

<strong>Proceedings</strong>
<strong>of</strong> <strong>the</strong>
<strong>8th</strong> <strong>International</strong>
<strong>Conference</strong> on
Intellectual Capital,
Knowledge
Management &
Organisational Learning
The Institute for Knowledge and
Innovation Sou<strong>the</strong>ast Asia (IKI-SEA) <strong>of</strong>
Bangkok University, Bangkok
Thailand
27-28 October 2011
Volume Two
Edited by
Vincent Ribiere and Lugkana Worasinchai
The Institute for Knowledge and Innovation
Sou<strong>the</strong>ast Asia (IKI-SEA) <strong>of</strong> Bangkok University
Bangkok, Thailand

Copyright The Authors, 2011. All Rights Reserved.
No reproduction, copy or transmission may be made without written permission from <strong>the</strong> individual authors.
Papers have been double-blind peer reviewed before final submission to <strong>the</strong> conference. Initially, paper
abstracts were read and selected by <strong>the</strong> conference panel for submission as possible papers for <strong>the</strong>
conference.
Many thanks to <strong>the</strong> reviewers who helped ensure <strong>the</strong> quality <strong>of</strong> <strong>the</strong> full papers.
These <strong>Conference</strong> Proceeding have been submitted to <strong>the</strong> Thomson ISI for indexing.
Fur<strong>the</strong>r copies <strong>of</strong> this book can be purchased from http://www.academic-bookshop.com
ISBN: 978-1-908272-20-1 Book
Published by Academic Publishing Limited
Reading
UK
44-118-972-4148
www.academic-publishing.org

Contents
Paper Title Author(s) Page
No.
Preface vii
Biographies <strong>of</strong> <strong>Conference</strong> Chairs, Programme Chair,
Keynote Speaker and Mini-track Chairs
Biographies <strong>of</strong> contributing authors xii
Volume One
Manpower Discipline Based on Knowledge Skills: The
Case <strong>of</strong> a Consulting Company in Iranian Commercial
Marine Industry
Attitudes Towards Changes and Organisational Learning:
China and Turkey
Beyond KM: The Management <strong>of</strong> BA in Knowing
Organizations
Toward a Meta-Syn<strong>the</strong>tic Support System for Reuse <strong>of</strong>
Government Information Resource on City Travel And
Traffic: Knowledge Asset Management Approaches for
Beijing
i
Peyman Akhavan, Reza Hosnavi,
and Amir Pezeshkan
Ruth Alas, Maaja Vadi, Halil Demirer
and Necdet Bilgin
Rivadávia Correa Drummond de
Alvarenga Neto
Xiaomi An, Shaotong Xu, Yong Mu,
Wei Wang, Xian Yang Bai, Andy
Dawson, Hongqi Han
Knowledge-Based Construction Element Database Marko Anzelak, Gert Morak and
Wolfgang Ebner
The Intellectual Capital for University Ranking: A
Conceptual Framework Study for Indonesian Higher
Education Insitutions
The Management <strong>of</strong> Trust in <strong>the</strong> Knowledge-Intensive
Industrial Clusters: Institutional vs. Personal Approaches
Knowledge Management, Cultural Knowledge and
Intercultural Competence
Impact <strong>of</strong> Knowledge Management Created by
Communities <strong>of</strong> Practice in Virtual Learning Environments
The Role <strong>of</strong> Social Networking Tools on Purchasing
Decision Making Process
Exploring <strong>the</strong> use <strong>of</strong> <strong>the</strong> Academic Body <strong>of</strong> Knowledge by
Practitioners: The Case <strong>of</strong> Chartered Business Valuators
in Canada
Strategic Thinking Dimensions in Emergent Economies
Business Education
The Organizational Learning Process in <strong>the</strong> Design <strong>of</strong> a
new Service
Quality in Teacher Education: A Systems Thinking
Approach
Developing Personal Knowledge Management Strategies
Through Problem-Based Learning
The Relationship Between Knowledge Management and
Intellectual Capital in Listed Companies <strong>of</strong> Mainland
China
Gabriel Prananingrum Aryanindita
and Andy Susilo Lukito Budi
Rita Babiliūtė and Kęstutis
Kriščiūnas
Leonard Barnett and Edward Carter
Bob Barrett
Aurilla Aurelie Bechina and Eli
Hustad
Lorne Booker, Nick Bontis and
Alexander Serenko
Constantin Bratianu and Valentin
Hapenciuc, Ivona Orzea, Ruxandra
Rauliuc and Ovidiu Ghita
Delio Ignacio Castañeda and
Sandra Patricia Duarte
Rajendra Chetty
Thira<strong>the</strong>p Chonmaitree
Samuel Kai Wah Chu, Wendy Wu,
Kin Hang Chan, and Olina Fu
x
1
11
20
33
42
50
56
65
75
82
90
99
108
115
123
129

Paper Title Author(s) Page
No.
Value Creation Through Collaborative Supply Chain:
Holistic Performance Enhancement Road Map
Organizational Learning and Transformational Leadership
in Higher Education
Knowledge Acquisition and Sharing: A Sustainable
Source <strong>of</strong> Competitive Advantage in Supply Chains
Influence <strong>of</strong> Organisational Changes on Social Networks
– A longitudinal Study <strong>of</strong> Knowledge Sharing and
Cooperation <strong>of</strong> PhD. Students
The complex Intellectual Capital Characteristic <strong>of</strong> an
Innovative Firm
Appropriation <strong>of</strong> S<strong>of</strong>tware Process Improvement
Standards: An Empirical Study in S<strong>of</strong>tware Development
Organizations
An Examination <strong>of</strong> Knowledge Management as a
Management Fashion
Towards a Technological, Managerial, and Socio-
Technical Well-Balanced KM Initiative Strategy Within
Organizations
Intellectual Property Valuation Decision Support System:
Towards Dynamic SMEs in Malaysia
Managing an Assessment Process <strong>of</strong> Science Educator
Needs in South Africa
ii
Ridha Derrouiche, Pongsak
Holimchayachotikul and Komgrit
Leksakul
139
Irra Chrisyanti Dewi 149
Ikechukwu Diugwu
Eva Eckenh<strong>of</strong>er
Irene Y.H. Fan and Rongbin W.B.
Lee
Ronny Gey
Kenneth Grant
Michel Grundstein
Hezlin Harris, Kamarulzaman Ab
Aziz and Mariati Norhashim
157
164
172
182
190
200
211
Shaheed Hartley 219
A Community Framework for Knowledge Creation Igor Hawryszkiewycz 227
Facilitating Distributed Networks <strong>of</strong> Knowledge: A
Boundary Management Perspective
Does Knowledge Stickiness Affect a Firm’s Innovation
Capability? Empirical Evidence From Indonesian
Furniture SMEs
Organizational Learning in Pr<strong>of</strong>it and Non-Pr<strong>of</strong>it
Organizations: The Perspective <strong>of</strong> Innovative Culture
Development
Balancing <strong>the</strong> Incentives and Controls in <strong>the</strong> Knowledge
Partnership-Based Business Models
Eli Hustad and Aurilla Aurelie
Bechina
Nurul Indarti
Brigita Janiunaite, Gintautas
Cibulskas and Monika Petraite
Giedrius Jucevičius
Organization’s Knowing or Organizational Knowing? Palmira Juceviciene and Vyda
Mozuriuniene
Sourcing Knowledge for <strong>the</strong> Cluster or Business System Robertas Jucevicius 284
Let’s innovate! Should Development Projects be Creating
Learning? – a Case Study on Employee and Employer
Perceptions Within a City Organization
Managing Information Overload - Teachable Media
Agents
Farmers’ Knowledge Management in Fish Disease
Treatment: The Case <strong>of</strong> Smallholder Farmers in <strong>the</strong>
Mekong River Delta, Vietnam
Developing Human Capital through Neuro-Linguistic
Programming
Annukka Jyrämä, Pia Bäcklund,
Heini Väisänen, and Henrikki
Tikkanen
Harri Ketamo
Le Nguyen Doan Khoi
234
243
253
265
274
292
301
309
Eric Kong 319

Paper Title Author(s) Page
No.
Main Descriptors <strong>of</strong> Pr<strong>of</strong>essional Gestures, Regarding to
Their Intergenerational Transfer
An Integration <strong>of</strong> Domain Ontology-Based Knowledge
Management and SQuaRE for Thai Local S<strong>of</strong>tware
Companies
The Influence <strong>of</strong> Intellectual Capital on Organizational
Performance in two Contexts
A Lean Knowledge Life Cycle Methodology in Product
Development
Knowledge Leadership in Value Networks: The Joint
Effect <strong>of</strong> Trustworthiness Factors and Levers <strong>of</strong> Control.
Generating Wealth Through Innovations: Is it Necessary
to Manage Intellectual Capital?
A Knowledge Management System to Manage
Knowledge in a Collaborative S<strong>of</strong>tware Maintenance
Environment
Measuring Intellectual Capital Performance in <strong>the</strong> Case <strong>of</strong>
Romanian Public Companies
The Arrival <strong>of</strong> <strong>the</strong> Generation “Y”: The Managerial
Implications for French Health and Social Organizations
An Activity Based Costing System for Research
Competency Enhancement : A Case Study <strong>of</strong> Knowledge
Workers in Boromarajonani College <strong>of</strong> Nursing, Chiang
Mai
The Dark Side <strong>of</strong> Social Capital in Thai Culture: an
Obstruction <strong>of</strong> Learning Process within <strong>the</strong> Social
Network
Volume Two
Evaluation and Response from Students and Teachers on
a Preliminary Launch <strong>of</strong> an ELT Resource-based Website
Strategic and Operational Risk in an <strong>International</strong>
Cooperation Agency: A Knowledge Management Solution
The Role <strong>of</strong> Knowledge Hierarchy Within <strong>the</strong> OLCs:
Critical Success Stories <strong>of</strong> Turkish Cypriot Firms
iii
Sophie Le Bellu and Benoit Le Blanc
Pornpen Lertthasanawong and
Nopasit Chakpitak
Ya-Hui Ling
Maksim Maksimovic, Ahmed Al-
Ashaab, Essam Shehab and Robert
Sulowski
Maurizio Massaro and Andrea Moro
326
336
344
352
358
Helen Mitchell and Dennis Viehland 366
Mohd Zali Mohd Nor, Rusli Abdullah,
Masrah Azrifah Azmi Murad and
Mohd Hasan Selamat
Maria Cristina Morariu
Bertrand Pauget and Ahmed
Dammak
Wannapa Pipattanawong, Pitipong
Yodmongkon and Nopasit Chakpitak
374
382
395
404
Siwarit Pongsakornrungsilp 411
Preawpan Pringprom
Eduardo Rodriguez, John Edwards
and Angel Facundo
Mustafa Sağsan and Ahmet Ertugan
Migrant Labour in <strong>the</strong> Workforce Per Øystein Saksvik, Carla Dahl-
Jørgensen and Sturle Danielsen
Tvedt
Knowledge Management Process and Audit Firm’s
Performance: An Empirical Evidence
Value Creation Through Knowledge Management And
Intellectual Capital: An Empirical Investigation
Learning Organisation, Knowledge Management Process
and Organisational Performance: Empirical Evidence
From a Public University
Application <strong>of</strong> Knowledge Management to Intellectual
Corpus Valorisation
418
427
443
458
Kalsom Salleh and Fathiah Hashim 468
Kalsom Salleh and Ching Choo
Huang
Kalsom Salleh and Ching Choo
Huang
Pierre Saulais and Jean-Louis
Ermine
478
485
494

Paper Title Author(s) Page
No.
Leadership Behaviour Practices in Knowledge-
Management Implementation
iv
Joyce Nesamani Simson, Alan Giffin
Downe, and Rohiza Ahmad
Why are Workers Resistant to Sharing Knowledge? Vijayeta Srivastava 513
Critical Success Factors <strong>of</strong> Knowledge Management in
Malaysian Tourism Industry
Investigation <strong>of</strong> Critical Attributes <strong>of</strong> <strong>the</strong> Organizational
Knowledge Culture
Learning in <strong>the</strong> Context <strong>of</strong> Inappropriate Internet use
Among Students <strong>of</strong> a Provincial High School in Nor<strong>the</strong>rn
Thailand
Intellectual Capital Reporting in Spanish Higher Education
Institutions: A User Perspective
Evaluating <strong>the</strong> Knowledge Sharing Performance <strong>of</strong> <strong>the</strong>
Prince <strong>of</strong> Songkla University Using a Hybrid MCDM
Model
The Competence Approach to <strong>the</strong> Creation and Updating
<strong>of</strong> Academic Knowledge in <strong>the</strong> Smart Economy
Adopting Cell Phones in <strong>the</strong> Classroom: A Study <strong>of</strong>
Students’ Attitudes and Behaviors on Using Cell Phones
Both in and out <strong>of</strong> <strong>the</strong> Classroom
Subhacini Subramaniam, Sharmila
Rani Moganadas and Kalaiarasi
Sonaimuthu Anbananthan
Šajeva Svetlana and Robertas
Jucevičius
Amarin Tawata and Pitipong
Yodmongkon
Ángel Tejada, Yolanda Ramírez and
Agustín Baidez
504
521
529
539
547
Thoedtida Thipparate 563
Natalia Tikhomirova, Vladimir
Tikhomirov, Valentina Maksimova
and Yury Telnov
Willard Van De Bogart
Human Capital Organization <strong>of</strong> Hospital Management Asaf Varol 580
Experiential Learning on Distance Education Nurhayat Varol 587
Organizational Learning Rate Measurement Instruments
for Business Schools
A Sense-Making Analysis <strong>of</strong> Knowledge Transfer in
Global Supply Chain Relationships: Case <strong>of</strong> Scientific
Equipment Resellers in Thailand
Knowledge Elicitation in Unstructured Business
Processes: The Preliminary Findings From a Case Study
Some Principles Underpinning Knowledge Management
Systems Development
Effect <strong>of</strong> Strategic Learning System and Organization
Structure on e-Government Performance: A Survey in
Public Sector by Means <strong>of</strong> Artificial Neural Network.
Karen Voolaid and Üllas Ehrlich
Lugkana Worasinchai and Farhad
Daneshgar
Jessica Yip, W.B. Lee, Eric Tsui,
and Cherie Lui
Aboubakr Moteleb Zade and Mark
Woodman
Kursad Zorlu
PhD papers 637
Exploring Employee Perceptions <strong>of</strong> <strong>the</strong> Relationships
Among Knowledge Sharing Capability, Organisational
Culture and Knowledge Sharing Success: Their
Implications for HRM Practice
Knowledge Boundaries <strong>of</strong> <strong>the</strong> Firm in Russian Heavy
Engineering Companies
A Framework Linking Knowledge Management Practices
and Healthcare Delivery Performance
Slide Presentation as a Knowledge Visualization Tool for
Knowledge Transfer: The Case <strong>of</strong> Information Processing
Enhancement <strong>of</strong> Field Sales Force
Hayati Abdul Jalal, Paul Toulson and
David Tweed
Evgeny Blagov
Prantik Bordoloi and Nazrul Islam
Daranee Delorme
Dhurakij Pundit
555
571
593
601
611
617
626
639
647
655
663

Paper Title Author(s) Page
No.
Knowledge Management in e-Tourism Curriculum Design:
A Knowledge Supply Chain
Knowledge Sharing in Ego-Centered Knowledge
Networks <strong>of</strong> Pr<strong>of</strong>essionals: Role <strong>of</strong> Transactive Memory,
Trust, and Reciprocity
Measuring Intellectual Capital for Romanian SMEs: A
Comparative Analysis by Field <strong>of</strong> Activity
HRM Practices and Individual Knowledge-Sharing: An
Empirical Study <strong>of</strong> Higher Education Institutions in
Pakistan
Components <strong>of</strong> Knowledge Management in Designing a
Health Volunteer Network for an Alcohol Drinking
Behavior Modification Learning System
Market Capital, Intellectual Property Rights and Economic
Growth <strong>of</strong> OPEC Member Countries: A Panel Data
Approach
Raising <strong>the</strong> Research Pr<strong>of</strong>ile <strong>of</strong> <strong>the</strong> Faculty <strong>of</strong> Humanities,
Chiang Mai University
Systems Archetypes and Learning Templates for
Enhancing Environmental Security
Critical Success Factors in KM-Based Innovative
Business: Evidence From Systematic Reviews
Voluntary Intellectual Capital Disclosure Patterns:
Empirical Evidence From <strong>the</strong> United Arab Emirates
A KM Perspective on <strong>the</strong> Progression Towards an
Electronic Patient Record Within an NHS Hospital
Organisational Learning Capabilities (OLC) Toward
Knowledge Performance <strong>of</strong> Librarians: A Research Model
The Role <strong>of</strong> key Intangible Performance Indicators for
Organisational Success
Intellectual Capital Efficiency, Innovation Capital and
Firm’s Performance in Malaysian Technology
GRC: An Intellectual Capital Model for <strong>the</strong> Faculty <strong>of</strong>
Affiliated Universities in Thailand
Using Ontologies for Knowledge Management: The
Chaipattana Aerator Project
Knowledge Management in <strong>the</strong> East: A Chinese
Manufacturing Case Study
v
Jing Fu, Nopasit Chakpitak, Paul
Goldsmith, Pradorn Sureephong and
Taksina Kunarucks
Mahmood Ghaznavi, Martin Perry,
Keri Logan and Paul Toulson
Bogdan-Vasile Ileanu, Claudiu
Herteliu and Tudorel Andrei
Salman Iqbal, Paul Toulson and
David Tweed
Thunyaporn Jaimung and Pitipong
Yodmongkon
Iman jokar Tang karami, Mehdi
Taghavi and Farhad Ghaffari
Krith Karnjanakitti, Pitipong
Yodmongkon and Nopasit Chakpitak
Marissara Kummool, Pitipong
Yodmongkon, Nopasit Chakpitak,
Paul Goldsmith and Walaiporn
Tantikanangkul
Chaiyatorn Limapornvanich, Mark
Gannon and Margaret Lumbers
George Majdalany, Armond
Manassian and Ramzi Nekhili
Sara McCracken and John Edwards
Mohd Shamsul Mohd Shoid, Norliya
Ahmad Kassim, Mohd Idzwan Mohd
Salleh
Hee Song Ng, Daisy Mui Hung Kee
and Mat<strong>the</strong>w Brannan
Azlina Rahim, Ruhaya Atan and
Amrizah Kamaluddin
Paipan Thanalerdsopit, Napat
Harnpornchai, Pitipong Yodmongkol
and Komsak Meksamoot
Jirawit Yanchinda, Pitipong
Yodmongkon, Nopasit Chakpitak
and Paul Goldsmith
Lei Ye, David Tweed and Paul
Toulson
672
681
689
699
709
715
724
731
742
750
762
771
779
788
797
806
818

Work in Progress Papers 827
Knowledge Sharing for <strong>the</strong> Public Sector: Cross- Border
Cooperation Between Hungarian and Romanian
Academics in <strong>the</strong> Field <strong>of</strong> new Public Management
Creating Computational Support for <strong>the</strong> Decision Making
<strong>of</strong> <strong>the</strong> Cross-Border: SMEs as key Driver For Sustainable
Regional Development
Evaluating <strong>the</strong> Impact <strong>of</strong> a new Technology Within a
Business Environment: A Methodology Supporting
Strategic Choices
Requirements <strong>of</strong> Knowledge-Management in Industrial
Organisations and <strong>the</strong> Sector <strong>of</strong> Public Safety and
Security: Same or Different?
vi
Madela Abrudan, Mária Ujhelyi,
Anca Dodescu and Enikő Szilágyi
Elena Botezat, Anca Dodescu,
Veronika Fenyves, and Andras
Nabradi
Angelo Corallo and Fabrizio Errico
Christian Lindemann, Christina
Schäfer and Rainer Koch
Measuring Knowledge Víctor Reyes-Alcázar, Antonio
Romero-Tabares and Antonio
Torres-Olivera
Tracking Online Learning Communities Using Ontologies José Braga de Vasconcelos, Sónia
Sousa, David Ribeiro Lamas and
Ilya Shmorgun
Non Academic papers 857
Development and Implementation <strong>of</strong> an Intellectual
Capital Model from Balanced Scorecard: ECOPETROL
S.A. a Practical Experience
The Challenges <strong>of</strong> Locating Experts in a Global Research
and Development Organization
Martha López, Oscar Guerra and
Sonia Castro
Mohamed Rabhi
829
832
836
841
845
850
859
873

Preface
These proceedings represent <strong>the</strong> work <strong>of</strong> researchers participating in <strong>the</strong> <strong>8th</strong> <strong>International</strong> <strong>Conference</strong> on
Intellectual Capital, Knowledge Management & Organisational Learning – ICICKM 2011, which is being
hosted by <strong>the</strong> Institute for Knowledge and Innovation Sou<strong>the</strong>ast Asia (IKI-SEA) <strong>of</strong> Bangkok University,
Bangkok, Thailand.
The conference will be opened with a keynote from Patrick Lambe, Straits Knowledge, Singapore on <strong>the</strong>
topic <strong>of</strong> The three tribes: learning, knowledge management and intellectual capital. The keynote address on
<strong>the</strong> second day is delivered by William E. Halal from The George Washington University, Washington, DC,
USA on <strong>the</strong> subject <strong>of</strong> Collective Intelligence for Research and Strategy: With Highlights from <strong>the</strong> TechCast
Project.
The ICICKM <strong>Conference</strong> constitutes a valuable platform for individuals to present <strong>the</strong>ir research findings,
display <strong>the</strong>ir work in progress and discuss conceptual advances in many different branches <strong>of</strong> intellectual
capital, knowledge management and organisational learning. At <strong>the</strong> same time, it provides an important
opportunity for members <strong>of</strong> <strong>the</strong> KM community to come toge<strong>the</strong>r with peers, share knowledge and exchange
ideas. ICICKM has evolved and developed over <strong>the</strong> past eight years, and <strong>the</strong> range <strong>of</strong> papers accepted in
this year’s conference ensures an interesting two-day event.
Following an initial submission <strong>of</strong> 272 abstracts that have undergone a double blind peer review process, 71
research papers, 21 PhD research papers,6 work-in-progress papers and 2 non-academic papers are
published in <strong>the</strong> ICICKM 2011 <strong>Conference</strong> <strong>Proceedings</strong>, representing research results from Australia, Brazil,
Canada, China, Columbia, Czech Republic, Estonia, Finland, France, Germany, Hong Kong, India,
Indonesia, Iran, Italy, Jordan, Lithuania, Malaysia, New Zealand, Nigeria, Norway, Portugal, Romania,
Russia, Saudi Arabia, South Africa, Spain, Taiwan, The Ne<strong>the</strong>rlands, Thailand, UK, UAE, USA and Vietnam.
We hope that you have an enjoyable conference.
Vincent Ribiere and Lugkana Worasinchai
Co-Progamme Chairs
vii

<strong>Conference</strong> Committee
<strong>Conference</strong> Executive
Dr. Tiparatana Wongcharoen, Bangkok University - Thailand
Dr. Siriwan Ratanakarn, Bangkok University - Thailand
Pr<strong>of</strong>. Aurilla Bechina Arntzen, College University i Buskerud, Kongsberg – Norway
Niall Sinclair, IKI-SEA - Thailand
Pr<strong>of</strong>. Michael Stankosky, George Washington University - USA
Dr. Francesco Calabrese, Institute for Knowledge and Innovation (GWU) - USA
Dr. Prapon Phasukyud, The Knowledge Management Institute (KMI) – Thailand
Pr<strong>of</strong>. W.B. Lee, Knowledge Management Research Centre, The Hong Kong Polytechnic University, Hong Kong, China
Pr<strong>of</strong>. Jean-Louis Ermine, Telecom Business School – France
Danièle Chauvel, SKEMA Business School - France
Charles Despres, SKEMA Business School – France
Dr. Kevin C. Desouza, University <strong>of</strong> Washington, USA
Dr. Suzanne Zyngier, Latrobe University, Australia
<strong>Conference</strong> Members
The conference programme committee consists <strong>of</strong> key people in <strong>the</strong> intellectual capital, knowledge management and
organisational learning communities; <strong>the</strong> list includes leading academics, researchers, and practitioners from around <strong>the</strong>
world. The following people have confirmed <strong>the</strong>ir participation:
Mohd Helmy Abd Wahab (Universiti Tun Hussein Onn , Malaysia); Marie-Helene Abel (Compiegne University <strong>of</strong>
Technology, France); El Sayed Abou-Zeid (Concordia University, Montreal, Canada); Maria-Madela Abrudan (University
<strong>of</strong> Oradea, Romania); Bulent Acma (Anadolu University, Turkey,); Faisal Ahmed (Asia-Pacific Institute <strong>of</strong> Management,
New Dehli, India); Joao Pedro Albino (UNESP , Brazil); Mulhim Al-Doori (American University in Dubai, UAE); Tahseen
Al-Doori (American University in Dubai, UAE); Alex Alexandropoulos (American University in Dubai, UAE); Mohammed
Allehaibi (Umm Alqura University, Makkah, Saudi Arabia); Luis Alvarado (Universidad Catolica del Norte , Chile); Xiaomi
An (Renmin University <strong>of</strong> China, China,); Xiaomi An (Renmin University <strong>of</strong> China, China,); Gil Ariely (School <strong>of</strong>
Government, Interdisciplinary Center Herzliya, Israel); Aurilla Arntzen (Hedmark University College, Norway); Yousif
Asfour (Injazat Data Systems, Abu Dhabi, UAE); "Derek Asoh (University <strong>of</strong> Ottawa , Canada);" Bijan Azad (AUB school
<strong>of</strong> Business, Lebanon); Haragobinda Baidya (Minority Self Empowerment Foundation, Dhaka, Bangladesh); Michael
Banutu-Gomez (Rowan University, USA); Tomas Gabriel Bas (Pontificia Universidad Catolica de Chile, Chile); Abdullah
Bayat (University <strong>of</strong> <strong>the</strong> Western Cape, Bellville, South Africa); Esra Bektas (TU Delft, Ne<strong>the</strong>rlands); Diana Belohlavek
(The Unicist Research Institute, Argentina); Jean Pierre Briffaut (Institut National des Telecommunications, France);
Sheryl Buckley (University <strong>of</strong> Johannesburg, South Africa); Acma Bulent (Anadolu University, Eskisehir, Turkey);
Francesco Calabrese (Institute for Knowledge and Innovation (GWU), USA); Ivy Chan (Chinese University <strong>of</strong> Hong
Kong, China); Eric Chan (Knowledge Management Development Centre, , Hong Kong); Daniele Chauvel (SKEMA
Business School , France); Phaik Kin Cheah (Universiti Tunku Abdul Rahman, Malaysia,); Benny Cheung (The Hong
kong polytechnic university, Hong Kong); Vikas Choudhary (National Institute <strong>of</strong> Technology,Kurukshetra, India); Rashid
Chowdhury (Independent University, Bangladesh, Chittagong, Bangladesh); Sam Chu (The University <strong>of</strong> Hong Kong,
Hong Kong); Reet Cronk (Harding University, USA); Pablo da Silveira (Catholic University <strong>of</strong> Uruguay, Uruguay);
Raymond D'Amore (The Mitre Corporation, McLean, VA, USA); Ge<strong>of</strong>frey Darnton (Bournemouth University, UK); Kandy
Dayaram (Curtin University <strong>of</strong> Technology, Perth, Australia); Basel Dayyani (American University in Dubai, UAE);
Rivadavia Correa Drummond de Alvarenga Neto (Fundação Dom Cabral , Brazil); John Deary (Independent Consultant,
UK & Italy); Paola demartini (University <strong>of</strong> Rome 3, Faculty <strong>of</strong> Economics, department <strong>of</strong> Management and Law, Italy,);
Michael D'Eredita (Syracuse University, New York, USA); Kevin Desouza (University <strong>of</strong> Washington, USA); Charles
Despres (Skema Business School, Sophia-Antipolis, Nice, France); Lian (Evangelia) Dumouchel (Thompson Rivers
University, Canada,); Jamal El-Den (Charles Darwin University, Australia); Scott Erickson (Ithaca College, USA); Jean-
Louis Ermine (Institut National des telecommunications, Evry, France); Ge<strong>of</strong>f Erwin (Independent Consultant, South
Africa); Mercy Escalante (Sao Paulo University, Brazil); Ibrahim Fahmi (Glasgow Caledonian University, UK); Nima
Fallah (University <strong>of</strong> Strasbourg, France); Tony Feghali (AUB school <strong>of</strong> Business, Lebanon); Ines Friss de Kereki (ORT
Uruguay University, Montevideo, Uruguay); John Girard (Minot State University, , USA); Marco Giuliani (University <strong>of</strong> The
Marche, Ancona, Italy); Andrew Goh (<strong>International</strong> Management Journals, Singapore); Sayed Mahdi Golestan Hashemi
(Faculty <strong>of</strong> Industrial Engineering - MA University & center for Creatology, Iran); Fátima Gonçalves (ISCAC, Portugal);
Ken Grant (Ryerson University, Toronto, Canada); Michel Grundstein (Lamsade Paris Dauphine University, France);
Anne Hakansson (Uppsala University, Sweden); Leila Halawi (American University in Dubai, UAE); Igor Hawryszkiewycz
(University <strong>of</strong> Technology, Sydney, Australia); Ilona Heldal (Chalmers University <strong>of</strong> Technology, Sweden,); Ilona Heldal
(Chalmers University <strong>of</strong> Technology, Sweden,); Liaquat Hossain (Syracuse University, USA); Yassaman Imani
(University <strong>of</strong> Hertfordshire, United Kingdom,); Yassaman Imani (University <strong>of</strong> Hertfordshire, United Kingdom,); Brigita
Janiunaite (Kaunas University <strong>of</strong> Tehnology, Lithuania,); Brigita Janiunaite (Kaunas University <strong>of</strong> Tehnology, Lithuania,);
Dumay John (University <strong>of</strong> Sydney, Australia,); Dumay John (University <strong>of</strong> Sydney, Australia,); Dawn Jutla (University <strong>of</strong>
Halifax, Canada); Amrizah Kamaluddin (Universiti Teknologi MARA, Malaysia,); Amrizah Kamaluddin (Universiti
Teknologi MARA, Malaysia,); Silva Karkoulian (Lebanese American University Beirut Campus, Lebanon); Aino Kianto
(Lappeenranta University <strong>of</strong> Technology, Finland); Andrew Kok (University <strong>of</strong> Johannesburg, South Africa); Eric Kong
(University <strong>of</strong> Sou<strong>the</strong>rn Queensland, Australia,); Eric Kong (University <strong>of</strong> Sou<strong>the</strong>rn Queensland, Australia,); Richard
Lackes (Institute <strong>of</strong> Business Informatics, TU Dortmund, Germany, ); Richard Lackes (Institute <strong>of</strong> Business Informatics,
viii

TU Dortmund, Germany, ); Wing Bun Lee (Hong Kong Polytechnic University, Hong Kong); Rongbin W.B. Lee (The
Hong kong polytechnic university, Hong Kong); Rene Leveaux (University <strong>of</strong> Technology, Sydney, Australia); Rita Yi Man
Li (Hong Kong Shue Yan University, Hong Kong); Antti Lönnqvist (Tampere University <strong>of</strong> Technology, Finland); Ilidio
Lopes ( Polytechnic Institute <strong>of</strong> Santarém; University <strong>of</strong> Coimbra, Portugal, Portugal); Felipa Lopes dos Reis (University
Aberta, Portugal); Bernard Marr (The Advanced Performance Institute, UK); Fergal McGrath (University <strong>of</strong> Limerick,
Ireland); Kostas Metaxiotis (National Technical University A<strong>the</strong>ns, Greece); Ian Michael (Zayed University, Dubai, UAE);
Sandra M<strong>of</strong>fett (University <strong>of</strong> Ulster, UK); Kavoos Mohannak (Queensland University <strong>of</strong> Technology, Australia,); Kavoos
Mohannak (Queensland University <strong>of</strong> Technology, Australia,); Elaine Mosconi (Université Laval, Quebec, Canada);
Pumela Msweli-Mbanga (University <strong>of</strong> KwaZulu-Natal, Durban, South Africa); Claudia Mueller (Innsbruck University
School <strong>of</strong> Management, Austria); Hafizi Muhamad Ali (Yanbu University College, Saudi Arabia,); Hafizi Muhamad Ali
(Yanbu University College, Saudi Arabia,); Maria Mylopoulos (University <strong>of</strong> Toronto, Canada); Nader Nada (College <strong>of</strong>
Computing, AAST, Egypt); Atulya Nagar (Liverpool Hope University College, Liverpool, UK); Artie Ng (The Hong Kong
Polytechnic University, Hong Kong,); Chetsada Noknoi (Thaksin University, Songkhla, Thailand); Kevin O’Sullivan (New
York Institute <strong>of</strong> Technology, USA); Abdelnaser Omran ( Universiti Sains Malaysia, Malaysia); Ibrahim Osman (American
University <strong>of</strong> Beirut, Lebanon); Haris Papoutsakis (TEI (Technological Educational Institute) <strong>of</strong> Crete, Greece); Jayanth
Paraki (Omega Associates, Bangalore, India); Robert Parent (Université de Sherbrooke, Quebec, Canada); Shaun
Pa<strong>the</strong>r (Cape Peninsula University <strong>of</strong> Technology, , South Africa); Dan Paulin (Chalmers University <strong>of</strong> Technology,
Göteborg, Sweden); Parag Pendharkar (Pennsylvania State University at Harrisburg, USA); Tzu-Ju Ann Peng ("National
Cheng-Chi University (NCCU)"., Taiwan); Milly Perry (The Open University <strong>of</strong> Israel, Israel); Monika Petraite (Kaunas
University <strong>of</strong> Technology, Lithuania, ); Prapon Phasukyud (The Knowledge Management Institute (KMI) - Thailand,
Thailand); Rajiv Phougat (IBM Corporation, USA); John Politis (Neapolis University, Pafos, Cyprus); Agnieta Pretorius
(Tshwane University <strong>of</strong> Technology, Witbank, South Africa); Devendra Punia (Wipro Consulting Services, New Delhi,
India); Mohamed Rabhi (Saudi Basic Industries Corporation (SABIC), Saudi Arabia); Bilba Radu (George Bacovia
University, Romania); Subashini Rajagopal, (VIT University, India); Gillian Ragsdell (Information Science, Loughborough
University, UK); Siriwan Ratanakarn (Bangkok University, Thailand, Thailand); Vincent Ribière (The Institute for
Knowledge and Innovation Sou<strong>the</strong>ast Asia (IKI-SEA) <strong>of</strong> Bangkok University, Bangkok, , Thailand); Waltraut Ritter (Asia
Pacific Intellectual Capital Centre, Hong Kong, ); Eduardo Rodriguez (IQ Analytics, Ottawa, Canada); Goran Roos
(Cranfield University, UK); "Mustafa Sagsan (Near East University, Nicosia, Nor<strong>the</strong>rn Cyprus, CYPRUS);" Randa
Salamoun Sioufi (American University <strong>of</strong> Beirut, Lebanon, Lebanon); Kalsom Salleh (University Technology MARA,
Malaysia,); Mathana Santiwat (President, Bangkok University, Bangkok, , Thailand); Giovanni Schiuma (Universita dela
Basilicata, Matera, Italy); Jeorge Secada (University <strong>of</strong> Virginia, USA); Enric Serradell-Lopez (Open University <strong>of</strong>
Catalonia, Barcelona, Spain); Amanuddin Shamsuddin (Universiti Tenaga Nasional, Malaysia,); Niall Sinclair (IKI-SEA-
Thailand, Thailand); Sharad Sinha (R.B.S. College <strong>of</strong> Education, Rewari, India); Michael Stankosky (George Washington
University, USA); Jukka Surakka (Arcada-University <strong>of</strong> Applied Science, Helsinki, Finland); Nya Ling Christine Tan
(Multimedia University, Malaysia,); Cheng Ling Tan (Universiti Sains Malaysia, Malaysia,); Paul Toulson (Massey
University , New Zealand); Nachiketa Tripathi (Indian Institute <strong>of</strong> Technology Guwahati, India); Edward Truch (Lancaster
University Management School, UK); Eric Tsui (Knowledge Management Research Centre ,The Hong Kong Polytechnic
University, Hong Kong); Ge<strong>of</strong>f Turner (University <strong>of</strong> Nicosia, Cyprus); Mathias Uslar (OFFIS, Oldenburg, Germany);
Herman van Niekerk (Suritec Pty Ltd, Cape Town, South Africa); Asaf Varol (Firat Univeristy, Elazig, Turkey); Jose Maria
Viedma (Polytechnic University <strong>of</strong> Catalonia, Spain); Doug Vogel (City University <strong>of</strong> Hong Kong, Hong Kong); Ismail
Wekke (State College <strong>of</strong> Sorong, West Papua); Roy Williams (University <strong>of</strong> Portsmouth, UK); Tiparatana Wongcharoen
(Bangkok University, Thailand, Thailand); Lugkana Worasinchai (The Institute for Knowledge and Innovation Sou<strong>the</strong>ast
Asia (IKI-SEA) <strong>of</strong> Bangkok University, Bangkok,, Thailand); Les Worrall (University <strong>of</strong> Wolverhampton, UK); An Xiaomi
(Renmin University <strong>of</strong> China, China,); An Xiaomi (Renmin University <strong>of</strong> China, China,); Lin Yan (University Of
Greenwich, UK); Mohammad Hossein Yarmohammadian (Isfahan University <strong>of</strong> Medical Sciences, Iran,); Pitipong
Yodmongkon (College <strong>of</strong> Arts Media and Technology, Chiang Mai University, Thailand,); Philip Zgheib (American
University <strong>of</strong> Beirut, , Lebanon); Suzanne Zyngier (Latrobe University, France)
ix

Biographies <strong>of</strong> <strong>Conference</strong> Chair, Programme Chairs and
Keynote Speakers
<strong>Conference</strong> Chair
Mathana Santiwat is <strong>the</strong> President <strong>of</strong> Bangkok University, Thailand, and holds a Doctor
<strong>of</strong> Philosophy in Higher Education Administration from University <strong>of</strong> Kansas; Lawrence,
Kansas, U.S.A. President Santiwat has her undergraduate and graduate educational
background in Accounting and served as a Certified Public Accountant <strong>of</strong> Thailand. She
started her career at Bangkok University in 1972 as a junior lecturer in Accounting; in
1985 she assumed <strong>the</strong> position <strong>of</strong> Dean <strong>of</strong> <strong>the</strong> School <strong>of</strong> Accounting. She became <strong>the</strong>
Vice President for Academic Affairs in 1988 which position she held for 19 years. Besides
her very active work for Bangkok University, President Santiwat is also involved in several government
related committees, including her position as a National Quality Assessor for Thai Higher Education
Institutions and she is <strong>the</strong> current President <strong>of</strong> <strong>the</strong> Association <strong>of</strong> Private Higher Education Institutions <strong>of</strong>
Thailand. It is to be noted that Mathana Santiwat is a longtime supporter <strong>of</strong> <strong>the</strong> rights <strong>of</strong> Thai women and is a
Member <strong>of</strong> <strong>the</strong> Executive Board <strong>of</strong> <strong>the</strong> Thai Women Watch.
Programme Co Chairs
Dr. Vincent Ribière. After teaching for 10 years in <strong>the</strong> United States, first at American
University (Washington, DC) and later on at <strong>the</strong> New York Institute <strong>of</strong> Technology (NYIT)
in New York and in <strong>the</strong> Kingdom <strong>of</strong> Bahrain, Vincent joined Bangkok University in 2007
as <strong>the</strong> Managing Director and co-founder <strong>of</strong> <strong>the</strong> Institute for Knowledge and Innovation –
Sou<strong>the</strong>ast Asia (IKI-SEA). Vincent received his Doctorate <strong>of</strong> Science in Knowledge
Management from <strong>the</strong> George Washington University, and a Ph.D. in Management
Sciences from <strong>the</strong> Paul Cézanne University, in Aix en Provence, France. Vincent
teaches, conducts research and consults in <strong>the</strong> area <strong>of</strong> knowledge management, innovation management
and information systems He is a KM columnist for CIO World & Business magazine (Thailand) and he is part
<strong>of</strong> <strong>the</strong> editorial board <strong>of</strong> <strong>the</strong> <strong>International</strong> Journal <strong>of</strong> Knowledge Management (IJKM) and <strong>of</strong> VINE: The
Journal <strong>of</strong> Information and Knowledge Management Systems
Asst. Pr<strong>of</strong>. Lugkana Worasinchai, Ph.D is <strong>the</strong> Director <strong>of</strong> <strong>the</strong> Institute <strong>of</strong> Research
Promotion and Innovation Development (IRID), Bangkok University. In addition, Lugkana
Worasinchai is <strong>the</strong> Co-Founder and Co-Managing Director <strong>of</strong> <strong>the</strong> Institute for Knowledge
and Innovation South-East Asia (IKI-SEA), Bangkok University. She teaches
undergraduate and graduate courses in Business Administration, and is actively involved
in research on <strong>the</strong> relationship between knowledge management and business
strategies. Lugkana Worasinchai is a published scholar, her articles appearing in major
academic journals; she gives seminars to firms and public sector organizations, and is regularly invited as a
guest lecturer by reputable international universities
Keynote Speakers
Patrick Lambe is a world renowned knowledge management expert, consultant, author,
facilitator and keynote speaker. His specializations are facilitation skills for building
common ground and knowledge sharing, decision-making in complexity, building
knowledge strategies, knowledge organization and <strong>the</strong> management <strong>of</strong> expertise. He
regularly works with senior leadership teams in <strong>the</strong>se areas, and has deep experience in
<strong>the</strong> government and non pr<strong>of</strong>it sectors. Patrick is founder and Principal Consultant <strong>of</strong> KM
consulting and research firm Straits Knowledge, based in Singapore. He is a prolific
writer, international keynote speaker and teacher in knowledge management, and an
active member <strong>of</strong> several pr<strong>of</strong>essional communities, including iKMS, actKM Forum and <strong>the</strong> Taxonomy
Community <strong>of</strong> Practice. Patrick was educated at <strong>the</strong> University <strong>of</strong> Oxford and holds Master’s degrees from
both Oxford and London
x

William Halal is Pr<strong>of</strong>essor Emeritus <strong>of</strong> Management, Technology, and Innovation at
George Washington University, Washington, D.C. An authority on emerging technology,
strategic planning, knowledge, and institutional change, he has worked with General
Motors, AT&T, SAIC, MCI, Blue Cross/Blue Shield, <strong>International</strong> Data Corporation, <strong>the</strong>
DoD, <strong>the</strong> Asian Development Bank, foreign companies, and various government
agencies. Halal’s work has appeared in journals such as Nature/BioTechnology,
California Management Review, Strategy & Business, Knowledge Management Review,
Academy <strong>of</strong> Management Executive, Journal <strong>of</strong> Corporate Citizenship, Human
Relations, Systems & Cybernetics, and Technological Forecasting & Social Change. Pr<strong>of</strong>. Halal is <strong>the</strong>
founder <strong>of</strong> TechCast, a web-based system that pools <strong>the</strong> knowledge <strong>of</strong> experts to forecast breakthroughs in
all technical fields – “A Virtual Think Tank Tracking <strong>the</strong> Technology Revolution.” He also co-founded <strong>the</strong>
Institute for Knowledge & Innovation as a collaborative effort between <strong>the</strong> GW School <strong>of</strong> Business and <strong>the</strong>
School <strong>of</strong> Engineering.Bill studied engineering, economics, and <strong>the</strong> social sciences at Purdue and Berkeley.
Previously, he was a major in <strong>the</strong> U.S. Air Force, an aerospace engineer on <strong>the</strong> Apollo Program, and a
Silicon Valley business manager. He serves on advisory boards <strong>of</strong> AMD Corporation, <strong>the</strong> World Future
Society, and o<strong>the</strong>r organizations. Macmillan’s Encyclopedia <strong>of</strong> <strong>the</strong> Future ranked him among “The World’s
100 Most Influential Futurists“
Mini Track Chairs
Eduardo Rodriguez has experience in knowledge management, risk management and
analytics in <strong>the</strong> insurance and banking industry. He has been Knowledge Management
Advisor at EDC Export Development Canada in Ottawa, Regional Director <strong>of</strong> PRMIA
(Pr<strong>of</strong>essional Risk Managers <strong>International</strong> Association)in Ottawa and currently, he is
Quantitative Analyst for EDC, Director <strong>of</strong> IQAnalytics, Director <strong>of</strong> Strategic Intelligence
UNAD Colombia. Ma<strong>the</strong>matician, MBA, MSc. Ma<strong>the</strong>matics, certification <strong>of</strong> <strong>the</strong> Advanced
Management Program McGill University. PhD Candidate at Aston Business School in
<strong>the</strong> UK research in <strong>the</strong> field <strong>of</strong> Knowledge Management applied to Enterprise Risk
Management.
Dr Mustafa Sagsan graduated in Library and Information Science at Ankara
University, Turkey in 1997. He gained his Masters Degree in National Information
Policy from <strong>the</strong> same University in 2001. He completed his Ph.D in Management and
Organization Science at Baskent University in 2008. He was <strong>the</strong> co-founder <strong>of</strong> <strong>the</strong>
Department <strong>of</strong> Knowledge Management in Baskent University in 2002. He currently
works as Chairman <strong>of</strong> <strong>the</strong> Near East University Department <strong>of</strong> Knowledge
Management in <strong>the</strong> Turkish Republic <strong>of</strong> Nor<strong>the</strong>rn Cyprus. His research focuses on KM
discipline and applications, MIS, organizational behaviour and e-government
applications. He consults on knowledge management and organizational communication.
Dr Mohamed Rabhi holds a MS from Purdue University and a PhD from <strong>the</strong> University
<strong>of</strong> Minnesota in Soil Science; has interest in environmental implication <strong>of</strong> mineral
fertilizers on soil, water, and air. He worked for <strong>the</strong> University <strong>of</strong> Minnesota as research
associate. Then joined SABIC as chemical fertilizer researcher; held <strong>the</strong> position <strong>of</strong>
fertilizer technology manager. He championed <strong>the</strong> knowledge management project with
SABIC R&D organization, and implemented a knowledge management system that was
partially described in two articles presented and published in ICICKM proceeding in 2009
and 2010. He is currently <strong>the</strong> knowledge management leader in SABIC Technology and
Innovation organization.
xi

Biographies <strong>of</strong> contributing authors (in alphabetical
Hayati Abdul Jalal Master’s degree in Human Resource Development from University Putra Malaysia.
Currently PhD candidate at School <strong>of</strong> Management, College <strong>of</strong> Business, Massey University New Zealand.
PhD research aims at bringing <strong>the</strong> role <strong>of</strong> human agency in <strong>the</strong> knowledge management equation, as well as
identification <strong>of</strong> an acceptable and desirable organisational culture values for successful knowledge sharing
within knowledge based organisations. Researches HRM, knowledge management and cross-cultural
management.
Maria-Madela Abrudan. born in Oradea, Romania, 05.03.1973. Senior lecturer phd., Chief <strong>of</strong> Management-
Marketing Department, University <strong>of</strong> Oradea, Faculty <strong>of</strong> Economics. Area <strong>of</strong> research: Human Resources
Management and Project Management. Partner project manager <strong>of</strong> project titled: Establishment <strong>of</strong> R&D
programmes in <strong>the</strong> field <strong>of</strong> new public management between economic faculties <strong>of</strong> higher education in
Hajdu-Bihar and Bihor counties
Peyman Akhavan, faculty <strong>of</strong> industrial engineering department, Iran University <strong>of</strong> Science and Technology,
received his M.Sc. and Ph.D. degrees in industrial engineering from Iran University <strong>of</strong> Science and
Technology, Tehran, Iran. His research interests are in knowledge management, information technology, and
strategic planning. He has published 4 books and has more than 45 research papers in different conferences
and journals.
Ruth Alas is <strong>the</strong> Vice-Rector for Research and Head <strong>of</strong> Management Department and in Estonian Business
School. She has written twenty six management textbooks and more than 100 articles. Ruth Alas is
teaching change management. Her research is focusing on change management, employee attitudes,
learning abilities, organisational culture, leadership, ethics and corporate social responsibility.
Rivadávia Correa Drummond de Alvarenga Neto. Pr<strong>of</strong>essor at Fundação Dom Cabral, Brazil. He holds a
Ph.D. in Information Science (UFMG, Brazil) and a PostDoctoral Fellowship (University <strong>of</strong> Toronto, Canada).
His books and papers have been published in Brazil, Spain, France, England, Chile, South Africa, Canada,
United States, Malta, Ireland, China and Portugal, among o<strong>the</strong>rs.
Xiaomi An, is pr<strong>of</strong>essor <strong>of</strong> <strong>the</strong> Key Laboratory <strong>of</strong> Data Engineering and Knowledge Engineering (Ministry <strong>of</strong>
Education) and <strong>the</strong> School <strong>of</strong> Information Resources Management at Renmin University <strong>of</strong> China, project
leader <strong>of</strong> knowledge management, committee member <strong>of</strong> ISO/TC46/SC11 and SAC/TC 86 /SC 5. She holds
a PhD degree from University <strong>of</strong> Liverpool, UK.
Marko Anzelak holds a Master's degree in Computer Science from <strong>the</strong> Alpen-Adria-University <strong>of</strong> Klagenfurt,
where he also worked for several years as a project leader in <strong>the</strong> field <strong>of</strong> application engineering. Since
2006 Marko Anzelak is a researcher at <strong>the</strong> eBusiness-department (biztec) in <strong>the</strong> field <strong>of</strong> databases,
information systems, CMS, knowledge engineering/management and e-learning.
Gabriel Prananingrum Aryanindita Lecturer and researcher at School <strong>of</strong> Economics, Atma Jaya Catholics
University <strong>of</strong> Indonesia. She earned Magister <strong>of</strong> Accounting Science from <strong>the</strong> Graduate School <strong>of</strong>
Economics, Gadjah Mada University. Her research interest includes valuation <strong>of</strong> intellectual capital,
international accounting reporting, and economics consequences <strong>of</strong> new standards. She published articles in
those areas.
Rita Babiliūtė PhD student in management and administration at <strong>the</strong> Institute <strong>of</strong> Europe at Kaunas
University <strong>of</strong> Technology (Lithuania). She was a Fellow student at University <strong>of</strong> Geneva and University <strong>of</strong>
Lausanne as well as an intern at <strong>the</strong> <strong>International</strong> Labour Organization at <strong>the</strong> United Nations. The areas <strong>of</strong>
research interest cover trust management, inter-organizational relations.
Leonard Barnett is an expert in intercultural management and cultural knowledge, having been responsible
for social and academic developments in culturally and politically complex environments in Asia Pacific
region, e.g. Aboriginal development programs and management degree courses, teaching and research in
cultural knowledge, intercultural management and communication in SEA. Recent publications include
intercultural competence in <strong>the</strong> Thai tourism industry and <strong>the</strong> postmodern traveler.
Bob Barrett is a pr<strong>of</strong>essor in <strong>the</strong> School <strong>of</strong> Business at <strong>the</strong> American Public University. Dr. Barrett's current
research interests are: Online Learning, Intellectual Capital, Disability in <strong>the</strong> Workplace, and Knowledge
Management. Dr. Barrett currently teaches and writes on <strong>the</strong> subject <strong>of</strong> global business and e-learning in
today’s changing economic times.
xii

Evgeny Blagov has obtained a specialist degree in international management at <strong>the</strong> Graduate School <strong>of</strong>
Management <strong>of</strong> Saint Petersburg State University in 2007, a Master <strong>of</strong> Research in Management Sciences
degree at ESADE Business School in 2010 and finished a PhD program at <strong>the</strong> Graduate School <strong>of</strong>
Management <strong>of</strong> Saint Petersburg State University in 2010.
Prantik Bordoloi is a Doctoral Candidate at <strong>the</strong> School <strong>of</strong> Management, Asian Institute <strong>of</strong> Technology,
Thailand. He has previously received an MBA in Management <strong>of</strong> Technology from Asian Institute <strong>of</strong>
Technology, Thailand. His current research interests include knowledge application and translation, modeling
<strong>of</strong> barriers in implementing KM practices, and knowledge management issues in hospitality and tourism.
Elena Botezat is a Pr<strong>of</strong>essor at <strong>the</strong> Faculty <strong>of</strong> Economic Science, University <strong>of</strong> Oradea, Romania. Her
activities include research on social entrepreneurship education, counseling, tutoring, usage <strong>of</strong> virtual
learning environments, coordinating projects financed by <strong>the</strong> European Commission aiming to provide
practical instruments to beneficiaries that can be used for decision making in SMEs.
Constantin Bratianu is pr<strong>of</strong>essor <strong>of</strong> Strategic Management and Knowledge Management at <strong>the</strong> Academy <strong>of</strong>
Economic Studies, Bucharest, Romania. He is <strong>the</strong> Head <strong>of</strong> UNESCO Department for Business
Administration, and Director <strong>of</strong> <strong>the</strong> Research Center for Intellectual Capital. His main academic interests are:
knowledge dynamics, knowledge management, intellectual capital, strategic management and university
management.
Delio Ignacio Castaneda .PhD (Cum Laude) in Organizational Behavior: Universidad Autónoma de Madrid,
Spain. Master (with Distinction) in Education: University <strong>of</strong> Manchester, England. Psychologist: Universidad
Católica de Colombia. At <strong>the</strong> moment Delio is an Associate Pr<strong>of</strong>essor at Pontificia Universidad Javeriana
and invited pr<strong>of</strong>essor in <strong>the</strong> fields <strong>of</strong> Knowledge Management and Organizational Behavior.
Sonia Castro Chemical Engineer, MSc. in Technology Management. Currently retired from ECOPETROL,
where culminated her 21 years working career as Manager <strong>of</strong> Knowledge Management Unit and Leader <strong>of</strong>
<strong>the</strong> Corporate Program <strong>of</strong> Knowledge and Technology Management (2008). She was also strategic planning
pr<strong>of</strong>essional and intellectual property leader in <strong>the</strong> Research Center <strong>of</strong> ECOPETROL.
Nopasit Chakpitak, is a PhD Supervisor and <strong>the</strong> Dean at College Arts, Media and Technology <strong>of</strong> Chiang
Mai University, Thailand. He received his PhD in Knowledge Engineering from Strathclyde University, U.K.,
and has supervised many National Knowledge Management Projects in Thailand.
Tirapot Chandarasupsang, is a PhD at College Arts, Media and Technology <strong>of</strong> Chiang Mai University,
Thailand.
Rajendra Chetty is Pr<strong>of</strong>essor and Head <strong>of</strong> <strong>the</strong> Department <strong>of</strong> Research at CPUT. He holds a PhD (UNISA),
MA (UKZN) and MBA (Executive) from <strong>the</strong> University <strong>of</strong> Cape Town Graduate School <strong>of</strong> Business. His
research interests are Quality in Teacher Education, Commonwealth writings and social issues in Education.
Thira<strong>the</strong>p Chonmaitree. Lecturer at College <strong>of</strong> Arts, Media and Technology in Chiang Mai University in <strong>the</strong>
S<strong>of</strong>tware Engineering Department. Graduated with master degree in Computer Science concentrated in
Computer Graphics from George Washington University. MBA in Management from <strong>the</strong> USA.. Research
interests are in Education and Multimedia s<strong>of</strong>tware, Computer Graphic in application side, Graphic Design
and Art and Technology.
Angelo Corallo Pr<strong>of</strong>essor in <strong>the</strong> Department <strong>of</strong> Innovation Engineering, University <strong>of</strong> Salento. Main research
interests are related to technologies, methodologies and organizational models supporting <strong>the</strong> New Product
Development process in complex industries (with specific focus on aerospace industry); knowledge
management and collaborative working environments in project and process-based organizations.
Daranee Delorme is a PhD candidate <strong>of</strong> Dhurakij Pundit University, Bangkok, Thailand. The research is
presenting a partial fulfillment <strong>of</strong> <strong>the</strong> degree <strong>of</strong> Doctor <strong>of</strong> Philosophy in Business Informatics <strong>of</strong> <strong>International</strong>
College. This research has been thoroughly supervised by qualified advisors. Research procedure has
been carefully followed to derive to interesting findings as she presents.
Paola Demartini is Associate Pr<strong>of</strong>essor at <strong>the</strong> University <strong>of</strong> Rome 3. She is executive Editor <strong>of</strong> <strong>the</strong> review
Small Business/Piccola Impresa and vice president for Italy <strong>of</strong> <strong>the</strong> European Council for Small Business
(ECSB). Her research interest includes small business management, corporate financial communication and
intellectual –based management.
xiii

Ridha Derrouiche is currently Assistant-Pr<strong>of</strong>essor <strong>of</strong> Supply Chain Management and Operations
Management at Saint-Etienne School <strong>of</strong> Management (SESOM). He is a member <strong>of</strong> LSTI laboratory
(France). He got a PhD in Industrial Engineering in 2007 at <strong>the</strong> University Lyon II. His research interests are
mainly related to Supply Chain, Performance & Value Creation through Collaborative.
Ikechukwu Diugwu is a Lecturer in <strong>the</strong> Department <strong>of</strong> Project Management Technology, Federal University
<strong>of</strong> Technology, Minna, Nigeria. His research interest is in <strong>the</strong> area <strong>of</strong> performance improvement strategy in
organisations, especially small and medium sized enterprises (SMEs). He holds a PhD (UK), MSc (UK), and
BEng (Hons) (ESUT, Nigeria).
Maria Eckenh<strong>of</strong>er is an Austrian citizen, graduated in Media Management from University <strong>of</strong> Applied
Sciences in St.Pölten (Austria) in 2008 and works at <strong>the</strong> moment as a PhD Student on Tomas Bata
University in Zlín (Czech Republic) on <strong>the</strong> Faculty <strong>of</strong> Management and Economics in <strong>the</strong> fields network
management, organizational networks, corporate culture and cluster.
Üllas Ehrlich graduated Tartu University in 1989, and defended his PhD in human geography at Tartu
University in 2007. Currently working as pr<strong>of</strong>essor <strong>of</strong> environmental economics, Department <strong>of</strong> Public
Economy at Tallinn University <strong>of</strong> Technology, Head <strong>of</strong> Chair <strong>of</strong> Environmental Economics. Field <strong>of</strong> Research:
Environmental economics, ecological economics, organizational development
Fabrizio Errico, Research Fellow, Centro Cultura Innovativa d’Impresa - University <strong>of</strong> Salento (Italy). Junior
accountant and he had an advanced post degree course in “e-business management”, ISUFI (University <strong>of</strong>
Lecce); Research is characterized by cross-disciplinary focus, with major interest on Methodologies,
technologies and tools supporting Internetworked Enterprise; <strong>the</strong> New Product Development process in
complex industries; Cost models and change management methodologies.
Irene Fan is a PhD candidate in <strong>the</strong> ISE Department <strong>of</strong> <strong>the</strong> Hong Kong Polytechnic University. Her research
interest includes innovation, knowledge, and intellectual capital management. She is experienced in R&D
management in <strong>the</strong> ICT industry. She received her bachelor and master degree in Industrial Engineering
(Operations Research/Management Science) from <strong>the</strong> University <strong>of</strong> Toronto.
Ronny Gey is a PhD student at <strong>the</strong> University <strong>of</strong> Technology, Chemnitz, Germany, doing research on <strong>the</strong>
impact <strong>of</strong> standardisation and innovation in organisations. He holds a MA in Business Information
Management from <strong>the</strong> same university. Currently he is employed as s<strong>of</strong>tware and quality engineer at Phacon
GmbH, Leipzig, Germany.
Mahmood Ghazavi has 12 years <strong>of</strong> pr<strong>of</strong>essional work experience in industry and academics. He is currently
doing PhD in knowledge management. His PhD research is about exploring <strong>the</strong> utility <strong>of</strong> knowledge
networking among pr<strong>of</strong>essionals. The title <strong>of</strong> his <strong>the</strong>sis is Knowledge Sharing in Ego-centered Knowledge
Networks <strong>of</strong> Pr<strong>of</strong>essionals: Role <strong>of</strong> Transactive Memory Systems, Trust, and Reciprocity
Paul Goldsmith gained his PhD in Hyper-spectral Satellite Remote Sensing, from London, U.K. He was
also a systems engineer for a U.K. defense firm, and working on virtual knowledge-based projects and
counter surveillance in U.K. He is now supervising PhD students at <strong>the</strong> College <strong>of</strong> Arts, Media and
Technology, Chiang Mai University, Thailand.
Ken Grant is a pr<strong>of</strong>essor and <strong>the</strong> Faculty Teaching Chair in <strong>the</strong> Ted Rogers School <strong>of</strong> Management at
Ryerson University, Toronto, Canada. Prior to joining <strong>the</strong> School he held partner-level positions in
management consulting with AT Kearney and KPMG. His teaching and research focus is on Strategy and
Innovation, eBusiness and Knowledge Management.
Michel Grundstein Consulting Engineer/Associate Researcher, LAMSADE (laboratory focused on
analyzing/modeling decision aid systems), Paris Dauphine University, France. Co-funder SIGECAD Group,
domain topics are information systems, knowledge management and decision aid. Researches knowledge
management. Was Corporate Advisor, responsible for innovative methods/applications and information
technology, French nuclear power plant company.
Oscar Guerra Chemical Engineer specialist in Strategic Thinking and Foresight and also in Environmental
Evaluation <strong>of</strong> Projects. He works at <strong>the</strong> Knowledge and Technology Management Unit <strong>of</strong> ECOPETROL S.A.
Nowadays he is <strong>the</strong> Leader <strong>of</strong> Corporate Program <strong>of</strong> Knowledge and Technology Management.
Shaheed Hartley is Director <strong>of</strong> <strong>the</strong> Science Learning Centre for Africa (SLCA) at <strong>the</strong> University <strong>of</strong> <strong>the</strong>
Western Cape in South Africa and Associate Pr<strong>of</strong>essor in Science Education. His centre supports practicing
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science and ma<strong>the</strong>matics teachers through a series <strong>of</strong> developmental interventions and drives a number <strong>of</strong>
learner projects to improve <strong>the</strong> participation and interest <strong>of</strong> learners in science.
Fathiah Hashim Graduated in Bacherlor <strong>of</strong> Accounting at Multimedia University, Malaysia in 2000. She
gained Master Degree in Accounting from Universiti Teknologi Mara, Malaysia in 2011. Currently, she works
as an Assistant Lecturer at Center for Diploma Programme (CDP), Multimedia University, Malaysia. Her
research focuses on KM disipline and Accountants’ Ethics.
Hezlin Harris received her first and second degrees in Finance, Economics and Applied Statistics from
Syracuse University, NY and Multimedia University, Malaysia respectively. She <strong>the</strong>n became a lecturer in
Statistics at <strong>the</strong> Faculty <strong>of</strong> Management, Multimedia University. Currently, she teaches courses related to
Statistics. Her research interests include e-business, innovation management and intellectual property.
Ching Choo Huang Associate pr<strong>of</strong>essor Faculty <strong>of</strong> Accountancy, Universiti Teknologi MARA. MSc.
Accounting/Management Science (distinction), University <strong>of</strong> Southampton, UK. Intellectual Capital Reporting
PhD, University <strong>of</strong> <strong>the</strong> West <strong>of</strong> England, Bristol, UK. Research incorporates reporting, financial reporting
standards, voluntary disclosures and intellectual capital.. Published papers in international journals; paper
“An Evidence-based Taxonomy <strong>of</strong> Intellectual Capital” published in Journal <strong>of</strong> Intellectual Capital was
awarded “Highly Commended Paper” by Emerald (2008).
Eli Hustad is an Associate Pr<strong>of</strong>essor at <strong>the</strong> University <strong>of</strong> Agder in Kristiansand, Norway. She holds a Ph.D.
from <strong>the</strong> University <strong>of</strong> Oslo. Her research and teaching focus on enterprise-wide information systems,
knowledge networking, KM 2.0 and utilization <strong>of</strong> social media in business
Bogdan-Vasile Ileanu is a PhD Candidate in applied statistics and econometric in economic field. He is
working since 2006 as assistant teacher at Academy <strong>of</strong> Economic Studies from Bucharest, Romania. His
main interests’ areas are lying around: Quantitative techniques applied in economics and religion, intellectual
capital measure, labor force migration, etc.
Nurul Indarti Lecturer Department <strong>of</strong> Management, Faculty <strong>of</strong> Economics and Business, Universitas Gadjah
Mada, Indonesia. PhD degree in Knowledge and Innovation from University <strong>of</strong> Groningen, The Ne<strong>the</strong>rlands.
Master degrees from University <strong>of</strong> Agder, Norway and Norwegian School <strong>of</strong> Economics and Business,
Norway. Her research interests are knowledge management, innovation, entrepreneurship, and small
business development.
Salman Iqbal Lecturer in Pakistan, doing PhD in HRM, Massey University, Palmerston North, New Zealand.
BE degree, Pakistan and MBA. from University <strong>of</strong> Wollongong, Australia. Research includes HRM,
knowledge management and individual capability. Attended couple <strong>of</strong> international conferences, presented
work to pr<strong>of</strong>essional audience in New Zealand. Writing Journal articles and book chapters with supervisors..
Thunyaporn Jaimung, <strong>the</strong> 3 rd year PhD student in Knowledge Management. She is a research assistant at
College <strong>of</strong> Arts, Media and Technology, Chiang Mai University, Thailand.
Brigita Janiūnaitė Pr<strong>of</strong>essor/director, Institute <strong>of</strong> Educational Studies, Department Head, Educational
Systems, Faculty <strong>of</strong> Social Sciences, Kaunas University <strong>of</strong> Technology. Research focuses on change
management and social innovation implementation. Active in international/national research/study projects
and evaluation <strong>of</strong> study programmes. Published monograph on ‘Educational Innovation Implementation’
(2004, Lithuanian) and research study ‘Citizen’s innovative culture’ (2007, Lithuanian). Elected
Fu Jing is a PhD student in Knowledge Management at <strong>the</strong> College <strong>of</strong> Arts, Media and Technology, Chiang
Mai University, Thailand. She is a lecturer and researcher at <strong>the</strong> <strong>International</strong> e-Tourism Research Center in
Chengdu University, China and came to Thailand to study a PhD in Knowledge Management in 2009.
Iman Jokar Tang Karami. BA from Persian Gulf University, Iran, MBA from institute for management and
Planning Studies, Iran. Currently Ph.D. student in Finance at Islamic Azad University, Science and research
branch, Tehran, Iran. 4 years experience in Finance and Investment Management. Teaching and research
interests are in Finance and Investment, Accounting, E-Commerce, Intellectual Capital and Knowledge
Economy.
Palmira Juceviciene PhD., Habil. Dr., full pr<strong>of</strong>essor, Director <strong>of</strong> <strong>the</strong> Institute <strong>of</strong> Educational Studies at
Kaunas University <strong>of</strong> Technology. Research interests – individual and organizational learning, knowledge
creation and management, learning organizations and regions, human resource development, higher
education. Dr. Juceviciene has published more than 200 scholarly articles and 10 books.
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Roberta Jucevičius Habilitated doctor (Social Sciences, Management), Full pr<strong>of</strong>essor, Head <strong>of</strong> <strong>the</strong> Institute
<strong>of</strong> Business Strategy, Faculty <strong>of</strong> Social Sciences, Kaunas University <strong>of</strong> Technology, Lithuania. Research
interests: knowledge management, strategic management, entrepreneurship
Annukka Jyrämä works as a senior research fellowat Aalto Unversity School <strong>of</strong> Economics, Finland, and is
a Research Fellow to <strong>the</strong> Arts, Culture & Management in Europe Chair <strong>of</strong> BEM Bordeaux Management
School. Her current research interests include knowledge creation processes and <strong>the</strong> role <strong>of</strong> mediators from
institutional and network <strong>the</strong>ory perspectives. She has conducted studies in such contexts as cultural, city
and business and published in refereed journals for example, Industrial Marketing Management and
Management Learning.
Krith Karnjanakitti is a PhD student in Knowledge Management <strong>of</strong> College <strong>of</strong> Art Media and Technology,
Chiang Mai University. His research topic is Raising <strong>the</strong> Research Pr<strong>of</strong>ile <strong>of</strong> <strong>the</strong> Faculty <strong>of</strong> Humanities, Chiang Mai
University: Building Community Links and Empowering Knowledge Workers.
Harri Ketamo, PhD, is a Director <strong>of</strong> Education at Satakunta University <strong>of</strong> Applied Sciences. His research
focuses on conceptual learning, complex adaptive systems, user modeling and game AI's. Before coming to
Satakunta University <strong>of</strong> Applied Sciences, Harri was co-founder and director <strong>of</strong> GameMiner Ltd., a game
development company focused on game AI’s and Data Mining.
Nguyen Doan Khoi is <strong>the</strong> author <strong>of</strong> book entitled “Quality management in <strong>the</strong> Export Supply Chain in
Vietnam: The case <strong>of</strong> Pangasius small-scale farming system”. He is a creative, competent researcher
involved in various research/development projects/programs. His strength is in terms <strong>of</strong> self-decision making
and active and independent work. He has experiences <strong>of</strong> collaborations, in-country and international.
Eric Kong BA (Hons), PG Dip, MSc, PhD Monash. Senior Lecturer at <strong>the</strong> School <strong>of</strong> Management &
Marketing, University <strong>of</strong> Sou<strong>the</strong>rn Queensland, Australia. He taught at Monash University and Charles Sturt
University. Eric completed his Ph.D. in Strategic Management at Monash University, Australia. His current
research interests include intellectual capital, knowledge management, non-pr<strong>of</strong>it management, and strategic
management.
Kęstutis Kriščiūnas is <strong>the</strong> Director <strong>of</strong> <strong>the</strong> Institute <strong>of</strong> Europe at Kaunas University <strong>of</strong> Technology as well as
its former Rector. The research interests include knowledge based economy, management <strong>of</strong> intellectual
capital, internationalisation <strong>of</strong> higher education, management <strong>of</strong> higher education; engineering education;
European integration, European dimensions in quality <strong>of</strong> higher education and research.
Marissara Kummool, <strong>the</strong> 2 nd year PhD student in Knowledge Management. She is assistant researcher at
College <strong>of</strong> Arts, Media and Technology, Chiang Mai University, Thailand.
Pornpen Lertthasanawong is a PhD student (2009) in Knowledge Management at College <strong>of</strong> Arts, Media
and Technology <strong>of</strong> Chiang Mai University, Thailand. She is <strong>the</strong> Managing Director <strong>of</strong> Neo-Net S<strong>of</strong>t Co.,LTD.
which is <strong>the</strong> first s<strong>of</strong>tware house in Samut Sakhon.
Chaiyatorn Limapornvanich is a PhD student in School <strong>of</strong> Management at <strong>the</strong> University <strong>of</strong> Surrey. With
six-year experience <strong>of</strong> working collaboratively with indigenous innovative companies in Thailand, his
research focuses on <strong>the</strong> implementation <strong>of</strong> knowledge management for enhancing innovative businesses in
Thailand and receives support from National Innovation Agency (NIA), Thailand.
Christian Lindemann is a PhD candidate at chair <strong>of</strong> Computer Application and Integration in Construction
and Planning at University <strong>of</strong> Paderborn. He worked in <strong>the</strong> Projects Lage and Mobis Pro, dealing with
standardization and knowledge management for fire fighters. He studied mechanical engineering and
business at University <strong>of</strong> Paderborn and Queensland University <strong>of</strong> Technology Brisbane.
Ya-Hui Ling is an assistant pr<strong>of</strong>essor in <strong>the</strong> Department <strong>of</strong> Business Administration, I-Shou University. Her
research interests include intellectual capital and knowledge management. She has published journal
articles in <strong>the</strong> <strong>International</strong> Journal <strong>of</strong> Human Resource Management, Personnel Review, Sun Yat-Sen
Management Review, Asia Pacific Management Review, and Journal <strong>of</strong> Human Resource Management.
Martha López is a Systems Engineer specialist in Knowledge Management (KM) and Intellectual Capital.
She works at <strong>the</strong> Knowledge and Technology Management Unit <strong>of</strong> ECOPETROL S.A., giving supporting to
<strong>the</strong> implementation <strong>of</strong> KM process in <strong>the</strong> Business <strong>of</strong> Exploration and Production within <strong>the</strong> company.
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George Majdalany is a PhD candidate in Accounting and Finance at <strong>the</strong> University <strong>of</strong> Wollongong. He holds
his Certified Management Accountant (CMA) certification from <strong>the</strong> USA. His career includes working in
Lebanon, Jordan, and United Arab Emirates in managerial positions in Finance and Accounting since 2001.
He is also a senior CMA instructor since 2008.
Maksim Maksimovic is a graduate mechanical engineer from Coventry University, UK and <strong>the</strong> University <strong>of</strong>
Applied Sciences in Constance, Germany. He has years <strong>of</strong> experience in <strong>the</strong> German automotive supplier
industry. He joined <strong>the</strong> EU funded, Lean Product and Process Development (LeanPPD) project in 2009 as a
researcher at Cranfield University, UK, focusing on <strong>the</strong> management <strong>of</strong> product development knowledge in a
lean environment.
Maurizio Massaro, Ph. D., aggregate pr<strong>of</strong>essor at Udine University since 2008, having worked as teacher at
Udine University since 2001. Visiting scholar at <strong>the</strong> Florida Gulf Coast University, Florida, USA, in 2010.
Academic interests primarily in field <strong>of</strong> measurement <strong>of</strong> business performance, intangible assets and
entrepreneurship. Wrote several publications on <strong>the</strong>se topics, and has some more forthcoming.
Sara McCracken has an Honours degree in Economics and Computer Science toge<strong>the</strong>r with an MBA from
Aston Business School. She is currently reading for a PhD in Knowledge Management in Healthcare and
specifically Knowledge Management Systems. She has worked as a consultant in Health, Technology in
Healthcare, and Project Management..
Helen Mitchell is a Senior Lecturer in <strong>the</strong> Department <strong>of</strong> Management and Marketing at Unitec Institute <strong>of</strong>
Technology, Auckland, New Zealand. Her lecturing areas focus on management and innovation and her
doctoral study was in managing intellectual capital. Helen is works closely with local business associations
arranging for students to undertake special projects and research.
Cristina Morariu is a lecturer <strong>of</strong> Academy <strong>of</strong> Economic Studies (ASE) - Bucharest and is currently finalising
her PhD at <strong>the</strong> same institution. Her current research interest relate to measurement and disclosure <strong>of</strong>
intellectual capital. Her writing on <strong>the</strong> topic <strong>of</strong> intellectual capital has been published in academic journals
and presented at international conferences.
Andrea Moro holds a degree in Economics (University <strong>of</strong> Trieste - Italy) an MBA at (Open University
Business School - UK) and a PhD (Lancaster University Management School - UK). His research interests
are about <strong>the</strong> impact <strong>of</strong> information asymmetry on SMEs’ relationships with lenders, suppliers and customers
and on SMEs’ capital structure.
Samira Nadirkhanlou was born on December 18, 1984, in Zanjan, Iran. She took her BA in Management, in
2007 and <strong>the</strong>n was graduated in entrepreneurship management from university <strong>of</strong> Tehran. She is interested
in knowledge commercialization and academic entrepreneurship
Vyda Mozuriuniene, Comfort Heat Ltd. Managing Director, Ph.D. in Management. Research interests –
knowledge creation and management, process management, strategic management. Consultant in <strong>the</strong> areas
<strong>of</strong> organization’s knowledge management, process management, franchise.
Mauro Paoloni is Full Pr<strong>of</strong>essor at <strong>the</strong> University <strong>of</strong> Rome 3. He is member <strong>of</strong> <strong>the</strong> Board <strong>of</strong> <strong>the</strong> Italian
Academy <strong>of</strong> Management (AIDEA). His research interest includes general management, corporate
accounting and intellectual-based management.
Bertrand Pauget is pr<strong>of</strong>essor <strong>of</strong> management at <strong>the</strong> European business school Paris.
Onnarin Phuatngam, a PhD student (2009) in Knowledge Management at College <strong>of</strong> Arts, Media and
Technology <strong>of</strong> Chiang Mai University, Thailand.
Siwarit Pongsakornrungsilp is Assistant Pr<strong>of</strong>essor <strong>of</strong> Marketing at Walailak University, Thailand. He
receives his PhD from University <strong>of</strong> Exeter, UK. He is a founder and head <strong>of</strong> <strong>the</strong> Consumption and
Sustainable Economy Research Group. His research interests focus on Value Creation, Working
Consumers, Social Network and Theory <strong>of</strong> Capital.
Preawpan Pringprom holds an M.A. in Teaching English as a Second Language from Fairleigh Dickinson
University, New Jersey and a Ph.D. in Curriculum and Instruction from Kasetsart University, Bangkok. She
is an Assistant Pr<strong>of</strong>essor at <strong>the</strong> Language Institute, Bangkok University. She teaches English for Specific
Purposes (ESP), and o<strong>the</strong>r general English courses. Her research interests are strategy training for L2learners
and <strong>the</strong> application <strong>of</strong> ICT to English teaching and learning.
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Mohamed Rabhi. MS from Purdue University and PhD from University <strong>of</strong> Minnesota in Soil Science;
interested in environmental implication <strong>of</strong> mineral fertilizers on soil, water, and air. Worked as research
associate, University <strong>of</strong> Minnesota. Joined SABIC as Fertilizer Technology Manager researching chemical
fertilizers. Championed knowledge management project with SABIC R&D organization, and implemented
knowledge management system partially described in two articles presented and published in ICICKM
proceedings (2009&2010).
Azlina Rahim is currently in her final year <strong>of</strong> full time PhD programme at Universiti Teknologi MARA,
Selangor, Malaysia. Although her PhD research focuses on intellectual capital efficiency, her research
concern focuses on intellectual capital, innovation capital and corporate reporting in Malaysia. She has been
a teaching staff at <strong>the</strong> university since 1998 and specializes in financial accounting.
Yolanda Ramírez is an Assistant Pr<strong>of</strong>essor at <strong>the</strong> Faculty <strong>of</strong> Economics and Business Administration,
University <strong>of</strong> Castilla-La Mancha, Spain. She completed her doctorate in Intellectual Capital Management.
Her current research interests include intellectual capital, knowledge management and quality management.
Her research work is focused on methods and techniques for building models <strong>of</strong> measuring and
management intellectual capital in <strong>the</strong> universities.
Victor Reyes-Alcázar . Knowledge Management Officer,Andalusian Agency for Healthcare Quality, Sevilla,
Spain. MD, PhD, Master in Emergency and Catastrophe Medicine. Degree in Hospital and Healthcare
Management. In <strong>the</strong> research field, his main topics are Healthcare Quality, Knowledge Management,
Balanced Scorecard, Social Capital, Accreditation Programmes and health outcomes.
Eduardo Rodriguez. Over twenty years management experience in insurance and banking industry working
on top management and analytics positions. Currently Principal <strong>of</strong> IQAnalytics in Canada, Quantitative
Analyst at EDC Export Development Canada in Ottawa BSc. Honors Ma<strong>the</strong>matics, MBA, MSc Degree in
Ma<strong>the</strong>matics, certification from Advanced Management Program at McGill University and PhD at Aston
Business School, UK writing <strong>the</strong>sis in field <strong>of</strong> Knowledge Management applied to Enterprise Risk
Management.
Jesús Rosales Carreón studied Chemical Engineering at <strong>the</strong> National University <strong>of</strong> Mexico. He has worked
for Degremont and for Owens Corning. He received his Master <strong>of</strong> Science in Energy and Environmental
Sciences. Jesús is conducting a PhD about Knowledge and Sustainability at <strong>the</strong> University <strong>of</strong> Groningen
under <strong>the</strong> supervision <strong>of</strong> Pr<strong>of</strong>. René Jorna.
Per Øystein Saksvik is a pr<strong>of</strong>essor at The Department <strong>of</strong> Psychology, Norwegian University <strong>of</strong> Science and
Technology where he also reached his Ph.D. in 1991 in Occupational Health Psychology. He has ten years
<strong>of</strong> experience as contract researcher. He does research in occupational health and safety, organizational
interventions, sickness absenteeism and presenteeism, and organizational change.
Mustafa Sagsan graduated in Library and Information Science at Ankara University, Turkey (1997) and
Masters Degree in National Information Policy (2001). Completed PhD in Management and Organization
Science at Baskent University ( 2008). Co-founder <strong>of</strong> Department <strong>of</strong> Knowledge Management in Baskent
University. Works as Head <strong>of</strong> Department <strong>of</strong> Knowledge Management, Near East University, Turkish
Republic <strong>of</strong> Nor<strong>the</strong>rn Cyprus.
Kalsom Salleh is a Senior lecturer in Faculty <strong>of</strong> Accountancy, Universiti Teknologi MARA, Shah Alam,
Malaysia. Registered Chartered Accountant and also an appointed council member with Malaysian Institute
<strong>of</strong> Accountants. Research interests are Knowledge Management, Intellectual Capital and Electronic
Government. Presented and published many research papers at international conferences and in highindexed
journals & international books.
Christina Schäfer is currently writing her PhD <strong>the</strong>sis in <strong>the</strong> working-group <strong>of</strong> computer application and
integration in construction and planning from university <strong>of</strong> Paderborn, Germany. In this circumstance she is
involved in <strong>the</strong> projects AirShield and OrGaMIR, which consider information-systems for firefighters. Since
2009 she has a Master degree on computer-science with focus on human-computer-interaction.
Alexander Serenko is an Associate Pr<strong>of</strong>essor <strong>of</strong> MIS in <strong>the</strong> Faculty <strong>of</strong> Business Administration at Lakehead
University, Canada. He holds a Ph.D. in Management Information Systems from McMaster University.
Alexander has published over 50 journal articles and received best paper awards at various conferences. He
has been recognized as one <strong>of</strong> <strong>the</strong> university’s leading researchers.
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Joyce Nesamani Simson is a PhD candidate at Universiti Teknologi Petronas. She has an MBA from
Charles Sturt University, Australia. Her research interests are in knowledge management with emphasis on
leadership behaviour. She is a Chartered Marketer and a member <strong>of</strong> <strong>the</strong> Chartered Institute <strong>of</strong> Purchasing
and Supply.
Ng Hee Song is a PhD student from Universiti Sains Malaysia. He holds an MBA from <strong>the</strong> same university,
and Bachelor <strong>of</strong> Mechanical Engineering from Universiti Teknologi Malaysia. He worked for industries for 20
years and presently, he is a lecturer <strong>of</strong> a private college. His research interest is leadership and work values.
Sonia Sousa Currently researching on <strong>the</strong> influence <strong>of</strong> trust in online communities and holds a PhD in
Education from Sheffield Hallam University, UK and an honors degree in Communication Engineering from
Universidade Fernando Pessoa, Portugal. R&D work record includes <strong>the</strong> United States <strong>of</strong> America (Michigan
State University's MIND Lab), Portugal (Universidade Fernando Pessoa Multimedia Research Center) Cape
Verde and Mozambique (Jean Piaget University
Somsak Sriborisutsakul is an assistant pr<strong>of</strong>essor in <strong>the</strong> Department <strong>of</strong> Library Science at Chulalongkorn
University, Thailand. His research and teaching interests are in knowledge management for library and
information pr<strong>of</strong>essionals, evaluation <strong>of</strong> information services, and organization <strong>of</strong> information resources. Dr.
Somsak earned his PhD in information studies from <strong>the</strong> University <strong>of</strong> Sheffield.
Vijayeta Srivastava is currently working as a Business Consultant at TechnologyOne in Melbourne,
Australia. She has attained her degree <strong>of</strong> Master’s in Business Information Management and Systems from
La Trobe University in Melbourne, Australia. She is an active member <strong>of</strong> Australian Computer Society and
Enterprise Information Management - Special Interest Group.
Subhacini Subramaniam received a Bachelor’s degree in business administration and a Master <strong>of</strong> business
administration from <strong>the</strong> Nor<strong>the</strong>rn University <strong>of</strong> Malaysia (UUM) in 2003 and 2009, respectively. Currently, she
is working as a Lecturer in Multimedia University, Malaysia. Her research interests include issues related to
knowledge management and entrepreneurship.
Šajeva Svetlana PhD in Social Sciences (Management and Administration), researcher at <strong>the</strong> Institute <strong>of</strong>
Business Strategy, Faculty <strong>of</strong> Social Sciences, Kaunas University <strong>of</strong> Technology, Lithuania. Research
interests: knowledge management, development <strong>of</strong> knowledge management system in <strong>the</strong> organization,
management <strong>of</strong> <strong>the</strong> knowledge workers.
Walaiporn Tantikanangkul, MA Linguistics in Education, Surrey University, UK. Worked at School <strong>of</strong>
Oriental and African Study, London and Communicaid (a private consultancy in London ) teaching Diplomats
and students <strong>of</strong> Thai study. Rresearch includes genre analysis, cultural studies, gender studies, and
psychoanalysis. Co-supervising PhD students at <strong>the</strong> College <strong>of</strong> Arts, Media and Technology, Chiang Mai
University, Thailand
Amarin Tawata is a PhD student in Knowledge Management <strong>of</strong> College <strong>of</strong> Art Media and Technology,
Chiang Mai University. His research area relates to learning in action to improve self-directed learning <strong>of</strong> high
school students.
Paipan Thanalerdsopit, a PhD student in Knowledge Management at College <strong>of</strong> Arts, Media and
Technology <strong>of</strong> Chiang Mai University, Thailand. She is a lecturer and researcher in Rajamangala University
Technology Lanna and was sent to study a PhD in Knowledge Management in Thailand in 2008.
Paul Toulson Associate pr<strong>of</strong>essor; registered industrial/organisational psychologist and member <strong>of</strong> College
<strong>of</strong> Business, Massey University since 1985. Prior employed in New Zealand Armed Forces as
industrial/organisational psychologist and personnel director. Life Fellow, Human Resources Institute New
Zealand, Associate Fellow New Zealand Psychological Society. Founding editor New Zealand Journal <strong>of</strong> HR
Management. Member <strong>of</strong> Institute’s research//publications committee, and Academy <strong>of</strong> Management. Vice
President Academic Branch <strong>of</strong> HRINZ. Research interests HR management practices, methods in HR
management, valuing HR management, and strategic HR management.
David Tweed Associate Pro- Vice-Chancellor executive education College <strong>of</strong> Business , Massey University.
Iinvolved in SME development over 20 years and a practicing researcher (25years). Involved in teaching,
research and extension activities. Was part <strong>of</strong> team awarded a (3year) FRST contract for $675,000
investigating management competencies facilitating <strong>the</strong> uptake <strong>of</strong> new technology by small firms. Written
widely for academic/practitioner audiences including contributions to six books.
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Willard Van De Bogart MFA California Institute <strong>of</strong> Arts, Los Angeles (Educational Technology Design).
Masters in Information Science Counseling and Data Base Retrieval, University <strong>of</strong> Pittsburgh. Obtained
TESOL certification , Sonoma State University,California. In Thailand researching retrieval and digital literacy
techniques for learning English as second language. Taught at Rajabhat University Nakhon Sawan and
Bangkok University. Published in Thammasat,Chulalongkorn, Rajabhat and Cyber University, IT branch,
Ministry <strong>of</strong> Education, Thailand.
Nurhayat Varol Instructor in <strong>the</strong> field <strong>of</strong> Information Technology at Firat University/Turkey since 1992.
Teaches IT courses based on student and project centered learning methods using distance education.
Research interest is in multimedia, computer aided learning and computer aided design, e-pedagogy,
distance education, knowledge management, and technical communication. Published over 40 journal and
conference publications.
Lugkana Worasinchai Co-Director, PhD program Knowledge Management and Innovation Management
(KIM) plus Director, Institute <strong>of</strong> Research Promotion and Innovation Development (IRID), Bangkok
University. Co-Founder/co-Managing Director, Institute for Knowledge and Innovation South-East Asia (IKI-
SEA), Bangkok University. Teaches undergraduate/graduate courses in Business Administration, actively
involved researching relationships between knowledge management/business strategies. Many articles in
major academic journals and seminars to firms/public sector organizations. Guest lecturer at reputable
international universities
Wendy W.Y. Wu earned a Bachelor’s degree with department citation in Economics at <strong>the</strong> University <strong>of</strong>
California, Davis. She also earned a Master’s degree in Information and Technology Management at <strong>the</strong>
Chinese University <strong>of</strong> Hong Kong. Experienced in knowledge management in <strong>the</strong> commercial sector, she
has published in one <strong>of</strong> <strong>the</strong> top IC journals.
Jirawit Yanchinda, <strong>the</strong> 2nd year PhD candidate in Knowledge Management at College <strong>of</strong> Arts, Media and
Technology <strong>of</strong> Chiang Mai University, Thailand.
Lei Ye is a PhD candidate in <strong>the</strong> School <strong>of</strong> Management at Massey University, New Zealand. She also
received her Master’s degree from Massey University. Her research interests include Chinese small and
medium enterprises, cultural and its impact on management, and <strong>the</strong> impact <strong>of</strong> government policies on
businesses in China
Jessica Yip is a MPhil student in <strong>the</strong> Department <strong>of</strong> Industrial and System Engineering <strong>of</strong> <strong>the</strong> Hong Kong
Polytechnic University. Her research interests include knowledge audit, intellectual capital and organizational
learning. She has been attached to <strong>the</strong> Mass Transit Railway Corporation (MTRC) and <strong>the</strong> Hong Kong and
China Gas Company Limited (Towngas), responsible for conducting various knowledge management
projects.
Pitipong Yodmongkon, <strong>the</strong> PhD Supervisor and Deputy Dean for Research & <strong>International</strong> Relations <strong>of</strong>
College <strong>of</strong> Arts, Media and Technology <strong>of</strong> Chiang Mai University, Thailand. He got his PhD in Knowledge
Management from Chiang Mai University, Thailand.
Aboubakr A. Moteleb Zade Consultant, researcher & lecturer in knowledge management systems (KMS).
Consulted for various international organizations including <strong>the</strong> UN, <strong>the</strong> Industry Modernization Centre <strong>of</strong> <strong>the</strong>
EU, Japan <strong>International</strong> Cooperation Agency, Lloyds TSB and Panasonic. PhD and research published in
international conferences and journals resulted in a grounded methodology for developing KMS that deliver
value to organizations.
Mohd Zali is an I.T Development Manager in a global shipping organization. He is also pursuing his PhD in
<strong>the</strong> area <strong>of</strong> Knowledge Management in collaborative S<strong>of</strong>tware Maintenance in Universiti Putra Malaysia. As
an avid cyclist and keen carpenter, he finds it a challenge to balance <strong>the</strong> work, sport, hobby and study. He’s
hoping to complete <strong>the</strong> PhD this year.
Kürşad Zorlu graduated in Public Administration at Selçuk University, Turkey in 1998. He completed his
Ph.D in Management and Organization Science at Kırıkkale University in 2009. He currently works as
Chairman <strong>of</strong> <strong>the</strong> Ahi Evran University Department <strong>of</strong> Business Management in <strong>the</strong> Turkey. His research
focuses on KM discipline and applications, productivity, SMEs, organizational behaviour and Central Asia.
xx

Evaluation and Response from Students and Teachers on a
Preliminary Launch <strong>of</strong> an ELT Resource-based Website
Preawpan Pringprom
Language Institute, Bangkok University, Bangkok, Thailand
Preawpan.p@bu.ac.th
Abstract: The World Wide Web (WWW) has been a central resource for teaching and learning in a variety <strong>of</strong>
subject areas over <strong>the</strong> past two decades (Avia and Golan, 1998; Barnard, 1997; Berge, 1997). The use <strong>of</strong>
website technologies as a teaching and learning tool that based on <strong>the</strong> webs system is rapidly expanding. These
technological innovations make possible <strong>the</strong> emergence <strong>of</strong> a new medium for knowledge sharing. The wide use
<strong>of</strong> Information Technology (IT) to support knowledge sharing in educational organizations as well as <strong>the</strong>
exponential growth <strong>of</strong> websites incorporating English as a Second Language (ESL) has prompted my interest to
design an ELT Resource-based Website. This new ELT Resource-based Website integrates both <strong>the</strong> Knowledge
Management (KM) concept and <strong>the</strong> Internet Assisted Language Learning (IALL). Before <strong>the</strong> Websites <strong>of</strong>ficial
debut, an evaluation was needed in order to obtain user response to determine if <strong>the</strong> website needed fur<strong>the</strong>r
improvement. The research is aimed to ga<strong>the</strong>r feedback from EFL students and teachers on <strong>the</strong> quality <strong>of</strong>
information and usability <strong>of</strong> this newly designed ELT Resource-based Website. Participants were comprised <strong>of</strong>
157 Bangkok University students studying English, as required courses, and 18 EFL teachers (Thai, n = 15,
Native, n = 3). Two questionnaires - a student-questionnaire and a teacher-questionnaire - containing six criteria
<strong>of</strong> website evaluation were used as research instruments. Descriptive statistics were utilized to find percentages,
means and standard deviation. Participants’ comments and suggestions were reported qualitatively. The overall
evaluation showed positive responses on <strong>the</strong> Website’s quality and usability from both students and teachers.
Keywords: integrating KM into ELT setting; information sharing in ELT environment; website evaluation;
response on ELT resource-based website; internet assisted language learning
1. Introduction
In <strong>the</strong> contemporary knowledge-based society, knowledge is recognized as a critical strategic
resource for <strong>the</strong> individual, and is considered to be a source <strong>of</strong> sustainable competitive advantage
(Drucker, 2001). Egbu and Botterill (2002) refer to Knowledge management (KM) as <strong>the</strong> processes by
which knowledge is “created, acquired, communicated, shared, applied and effectively utilized and
managed, in order to meet existing and emerging needs, to identify and exploit existing and acquired
knowledge assets.” Researchers (Bock & Kim, 2002; Markus, 2001; Wasko & Faraj, 2005) define
knowledge sharing as <strong>the</strong> process by which individuals impart <strong>the</strong>ir expertise, insight, or
understanding to o<strong>the</strong>r individuals so that <strong>the</strong> recipient may potentially acquire and use <strong>the</strong> knowledge
to perform his or her task better. According to Bock and Kim (2002), knowledge sharing is <strong>the</strong> most
important part <strong>of</strong> KM. Alavi and Leidner (2001) emphasized <strong>the</strong> importance <strong>of</strong> IT for knowledge
management and its applications in connecting organizational information and extending <strong>the</strong>
individual’s reach beyond formal lines <strong>of</strong> communication. Knowledge sharing is a process that
involves exchanging knowledge between individuals and groups (Davenport and Prusak, 1998). KM
has been defined by many authors in similar terms, in this study, KM refers to a range <strong>of</strong> online
practices used by EFL teachers and learners to share and distribute knowledge among ELT peers or
English learning community.
ELT-Resource-based Website was created for two main purposes: First purpose was to bring <strong>the</strong> KM
concept into online practice among individuals in an ELT pr<strong>of</strong>ession, where <strong>the</strong>y could share useful
information, exchange <strong>the</strong>ir teaching experience, and <strong>the</strong>ir research expertise via an online
community. Second purpose was to help EFL learners quickly reach specific information and
knowledge by providing <strong>the</strong>m with an effective resource-based website.
Figure 1 and figure 2 give some idea <strong>of</strong> <strong>the</strong> website content menus, which is divided into three
sections: Main menu, Teachers, and Students, and each section have its headings that will lead users
to a list <strong>of</strong> different URLs under <strong>the</strong> headings mentioned. The main menu consists <strong>of</strong> an
administrator’s pr<strong>of</strong>ile, invited lecturers, and main ELT forum. The teachers section consists <strong>of</strong>
teaching tools, teaching methodology, teaching strategies, and a research corner. Within this section,
teachers can share <strong>the</strong>ir knowledge, exchange <strong>the</strong>ir experience and expertise among <strong>the</strong>ir peers. The
students section contains topics relating to English tools, grammar, vocabulary, listening, reading,
writing, language games, and self-assessment. There is also a variety <strong>of</strong> YouTube-links, provided as
English e-learning materials. The users will be led to <strong>the</strong> site <strong>of</strong> <strong>the</strong> topic <strong>the</strong>y want just by clicking <strong>the</strong>
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Preawpan Pringprom
URL provided. Each ELT-site was well researched and carefully reviewed for its content and
functionality. Each URL in <strong>the</strong> students section has a brief description in Thai to lead Thai studentusers’
more effectively to <strong>the</strong> target information. In addition to <strong>the</strong>se menus, <strong>the</strong>re is also a link to
online assessment for <strong>the</strong> users to evaluate <strong>the</strong> ELT Resource-based Website for its future
improvement.
Figure 1: Website homepage
Figure 2: ELT resource-based website index
2. Related works
2.1 Internet-based and knowledge sharing
Williamson and Woo’s work, which focused on document management, suggested how <strong>the</strong> internet
has provided an opportunity over <strong>the</strong> last decade to redefine <strong>the</strong> way information is acquired,
transmitted, and archived for organization wide usefulness (in Mills, 2007:2). Yang et al. (2009)
implemented wiki-based as research tools to build two useful platforms as knowledge management
systems for small research groups and found that <strong>the</strong> wiki-based knowledge management system
satisfied <strong>the</strong> requirements <strong>of</strong> most small group users.
2.2 Users’ responses
User-based evaluation and feedback can serve as direct descriptions <strong>of</strong> any problems with a website
(Karoulis, Demetriadis, and Pombortsis; 2006: 172-185). Many studies indicated that past success <strong>of</strong>
website utilization was largely dependent on users’ attitudes toward <strong>the</strong> website (Daugherty and
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Funke, 1998; Fenech, 1998; Johnson and Hignite, 2000). Since <strong>the</strong> ELT-Resource-based Website is
currently undergoing trial, feedback from <strong>the</strong> target users is very important for future improvement.
Therefore, I have adopted Cornell’s evaluation framework (Cornell University Library, 2011) as a
research tool. The questionnaire contained six criteria: site administrator, objectivity, appropriateness
and relevance, content and information, currency, and usability. The reason I have chosen Cornell’s
web evaluation framework is because it serves <strong>the</strong> need <strong>of</strong> my work and is also a valuable evaluation
criteria for determining <strong>the</strong> reliability or unreliability <strong>of</strong> <strong>the</strong> content <strong>of</strong> similar websites. In addition,
Cornell University is a well-known and respected educational institute.
3. Research objectives
The research is aimed at obtaining target users’ responses and feedback on quality and usability <strong>of</strong>
<strong>the</strong> ELT Resource-based Website for its preliminary launch. User’s feedback would be very useful for
<strong>the</strong> overall improvement <strong>of</strong> this newly designed Website. Researchers learned that how <strong>the</strong>
information was structured on <strong>the</strong> website and how <strong>the</strong> link mechanism was designed and presented
on <strong>the</strong> menu determined <strong>the</strong> success <strong>of</strong> <strong>the</strong> navigation links (cited in Yu and Roh, 2002).
4. Methods
4.1 Participants
There were 157 Bangkok University students studying English as required courses and 18 EFL
lecturers (Thai, n = 15, Native, n = 3) participated in this study. Student-participants were recruited
from students who were studying General English courses and English for Specific Purposes course
based on availability. Teacher-participants were selected according to <strong>the</strong> five-year minimum Englishteaching
experience. All participants had 2-4 weeks to examine <strong>the</strong> ELT Resource-based Website.
4.2 Instruments
Researchers have identified three factors that contribute to effectively using web resources: quality <strong>of</strong>
information, design <strong>of</strong> <strong>the</strong> learning applications, and strategies <strong>of</strong> integration (Boer and Collis, 2001;
Brem, Russell and Weems, 2001). These three factors later were found to influence student’s
attitudes toward using, and learning with web resources (Liu and Johnson, 1998; Liu and Velasquez-
Bryant, 2003). Since this study is aimed to ga<strong>the</strong>r an overall feedback <strong>of</strong> <strong>the</strong> quality <strong>of</strong> information and
usability <strong>of</strong> <strong>the</strong> ELT-Resource-based Website, two questionnaires, adapted from Cornell’s evaluation
framework (Cornell University Library, 2011) were used. The questionnaire contained six criteria for
evaluating website information. Following are descriptions <strong>of</strong> each criterion:
First criterion was a site administrator. This section told users who <strong>the</strong> website administrator was,
which helped <strong>the</strong> users to determine whe<strong>the</strong>r <strong>the</strong> website was credible and reliable. There were 3
items on this section containing a website administrator’s bio-data, credentials, and contact
information.
Second criterion was objectivity. Objectivity explained <strong>the</strong> purpose <strong>of</strong> a website and also
described its target users. This section gave <strong>the</strong> users information why <strong>the</strong> website was created
and whom it was designed for. There were 3 items to be rated on this section.
Third criterion was appropriateness and relevance. There were 4 items on this section containing
information about a website’s contents and design whe<strong>the</strong>r it was appropriate and relevant to <strong>the</strong>
website’s objective. However, <strong>the</strong>re was only one item in a student’s questionnaire on this
section. Student-participants would evaluate this section focusing on efficiency <strong>of</strong> internet-based
information sharing.
Fourth criterion is content and information. There were 3 items on this section. The participants
would evaluate <strong>the</strong> contents, collected information and links to determine whe<strong>the</strong>r those links
were useful resources and complemented <strong>the</strong> <strong>the</strong>mes. There was only one item in a student’s
questionnaire on this section. Student-participants would evaluate this section focusing on <strong>the</strong>
benefits <strong>of</strong> <strong>the</strong> website for ESL students.
Fifth criterion was currency. There were 2 items on this section concerning up-to-date information
on <strong>the</strong> website.
Sixth criterion was usability. This was <strong>the</strong> last section <strong>of</strong> a questionnaire containing 5 items for
teacher and student participants to evaluate. This section focused on functionality <strong>of</strong> <strong>the</strong> website.
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4.2.1 Teacher’s questionnaire
A teacher’s questionnaire consisted <strong>of</strong> 20 statements (see Appendix A), which was adapted from
basic website evaluation <strong>of</strong> Cornell’s framework (2011). For each statement, teacher-participants had
to rate <strong>the</strong>ir response on a five-point Likert scale in relation to six criteria: site administrator,
objectivity, appropriateness and relevance, content and information, currency, and usability.
4.2.2 Student’s questionnaire
A student’s questionnaire was constructed in Thai language. There were 15 statements (see
Appendix B, English version). For each statement, student-participants had to rate <strong>the</strong>ir response on
a five-point Likert scale in relation to six criteria, which were similar to <strong>the</strong> teacher’s. A five-point Likert
scale ranged from “totally disagree” (1), “disagree” (2), “fair” (3), “agree” (4), and “totally agree” (5).
The rating scales were fur<strong>the</strong>r interpreted below using Srisa-ard’s criteria (2002).
4.51–
5.00 Highest level <strong>of</strong> agreement
3.51–
4.50 High level <strong>of</strong> agreement
2.51–
3.50 Moderate level <strong>of</strong> agreement
1.51–
2.50 Low level <strong>of</strong> agreement
1.00–
1.50 Lowest level <strong>of</strong> agreement
4.2.3 Validity <strong>of</strong> questionnaires
After reviewing literature on <strong>the</strong> website evaluation, a questionnaire was constructed. There were six
criteria, which consisted <strong>of</strong> twenty items. 3 EFL lecturers who had experience with CALL (Computer
Assisted Language Learning) were invited to validate <strong>the</strong> contents <strong>of</strong> a questionnaire. To assure that
every statement would be comprehensible by student-users, <strong>the</strong> questionnaire was also reviewed by
40 EFL students at <strong>the</strong> same time <strong>of</strong> conducting reliability testing. Through content face-validity, it was
found that three statements in <strong>the</strong> appropriateness and relevance section, which related to <strong>the</strong> KM
concept weren’t understood by <strong>the</strong> students. Therefore, I decided to separate <strong>the</strong> questionnaire into
two sets: a-teacher-questionnaire and a student-questionnaire. It was also found that a few words
were needed to be adjusted and revised for more comprehensibility for student-users.
4.2.4 Reliability <strong>of</strong> a questionnaire
In order to test <strong>the</strong> reliability <strong>of</strong> <strong>the</strong> questionnaire, a pilot study was conducted with 40 EFL students
who had had experience <strong>of</strong> using <strong>the</strong> ELT-Resource-based Website. The instructions and <strong>the</strong>
purpose <strong>of</strong> <strong>the</strong> evaluation were explained. The students voluntarily rated each statement one by one
after I had read aloud along with <strong>the</strong> explanations. Two weeks later, <strong>the</strong> same group <strong>of</strong> students was
asked to re-evaluate <strong>the</strong> Website. The reliability <strong>of</strong> <strong>the</strong> student-questionnaire as calculated by
Cronbach's alpha coefficient was .80.
However, <strong>the</strong> reliability <strong>of</strong> a teacher-questionnaire was not calculated due to <strong>the</strong> limited number <strong>of</strong>
teacher-participants.
4.3 Procedures
The ELT-Resource-based Website was introduced to 18 teacher- participants. 15 <strong>of</strong> <strong>the</strong> participants
were Thai and 3 were native English speakers. After two weeks <strong>of</strong> <strong>the</strong> Website exploration, <strong>the</strong>
participants were asked to evaluate <strong>the</strong> Website.
157 student-participants were asked to use <strong>the</strong> ELT-Resource-based Website. Four weeks later
student’s questionnaires, Thai version, were given to <strong>the</strong> student- participants for <strong>the</strong>ir response and
feedback on using <strong>the</strong> website. Instructions were read and rating scales were explained to <strong>the</strong>
participants. I told <strong>the</strong> participants that <strong>the</strong>y could ask me if <strong>the</strong>y did not understand any statements in
<strong>the</strong> questionnaire.
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4.4 Data analyses
Preawpan Pringprom
There were two types <strong>of</strong> data in this study. Quantitative data, obtaining from <strong>the</strong> participants’
evaluation, was calculated using descriptive statistics to find percentages, means and standard
deviation. Comments and suggestions from <strong>the</strong> participants were reported qualitatively.
5. Findings and discussion
5.1 Teachers’ evaluation and comments
Figure 3 shows <strong>the</strong> overall rating from teacher-participants, which received <strong>the</strong> highest level ( 4.51–
5.00) and high level <strong>of</strong> agreement ( 3.51–
4.50 ). There were 5 comments: 1 participant said that <strong>the</strong>
ELT Resource-based Website design and <strong>the</strong> examples given were difficult to understand, and 4
participants commented that <strong>the</strong> content in most links were too hard for student-users to follow.
Figure 3: Summary <strong>of</strong> teacher’s questionnaire result (n= 18)
5.2 Students’ evaluation and comments
Figure 4 shows overall feedback from student-participants on <strong>the</strong> ELT Resource-based Website,
which was mostly rated using <strong>the</strong> highest level ( 4.51–
5.00 ) as well as high level <strong>of</strong> agreement
( 3.51–
4.50 ). Result was similar to <strong>the</strong> teacher-participants’ rating. The mean scores <strong>of</strong> <strong>the</strong>
statement no. 6 (Users’ understanding <strong>the</strong> web’s purpose) and no.14 (Users know how to use <strong>the</strong>
web) were lower than o<strong>the</strong>rs. The questionnaire found that participants rated “Disagree” 11.46% on
statement no. 6 and rated “Disagree” 7.01% and “Totally disagree” 0.64% on statement no. 14.
This might be due to our students not being familiar with <strong>the</strong> resources inventory and had little idea <strong>of</strong>
<strong>the</strong> ELT Resource-based Website’s concept. There were two participants who wrote <strong>the</strong>ir comments
in <strong>the</strong> questionnaire stating that searching Google was easier.
However, <strong>the</strong> overall participants gave positive feedback saying that <strong>the</strong> Website was useful and <strong>the</strong>
internet was a very an effective method for acquiring knowledge and sharing information. There were
48 comments and suggestions from <strong>the</strong> participants (n=157): 39 suggested that it would be better to
have Thai translation, 3 said that <strong>the</strong> URL <strong>of</strong> <strong>the</strong> ELT Resource-based Website was too long, which
made it difficult to remember, and 6 commented <strong>the</strong>re should be more links.
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Figure 4: Summary <strong>of</strong> student’s questionnaire result (n= 157)
I asked a few participants to confirm what <strong>the</strong>y meant by having Thai translation since almost every
explanation was in Thai on every link <strong>of</strong> <strong>the</strong> student’s section. They said that if <strong>the</strong> contents in each
link could be translated into Thai, it would be more helpful. I explained to <strong>the</strong>m it was not <strong>the</strong> purpose
<strong>of</strong> this Website and it might be difficult and impractical to <strong>the</strong> unskilled-English users. Consequently in
<strong>the</strong> future, I would add good Thai-URL for English learning resources.
The findings from this study were helpful. I was especially concerned about <strong>the</strong> comments from <strong>the</strong>
students on <strong>the</strong> purpose and <strong>the</strong> usability <strong>of</strong> <strong>the</strong> ELT Resource-based Website. I have to find ways to
introduce how <strong>the</strong> ELT Resource-based Website can benefit <strong>the</strong>m.
6. Appendix A (Teacher’s Questionnaire)
Instructions: http://www.preawpan-elt-resource-based.com was created to (1) bring <strong>the</strong> KM concept
into online practice among individuals in an ELT pr<strong>of</strong>ession and (2) to help students quickly reach
specific information and knowledge by providing <strong>the</strong>m with an effective English resource-based
website. Please evaluate <strong>the</strong> Website according to <strong>the</strong> following criteria for fur<strong>the</strong>r improvement. Your
suggestions and comments would also be appreciated.
1 = Totally disagree / no information at all
2 = Disagree / no information
3 = Fair
4 = Agree
5 = Totally agree
Criteria for Evaluating Website http://www.preawpan-elt-resource-based.com/
1. Site Administrator: )Look for information at ‘About Me’)
The site administrator has expertise in <strong>the</strong> field <strong>of</strong> English Learning and Teaching (ELT).
Contact information <strong>of</strong> <strong>the</strong> site administrator such as e-mail is provided.
The website is reliable.
2. Objectivity: )Look for information at ‘Home’)
The purpose <strong>of</strong> <strong>the</strong> website is clearly explained.
The target users <strong>of</strong> <strong>the</strong> website are identified.
Users understand <strong>the</strong> purpose <strong>of</strong> <strong>the</strong> website.
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Rating
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Preawpan Pringprom
3. Appropriateness & Relevance:
The internet is an effective way for searching and sharing information.
The design <strong>of</strong> <strong>the</strong> website is agreeable with its purpose.
The website’s design integrates <strong>the</strong> KM, ELT, and IT concept.
KM is practical via internet-based practice.
4. Content & Information:
Information in <strong>the</strong> website is helpful for ELT teachers and/or researchers.
Links are related to <strong>the</strong> Index/ Topics.
The content and information <strong>of</strong> <strong>the</strong> collected links are qualified and provided good
resources.
5. Currency:
There are no dead links.
The last-update date is specified.
6. Usability:
The website is easy to use.
Users can go back to <strong>the</strong> homepage easily.
The procedure <strong>of</strong> using <strong>the</strong> website is easy.
Users know how to search for information within <strong>the</strong> website.
Pages in <strong>the</strong> website are downloaded quickly.
Sub-Total by rating <strong>of</strong> points awarded for each <strong>of</strong> <strong>the</strong> five criteria
Comments and suggestions ______________________________________________________
________________________________________________________________________________________
7. Appendix B (Student’s Questionnaire)
Instructions: http://www.preawpan-elt-resource-based.com was created to help students quickly reach
specific information and knowledge by providing an effective English resource-based website. Please
evaluate <strong>the</strong> Website according to <strong>the</strong> following criteria for fur<strong>the</strong>r improvement. Your suggestions and
comments would also be appreciated.
1 = Totally disagree / no information at all
2 = Disagree / no information
3 = Fair
4 = Agree
5 = Totally agree
Criteria for Evaluating Website http://www.preawpan-elt-resource-based.com/
1. Site Administrator: )Look for information at ‘About Me’)
The site administrator has expertise in <strong>the</strong> field <strong>of</strong> English Learning and Teaching (ELT).
Contact information <strong>of</strong> <strong>the</strong> site administrator such as e-mail is provided.
The website is reliable.
2. Objectivity: )Look for information at ‘Home’)
The purpose <strong>of</strong> <strong>the</strong> website is clearly explained.
The target users <strong>of</strong> <strong>the</strong> website are identified.
Users understand <strong>the</strong> purpose <strong>of</strong> <strong>the</strong> website.
3. Appropriateness & Relevance:
Internet is <strong>the</strong> effective way for searching and sharing information.
4. Content & Information:
Information on <strong>the</strong> website is very helpful for self-study English.
5. Currency:
There are no dead links.
The last-update is specified.
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6. Usability:
The website is easy to use.
Users can go back to <strong>the</strong> homepage easily.
The procedure <strong>of</strong> using <strong>the</strong> website is easy.
Users know how to search for information within <strong>the</strong> website.
Pages in <strong>the</strong> website are downloaded quickly.
Sub-Total by rating <strong>of</strong> points awarded for each <strong>of</strong> <strong>the</strong> five criteria
Comments and suggestions _______________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
Acknowledgments
I am grateful to Bangkok University for funding this research. I would also like to thank students and
teachers for <strong>the</strong>ir time contribution as well as anonymous reviewers. I would appreciate Mr. Willard
Van De Bogart for pro<strong>of</strong>reading this paper.
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426

Strategic and Operational Risk in an <strong>International</strong>
Cooperation Agency: A Knowledge Management Solution
Eduardo Rodriguez 1 , John Edwards 2 and Angel Facundo 3
1 IQAnalytics Canada, EDC Canada
2 Aston Business School UK
3 IQAnalytics Colombia
eduardo.rodriguez@iqanalytics.com
Abstract: The <strong>International</strong> Cooperation Agency (identified in this article as IDEA) working in Colombia is one <strong>of</strong>
<strong>the</strong> most important in Colombian society with programs that support gender rights, human rights, justice and
peace, scholarships, aboriginal population, youth, afro descendants population, economic development in
communities, and environmental development. The identified problem is based on <strong>the</strong> diversified <strong>of</strong>fer <strong>of</strong>
services, collaboration and social intervention which requires diverse groups <strong>of</strong> people with multiple agendas,
ways to support <strong>the</strong>ir mandates, disciplines, and pr<strong>of</strong>essional competences. Knowledge creation and <strong>the</strong> growth
and sustainability <strong>of</strong> <strong>the</strong> organization can be in danger because <strong>of</strong> a silo culture and <strong>the</strong> resulting reduced
leverage <strong>of</strong> <strong>the</strong> separate group capabilities. Organizational memory is generally formed by <strong>the</strong> tacit knowledge <strong>of</strong>
<strong>the</strong> organization members, given <strong>the</strong> value <strong>of</strong> accumulated experience that this kind <strong>of</strong> social work implies. Its
loss is <strong>the</strong>refore a strategic and operational risk when most problem interventions rely on direct work in <strong>the</strong> socioeconomic
field and living real experiences with communities. The knowledge management solution presented in
this article starts first, with <strong>the</strong> identification <strong>of</strong> <strong>the</strong> people and groups concerned and <strong>the</strong> creation <strong>of</strong> a knowledge
map as a means to streng<strong>the</strong>n <strong>the</strong> ties between organizational members; second, by introducing a content
management system designed to support <strong>the</strong> documentation process and knowledge sharing process; and third,
introducing a methodology for <strong>the</strong> adaptation <strong>of</strong> a Balanced Scorecard based on <strong>the</strong> knowledge management
processes. These three main steps lead to a knowledge management “solution” that has been implemented in
<strong>the</strong> organization, comprising three components: a knowledge management system, training support and
promotion <strong>of</strong> cultural change.
Keywords: knowledge management, strategic risk, operational risk, risk management, balanced scorecard
1. Introduction
The application <strong>of</strong> Knowledge Management (KM) and Risk Management (RM) principles, <strong>the</strong> design
<strong>of</strong> Knowledge Management Systems (KMS) and <strong>the</strong> application <strong>of</strong> <strong>the</strong> Balanced Scorecard (BSC)
have mainly been developed in for-pr<strong>of</strong>it organizations. This article presents <strong>the</strong> case <strong>of</strong> an
organization where <strong>the</strong> final goal is <strong>the</strong> satisfaction and development <strong>of</strong> <strong>the</strong> users-beneficiaries <strong>of</strong> <strong>the</strong>
services that <strong>the</strong> organization provides, supporting communities in developing countries. This article
shows how <strong>the</strong> design <strong>of</strong> a simplified KMS supports different social programs, reduces <strong>the</strong> silo culture
and reduces <strong>the</strong> strategic and operational risks <strong>of</strong> <strong>the</strong> organization. This KMS is connected to <strong>the</strong>
organizational processes, KM processes and performance evaluation in order to improve knowledge
sharing, access to explicit knowledge, organizing <strong>the</strong> work flow, and measuring <strong>the</strong> organizational
improvement.
The specific objectives <strong>of</strong> this article are shown in Table 1
Table 1: Objectives <strong>of</strong> <strong>the</strong> study
Objectives
1. Present KM in a cooperation organization
2. Present <strong>the</strong> risks <strong>of</strong> <strong>the</strong> organization affecting strategy and operation
3. Identify aspects <strong>of</strong> particular interest in <strong>the</strong> analysis <strong>of</strong> this type <strong>of</strong> organization.
4. Introduce <strong>the</strong> KMS as a way <strong>of</strong> tracking value realization <strong>of</strong> <strong>the</strong> organization’s programs
5. Describe <strong>the</strong> organization and design <strong>of</strong> <strong>the</strong> three subsystems <strong>of</strong> <strong>the</strong> KMS: a document
management system as repository, a social network as a collaboration tool and a measurement
subsystem.
6. Connect with <strong>the</strong> BSC, KM and business processes in order to support risk mitigation.
The article has been organized as follows: first we present some <strong>of</strong> <strong>the</strong> characteristics <strong>of</strong> <strong>the</strong>
organization and <strong>the</strong> problems that <strong>the</strong>y have, <strong>the</strong>n a review <strong>of</strong> <strong>the</strong> main concepts <strong>of</strong> KM, RM, and
BSC and finally <strong>the</strong> solution that was adopted.
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2. The IDEA organization
Eduardo Rodriguez et al.
IDEA is an organization <strong>of</strong> international cooperation with operations in Colombia. Two different groups
<strong>of</strong> people work for <strong>the</strong> organization: administrators and pr<strong>of</strong>essionals <strong>of</strong> different disciplines who carry
out <strong>the</strong> development <strong>of</strong> programs <strong>of</strong> support to communities.
IDEA thus has multiple pr<strong>of</strong>iles in its human resources. The members <strong>of</strong> <strong>the</strong> organization meet and
interact with diverse groups and communities to help tackle <strong>the</strong>ir problems. There is a work
documentation structure that requires sequential steps <strong>of</strong> review and management <strong>of</strong> a high volume
<strong>of</strong> internal and external documents. There are 16 different areas (12 programs and 4 administrative
areas) and 53 people in <strong>the</strong> organization. This means some programs have as few as two people in
charge. The organization needs a support system to develop collaboration and knowledge transfer;
<strong>the</strong>re is a silo culture because <strong>of</strong> <strong>the</strong> work <strong>of</strong> different projects in different places in <strong>the</strong> country <strong>of</strong>ten
with very specialized problems to solve. The organization is aware that it is important for <strong>the</strong> teams to
share and develop good practice through inter-area support and <strong>the</strong> use <strong>of</strong> <strong>the</strong> accumulated
experience.
There is a web page (portal) for communication externally but it is not fully developed; <strong>the</strong>re is no
intranet. The head <strong>of</strong>fice has a different design <strong>of</strong> extranet and its intranet design has not been
passed over to <strong>the</strong> Colombian operation. The current information system has support elements to
provide basic information but nei<strong>the</strong>r access to documents nor any capacity for shared work.
3. Theoretical framework
In this section <strong>the</strong> principal KM and RM concepts used in this research are presented. The KM
concepts refer to KM processes and KMS design. The RM concepts relate to <strong>the</strong> meaning <strong>of</strong> strategic
and operational risks.
Knowledge Management concepts
Knowledge is a sustainable competitive advantage (Alavi and Leidner 2001), which is associated with
increased productivity, is a critical success factor and can introduce innovation and competitiveness.
Knowledge management is a necessary process <strong>of</strong> <strong>the</strong> organization in order to compete (Von Krogh
1998). For Nonaka (1991), <strong>the</strong> data and systematic procedures comprise "explicit knowledge". But
<strong>the</strong>re is also "tacit knowledge" (expertise, mental models, beliefs, prospects or "Know how") with a
process <strong>of</strong> creation, which is highly personal. These skills are difficult to communicate and
systematize. Nonaka (1991) suggests <strong>the</strong> SECI model that as Alavi and Leidner (2001) pointed out
contributes to <strong>the</strong> organization’s productivity. Alavi and Leidner (2001) (Table 2) adopt <strong>the</strong> definition
<strong>of</strong> knowledge management as a process, with four sub-processes: Knowledge creation, knowledge
storage and retrieval, knowledge transfer and knowledge application.
Table 2: Alavi and Leidner (2001) knowledge management processes
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Eduardo Rodriguez et al.
In order to support <strong>the</strong>se processes a Knowledge Management System (KMS) is required. Alavi and
Leidner (2001) identified <strong>the</strong> KMS as <strong>the</strong> “kind <strong>of</strong> information systems applied to managing
organisational knowledge.” However, Alavi and Leidner (2001) state that KM requires more than IT; it
requires <strong>the</strong> creation <strong>of</strong> a means to share knowledge, information processed by individuals and
adapted to be communicated.
Thus, <strong>the</strong> transition <strong>of</strong> an information system into a knowledge management system (KMS) requires
several components that take into consideration <strong>the</strong> system design stage. The KMS components
(Lehaney et al., 2004; Davenport and Prusak, 1998; Malhotra, 1999; Edwards et al., 2005) can be
summarized as follows:
People interactions: KM and Knowledge acquisition are subject to perceptions and agreement.
These human interactions require two subsystems:
Technology acting as support and <strong>the</strong> way to enable <strong>the</strong> KM function
Organisational structures
The KMS takes into consideration <strong>the</strong> type <strong>of</strong> work that people have in communities, environment and
technological means to generate development in <strong>the</strong> society where IDEA should be <strong>the</strong> engine and
support. The purpose <strong>of</strong> <strong>the</strong> KMS for <strong>the</strong> programs-projects is to achieve better coordination and
collaboration for making decisions.
Risk Management Concepts
Risk can be defined as “<strong>the</strong> uncertainty about <strong>the</strong> world and uncertainty expressed by probabilities
related to <strong>the</strong> observable quantities (Performance Measures)” (Aven 2003). However, for managers
<strong>the</strong> meaning <strong>of</strong> risk is more related to <strong>the</strong> concept <strong>of</strong> loss and <strong>the</strong>re is no clear identification with
positive changes <strong>of</strong> performance (Tanriverdi and Ruefli 2004). In this research, and in <strong>the</strong> context <strong>of</strong>
IDEA, risk is identified more with <strong>the</strong> study <strong>of</strong> <strong>the</strong> variance <strong>of</strong> expected results conditioned to previous
knowledge. In this context adapting <strong>the</strong> previous definitions strategic and operational risks are
understood as variance <strong>of</strong> expected results to deliver value to users and beneficiaries.
Strategic Risk has been referred to as, “Strategic Risk for an individual firm can be defined in terms <strong>of</strong>
<strong>the</strong> probability <strong>of</strong> losing rank position vis a vis <strong>the</strong> o<strong>the</strong>r firms in <strong>the</strong> reference set.” (Collins and Ruefli
1992). In <strong>the</strong> IDEA context <strong>the</strong> view <strong>of</strong> Slywotzky and Drzik (2005) guides <strong>the</strong> adaptation <strong>of</strong> RM <strong>the</strong>ory
to this type <strong>of</strong> organization. Slywotzky and Drzik consider strategic risk <strong>the</strong> biggest <strong>of</strong> all risks for an
organization. These authors identify <strong>the</strong> factors that have incidence in strategic risk as: Industry
margin squeeze, technology shift, brand erosion, competitors’ strengths, customer priority shift, new
project failure, and market stagnation.
The strategic risk is observed as a lack <strong>of</strong> capacity to achieve <strong>the</strong> goals, reducing possibilities <strong>of</strong>
supporting community development. On <strong>the</strong> o<strong>the</strong>r hand, Young and Hasler (2010) pointed out
reputational risk, which is part <strong>of</strong> strategic risk, <strong>the</strong> risk affecting <strong>the</strong> reputational capital, which
includes concepts related to honesty, responsibility, objectivity and fairness in <strong>the</strong> outcomes and
processes.
Operational Risk is “[t]he risk <strong>of</strong> loss resulting from inadequate or failed processes and systems,
human error, or external events.” (Ong 2006) A way to relate operational risk and stakeholders is
presented by Sadgrove (2005), who indicates different types <strong>of</strong> hazards depending on <strong>the</strong> business
value chain; this is related to suppliers, process and internal risks, distribution and customers. In <strong>the</strong>
IDEA context <strong>the</strong> suppliers are represented by organizations that support <strong>the</strong> agency operation, <strong>the</strong>
internal processes are represented by <strong>the</strong> activities performed for creation <strong>of</strong> solutions to <strong>the</strong>
community’s problems where <strong>the</strong> agency is working. Distribution is represented by <strong>the</strong> members <strong>of</strong>
<strong>the</strong> organization that works directly with <strong>the</strong> communities and <strong>the</strong> organizations that help <strong>the</strong> service
delivery, such as o<strong>the</strong>r NGOs or <strong>the</strong> governments <strong>the</strong>mselves. The customers are represented by
users and beneficiaries <strong>of</strong> <strong>the</strong> services, programs, and projects.
RM is considered important in <strong>the</strong> strategic management process (Meulbroek 2002), in particular an
integral view <strong>of</strong> risk management (Brown 2001; Froot et al. 1994; Banham 2004) has <strong>the</strong> capacity to
create value in order to develop a competitive advantage (Galloway and Funston 2000). The
competitive advantage <strong>of</strong> <strong>the</strong> industrial organization can be limited because <strong>of</strong> risk <strong>of</strong> potential losses,
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Eduardo Rodriguez et al.
caused by expansion, cultural pressures, reduced controls, communication <strong>of</strong> business values,
learning systems and concentration on information (Simmons 1999). From <strong>the</strong> social organization
perspective development can be limited because <strong>of</strong> <strong>the</strong> lack <strong>of</strong> capabilities to support <strong>the</strong> required
communities’ development through <strong>the</strong> programs-projects.
Performance evaluation
The BSC is one <strong>of</strong> <strong>the</strong> methods that organizations use for identifying results and designing strategy.
The methodology <strong>of</strong> BSC was introduced by Kaplan and Norton (1996) identifying four perspectives
(Figure 1) to balance <strong>the</strong> performance evaluation: financial, processes, customer and learning and
development. Wegmann (2008) pointed out that <strong>the</strong> balanced scorecard is a means to support
knowledge management and Sears(2009) integrated concepts <strong>of</strong> Lean Six Sigma into <strong>the</strong> balanced
scorecard supporting knowledge transfer. Additionally, <strong>the</strong> BSC has been applied to social
organizations; for instance, Tardivo and Viassone (2010) summarize <strong>the</strong> application <strong>of</strong> <strong>the</strong> concepts
<strong>of</strong> balanced scorecard to social assistance organizations. In <strong>the</strong> IDEA context <strong>the</strong>re is an interesting
review <strong>of</strong> <strong>the</strong> cause-effect structure since <strong>the</strong> final goal <strong>of</strong> <strong>the</strong> IDEA organization is to provide value to
users and beneficiaries, not to generate pr<strong>of</strong>its.
The BSC has been used as a means to understand <strong>the</strong> intellectual capital value for organizations
(Boda et al.,2008) Their review <strong>of</strong> intellectual capital measurement systems opens a way to analyze
<strong>the</strong> risk measure based on <strong>the</strong> changes <strong>of</strong> <strong>the</strong> expected results in <strong>the</strong> BSC. Additionally, Matin et al.
(2010) pointed out that <strong>the</strong> Balanced Scorecard adds value in <strong>the</strong> knowledge sharing process when
organizational objectives and people are matched, identifying roles and responsibilities. Keyes's
(2005) approach <strong>of</strong> applying BSC to <strong>the</strong> IT area <strong>of</strong> <strong>the</strong> organization guides <strong>the</strong> identification <strong>of</strong>
components that are required in <strong>the</strong> design <strong>of</strong> <strong>the</strong> BSC for IDEA through <strong>the</strong> review <strong>of</strong> <strong>the</strong> purpose <strong>of</strong>
service and realization <strong>of</strong> benefits for <strong>the</strong> users.
Figure 1: Components <strong>of</strong> <strong>the</strong> balanced scorecard Kaplan and Norton (1996)
Knowledge management systems and operational performance
Liu and Tsai (2007) performed a study in high tech firms to identify <strong>the</strong> effect <strong>of</strong> KMS introduction on
operational performance, using a BSC approach. The results showed “..5% to 10% improvement in
performance in <strong>the</strong> customer, financial, and internal business process areas and a 10% to 15%
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Eduardo Rodriguez et al.
improvement in performance in learning and growth area.” These results in a sample <strong>of</strong> 560
managers <strong>of</strong> Taiwanese high companies suggest that <strong>the</strong> KMS contributes to <strong>the</strong> results <strong>of</strong> better
operational performance and <strong>the</strong> BSC supports <strong>the</strong> measurement <strong>of</strong> <strong>the</strong>se results. IDEA is a
knowledge organization, not technologically speaking but from <strong>the</strong> experience and tacit knowledge
flow. The connection between creating a simplified KMS that supports tacit and explicit knowledge
and <strong>the</strong> BSC could improve operational performance and mitigate strategic and operational risks.
4. Research project
The first step was to identify <strong>the</strong> problems that people perceived regarding knowledge management.
The approach to problems followed <strong>the</strong> steps in Table 3 leading to <strong>the</strong> understanding <strong>of</strong> mitigating
strategic and operational risks through better knowledge management.
Table 3: Steps in <strong>the</strong> organization analysis
Identification <strong>of</strong> Who <strong>the</strong>y are:
Identification <strong>of</strong> a knowledge Map for <strong>the</strong>
organization
Identification <strong>of</strong> clients: internal and
external
Identification <strong>of</strong> groups and processes,
roles and pr<strong>of</strong>iles <strong>of</strong> employees based on
knowledge and skills
What kind <strong>of</strong> information support <strong>the</strong>y have
Watching <strong>the</strong> operation through information
systems.
Identification <strong>of</strong> <strong>the</strong> content structure and
processes
Evaluation data structure and permanence
to an appropriate model
Communication, knowledge and decisions
Identification <strong>of</strong> <strong>the</strong> structure <strong>of</strong>
communication and <strong>the</strong> means
Connection between resources and
knowledge
Connection problems and making decisions
Connection between knowledge and
problems
Documentation – review <strong>of</strong> explicit knowledge
Review <strong>of</strong> <strong>the</strong> "knowledge map" in light <strong>of</strong> documents
identification-taxonomy
Review <strong>of</strong> operating manuals
Analysis <strong>of</strong> process documentation
Revision <strong>of</strong> <strong>the</strong> <strong>of</strong>ficial assessment models
Establish what metadata is needed and how it is working
Establish a classification <strong>of</strong> documents and types <strong>of</strong> knowledge
associated with <strong>the</strong> charges and process activities
Performance evaluation support
Identify metrics for monitoring performance <strong>of</strong> <strong>the</strong> system
(BSC)
Review <strong>of</strong> <strong>the</strong> portal to be implemented in parallel and
identification technologies to use
Prototypes and system: connecting <strong>the</strong> points
Assembly <strong>of</strong> prototypes to <strong>the</strong> website (in parallel)
Testing and revision <strong>of</strong> <strong>the</strong> prototypes
Transfer <strong>of</strong> knowledge in <strong>the</strong> s<strong>of</strong>tware testing process
Development <strong>of</strong> diagnosis (knowledge map)
Identification <strong>of</strong> <strong>the</strong> main components <strong>of</strong> <strong>the</strong> knowledge system
Design and implementation <strong>of</strong> a prototype system <strong>of</strong> knowledge
based on <strong>the</strong> mix <strong>of</strong> content management and interaction from
participants
Achieving <strong>the</strong> goal <strong>of</strong> improving productivity, including selftraining
in <strong>the</strong> culture <strong>of</strong> <strong>the</strong> organization
Define a methodology for <strong>the</strong> different responsibilities in <strong>the</strong>
procurement, maintenance, collaboration and dissemination <strong>of</strong>
content
Improving knowledge transfer capacity
Support and quality control <strong>of</strong> project development
Keeping <strong>the</strong> business assets <strong>of</strong> knowledge in current terms
Organize means <strong>of</strong> collaboration and support among members
<strong>of</strong> <strong>the</strong> organization.
Training and support Material Development
Approach for ga<strong>the</strong>ring data: The approach was: first, to meet <strong>the</strong> members <strong>of</strong> <strong>the</strong> teams <strong>of</strong> <strong>the</strong>
whole organization and share <strong>the</strong> objectives <strong>of</strong> <strong>the</strong> project and to open a dialogue around <strong>the</strong> issues
that arose. Second, <strong>the</strong> members <strong>of</strong> <strong>the</strong> teams were interviewed to search with <strong>the</strong>m for <strong>the</strong> answers
to <strong>the</strong> questions shown in Table 4. The questions were organized in four sections: demographic,
knowledge processes, ways to work, and relationships.
Table 4: Variables and questions used to ga<strong>the</strong>r <strong>the</strong> data
Demographic
Group Name
Members (pr<strong>of</strong>ile)
Objectives <strong>of</strong> <strong>the</strong> Group
Variables and Questions
Ways to work
Does your group have standardized
methodologies?
Does your group use <strong>the</strong> website?
How to overcome limitations in website?
What are <strong>the</strong> areas to learn / innovate?
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Knowledge Processes
Knowledge that your group owns
Experiences and skills that your group has
Problem-solving skills that your group has
Relevant knowledge that your group possesses
How to create knowledge in your group?
How to transfer your group knowledge to
o<strong>the</strong>rs?
How store and retrieve your group knowledge?
How apply your group knowledge?
In which areas should your group be better?
How can your group improve?
Eduardo Rodriguez et al.
Variables and Questions
What are <strong>the</strong> documents to know about?
Relationships
Who are your primary internal users?
Who are your external users?
What are <strong>the</strong> needs to be addressed?
What is <strong>the</strong> way(s) used to share results?
What o<strong>the</strong>r processes are used by your group?
What is <strong>the</strong> o<strong>the</strong>r group’s knowledge that your
group uses?
What are <strong>the</strong> similar groups in <strong>the</strong> organization?
The data ga<strong>the</strong>red was reorganized and classified according to <strong>the</strong> objectives <strong>of</strong> <strong>the</strong> area, knowledge <strong>of</strong>fer (by
IDEA) and knowledge demand, with suggestions for improvement (See Table 5).
Table 5: Summary <strong>of</strong> findings <strong>of</strong> suggested improvements
Voice <strong>of</strong> Customer - Suggested Improvements
Standardize all procedures, manuals and reports; develop knowledge management
Collaboration among groups in content development.
Integration between administrative and technical areas in terms <strong>of</strong> information and knowledge
Create culture <strong>of</strong> production <strong>of</strong> explicit knowledge (records, documents, articles or
summaries). Give access to information from <strong>the</strong> outside (web). Training for use <strong>of</strong> website
and intranet.
Integration <strong>of</strong> knowledge that is overlapped in programs. Example: victims, youth, heritage,
and even governance problems.
Develop a system to share, access, store experiences <strong>of</strong> <strong>the</strong> teams
Provide information <strong>of</strong> <strong>the</strong> status <strong>of</strong> projects and programs
Be connected with experts, o<strong>the</strong>r countries' people that have been involved in similar projects
Introduce virtual training supporting remote work
Improvement <strong>of</strong> communication between head <strong>of</strong>fice and people working remotly
Possibility to upload information, documents, communication with o<strong>the</strong>r external
applications
Overcome <strong>the</strong> oral culture better documentation process
Foster integration <strong>of</strong> systems
Convert web site static and central management into distributed and interactive
administration Portal and Intranet, to ensure internal and external communication flow.
Incorporate in Portal programs multimedia (radio, video) and RSS to encourage flow <strong>of</strong> news,
information and usability <strong>of</strong> web.
Process review and Knowledge map
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A knowledge map (Figure 2 and Table 7) was developed for understanding <strong>the</strong> organization based on
three elements:
Identification <strong>of</strong> <strong>the</strong> knowledge that <strong>the</strong> organization possesses and what <strong>the</strong> organization does..
Identification <strong>of</strong> <strong>the</strong> organizational processes that are in place, <strong>the</strong> knowledge available and <strong>the</strong>
knowledge gaps.
Identification <strong>of</strong> <strong>the</strong> knowledge <strong>of</strong>fer and demand, suppliers and consumers <strong>of</strong> knowledge.
Analysis <strong>of</strong> <strong>the</strong> data shows that <strong>the</strong> organization processes that are common to <strong>the</strong> programs/projects
can be summarized as:
Identification <strong>of</strong> needs and project feasibility – includes research and knowledge networks
development
Formulation <strong>of</strong> <strong>the</strong> project – definition <strong>of</strong> <strong>the</strong> potential program – includes analysis <strong>of</strong> best
practices and review <strong>of</strong> experience and knowledge in <strong>the</strong> field
Execution <strong>of</strong> <strong>the</strong> project – program development – project management and interaction among
organization members and intra-organizations
Internal program evaluation – associated cost and impact
Follow up <strong>of</strong> <strong>the</strong> program – auditing development
User program evaluation – user/beneficiaries satisfaction
IDEA performance evaluation – organization results for users/beneficiaries
Experience administration – learning and maintaining <strong>the</strong> experience
Communication – presentation <strong>of</strong> work done and future steps to <strong>the</strong> stakeholders
These above processes were identified with KM processes in order to guide <strong>the</strong> KMS design, and its
accessibility. (Table 6)
Table 6: Classification <strong>of</strong> <strong>the</strong> organization understanding according to <strong>the</strong> KM processes
The connection between <strong>the</strong> KM processes and <strong>the</strong> organizational processes is represented by <strong>the</strong>
knowledge map (Figure 2 and Table 7) that connect Offer and demand <strong>of</strong> knowledge
Table 7: Bases <strong>of</strong> <strong>the</strong> Knowledge Map
Know How?
Know What and Know Where?
Know Why?
433
Motivate processes
Apply project management procedures-cooperation
IDEA
Identify needs
Develop participation
• Develop communities
Political problems
Strategic Policy IDEA
Norms
Services to be provided
Information partners
Administrative Procedures
Motivation for cooperation
Terms / country circumstances
Action premises

Eduardo Rodriguez et al.
The following Table 8 presents <strong>the</strong> demand and <strong>the</strong> <strong>of</strong>fer <strong>of</strong> knowledge in <strong>the</strong> context <strong>of</strong> managing <strong>the</strong> programs
and <strong>the</strong> interaction <strong>of</strong> people within <strong>the</strong> programs and among programs and administrative areas.
Table 8: Knowledge map: summary <strong>of</strong> <strong>of</strong>fer and demand <strong>of</strong> knowledge
Know what
<strong>the</strong>y have
Know what
<strong>the</strong>y do
Know How,
Where,Why
Knowledge
Sources
Basic Processes:
Competencies
Identification Formulation Execution
Knowledge Map IDEA
IDEA
Mandate
Know How
Internal
Program
Evaluation
Cooperation
Instruments
Organization
Structure and
systems
Follow up
Products/docu
ments
User
Program
Evaluation
Documents,
Specialists,
IDEA
performance
evaluation
Know Where Know Why
Experiences
to share
Stages learning
and
development
Experience
administration Communication
Figure 2: Knowledge map: relationship between organizational process and knowledge sources and
users
5. Knowledge management system as mitigator <strong>of</strong> strategic and operational
risks
We have identified various aspects that can affect <strong>the</strong> performance <strong>of</strong> IDEA: <strong>the</strong> diversity <strong>of</strong> programsprojects
that <strong>the</strong> organization has, <strong>the</strong> reduced number <strong>of</strong> staff to control processes and <strong>the</strong>
implications <strong>of</strong> a potential reduced capacity to deliver a good service to <strong>the</strong> users and beneficiaries,
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Eduardo Rodriguez et al.
which increment risk position. The improvement <strong>of</strong> <strong>the</strong> intranet, used as a knowledge management
portal, and training related to sharing knowledge were <strong>the</strong> proposed pillars for mitigating strategic and
operational risks. The use <strong>of</strong> an internal network and participation <strong>of</strong> people in <strong>the</strong> evaluation <strong>of</strong> <strong>the</strong>
process <strong>of</strong> IDEA continuous improvement was identified as a means to proceed with IDEA
performance evaluation.
Identification <strong>of</strong> Strategic and Operational risks for IDEA
The interviews that were performed identified <strong>the</strong> problems <strong>of</strong> <strong>the</strong> organization as follows:
Strategic Risk
To understand strategic risk <strong>the</strong> concepts that were presented by Slywotzky and Drzik (2005) were
adapted to social organizations: Industry margin squeeze was identified as difficulty <strong>of</strong> access to
government funds, technology shift as process and technology support to <strong>the</strong> changes in <strong>the</strong>
community needs, brand erosion as reduced reputation, competitor’s strengths as <strong>the</strong> strengths <strong>of</strong>
o<strong>the</strong>r cooperation organizations working with similar or equal groups and purposes, customer priority
shift as <strong>the</strong> user/beneficiaries value shifts, new project failure as reduced adequacy <strong>of</strong> project
development for <strong>the</strong> specific group, and market stagnation as user/beneficiaries stagnation. Based on
<strong>the</strong>se points and <strong>the</strong> work <strong>of</strong> Young and Hasler (2010) for <strong>the</strong> analyzed organization <strong>the</strong> strategic risk
would be represented by <strong>the</strong> following:
Reputation: The organization has goals to achieve that involve responsibilities with three main
stakeholders: <strong>the</strong> international organization that is supported by <strong>the</strong> government <strong>of</strong> <strong>the</strong> originating
country, <strong>the</strong> country where <strong>the</strong> organization is working (in this case Colombia), and <strong>the</strong> users and
beneficiaries <strong>of</strong> <strong>the</strong> programs and projects.
Trust: Comprises two main aspects: reliability and credibility (Maister et al. 2000). Reliability is
identified in <strong>the</strong> sense that <strong>the</strong> local country can be confident that <strong>the</strong> programs are supporting areas
where <strong>the</strong> local country is not able to act to solve community problems. Credibility is identified in <strong>the</strong>
sense that <strong>the</strong> organization has <strong>the</strong> expertise to accomplish <strong>the</strong> responsibilities that <strong>the</strong> local
government and users expect to be performed.
Funding: There are limited funds around <strong>the</strong> world for development organizations. The reduction <strong>of</strong>
budget and access to resources can be a barrier to developing and finishing projects.
Organizational adaptation to changes: Changes that appear from new country’s regulation,
organizational morale and internal adoption <strong>of</strong> new government’s requests. The strategy to be
adopted by <strong>the</strong> organization for <strong>the</strong> coming years is under construction. As such, it must be assumed
as a constraint. It is required to initiate an awareness-raising <strong>of</strong> <strong>the</strong> corporate culture that is expected
and desired. It is important to create and maintain over time an environment for developing staff
competencies (knowledge, attitudes and skills) to ensure <strong>the</strong> success <strong>of</strong> projects, even with new
members <strong>of</strong> IDEA. The work on <strong>the</strong> organizational culture must be maintained over time to take effect.
Operational Risk
Effectiveness: Self-confidence <strong>of</strong> <strong>the</strong> different teams is great. However, <strong>of</strong>ficials report that <strong>the</strong> daily
work does not leave much time for fundamental processes <strong>of</strong> knowledge management: nei<strong>the</strong>r
knowledge creation nor <strong>the</strong> actions or process tips are recorded or documented nor is systematization
<strong>of</strong> experiences done. It seems that <strong>the</strong>re are only progress reports and final project presentations, no
supported storage in intranet or on <strong>the</strong> Web (which can be public), to share knowledge with o<strong>the</strong>r
teams, and ensure implementation at different levels (not only in <strong>the</strong> area where it was created). The
silo culture has increased.
User/beneficiary satisfaction: There are different kinds <strong>of</strong> users: communities and external
organizations that are involved in <strong>the</strong> programs. They can be public or private. The volume <strong>of</strong>
document exchange is high and <strong>the</strong> subjects very diverse. The contacts with organizations are also
diverse. The interviews show in <strong>the</strong> knowledge demand section <strong>the</strong> need for improvement regarding
<strong>the</strong> users-beneficiaries.
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Efficiency <strong>of</strong> resource use
Eduardo Rodriguez et al.
One <strong>the</strong> limitations in <strong>the</strong> NGO operation is <strong>the</strong> budget and <strong>the</strong> access to resources. The good
management <strong>of</strong> <strong>the</strong> resources is a priority in order to relax <strong>the</strong> operation and to accomplish <strong>the</strong>
proposed goals. There is a challenge in managing resources given <strong>the</strong> nature <strong>of</strong> <strong>the</strong> activities and
interaction with <strong>the</strong> users. A poor resource management can jeopardize <strong>the</strong> service delivery. (See
Table 9 <strong>the</strong> main areas to take care in efficiency improvement)
Table 9: Summary <strong>of</strong> risks in operations and bases <strong>of</strong> efficiency improvement
Lack <strong>of</strong> knowledge
Information and documents are produced in a high volume mainly associated with <strong>the</strong> government
related organizations. However, <strong>the</strong>ir production and distribution are not standardized, <strong>the</strong>ir storage is
very time consuming and retrieval is difficult. Collaboration: Inter-area work and networking with users
is small and informal. It should be facilitated and systematized. This is without doubt <strong>the</strong> area where
people are looking for solutions. Although <strong>the</strong>re is interaction <strong>the</strong> experience is not recorded, stored,
shared and communicated in a formal and systematic way.
Training: Given <strong>the</strong> time constraints for training, it has been through basic virtual training and learning
by doing in practice.
Knowledge Portal design as a KMS
The problem identification and <strong>the</strong> knowledge map led to <strong>the</strong> design <strong>of</strong> a KMS for connecting explicit
and tacit knowledge with performance evaluation. Four main elements contribute to <strong>the</strong> design:
Using <strong>the</strong> knowledge map through meetings <strong>of</strong> concept validation and training to identify who
knows what and how <strong>the</strong>y can support o<strong>the</strong>r processes. For example a person who is an
environmentalist but working in a project with a community can be part <strong>of</strong> <strong>the</strong> support for o<strong>the</strong>r
programs that require solutions to environmental issues. Because <strong>of</strong> <strong>the</strong> expertise <strong>of</strong> different
people working only for some programs <strong>the</strong> internal social network and data for registration
provide <strong>the</strong> connection.
Based on <strong>the</strong> organization processes, documentation taxonomy and defined metadata, <strong>the</strong>
organization can share experiences and reports <strong>of</strong> projects in order to improve o<strong>the</strong>r practices
within <strong>the</strong> organization
The measurement is part <strong>of</strong> <strong>the</strong> system based on <strong>the</strong> data that is coming from <strong>the</strong> perception
survey <strong>of</strong> <strong>the</strong> members <strong>of</strong> <strong>the</strong> organization (See Tables 5-1 to 5-4). This survey is expected to be
repeated at least once per year. Risk will be measured as <strong>the</strong> variation <strong>of</strong> <strong>the</strong> results <strong>of</strong> <strong>the</strong> survey
taken at different times. The survey contains KM Processes, BSC components and
Organizational Processes variables.
Supporting <strong>the</strong> change <strong>of</strong> <strong>the</strong> organization´s processes using <strong>the</strong> portal technology in order to
support <strong>the</strong> programs and projects.
Principles for creating and using <strong>the</strong> new portal reduce <strong>the</strong> fear and look for answers to <strong>the</strong>
operational and strategic risks detected. The portal is user content creation and interaction driven.
The approach was to simplify <strong>the</strong> taxonomy <strong>of</strong> documents, provide access to resources and to
empower <strong>the</strong> users for direct interaction in updating and sharing content. This means that <strong>the</strong> user will
be <strong>the</strong> owner <strong>of</strong> <strong>the</strong> work area in <strong>the</strong> KMS and is identified as responsible for keeping <strong>the</strong> documents
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Eduardo Rodriguez et al.
updated using <strong>the</strong> metadata that were predefined. The main menu <strong>of</strong> <strong>the</strong> solution was based on 7
components:
Section to upload documents where people interact with <strong>the</strong> system and acting as a general
repository that can be filtered using <strong>the</strong> metadata structure.
Basic Documents section: contains institutional material: international headquarters documents,
documents about Colombia and <strong>the</strong> publications <strong>of</strong> IDEA as well as general interest, statistics and
o<strong>the</strong>r organizational documents.
Resources section: contains folders for archiving documents, manuals and procedures,
directories, formats and folder tree (<strong>the</strong> latter is an option that shows, in successive levels, all
subfolders <strong>of</strong> <strong>the</strong> repository or files. In total: 357 folders).
Services section: administrative content regarding personal management, vacation or internal
resources use. Work documents: documents <strong>of</strong> <strong>the</strong> daily work classified by programs <strong>of</strong> IDEA.
Evaluation tools: Focus on BSC, web and network use
Social networking: oriented to knowledge sharing across <strong>the</strong> programs and search for experts
This basic structure ra<strong>the</strong>r than a centralized process <strong>of</strong> documentation and interaction supports <strong>the</strong>
strategic and operational risk mitigation. People need to keep <strong>the</strong> documents updated and follow
standards in order to show a single organized face to stakeholders. The most important step is <strong>the</strong>
motivation to break <strong>the</strong> silo culture. The reason is that <strong>the</strong> reputation, trust and potentially funding
could be jeopardized if <strong>the</strong>re is not a change in <strong>the</strong> mind-sets and behaviours. The mitigation <strong>of</strong>
operational risk can be improved through: better documentation and access to explicit knowledge,
contact with experts in various areas and <strong>the</strong> use <strong>of</strong> <strong>the</strong> internal social network to exchange personal
and pr<strong>of</strong>essional interests. Operations are supported by <strong>the</strong> organization <strong>of</strong> <strong>the</strong> documentation based
on organizational processes and programs-projects that is natural for <strong>the</strong> members <strong>of</strong> IDEA. The
search for improvement and risk mitigation led to <strong>the</strong> identification <strong>of</strong> <strong>the</strong> factors that should be
measured in <strong>the</strong> BSC (See Figure 3). A basic strategic map (Figure 4) shows how <strong>the</strong> interaction <strong>of</strong>
areas will be and which <strong>the</strong> input should be to achieve <strong>the</strong> final desired result <strong>of</strong> better value delivery
to <strong>the</strong> communities and o<strong>the</strong>r stakeholders.
Figure 3: BSC Components adaptation <strong>of</strong> <strong>the</strong> Kaplan and Norton Model
The BSC and strategic map (Figure 4) put <strong>the</strong> user-beneficiaries as <strong>the</strong> top level, <strong>the</strong> level where <strong>the</strong>
organization’s efforts have to converge. Resources and internal processes are <strong>the</strong> filters and bottle
neck for <strong>the</strong> organization development due to <strong>the</strong> implementation <strong>of</strong> new head <strong>of</strong>fice policies.
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Figure 4: Bases <strong>of</strong> <strong>the</strong> strategic map that guides <strong>the</strong> RM process
The selected measurement system for <strong>the</strong> BSC blended with KM processes and business processes
is based on a BSC survey (See Tables 10 to 13). The structure <strong>of</strong> <strong>the</strong> survey is: Objectives <strong>of</strong> <strong>the</strong> KM
program by KM process and each one related to <strong>the</strong> BSC components. Each BSC component is
divided into specific items as presented in Figure 4.
Table 10: Objective 1 knowledge creation and <strong>the</strong> BSC components
General
Objectives
for <strong>the</strong> KM
program
The IDEA team in
Colombia develops <strong>the</strong>
documentation <strong>of</strong>
experiences, promotes
<strong>the</strong> innovation culture,
and search for processprogram
solutions in line
with <strong>the</strong> guidelines <strong>of</strong> <strong>the</strong>
Head Office Master Plan.
Knowledge Management
Processes and BSC
IDEA Processes
Knowledge Creation
People Development and Learning
Promote <strong>the</strong> search <strong>of</strong> new solutions to benefiaciaries' problems 5 1 1 1 1 1 1 1 12
Foster <strong>the</strong> staff participation in problem solutions 5 5 5 5 5 5 5 5 40
Foster <strong>the</strong> execution <strong>of</strong> new solutions 5 5 5 5 5 5 5 5 40
SUBTOTAL
Internal Processes
Promote <strong>the</strong> use <strong>of</strong> Intranet for new knowledge creation 5 5 5 5 5 5 5 5 40
Promote a continuous innovation process 5 5 5 5 5 5 5 5 40
Foster new solutions 5 5 5 5 5 5 5 5 40
SUBTOTAL
Resources and Legal Framework
Foster <strong>the</strong> improvement <strong>of</strong> resource allocation and operation IDEA 5 5 5 5 5 5 5 5 40
Promote <strong>the</strong> understanding <strong>of</strong> legal framework 5 5 5 5 5 5 5 5 40
Support for time execution in project 5 5 5 5 5 5 5 5 40
SUBTOTAL
Users - Beneficiaries
Promote <strong>the</strong> improvement <strong>of</strong> effectiveness <strong>of</strong> actions to support users 5 5 5 5 5 5 5 5 40
Promote methodology improvement for projects and program dev. 5 5 5 5 5 5 5 5 40
Promote users participation to find answers and solutions to problems 5 5 5 5 5 5 5 5 40
SUBTOTAL
120
438
Identification
Indicate 1=Deficient, 2=Insuficient,3=Acceptable
4=Satisfactory, 5=Outstanding
Formulation
IDEA performance
Execution
Follow up
92
120
120
Program evaluation
Comunications
Experience Management
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Eduardo Rodriguez et al.
Table 11: Objective 2 knowledge storage and retrieval and <strong>the</strong> BSC components
The IDEA team in
Colombia uses
predesigned formats,
uses <strong>of</strong> Intranet for filing
and consultation <strong>of</strong>
documents. Management
<strong>of</strong> <strong>the</strong> documentation
process.
Knowledge Storage and Retrieval
People Development and Learning
The use <strong>of</strong> documents and information stored is suitable 5 5 5 5 5 5 5 5 40
The volume <strong>of</strong> documents uploaded to <strong>the</strong> Intranet is appropriate 5 5 5 5 5 5 5 5 40
The volume <strong>of</strong> documents consulted in <strong>the</strong> Intranet is appropriate 5 5 5 5 5 5 5 5 40
SUBTOTAL
Internal Processes
The existing technology supports <strong>the</strong> creation new solutions to problems 5 5 5 5 5 5 5 5 40
Access to documents is easy 5 5 5 5 5 5 5 5 40
The process to access information is adequate 5 5 5 5 5 5 5 5 40
SUBTOTAL
Resources and Legal Framework
The budget data are comparable in different time periods 5 5 5 5 5 5 5 5 40
The control structure <strong>of</strong> budgetary data is adequate 5 5 5 5 5 5 5 5 40
The budget structure encourages <strong>the</strong> creation <strong>of</strong> new solutions for users 5 5 5 5 5 5 5 5 40
SUBTOTAL
Users - Beneficiaries
The shared analysis <strong>of</strong> beneficiaries´ needs encourages new solutions approach 5 5 5 5 5 5 5 5 40
User information is easily accessible in filed documents 5 5 5 5 5 5 5 5 40
Users participate actively in identifying and implementing solutions 5 5 5 5 5 5 5 5 40
SUBTOTAL
120
Table 12: Objective 3 knowledge transfer and <strong>the</strong> BSC components
The IDEA team in
Colombia uses <strong>the</strong>
interactive tools available
on <strong>the</strong> Intranet improving
collaborative and
coordinated work among
<strong>the</strong> various functional
areas.
Knowledge Transfer
People Development and Learning
Our partners are willing to share knowledge 5 5 5 5 5 5 5 5 40
Meetings to discuss collaboration solutions are appropriate 5 5 5 5 5 5 5 5 40
Activities which promote knowledge are appropriate to share 5 5 5 5 5 5 5 5 40
SUBTOTAL
Internal Processes
The use <strong>of</strong> systems for working with o<strong>the</strong>r people is appropriate 5 5 5 5 5 5 5 5 40
The technology for inter-communication and collaboration is adequate 5 5 5 5 5 5 5 5 40
Today's technology helps us achieve better results 5 5 5 5 5 5 5 5 40
SUBTOTAL
Resources and Legal Framework
Training for use <strong>of</strong> resources is adequate 5 5 5 5 5 5 5 5 40
The financial resources to support knowledge transfer are adequate 5 5 5 5 5 5 5 5 40
The execution <strong>of</strong> <strong>the</strong> budgets to support joint work is appropriate 5 5 5 5 5 5 5 5 40
SUBTOTAL
Users - Beneficiaries
Collaboration among groups adequately supports users 5 5 5 5 5 5 5 5 40
Better resource use for undertanding more <strong>the</strong> organization 5 5 5 5 5 5 5 5 40
Knowledge sharing with o<strong>the</strong>r staff and users is appropriate 5 5 5 5 5 5 5 5 40
SUBTOTAL
120
Table 13: Objective 4 knowledge application and <strong>the</strong> BSC components
Knowledge Application
People Development and Learning
The interest <strong>of</strong> employees in applying knowledge is adequate 5 5 5 5 5 5 5 5 40
The application <strong>of</strong> knowledge is timely 5 5 5 5 5 5 5 5 40
Institutional conditions are suitable to apply knowledge 5 5 5 5 5 5 5 5 40
The IDEA team in
Colombia designs
SUBTOTAL
120
Internal Processes
operational plans for <strong>the</strong>
Existing technology promotes <strong>the</strong> application <strong>of</strong> knowledge
early implementation <strong>of</strong> Business processes encourage <strong>the</strong> application <strong>of</strong> knowledge
<strong>the</strong> results <strong>of</strong> cooperation The ability to change and process improvement is adequate
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
40
40
40
service, identification <strong>of</strong>
SUBTOTAL
120
opportunities for
solutions and
improvement. Develop
Resources and Legal Framework
Incentives for application <strong>of</strong> knowledge are appropiate
The project implementation capacity improved through <strong>the</strong> application <strong>of</strong> knowledge
The resources devoted to apply <strong>the</strong> knowledge to do a better job are adequate
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
40
40
40
<strong>the</strong> learning process
SUBTOTAL
120
across <strong>the</strong> organization.
Users - Beneficiaries
The accumulated knowledge in <strong>the</strong> institution supports <strong>the</strong> users very well 5 5 5 5 5 5 5 5 40
The ability to develop new projects and solutions is getting better 5 5 5 5 5 5 5 5 40
The implementation <strong>of</strong> institutional knowledge to solve problems is adequate 5 5 5 5 5 5 5 5 40
SUBTOTAL
120
Total 240 236 236 236 236 236 236 236 1892
The accumulated scores <strong>of</strong> answers to <strong>the</strong> BSC survey were <strong>the</strong> guide to identifying areas <strong>of</strong>
improvement and to measuring <strong>the</strong> variance against <strong>the</strong> goals. The structure <strong>of</strong>fers three levels <strong>of</strong>
objectives definition: KM, BSC components and organization processes. The accumulation <strong>of</strong> scores
is taken for example by items <strong>of</strong> knowledge creation, or for <strong>the</strong> people development and learning
component <strong>of</strong> <strong>the</strong> BSC. The IDEA process index is <strong>the</strong> accumulation <strong>of</strong> <strong>the</strong> values by columns (See
Table 14).
439
120
120
120
120
120
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Eduardo Rodriguez et al.
Table 14: Points composition and variance evaluation with respect to time measures as a measure <strong>of</strong>
risk
Bases for objectives generation BSC index bases
KM processes Bases BSC
Knowledge Creation 452
Knowledge Storage and
Retrieval
Knowledge Transfer 480
Variance Variance
KM BSC
IDEA Processes Index Variance IDEA Proc.
Identification
Formulation
Valuation
Execution
Follow up
Program Evaluation
Communications
People learning
and development
452
480 Internal Processes 480
Resources and
legal framework
480
Knowledge Application 480 Users-Beneficiaries 480
Experience Automation
The implementation <strong>of</strong> <strong>the</strong> measurement system is through pages that are presented using chained
menus for <strong>the</strong> BSC components, <strong>the</strong> KM processes and <strong>the</strong> access to and retrieval <strong>of</strong> documents
(document management). (See Figure 5)
Figure 5: Objectives <strong>of</strong> KM implementation based on chained menus
The KMS introduction, based on KM and RM principles, was through training sessions, discussions
and promotion <strong>of</strong> ideas exchange for improvement. The general evaluation <strong>of</strong> <strong>the</strong> final training
sessions (See Table 15) shows that <strong>the</strong> groups found that <strong>the</strong> new way to work and use <strong>the</strong> intranet
will support <strong>the</strong>ir work and feel that <strong>the</strong> application in <strong>the</strong>ir daily activities will be possible. The
reinforcement in practice is part <strong>of</strong> <strong>the</strong> learning process and <strong>the</strong> observation <strong>of</strong> getting a new set <strong>of</strong>
mind-sets and behaviours opens <strong>the</strong> expectation <strong>of</strong> consolidating <strong>the</strong> process <strong>of</strong> KM and RM analysis
and support for better value delivery.
440
240
236
236
236
236
236
236
236

Training evaluation
Eduardo Rodriguez et al.
Group 1 Group 2
Group 3 Group 4
Yes NO Yes NO Yes NO Yes NO
% % % % % % % %
The course makes my work easier 100 0 100 0 88.9 11.1 85.7 14.3
I can apply this new knowledge to my work 100 0 100 0 100 0 100 0
The training provided me <strong>the</strong> tools for performing my work 100 0 100 0 62.5 37.5 100 0
I will apply what I learnt to my work 100 0 94.4 5.6 100 0 100 0
What I learnt produced new mindsets and behaviors 100 0 52.9 47.1 66.7 33.3 75.0 25.0
I need to reinforce what I learnt 75 25 89.5 10.5 100 0 100 0
Table 15: Evaluation <strong>of</strong> <strong>the</strong> training that guides <strong>the</strong> perception <strong>of</strong> <strong>the</strong> new system
6. Conclusion
This article has presented <strong>the</strong> steps to develop a KM program and to design a KMS in a cooperation
organization. The analysis has identified two risks to concentrate on: strategic risk and operational
risk. In this kind <strong>of</strong> organization <strong>the</strong> knowledge asset is <strong>the</strong> most important and <strong>the</strong> source <strong>of</strong>
producing <strong>the</strong> mandated solutions. The issues related to organization, management <strong>of</strong> people,
documents etc. are converted into risks. These risks affect <strong>the</strong> work flow and <strong>the</strong> service delivery.
IDEA required a simplification <strong>of</strong> <strong>the</strong> processes to use what <strong>the</strong>y know in order to mitigate risks –
changing <strong>the</strong> way <strong>of</strong> tracking value realization <strong>of</strong> <strong>the</strong> programs. Three subsystems based on portals
were introduced: document management systems as a repository, access to and storage <strong>of</strong> explicit
knowledge; social network as a collaboration tool; and a measurement subsystem as a means to
continuous development through objectives definition and a guide to measure risk as variance <strong>of</strong>
expected results through time.
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442

The Role <strong>of</strong> Knowledge Hierarchy Within <strong>the</strong> OLCs: Critical
Success Stories <strong>of</strong> Turkish Cypriot Firms
Mustafa Sağsan and Ahmet Ertugan
Near East University, Nicosia, Turkish Republic <strong>of</strong> Nor<strong>the</strong>rn Cyprus
msagsan@gmail.com
ahmetertugan@ymail.com
Abstract: Knowledge hierarchy plays an important role within <strong>the</strong> organizational life cycle models (OLC) with
regard to determining <strong>the</strong> right strategy for growing. One criterion for a successful past performance in rapidly
growing firms in any industry depends on <strong>the</strong> ability to follow a strategy <strong>of</strong> differentiation based on using <strong>the</strong> same
knowledge hierarchical model: physical process, data, information, knowledge and wisdom. This study tries to
understand <strong>the</strong> questions as: what does determine <strong>the</strong> successful past performance <strong>of</strong> firms in terms <strong>of</strong> OLCs?
How can firms analyze <strong>the</strong> knowledge hierarchical stages based on <strong>the</strong>ir capabilities in growing rapidly? In order
to find out appropriate answers to <strong>the</strong>se questions, owners/managers from 17 different firms’ were approached
for unstructured, in-debt interviews in <strong>the</strong> Turkish Republic <strong>of</strong> Nor<strong>the</strong>rn Cyprus. There are eights categories that
allow companies to rapidly grow and <strong>the</strong> findings depicted that; each firm had a different past performance
success history. For example, <strong>the</strong>y analysed <strong>the</strong> knowledge hierarchy separately and <strong>the</strong>y expanded <strong>the</strong>ir
structural networks to reach more customers and suppliers in <strong>the</strong> market. In conclusion, every firm creates its
own knowledge absorption capacity based on <strong>the</strong> knowledge hierarchy to have a critical past performance
success history through following <strong>the</strong> same OLC stages.
Keywords: organizational life cycle, knowledge hierarchy, growth model, rapidly growing firms, Turkish Republic
<strong>of</strong> Nor<strong>the</strong>rn Cyprus
1. Introduction
The literature on organizational life cycle models (OLCMs) covers <strong>the</strong> revolutionary change process
as well as dividing <strong>the</strong> organisational life cycle into stages. “There are at least four broad categories <strong>of</strong>
organizational change models: evolutionary stage, metamorphosis, and OLC” (Baird and Meshoulam,
1988). In this study, we focus on <strong>the</strong> stages <strong>of</strong> OLC models as our basic research questions require
highlighting <strong>the</strong> importance <strong>of</strong> <strong>the</strong> OLCMs. Quinn and Cameron (1983) summarize this literature by
classifying <strong>the</strong>m into <strong>the</strong> nine categories (Adizes, 1979; Kimberly, 1979; Torbert, 1974; Lyden, 1975;
Downs, 1967; Lippitt and Schmidt, 1967; Scott, 1971; Greiner, 1972 and Katz and Kahn, 1978). Each
model reflects its own perspective within <strong>the</strong> private and public sector through different topics such as
motivation, critical managerial concerns, strategy and structure, revolutionary and evolutionary
organizational change, and attitudes <strong>of</strong> members, functional problems, social control and
environmental relations. This study interrogates firms’ rapidly growth strategies in terms <strong>of</strong> OLCMs
and aims at underlying <strong>the</strong> enablers and disablers which let firms to move from previous stage to <strong>the</strong>
next stage. Fur<strong>the</strong>rmore, <strong>the</strong> question on how knowledge hierarchy plays role for rapidly growing in
<strong>the</strong> OLCMs is also important in this study. Briefly, <strong>the</strong> research question <strong>of</strong> <strong>the</strong> study is: what are <strong>the</strong>
essential initiators for rapidly grown firms when <strong>the</strong>y have capability <strong>of</strong> using knowledge hierarchical
model? Only a few studies integrate <strong>the</strong> knowledge needs with OLCMs (Phelps, Adams and Bessant,
2007), unfortunately <strong>the</strong>re is no empirical evidence in <strong>the</strong> organizational and knowledge management
literature that integrates OLCM with knowledge hierarchy. Hence, this study tries to fill <strong>the</strong> gap
between <strong>the</strong>se two important topics. Turning information into knowledge could gain distinctive
competencies for rapidly grown firms in changing <strong>the</strong> stages in <strong>the</strong> OLCMs. Therefore, <strong>the</strong> next
section gives details on OLCMs.
2. Organizational Life Cycle Models
OLCMs are central to <strong>the</strong> investigation <strong>of</strong> organizational changes. Moreover, <strong>the</strong> studies which
indicate <strong>the</strong> early development <strong>of</strong> organizations, predict <strong>the</strong> major problems, decisions and
opportunities <strong>of</strong> organizations going through <strong>the</strong> life-cycle stages. The major problem in analysing
OLCMs with <strong>the</strong> perception <strong>of</strong> knowledge hierarchy is that, it enables us to create a better
understanding on how rapidly growing firms turn information into knowledge except for <strong>the</strong> tangible
assets, which are necessary for every developmental stage in organizational change. Organizations’
past behaviours, performances, stories, visions, missions, <strong>the</strong> best and <strong>the</strong> worst practices are some
<strong>of</strong> <strong>the</strong> evidence that help us to understand <strong>the</strong> OLC stages. For this reason, longitudinal studies can
be applied to measure <strong>the</strong> OLC that includes “birth, growth, maturity and sometimes decline.
According to OLCMs, an organization must move through one stage before proceeding to <strong>the</strong> next.”
(Milliman, Glinow and Nathan, 1991: 327). Life cycle stages have been used as a contingency
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variable to study <strong>the</strong> changes necessary for <strong>the</strong> planning and performance <strong>of</strong> small business (Lindsay
and Rue, 1980). The degree <strong>of</strong> formalization, centralization, pr<strong>of</strong>essionalization, specialization, and
complexity are some <strong>of</strong> <strong>the</strong> contingency variables which play important role within <strong>the</strong> OLCMs.
Most <strong>of</strong> <strong>the</strong> previous models have included diversifying <strong>the</strong> number <strong>of</strong> life cycles stages. For example,
according to Dodge and Robbins (1992), formation is <strong>the</strong> first stage <strong>of</strong> OLC and focuses on turning a
venture or idea into a business entity. The second stage is called early growth and <strong>the</strong> business
establishes itself through strong, positive growth with a commercially feasible product or marketing
approach. Later, growth is <strong>the</strong> third stage <strong>of</strong> OLC and aims at filling <strong>the</strong> gap between active market
and <strong>the</strong> total potential market. The fourth or last stage <strong>of</strong> OLC refers to stability. The company tries to
establish small bureaucratic system.
Downs (1967) emphasizes <strong>the</strong> topic <strong>of</strong> motivation for growth and divides OLC into <strong>the</strong> three stages,
called (1) struggle for autonomy, (2) rapid growth and (3) deceleration. The first stage provides
autonomy from parents; stabilizes resources and tries to survive by focusing on <strong>the</strong> external
environment. The second stage emphasizes on innovation and expansion. The third stage increases
<strong>the</strong> size and complexity and elaborates role system by reducing flexibility.
Scott (1971) also argues for an OLC in three stages: Stage 1 includes paternalistic reward system
and subjective evaluation criteria. Stage 2 contains institutionalized procedures, formalized structure,
and functional specialization. Stage 3 focuses on <strong>the</strong> diversified markets, searching for new products
and growth opportunities and semi-autonomous divisionalized structure.
Greiner (1972) pays attention to <strong>the</strong> evolutionary approach for <strong>the</strong> OLCMs and develops a five stage
model as (1) creativity, (2) direction, (3) delegation, (4) coordination, (5) collaboration. For Katz and
Kahn (1978), <strong>the</strong> organisational structure dictates that OLC is divided into three stages: (1) Primitive
system entails to cooperate with endeavours based on common needs and expectations <strong>of</strong> members.
Stable organization constructs coordination, formalization and authority systems, rule enforcement,
and maintenance. Elaborative supportive structures organize adaption systems among o<strong>the</strong>r systems
such as institutional relations, procurements, and disposal.
According to Quinn and Cameron (1983), <strong>the</strong>re are four stages within <strong>the</strong> OLC. In sequence, <strong>the</strong>se
are <strong>the</strong> entrepreneurial, collectivity, formalization and control stage, and <strong>the</strong> elaboration <strong>of</strong> structure
stage. Resource allocation, little planning and coordination, formation <strong>of</strong> a niche, and some <strong>of</strong>
entrepreneurial activities take place during <strong>the</strong> entrepreneurial stage. There are informal
communications and structures, sense <strong>of</strong> collectivity, long hours spent, sense <strong>of</strong> mission, innovation
and a high commitment during <strong>the</strong> collectivity stage. The rules are formalized and <strong>the</strong> structures are
stabilized in <strong>the</strong> third stage. Organizations create conservatism and high commitment with
institutionalized procedures in <strong>the</strong> formalization stage. The last stage indicates decentralization
process as well as renewal and conformity in structure. Downsizing, deceleration and domain
expansion are <strong>the</strong> main characteristics <strong>of</strong> <strong>the</strong> final stage that shape <strong>the</strong> organization. This model
creates a better understanding on OLCMs, because it summarizes <strong>the</strong> general characteristics <strong>of</strong>
leadership styles, culture, and <strong>the</strong> structure <strong>of</strong> organizations which are more useful to know in relation
to <strong>the</strong> knowledge hierarchical system.
3. The hierarchy <strong>of</strong> knowledge
For beginners, knowledge hierarchy (k-h), a very well known topic, plays a fundamental role within <strong>the</strong>
knowledge management literature, because <strong>the</strong> differences among physical process data,
information, knowledge and wisdom are <strong>the</strong> essential necessities for understanding <strong>the</strong> discipline and
practices <strong>of</strong> <strong>the</strong> field <strong>of</strong> knowledge management. There are a lot <strong>of</strong> studies on K-H (Zins, 2007; Harsh,
2007; Tuomi, 2000, Walz, 1998, Sagsan, 2010) based on interdisciplinary perspectives. Most <strong>of</strong> <strong>the</strong>m
begin with explaining <strong>the</strong> stages from data to wisdom. However, Sagsan’s (2010) typology includes
five incremental stages sequentially: physical process, data, information, knowledge, wisdom. (See
Figure 1)
According to <strong>the</strong> Figure 1, physical process comes from human needs. When individuals try to find a
mean to satisfy <strong>the</strong>ir needs, <strong>the</strong>y begin to scan <strong>the</strong>ir internal and external environments by collecting
data. Data could be defined as <strong>the</strong> raw material collected from <strong>the</strong> environment through scanning
based on our needs and desires. After collecting data, we are providing information, which could be
defined as collected and classified data in terms <strong>of</strong> individual needs. Information is everywhere and
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Mustafa Sağsan and Ahmet Ertugan
easily reached. It can be turned into knowledge depending on individual skills, abilities, values,
beliefs, norms, etc. Therefore, knowledge is one <strong>of</strong> <strong>the</strong> most valuable intangible assets in
organizations. If an organization has <strong>the</strong> capability <strong>of</strong> transforming information into knowledge, it can
<strong>the</strong>n gain competitive advantage as well as <strong>the</strong> ability to move from one stage to <strong>the</strong> next one.
Knowledge can be evaluated subjectively as opposed to information, which could be located within
<strong>the</strong> technological systems ontologically. An organization’s wisdom capacity depends on absorbing
and experiencing knowledge, which enable <strong>the</strong> company to move to <strong>the</strong> next stage.
OBJECTIVITY SUBJECTIVITY
KNOWLEDGE
INFORMATION
PHYSICAL PROCESS
Stages
WISDOM
DATA
Figure 1: Knowledge Hierarchy based on <strong>the</strong> epistemological and ontological dimensions
Source: Sağsan, M and Yücel ,R. (2010) “Bir Disiplin Olarak Bilgi Yönetimi ve Eğitimi=Knowledge
Management and Its Education as a Discipline”, Bilgi Yönetimi Disiplini ve Uygulamaları: Kamu
Kurumlarından Örneklerle=Knowledge Management Discipline and Application: Cases for Public
Organizations, in pp.13-34 (Editor Mustafa Sağsan), Ankara: Siyasal Kitabevi. (The stages were
adapted form E.Walz, Information Warfare: Principles and Operations, London, Artech House, 1998,
s.56.)
In <strong>the</strong> final stage, <strong>the</strong> organization ensures that <strong>the</strong>re are competitive advantages, competencies, and
innovative activities. In addition, <strong>the</strong>y should be strong to overcome problems that come from <strong>the</strong>
external environment. Based on organizational knowledge absorption capacity, organisations have
motivational factors to manage <strong>the</strong>ir suppliers, customers, employees, and substitutions within <strong>the</strong>
epistemological dimension.
There is a nonlinear and reciprocal relationship between <strong>the</strong> OLCM and K-H as it could be seen in
Figure 2. Within <strong>the</strong> epistemological dimension, physical process and data are collected during <strong>the</strong>
entrepreneurial stage. The entrepreneur tries to find resources to allocate equally and to formulate a
niche strategy in <strong>the</strong> organization by scanning <strong>the</strong> environment. In addition, <strong>the</strong> entrepreneur needs
data to make some plans and co-ordinate people and processes in <strong>the</strong> organization. After scanning
<strong>the</strong> environment and collecting data, <strong>the</strong> organization can formulate <strong>the</strong> mission statement and
innovation by categorizing <strong>the</strong>m into parts. The categorized and classified data here could <strong>the</strong>n be
called information within <strong>the</strong> collectivity stage. The categorization and classification processes take a
long time to create an informal environment because this stage requires not only data but also
information which constitutes <strong>the</strong> basis for <strong>the</strong> next stage called formalization. This stage has two
dimensions. The first one indicates “information” which reflects <strong>the</strong> specific rules <strong>of</strong> <strong>the</strong> organization
that needs to be formalized. The second one covers knowledge which requires institutionalized
procedures based on <strong>the</strong> first dimension. If <strong>the</strong>re is a high commitment among <strong>the</strong> individuals in
organization information could be transformed into knowledge based on individual values, beliefs,
attitudes, artefacts, behaviours, etc. Therefore, formalization stage refers both to <strong>the</strong> information and
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Mustafa Sağsan and Ahmet Ertugan
knowledge stages and is based on <strong>the</strong> ability and skills <strong>of</strong> organizational actions within <strong>the</strong>
epistemological dimension. The knowledge stage (formalization stage) <strong>of</strong> <strong>the</strong> hierarchy allows us to
understand <strong>the</strong> competitiveness as well as <strong>the</strong> ability <strong>of</strong> <strong>the</strong> organisation to cerate distinctive
competencies to survive in <strong>the</strong> market. The organization, in this stage, has a core advantage as long
as it transforms/analyzes information into knowledge as part <strong>of</strong> its actions. This transformation
process depends on <strong>the</strong> organizational capability which includes organizational wealth, intangible
assets, best practices, knowledge management activities, etc. The formalization stage only comes
from <strong>the</strong> internal environment but sometimes comes from <strong>the</strong> external environment such as <strong>the</strong>
organization’s suppliers, customers, political and legal environment, technological requirements,
demographic factors, economical demands, financial supports, etc. There is a “refraction” process
based on <strong>the</strong> knowledge hierarchy by moving from <strong>the</strong> collectivity stage to <strong>the</strong> formalization stage.
The Organization has to use its capabilities and competencies within <strong>the</strong> internal and external
environment as it reaches <strong>the</strong> formalization degree. Therefore, <strong>the</strong> age <strong>of</strong> organization and its
experiences play a crucial role for attracting <strong>the</strong> competitors who help <strong>the</strong> organisation to move into
<strong>the</strong> final organizational life stage called elaboration. At this stage, <strong>the</strong> organization has a very strong
differentiation strategy through experiencing knowledge and using its core competencies as every
process is carefully reviewed for making a good decision. There is stability here for a certain period
and <strong>the</strong> organization begins decreasing <strong>the</strong> re-evaluation <strong>of</strong> its internal and external environment after
making a decentralization process. The organization aims at expanding its domain by using wisdom
based on its ideas, experiences and values within <strong>the</strong> elaboration stage. Downsizing is an inevitable
process after <strong>the</strong> elaboration stage because <strong>the</strong> organization has now tremendous experience and it
tends to specialize into separate fields via diversifying its products and services.
Figure 2: The integration between OLCM and K-H
Finally, as we can see in Figure-2, each stage has different concepts, purposes, strategy and plans.
So, one <strong>of</strong> <strong>the</strong> most important points for understanding Figure-2 is <strong>the</strong> refraction process, which is a
transformation from information to knowledge and from collectivity stage to formalization stages.
When <strong>the</strong> organization is capable <strong>of</strong> making <strong>the</strong> right decision at <strong>the</strong> right place in using <strong>the</strong> right
resources, we can <strong>the</strong>n conclude that it has succeeded in moving from a collectivity stage to a
formalization stage.
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4. Empirical test based on OLCM
Mustafa Sağsan and Ahmet Ertugan
A total <strong>of</strong> seventeen firms currently operating and which have shown a rapid growth were approached
to test <strong>the</strong> relationship between <strong>the</strong> OLCM and K-H.
4.1 Research methodology
This study sought to find answers to <strong>the</strong> following questions:
What are <strong>the</strong> determinants <strong>of</strong> success on <strong>the</strong> past performances <strong>of</strong> firms in terms <strong>of</strong> OLC?
How can firms analyze <strong>the</strong> knowledge hierarchical stages in relation to <strong>the</strong>ir capabilities in
growing rapidly?
4.2 Research design
This study was both explorative and descriptive in nature. Firstly, it set out to understand <strong>the</strong> variables
that determined success in <strong>the</strong> past performances <strong>of</strong> firms in relation to OLC. Secondly, it sought to
collect information and describe <strong>the</strong> variables within <strong>the</strong> K-H.
As <strong>the</strong> investigation type, <strong>the</strong> work <strong>of</strong> <strong>the</strong> study included collecting and comparing data on selected
firms as a study on group differences.
The extent <strong>of</strong> researchers’ interference was at a minimum due to both <strong>the</strong> nature and <strong>the</strong> type <strong>of</strong>
study and on <strong>the</strong> fact that data was collected through interviews at non-contrived settings at <strong>the</strong>
respondents’ work environment through open-ended questions.
Data were collected over two months with a cross-sectional time horizon.
The OLC was viewed as a social construct that arose at <strong>the</strong> intersection <strong>of</strong> <strong>the</strong> discourses <strong>of</strong> key
organisational actors. The unit <strong>of</strong> analysis, <strong>the</strong>refore, stemmed from <strong>the</strong> words, phrases and <strong>the</strong>me
patterns that emerged from <strong>the</strong> discourses invoked by key organisational actors interviewed in
relation to OLC process K-H.
4.3 Data collection
The research sample was taken out <strong>of</strong> a list <strong>of</strong> Turkish Cypriot companies registered with <strong>the</strong> Official
Registrar and Receiver <strong>of</strong> Companies in North Cyprus.
Unstructured interviews took place with <strong>the</strong> top managers and/ or owners <strong>of</strong> responding firms. They
were mainly invited to comment on <strong>the</strong> past performance and <strong>the</strong> development <strong>of</strong> <strong>the</strong>ir firms to date.
The empirical data collected were <strong>the</strong>n analyzed using discourse analysis technique. This included a
detailed exploration <strong>of</strong> <strong>the</strong> interview reports to reveal how knowledge are organized, carried and
reproduced in particular ways and through particular organizational practices throughout <strong>the</strong> stages <strong>of</strong>
<strong>the</strong> OLC and K-H.
4.4 Data analysis and findings
Quoted responses from owners/managers <strong>of</strong> Turkish Cypriot companies were analyzed from <strong>the</strong> 17
company. Table-1 shows us <strong>the</strong> critical success (enablers) and restrainers (disablers) stories <strong>of</strong> <strong>the</strong>
Turkish Cypriot company by determining eight important factors. The columns which indicate enablers
and disablers include <strong>the</strong> real explanations that were made by owners <strong>of</strong> <strong>the</strong> companies. The
subject/strategy and categorisation were produced by <strong>the</strong> authors in order to understand <strong>the</strong> reasons
which let company to rapidly growing.
Table-1: The role <strong>of</strong> knowledge hierarchy within <strong>the</strong> OLCs: Critical success stories <strong>of</strong> <strong>the</strong> Turkish
Cypriot Firms
Categories Subject (Factors ) / Enablers (drivers) Disablers (restrainers)
PRODUCTS /
SERVICES ISSUES
strategy
Product quality Quality was our primary
concern in <strong>the</strong> production
<strong>of</strong> our first and subsequent
product
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Mustafa Sağsan and Ahmet Ertugan
Complementary products Adding products that
complemented our main
products was a successful
Presentation <strong>of</strong> products
at outlets
strategy.
We eagerly observe
examples from <strong>the</strong> entire
world trying how best to
arrange <strong>the</strong> presentation
<strong>of</strong> our products on shelves
at retail outlets.
Brand development We have developed our
company name into a
brand and continue to do
so through differentiation
in size <strong>of</strong> main outlet.
Backward integration We produce our own farm
products to be sold at our
supermarkets.
Differentiation strategies We differentiate ourselves
through in-store discount
cards and sales
productions on selected
items.
Multi-brand strategy Storing and selling multibrand
products reduce
risks taken in <strong>the</strong>
marketplace and give us a
good name.
Product/ service variety We attract customers
through <strong>of</strong>fering variety in
products and services to
satisfy <strong>the</strong> needs <strong>of</strong>
different targeted groups.
Business mission Our mission has been on
continuous improvement
on quality.
Diversification <strong>of</strong>
products
Diversification <strong>of</strong>
products
We build our product
range around our core
products.
Enhancing product range We have been enhancing
our product range since
we first began.
Mono-product strategy Mono-product strategy
and focusing on one single
segment were behind our
initial success.
Diversification Our efforts in continued
diversification in all
directions sum all our
efforts.
Demographics An increasing population
because <strong>of</strong> local
universities drawing
students from abroad has
benefited our business. It
has been an opportunity
for us to increase sales
through <strong>of</strong>fering larger
version <strong>of</strong> products.
448
Ethnic differences and
values such as Muslim
traditions on meat have,
in <strong>the</strong> past, slowed down
our poultry meat
production.

Mustafa Sağsan and Ahmet Ertugan
Categories Subject (Factors ) /
strategy
Enablers (drivers) Disablers (restrainers)
GOVERNMENT /
STATE POLICY
Lack <strong>of</strong> political support We received no support
in financial or o<strong>the</strong>r forms
from <strong>the</strong> government.
Political factors We built strategies as not
to get affected by political
decisions.
Lack <strong>of</strong> state support We received no
contribution from <strong>the</strong>
state.
Government taxes We lose many customers
to <strong>the</strong> neighbouring state
due to our local high
value added and o<strong>the</strong>r
direct taxes. High taxes
give us a price
disadvantage in relation
to <strong>the</strong> neighbouring state.
Many customers are lost
this way.
Lack <strong>of</strong> government
The government has no
policy and sympathy to
policies and/ or sympathy
help domestic
to <strong>the</strong> problems <strong>of</strong> local
businesses
businesses.
State services and state
Lack <strong>of</strong> sufficient state
provided infrastructure
services in building and
providing
communications
infrastructure such as
telephone lines and
Internet facilities threaten
our customer relations.
Direct costs such as
Negligence <strong>of</strong>
electricity are very
government
expensive which affect
prices <strong>of</strong> products.
Political threats The future, ambiguous
political state <strong>of</strong> <strong>the</strong>
country poses as a
business threat and a
risk for investments.
The lack <strong>of</strong> financial
support
Insufficient sources <strong>of</strong>
finance by government
create a difficulty within
<strong>the</strong> private health sector.
State bureaucracy The bureaucratic nature
<strong>of</strong> <strong>the</strong> state and its effect
on imports and in
licensing premises do
always restrain business
activities.
Equal opportunities We are an equal
polices in services opportunities provider <strong>of</strong>
services in that we do not
discriminate our servicereceivers
on nationality,
language, race, religious
beliefs, gender, sexuality
and o<strong>the</strong>r values.
State assistance We receive no state
assistance although our
requests are well
communicated.
State subsidies We believe that state
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Mustafa Sağsan and Ahmet Ertugan
subsidies make <strong>the</strong>
producers lazy and in <strong>the</strong>
long run limits value
creation on products.
Legislation Through state legislation
we are a monopoly in <strong>the</strong>
market.
State tenders We have a dislike for
tenders <strong>of</strong>fered by <strong>the</strong>
state departments as
<strong>the</strong>y always end up
creating unfair
competition.
Political risk Political risks involved in
Arab countries such as
<strong>the</strong> current state <strong>of</strong> public
unrest and uprisings
have stopped our
geographical expansion
and direct investment
considerations.
Categories Subject (Factors ) / Enablers (drivers) Disablers (restrainers)
MARKET /
CUSTOMER
ORIENTATION
strategy
Integrated marketing
efforts
We owe much success to
<strong>the</strong> integration <strong>of</strong>
marketing activities such
as product quality,
advertising and improving
customer satisfaction.
Customer loyalty We believe that customer
loyalty is a result <strong>of</strong> good
customer relations,
creating warm, friendly
atmosphere and gaining
<strong>the</strong> confidence <strong>of</strong>
Responding to market
needs and innovative
strategy
customers.
We always begin with
identifying a need or a gap
in <strong>the</strong> market and finding
an innovative solution.
Market awareness I observed small
businesses enjoying a
high numbers <strong>of</strong>
customers which made me
realise that <strong>the</strong>re was a
big market potential.
Small domestic market The small size <strong>of</strong> <strong>the</strong>
domestic market coupled
with <strong>the</strong> threat <strong>of</strong>
potential investment by
overseas investors
restrains our future
Price discounts as Our marketing strategy is
marketing strategy based on price discounts.
Customer orientation We appreciate <strong>the</strong> fact
that people dislike waiting
for a service. In response,
we continuously work
toward minimising
customer waiting times.
Size <strong>of</strong> market share We strive to achieve a
large market share as
believe this to be directly
related with pr<strong>of</strong>its and
future success.
450
plans.

HUMAN RESOURCE
PRACTICES /
FUNCTIONS
Mustafa Sağsan and Ahmet Ertugan
Quality certification Quality certification such
as ISO 2009 and 2200
have helped us in
becoming a brand in <strong>the</strong>
marketplace.
Market research Informal, market research
is carried out with
convenient sampling to
identify <strong>the</strong> needs <strong>of</strong>
potential customers.
Public relations Sponsorships exist with
local football clubs.
Small domestic market The small domestic
market in relation to
population size and
human resources curb
our development and
Communications with
customers
The fact that I have
person-to-person
communications with my
customers plays a great
role in our business
success.
Customer satisfaction We achieve sustainable
pr<strong>of</strong>its and business
growth through customer
satisfaction and loyalty
and sustainable
development <strong>of</strong> <strong>the</strong> quality
<strong>of</strong> our services.
Customer feedback We encourage customer
feedback through personal
an formal channels
Diversification We have seen <strong>the</strong> need
and diversified into o<strong>the</strong>r
sectors vertically. For
example, we have
established a business to
produce our raw materials.
Customer support via We have sophisticated
information systems information systems built
in to manage customer
orders and orders
processing.
Niche marketing We were <strong>the</strong> first to open
up a <strong>the</strong>me restaurant
which was a niche in <strong>the</strong>
Collaboration with o<strong>the</strong>r
companies
market.
growth.
Our existing discount card
system is an opportunity to
our customers not only to
benefit from discounts at
our stores but also at o<strong>the</strong>r
shops and stores selling
different products. This
gives a competitive
advantage as it enhances
customer benefits.
Enablers (drivers) Disablers (restrainers)
Categories Subject (Factors ) /
strategy
Employee motivation We have employee reward
systems based on
performance to motivate
our employees.
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Mustafa Sağsan and Ahmet Ertugan
Employee relations We regularly organise
social activities for
employees such as
playing football and going
to <strong>the</strong> sea for a swim to
improve socialisation at
<strong>the</strong> workplace.
Employee motivation We have twice-a-week
meeting with employees.
We apply fair pay with full
insurance benefits and
overtime pay. We <strong>of</strong>ten
apply one-to-one
management to suit to
individual characteristics
<strong>of</strong> employees
Past experience My previous work
experience in similar
settings has helped me in
building up this business.
Employee motivation We attempt to increase
motivation at work through
fair pay and rewards on
performance.
The pay and <strong>the</strong> work
insurance <strong>of</strong> our
employees are at par with
those working for <strong>the</strong>
state. Periodic rewards are
given and appreciation is
shown to employees on
performance.
Employee motivation Empowering our
employees we find
motivational.
Employee motivation This is based on
commission on sales
performance.
Business history This business has
emerged from family
tradition and practices. I
have long been in this
business.
Team work We owe our success to
our team work as we have
successfully created a
team among employees
Managing human
resources
Abundance <strong>of</strong> human
resources
and managers.
Our management is based
on well-defined job
descriptions and
continuous training. We
invest in people so that
our employees stay with
us for a lifetime.
There is an abundance <strong>of</strong>
qualified human resources
from <strong>the</strong> neighbouring
country posing as an
opportunity.
Continuous training One way <strong>of</strong> increasing and
gaining a competitive
advantage in services is to
continuously train our
employees.
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Mustafa Sağsan and Ahmet Ertugan
Employee feedback Feedback from employees
is obtained at regularly
organised departmental
meetings.
Job descriptions We have formal job
descriptions for all posts.
Synergy When we invest in new
businesses our criteria is
to obtain a synergy with
our existing businesses. If
<strong>the</strong>re will be no synergies
to be gained than we tend
not to invest in such
businesses.
Employee motivation Our employees are treated
as part <strong>of</strong> <strong>the</strong> family.
Meetings are held every
week for planning where
employees are
encouraged to contribute
with <strong>the</strong>ir ideas. Twice a
year, pay rates are
reviewed with elected staff
representatives.
At every two months, a
general meeting is held
with managing employees
to take decisions in <strong>the</strong>
running <strong>of</strong> <strong>the</strong> company.
Categories Subject (Factors ) / Enablers (drivers) Disablers (restrainers)
THE AWARENESS OF
SOCIETAL
RESPONSIBILITY
strategy
Societal responsibility Our societal
responsibilities are
planned ahead. We
regularly provide financial
support to <strong>the</strong> disabled
and victims <strong>of</strong> cancer. In
addition, we supply food
Environmental
responsibility
items to poor families.
A company must be
environmentally sensitive
so not to damage <strong>the</strong>
natural environment.
Collaborations We visit and keep in touch
with business similar to
our own overseas. We
exchange know-how and
o<strong>the</strong>r knowledge with each
o<strong>the</strong>r.
Societal responsibility We are <strong>the</strong> highest
contributors to <strong>the</strong> victims
<strong>of</strong> cancer.
Societal orientation We are and we plan to be
a societal oriented
company. The welfare <strong>of</strong>
<strong>the</strong> community we live in
and <strong>the</strong> protection <strong>of</strong> <strong>the</strong>
natural environment is as
important to us as
satisfying <strong>the</strong> wants <strong>of</strong> our
customers. We achieve
this through regular
business planning.
Societal responsibility Surplus food items were
being taken to animal
shelters at first but this
453

Mustafa Sağsan and Ahmet Ertugan
had created criticisms.
Societal responsibility Local football teams are
sponsored.
Categories Subject (Factors ) /
strategy
Enablers (drivers) Disablers (restrainers)
Contingency planning We always have
contingent plans available
in case <strong>of</strong> unexpected
competition.
Keeping an eye on We keep an eye on
innovations
innovations. We attend
trade fairs.
Competitive advantage We define competitive
advantage as a
combination <strong>of</strong> product
quality, customer
satisfaction and acting at
<strong>the</strong> right time and place.
Buying strategies for cost Our buying strategies give
effectiveness us a competitive edge as
we buy cheaper and sell
cheaper. This we achieve
in buying large volumes
and obtaining volume
discounts.
STRATEGIC /
COMPETITIVE
ADVANTAGE
ORGANISATIONAL
DESIGN /
STRUCTURE
Buying ahead <strong>of</strong>
competition.
In <strong>the</strong> case <strong>of</strong> farm
produce, we buy our
products direct from
producers paid in advance
<strong>of</strong> harvest season and
ahead <strong>of</strong> <strong>the</strong> competition.
Marketing philosophy We believe in setting
competitive, low prices on
quality products to
increase our
competitiveness.
Financing investments We prefer to finance our
investments with company
cash only.
Local competition There was a smear
campaign from local
competition to damage
our business.
Competitive advantage As home developers, We
sought competitive
advantage through
designing societal
sensitivity into our homes.
This not only included a
greener environment for
people to enjoy but energy
saving homes.
Competition We see competition not as
a threat but an opportunity
to inspire growth.
Specialisation We believe that everyone
should do what <strong>the</strong>y are
good at and not diversify
into o<strong>the</strong>r business areas
where different skills are
needed.
Functionally organised Our success lies in our
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Mustafa Sağsan and Ahmet Ertugan
structure successful division <strong>of</strong>
functions and departments
within <strong>the</strong> organisation.
Formalised operations We have formalised
company operations to
control our work at wanted
standards.
Functional organisation We have a functional
organisation strategy for
better control and
Formalisation <strong>of</strong>
information flow
Departmental
organisation
specialisation.
All our internal and
external communications
are formalised. Important
communications among
departments are
documented in <strong>of</strong>fice
memos.
Categories Subject (Factors ) /
strategy
Geographical expansion We open up branches to
expand geographically
where <strong>the</strong>re is demand.
Threat <strong>of</strong> competition
from overseas investors
GEOGRAPHICAL
FACTORS
We are organised
departmentally where
each department has an
empowered head. Each
department, in return is
responsible to <strong>the</strong>
management committee at
head quarters.
Enablers (drivers) Disablers (restrainers)
Business location Locating our retail store
was more important than
rents involved.
Mission to expand In expanding <strong>the</strong> business
one should have no limits.
Expansion policy Exporting surplus has
been our main source <strong>of</strong>
growth and expansion. We
have also watched
neighbouring countries for
opportunities in exports.
Geographical expansion Our company pursues a
strategy <strong>of</strong> geographical
expansion and has
opened up new outlets
since its beginnings and is
continuing to do so.
Fear <strong>of</strong> potential
competition in <strong>the</strong> form <strong>of</strong>
direct investment coming
from overseas investors
has pulled us back from
investing fur<strong>the</strong>r to
expand our business.
As it could be seen from <strong>the</strong> Table-1, <strong>the</strong>re are eight important categories with different subjects that
allow Cyprus Turkish companies to grow rapidly. These are:
PRODUCTS / SERVICES ISSUES,
GOVERNMENT / STATE POLICY,
MARKET / CUSTOMER ORIENTATION,
HUMAN RESOURCE PRACTICES / FUNCTIONS,
THE AWARENESS OF SOCIETAL RESPONSIBILITY,
455

STRATEGIC / COMPETITIVE ADVANTAGE,
ORGANISATIONAL DESIGN / STRUCTURE,
GEOGRAPHICAL FACTORS.
Mustafa Sağsan and Ahmet Ertugan
According to <strong>the</strong> Table-1, most <strong>of</strong> <strong>the</strong> companies are at <strong>the</strong> entrepreneurial stage because <strong>of</strong> <strong>the</strong>ir
family company characteristics. <strong>International</strong>ization for <strong>the</strong> companies is a big barrier in terms <strong>of</strong>
global competition and opening to an international market because <strong>the</strong> country is still under
embargos. For example, <strong>the</strong> lack <strong>of</strong> political support, political risks, resistance to change, state
tenders, state subsidies, state assistance, small domestic market, state bureaucracy, political treats,
state services and state provided infrastructure, threat <strong>of</strong> competition from overseas investors are
some <strong>of</strong> <strong>the</strong> factors that lead companies to concentrate on local activities. Based on <strong>the</strong> K-H, <strong>the</strong>se
disablers can be evaluated as data and information by <strong>the</strong> policy makers in <strong>the</strong> TRNC to formulate
market expansion strategies. Lack <strong>of</strong> coordination <strong>of</strong> business activities, little planning and resource
allocation are some <strong>of</strong> <strong>the</strong> specific characteristics that belong to companies in nor<strong>the</strong>rn Cyprus at <strong>the</strong>
entrepreneurial stage.
On <strong>the</strong> o<strong>the</strong>r hand, some <strong>of</strong> <strong>the</strong> enablers such as employee motivation, synergy, societal orientation,
teamwork, etc., which cover <strong>the</strong> human resource practices / functions reflect <strong>the</strong> human side <strong>of</strong> <strong>the</strong>
organization and can be integrated with <strong>the</strong> knowledge stage for <strong>the</strong> K-H, because <strong>the</strong>se are <strong>the</strong>
desirable factors that include <strong>the</strong> acculturation and subjectivity for <strong>the</strong> companies and allow us to
evaluate <strong>the</strong>m within <strong>the</strong> collectivity stage <strong>of</strong> OLC. Based on <strong>the</strong> entrepreneurial data, <strong>the</strong> company
turns <strong>the</strong>se kinds <strong>of</strong> data and information such as little planning activities, resource allocation and
coordination, etc into <strong>the</strong> knowledge by analyzing <strong>the</strong>m based on <strong>the</strong>ir capabilities within <strong>the</strong>
collectivity stage. Briefly, <strong>the</strong> collectivity stage <strong>of</strong> OLC, which also represents <strong>the</strong> second stage <strong>of</strong>
organizational growth, can be matched with knowledge in K-H.
In parallel with OLC, <strong>the</strong> factors, which were determined by authors, such as pr<strong>of</strong>essional
management structure, integrating marketing efforts, departmental organization, customer loyalty,
formalized operation, specialization, enhancing product range, brand development, job description,
sustainable business & pr<strong>of</strong>its, size <strong>of</strong> market share, differentiation strategy, diversification, and <strong>the</strong>
long business history, represent <strong>the</strong> characteristics <strong>of</strong> formalization stage that also can be aligned
with <strong>the</strong> knowledge in K-H.
5. Conclusion
In conclusion, <strong>the</strong>re is common understanding between K-H and OLC based on <strong>the</strong> empirical
evidence. Entrepreneurial stage can be evaluated within <strong>the</strong> data and information stages, and
collectivity and formalization stages can be aligned with <strong>the</strong> knowledge in K-H. These two stages
initiate companies to reach specialized form and to create distinctive and competitive strategies,
which were determined in Table-1 within <strong>the</strong> first column, by using <strong>the</strong>ir ability and skills. Although
TRNC companies are still at <strong>the</strong> entrepreneurial and collectivity stage, <strong>the</strong>y have limited ability to
transform data and information into knowledge as <strong>the</strong>y lack pr<strong>of</strong>essionalism. They also need to
institutionalize <strong>the</strong>ir routines as customers expect informal relations with companies since <strong>the</strong>re is
high collectivist behaviour in <strong>the</strong> Turkish Cypriot society.
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457

Migrant Labour in <strong>the</strong> Workforce
Per Øystein Saksvik 1 , Carla Dahl-Jørgensen 2 , and Sturle Danielsen Tvedt 1
1
Dep. <strong>of</strong> Psychology, Norwegian University <strong>of</strong> Science and Technology,
Trondheim Norway
2
Dep. <strong>of</strong> Social Anthropology, Norwegian University <strong>of</strong> Science and
Technology, Trondheim Norway
Per.Saksvik@svt.ntnu.no;
Carla.Dahl-Jorgensen@svt.ntnu.no;
Sturle.D.Tvedt@svt.ntnu.no
Abstract: We compared immigrant workers with native workers on several factors related to <strong>the</strong>ir perception <strong>of</strong>
<strong>the</strong>ir work identity anchored in <strong>the</strong>ir psychosocial work environment, and <strong>the</strong> result <strong>of</strong> <strong>the</strong>se factors on work stress
and subjective health. Migrant labour may represent a different human capital in <strong>the</strong> contemporary workforce and
<strong>the</strong>ir values connected to work and <strong>the</strong>ir commitment to <strong>the</strong> firm <strong>the</strong>y work in should <strong>the</strong>refore be investigated.
The data for this study came from a survey among migrant labourers in <strong>the</strong> construction and cleaning business
(N=125) and was compared to a native sample (N=654) we used in an earlier study where we compared a
sample <strong>of</strong> immigrants from <strong>the</strong> food and beverage industry with natives. The present study showed that <strong>the</strong>
migrant workers perceived more over-commitment and higher job stress than native workers. This finding was
similar to <strong>the</strong> first study in relation to <strong>the</strong>se two factors. In this study, however, <strong>the</strong> construction workers and
cleaners did not have significant higher levels <strong>of</strong> mental health problems than native workers. The personal
ambitions <strong>of</strong> <strong>the</strong> immigrants, measured as a higher level <strong>of</strong> over-commitment was seen as a driving force behind
<strong>the</strong> patterns we found. In <strong>the</strong> first study we discussed that this could have been a possible threat to an increased
level <strong>of</strong> stress leading to mental health problems, but commitment to <strong>the</strong> firm <strong>the</strong>y worked in was seen as a
compensating factor in <strong>the</strong> final path analysis for <strong>the</strong> immigrant food and beverage workers. In this new study, <strong>the</strong>
construction workers and cleaners showed significantly lower commitment than <strong>the</strong> natives, but still a path from
over-commitment to commitment was found and may function as a barrier from developing even more stress and
mental health reactions over time. A prerequisite <strong>the</strong>n is that commitment has to be streng<strong>the</strong>ned for <strong>the</strong>se
immigrant workers and <strong>the</strong> differing human capital <strong>the</strong>y bring with <strong>the</strong>m as a group has to be recognized and
included in <strong>the</strong> organizational learning <strong>of</strong> <strong>the</strong> firm.
Keywords: Mental health, over-commitment, human capital, immigrant workers, work identity, organizational
learning
1. Introduction
In a recent study we found that immigrant workers settled in Norway perceived more overcommitment,
more mental health problems and higher job stress than native Norwegian workers
(Saksvik, Dahl-Jørgensen, Tvedt, and Eiken 2010). The personal ambitions <strong>of</strong> <strong>the</strong> immigrants,
measured as a higher level <strong>of</strong> over-commitment was seen as a driving force behind <strong>the</strong> pattern we
found. In a follow-up study with a new sample <strong>of</strong> migrant workers from Poland to Norway we wanted
to see if <strong>the</strong> findings from <strong>the</strong> first study could be replicated. Immigrant workers are in a situation
where <strong>the</strong>y have to rely on <strong>the</strong>ir own resources more than <strong>the</strong> collective resources, and thus, are at
greater risk <strong>of</strong> experiencing negative stress and bad health if <strong>the</strong>y perceive little support and respect
in <strong>the</strong>ir work environment from <strong>the</strong>ir employer, boss, or colleagues. This in turn may have
consequences for <strong>the</strong> firm <strong>the</strong>y work in both related to organizational commitment and to values.
Becker (1993) discusses this in relation to human capital and says that employees cannot be
separated from <strong>the</strong>ir knowledge, skills, health, or values in <strong>the</strong> way <strong>the</strong>y can be separated from <strong>the</strong>ir
financial and physical assets. Migrant workers bring new assets into our understanding <strong>of</strong> <strong>the</strong> work
environment that may release <strong>the</strong> need for organizational (re)learning and knowledge transformation
(Williams 2007).
Work migration is a phenomenon that has increased significantly both in intensity and diversity over
recent decades (Morawska 2001; Okólski, in Wallace and Stola 2002, p. 105). In <strong>the</strong> European
context <strong>the</strong> expansion <strong>of</strong> 10 new EU member states in May 2004 actualized this topic when large
numbers <strong>of</strong> migrants from Eastern and Central European Countries started migrating to <strong>the</strong> Western
part <strong>of</strong> Europe. One <strong>of</strong> <strong>the</strong> most significant groups <strong>of</strong> migrant labourers moving to Norway after 2004
came from Poland. Poland has many factors that contributes to labour migration such as a long
history <strong>of</strong> emigration that is connected to its geo-political situation and history <strong>of</strong> being vulnerable to
invasion and domination (Magala 2008); a very large population that is comprised <strong>of</strong> both highly
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Per Øystein Saksvik, Carla Dahl-Jørgensen et al
educated and less skilled sectors, and a differential in wages and economic status between itself and
<strong>the</strong> West (Kicinger and Weinar 2007).
Migrant workers such as <strong>the</strong> Poles represent a low-cost labour supply, not just because <strong>the</strong>ir salaries
are normally lower than those <strong>of</strong> native workers, but also because social and reproduction costs
before <strong>the</strong>y arrive in <strong>the</strong>ir new country are carried by <strong>the</strong> sending society. The present pattern <strong>of</strong> work
migration adds dimensions to <strong>the</strong> field <strong>of</strong> study, for example, when it comes to ideas <strong>of</strong> identity,
belonging and commitment. The concept <strong>of</strong> identity is one approach towards understanding <strong>the</strong>
individual experience with work migration. Identity is defined as <strong>the</strong> ideas we have about who we are
and what groups we belong to (Jenkins 2008). Identity and a sense <strong>of</strong> belonging, <strong>the</strong>n, are
fundamental for shaping and mediating immigrant workers’ experiences in <strong>the</strong> receiving society.
Giddens defines identity as <strong>the</strong> ongoing sense <strong>the</strong> self has <strong>of</strong> who it is, as conditioned through its ongoing
interaction with o<strong>the</strong>rs (in Mat<strong>the</strong>ws 2000). While identity conditions <strong>the</strong> individual experiences
<strong>of</strong> migration, <strong>the</strong>se experiences in turn impact on identity.
According to Zeytinoglu (2002) <strong>the</strong> uncertainty <strong>of</strong> flexible work lives, as those experienced by
immigrant workers, commonly causes problems such as low commitment, low autonomy, low
opportunities for developing skills, and fewer career opportunities. It seems that many employees with
a short-term job perspective develop a more personal kind <strong>of</strong> work commitment than <strong>the</strong> more wellknown
organizational commitment. This more personal commitment seems to be directed towards <strong>the</strong>
employees’ own career or pr<strong>of</strong>ession, not <strong>the</strong>ir present employer and <strong>the</strong> future <strong>of</strong> <strong>the</strong> company
(Hecksher 1995). However, as we found in <strong>the</strong> former study, <strong>the</strong> migrants use organizational
commitment as a form <strong>of</strong> coping strategy. They have to rely on organizational commitment to
compensate for strain and symptoms <strong>of</strong> health problems (Saksvik et al. 2010).
The term over-commitment is most <strong>of</strong>ten associated with, and studied within, <strong>the</strong> <strong>the</strong>oretical
framework <strong>of</strong> <strong>the</strong> Effort–Reward Imbalance model (ERI-model) (1996). An individual’s tendency to
over-commit to work results from a behavioural pattern, called Type A-behaviour, where one
exaggerates <strong>the</strong> intrinsic effort one mobilizes to solve a problem. For a migrant worker <strong>the</strong> possibility
<strong>of</strong> a large income for a period also has to be taken into consideration. Thus, migrant workers tend to
accept long and hard work days and unsociable work hours, and in many cases keep silent about
unacceptable work conditions. We <strong>the</strong>refore believe that migrant workers in general will obtain higher
scores on over-commitment than native workers. Their precarious position in <strong>the</strong> labour market forces
<strong>the</strong>m to invest more <strong>of</strong> <strong>the</strong>mselves to secure <strong>the</strong>ir possibilities for <strong>the</strong> future. We also find it likely that
many migrant workers will experience fewer rewards than native workers, because <strong>the</strong>y have less
interaction with o<strong>the</strong>r colleagues and superiors.
The following hypo<strong>the</strong>ses were stated:
HI: Immigrant workers perceive higher levels <strong>of</strong> over-commitment and lower levels <strong>of</strong>
reward and report more work stress and mental health problems.
HII: Immigrant workers perceive organizational commitment on <strong>the</strong> same level as native
workers.
HIII:The immigrant sample will show <strong>the</strong> same path from over-commitment to stress and
mental health through commitment as was found in <strong>the</strong> 2010-study.
2. Methods
2.1 Participants and procedures
In <strong>the</strong> immigrant sample consisting <strong>of</strong> 125 Polish workers in <strong>the</strong> construction and cleaning business.
Questionnaires were distributed and collected in a city in Norway by a Polish student who contacted
<strong>the</strong> migrant workers attending <strong>the</strong> Catholic Church and three different locations where Norwegian
classes were taught to <strong>the</strong> workers. The respondents worked for different companies, however, 22%
<strong>of</strong> <strong>the</strong>m were unemployed at <strong>the</strong> time <strong>of</strong> <strong>the</strong> survey, but had former employment in Norway. The
response rate was ra<strong>the</strong>r low, 31%, but we attribute this to <strong>the</strong> fear <strong>of</strong> disclosure that many experience
since some <strong>of</strong> <strong>the</strong>m worked in <strong>the</strong> illegal market. 38% <strong>of</strong> <strong>the</strong> sample was women and <strong>the</strong>y dominate
in <strong>the</strong> cleaning sector while <strong>the</strong> men were in <strong>the</strong> construction sector. Their mean age was 35. The
majority <strong>of</strong> <strong>the</strong>m worked full-time (80%) and <strong>the</strong> average working hours were 38, including overtime. A
larger percentage <strong>of</strong> <strong>the</strong> males had a high school degree (80% males) compared to 49% among <strong>the</strong>
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Per Øystein Saksvik, Carla Dahl-Jørgensen et al
females. A larger number <strong>of</strong> women compared to men had completed some years in college (47%
women and 18% men).
The Polish sample was compared to <strong>the</strong> native workers from our former study in <strong>the</strong> food and
beverage industry (N=654), representing 45 different firms. Participation in <strong>the</strong> study was voluntary.
The firms were selected as being representative <strong>of</strong> <strong>the</strong> industry’s population, covered all geographical
parts <strong>of</strong> <strong>the</strong> country, with production areas representative <strong>of</strong> <strong>the</strong> industry as a whole. The average
response rate over <strong>the</strong> different firms was 59.4 %. The primary work task <strong>of</strong> 85.5% <strong>of</strong> <strong>the</strong> sample was
production, 389 (42.1%) were women and 533 (57.7%) were men. The average age <strong>of</strong> <strong>the</strong>
respondents was 40.6 years (SD = 11.58). Ninety-four per cent worked full-time, <strong>the</strong> rest were
employed on a part-time or temporary basis. The participants worked on average 34.5 hours per week
(SD = 13.2). Their work consisted mainly <strong>of</strong> tasks related to production, such as packing food or
managing machines. Regarding <strong>the</strong> level <strong>of</strong> education, 27% had completed seven to nine years <strong>of</strong>
education, and 63.7% had a high school degree. A small percentage <strong>of</strong> respondents, 8.7%, had
completed one to six years in college.
Table 1: The two employment groups: number <strong>of</strong> employees, gender distribution, mean age, and
seniority (mean).
Employment
group
N
Male
(%)
Native
Employees
Immigrant
654 56 44
Employees 125 62 38
2.2 Measures
Female
(%)
Age
Mean (SD)
Seniority
Mean (SD)
40.5 (11.8) 10.1 (8.7)
(9.4) 1.5 (17.8)
The questionnaire used in this study consisted <strong>of</strong> a mixture <strong>of</strong> already validated scales and items
developed for <strong>the</strong> purpose <strong>of</strong> this study.
Over-commitment: This index consisted <strong>of</strong> four items from <strong>the</strong> intrinsic effort dimension <strong>of</strong> Siegrist’s
(1996) ERI questionnaire. The index consisted <strong>of</strong> items that assessed <strong>the</strong> amount <strong>of</strong> intrinsic effort or
commitment being invested at work. An example <strong>of</strong> an item from this index is: I only feel successful
when I perform better than I expected. The Cronbach’s alpha <strong>of</strong> this index was .80. The response
categories were given on a four-point scale ranging from “false” to “true.”
Reward: This index consisted <strong>of</strong> 11 items developed by Siegrist (1996) in his ERI questionnaire. The
items reflect <strong>the</strong> perceived rewards received. An example <strong>of</strong> an item from this index is: I receive <strong>the</strong>
respect I deserve from my colleagues. The Cronbach’s alpha <strong>of</strong> this scale was .78. The measures had
a five-point scale ranging from “strongly disagree” to “strongly agree.”
The following indexes were collected from Karasek et al. (1998) and were used in this study as control
variables. The Karasek model (Karasek and Theorell 1990) still is <strong>the</strong> most common model to assess
<strong>the</strong> quality <strong>of</strong> <strong>the</strong> work environment.
Job specific demands: This index consisted <strong>of</strong> three items that assessed how <strong>of</strong>ten <strong>the</strong> participants
work with short deadlines, work quickly and under time pressure. One <strong>of</strong> <strong>the</strong> items was: How <strong>of</strong>ten do
you work with constant time pressure due to heavy workloads? The response categories were given
on a five-point scale ranging from “very seldom” to “very <strong>of</strong>ten.” The Cronbach’s alpha for this scale
was .84.
Job specific control: Job specific control was measured with four items, one <strong>of</strong> <strong>the</strong>m was: How <strong>of</strong>ten
can you influence decisions about your own work? Scale reliability was .85 and <strong>the</strong> response
alternatives ranged from “very seldom” to “very <strong>of</strong>ten”.
Job specific support: This index consisted <strong>of</strong> four items and one <strong>of</strong> <strong>the</strong>m was: How <strong>of</strong>ten do you
receive help and support from your co-workers? Cronbach’s alpha was .79 and <strong>the</strong> response
categories were given on a five-point scale ranging from “very seldom” to “very <strong>of</strong>ten.”
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Per Øystein Saksvik, Carla Dahl-Jørgensen et al
Organizational commitment was measured by <strong>the</strong> short form <strong>of</strong> <strong>the</strong> Organizational Commitment
Questionnaire (OCQ) (Mowday, Steers and Porter 1979). The OCQ is a nine-item scale subsuming
(1) a desire to maintain membership in <strong>the</strong> organization, (2) belief in and acceptance <strong>of</strong> <strong>the</strong> values
and goals <strong>of</strong> <strong>the</strong> organization, and (3) a willingness to exert extra effort on behalf <strong>of</strong> <strong>the</strong> organization.
Cronbach’s alpha was .92.
Perceived job stress reactions were measured with two different scales. One <strong>of</strong> <strong>the</strong>m is Cooper’s Job
Stress Scale (1981). We used 22 questions from this scale with six response categories ranging on a
scale from “no stress at all” to a “great deal <strong>of</strong> stress.” The overall scale had a Cronbach’s alpha <strong>of</strong>
.92.
Mental health reactions were measured with five items based on items used by <strong>the</strong> European
Foundation for <strong>the</strong> Improvement <strong>of</strong> Living and Working Conditions. Using a four-point scale <strong>the</strong>
questions measure if <strong>the</strong>ir work has caused: stress, headaches, general fatigue, and sleeping
problems, (α =.72). Responses were given on a four-point scale ranging from “seriously afflicted “to
“not afflicted”.
2.3 Statistical analysis:
The analyses were conducted using SPSS (PASW Statistics 18). A t-test was conducted to compare
<strong>the</strong> means <strong>of</strong> each variable used in <strong>the</strong> SEM analysis. Using AMOS s<strong>of</strong>tware (Arbuckle and Wothke
1999), SEM (structural equation modelling) analysis was performed for Hypo<strong>the</strong>sis III. Prior to <strong>the</strong>
SEM analysis, <strong>the</strong> sample was screened for missing data. Cases with missing data after index
computation were deleted.
2.4 Fit indices
As model evaluation continues to be an unsettled issue in SEM analysis (Arbuckle and Wothke 1999),
a mixture <strong>of</strong> fit indices was used to evaluate <strong>the</strong> models in <strong>the</strong> present paper: The traditional χ2, <strong>the</strong>
normed χ2 (χ2/df), AGFI (adjusted-goodness-<strong>of</strong>-fit index), TLI (Tucker-Lewis coefficient), (CFI)
(comparative-fit-index), and RMSEA (root-mean-square error <strong>of</strong> approximation). According to Browne
and Cudeck (1993), values <strong>of</strong> .05 or less indicate a close fit, and values <strong>of</strong> about .08 indicate a
reasonable error <strong>of</strong> approximation.
3. Results
Table 2 shows <strong>the</strong> mean scores and correlations on <strong>the</strong> study’s variables for each employment group.
The table shows that <strong>the</strong>re exist significant differences in levels <strong>of</strong> over-commitment, commitment,
reward, demands, and stress between <strong>the</strong> groups. Immigrant workers perceived more overcommitment,
higher job stress, less reward, but lower demands and lower commitment than native
workers. Hypo<strong>the</strong>sis I was partially confirmed; immigrant workers perceived more over-commitment,
higher job stress and less reward, but did not perceive more mental health problems. Hypo<strong>the</strong>sis II
was not supported, but <strong>the</strong> result was in line with <strong>the</strong> original hypo<strong>the</strong>sis from <strong>the</strong> first study;
immigrants had significantly lower commitment than native workers.
The correlation matrix shows that reward and over-commitment correlate highly with all three
dependent variables for both employee groups. In general <strong>the</strong> correlations were modest and in <strong>the</strong>
predicted direction.
Structural equation modelling (SEM) analysis was performed to test Hypo<strong>the</strong>sis III. One important
assumption associated with SEM analysis that is <strong>of</strong>ten ignored in <strong>the</strong> research literature, is <strong>the</strong>
assumption <strong>of</strong> multivariate normal distribution (Byrne 2001). Thus, <strong>the</strong> first step <strong>of</strong> any SEM analysis
should be an assessment <strong>of</strong> multivariate normality. Accordingly, an assessment <strong>of</strong> <strong>the</strong> immigrant
sample indicated moderate non-normality, and a bootstrapping procedure was employed because this
sample was only <strong>of</strong> medium size. Bootstrapping works by basing inferential procedures on a concrete
sampling distribution from <strong>the</strong> sample at hand, ra<strong>the</strong>r than <strong>the</strong> traditional sampling distribution created
by a hypo<strong>the</strong>tical infinite number <strong>of</strong> samples from <strong>the</strong> population <strong>of</strong> interest (Efron 1982). The
concrete sampling distribution thus reflects <strong>the</strong> distribution <strong>of</strong> <strong>the</strong> sample, rendering <strong>the</strong> assumption <strong>of</strong>
normality
superfluous. A bootstrap sample <strong>of</strong> 1000 was drawn (with replacement) and used for <strong>the</strong> analysis <strong>of</strong>
III.
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Per Øystein Saksvik, Carla Dahl-Jørgensen et al
Table 2: Descriptive statistics for <strong>the</strong> employment groups and correlation matrix for <strong>the</strong> study
variables. NE = Native Employees, IE = Immigrant Employees. Correlations for <strong>the</strong> immigrant group
are shown above <strong>the</strong> diagonal, for <strong>the</strong> natives below <strong>the</strong> diagonal.
1.
Demands
2. Control
3. Support
4. Reward
5. Overcommit-
ment
6.
Commit-
ment
7. Mental
health
reactions
Mean (SD) a 1 2 3 4 5 6 7 8
IE: 2.96 (1.24)**
NE: 3.43 (.87)
- -.28** -.13 -.34** .00 -.41** -.44** .44**
IE: 3.11 (.99)
NE: 3.43 (.94)
-.05 - .44** .46* .28** .33** .11 -.11
IE: 3.45 (.90)
NE: 3.48 (.89)
.01 .45** - .49** .02 .14 .10 -.28**
IE: 3.07 (.60)** - .33** .42** - .06 .49** .42** -.50**
NE: 2.95 (.49) .16*
*
IE: 2.76 (.51)** .22* .12** -.03 -.21** - .19* -.38** .32**
NE: 1.99 (.54) *
IE: 2.75 (1.23)**
NE: 3.09 (.67)
IE: 3.26 (.55)
NE: 3.40 (.51)
-.08 .30** .34** .46** .03 - .31** -.15
-
.26*
*
.31*
*
.20** .19** .37** -.20** .21** - -.51**
18. Stress
IE: 2.49 (.92)**
NE: 2.11 (.78)
-.11** -.28 -56** .40** -.30** -.50** -
* = p < .05, **=p

Per Øystein Saksvik, Carla Dahl-Jørgensen et al
and from Over-commitment to Stress. In addition, new paths were suggested such that both Overcommitment
and Reward show paths to all dimensions <strong>of</strong> <strong>the</strong> Karasek model (Karasek and Theorell
1990). All new suggested paths are reasonable in a <strong>the</strong>oretical sense according to <strong>the</strong> work
environment models used here (see discussion for details). The model was <strong>the</strong>n re-specified to
include <strong>the</strong> estimation <strong>of</strong> <strong>the</strong>se new regression paths, pictured in Figure 2. A model with reasonable fit
was <strong>the</strong>n achieved (df = 11, χ2 =16.182, χ2/df = 1.471, AGFI = .896, TLI = .956, CFI = .983, RMSEA
= .063).
Figure 2: Standardized coefficients for Model 3, HIII. Observed variables are shown in rectangles. All
values are based on bias corrected bootstrap estimation. Latent constructs are shown in ellipses and,
observed variables are shown in rectangles. * Indicates significant coefficients with 90% confidence
intervals using bias-corrected percentile method.
In <strong>the</strong> first study, we found that <strong>the</strong> native sample showed a traditional pathway also found in o<strong>the</strong>r
studies from over-commitment through demands and job stress to mental health, and from overcommitment
through stress to mental health (Saksvik et al. 2010). As hypo<strong>the</strong>sized in HIII, and in
accordance with <strong>the</strong> first study, <strong>the</strong> immigrant sample showed alternative paths <strong>of</strong> reward and overcommitment
on mental health through commitment as well as a direct effect <strong>of</strong> over-commitment on
mental health. Still, only partly in accordance with HIII, both reward and over-commitment had
significant direct effects on stress, which mediated <strong>the</strong> effects to mental health. Contrary to <strong>the</strong>
hypo<strong>the</strong>sized model where over-commitment only predicted demands and reward only predicted
support, additional paths were included such that both over-commitment and reward show paths to
<strong>the</strong> demands, control, and support dimensions. On <strong>the</strong> o<strong>the</strong>r hand, none <strong>of</strong> <strong>the</strong> effects from <strong>the</strong>se
dimensions were significant; instead, <strong>the</strong>re was an effect <strong>of</strong> demands on commitment, which is not in
accordance with <strong>the</strong> hypo<strong>the</strong>sized model, but is never<strong>the</strong>less compatible with hypo<strong>the</strong>sis III in that it
follows <strong>the</strong> alternative commitment route to mental health.
463

4. Discussion
Per Øystein Saksvik, Carla Dahl-Jørgensen et al
The t-tests showed much <strong>of</strong> <strong>the</strong> same picture for <strong>the</strong> Polish sample as for <strong>the</strong> immigrant sample <strong>of</strong> <strong>the</strong>
study we used as comparison (Saksvik et al. 2010). The significantly lower commitment, seen in
connection with high levels <strong>of</strong> over-commitment and stress, may be considered a threat to <strong>the</strong> future
health situation <strong>of</strong> <strong>the</strong> Polish sample. So far, however, we found no indication <strong>of</strong> impairment on <strong>the</strong>ir
mental health, which can be explained by <strong>the</strong> findings <strong>of</strong> <strong>the</strong> path analyses.
The SEM analyses demonstrate that apart from <strong>the</strong> common strong and general effect <strong>of</strong> reward, <strong>the</strong>
Polish samples incorporate very different explanatory routes for mental health in accordance with <strong>the</strong>
immigrant sample from <strong>the</strong> 2010-study and contrary to <strong>the</strong> native sample, which illustrated a
traditional demands-stress route for mental health. The Polish sample showed an interesting
additional route via commitment towards mental health, as well as a direct effect <strong>of</strong> over-commitment
reducing mental health problems. The reward to commitment route in <strong>the</strong> immigrant sample and <strong>the</strong>
direct effect <strong>of</strong> over-commitment on mental health sheds new light on <strong>the</strong> immigrant situation. It points
to immigrants’ mental health as more dependent on internal drive than external performance
demands and stress experience. And fur<strong>the</strong>r, that <strong>the</strong> Polish immigrants have a beneficial indirect
effect <strong>of</strong> reward via increased commitment that increases <strong>the</strong>ir mental health. I.e. <strong>the</strong>ir mental health
benefits from commitment in a way not found in native employees.
These results are easily understood by viewing immigrants as not wholly integrated in <strong>the</strong> native
culture. It is fair to assume that <strong>the</strong>se results are <strong>the</strong> product <strong>of</strong> cultural interpretational frames more
strongly determining individual ratings <strong>of</strong> actual working environments than is usually assumed in
most studies <strong>of</strong> predominately homogenous worker samples. Also, not being wholly integrated in <strong>the</strong>
native culture, <strong>the</strong> affective commitment to <strong>the</strong> workplace becomes more crucial for <strong>the</strong> immigrants’
mental health; <strong>the</strong>y are more vulnerable to experiences <strong>of</strong> lacking inclusion and belongingness. This
was also reported in <strong>the</strong> former study with ano<strong>the</strong>r immigrant sample (Saksvik et al. 2010), but <strong>the</strong>
paths were slightly different probably because <strong>the</strong> Polish sample had stayed a shorter time in Norway
and have practiced a form <strong>of</strong> ‘circular migration’ much more than <strong>the</strong> o<strong>the</strong>r sample and thus, had not
been so integrated in <strong>the</strong> work culture.
4.1 Implications on <strong>the</strong> organizational level
The implication <strong>of</strong> our findings for organizations employing labour migrants is that <strong>the</strong>ir managers
have to be aware <strong>of</strong> <strong>the</strong> differences between <strong>the</strong> staff <strong>the</strong>y have, and those coming from o<strong>the</strong>r
cultures. The organizational learning <strong>of</strong> <strong>the</strong> firms may involve both better insight in how commitment
develops and functions among this group, and also how <strong>the</strong>y are motivated in <strong>the</strong> form <strong>of</strong> salary and
status. This change is so fundamental that double loop learning, i.e. challenging <strong>the</strong> established
norms <strong>of</strong> <strong>the</strong> firm, has to be on <strong>the</strong> agenda (Argyris and Schön 1996). If managers are unaware <strong>of</strong> <strong>the</strong>
different identity-building functions <strong>of</strong> over-commitment and commitment for immigrants, <strong>the</strong>n <strong>the</strong>y will
likely not have <strong>the</strong> necessary social competence to understand and communicate in a type II
congruent manner. Not being sensitized to <strong>the</strong> different interpretational frames, <strong>the</strong> managers will
likely both misinterpret immigrant behavior as well as fail to address immigrants in a way conducive to
<strong>the</strong>m responding in a type II manner. Any language problems are likely to amplify this problem. If
managers are able to balance addressing cultural differences and maintaining an inclusive and open
cultural stance, different identity-building functions <strong>of</strong> over-commitment and commitment might be
exploited to address general discussions about internal norms and values; treating both native and
immigrant cultural stances with <strong>the</strong> "strange tribe" perspective <strong>of</strong>ten taken in anthropological studies
<strong>of</strong> western work cultures (Hirsch and Gellner, 2001).
It has been found that employing workers with temporary contracts, who are committed to <strong>the</strong>
company to a lesser degree, may be a threat to <strong>the</strong> internal systematic occupational health and safety
work (Eiken & Saksvik 2009). The lack <strong>of</strong> interest in <strong>the</strong> company itself to <strong>the</strong> expense <strong>of</strong> personal
ambitions and commitment should <strong>the</strong>refore be a signal <strong>the</strong> organization has to take precautions
towards. It seems that many temporary employees develop a more personal kind <strong>of</strong> work commitment
than <strong>the</strong> more well-known organizational commitment. This more personal commitment seems to be
directed towards <strong>the</strong>ir own career or pr<strong>of</strong>ession, not <strong>the</strong>ir present employer and <strong>the</strong> future situation for
<strong>the</strong> company (Heckscher 1995). Measuring different kinds <strong>of</strong> commitment, personal career
commitment versus organizational emotional commitment among <strong>the</strong> employees on a regular basis,
may prevent a negative development.
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Per Øystein Saksvik, Carla Dahl-Jørgensen et al
High over-commitment is a threat to <strong>the</strong> immigrant worker’s health and work environment, but
streng<strong>the</strong>ning <strong>the</strong> commitment <strong>of</strong> <strong>the</strong> firm may compensate <strong>the</strong> problem. The strategies <strong>of</strong> <strong>the</strong> firm to
achieve this can be to:
Integrate <strong>the</strong> immigrants better in <strong>the</strong> work environment, e.g. streng<strong>the</strong>n <strong>the</strong>ir coherence as units
or work groups with both natives and immigrants based on mutual trust (see e.g. Bijlsma-
Frankema 2001)
To have internal discussions about internal norms, values and identity in order to include <strong>the</strong>
perspectives <strong>of</strong> <strong>the</strong> migrant workers, i.e. also change <strong>the</strong> attitudes and behaviors <strong>of</strong> <strong>the</strong> natives
(see e.g. Cox Jr. 1991)
To investigate how a supportive climate in general can be streng<strong>the</strong>ned without necessarily
building on <strong>the</strong> emotional driven commitment to <strong>the</strong> firm. Building on positive psychological capital
has been found to mediate <strong>the</strong> effects <strong>of</strong> a supportive climate (Luthans, Norman, Avolio and Avey
2008)
An opposite strategy may <strong>of</strong> course be to accept <strong>the</strong> higher over-commitment among <strong>the</strong> immigrants,
i.e. treat <strong>the</strong>m unlike native workers, but watch <strong>the</strong>ir stress level close and even consider stress
reduction interventions on group or individual level (Nytrø, Saksvik, Mikkelsen, Quinlan, & Bohle
2000). This calls for very different organizational learning strategies and it is probably not possible to
combine with inclusion strategies.
The importance <strong>of</strong> over-commitment and reward had <strong>the</strong> most solid and dominating explanation <strong>of</strong>
effects found also in <strong>the</strong> native sample. Hence, <strong>the</strong>se two factors may be <strong>of</strong> more significance towards
understanding how work can best be organized in a modern work life. This can be seen in connection
to findings related to how justice is perceived (Hammer, Bayazit & Wazeter 2009). Justice is important
for how loyalty develops and when <strong>the</strong> imbalance between what you invest, in <strong>the</strong> form <strong>of</strong> hard work,
and what you get back, in <strong>the</strong> form <strong>of</strong> salary and status, is high, <strong>the</strong> possibility <strong>of</strong> lower loyalty exists.
This seems to be <strong>of</strong> equal importance for native and immigrant workers, but may be <strong>of</strong> special
importance for migrants since <strong>the</strong>y cannot rely so much on alternative paths.
It has been shown that <strong>the</strong> way migrants <strong>of</strong>ten are employed, through precarious employment, is
associated with several subjective health problems (Benavides, Benach, Diez-Roux, and Román
2000). On a higher level <strong>the</strong> firm can develop a policy on how to use <strong>the</strong> human capital <strong>of</strong> migrant
workers; what <strong>the</strong>ir long term strategy is. If <strong>the</strong>y, for example, want to hire only contract workers for
shorter periods <strong>of</strong> time, <strong>the</strong>y may treat <strong>the</strong>m as subgroups and treat <strong>the</strong>m individually. If <strong>the</strong>y want to
have <strong>the</strong>m for longer periods <strong>of</strong> time, <strong>the</strong>y should develop a policy for integration starting with <strong>the</strong>
recruitment process, how to socialize <strong>the</strong>m, how to develop good teams or work groups where
variation is accepted (Brett, Behfar, and Kern 2009), and to have a system for wages not creating
distance between migrants and o<strong>the</strong>rs (Hammer et al. 2009).
4.2 Methodical considerations
The variables in this study were measured using <strong>the</strong> same method (i.e., self-reports) and <strong>the</strong> same
source (i.e., employees). The dependence on self-reports through questionnaires causes various
problems (e.g., Frese 1985; Frese and Zapf 1988; Kasl 1998; Spector 1992). Mono-method and
common-source biases may account for parts <strong>of</strong> <strong>the</strong> relationships we found in this study, but we argue
that <strong>the</strong> relative intensity <strong>of</strong> relationships would still hold although <strong>the</strong> absolute strength <strong>of</strong>
relationships may have an upward bias.
The relatively small sample size <strong>of</strong> immigrants created some problems because <strong>the</strong> observed
differences between <strong>the</strong> groups were not very large although <strong>the</strong>y turned out to be significant for
some <strong>of</strong> <strong>the</strong> variables. Fur<strong>the</strong>r studies with larger samples from more sectors have to be conducted to
confirm <strong>the</strong> findings <strong>of</strong> this study, but our replication with a Polish sample indicated that <strong>the</strong>
differences observed in <strong>the</strong> first study, might be found in general.
A word <strong>of</strong> caution is necessary here in relation to <strong>the</strong> limitations <strong>of</strong> SEM analyses. They cannot test
<strong>the</strong> causality <strong>of</strong> <strong>the</strong> modelled structures, so <strong>the</strong> directions <strong>of</strong> relationships given in <strong>the</strong> models cannot
be taken for granted. Here <strong>the</strong> present study suffers from being limited to cross-sectional data.
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5. Conclusion
Per Øystein Saksvik, Carla Dahl-Jørgensen et al
The personal ambitions <strong>of</strong> <strong>the</strong> immigrants, measured as a higher level <strong>of</strong> over-commitment, plays an
important role in explaining <strong>the</strong> work identity <strong>of</strong> immigrant employees. This could have been a
possible threat to an increased level <strong>of</strong> stress leading to mental health problems, but commitment to
<strong>the</strong> firm <strong>the</strong>y work in has a compensating effect. We found, however, that <strong>the</strong> path from overcommitment
to commitment was not exactly alike in <strong>the</strong> two immigrant samples, what we interpreted
as having something to do with differences in length <strong>of</strong> stay in Norway between <strong>the</strong> two samples. For
those with <strong>the</strong> shortest stay commitment to <strong>the</strong> firm had no compensating effect and this increases <strong>the</strong>
risk for health problems. For both natives and immigrants, reward was an influential factor and may
have something to do with <strong>the</strong> feeling <strong>of</strong> (in-)justice in <strong>the</strong> modern work life for all employees. To fully
understand work identity and commitment and <strong>the</strong> association with stress and health, o<strong>the</strong>r models
may have been considered, but it is important to take into consideration <strong>the</strong> interesting difference
between <strong>the</strong> samples shown here when interventions to streng<strong>the</strong>n <strong>the</strong> work identity and prevent
health problems are discussed. Migrant workers represent a different human capital to modern
working organizations and <strong>the</strong> best organizational learning strategy should be decided; whe<strong>the</strong>r it is
best that <strong>the</strong> migrants should be fully integrated, treated as a subgroup and given stress coping
interventions or be hired as contractors’, ei<strong>the</strong>r as self-employed or from an employment business. If
no learning occurs in <strong>the</strong> firm <strong>the</strong>y work in, <strong>the</strong> migrants may represent a burden for <strong>the</strong> society in <strong>the</strong>
long run due to <strong>the</strong>ir lack <strong>of</strong> work identity and <strong>the</strong> health problems <strong>the</strong>y develop and even from <strong>the</strong>
society <strong>the</strong>y came from if <strong>the</strong>y return.
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Knowledge Management Process and Audit Firm’s
Performance: An Empirical Evidence
Kalsom Salleh 1 and Fathiah Hashim 2
1
Accountancy Research Institute & Faculty <strong>of</strong> Accountancy, Universiti
Teknologi MARA, Malaysia
2
Multimedia University, Cyberjaya, Malaysia
kalsom816@salam.uitm.edu.my
mdchom@yahoo.com
fathiah.hashim@yahoo.com
Abstract: This empirical research examines <strong>the</strong> relationship between knowledge management process and audit
firm’s performance. The auditor’s knowledge in <strong>the</strong> audit firm is essentially considered as <strong>the</strong> company’s
intellectual capital. Thus, it is essential to see <strong>the</strong> impact <strong>of</strong> KM process which includes knowledge creation and
acquisition, knowledge transfer and sharing, knowledge storage and retrieval, knowledge application and
knowledge protection as <strong>the</strong> main contributor to audit firm performances. This study investigated <strong>the</strong> impact <strong>of</strong>
KM process in audit firms in Malaysia through <strong>the</strong> survey questionnaires which were distributed to <strong>the</strong> audit firms
located in <strong>the</strong> major cities. The statistical results revealed that only two out <strong>of</strong> five types <strong>of</strong> KM process have
positive and significant relationships to <strong>the</strong> audit firm’s performance. The process for (1) knowledge creation and
acquisition and (2) knowledge storage and retrieval have emerged as <strong>the</strong> highly significant and moderately
significant factor respectively for <strong>the</strong> KM performance <strong>of</strong> <strong>the</strong> audit firm.
Keywords: KM process, auditors, audit firm’s performances
1. Introduction
Knowledge is <strong>the</strong> main capital for all organizations especially for knowledge-intensive firms such as
<strong>the</strong> pr<strong>of</strong>essional accounting and auditing firms, legal firms, engineering and computer consultancy
firms and research centres (Ditillo, 2004). Knowledge capital is considered as <strong>the</strong> most valuable asset
and it is used as <strong>the</strong> main driver to <strong>the</strong> organizational performance particularly in knowledge intensive
firms (Dunford, 2000).
For knowledge intensive firms, knowledge itself is <strong>the</strong> core product that <strong>the</strong> firms can sell to solve <strong>the</strong>ir
customer’s problems by providing intangible solutions using <strong>the</strong>ir knowledge capital (Ditillo, 2004).
Knowledge can be categorized broadly as ei<strong>the</strong>r explicit or tacit knowledge (Wyatt,2001). Explicit
knowledge consists <strong>of</strong> data or information repositories that can be obtained and shared easily. On <strong>the</strong>
o<strong>the</strong>r hand, tacit knowledge belongs to knowledge, expertise, ideas, skills and experience <strong>of</strong> <strong>the</strong> firm’s
employees (Salleh,2010; Wyatt,2001). Thus, <strong>the</strong> tacit knowledge in <strong>the</strong> form <strong>of</strong> intangible asset is
found to be more valuable for <strong>the</strong> knowledge intensive firms.
Although knowledge is <strong>the</strong> most important asset to <strong>the</strong> knowledge intensive firms, however, without
<strong>the</strong> focus on knowledge management (KM), <strong>the</strong> knowledge will become worthless to <strong>the</strong>se firms.
Many organizations fail to take notice on <strong>the</strong> importance <strong>of</strong> having a systematic process <strong>of</strong> managing
knowledge via KM practices. This may be due to <strong>the</strong>ir lack <strong>of</strong> understanding on <strong>the</strong> benefits <strong>the</strong>y may
gain from <strong>the</strong>ir investment in knowledge management process (KM process)(Fong & Choi,2009).
According to O’Leary (2000), KM is defined as <strong>the</strong> process to (1) capture knowledge, (2) convert
personal knowledge to group-available knowledge, (3) to connect people to people, people to
knowledge, knowledge to people, and knowledge to knowledge and (4) measure that knowledge to
facilitate management <strong>of</strong> resources and help understand its evolution.
KM is also defined in term <strong>of</strong> <strong>the</strong> process <strong>of</strong> acquisition, transfer, sharing and retention <strong>of</strong> knowledge
<strong>of</strong> an organization (Edwards, 2005). With an effective KM process, it can help <strong>the</strong> organization
toward achieving its goals as well as gaining competitive advantages (Massa & Testa, 2009; Daud &
Yuss<strong>of</strong>f, 2010). This research paper will <strong>the</strong>refore discuss <strong>the</strong> KM concept in <strong>the</strong> perspective <strong>of</strong> KM
process that will create value towards <strong>the</strong> organization’s performance (Daud & Yuss<strong>of</strong>f, 2010). KM
process is defined as those processes which include knowledge acquisition, knowledge conversion
and knowledge application, knowledge storage and retrievals (Argote, 2000; Arsenijevi, J. et al., 2009;
Daud & Yusuf, 2008; Fong & Choi, 2009 and Massa & Testa, 2009).
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Kalsom Salleh and Fathiah Hashim
Various previous studies had also identified <strong>the</strong> factors in <strong>the</strong> KM process such as (1) knowledge
creation and acquisition, (2) knowledge storage and retrieval, (3) knowledge transfer and sharing, (4)
knowledge application (Massa & Testa, 2009) and (5) knowledge protections (Daud & Yusuf, 2008;
Fong & Choi, 2009). Through <strong>the</strong> implementation <strong>of</strong> KM, <strong>the</strong> organization will enhance its firm’s
performance by ensuring <strong>the</strong> effectiveness <strong>of</strong> <strong>the</strong> KM process in <strong>the</strong> organization. Subsequently,
many studies have focused on <strong>the</strong> KM and <strong>the</strong> KM process in various industries such as higher
education organization (Hoveida et al., 2008; Krishnasamy, 2008), telecommunications industry
(Chong, et al., 2007), construction industry (Chen, 2007; Fong & Choi, 2009; Rasli, 2006; Wei &
Mohammed, 2005); small medium industry (Daud & Yusuf, 2008; Wong, 2005); aerospace industry
(Tat, 2007), health industry (Wyatt,2001) and food sector industries (Massa & Testa, 2009). Most <strong>of</strong>
<strong>the</strong> findings in prior studies reveal that KM process will significantly contribute to <strong>the</strong> successful
performance <strong>of</strong> <strong>the</strong> organizations.
However, <strong>the</strong>re are limited empirical studies that have discussed on <strong>the</strong> KM process in <strong>the</strong>
perspective <strong>of</strong> accounting and auditing firms and how this pr<strong>of</strong>essional services organization
manages its knowledge capital particularly in Malaysia. According to Empson (2001), accountants
and pr<strong>of</strong>essional consulting firms have usually been propelled into <strong>the</strong> forefront as exemplars <strong>of</strong> best
practice in <strong>the</strong> field <strong>of</strong> KM. This is because majority accounting and auditing firms have now become
aware that <strong>the</strong>y need to deliver excellent type <strong>of</strong> pr<strong>of</strong>essional services to <strong>the</strong>ir clients in order to be <strong>the</strong>
best provider/supplier(Kluwer, 2010). Hence, <strong>the</strong> KM and KM process in <strong>the</strong> audit firms may help to
facilitate <strong>the</strong> ability to access and share knowledge among <strong>the</strong> audit pr<strong>of</strong>essionals who are <strong>the</strong>n able
to effectively solve <strong>the</strong>ir clients’ problems.
Hence, this study purports to investigate <strong>the</strong> relationship between KM process and <strong>the</strong> audit firm’s
performance based on <strong>the</strong> five (5) types <strong>of</strong> KM process which include (1) knowledge creation, (2)
knowledge transfer and sharing, (3) knowledge storage and retrieval, (4) knowledge application and
(5) knowledge protection for <strong>the</strong> accounting and audit services firms in Malaysia.
1.1 Problem statement
In Malaysia, <strong>the</strong> implementation <strong>of</strong> KM began in <strong>the</strong> late 1990s by <strong>the</strong> multinational companies such
as Micros<strong>of</strong>t and Hewlett-Packard (Daud & Yus<strong>of</strong>f, 2010). These companies brought <strong>the</strong>ir KM
practices, processes and applications to be adopted and nurtured by <strong>the</strong> Malaysian business
environment. However, <strong>the</strong> main issue here is <strong>the</strong>re are different types <strong>of</strong> KM process to be applied
for <strong>the</strong> different type <strong>of</strong> business environment and its people (Arsenijevi, et al., 2009). Thus, <strong>the</strong>re is a
critical KM implementation issue to be addressed by <strong>the</strong> knowledge based company such as audit
firms in respect to <strong>the</strong> adoption <strong>of</strong> <strong>the</strong> most suitable KM process (Liebowitz, 1999) in <strong>the</strong>ir firms.
For pr<strong>of</strong>essional services firms, <strong>the</strong>ir business operations are in a fast moving environment that
required <strong>the</strong>m to compete with large competitors in <strong>the</strong> market (Ezingeard, et al. 2000) besides
helping <strong>the</strong>ir clients to gain a competitive advantage. Therefore, many <strong>of</strong> <strong>the</strong> Big Four Audit Firms
had spent huge amount <strong>of</strong> <strong>the</strong>ir revenues on KM process and systems (Ngah, et al., 2009; Akhavan
et al., 2006). Similarly, <strong>the</strong> Malaysian Big Four Audit Firms which are already exposed to KM
practices have followed what have been practiced by <strong>the</strong>ir international networks in o<strong>the</strong>rs countries
(Shaw & Pant, 2006).
However, it is very important to have a clear understanding on <strong>the</strong> type <strong>of</strong> KM processes that audit
firms should adopt and how to encourage <strong>the</strong> members in <strong>the</strong> firms to contribute to a better firm
performance (Salleh, 2010, Chen, 2007, Du, et al., 2007 and Zhi-hong & Da-wei, 2009). The
effectiveness and efficiency <strong>of</strong> <strong>the</strong> internal flow <strong>of</strong> <strong>the</strong> information among auditors can be best
achieved through <strong>the</strong> appropriate adoption <strong>of</strong> KM processes (Yang, 2010). It is very crucial for audit
firms to ensure that <strong>the</strong> knowledge bases <strong>of</strong> explicit knowledge and <strong>the</strong> transfer and sharing process
<strong>of</strong> tacit knowledge among auditors can be captured in order to support <strong>the</strong> stability <strong>of</strong> <strong>the</strong> client
services and organisational performance (Salleh,2010 & Yang, 2010).
Little attention has been given to <strong>the</strong> auditing and pr<strong>of</strong>essional services firm in relation to KM
practices (O’Leary, 2000; Whitmore & Albers, 2006). For such reason, this study aims to explore and
investigate on how <strong>the</strong> KM process will significantly influence on <strong>the</strong> audit firm’s performance in
Malaysia.
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1.2 Research objectives
Kalsom Salleh and Fathiah Hashim
With various significant findings on previous studies on <strong>the</strong> KM process and firm performances, this
study takes a narrow slice <strong>of</strong> <strong>the</strong> overall body <strong>of</strong> KM process literature as it is most applicable on <strong>the</strong>
accounting and pr<strong>of</strong>essional services environment (O’Leary, 2000). Therefore, this study aims to
examine <strong>the</strong> relationship between KM processes and audit firm’s performance by using <strong>the</strong> survey
method among <strong>the</strong> Big Four and Non-Big Four audit firms in Malaysia.
Many <strong>of</strong> <strong>the</strong> explored research findings on KM process show a significant impact on <strong>the</strong> KM process
to <strong>the</strong> successful performance <strong>of</strong> <strong>the</strong> company (Chourides et al., 2003, Du, et al., 2007 and Yu, et al.,
2004). Thus, it is vital to ensure that <strong>the</strong> KM process which include (1) knowledge creation, (2)
knowledge storage and retrieval, (3) knowledge transfer and sharing, (4) knowledge application and
(5) knowledge protections are properly put into place in <strong>the</strong> audit firm to ensure <strong>the</strong>ir service and
performance will be performed effectively as well as to ensure long term high performance standing.
This paper, <strong>the</strong>refore, examines how Malaysian audit firms can apply <strong>the</strong> KM process in order to
enhance <strong>the</strong> firm’s performance.
In audit firms, knowledge and management are core service products where <strong>the</strong>y provide and sell
<strong>the</strong>ir expertise to provide solutions to <strong>the</strong>ir customers. The expertise and solutions are not anything
more than knowledge. Thus, <strong>the</strong> main objective <strong>of</strong> this study is to investigate how <strong>the</strong> KM process will
have <strong>the</strong> significant effects on <strong>the</strong> audit firm’s performance with <strong>the</strong> following specific objectives:
To investigate <strong>the</strong> relationship between knowledge creation and acquisition and audit firm’s
performance.
To investigate <strong>the</strong> relationship between knowledge transfer and sharing and audit firm’s
performance.
To investigate <strong>the</strong> relationship between knowledge storage and retrieval and audit firm’s
performance.
To investigate <strong>the</strong> relationship between knowledge applications and audit firm’s performance.
To investigate <strong>the</strong> relationship between knowledge protections and audit firm’s performance.
1.3 Scope and limitations <strong>of</strong> <strong>the</strong> study
The scope <strong>of</strong> <strong>the</strong> study on <strong>the</strong> KM process and knowledge intensive firm’s performance may be
limited to this investigation on <strong>the</strong> pr<strong>of</strong>essional audit firms in Malaysia. This study will use <strong>the</strong> survey
method by sending questionnaires to audit firms around Malaysia which cover both Big Four and Non-
Big Four firms. This study focuses on <strong>the</strong> five processes <strong>of</strong> KM that include knowledge creation and
acquisitions, knowledge storage and retrieval, knowledge transfer and sharing, knowledge application
as well as knowledge protection toward firm performance.
Since this study focuses on pr<strong>of</strong>essional audit firms, <strong>the</strong>refore, <strong>the</strong> results <strong>of</strong> this study cannot be
generalized to o<strong>the</strong>r knowledge intensive organization and may not be appropriate especially to <strong>the</strong>
pr<strong>of</strong>essional accountants in o<strong>the</strong>r organizations (Chong, et al. 2007 & Taylor, et al., 2001).
2. Literature review
2.1 Knowledge Management
Until today, <strong>the</strong>re is no collective and standard definition that can describe what is KM. Basically, KM
can be defined as <strong>the</strong> process <strong>of</strong> managing <strong>the</strong> knowledge that an individual possesses (Ngah, et al.
2009) and <strong>the</strong> sharing <strong>of</strong> information throughout <strong>the</strong> organization. According to Murray & Zakharova
(2005), KM is defined as an effective and efficient process to create, acquire and share knowledge
and skills to be used to enhance <strong>the</strong> firm’s performance. It has also been stated that KM is a process
<strong>of</strong> accumulating knowledge, rational capabilities and experiences <strong>of</strong> organization’s people and <strong>the</strong>
organization’s ability to retrieve <strong>the</strong>m as <strong>the</strong> organizational assets (Monavvarian & Zahra, 2010).
Moreover, KM is also known as a process <strong>of</strong> enhancing firm performance by creating and acquiring,
sharing, storing and applying knowledge wherever it resides as well as protecting <strong>the</strong> knowledge in
<strong>the</strong> firm from being lost (Ngah et al. 2009).
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2.2 Knowledge Management process
Kalsom Salleh and Fathiah Hashim
It is crucial to implement KM process in <strong>the</strong> business environment especially to <strong>the</strong> knowledge based
firms or pr<strong>of</strong>essional firms which are knowledge - intensive firms where <strong>the</strong> firm can utilize and
capitalize <strong>the</strong> knowledge in all <strong>the</strong>ir transactions (Davis, 2000; Ngah, et al., 2009).
Based on <strong>the</strong> study conducted by Newman (1992), a basic model for <strong>the</strong> KM process has been
formulated. This model is parallel with <strong>the</strong> study by Massa & Testa (2009) where this model consists
<strong>of</strong> four main elements in <strong>the</strong> KM process which are knowledge creation, storage, transfer and
application. However <strong>the</strong> terms used in <strong>the</strong>se two models are slightly different. By realizing <strong>the</strong>
importance <strong>of</strong> knowledge as a key tool for firm performance, knowledge protection will now become
<strong>the</strong> additional essential element in <strong>the</strong> KM process (Ngah, et al., 2009; Zhi-hong & Da-wei, 2009) as
<strong>the</strong>re is some important information that needs to be protected from loss.
2.3 Knowledge Management performance
KM is <strong>the</strong> long-term operation strategy <strong>of</strong> knowledge based firms which can bring in <strong>the</strong> following
benefits: 1) to create new competitiveness for <strong>the</strong> firm, 2) to increase its pr<strong>of</strong>its, 3) to reduce its costs,
4) to improve its efficiency and 5) to construct its new culture (Zhi-hong & Da-wei,2009). Moreover,
by implementing KM process in <strong>the</strong> firms, it will add value to <strong>the</strong> firms and may gain <strong>the</strong> competitive
advantage (Massa & Testa, 2009). In order to achieve <strong>the</strong> objective <strong>of</strong> KM process, <strong>the</strong> firms have to
face challenges in terms <strong>of</strong> finance, time, culture and to maintain <strong>the</strong> momentum <strong>of</strong> KM practice in
firms (Ezingeard, et al., 2000). Thus, this requires a commitment and cooperation from <strong>the</strong> entire
individuals in <strong>the</strong> firms from <strong>the</strong> top line to bottom line staffs. The ability to face those challenges will
lead <strong>the</strong> firm to gain <strong>the</strong> benefit <strong>of</strong> KM such as enhancing staff productivity, improve productivity,
create a positive working environment throughout <strong>the</strong> knowledge sharing practice and a better team
work to enhance employee learning (Daud & Yus<strong>of</strong>f, 2010; Zhi-hong & Da-wei,2009).
Fur<strong>the</strong>rmore, <strong>the</strong> firms may benefit throughout <strong>the</strong> KM process that will assist <strong>the</strong>m to make better
decisions (Salleh, 2009). Therefore, <strong>the</strong> overall process <strong>of</strong> KM will significantly contribute to <strong>the</strong>
healthier performance <strong>of</strong> <strong>the</strong> firms in <strong>the</strong> long term. Thus, <strong>the</strong> success <strong>of</strong> KM process in <strong>the</strong>
knowledge based firms such as <strong>the</strong> pr<strong>of</strong>essional audit firm will highlight <strong>the</strong> future direction <strong>of</strong> <strong>the</strong>
subsequent KM projects which ultimately make firms improve <strong>the</strong>ir KM performances (Zhi-hong &
Da-wei,2009).
Therefore, <strong>the</strong> independent variables for this study are <strong>the</strong> five KM processes which are 1) <strong>the</strong>
knowledge creation and acquisitions (KCA), 2) knowledge transfer and sharing (KTS), 3) knowledge
storage and retrieval (KSR), 4) knowledge application (KA), 5) <strong>the</strong> knowledge protections (KP)
whereas <strong>the</strong> audit firm’s performance (AFP) is considered as <strong>the</strong> only dependent variable. Thus,
Figure 1 below demonstrates <strong>the</strong> proposed conceptual framework <strong>of</strong> this study with some elements <strong>of</strong>
KM process to measure audit firm’s performances.
Independent Variables Dependent Variable
Knowledge creation and acquisition
Knowledge transfer and sharing
Knowledge storage and retrieval
Knowledge application
Knowledge protection
Figure 1: Conceptual framework <strong>of</strong> KM process and audit firm’s performance
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Audit firm’s
performance

3. Research methodology
Kalsom Salleh and Fathiah Hashim
The conceptual framework for this study is adapted from <strong>the</strong> research framework developed by
Massa & Testa (2009) which was modified and adjusted by <strong>the</strong> study performed by Daud & Yusuf
(2008) and Ngah, et al.,(2009). For this study, <strong>the</strong> audit firm’s performance is considered as <strong>the</strong>
dependent variable (Daud & Yusuf 2008; Ngah, et al.,2009) whilst <strong>the</strong> independent variables are <strong>the</strong>
KM process (Arsenijevi, et al., 2009) which include <strong>the</strong> knowledge creation and acquisition,
knowledge transfer and sharing, knowledge storage and retrieval, knowledge application as well as
knowledge protection.
The empirical research was carried out based on <strong>the</strong> quantitative method using a survey
questionnaire ( Salleh, 2010; Salleh, 2009) to review <strong>the</strong> relationship between KM processes and
audit firm’s performance. The questionnaire was adapted based on five KM processes and KM
performance. To accomplish <strong>the</strong> purpose <strong>of</strong> this study, a list <strong>of</strong> auditors in Malaysia was obtained from
<strong>the</strong> Malaysian Institute <strong>of</strong> Accountants Member Firms Directory on <strong>the</strong> 21 st January 2011.
In this study, <strong>the</strong> multiple question items in <strong>the</strong> questionnaire were adapted based on <strong>the</strong> literature
review and previous studies <strong>of</strong> KM processes and firm’s performances (Salleh, 2009; Salleh, et.al,
2009; Daud & Yus<strong>of</strong>f, 2010; Ismail & Abidin, 2009; Fong & Choi, 2009; Massa & Testa, 2009). The
respondents were asked to indicate which validated measures <strong>of</strong> <strong>the</strong> five components <strong>of</strong> <strong>the</strong> KM
process contribute towards <strong>the</strong> audit firm’s performance on a scale from ‘1’ to ‘5’, where ‘1’ represents
strongly disagree, ‘3’ represents neutral and ‘5’ represents strongly agree.
For this research paper, <strong>the</strong> summary <strong>of</strong> study variables with <strong>the</strong> validated measures and <strong>the</strong> sources
<strong>of</strong> literature review are summarized in Table 1.
Table 1: Valid measurements <strong>of</strong> KM process and firm’s performance
Study Variables Validated Measures Authors
Knowledge creation
and acquisition
Knowledge transfer
and sharing
Knowledge storage
and retrieval
5 question items are used to measure <strong>the</strong> training,
communication and technology
6 question items are used to measure on <strong>the</strong>
disseminating information ei<strong>the</strong>r from tacit or
explicit knowledge
5 question items are used to measure on <strong>the</strong>
connectivity system from people to knowledge and
easy accessibility using KMS
Knowledge application 5 question items are used to measure <strong>the</strong>
application <strong>of</strong> knowledge in practice for better
business operation
Knowledge protection 5 question items are used to measure <strong>the</strong>
protection <strong>of</strong> intellectual capital from losses
KM performance 15 question items <strong>of</strong> KM benefits are used to
measure KM performance <strong>of</strong> <strong>the</strong> organization such
as <strong>the</strong> competitive advantage, <strong>the</strong> increase in
productivity, improved product/services, improved
process, better decision making, teamwork,
employee learning, cost saving, etc.
Massa & Testa (2009); Su &
Wu (2000)
Salleh (2010); Ismail & Yus<strong>of</strong>
(2010)
Chong, et al.(2007); Child &
Shumate (2007)
Salleh (2010); Ibrahim & Reid
(2009); Tat (2007)
Daud & Yus<strong>of</strong>f, 2010; Ngah et
al., 2009
Massa & Testa, (2009),
Salleh et al. (2009), Salleh
(2009), Daud & Yus<strong>of</strong>f (2010),
Carrillo, et al. (2003), Fugate,
et al. (2009), Ho(2009)
Table 2 shows that only 82 out <strong>of</strong> 169 questionnaires distributed or 49% <strong>of</strong> <strong>the</strong> response rate were
obtained for data analysis after many reminders had been made through phone calls and emails.
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Kalsom Salleh and Fathiah Hashim
Table 2: Summary <strong>of</strong> distribution and collection <strong>of</strong> questionnaires
Type <strong>of</strong> Audit
Firms
Numbers <strong>of</strong> Audit
Firms contributed
Numbers <strong>of</strong> questionnaires
distributed
Numbers <strong>of</strong> questionnaires
returned and analyzed
Big 4 10 40 27 (33%)
Non-Big 4 36 129 55 (67%)
Total 46 169 82 (100%)
4. Data analysis and discussion
In this study, <strong>the</strong> demographic questions for this study consists <strong>of</strong> <strong>the</strong> gender <strong>of</strong> <strong>the</strong> respondents,
race, age levels <strong>of</strong> educations and qualification, division and type <strong>of</strong> audit firms as well as <strong>the</strong> years <strong>of</strong>
working experience in audit firms.
For <strong>the</strong> gender <strong>of</strong> <strong>the</strong> respondents, it showed that females dominate <strong>the</strong> respond about 73.2% or 60
respondents while only 26.8% are males. This result is contradicted with <strong>the</strong> study by Ismail & Abidin
(2009) where <strong>the</strong> respondents from <strong>the</strong> audit pr<strong>of</strong>ession in Malaysia is being dominated by male
auditors.
About 56 (68%) <strong>of</strong> <strong>the</strong> respondents are 26 years old and above, while <strong>the</strong> remaining respondents are
below <strong>the</strong> age <strong>of</strong> 26 (32%). Majority (60%) <strong>of</strong> <strong>the</strong> respondents are holding degree qualification while
15% <strong>of</strong> <strong>the</strong>m are having master degree and 16% holding pr<strong>of</strong>essional accounting qualifications
(ACCA, MACPA, CIMA, and CPA) and diploma holders <strong>of</strong> 9%. The highest level <strong>of</strong> education <strong>of</strong> <strong>the</strong>
respondents is <strong>the</strong> Doctorate (PhD) qualification (2%).
The respondents in this study are made <strong>of</strong> people who have accounting qualifications and work at an
audit firm ei<strong>the</strong>r in <strong>the</strong> Big 4 and Non-Big 4 audit firms. There are 55 respondents (67%) from <strong>the</strong> non-
Big 4 and 27 respondents (33%) are from <strong>the</strong> Big 4 audit firms. It is found that 78% <strong>of</strong> <strong>of</strong> <strong>the</strong>
respondents are working in <strong>the</strong> audit and assurance division at different level <strong>of</strong> job positions i.e.
audit assistant (30%), junior auditors (20%), and senior auditor (22%) and audit manager (6%).
However, <strong>the</strong> remaining respondents <strong>of</strong> 22% are working in non-audit positions tax assistants and
management executives.
In terms <strong>of</strong> working experience in <strong>the</strong> audit firms, majority <strong>of</strong> <strong>the</strong> respondents (87%) have working
experience ranging from 1 to 5 years. However, only 12 % <strong>of</strong> <strong>the</strong> respondents working for 5 to 10 year
and 1 percent having an experience between 11-15 years.
The Cronbach's Alpha procedure is used to verify <strong>the</strong> reliability <strong>of</strong> <strong>the</strong> data and study variables <strong>of</strong> this
empirical research. The closer <strong>the</strong> Cronbach's Alpha to 1, <strong>the</strong> higher <strong>the</strong> internal consistency reliability
(Sekaran, 2000). The Cronbach′s Alpha coefficient for each study variable is presented in Table 3.
Table 3: Coefficient <strong>of</strong> Cronbach′s Alpha
Variables
Number <strong>of</strong> Items
Cronbach’s
Alpha Coefficients
Knowledge creations and acquisition (KCA) 5 0.755
Knowledge Transfer and Sharing (KTS) 6 0.762
Knowledge Storage and Retrieval (KSR) 5 0.792
Knowledge
Application (KA)
Knowledge
Protection (KP)
Audit Firm
Performance (AFP)
5 0.775
5 0.773
15 0.914
Factor Analysis is used to confirm that all <strong>of</strong> <strong>the</strong> five KM processes are valid and are in conformity to
<strong>the</strong> literature review and prior empirical evidences. A principal component analysis (PCA) with
varimax rotation is used on <strong>the</strong> 26 questions related to KM processes and KM performance. The
473

Kalsom Salleh and Fathiah Hashim
value <strong>of</strong> Kaiser-Meyer-Olkin measure <strong>of</strong> sampling Adequacy (KMO = 0.807) which is above <strong>the</strong>
acceptable limit 0.5 (Field, 2009) and <strong>the</strong> Barlett’s Test <strong>of</strong> Sphericity χ² (325) = 1111.176, p < .0001 is
significant to indicate that <strong>the</strong> correlation between <strong>the</strong> items were sufficiently large and <strong>the</strong>refore
factor analysis is considered appropriate. Those study variables with factor loadings greater than 0.5
are included for fur<strong>the</strong>r statistical analysis such as correlations test and multiple regression analysis.
Correlations between independent variables are observed as one <strong>of</strong> <strong>the</strong> assumptions for <strong>the</strong> primary
use <strong>of</strong> <strong>the</strong> multiple regression analysis. Correlation analysis in Table 4 is performed to explain <strong>the</strong>
strong point and trend (positive or negative) <strong>of</strong> <strong>the</strong> linear relationship between <strong>the</strong> two variables. The
result <strong>of</strong> Pearson Correlations reveals <strong>the</strong> strong correlations between all <strong>of</strong> KM Processes and <strong>the</strong>
audit firm performance without <strong>the</strong> existence <strong>of</strong> multicollinearity (Arsenijevi, et al., 2009).
Table 4: Correlations <strong>of</strong> KM process and audit firm performance
1
2
3
4
5
6
Knowledge Creation
and Acquisition
Knowledge Transfer
and sharing
Knowledge Storage
and Retrieval
Knowledge
Creation &
acquisition
1.000
Knowledge
Transfer &
sharing
.533** 1.000
Knowledge
storage &
retrieval
.564** .569** 1.000
Knowledge
Application
Knowledge Application .650** .589** .649** 1.000
Knowledg
e
Protection
Knowledge Protection .454** .456** .668** .399** 1.000
Audit Firm
Performance
**Correlation is significant at <strong>the</strong> 0.01 level (2-tailed).
Audit Firm
Performance
.717** .466** .602** .519** .451** 1.000
The relationship between KM Process and audit firm’s performance is analyzed by using <strong>the</strong> standard
multiple regression. The regression model for this study as follow:-
AFPi = β + β1 KCA + β2 KTS + β3 KSD + β4 KA+ β5 KP + ε i
0
Where,
AFPi = Audit Firm Performance
KCA = Knowledge creations and acquisition
KTS = Knowledge Transfer and Sharing
KSR = Knowledge Storage and Retrieval
KA = Knowledge Application
KP = Knowledge Protection
In <strong>the</strong> standard multiple regression analysis, <strong>the</strong> audit firm’s performance is considered as <strong>the</strong>
dependent variable where <strong>the</strong> independent variables i.e. 5 types <strong>of</strong> KM process i.e. 1) knowledge
creation and acquisition, 2) knowledge transfer and sharing, 3) knowledge storage and retrieval, 4)
knowledge application and 5) knowledge protection. As a result, <strong>the</strong> five <strong>of</strong> KM processes explained
54.6% <strong>of</strong> <strong>the</strong> total variances in <strong>the</strong> audit firm’s performance (dependent variable) on <strong>the</strong> KM process
with adjusted R-Square <strong>of</strong> 0.546. Thus, <strong>the</strong> regression model explained that 54.6% <strong>of</strong> <strong>the</strong> variations in
<strong>the</strong> audit firm’s performance have been significantly explained by <strong>the</strong> five independent variables or
KM processes. This model has a significant F-statistic <strong>of</strong> 20.447 and a significant p-value <strong>of</strong> 0.00.
Thus, <strong>the</strong>re is a relationship between <strong>the</strong> five <strong>of</strong> KM processes on <strong>the</strong> audit firm performance.
To compare <strong>the</strong> contribution <strong>of</strong> each <strong>of</strong> five KM process in measuring audit firm’s performance, this
study used <strong>the</strong> Standardize Beta Coefficient. By looking at <strong>the</strong> standardized beta coefficients as
shown in table 5, <strong>the</strong> largest beta value is 0.575 (p-value = 0.000), which is for knowledge creation
and acquisition and <strong>the</strong>n followed by knowledge storage and retrieval with beta value 0.308 (p-value
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Kalsom Salleh and Fathiah Hashim
0.015). This indicates that 1) knowledge creation and acquisition and 2) knowledge storage and
retrieval have <strong>the</strong> strongest relationship with audit firms performance at 1% and 5% test <strong>of</strong>
significance respectively.
Table 5: Summary <strong>of</strong> standard multiple regression analysis
KM Process B Beta Significance
Knowledge Creation and acquisition .548 .575 .000**
Knowledge Transfer and sharing .020 .024 .809
Knowledge storage and retrieval .245 .308 .015*
Knowledge Application -.057 -.069 .552
Knowledge Protection .000 .000 .998
Adjusted R-Square
.546
Dependent Variable: Audit Firm Performance: * significant p < 0.050 and ** significant p < 0.000
Therefore, two KM processes namely 1) knowledge creation and acquisition and 2) knowledge
storage and retrieval have emerged as highly significant and moderately significant factors in
explaining <strong>the</strong> overall KM process on audit firm’s performance in Malaysia. Knowledge creation and
acquisition process is reported as highly, positively and significantly related to <strong>the</strong> audit firm’s
performance (dependant variable) at 1% level <strong>of</strong> significance. However, knowledge storage and
retrieval with p-value <strong>of</strong> 0.015 is moderately significant and positively associated with KM process on
<strong>the</strong> audit firm’s performance at 5% level <strong>of</strong> significant test. The regression result also implies <strong>the</strong>
importance <strong>of</strong> KM process such as knowledge creation and acquisition and knowledge storage and
retrieval towards better audit firm’s performance.
5. Conclusion and future research
This study discovered that only two (2) out <strong>of</strong> <strong>the</strong> five (5) KM processes are found to be valid KM
process to enhance <strong>the</strong> audit’s firm performance i.e. 1) knowledge creation and acquisition and 2)
knowledge storage and retrieval. Thus, <strong>the</strong>se identified two <strong>of</strong> KM process in <strong>the</strong> audit firm are <strong>the</strong>
main contributory factors and have significant impacts to <strong>the</strong> audit firm’s performance. It also
indicates that <strong>the</strong> audit firm is essentially required to create and acquire more knowledge to serve
<strong>the</strong>ir clients better as well as to have many types <strong>of</strong> knowledge bases for knowledge storage for
greater firm performance. The findings also provide empirical evidence to highlight that knowledge is
dynamic and constantly changing that may require <strong>the</strong> audit staff and expertise to update <strong>the</strong>ir
knowledge through many sources <strong>of</strong> knowledge bases.
Since <strong>the</strong> information and knowledge in <strong>the</strong> audit firms is considered valuable and confidential, it is
<strong>the</strong>refore equally important for <strong>the</strong> audit firms to have a good design <strong>of</strong> knowledge bases for
knowledge storage and retrieval process <strong>of</strong> <strong>the</strong>ir internal expertise knowledge bases and for <strong>the</strong>ir
client company’s information.
For future research, it is strongly recommended for <strong>the</strong> increasing number <strong>of</strong> respondents in <strong>the</strong>
sample population in order to provide more reliable data analysis for significant findings. Secondly,
<strong>the</strong> future study should also focus on <strong>the</strong> senior auditors or more experienced staff in <strong>the</strong> audit firms in
order to have more accurate and reliable findings.
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477

Value Creation Through Knowledge Management And
Intellectual Capital: An Empirical Investigation
Kalsom Salleh and Ching Choo Huang
Accounting Research Institute and Universititi Teknologi MARA, Shah Alam,
Malaysia
mdchom@yahoo.com
kalsom816@salam.uitm.edu.my
Ching599@salam.uitm.edu.my
Abstract: Intellectual Capital (IC) is a combination <strong>of</strong> a company’s human, organisational and relational
resources. It includes knowledge, skills, experiences and abilities <strong>of</strong> employees, research and development
(R&D) activities, organisational routines, procedures, systems, databases and its intellectual property rights, as
well as resources that link to external relationships, such as <strong>the</strong> relationships between <strong>the</strong> company and <strong>the</strong>ir
customers, suppliers and R&D partners. Knowledge Management (KM), on <strong>the</strong> o<strong>the</strong>r hand, is about <strong>the</strong> ‘flow <strong>of</strong>
knowledge’ from individual learning to organisational learning through value creating KM factors or KM enablers
to enhance organisational performance. The integration role <strong>of</strong> KM and IC can keep a company’s body <strong>of</strong>
knowledge or stock <strong>of</strong> intangibles ‘alive and dynamic’ in order to optimise <strong>the</strong> organisational performance and to
secure <strong>the</strong> enterprise’s long term viability. Hence, <strong>the</strong> objective <strong>of</strong> this paper is to explore <strong>the</strong> KM factors and IC
items deemed important to Malaysian companies in value creation and also to examine <strong>the</strong> importance <strong>of</strong> KM
and IC on company performance. A questionnaire survey was carried out on Malaysian public listed companies
(PLCs) to examine <strong>the</strong> extent to which KM factors and IC components contribute to <strong>the</strong> future value creation
strategies <strong>of</strong> <strong>the</strong>se companies. This paper contributes to <strong>the</strong> body <strong>of</strong> knowledge as it integrates both IC and KM
research on corporate performance and value creation.
Keywords: knowledge management, intellectual capital, value creation, public listed companies, Malaysia
1. Introduction
In <strong>the</strong> knowledge-based economy (k-Economy), knowledge and intellectual capital (IC) are key and
significant resources to achieving competitive advantage (Ortiz, 2006, Marr et al., 2003). According to
Huang et al. (2010), <strong>the</strong> value <strong>of</strong> companies lies not only in physical assets but in <strong>the</strong> intangible
assets such as knowledge and IC. Knowledge and IC are also key indicators <strong>of</strong> a company’s capacity
to create future value. As companies place a greater emphasis on <strong>the</strong>ir intangible assets, resources
such as knowledge and IC need to be monitored, managed and developed efficiently and
incorporated into <strong>the</strong>ir corporate strategies towards sustainability. Consequently, companies have
given considerable attention to <strong>the</strong> management <strong>of</strong> IC and knowledge management (KM) and
research concerning KM and IC has grown tremendously in both <strong>the</strong> academic and business worlds
in <strong>the</strong> last few decades.
IC is a combination <strong>of</strong> a company’s human, organisational and relational resources. According to
Stewart (1997: 12) IC comprises ‘intellectual material – knowledge, information, intellectual property
and experience – that can be put to use to create wealth’. KM, on <strong>the</strong> o<strong>the</strong>r hand, is about <strong>the</strong> ‘flow <strong>of</strong>
knowledge’ from individual learning to organisational learning through value creating KM factors or
KM enablers to enhance organisational performance. Therefore, <strong>the</strong>re is a need to integrate <strong>the</strong>
knowledge management (KM) and intellectual capital (IC) concepts in <strong>the</strong> organisation’s management
considerations for strategic and tactical perspectives in order to bring about a synergy potential in <strong>the</strong>
value creation <strong>of</strong> organisational capabilities (Salleh, 2008). It is <strong>the</strong> role <strong>of</strong> KM and IC to keep <strong>the</strong> body
<strong>of</strong> knowledge <strong>of</strong> <strong>the</strong> organisation alive and vibrant like a living organism to secure <strong>the</strong> organisation’s
long term viability (Wiig, 1997a).
A number <strong>of</strong> studies concerning IC and KM (Bontis et al., 2000; Salleh, 2008, Huang et al., 2010;
Chong et al., 2011) have been conducted in Malaysia. However, <strong>the</strong>se studies focused ei<strong>the</strong>r on IC or
KM. There is lack <strong>of</strong> studies examining both IC and KM toge<strong>the</strong>r. This paper attempts to integrate
both IC and KM on <strong>the</strong> performance <strong>of</strong> Malaysian public listed companies (PLC). According to Wiig
(1997a) and Chatzkel (2000), <strong>the</strong> role <strong>of</strong> <strong>the</strong> integration approach is to keep <strong>the</strong> companies’
knowledge or stock <strong>of</strong> intangible assets or IC ‘alive and dynamic’ in order to optimise <strong>the</strong>
organisational performance and to secure <strong>the</strong> enterprise’s long term viability. Both IC and KM are
expected to be incorporated into IC management goals as well as in <strong>the</strong> management <strong>of</strong> knowledge
processes (Van Buren, 1999). Employing both IC and KM on corporate performance and value
creation on Malaysian companies is <strong>the</strong> main contribution <strong>of</strong> this paper. Such approach should
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Kalsom Salleh and Ching Choo Huang
provide a more complete picture on <strong>the</strong> companies’ financial performance. In addition, <strong>the</strong> findings <strong>of</strong>
this paper should help companies to identify <strong>the</strong>ir knowledge characteristics and KM activities which
are deemed conducive for <strong>the</strong> development and management <strong>of</strong> <strong>the</strong>ir IC and knowledge.
Hence, <strong>the</strong> objective <strong>of</strong> this paper is to explore <strong>the</strong> KM factors and IC items deemed important to
Malaysian companies in value creation and also to examine <strong>the</strong> importance <strong>of</strong> KM and IC on
company performance. The paper is structured as follows. The next section reviews literature related
to IC and KM. This is followed by a discussion on <strong>the</strong> research method. Subsequent section
comprises findings and discussion. The paper <strong>the</strong>n ends with <strong>the</strong> conclusion and recommendations
for future research.
2. Literature reviews
As IC is a key strategic asset for organisational performance, how IC is managed is critical to
enterprises in <strong>the</strong> k-Economy era. In line with <strong>the</strong> management <strong>of</strong> IC, Wiig (1997b) proposes <strong>the</strong>
concept <strong>of</strong> Intellectual Capital Management (ICM) which focuses on building, renewing and
maximising <strong>the</strong> value <strong>of</strong> <strong>the</strong> organisation’s intellectual assets. On <strong>the</strong> o<strong>the</strong>r hand, KM focuses on
managing and leveraging <strong>the</strong> organisation’s IC (such as human resource) that can be transformed
into value creation capability <strong>of</strong> an organisation through <strong>the</strong> embedded IC (Salleh, 2008). Petty and
Guthrie (2000) pointed out that KM is about <strong>the</strong> management <strong>of</strong> IC controlled by an organisation and
<strong>the</strong>y fur<strong>the</strong>r described KM as a function (action) to manage <strong>the</strong> IC (object).
In <strong>the</strong> KM literature, knowledge is regarded as a process <strong>of</strong> applying expertise and <strong>the</strong> concept <strong>of</strong> KM,
focusing on knowledge flow through <strong>the</strong> process <strong>of</strong> creation, sharing as well as distributing knowledge
(Alavi and Leidner, 2001). In o<strong>the</strong>r words, KM is more concerned with <strong>the</strong> ‘flow’ <strong>of</strong> knowledge from
individual learning to organisational learning through value creating KM enablers and KM processes
that can lead to better organisational performance (Edwards et al., 2005). KM is also recognised as
<strong>the</strong> fundamental activity for obtaining, growing and sustaining IC in <strong>the</strong> organisations. KM is ‘handson’
and is to manage effective knowledge processes with <strong>the</strong> overall aim to maximise <strong>the</strong>
organisation’s knowledge-related effectiveness, returns from its knowledge assets and to renew <strong>the</strong>m
constantly (Wiig, 1997b).
The concept, integration between KM and IC was initially contributed by Wiig (1997a) and Van Buren
(1999). According to <strong>the</strong>m, <strong>the</strong>re is a need to manage intangible assets actively in order to optimise
<strong>the</strong> performance <strong>of</strong> organisations. The stocks <strong>of</strong> <strong>the</strong>se intangible assets, comprise human capital,
structural capital and customer capital are connected and grow as exchanges <strong>of</strong> knowledge between
<strong>the</strong> individuals, organisation and customers take place. It was proposed that <strong>the</strong> knowledge strategy
in <strong>the</strong> KM implementation should gear towards building <strong>the</strong> capabilities <strong>of</strong> <strong>the</strong>se assets and <strong>the</strong>
relationships between <strong>the</strong>m in <strong>the</strong> organisations. The growth <strong>of</strong> <strong>the</strong>se intangible assets in turn shall
determine <strong>the</strong> economic performance <strong>of</strong> <strong>the</strong> organisation. Thus, IC is a representation <strong>of</strong> <strong>the</strong> stocks <strong>of</strong>
intangible assets whilst knowledge flow in KM is referred to as <strong>the</strong> electric current that runs between
<strong>the</strong> stocks <strong>of</strong> intangible assets which cause growth to <strong>the</strong> human, structural and customer capital
(Wiig, 1997a and 1997b). As such, KM is seen as <strong>the</strong> process <strong>of</strong> managing <strong>the</strong> IC or knowledgebased
intangible assets. In supporting this view, Petty and Guthrie (2000, p. 159) state that KM is
about <strong>the</strong> management <strong>of</strong> IC controlled by an organisation and KM is a function (action) to manage
<strong>the</strong> IC (object).
In addition, it is practically important to align <strong>the</strong> KM activities with <strong>the</strong> IC results that have been
targeted (Wiig, 1997a). KM and managing IC should be integrated at an early stage to monitor its
progress and to achieve <strong>the</strong> desired business results. There is a need to set priorities and to motivate
employees and to improve <strong>the</strong>ir value creation capabilities in <strong>the</strong>ir work to enhance <strong>the</strong> organisation’s
long term viability.
3. Methodology
3.1 Sample
A mail survey was conducted on Malaysian companies listed in <strong>the</strong> Malaysian Market in 2011.
Questionnaires were posted to a total <strong>of</strong> 1,500 companies. A total <strong>of</strong> 66 questionnaires were received.
However, only 57 questionnaires were usable for <strong>the</strong> analysis.
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Kalsom Salleh and Ching Choo Huang
Table 1 shows <strong>the</strong> current position <strong>of</strong> <strong>the</strong> respondents <strong>of</strong> this study. Even though <strong>the</strong> questionnaires
were directed to <strong>the</strong> chief executive <strong>of</strong>ficers, only six respondents were <strong>of</strong> this position. The majority
(41%) <strong>of</strong> <strong>the</strong> respondents are non-financial managers. Their responses should be relevant as <strong>the</strong>se
managers could be involved in <strong>the</strong> management <strong>of</strong> IC and knowledge in <strong>the</strong>ir companies.
Table 1: Current position <strong>of</strong> respondents
Current Position <strong>of</strong> Respondents
Current Position Number Percentage (%)
Chief executive <strong>of</strong>ficer/financial controller 6 10
Non-financial managers 23 41
Executives 5 9
Directors 10 18
Finance managers 6 10
Accountant 1 2
Not stated 6 10
Total 57 100
3.2 Questionnaire design
A questionnaire was designed for <strong>the</strong> study. Besides demographic data, four main questions were
developed in <strong>the</strong> questionnaire. The first question concerns <strong>the</strong> importance <strong>of</strong> KM factors in
contributing towards value creation <strong>of</strong> <strong>the</strong> companies. The second question is regarding <strong>the</strong>
importance <strong>of</strong> IC items in contributing towards value creation. The third question asks about <strong>the</strong>
importance <strong>of</strong> KM and IC on company performance. The fourth question focuses on <strong>the</strong> extent to
which financial performance is influenced by KM and IC. A seven point scale from 1 to 7 was used for
<strong>the</strong> first three questions, where “1” is for “no importance” and “7” is for “crucial importance”. The last
question used a seven point scale where “1” is for “strongly disagree” and “7” for “strongly agree” was
employed for <strong>the</strong> last question.
KM and IC variables were incorporated into <strong>the</strong> questionnaire by adapting from <strong>the</strong> lists developed by
Salleh (2008) and Huang et al. (2007) respectively. A total <strong>of</strong> 36 KM factors and 30 IC items were
finalised and incorporated into <strong>the</strong> questionnaire. As <strong>the</strong>se variables were already tested by Salleh
(2008) and Huang et al. (2007) on Malaysian firms, <strong>the</strong>y are deemed relevant and valid to <strong>the</strong>
Malaysian scenarios.
Reliability test was <strong>the</strong>n conducted on <strong>the</strong> KM and IC items. As <strong>the</strong> Cronbach’s Alpha was 0.948
which is above 0.8, <strong>the</strong> items for IC and KM were not eliminated.
The following are <strong>the</strong> components <strong>of</strong> KM activities incorporated in <strong>the</strong> questionnaire:
Learning - ICT know-how & skill, job training, feedback on performance evaluation, learning
opportunities, information sourcing opportunities and teamwork & empowerment.
Leadership - organisational policy, leadership support and commitment and ability to nurture
knowledge sharing culture.
Technology - adequacy <strong>of</strong> ICT infrastructure & s<strong>of</strong>tware and KM technologies application.
KM process - <strong>the</strong> process <strong>of</strong> knowledge creation, knowledge sharing, knowledge retention and
knowledge application.
The components <strong>of</strong> IC stocks incorporated in <strong>the</strong> questionnaire are as below:
Human Capital - employee capability, employee development and retention and employee
behavior
Structural Capital - organisational infrastructure
Innovation Capital - development <strong>of</strong> product and ideas
Relational Capital - customer relationship database, supplier relationship database and o<strong>the</strong>r
related relationship database.
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Kalsom Salleh and Ching Choo Huang
Statistical Package for Social Sciences (SPSS) version 17 was employed to analyze <strong>the</strong> data
collected.
4. Findings and discussion
4.1 Top ten KM factors
The respondents were asked to indicate which KM factors contribute towards <strong>the</strong> value creation <strong>of</strong>
<strong>the</strong>ir companies on a scale from ‘1’ to ‘7’, where ‘1’ represents no importance and ‘7’ represents
crucial importance. Table 2 shows <strong>the</strong> top ten KM factors which are regarded as important to
corporate value creation.
Table 2: Top Ten KM factors contributing to value creation
Top Ten KM Factors Contributing to Value Creation Rank Mean Std.
Dev.
Top management leadership and commitment towards knowledge management 1 6.09 1.057
A spirit <strong>of</strong> co-operation and teamwork 2 6.05 0.953
Email is used to share information with o<strong>the</strong>r <strong>of</strong>ficers within and across divisions 3 5.96 1.061
ICT infrastructure and information systems can speed up <strong>the</strong> daily work in
searching for information
4 5.89 0.9
Leaders encourage managers to be coaches, mentors and facilitators <strong>of</strong> learning 5 5.84 1.082
Leaders encourage collaboration and team learning 6 5.82 0.984
Adequate training internally to use ICT tools, information systems and
computerized accounting system
7 5.81 1.141
Top management encourages formal and informal communication channels 8 5.79 1.098
User friendliness and effectiveness <strong>of</strong> information systems infrastructure 9 5.77 0.945
Leaders provide a climate <strong>of</strong> openness and have a culture <strong>of</strong> empowerment and
feedback
10 5.72 1.206
This study found that leadership in relation to KM principles is vital to Malaysian firms. In Table 2, five
(5) leadership components are ranked among <strong>the</strong> top ten KM factors contributing to value creation:
Top management leadership and commitment towards KM
Leaders encourage managers to be coaches, mentors and facilitators <strong>of</strong> learning
Leaders encourage collaboration and team learning
Top management encourages formal and informal communication channels
Leaders provide a climate <strong>of</strong> openness and have a culture <strong>of</strong> empowerment and feedback
This finding appears to be consistent with <strong>the</strong> previous studies carried out by Salleh (2008) and
Chong et al. (2011) on <strong>the</strong> KM enablers in Malaysian public organisations which revealed that <strong>the</strong>
leadership support for knowledge sharing culture is essentially important for KM implementation
strategy.
Leadership in <strong>the</strong> KM environment is responsible for practising strategic management planning and
systems thinking approaches, making best use <strong>of</strong> resources to share knowledge and idea (Stankosky,
2005) and finally fostering a culture that supports trust, open dialogue and team learning to encourage
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Kalsom Salleh and Ching Choo Huang
and reward risk taking, learning and knowledge sharing activities (Kayworth and Leidner, 2003;
Stankosky, 2005). Leaders should model proper behavior for organisational culture to evolve to a
knowledge sharing culture in <strong>the</strong> facilitation <strong>of</strong> KM activities (Ribiere and Sitar, 2003).
Besides <strong>the</strong> leadership component, learning opportunities <strong>of</strong> employees and technology resources
are equally important as <strong>the</strong>y are also ranked among <strong>the</strong> top ten KM factors which contribute to value
creation <strong>of</strong> <strong>the</strong> Malaysian firms. Learning and technological have also been found to be highly
significant KM enablers in <strong>the</strong> studies carried out by Salleh (2008) and Chong et al. (2011) Learning in
KM is described by Stankosky (2005) as <strong>the</strong> acquisition <strong>of</strong> knowledge or skill through study,
experience or instruction and social interactions. KM is a concept and practice that can enable <strong>the</strong>
organisation’s employees to learn from each o<strong>the</strong>r as well as from prior experiences <strong>of</strong> former
employees through <strong>the</strong> use <strong>of</strong> learning mechanisms. ICT infrastructures and KM technologies for <strong>the</strong>
communication networks, electronic mails, intranet, data warehousing and decision support systems
are some <strong>of</strong> <strong>the</strong> basic elements to support KM technology infrastructure (Stankosky, 2005).
4.2 Top ten IC items
When respondents were asked to indicate which IC items contribute to <strong>the</strong> value creation <strong>of</strong> <strong>the</strong>ir
companies, <strong>the</strong>y have ranked ‘employees’ know-how/expertise/knowledge/competence’ as <strong>the</strong> most
important (see Table 3). This top IC item is related to human resource which implies that Malaysian
companies regard human capital as vital to <strong>the</strong> value creation <strong>of</strong> <strong>the</strong>ir companies. This is consistent
with <strong>the</strong> studies <strong>of</strong> Bukh (2003) and Eccles et al. (2001) who state that more companies base <strong>the</strong>ir
competitive strength and <strong>the</strong> value <strong>of</strong> <strong>the</strong>ir company on know-how, and skilled employees among
o<strong>the</strong>r intangibles. The o<strong>the</strong>r IC item which relates to human resource and is ranked ninth is
‘employees’ motivation’. Fitz-enz (2000) states that ‘people, not cash, buildings or equipment are <strong>the</strong>
critical differentiators <strong>of</strong> a business enterprise’. Lev (2001) too states that in <strong>the</strong> twenty first century
corporation is more dependent on its employees. In a study by O’Regan et al. (2001), both CEOs and
CFOs in Irish knowledge-intensive firms perceive that approximately half <strong>of</strong> <strong>the</strong> intangible value
derives directly from <strong>the</strong> people employed.
Table 3 reveals that out <strong>of</strong> <strong>the</strong> top 10 IC items, eight items were related to customer capital and
customer relationships. This implies that Malaysian PLCs regard customer capital as paramount
important to <strong>the</strong> value creation <strong>of</strong> <strong>the</strong>ir companies. For instance ‘customers’ loyalty’, ‘timeliness <strong>of</strong>
product’, ‘market demands’, ‘customer complaints and responses to complaints’, ‘quality <strong>of</strong> products’,
‘customers’ satisfaction’ are all related <strong>the</strong> development <strong>of</strong> customer capital (see Table 3 for detail).
This finding is consistent with that <strong>of</strong> Abdel-Maksoud et al. (2005) where most UK companies also
regard ‘timeliness’ and ‘number <strong>of</strong> complaints from customers’ to be critically important. This is in line
with ano<strong>the</strong>r study on Malaysian companies by Huang et al. (2011) that Malaysian managers do
regard customer capital information as <strong>the</strong> most important relative to <strong>the</strong> human and structural capital.
Table 3: Top Ten IC items contributing to value creation
Top Ten IC Items Contributing to Value Creation Rank Mean Std. Dev.
Employees’ know-how/expertise/ knowledge /competence 1 6.09 0.94
Customers’ loyalty to your company/product e.g. repeat sales 2 5.98 1.152
Timeliness <strong>of</strong> product/service delivery 3 5.95 1.069
Market demands for products/services 4 5.93 1.142
Customer complaints and responses to complaints 5 5.93 1.042
Quality <strong>of</strong> product/service supplied 6 5.91 1.269
Customers’ satisfaction (e.g. via survey) with company/product 7 5.88 1.192
Growth in business or service volume 8 5.86 1.017
Employees’ motivation 9 5.80 1.166
Customer acquisitions (new customers) 10 5.80 1.034
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4.3 Effect <strong>of</strong> KM and IC on performance
Kalsom Salleh and Ching Choo Huang
Respondents were also asked to indicate <strong>the</strong> effect <strong>of</strong> KM and IC in <strong>the</strong> performance <strong>of</strong> <strong>the</strong>ir
organisation on a scale from 1 to 7, when 1 represents no importance and 7 represents crucial
importance. Respondents were also asked to indicate <strong>the</strong> extent to which <strong>the</strong>y agree that financial
performance is influenced by KM and IC in <strong>the</strong>ir organisation employing a seven point scale where “1”
is for “strongly disagree” and “7” for “strongly agree”. The results are shown in Table 4.
On <strong>the</strong> whole, <strong>the</strong> respondents have agreed and considered that IC and KM enhances <strong>the</strong>
performance <strong>of</strong> <strong>the</strong> companies. Malaysian PLCs perceived that IC and KM have increased customer
satisfaction, shortened customer satisfaction, increased employee productivity and reduced
transaction costs. Three out <strong>of</strong> <strong>the</strong> first four performance items are related to customers. This could
due to a greater importance placed by Malaysian companies on customer capital as customer capital
items are highly ranked in terms <strong>of</strong> value creation as shown in Table 3.
Table 4: Effect <strong>of</strong> KM and IC on performance
Effect <strong>of</strong> KM and IC on Performance Mean Std. Dev.
Increase in customer satisfaction 5.96 1.017
Shorter response time for customer complaints 5.70 1.017
Increase in average productivity per employee 5.68 1.121
Reduction in cost per business transaction 5.67 1.024
Increase in number <strong>of</strong> skilled workers and expertise 5.49 1.002
Increase in market share 5.47 1.120
Increase in return on investment 5.46 1.135
Greater levels <strong>of</strong> innovation and improved processes 5.46 1.087
Increase in number <strong>of</strong> individual’s new learning skills 5.46 0.946
Shorter time to market products and services 5.42 1.101
Increase in number <strong>of</strong> new products or services 5.25 1.199
Increase in amount spent on technology information processing system 5.25 0.851
Increase in number <strong>of</strong> suggestions implemented 5.04 1.117
Increase in number <strong>of</strong> research products and patents 4.95 1.381
5. Conclusion and recommendation
This study has found that <strong>the</strong> support and commitment <strong>of</strong> top management and <strong>the</strong>ir leadership is
vital for <strong>the</strong> implementations <strong>of</strong> IC and KM programmes in <strong>the</strong> value creation strategies <strong>of</strong> <strong>the</strong>
companies. Besides leadership, learning opportunities <strong>of</strong> employees and technology resources are
equally important to <strong>the</strong> value creation <strong>of</strong> <strong>the</strong> Malaysian firms. The study has also found that
Malaysian companies do perceive human capital and customer capital to be important to value
creation. Incorporating IC and KM into corporate strategies has enhanced <strong>the</strong> financial performance
<strong>of</strong> Malaysian companies.
Though <strong>the</strong> empirical evidence <strong>of</strong> this study does reveal <strong>the</strong> types <strong>of</strong> KM and IC components
Malaysian companies should concentrate in enhancing <strong>the</strong>ir future value creation capability, this
evidence is mainly on perceptions. More in-depth studies into <strong>the</strong> management <strong>of</strong> IC and knowledge
in Malaysian companies should be conducted via interviews and case studies. Fur<strong>the</strong>r studies on <strong>the</strong>
challenges faced by <strong>the</strong>se companies in managing IC and knowledge and also linking value creation
to corporate strategies can also be conducted.
Acknowledgements
The authors would like to thank <strong>the</strong> Ministry <strong>of</strong> Higher Education (MOHE) for funding this research.
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484

Learning Organisation, Knowledge Management Process
and Organisational Performance: Empirical Evidence From
a Public University
Kalsom Salleh and Ching Choo Huang
Accounting Research Institute and Faculty <strong>of</strong> Accountancy, Universiti
Teknologi MARA, Shah Alam, Malaysia
kalsom816@salam.uitm.edu.my
mdchom@yahoo.com
ching599@salam.uitm.edu.my
Abstract: Universities have long been recognised as avenues for teaching and learning, research and discovery,
as well as providers <strong>of</strong> services to <strong>the</strong> society through <strong>the</strong> application <strong>of</strong> knowledge. To strive for academic
excellence, it is imperative for public universities to become a learning organization. This can be done by <strong>the</strong>
knowledge management process to drive <strong>the</strong>ir future value and to enhance <strong>the</strong>ir organisational performance.
Hence, this paper adapts <strong>the</strong> studies <strong>of</strong> Watkins and Marsick (1993; 1996) and Hernandez (2000), to develop a
comprehensive research model which examines <strong>the</strong> relationship between learning organisation and knowledge
management process <strong>of</strong> tacit knowledge in a public university in Malaysia. The objective <strong>of</strong> this first phase <strong>of</strong>
research project is to explore <strong>the</strong> components <strong>of</strong> seven dimensions <strong>of</strong> <strong>the</strong> learning organisation and <strong>the</strong> transfer
process <strong>of</strong> tacit knowledge which are deemed important factors to influence <strong>the</strong> knowledge performance
improvement <strong>of</strong> a public university. A survey questionnaire was employed as <strong>the</strong> main instrument to collect data
from <strong>the</strong> academicians in this university. The empirical findings <strong>of</strong> this study provides an initial step forward
identifying <strong>the</strong> relevant dimensions <strong>of</strong> a learning organisation and <strong>the</strong> effective knowledge management process
<strong>of</strong> tacit knowledge which drive <strong>the</strong> organisational performance <strong>of</strong> a public university.
Keywords: learning organisation, knowledge management, tacit knowledge, organisational performance, public
university
1. Introduction
Knowledge is <strong>the</strong> main capital for most organisations such as universities, research centers, legal
firms, auditing firms, engineering firms and computer consultancy services (Ditillo, 2004). The
significance <strong>of</strong> knowledge is even more evident when <strong>the</strong>se organizations are knowledge-intensive.
This is supported by Dunford (2000) who found that knowledge capital is <strong>the</strong> main driver <strong>of</strong> <strong>the</strong>
process and performance in <strong>the</strong> knowledge-intensive organisations.
Universities have long been recognised as avenues for teaching and learning, research and
discovery, as well as providers <strong>of</strong> services to <strong>the</strong> society via knowledge application. In order to
become a research-university and a world class university, Malaysian public universities have
invested enormously in intangibles such as human capital and research and development which
create and increase <strong>the</strong>ir intellectual assets. In addition, <strong>the</strong>re is a need for <strong>the</strong> higher learning
institution to promote <strong>the</strong> practices <strong>of</strong> learning organization (LO) in <strong>the</strong> ‘knowledge age’. This paper
focuses on one <strong>of</strong> <strong>the</strong> public university in Malaysia, Universiti Teknologi MARA (UiTM), which has
undergone <strong>the</strong> transformation process to become a LO by adopting knowledge management (KM)
process to drive its future value and organisational performance. It is believed that in <strong>the</strong>
transformation process created a learning-oriented environment among academicians. This paper
adapts <strong>the</strong> studies <strong>of</strong> Watkins and Marsick (1993; 1996) and Hernandez (2000) to explore <strong>the</strong> seven
dimensions <strong>of</strong> <strong>the</strong> LO and <strong>the</strong> transfer process <strong>of</strong> tacit knowledge which are deemed important in
influencing and improving knowledge performance in UiTM.
2. Literature review
Definitions <strong>of</strong> Learning Organisation and Knowledge Management
Watkins (1996, p.32) defines Learning Organisation (LO) as one in which learning and work are
integrated in an on-going and systematic fashion to support continuous improvement at <strong>the</strong> individual,
group and organisational levels. In o<strong>the</strong>r words, learning takes place in <strong>the</strong> individuals, teams and
organisation and even <strong>the</strong> communities with which <strong>the</strong> organisation interacts. LO is said to be about
increasing an organisation’s problem solving capability and about changing behaviour in ways leading
to improved performance at <strong>the</strong> individual, team and organisational level (Buckler, 1998).
485

Kalsom Salleh and Ching Choo Huang
According to Watkins & Marsick (1993;1996), characteristics <strong>of</strong> an LO are <strong>the</strong> seven complementary
action imperatives which are important in learning organisations:
Create continuous learning opportunities,
Promote inquiry and dialogue,
Encourage collaboration and team learning,
Establish systems to capture and share learning,
Empower people toward a collective vision,
Connect <strong>the</strong> organisation to its environment and
Provide strategic leadership for learning
Knowledge Management (KM) is defined as <strong>the</strong> process <strong>of</strong> capturing <strong>the</strong> collective expertise and
intelligence in a learning organisation and using <strong>the</strong>m to foster innovation through continued
organisational learning (Nonaka & Takeuchi, 1995; 1995; Quinn et al., 1996; Davenport et al., 1998,
and Meso & Smith, 2000). The ultimate goal <strong>of</strong> KM is to convert tacit knowledge (personal ideas and
experiences) from individual knowledge to explicit organisational knowledge (documents, products
and procedures) and utilised shared knowledge across organisation effectively (Nonaka &
Takeuchi,1995; Quinn et al., 1996; Davenport et al.,1998; Bennet & Bennet, 2003b; Gupta et al.,
2000). Tacit knowledge transfer is <strong>the</strong> process by which tacit knowledge is moved and shared
throughout organisation through individuals and groups across various functions by personal,
mechanical and electronic means (Hernandez, 2000).
Previous Empirical Studies
Table 1 shows previous empirical studies which have adopted Watkins and Marsicks’ seven
dimensions <strong>of</strong> <strong>the</strong> LO to determine <strong>the</strong> organisational performance improvement in business, nonbusiness
organisations and higher learning institutions.
Table 1: Previous empirical studies <strong>of</strong> LO and performance improvement
Researchers Purpose <strong>of</strong> Study Findings
Selden & Watkins, 2001 To evaluate <strong>the</strong> relationship
between LO dimensions, company
characteristics, knowledge &
finance performance <strong>of</strong> family run
firms
McHargue, 2003 To examine <strong>the</strong> relationship
between LO dimensions, company
characteristics and financial,
knowledge & mission performance
<strong>of</strong> non-pr<strong>of</strong>it service organisation
Hernandez, 2003 To identify ways which LO
dimensions impact <strong>the</strong> process <strong>of</strong>
tacit knowledge transfer,
knowledge performance and
finance performance within private
manufacturing organisations in
Colombia
Kumar & Idris, 2006 To explore <strong>the</strong> relationship
between LO dimensions,
institutional characteristics and
knowledge performance among
private higher learning institutions
in Malaysia
3. Research methodology
All 7 dimensions except inquiry &
dialogue were significantly
correlated with knowledge
performance. The embedded
systems as significant predictor
All 7 dimensions were significantly
correlated with knowledge
performance. The embedded
systems established <strong>the</strong> strongest
relationship with knowledge
performance
Positive structural relationship
between <strong>the</strong> seven LO
dimensions and <strong>the</strong> transfer
process <strong>of</strong> tacit knowledge
consecutively showed a positive
influence on knowledge
performance.
Three dimensions showed strong
relationship – team learning,
embedded systems and
leadership
3.1 Sample
In this study, a survey questionnaire was used as <strong>the</strong> main instrument to collect data from all
academicians employed by UiTM in 2011. Questionnaires were posted to a total <strong>of</strong> 900 academicians
486

Kalsom Salleh and Ching Choo Huang
from 26 faculties which are grouped for <strong>the</strong> three (3) clusters <strong>of</strong> programmes i.e. 1) science &
technology, 2) business & management and 3) social sciences & humanities. Only 99 questionnaires
were received and usable for analysis purposes.
3.2 Questionnaire design
A survey questionnaire was designed for this exploratory investigation on <strong>the</strong> conceptual relationship
between learning organisation and knowledge management in <strong>the</strong> university. In this study, <strong>the</strong>
multiple question items in <strong>the</strong> questionnaire were adapted from literature and past studies on LO,
transfer process <strong>of</strong> tacit knowledge and knowledge performance improvement. Besides demographic
data, three (3) main questions were developed in <strong>the</strong> questionnaire. The first question concerns <strong>the</strong>
perception <strong>of</strong> respondents on <strong>the</strong> seven complementary action imperatives in <strong>the</strong> LO. The second
question is regarding <strong>the</strong> perception on <strong>the</strong> level <strong>of</strong> <strong>the</strong> tacit knowledge (expertise, ideas, experiences,
etc.) being shared and documented for information accessibility and usability. The third question asks
about <strong>the</strong> relative performance <strong>of</strong> <strong>the</strong> LO and <strong>the</strong> effect <strong>of</strong> tacit knowledge on <strong>the</strong> organisational
performance in terms <strong>of</strong> <strong>the</strong> knowledge performance improvement <strong>of</strong> <strong>the</strong> university. A seven-point
scale from ‘1’ to ‘7’ was used for all <strong>the</strong>se three questions for respondents to indicate <strong>the</strong> level <strong>of</strong>
importance <strong>of</strong> <strong>the</strong> multiple question items <strong>of</strong> <strong>the</strong> identified research variables. The Likert - point scale
used ranges from “1” is for almost never , “2” is for seldom, “3 “ is for occasionally, “4” is for not sure,
“5” is for frequently, “6” is for usually and “7” is for “almost always”.
LO dimensions and KM variables were also incorporated into <strong>the</strong> questionnaire. These items were
adapted from those developed by Watkins and Marsick (1993; 1996) and Hernandez (2000). A final
list comprising 42 LO dimensions, 12 KM items on <strong>the</strong> transfer process <strong>of</strong> tacit knowledge and seven
(7) items <strong>of</strong> knowledge performance improvement were deemed relevant and valid to <strong>the</strong> university.
Statistical Package for Social Sciences (SPSS) version 17 was employed to analyse <strong>the</strong> data
collected.
4. Data analysis and discussion
The Cronbach's Alpha is computed to verify <strong>the</strong> reliability <strong>of</strong> <strong>the</strong> data collected and <strong>the</strong> study variables
<strong>of</strong> this empirical research. According to Sekaran (2000), <strong>the</strong> closer <strong>the</strong> Cronbach's Alpha to 1, <strong>the</strong>
higher <strong>the</strong> internal consistency reliability. The Cronbach′s Alpha coefficient for each research variable
<strong>of</strong> this study is presented in Table 2.
Table 2: Coefficient <strong>of</strong> Cronbach′s Alpha
Variables
Number <strong>of</strong> Items
Cronbach’s
Alpha Coefficients
Learning Organisation Dimensions 42 0.974
Create continuous learning 5 0.767
Promote inquiry and dialogue 7 0.899
Team learning 6 0.907
Embedded Systems 6 0.886
Empowerment 6 0.900
System connection 6 0.922
Leadership 6 0.943
KM Process <strong>of</strong> Tacit Knowledge 12 0.943
Organisational Performance 7 0.927
4.1 Demographic analysis
The demographic questions for this study consist <strong>of</strong> <strong>the</strong> gender <strong>of</strong> <strong>the</strong> respondents, <strong>the</strong> levels <strong>of</strong>
academic qualification and <strong>the</strong> cluster/type <strong>of</strong> faculties in <strong>the</strong> university. As for <strong>the</strong> gender <strong>of</strong> <strong>the</strong>
respondents, about 56% <strong>of</strong> <strong>the</strong> respondents are females. Only 44% <strong>of</strong> <strong>the</strong> respondents are males.
Table 3 reveals <strong>the</strong> academic qualification <strong>of</strong> <strong>the</strong> respondents. The majority (53.53%) <strong>of</strong> <strong>the</strong>
respondents holds a Masters degree and 34.34% have a Doctoral degree. Most <strong>of</strong> <strong>the</strong> respondents
(88%) are highly educated and thus, <strong>the</strong>ir responses are useful and relevant to <strong>the</strong> study.
487

Table 3: Academic qualification <strong>of</strong> respondents
Kalsom Salleh and Ching Choo Huang
Current Position Number Percentage (%)
Doctorate Degree (PhD) 34 34.34
Masters Degree 53 53.53
Pr<strong>of</strong>essional Degree 5 5.05
Degree 3 3.03
Not Stated 4 4.04
Total 99 100
In terms <strong>of</strong> working experience, most <strong>of</strong> <strong>the</strong> respondents (66%) have worked in <strong>the</strong> university for 20
years or less. Only 15% have worked between 21 to 25 years and 14% have worked between 26-30
years. However, 5% did not state <strong>the</strong>ir working experience.
The majority (56%) <strong>of</strong> <strong>the</strong> respondents are from science and technology faculties while <strong>the</strong> remaining
respondents (21%) are attached to <strong>the</strong> business and management faculties and 21% are from <strong>the</strong>
social sciences and humanities cluster.
4.2 Statistical analysis on <strong>the</strong> important components <strong>of</strong> LO and KM process <strong>of</strong> tacit
knowledge and organisational performance
The main objective <strong>of</strong> this paper is to explore <strong>the</strong> components <strong>of</strong> seven dimensions <strong>of</strong> <strong>the</strong> LO and <strong>the</strong>
transfer process <strong>of</strong> tacit knowledge which are deemed important in influencing and improving <strong>the</strong>
knowledge performance in UiTM. The respondents were asked to indicate on a scale from ‘1’ to ‘7’
where ‘1’ represents ‘almost never’, ‘4’ represents ‘not sure’ and ‘7’ represents ‘almost always’ which
components <strong>of</strong> LO dimensions and KM process <strong>of</strong> tacit knowledge are deemed important towards
knowledge performance improvement <strong>of</strong> <strong>the</strong> university. The level <strong>of</strong> importance is measured and
sequentially arranged in accordance with <strong>the</strong> mean and <strong>the</strong> standard deviation <strong>of</strong> <strong>the</strong> component
concerned for <strong>the</strong> specified variables.
4.2.1 Learning Organisation dimensions
The learning factors and <strong>the</strong>ir impact on <strong>the</strong> transferring <strong>of</strong> tacit knowledge to influence organisational
performance are vital to any public university. The means and <strong>the</strong> standard deviations <strong>of</strong> <strong>the</strong> seven
(7) dimensions <strong>of</strong> LO are shown in Table 4. These components are important factors which create an
integrated concept <strong>of</strong> LO and KM in <strong>the</strong> public university, thus enhancing its organisational
performance.
Table 4: Seven learning dimensions <strong>of</strong> <strong>the</strong> LO in <strong>the</strong> public university
LO Dimensions Items Mean Standard Deviation
1. Create Continuous Learning Employees help each o<strong>the</strong>r to learn 3.78 1.172
Employees identify skills <strong>the</strong>y need
for future work tasks
Employees view problems in <strong>the</strong>ir
work as an opportunity to learn
Employees can get money and o<strong>the</strong>r
resources to support <strong>the</strong>ir learning
Employees openly discuss mistakes
in order to learn from <strong>the</strong>m
2. Promote Inquiry and Dialogue Employees treat each o<strong>the</strong>r with
respect
Employees listen to o<strong>the</strong>rs’ view
before speaking
Employees spend time building trust
with each o<strong>the</strong>r.
Whenever employees state <strong>the</strong>ir
view, <strong>the</strong>y also ask what o<strong>the</strong>rs think
Employees are encouraged to ask
“why” regardless <strong>of</strong> rank
Employees give open and honest
feedback to each o<strong>the</strong>r
488
3.48 0.982
3.17 1.041
3.04 1.144
2.67 0.978
3.88 1.016
3.30 0.994
3.24 0.970
3.02 1.016
2.84 0.981
2.79 0.961

Kalsom Salleh and Ching Choo Huang
Employees are rewarded for learning 2.66 1.113
LO Dimensions Items Mean Standard Deviation
3.Team Learning Teams/groups revise <strong>the</strong>ir thinking as
a result <strong>of</strong> group discussions or
information collected
3.66 0.991
Teams/groups focus on both <strong>the</strong>
group’s task and on how well <strong>the</strong>
group is working ( <strong>the</strong> group process)
3.6 0.953
Teams/groups treat members as
equals, regardless <strong>of</strong> rank , culture or
o<strong>the</strong>r differences
3.48 1.037
Teams/groups have <strong>the</strong> freedom to
adapt <strong>the</strong>ir goals as needed
3.44 0.933
Teams/groups are confident that <strong>the</strong>
organisation will act on <strong>the</strong>ir
recommendations
3.02 1.011
Teams/groups are rewarded for <strong>the</strong>ir
achievement as a team / group
3.01 1.080
4. Embedded Systems Uses two-way communication on a
regular basis, such as suggestion
systems through electronic mails or
open meeting
3.48 1.177
Maintains an up-to-date database <strong>of</strong>
employee skills
3.37 1.194
Enables people to get needed
information at any time quickly and
easily
3.34 1.024
Makes its lessons learned available
to all employees
3.09 1.102
Measure <strong>the</strong> results <strong>of</strong> <strong>the</strong> time and
resources spent on training
2.87 0.980
Creates systems to measure gaps
between current and expected
performance
2.76 1.015
5. Empowerment Invites people to contribute to <strong>the</strong>
organisation’s vision
3.60 1.228
Recognised people for taking
initiative
3.18 1.018
Gives people control over <strong>the</strong>
resources <strong>the</strong>y need to accomplish
<strong>the</strong>ir work
3.13 1.013
Gives people choices in <strong>the</strong>ir work
assignment
2.98 1.022
Builds alignment <strong>of</strong> visions across
different levels and work groups
2.97 1.187
Support employees who take
calculated risks
2.71 1.047
6. System Connection Works toge<strong>the</strong>r with <strong>the</strong> outside
community to meet mutual needs
3.49 1.015
Encourages people to think from a
global perspective
3.43 1.248
Encourages everyone to bring <strong>the</strong>
customers view into <strong>the</strong> decision
making process
3.37 1.217
Encourages people to get answers
from across <strong>the</strong> organisation when
solving problems
3.20 1.077
Consider <strong>the</strong> impact <strong>of</strong> decisions on
employee morale
3.15 1.115
Helps employees balance work and
family
2.92 1.195
7. Leadership Leaders empower o<strong>the</strong>rs to help
carry out <strong>the</strong> organisation’s vision
3.77 1.096
Leaders generally support requests
for learning opportunities and training
3.70 1.159
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Kalsom Salleh and Ching Choo Huang
Leaders share up to date information
with employees about competitors,
industry trends and organisational
directions
3.59 1.174
LO Dimensions Items Mean Standard Deviation
Leader ensure that <strong>the</strong> organisation’s
action are consistent with its values
3.57 1.137
Leaders continually look for 3.51 1.114
opportunities to learn
Leaders mentor and coach those
<strong>the</strong>y lead
3.26 1.073
Table 5 shows <strong>the</strong> top twelve (12) items contributed to <strong>the</strong> learning dimensions <strong>of</strong> <strong>the</strong> LO with <strong>the</strong>
integration concept <strong>of</strong> KM process for tacit knowledge. These twelve items for LO dimensions are
measurable items for <strong>the</strong> seven complementary actions developed by Watkins and Marsick (1993;
1996) and are found to be occasionally regarded as paramount important (with mean scores <strong>of</strong> 3.5 to
4) to <strong>the</strong> organisational performance in UiTM. Components for <strong>the</strong> leadership and team learning are
considered to be critically important by <strong>the</strong> respondents for <strong>the</strong> LO in UiTM.
Table 5: Top twelve items contributing to learning dimensions <strong>of</strong> <strong>the</strong> LO
LO Dimensions The Top Ten Items
Promote Inquiry and Dialogue Employees treat each o<strong>the</strong>r with respect
Create Continuous Learning Employees help each o<strong>the</strong>r to learn
Leadership Leaders empower o<strong>the</strong>rs to help carry out <strong>the</strong> organisation’s
vision
Leaders generally support requests for learning opportunities
and training
Leaders share up to date information with employees about
competitors, industry trends and organizational directions
Leaders ensure that <strong>the</strong> organisation’s action are consistent with
its values
Leaders continually look for opportunities to learn
Team Learning Teams/groups revise <strong>the</strong>ir thinking as a result <strong>of</strong> group
discussions or information collected
Teams/groups focus on both <strong>the</strong> group’s task and on how well
<strong>the</strong> group is working (<strong>the</strong> group process)
Empowerment Invites people to contribute to <strong>the</strong> organisation’s vision
System connection Work toge<strong>the</strong>r with <strong>the</strong> outside community to meet mutual needs
Embedded systems Uses two – way communication on a regular basis such as
suggestion systems through electronic mails or open meeting
4.2.2 KM process <strong>of</strong> tacit knowledge
Respondents were also asked to indicate <strong>the</strong> effect <strong>of</strong> KM process <strong>of</strong> transferring tacit knowledge on
<strong>the</strong> performance <strong>of</strong> <strong>the</strong> organisation on a scale from ‘1’ to ‘7’, when ‘1’ represents ‘almost never’, ‘4’
represents ‘not sure’ and ‘7’ represents ‘almost always’. The followings are <strong>the</strong> components <strong>of</strong> KM
process <strong>of</strong> tacit knowledge which are measured in terms <strong>of</strong> <strong>the</strong>ir means and <strong>the</strong> standard deviations.
Table 6 shows <strong>the</strong> ten (10) measurable items out <strong>of</strong> twelve (12) items are occasionally regarded by
<strong>the</strong> respondents as important in transferring tacit knowledge for <strong>the</strong> integrated concept <strong>of</strong> LO and KM
in UiTM in order to enhance its organisational performance.
Table 6: Transfer process components <strong>of</strong> tacit knowledge in <strong>the</strong> public university
Important Components <strong>of</strong> Transfer Process <strong>of</strong> Tacit Knowledge Mean Standard
Deviation
There are written manuals describing work processes 3.70 1.090
Existence <strong>of</strong> documentation describing administrative procedures 3.56 1.051
New ideas or methods are disseminated and spread to o<strong>the</strong>r colleagues in
helping to articulate <strong>the</strong> problem
3.31 1.190
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Kalsom Salleh and Ching Choo Huang
Insights from colleagues across departments were obtained when dealing with
complex problems
3.24 1.095
Important Components <strong>of</strong> Transfer Process <strong>of</strong> Tacit Knowledge Mean Standard
Deviation
When encountering operational problems, attempts were made to look at o<strong>the</strong>r
departments’ experience for critical information and knowledge
3.20 1.098
Faculty/Unit/Institute share with o<strong>the</strong>r members what works and what does not
work when developing new ideas
Parts <strong>of</strong> <strong>the</strong> work processes are embodied in s<strong>of</strong>tware that have been
modified/customized
Cross-functional teams are used to transfer important learning across groups,
divisions and departments
Technology in faculty/unit/institute creates a database that is accessible to <strong>the</strong>
entire organisation
Recognition given to <strong>the</strong> value <strong>of</strong> <strong>the</strong> ideas and methods which have been made
available to employees and organisation
Customers have access to <strong>the</strong> help desks manned by <strong>the</strong> experts in
faculty/unit/institute
‘Pointer systems’ are used in faculty/unit/institute to find in-house expert in
different areas such as yellow pages, help desks, centre <strong>of</strong> excellence, etc.
3.19 1.084
3.19 1.1084
3.07 1.140
3.02 1.154
3.01 1.00
2.62 1.073
2.49 1.068
When <strong>the</strong> respondents were asked to indicate which items contribute to <strong>the</strong> effectiveness <strong>of</strong> KM
process <strong>of</strong> tacit knowledge in <strong>the</strong> university, <strong>the</strong>y have ranked ‘written manuals describing work
processes’ as <strong>the</strong> most important component (see Table 6). The following are <strong>the</strong> next top nine (9)
items <strong>of</strong> KM process <strong>of</strong> tacit knowledge which are regarded as vital to <strong>the</strong> knowledge improvement
performance <strong>of</strong> a public university:
Existence <strong>of</strong> documentation describing administrative procedures,
New ideas or methods are disseminated and spread to o<strong>the</strong>r colleagues in helping to articulate
<strong>the</strong> problem,
Insights from colleagues across departments were obtained when dealing with complex problems,
When encountering operational problems, attempts were made to look at o<strong>the</strong>r departments’
experience for critical information and knowledge,
Faculty/Unit/Institute share with o<strong>the</strong>r members what works and what does not work when
developing new ideas,
Parts <strong>of</strong> <strong>the</strong> work processes are embodied in s<strong>of</strong>tware that have been modified/customized,
Cross-functional teams are used to transfer important learning across groups, divisions and
departments,
Technology in faculty/unit/institute creates a database that is accessible to <strong>the</strong> entire organization
and
Recognition given to <strong>the</strong> value <strong>of</strong> <strong>the</strong> ideas and methods which have been made available to
employees and organization.
4.2.3 The effect <strong>of</strong> LO dimensions and KM process <strong>of</strong> tacit knowledge on <strong>the</strong> organisational
performance
The respondents were fur<strong>the</strong>r asked to indicate <strong>the</strong> extent to which <strong>the</strong>y agree that knowledge
performance improvement is influenced by LO dimensions and KM process <strong>of</strong> tacit knowledge in <strong>the</strong>
University employing a seven-point scale where ‘1’ represents ‘almost never’, ‘4’ represents ‘not sure’
and ‘7’ represents ‘almost always’ .
Table 7 reveals <strong>the</strong> components <strong>of</strong> <strong>the</strong> organisational performance with <strong>the</strong>ir means and <strong>the</strong> standard
deviations. Seven (7) measurable items are occasionally regarded by <strong>the</strong> respondents as important in
transferring tacit knowledge for <strong>the</strong> integrated concept <strong>of</strong> LO dimensions and KM process in
enhancing <strong>the</strong> organisational performance <strong>of</strong> <strong>the</strong> university.
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Kalsom Salleh and Ching Choo Huang
Table 7: Organisational performance with <strong>the</strong> integration <strong>of</strong> LO and KM process <strong>of</strong> tacit knowledge in
<strong>the</strong> public university
Important Components <strong>of</strong> Organisational Performance Mean Standard
Deviation
Increase in number <strong>of</strong> individuals learning new skills 3.34 1.065
Increase in number <strong>of</strong> research products and patents 3.20 1.144
Greater levels <strong>of</strong> innovation and improved processes 3.18 1.001
Increase in percentage <strong>of</strong> skilled workers/ expertise as compared to total
workforce
3.18 1.097
Increase in percentage <strong>of</strong> total spending devoted to technology and
information processing
3.16 1.048
Increase in number <strong>of</strong> new products (programs) or services 3.06 1.021
Increase in number <strong>of</strong> suggestions being implemented 3.02 0.874
It was found that <strong>the</strong> respondents have occasionally agreed (with <strong>the</strong> mean score above 3 and below
4) that <strong>the</strong> organisational performance <strong>of</strong> <strong>the</strong> public university is influenced by <strong>the</strong> LO dimensions and
<strong>the</strong> KM process <strong>of</strong> transferring tacit knowledge. The survey has also found that <strong>the</strong> integration <strong>of</strong> LO
and KM process <strong>of</strong> tacit knowledge can improve individual’s learning new skills, increase <strong>the</strong> number
<strong>of</strong> research products and patents, increase level <strong>of</strong> innovation and improve processes, increase
percentage <strong>of</strong> skilled workers/expertise and increase percentage <strong>of</strong> total spending devoted to
technology and information processing. This could be because a greater importance is placed by <strong>the</strong>
academicians on human and innovation capital which have an <strong>the</strong> effect on LO and KM process and
hence improves knowledge performance <strong>of</strong> <strong>the</strong> university.
5. Conclusion and recommendation
This exploratory finding appears to be consistent with <strong>the</strong> integration study <strong>of</strong> LO dimensions and KM
process <strong>of</strong> tacit knowledge carried out by Hernandez (2003) on <strong>the</strong> organisational performance.
Hernandez (2003) had discovered that <strong>the</strong> structural relationship between <strong>the</strong> seven LO dimensions
and <strong>the</strong> transfer process <strong>of</strong> tacit knowledge consecutively showed a positive influence on knowledge
performance.
The result <strong>of</strong> this study also shows that <strong>the</strong> leadership and team learning are important LO
dimensions for <strong>the</strong> integration concept <strong>of</strong> <strong>the</strong> seven LO dimensions and KM process <strong>of</strong> tacit
knowledge in <strong>the</strong> Malaysian public university.
As this study is exploratory in nature and based on respondents’ perceptions obtained from <strong>the</strong>
survey questionnaires, interviews are to be conducted by <strong>the</strong> authors in <strong>the</strong> final phase <strong>of</strong> this
research project to examine fur<strong>the</strong>r <strong>the</strong> significant relationships <strong>of</strong> LO dimensions and KM process <strong>of</strong>
tacit knowledge for <strong>the</strong> organisational performance <strong>of</strong> a public university. A more in-depth study is
necessary as Connelly et al. (2011) state that employees hide <strong>the</strong>ir knowledge or are unwilling to
share <strong>the</strong>ir knowledge even when organisational practices are designed to facilitate <strong>the</strong> knowledge
transfer culture. In addition, future studies should increase <strong>the</strong> number <strong>of</strong> respondents and cover
o<strong>the</strong>r public universities too. Comparative studies between public and private universities as learning
organisations can also be conducted in <strong>the</strong> future.
Acknowledgements
The authors would like to thank <strong>the</strong> Malaysia’s Ministry <strong>of</strong> Higher Education (MOHE) for funding this
conference paper presentation in <strong>the</strong> <strong>International</strong> <strong>Conference</strong> on Intellectual Capital and Knowledge
Management (ICICKM 2011) in Bangkok.
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Press.
493

Application <strong>of</strong> Knowledge Management to Intellectual
Corpus Valorisation
Pierre Saulais 1 and Jean-Louis Ermine 2
1
Thales Air Systems, Limours, France & Télécom Ecole de Management, Evry,
France
2
Télécom Ecole de Management, Evry, France
pierre.saulais@thalesgroup.com
pierre.saulais@it-sudparis.eu
jean-louis.ermine@it-sudparis.eu
Abstract: Within a company, <strong>the</strong> Intellectual Corpus notably include inventive activities. We propose to describe
<strong>the</strong>se activities in a new annual report, <strong>the</strong> Inventivity & Innovation Document (2ID), which represents a valuable
deposit <strong>of</strong> new Knowledge for <strong>the</strong> company. We think that structuring and sharing this new knowledge within <strong>the</strong>
company is mandatory in order to contribute to <strong>the</strong> innovation strategy by irrigating, with this new knowledge,
transverse activities such as technical and technological watch, R&D planning, innovation management. So, we
will define and characterize <strong>the</strong> Intellectual Corpus (and its link with <strong>the</strong> company Information System) and <strong>the</strong>n
<strong>the</strong> concept <strong>of</strong> inventive activity (and its justification methodology by means <strong>of</strong> Knowledge Management
methods). We will show how <strong>the</strong> increase in Intellectual Corpus can increase <strong>the</strong> company Intellectual capital
through its Knowledge value chain. The increase in value <strong>of</strong> inventive activities comes, on one hand, from <strong>the</strong>
Knowledge actors sharing innovative experience and, on <strong>the</strong> o<strong>the</strong>r hand, from <strong>the</strong> contribution to <strong>the</strong> innovation
strategy: <strong>the</strong> so-described process does belong to a virtuous cycle, based on meta-strategy.
Keywords: intellectual property work, intellectual assets, knowledge management, inventivity, knowledge share,
meta-strategy
1. Introduction
Main part <strong>of</strong> industrial company activity is described as global production, dedicated to tangible assets
generation, generally without any innovation. Ano<strong>the</strong>r part <strong>of</strong> its activity includes innovative
components, liable to generate intangible assets within <strong>the</strong> Intellectual capital. Tracks <strong>of</strong> <strong>the</strong>se
intangible assets are made visible in <strong>the</strong> Information System through various media such as patents,
study reports, papers, …Among <strong>the</strong>ses tracks, an unusual medium, <strong>the</strong> Inventivity and Innovation
ocument (2ID) could be <strong>of</strong> some interest for companies as long as it represents a very valuable
Knowledge deposit: it’s easy to see that it materializes new knowledge issued by innovative experts
with respect to <strong>the</strong> very top state <strong>of</strong> <strong>the</strong> art. So, we think that structuring and sharing this new
knowledge within <strong>the</strong> company is mandatory to contribute to <strong>the</strong> innovation strategy by irrigating
transverse activities such as technical watch, R&D planning, innovation management, …, with this
knowledge.
The objective <strong>of</strong> <strong>the</strong> current paper is to build a conceptual framework for <strong>the</strong> benefit <strong>of</strong> inventive
activities organisation and definition <strong>of</strong> <strong>the</strong>ir mechanisms to be included in <strong>the</strong> 2ID. This paper will
define <strong>the</strong> concept <strong>of</strong> inventive activity. Moreover, it will show how to use <strong>the</strong> 2ID to increase <strong>the</strong>
Intellectual Corpus through a Knowledge value chain. This can be achieved through <strong>the</strong> identification
<strong>of</strong> inventive activities, <strong>the</strong>n through <strong>the</strong> definition <strong>of</strong> <strong>the</strong> writing process <strong>of</strong> this document and through
<strong>the</strong> use <strong>of</strong> it as a means <strong>of</strong> collective innovation stimulation for <strong>the</strong> design engineering actors.
2. The project <strong>of</strong> an industrial company R&D valorisation
2.1 Introduction to <strong>the</strong> R&D concept
According to French Ministère de l’Enseignement Supérieur et de la Recherche (MESR, 2010), R&D
means activities related to:
Fundamental Research
Applied Research aiming at finding new solutions to reach a determined target defined in
advance
Experimental Development devoted to <strong>the</strong> production <strong>of</strong> new elements (materials, products,
process, services, systems, …) or in preparation for <strong>the</strong>ir substantial amelioration
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Pierre Saulais and Jean-Louis Ermine
The activity <strong>of</strong> an industrial company will be mainly related to experimental development and secondly
to applied research. Fundamental research does belong to Academic research establishments.
Considering its double accountable and scientific nature, implementing a R&D valorisation document
could be a delicate task, on which our research work is focused.
2.2 Presentation <strong>of</strong> <strong>the</strong> R&D valorisation project
Determining inventivity assumes that exists a compatibility between an industrial logic based on Work
Breakdown Structure and an approach liable to separate Research from Development activities. So,
it’s mandatory to develop a reasoned, exhaustive and reproducible process based on a robust but
easy to run methodology. Research is mainly interested in discovering a technical problem not yet
solved in <strong>the</strong> frame <strong>of</strong> current state <strong>of</strong> art <strong>of</strong> reference Knowledge, <strong>the</strong>n in fixing it in determining <strong>the</strong>
scientific contribution to <strong>the</strong> state <strong>of</strong> Knowledge. Industrial development starts from a scope <strong>of</strong> work,
with requirements that must be simultaneously met in time, cost and performance axis: <strong>the</strong> industrial
engineering expert is more familiar with technical project management than with science.
To efficiently build a correct Inventivity and Innovation Document (2ID), <strong>the</strong> industrial engineering
expert (like o<strong>the</strong>r actors) must change his vision about his own activities, with a new vision based on
scientific logic ra<strong>the</strong>r than on industrial logic, through a scientific formalised description <strong>of</strong> inventive
activities. The proposed methodology aims at bringing to industrial actors <strong>the</strong> strictly necessary part <strong>of</strong>
academic culture required for <strong>the</strong> 2ID (training to <strong>the</strong> Research approach applied to solve technical
problems, close to <strong>the</strong> patent analysis). This project aims at building a process based on how to make
tacit Knowledge explicit through problem solving approaches having led to a new conception. We
want to tie a strong link between <strong>the</strong> methods <strong>of</strong> KM and <strong>the</strong> Innovation actors who are <strong>the</strong> company
technical experts (Inventivity part) but we also want to extend <strong>the</strong> quality <strong>of</strong> Innovation actors to o<strong>the</strong>r
people within <strong>the</strong> company (Innovation part), whose contribution will have generated a real
innovation.
The main objectives <strong>of</strong> <strong>the</strong> 2ID valorisation is to make <strong>the</strong> Technical Direction staff aware <strong>of</strong> <strong>the</strong>
stakes <strong>of</strong> Knowledge specific to <strong>the</strong> company. They must understand that <strong>the</strong> 2ID is a value deposit
(in <strong>the</strong> sense <strong>of</strong> KM and Intellectual Corpus) for all <strong>the</strong> R&D and Innovation actors. This value deposit
must be exploited to improve all <strong>the</strong> technical transverse activities (internal technical communication,
technical watch, R&D planning, Innovation management). This pragmatic application <strong>of</strong> <strong>the</strong> 2ID can
only fur<strong>the</strong>r <strong>the</strong> promotion <strong>of</strong> R&D ei<strong>the</strong>r among <strong>the</strong> peers (who can be gratified) or among <strong>the</strong>
company General Direction.
One key aspect <strong>of</strong> <strong>the</strong> research project consists in integrating <strong>the</strong> mechanisms <strong>of</strong> inventive activities
into <strong>the</strong> Information System and in taking benefit <strong>of</strong> its scientific syn<strong>the</strong>sis according to its dialectic
sense.
In <strong>the</strong> present paper, after <strong>the</strong> introduction (Paragraph 1), paragraph 2 describes <strong>the</strong> research project.
Paragraph 3 aims at defining and characterising <strong>the</strong> Intellectual Corpus and its links with <strong>the</strong> company
Information System. The concept <strong>of</strong> inventive activity is analysed in paragraph 4. Articulation <strong>of</strong> <strong>the</strong>
Intellectual Corpus and Knowledge value chain is discussed in paragraph 5. Paragraph 6 is devoted
to <strong>the</strong> justification <strong>of</strong> inventivity. Valorisation <strong>of</strong> inventive activity is discussed in paragraph 7.
Conclusion is presented in paragraph 8.
3. Intellectual corpus and information system
The introduction in <strong>the</strong> previous paragraph emphasized <strong>the</strong> tight association <strong>of</strong> finality and novelty <strong>of</strong>
<strong>the</strong> R&D activity. It admitted that this novelty could be total or partial, if it were extended to some
substantial amelioration. This association refers to an Intellectual property work intended to be
included into <strong>the</strong> Intellectual Corpus. The next paragraph aims at illustrating how this concept is
materialized by including its container into <strong>the</strong> Information System according to <strong>the</strong> systemic model <strong>of</strong>
Intellectual Corpus.
3.1 Intellectual property work and intellectual corpus
The French Intellectual Property Code states that <strong>the</strong> author <strong>of</strong> Intellectual property work has an
exclusive right <strong>of</strong> ownership arising out <strong>of</strong> its creation. This right includes moral rights on one hand
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Pierre Saulais and Jean-Louis Ermine
and economic rights on <strong>the</strong> o<strong>the</strong>r hand (Article L 111-1). By essence, this intangible property is
separated from <strong>the</strong> tangible property <strong>of</strong> <strong>the</strong> physical support <strong>of</strong> <strong>the</strong> Intellectual property work. So, <strong>the</strong>
concept <strong>of</strong> Intellectual property work emphasizes <strong>the</strong> duality between <strong>the</strong> content and <strong>the</strong> container.
The content is immaterialised thanks to its pure intellectual nature. The container belongs to <strong>the</strong>
sensible world, it can be transmitted for all kinds <strong>of</strong> transaction. The content belongs to <strong>the</strong> Intellectual
Corpus and <strong>the</strong> container belongs to <strong>the</strong> Information System.
Ermine (2008) defines <strong>the</strong> Knowledge System <strong>of</strong> an organisation as a set <strong>of</strong> Knowledge resources.
He points out how to switch from a Resource Based View (RBV) approach to a Knowledge Based
View (KBV) approach by considering Knowledge as a basic resource: here we focalise our attention
on <strong>the</strong> general process <strong>of</strong> creation. This process is based on Knowledge specially mobilized for <strong>the</strong>
creation <strong>of</strong> Intellectual property works. This particular Knowledge forms a part <strong>of</strong> <strong>the</strong> Knowledge
System that we will define as “Intellectual Corpus”.
3.2 Intellectual corpus and intellectual capital
Intangible capital is currently used today to refer to all <strong>the</strong> intangible elements <strong>the</strong> possession <strong>of</strong>
which is liable to bring an economic advantage to a company on its market. (Laperche, 2001 ;
Bounfour, 2006a ; Bounfour 2006b). According to Breesé (2004), <strong>the</strong>se elements can be seen as
intangible assets.
So, we can distinguish:
The intangible assets which are materialized and made explicit through a tangible support, having
given intellectual property rights ei<strong>the</strong>r registered (patent rights, trademarks, …) or not (copyrights
including moral rights and economic rights)
The Intellectual property works which are tacit, not formalized and non appropriable by <strong>the</strong>
organisation
Intellectual property works give intellectual property rights (IPR). These IPRs form a part <strong>of</strong> intangible
assets, which we will call Intellectual capital.
3.3 Systemic model <strong>of</strong> intellectual corpus
We want to propose a “creative system” within <strong>the</strong> company, generating Intellectual property works
which will be accumulated in <strong>the</strong> Intellectual Corpus and which will generate new value within <strong>the</strong>
Intellectual capital. Our model is focused on <strong>the</strong> Intellectual Corpus domain, not on <strong>the</strong> Intellectual
capital domain.
As <strong>the</strong> Intellectual Corpus acts as a sub-system <strong>of</strong> <strong>the</strong> Knowledge Corpus, <strong>the</strong> model proposed here
is based on <strong>the</strong> AIK model proposed in Ermine (2008).
The Knowledge actors [A] create Intellectual property works. They are considered as cognitive
personalities, owning <strong>the</strong>ir own cognition corpus. However, <strong>the</strong>y are closely inter-related, so that
<strong>the</strong> cognition corpus <strong>of</strong> <strong>the</strong> Knowledge actors is not limited to <strong>the</strong> addition <strong>of</strong> everyone
The Intellectual Corpus [L] is <strong>the</strong> system which includes <strong>the</strong> cognitive corpus <strong>of</strong> all <strong>the</strong> Knowledge
actors and which generates Intellectual property works. It includes creative works generating
moral property rights: <strong>the</strong> author rights are based on <strong>the</strong> fact that, as a conscious and thinking
human being, <strong>the</strong> author owns <strong>the</strong> very principles <strong>of</strong> his mind that he mobilizes in order to create
an original work (original meaning characteristic <strong>of</strong> its creator, as emphasised by <strong>the</strong> legal expert).
Creation does exist since <strong>the</strong> creator displays <strong>the</strong> principles <strong>of</strong> his mind which he mobilizes in
order to generate an Intellectual property work which is an integral part <strong>of</strong> his personality. In
addition to this individual dimension, <strong>the</strong> interactions between <strong>the</strong> Knowledge actors with <strong>the</strong>ir
personal cognitive corpus collectively generates Intellectual property work which is <strong>the</strong> very object
<strong>of</strong> our research
The Information sub-System [I] related to Intellectual Corpus, which is <strong>the</strong> explicit materialisation
<strong>of</strong> <strong>the</strong> Intellectual Corpus. It’s <strong>the</strong> part <strong>of</strong> SI which includes <strong>the</strong> supports <strong>of</strong> <strong>the</strong> Intellectual Corpus
such as patents, publications, study reports, supporting file for Research Tax Credit, …
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Actors
Intellectual
Corpus
Creativity
Pierre Saulais and Jean-Louis Ermine
Intellectual Corpus
Information System
expression
A I
L
appropriation
Inventivity
externalisation
internalisation
Figure 1: The AIL systemic model <strong>of</strong> intellectual corpus
Flows between [A] and [I] can easily be defined:
Expression: between [A] and [I], Intellectual property work can be materialized as a physical
support
Appropriation (according to <strong>the</strong> psychological but not to <strong>the</strong> legal sense): between [I] and [A], we
deal with <strong>the</strong> analysis, <strong>the</strong> understanding, <strong>the</strong> global appropriation <strong>of</strong> <strong>the</strong> existing content <strong>of</strong> <strong>the</strong>
Intellectual Corpus
The flow circulation between subsystems [A] and [I] will act as a catalyst with respect to <strong>the</strong> creation
which shows itself as flows from <strong>the</strong> sub-system [A, I] towards Intellectual Corpus [L]. The flow
entering into [L] describes <strong>the</strong> capacities allowing creation (creativity flow). The flow going out <strong>of</strong> [L]
consists <strong>of</strong> <strong>the</strong> instantiation <strong>of</strong> <strong>the</strong> capacities through <strong>the</strong> creation <strong>of</strong> Intellectual property works liable
to be materialized by information supports (inventivity flow).
We didn’t represent <strong>the</strong> external flows, assuming that <strong>the</strong>y influence <strong>the</strong> cognitive corpus <strong>of</strong> any
Knowledge actor, who owns specific personal and pr<strong>of</strong>essional knowledge that he got in situ (training,
pr<strong>of</strong>essional experience) or ex situ (conferences, seminars, networks, …).
To sum up, it seems that putting emphasis on <strong>the</strong> creator involved in his own creation is a necessary
condition to stimulate his inventive activity. Fur<strong>the</strong>rmore, as <strong>the</strong> company Intellectual Corpus is
intimately linked to <strong>the</strong> personal Intellectual Corpus <strong>of</strong> all <strong>the</strong> experts, encouraging <strong>the</strong> creation <strong>of</strong> an
Intellectual property work demands investments on <strong>the</strong> cognitive pr<strong>of</strong>ile <strong>of</strong> <strong>the</strong> experts and, more
globally, on Knowledge. Managing <strong>the</strong> inventive activity means managing experts and Knowledge.
The research consists in working out conditions and processes which will promote <strong>the</strong> inventive
activity.
4. «As usual» and inventive activities
The previous paragraph insisted on <strong>the</strong> need to divide R & D activities between non inventive and
inventive. The current paragraph aims at characterizing both <strong>of</strong> <strong>the</strong>m. Inventive criterions will be
presented in paragraph 6.
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Pierre Saulais and Jean-Louis Ermine
4.1.1 Creativity in broad sense
A definition <strong>of</strong> creativity admitted by numerous researchers is <strong>the</strong> ability to get a production which
must be simultaneously new and matched to its context (Amabile, 1996 ; Barron, 1988 ;
Lubart ,1994). The creative action is supposed to request an intentional and arduous work, <strong>the</strong>
realization <strong>of</strong> which must include numerous difficulties (Lubart, 2003).
According to Altshuller (1984), creativity can be mainly seen as an ability to solve problems, which are
defined as a gap between a planned and a really stated situation (Popper, 1994). A problem is called
« as usual » if its resolution process can easily be found by means <strong>of</strong> good old solutions tried and
tested in analogous contexts. A problem is called “not as usual” or creative if a substantial part or <strong>the</strong>
whole resolution process are unknown.
As a conclusion, general definition <strong>of</strong> creativity can be seen as <strong>the</strong> ability to solve an unusual problem
in a new way perfectly matching <strong>the</strong> context.
4.1.2 Creativity and Knowledge
Taking Palo Alto School’s point <strong>of</strong> view, according whom creativity is an ability to change one’s
perception, we will define creativity as <strong>the</strong> ability to see things in a different way and to drop <strong>the</strong>
existing representations.
So, creativity is a change in perception which can generate a new idea: creativity lies in a turn <strong>of</strong>
mind, in a state <strong>of</strong> mind. According to our assumption, <strong>the</strong> change (idea generation) gets cognitive
components (according to a process involving tacit Knowledge) and social components (according to
a process involving Knowledge communities). Creativity aims at modifying Knowledge based on
erudition, at revising and recombining Knowledge by giving <strong>the</strong>m new senses and new values. In <strong>the</strong>
AIL model, creativity is seen as a flow from [A] to [L] located in <strong>the</strong> posture domain, but without
tangible production in [I].
4.2 Inventivity
In literature, we can only find few definitions <strong>of</strong> inventivity (Rouquette, 1973). According to Bardin
(2006), <strong>the</strong> inventivity can be described as a «new production capacity related to any domain <strong>of</strong>
human activity ». Taking Palo Alto School’s point <strong>of</strong> view (Watzlawick, 1974), we will define
inventivity as <strong>the</strong> ability to change <strong>the</strong> reality <strong>of</strong> things or <strong>the</strong> elements <strong>of</strong> a system.
So, we can see that inventivity consists <strong>of</strong> <strong>the</strong> ability to create and to transform reality, to materialize a
new idea carrying change and liable to find an innovation traceable in <strong>the</strong> Information System.
According to <strong>the</strong> AIL model, inventivity is a flow from [L] to [I], located in <strong>the</strong> action domain.
4.3 « As usual » activity
Using <strong>the</strong> previous paragraph, we can define <strong>the</strong> « as usual » activity, without any negative
connotation, as <strong>the</strong> activity following <strong>the</strong> use or <strong>the</strong> combination <strong>of</strong> existing Knowledge and accessible
without any creative effort to <strong>the</strong> man <strong>of</strong> <strong>the</strong> art.
At this point, we are fully able to discriminate inventive activity from “as usual” activity, thanks to
conceptual definition <strong>of</strong> both. Before presenting inventive criterions (in section 6), <strong>the</strong> point is now to
link creation and Knowledge value.
5. The knowledge value chain
Paragraph 2.2 stated that <strong>the</strong> 2ID is a value deposit, according to Knowledge and Intellectual Corpus.
Paragraph 5 aims at introducing <strong>the</strong> Knowledge value chain concept and at showing that <strong>the</strong> project
generates a new vision where <strong>the</strong> approach based on non contextual Knowledge takes place <strong>of</strong> <strong>the</strong>
contextual approaches usually based on products and services.
Integrating KM into a company illustrates <strong>the</strong> move from <strong>the</strong> company ability to manage its Knowledge
Corpus to its ability to use this Knowledge to help its innovative employees to develop inventive
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competences and to transform <strong>the</strong>se individual competences into a product / service innovation
portfolio in line with <strong>the</strong> company strategy. These mutations are described in a value chain, called
Knowledge Value Chain (KVC : figure 2).
There are two ways to build a Knowledge Value Chain. The first one is directly inspired by <strong>the</strong> famous
Porters’ Productive value chain (Porter, 1985): it’s can be described as a series <strong>of</strong> activities which
regard Knowledge (Create – Code – Share – Transfer – Identify – Evaluate, …): see Wang &
Ahmed, 2005 for example. The second way can be described as a series <strong>of</strong> cognitive activities which
influences <strong>the</strong> processes related to <strong>the</strong> company Knowledge processing. The most famous one is <strong>the</strong>
DIKW (Data – Information – Knowledge – Wisdom) chain which describes all <strong>the</strong> necessary changes
to move from sensible reality to data, to information, to knowledge and to wisdom. We selected
“individual wisdom” to represent competence and “collective wisdom” to represent core competence.
The “individual” wisdom is defined as <strong>the</strong> capacity to think and to act by using knowledge, experience
and comprehension (Individual competence). The “collective wisdom” is defined as <strong>the</strong> ability <strong>of</strong> an
organisation to act according to a shared strategic vision. A full analysis <strong>of</strong> this chain is available in
Rowley (2007).
Context
(Situation)
Sense
(Interpretation)
Syntax
(Form)
Observation Structuring Learning Experience Vision
Perceptive
Filters
Conceptual
Filters
Signs Codes
Data Information
Theories
Models
Action
Know How
Explicit / Tacit Competence Capacity
Knowledge Wisdom
Strategic
Filters
KM
Strategy
Performance
Knowledge
Figure 2: Change processes in <strong>the</strong> knowledge value chain
We focus here on to <strong>the</strong> second type <strong>of</strong> value chain, as a collection <strong>of</strong> Knowledge creation processes
fully embedded in <strong>the</strong> company innovative activity.
The successive changes in <strong>the</strong> Knowledge Value Chain can be described in <strong>the</strong> following simplified
way (figure 2):
Reality into data: receiving signals through perceptive filters (observation activity)
Data into information: encoding data though conceptual filters (structuring activity)
Information into knowledge: building <strong>the</strong>ory-based models (training activity)
Knowledge into competence: developing a set <strong>of</strong> expertise for action (actionable know-how in
experience context)
Competence into capacity: building a Knowledge-related strategy through strategic filters
(strategic alignment within a global vision <strong>of</strong> <strong>the</strong> organisation)
For each step in <strong>the</strong> chain, <strong>the</strong> organisation raises <strong>the</strong> level <strong>of</strong> its cognitive capacity, if it puts suitable
management tools in place. Only <strong>the</strong> chain output, which results from a well-controlled innovation
process and consists <strong>of</strong> a portfolio <strong>of</strong> products / services, can be transformed into commercial value.
This final value comes from <strong>the</strong> accumulation <strong>of</strong> intermediate values which are essential for its
creation: data collection, information structuring, discursive organisation <strong>of</strong> information, training and
strategic analysis. A description <strong>of</strong> this chain is given in figure 2 and figure 3.
First step consists in building its organisational memory by storing and processing data. Then, use <strong>of</strong>
processes and <strong>of</strong> information processing tools creates sense for this data accumulation (used for
operations or for decisions). KM makes <strong>the</strong> company become learning, because it optimises <strong>the</strong> use
<strong>of</strong> available information to create, acquire and transfer knowledge. This knowledge is embodied in
people through action. These people get experience and <strong>the</strong>y are able to have an intelligent
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behaviour: react in an adapted way to new situations and produce inventive solutions when coping
with current life problems.
Data Management
Data
Information Management
Information
Knowledge Management
Capacities Management
Competencies Management
Explicit Tacit Competency Capacity
Knowledge Wisdom
Knowledge Value Chain
Innovation
Inventivity
Learning
Understanding
Storage
Performance
Cognitive Value Chain
Knowledge
Figure 3: The knowledge value chain as advance <strong>of</strong> <strong>the</strong> company cognitive capacities
This research aims at providing methods and tools to optimise some changes in this Knowledge
Value Chain and to enhance <strong>the</strong> innovative capacity <strong>of</strong> <strong>the</strong> company.
This mechanism is still more pregnant within R&D activities, but in order to update valorisation, it’s
mandatory to describe <strong>the</strong> trajectory <strong>of</strong> inventive activities within <strong>the</strong> value chain, in terms <strong>of</strong> increase
in competences, capacities and individual & collective wisdom.
Next step <strong>of</strong> <strong>the</strong> research is devoted to <strong>the</strong> justification <strong>of</strong> inventivity.
6. Pro<strong>of</strong> <strong>of</strong> inventivity
6.1 Principle <strong>of</strong> inventivity criterions
A 2ID only implies inventive activities. As inventivity can only result from a creativity flow (according to
<strong>the</strong> AIL model), it can be defined as characteristic <strong>of</strong> an activity generated by <strong>the</strong> organization facing
such a technical problem that it cannot be solved by <strong>the</strong> man <strong>of</strong> <strong>the</strong> art within <strong>the</strong> current state <strong>of</strong>
Knowledge.
The above principle states that, at <strong>the</strong> very moment when <strong>the</strong> problem is formulated, no solution can
apply to it as long as it raises new difficulties: <strong>the</strong> technical problem is reputed to lie in scientific
and/or technological uncertainty, so that no diagnosis can be made before setting up a complete state
<strong>of</strong> <strong>the</strong> art including Knowledge accessible to and actionable by <strong>the</strong> man <strong>of</strong> <strong>the</strong> art in <strong>the</strong> concerned
field.
Facing a non yet solved problem requires <strong>the</strong> definition and launch <strong>of</strong> specific investigation works
(inclusion in <strong>the</strong> inventive field) which must demonstrate a substantial and significant gap from <strong>the</strong>
current practice in <strong>the</strong> concerned field: <strong>the</strong>se investigation works must demand such an expertise
that <strong>the</strong>y require a creative and inventive support from experts well beyond <strong>the</strong> current know-how <strong>of</strong>
<strong>the</strong> pr<strong>of</strong>ession. By carrying over <strong>the</strong>se innovative tasks, <strong>the</strong> experts will generate new and inventive
Knowledge, <strong>the</strong> arrangement <strong>of</strong> which will bring a solution to <strong>the</strong> technical problem (inclusion in <strong>the</strong>
state <strong>of</strong> <strong>the</strong> art <strong>of</strong> <strong>the</strong> technical community). The originality (in <strong>the</strong> Intellectual Property sense), novelty
and inventivity <strong>of</strong> this Knowledge as well as <strong>the</strong> increase in <strong>the</strong> state <strong>of</strong> <strong>the</strong> art <strong>of</strong> Knowledge
represent as many discriminative estimators.
6.2 Proposed methodology
The proposed methodology aims at bringing to industrial actors <strong>the</strong> strictly necessary part <strong>of</strong>
academic culture that is mandatory to build Inventive and Innovation documents.
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It consists in applying an usual approach <strong>of</strong> novelty and inventivity pro<strong>of</strong> (similar to <strong>the</strong> patent
identification) to <strong>the</strong> resolution <strong>of</strong> technical problems:
Set <strong>the</strong> problematic with respect to <strong>the</strong> community state <strong>of</strong> <strong>the</strong> art
Establish <strong>the</strong> community state <strong>of</strong> <strong>the</strong> art before setting <strong>the</strong> problematic and after its fixing
Prove that <strong>the</strong> activity is not limited to a simple arrangement <strong>of</strong> means or Knowledge but that it
represents a creation
This approach is not natural for a design engineer, who is used to cope with performance criterions.
In terms <strong>of</strong> KM, this inventive criterion results from a problem solving approach which remains
generally tacit in experts’ mind. The methodology uses a Knowledge Engineering method (Ermine,
2008) to make <strong>the</strong> mechanism explicit and to include in into <strong>the</strong> 2ID.
Next step <strong>of</strong> <strong>the</strong> research consists in demonstrating that, thanks to <strong>the</strong> 2ID, <strong>the</strong> end <strong>of</strong> inventive
project in its specific technical domain is <strong>the</strong> beginning <strong>of</strong> a new life in <strong>the</strong> Knowledge domain.
7. Valorisation <strong>of</strong> inventive activities
7.1 Introduction
One objective <strong>of</strong> this up stream part <strong>of</strong> <strong>the</strong> project is to make Technical Direction staff aware <strong>of</strong> <strong>the</strong>
2ID being a value deposit in terms <strong>of</strong> Knowledge for all R&D actors and decision makers. Numerous
authors already studied <strong>the</strong> application <strong>of</strong> Knowledge Management to <strong>the</strong> realization <strong>of</strong> <strong>the</strong> company
organisational goals (Avenier, 2007 - Ferrary, 2006 – Rojot, 2005 - Tidd, 2006).
According to <strong>the</strong> Knowledge chain value described in paragraph 5, writing <strong>the</strong> 2ID increases <strong>the</strong>
individual cognitive capacities <strong>of</strong> experts thanks to <strong>the</strong> description <strong>of</strong> <strong>the</strong>ir inventive Knowledge.
Moreover, having explicit documents is a mean to share innovative experience. Finally, <strong>the</strong> whole 2ID
describes <strong>the</strong> annual inventive production <strong>of</strong> a given organization. This material could feed <strong>the</strong>
transverse technical management activities, such as technical watch, R&D planning and innovation
management.
7.2 Creativity stimulation by means <strong>of</strong> <strong>the</strong> 2ID
Proposed methodology is based on <strong>the</strong> stimulation <strong>of</strong> experts’ creativity through <strong>the</strong> confrontation to a
Knowledge Corpus which syn<strong>the</strong>sizes <strong>the</strong> company Intellectual production (Saulais, 2011). This
corpus is fed with cognitive maps which describe a technical object through ten Knowledge domains.
These domains include constitutive elements based on a physical description (Domains 1 to 6), <strong>the</strong>n
<strong>the</strong> physical medium <strong>of</strong> operation (7). The last three domains include models (8), computational and
processing operators (9) and system architecture (10). Each domain can be seen as a complex
system (Bertalanffy, 1968), which is classically described according to systemic points <strong>of</strong> view:
functional (what <strong>the</strong> systems does), structural (what <strong>the</strong> system is), applicative (what <strong>the</strong> system is
designed for). The genetic aspect (system evolution) is not analysed here. For each Knowledge
domain, <strong>the</strong> intellectual production is evaluated through ten criterion. Figure 4 gives an example <strong>of</strong>
cognitive map for <strong>the</strong> Algorithm domain. Intellectual production according to each point <strong>of</strong> view will be
evaluated thanks to <strong>the</strong> criterions, ei<strong>the</strong>r quantitative (related to an inventory <strong>of</strong> Intellectual property
works) or qualitative (related to <strong>the</strong> appreciation <strong>of</strong> <strong>the</strong> deployed inventivity).
The point here is to apply this methodology based on <strong>the</strong> scientific syn<strong>the</strong>sis <strong>of</strong> <strong>the</strong> 2ID through
inventory, novelty and inventivity, state <strong>of</strong> <strong>the</strong> art criterions,
7.3 Process description
According to Saulais (2011), creativity stimulation process is applied to <strong>the</strong> company experts through
six steps:
Step 1 : As soon as cognitive maps and intellectual production evaluation diagrams are ready for
every domain, results per domain are shown to a selected expert. He is asked to react to <strong>the</strong>
syn<strong>the</strong>sis <strong>of</strong> his domain by referring to his own knowledge. Then emerge numerous critics,
statements and proposals <strong>of</strong> evolution in <strong>the</strong> concerned domain
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Figure 4: A cognitive map <strong>of</strong> Intellectual Corpus according to one Knowledge domain
Step 2 : Results from step 1 are compiled and submitted to all experts. Every domain expert will
defend his own analysis and proposals against all <strong>the</strong> o<strong>the</strong>r experts. Step 2 results in a set <strong>of</strong>
consensual proposals per domain
Step 3 : The set <strong>of</strong> proposals is again submitted to all experts to score a priority level
Step 4 : The proposals with priority level will be revised by alignment with <strong>the</strong> company strategy. This
step is collectively carried over by all experts assisted by <strong>the</strong> Strategy Director
Step 5 : The results <strong>of</strong> strategic alignment with justifications are transmitted to all <strong>the</strong> R&D actors
Step 6 : All <strong>the</strong> proposals issued from step 5 are translated into a medium-term or long-term R&D
plan, with a set <strong>of</strong> recommendations to feed transverse technical strategic
This process is currently being tested within a large international company. In this experiment,
audience <strong>of</strong> step 3 to step 5 is extended to technical direction staff.
8. Conclusion
By showing <strong>the</strong> strong link between inventivity and KM, <strong>the</strong> scientific interest <strong>of</strong> this research project
appears in <strong>the</strong> robust <strong>the</strong>oretical frame able to structure inventive activities and <strong>the</strong>ir mechanisms to
be described in <strong>the</strong> 2ID, for company internal use. Besides, this research project introduces an
original vision <strong>of</strong> a company R&D activity, where <strong>the</strong> approach by non contextual inventive Knowledge
takes place <strong>of</strong> usual contextual approaches through products and services.
The interest for <strong>the</strong> company consists in getting an operational methodology liable to make its culture
evolve in <strong>the</strong> inventive activity domain, mainly in transferring scientific culture from academy to
industry. This project aims at building a first process based on how to make tacit Knowledge explicit
through problem solving approaches having led to a new conception. Then <strong>the</strong> results issued from
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this first process are to be applied to a second transverse strategic process monitoring all <strong>the</strong>
technical activity through an organisational learning approach.
More generally, we can see that <strong>the</strong> benefit expected in terms <strong>of</strong> KM generates a virtuous cycle which
strongly motivates a deep and accurate description <strong>of</strong> results and mechanisms <strong>of</strong> inventive activities:
<strong>the</strong> so-described loop not only helps <strong>the</strong> progress within <strong>the</strong> company Knowledge value chain, but it
also generates intangible assets and it is finally itself auto-gratifying.
References
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Amabile, T. (1996) Creativity in context, Update to <strong>the</strong> social psychology <strong>of</strong> creativity Boulder : Westview Press
Avenier, M-J. & Schmitt, C. (2007) La construction des savoirs pour l'action, Paris : L’Harmattan
Bertalanffy, L. von (1968), General System Theory, New York: Georges Braziller (Théorie générale des
systèmes, Paris : Bordas, 1973, pour la traduction française, Dunod, 1993, pour la nouvelle édition)
Bounfour, A. & Epinette, G. (2006a) Valeur et performance des SI, une nouvelle approche du capital immatériel
de l'entreprise, Paris : Dunod
Bounfour, A. (2006b) Capital immatériel, connaissance et performance, Paris : L’Harmattan
Breesé, P. & Kaiser, A. (2004) L’Evaluation des droits de propriété industrielle, valoriser les trésors cachés de
votre entreprise, Paris : Gualino
Ermine, J-L. (2008) Management et ingénierie des connaissances, modèles et méthodes, Paris : Hermès-
Lavoisier
Ferrary, M. & Pesqueux, Y. (2006) Management de la Connaissance : Apprentissage organisationnel et Société
de la Connaissance, Paris : Economica
Laperche, B. (2001), Propriété Industrielle et Innovation, Paris : L’Harmattan
Lubart, T. (1994) Creativity, in Sternberg, R.J. Thinking and Problem Solving, New York: Academic Press
Lubart, T. (2003) Psychologie de la créativité, Paris : Armand Colin
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Porter, M. (1985) Competitive Advantage: Creating and Sustaining Superior Performance New York : New York
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Reilly, R. & Schweihs, R. (2001) Valuing Intangible Assets, Irwin Library
Rojot, J. (2005) Théorie des organisations, Paris : Eska
Rowley, J. (2007) The wisdom hierarchy: representations <strong>of</strong> <strong>the</strong> DIKW hierarchy Journal <strong>of</strong> Information Science
33 (2), p.163-180
Saulais, P. & Ermine, J-L. (2011) Créativité & Gestion des Connaissances 4ème Colloque Gestion des
connaissances, Société et Organisations (Clermont Ferrand)
Smith G. & Parr, R. (1990), Valuation <strong>of</strong> Intangible Assets and Intellectual Property, New York: John Wiley &
Sons (3 rd edition: 2000)
Tidd, J. et al. (2006) Management de l'innovation : Intégration du changement technologique, commercial et
organisationnel, Paris : De Boeck
Watzlawick, P ; Weakland, J & Fisch, R. (1974) Change, Principles <strong>of</strong> Problem Formation and Problem
Resolution, W.W. Norton & Co (Changements, Paradoxes et psychothérapie, Paris : Editi
503

Leadership Behaviour Practices in Knowledge-
Management Implementation
Joyce Nesamani Simson, Alan Giffin Downe, and Rohiza Ahmad
Universiti Teknologi Petronas, Perak, Malaysia
joycesimson@petronas.com.my
alan_downe@petronas.com.my
rohiza_ahmad@petronas.com.my
Abstract: In our dynamic environment with its accelerating technological progress, knowledge has become a
very important asset through which firms can acquire competitive advantages. The challenge facing knowledge
management pr<strong>of</strong>essionals is how to leverage knowledge for improving organisational performance. The purpose
<strong>of</strong> this paper is to investigate <strong>the</strong> relationship as well as <strong>the</strong> impact <strong>of</strong> leadership styles on knowledge
management (KM) practices. It is necessary for companies to organise <strong>the</strong>ir knowledge in order to succeed in
today’s economy. This is also consistent with <strong>the</strong> knowledge-based view <strong>of</strong> companies: knowledge could help a
company maintain its competitive advantage. With this, it is imperative for employees to engage in knowledge
sharing among <strong>the</strong>mselves, considering its potential impact on enhancing <strong>the</strong> effectiveness <strong>of</strong> organisations. The
differentiating factor <strong>of</strong> this research would be that TAM would be infused with <strong>the</strong> Kouzes and Posner Five
Leadership Practices, developed in <strong>the</strong> last 15 years from original work by Tom Peters. In The Five Practices <strong>of</strong>
Exemplary Leadership, Jim Kouzes and Barry Posner, authors <strong>of</strong> The Leadership Challenge and Credibility,
uncover <strong>the</strong> fundamental practices that have enabled leaders to get extraordinary things done by studying <strong>the</strong>
times when leaders performed at <strong>the</strong>ir personal best. Kouzes and Posner advocate leading ordinary people in
accomplishing <strong>the</strong> extraordinary. In <strong>the</strong> context <strong>of</strong> this study, it would be to evaluate how leaders successfully
lead KM implementation in <strong>the</strong>ir organisations. Kouzes and Posner explore how leaders get o<strong>the</strong>rs to follow <strong>the</strong>m
to places <strong>the</strong>y have never been before. They also discuss how leaders get o<strong>the</strong>rs, by free will and through free
choice, to move forward toge<strong>the</strong>r on a common purpose. In relation to KM, this model <strong>of</strong> leadership would be
useful to study how to get o<strong>the</strong>rs to want to do things that matter, namely KM implementation and make a
difference. The model is based on solid research by Kouzes and Pozner, combining two perspectives. The
research involved asking leaders and followers questions around: (i) what qualities individual leaders believed
<strong>the</strong>y needed when <strong>the</strong>y were at <strong>the</strong>ir most successful, and (ii) what qualities those who were being led believed
were important when <strong>the</strong>y felt <strong>the</strong>mselves being well led. Since leadership is perceived to be ‘a process between
those who choose to lead and those who choose to follow’, this paper will explore how reciprocal processes
occur in <strong>the</strong> knowledge sharing context. This study will be based on surveys conducted in a leading multinational
organisation in Malaysia. In developing an understanding <strong>of</strong> acceptance and resistance towards KM in <strong>the</strong>
organisation, <strong>the</strong> leadership attributes will also be explored as part <strong>of</strong> <strong>the</strong> research. As a conclusion, this study
will aim to identify <strong>the</strong> influence <strong>of</strong> personal orientation coupled with leadership traits that would create intention
towards using KM in employees, thus providing a guideline for leadership practices in KM implementation.
Keywords: knowledge management, leadership behaviour, success model
1. Introduction
Knowledge management (KM) is a dominant <strong>the</strong>me in <strong>the</strong> behaviour <strong>of</strong> contemporary organisations.
We are now moving steadily from an information age to a knowledge age, where knowledge has been
recognised as <strong>the</strong> most important aspect in human life. Individuals and organisations are starting to
understand and appreciate knowledge as <strong>the</strong> most valued asset in <strong>the</strong> emerging competitive
environment. Knowledge is a powerful tool that can make changes to <strong>the</strong> world. It is now considered
as <strong>the</strong> main intangible ingredient in <strong>the</strong> melting pot that makes innovation possible (Kandpall, 2003).
In an article that appeared in <strong>the</strong> Harvard Business Review, Nonaka began with <strong>the</strong> simple
introductory words: “In an economy where <strong>the</strong> only certainty is uncertainty, <strong>the</strong> one sure source <strong>of</strong>
lasting competitive advantage is knowledge” (Sarabia, 2007).
KM is not just about classifying knowledge and building IT-focused systems in order to store, search,
retrieve, and visualise it. Ra<strong>the</strong>r, KM is more about identifying tacit knowledge and knowledge users
and matching <strong>the</strong>m to work processes so that knowledge is directed to those who need to apply it with
<strong>the</strong> result that value is added to <strong>the</strong> organisation (Nissen, 2006).
In this view, a knowledge flow is <strong>the</strong> movement <strong>of</strong> knowledge from repositories; for tacit knowledge,
this is usually people, to those who need to use <strong>the</strong> knowledge to accomplish some task. According to
Rollett (2007), <strong>the</strong>se principles reflect <strong>the</strong> key issues in KM. The first reflects that tacit knowledge is
“sticky,” meaning that it is difficult to pass from a knower to someone who needs to learn but does not
necessarily possess <strong>the</strong> context <strong>of</strong> understanding needed to assimilate <strong>the</strong> knowledge. The second
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reflects that knowers can apply knowledge to solving problems and performing tasks that are <strong>of</strong> value
to <strong>the</strong> organisation; it illustrates that knowledge has value. The third reflects <strong>the</strong> process needed to
flow knowledge from a knower to a knowledge user. Knowledge flow can be defined as <strong>the</strong> dynamic
movement <strong>of</strong> knowledge between coordinates (between individuals or organisations, or points in
space or time).
It is necessary for companies to organise <strong>the</strong>ir knowledge in order to succeed in today’s economy.
This is also consistent with <strong>the</strong> knowledge-based view <strong>of</strong> companies: knowledge could help a
company maintain its competitive advantage. However, knowledge is kept in <strong>the</strong> human brain as well
as in documents, and it has been suggested that people tend to turn to o<strong>the</strong>r people for information
ra<strong>the</strong>r than to documents and intranets (Remenyi and Griffiths, 2009; Griffiths and Remenyi, 2008).
What is more, knowledge sharing is needed when people attempt to solve complicated or
unstructured problems. Thus, knowledge sharing between employees is quite a significant issue,
considering its potential impact on enhancing <strong>the</strong> effectiveness <strong>of</strong> firms.
Recently, many researchers acknowledge <strong>the</strong> importance <strong>of</strong> leadership in knowledge
management. However, relatively little attention has been paid to <strong>the</strong> detailed processes by
which leadership style would exert an impact on knowledge-management activities (Huang, et.
Al., 2008).
Anantatmula (2008) claims that “leveraging knowledge, particularly tacit knowledge, is <strong>the</strong> key to
sustained competitive advantage in <strong>the</strong> future.” Lakshman (2007) emphasises that “Knowledge is
nothing without people. People have knowledge, develop it and act on <strong>the</strong> basis <strong>of</strong> it. Data can be
transmitted, information can be shared, but knowledge is an attribute <strong>of</strong> people, or communities or
societies”. Knowledge only exists because <strong>of</strong> people. Knowledge comes as a person uses information
and combines it with <strong>the</strong>ir personal experience. Much <strong>of</strong> <strong>the</strong> knowledge one acquires and ga<strong>the</strong>rs in
one’s head has its own value, and it is that which makes each <strong>of</strong> us unique and valuable to society as
a whole and to organisations. Aramburu, et.al (2007) have also suggested that <strong>the</strong> two greatest
assets that companies have are <strong>the</strong> people that work with <strong>the</strong>m and knowledge in <strong>the</strong>ir workers’
heads.
2. Leadership practices in <strong>the</strong> context <strong>of</strong> KM application
The model to be used would be <strong>the</strong> Kouzes and Posner Five Leadership Practices, developed in <strong>the</strong>
last 15 years from original work by Tom Peters. In The Five Practices <strong>of</strong> Exemplary Leadership, Jim
Kouzes and Barry Posner, authors <strong>of</strong> The Leadership Challenge and Credibility, uncover <strong>the</strong>
fundamental practices that have enabled leaders to get extraordinary things done by studying <strong>the</strong>
times when leaders performed at <strong>the</strong>ir personal best (Kouzes and Posner, 2007).
This model argues, based on a research project with successful leaders, that <strong>the</strong>y must demonstrate
at least some <strong>of</strong> at five key ‘practices’ to be successful. Kouzes and Posner advocate leading ordinary
people in accomplishing <strong>the</strong> extraordinary!
They explore how do leaders get o<strong>the</strong>rs to follow <strong>the</strong>m to places <strong>the</strong>y have never been before. They
also discuss how leaders get o<strong>the</strong>rs, by free will and through free choice, to move forward toge<strong>the</strong>r on
a common purpose. In relation to KM, this model <strong>of</strong> leadership would be useful to study how to get
o<strong>the</strong>rs to want to do things that matter and make a difference.
The model is based on solid research Kouzes and Pozner, combining two perspectives which were
ga<strong>the</strong>red over an initial five year period. The research involved asking leaders and followers questions
around:
what qualities individual leaders believed <strong>the</strong>y needed when <strong>the</strong>y were at <strong>the</strong>ir most successful
what qualities those who were being led believed were important when <strong>the</strong>y felt <strong>the</strong>mselves being
well led
Analysis <strong>of</strong> <strong>the</strong> data revealed an underlying pattern <strong>of</strong> agreement – between leaders and those being
led – about <strong>the</strong> leadership behaviours that emerged when people were accomplishing extraordinary
things in organisations. These were <strong>the</strong>n codified as <strong>the</strong> five practices <strong>of</strong> leadership.
When working at <strong>the</strong>ir best leaders said <strong>the</strong>y challenged, inspired, enabled, modelled and
encouraged. And <strong>the</strong>y did this through committing <strong>the</strong>mselves to particular sets <strong>of</strong> behaviour linked to
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<strong>the</strong>se values. Importantly Kouzes and Posner argued that <strong>the</strong>se leadership behaviours were an
observable and learnable set <strong>of</strong> practices, available to anyone prepared to spend time developing
<strong>the</strong>m.
Figure 1 outlines <strong>the</strong> research model used for this study:
Figure 1: Research model
The five practices and <strong>the</strong>ir implications for leaders are as follows:
Model <strong>the</strong> Way
Modelling means being prepared to go first, living <strong>the</strong> behaviours you want o<strong>the</strong>rs to adopt before
asking <strong>the</strong>m to adopt <strong>the</strong>m. People will believe not what <strong>the</strong>y hear leaders say, but what <strong>the</strong>y see <strong>the</strong>ir
leaders consistently do. Great leaders should serve as an example to o<strong>the</strong>rs:
Set an example for o<strong>the</strong>rs by behaving in ways that are consistent with your stated values
Plan small wins that promote consistent progress and build
KM Application:
Does <strong>the</strong> leader tighten his own belt before asking o<strong>the</strong>rs to cut back on expenditure?
If <strong>the</strong> organisation is in fundraising, do <strong>the</strong> leaders donate to <strong>the</strong>ir own cause as an example <strong>of</strong>
modelling <strong>the</strong> way for donors?
Inspire a Shared Vision
Kouzes and Posner found in <strong>the</strong>ir research that people are motivated most not by fear or reward, but
by ideas that capture <strong>the</strong>ir imagination. This is not so much about having a vision, but communicating
it effectively so that o<strong>the</strong>rs take it on board. Great leaders are future orientated and seek to energise
o<strong>the</strong>rs by passion, enthusiasm and emotion. They want to bring people on board with this sense <strong>of</strong>
shared purpose. They will:
Envision an uplifting and ennobling future
Enlist o<strong>the</strong>rs in a common vision by appealing to <strong>the</strong>ir values, interests, hopes and dreams
KM Application:
It is easy to concentrate too much on crafting <strong>the</strong> perfect words for a vision and mission
statement, and not enough on communicating it.
Can <strong>the</strong> staff repeat – or even remember – <strong>the</strong>ir organisation’s mission?
How hard do <strong>the</strong>y try to share it with o<strong>the</strong>rs?
Challenge <strong>the</strong> Process
The research found that leaders thrive on and learn from adversity and difficult situations. They are
risk takers who regard failure – where not caused by poor performance – as a useful chance to learn
and innovate. They are also early adopters <strong>of</strong> innovation. They seek out things that appear to work
and <strong>the</strong>n insist that <strong>the</strong>y are improved. This practice suggests that we shouldn’t be content to do
‘business as usual’. A leader needs to:
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Seek challenging opportunities to change, grow, innovate, and improve
Experiment, take risks, and learn from <strong>the</strong> accompanying mistakes
KM Application:
Consider whe<strong>the</strong>r <strong>the</strong> staff are able to challenge any part <strong>of</strong> <strong>the</strong>ir organisation’s work.
How many ideas does <strong>the</strong> organisation have to implement?
Are <strong>the</strong> staff prepared to take risks?
Enable O<strong>the</strong>rs to Act
Leaders do not seek to achieve it all <strong>the</strong>mselves – <strong>the</strong>y achieve results through o<strong>the</strong>rs. However, <strong>the</strong>y
do this not by simply repeating <strong>the</strong> vision mantra – encouragement and exhortation is not enough.
People must feel able to act and <strong>the</strong>n must be supported to put <strong>the</strong>ir ideas into action. Collaboration
and relationship-based work is central to success. A leader needs to:
Foster collaboration by promoting co-operative goals and building trust
Streng<strong>the</strong>n o<strong>the</strong>rs by sharing information and power and by increasing <strong>the</strong>ir discretion and
visibility
KM Application:
Who in <strong>the</strong> team or organisation needs help and encouragement to act?
What would help <strong>the</strong>m to act?
Encourage <strong>the</strong> Heart
Finally Kouzes and Posner established that people act best <strong>of</strong> all when <strong>the</strong>y are passionate about
what <strong>the</strong>y’re doing. Leaders unleash <strong>the</strong> enthusiasm <strong>of</strong> <strong>the</strong>ir followers with stories and passions <strong>of</strong>
<strong>the</strong>ir own. They enjoy celebrating successes – even small ones – and will tend to tackle difficult
projects through recognising o<strong>the</strong>rs’ contributions. They:
Recognise individual contributions to <strong>the</strong> success <strong>of</strong> every project
Celebrate team accomplishments regularly
KM Application:
Consider <strong>the</strong> organisation’s last initiative – did it meet this encouragement criterion?
Was it exciting – or dull and safe?
What could <strong>the</strong> leaders do to encourage <strong>the</strong> heart at an organisational level?
3. Measuring <strong>the</strong> attitude employed by KM practitioners
This study attempted to measure <strong>the</strong> attitude <strong>of</strong> <strong>the</strong> employees towards using KM programmes. The
variables used to measure attitude were adapted from a study conducted by Smith, McKeen and
Singh (2010). They used <strong>the</strong> work by Marchand to demonstrate that <strong>the</strong>re are six interdependent
beliefs and behaviours that could demonstrate <strong>the</strong> presence <strong>of</strong> a KM mindset.
Based on <strong>the</strong>ir study, <strong>the</strong> six variables used to measure attitude towards KM usage can be described
as follows:
Integrity
Integrity refers to <strong>the</strong> confines by which <strong>the</strong> staff in an organisation can trust <strong>the</strong>ir colleagues to do
with knowledge what <strong>the</strong>y would do <strong>the</strong>mselves for where integrity exists, people will have confidence
that knowledge will not be used inappropriately.
Formality
This is <strong>the</strong> ability to trust formal sources <strong>of</strong> knowledge. With this, staff are able to trust <strong>the</strong>
organisation to provide accurate and consistent knowledge about <strong>the</strong> business and establish formal
processes and knowledge flows that can be used to improve performance and provide services to
customers.
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Joyce Nesamani Simson et al.
Once formal knowledge is trusted, it can be used to develop integrated performance criteria and
measures for all levels <strong>of</strong> <strong>the</strong> company. In time, <strong>the</strong>se will enable monitoring and performance
improvement at <strong>the</strong> individual and work unit levels and can be linked to compensation and rewards.
Transparency
This describes a level <strong>of</strong> trust between members <strong>of</strong> <strong>the</strong> organisation which enables <strong>the</strong>m to speak
about errors or failures in an open and constructive manner without fear <strong>of</strong> unfair repercussions.
Transparency is necessary to identify and respond effectively to problems and for learning to take
place.
Sharing
At this level, both sensitive and non-sensitive knowledge is freely exchanged between individuals and
across functional boundaries. Knowledge exchanges are both initiated by employees and formally
promoted through programmes and forums.
Proactiveness
With a high degree <strong>of</strong> proactiveness, every staff is alert to picking up new knowledge about business
conditions and is open to testing new concepts. The staff operate in an environment where <strong>the</strong>y are
open to embracing new challenges and constantly developing <strong>the</strong>mselves to perform better.
4. Study methodology
4.1 Survey procedure
The survey questionnaire was administered to employees <strong>of</strong> a leading multinational organisation in
Malaysia following a brief set <strong>of</strong> instructions. The participants were given ample time to complete <strong>the</strong>
instrument (generally 20 minutes was sufficient). A total <strong>of</strong> 200 questionnaires were distributed and
155 questionnaires were returned (77.5%). The study involved Malaysian managers from <strong>the</strong> oil and
gas industry. The survey was administered in English as English is <strong>the</strong> <strong>of</strong>ficial business language in
<strong>the</strong> organisation.
4.2 Survey instrumentation
The Leadership Practices Inventory (LPI) for a self assessment to study how frequently <strong>the</strong>
employees engage in <strong>the</strong> behaviour described was utilised in this questionnaire. This inventory
focused exclusively on <strong>the</strong> behavioral aspects <strong>of</strong> knowledge management and <strong>the</strong> content <strong>of</strong> <strong>the</strong>
questions was derived from <strong>the</strong> Kouzes and Posner (2007) typology <strong>of</strong> leadership behaviour. Kouzes
and Posner had five categories <strong>of</strong> leadership behaviour and five questions form each <strong>of</strong> <strong>the</strong>
categories.
Employees did a self analysis on <strong>the</strong>ir specific leadership attributes using <strong>the</strong> ten-point Likert scales
ranging from almost never to almost always. The response rate in this study is considerably high.
Once created, <strong>the</strong> questionnaire was administered to a pilot sample (n ¼ 99) for <strong>the</strong> purposes <strong>of</strong>
establishing reliability estimates (a ¼ 0:86). Four <strong>of</strong> <strong>the</strong> questions were fur<strong>the</strong>r clarified based on this
analysis to improve <strong>the</strong> instrument. The LPI achieved an alpha reliability <strong>of</strong> 0.89 in this sampling.
Based on Kouzes and Posner’s typology, a series <strong>of</strong> subscales were computed by inferring
Marchand’s six variables to measure attitude towards KM usage. The reliability scores for <strong>the</strong>
subscales ranged from a ¼ 0:95 to a ¼ 0:51.
4.3 Leadership practices behaviour and knowledge management
The primary goal <strong>of</strong> this investigation was to assess <strong>the</strong> relationship between leadership practices and
knowledge management behaviours <strong>of</strong> employees. To determine <strong>the</strong> extent <strong>of</strong> <strong>the</strong> relationship
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between leadership behaviour practices and <strong>the</strong> attitude <strong>of</strong> employees towards using KM, several
correlations were computed. They are detailed in Table I.
Table1: Correlation coefficients and significance with knowledge management
Variable correlated with knowledge management R Coefficient Significance
LPI – Model <strong>the</strong> Way 0.459* 0.000
LPI – Inspire a Shared Vision 0.192* 0.000
LPI – Challenge <strong>the</strong> Process 0.401* 0.000
LPI – Enable O<strong>the</strong>rs to Act 0.412* 0.000
LPI – Encourage <strong>the</strong> Heart 0.405* 0.000
Integrity 0.112* 0.000
Formality -0.023 0.001
Control -0.347 0.002
Transparency 0.228* 0.002
Sharing 0.420* 0.000
Proactiveness -0.052 0.000
Note: * Indicates significant
Based on <strong>the</strong> highly significant correlations, a regression analysis was performed looking at <strong>the</strong>
amount <strong>of</strong> variance in LPI accounted for by knowledge management behaviours. The results <strong>of</strong> that
analysis indicate that 27.5 percent <strong>of</strong> <strong>the</strong> variance <strong>of</strong> LPI leadership was accounted for by knowledge
management. A regression model looking at <strong>the</strong> impact <strong>of</strong> knowledge management on behaviour
variables indicated no significant finding for <strong>the</strong> variables, except for Integrity, Transparency and
Sharing.
Table 2: Correlation coefficients and significance with knowledge management
Variable correlated
with knowledge
management
Integrity Formality Control Transparency Sharing Proactiveness
LPI – Model <strong>the</strong> Way 0.459* -0.097* 0.113* 0.187* 0.199* -0.023
LPI – Inspire a
Shared Vision
0.192* 0.110* -0.108 0.401* 0.412* 0.112*
LPI – Challenge <strong>the</strong>
Process
0.345* -0.022 -0.090* 0.366* 0.142* -0.109
LPI – Enable O<strong>the</strong>rs
to Act
0.365* -0.034 -0.102* 0.357* 0.326* -0.082
LPI – Encourage <strong>the</strong>
Heart
0.405* 0.046 0.004 0.406* 0.372* -0.001
Note: * Indicates significance at 0.01 level
Most would agree that trust in an organisation truly plays a significant role in <strong>the</strong> ability to exert
influence, and hence, lead o<strong>the</strong>rs. With this, a simple regression analysis <strong>of</strong> <strong>the</strong> effect <strong>of</strong> <strong>the</strong> attitude
<strong>of</strong> <strong>the</strong> employees towards KM usage as seen through leadership practices with regards to <strong>the</strong> position
on knowledge management yielded <strong>the</strong> same significant findings. This regression model indicated
that 3.6 percent <strong>of</strong> <strong>the</strong> variance <strong>of</strong> knowledge management could be accounted for by attitude
towards usage.
5. Discussion
The results <strong>of</strong> this study provide ample support for <strong>the</strong> notion that knowledge management and
leadership, as both a <strong>the</strong>oretical construct and as a leadership attribute are strongly related to each
o<strong>the</strong>r. Among <strong>the</strong> most specific findings in this research study is <strong>the</strong> strong relationship between
leadership practices and knowledge management implementation behaviours. The regression
analysis provided strong evidence <strong>of</strong> <strong>the</strong> causal nature <strong>of</strong> <strong>the</strong> link between <strong>the</strong> two variables. The
strong R squared value associated with <strong>the</strong> relationship suggests that a substantial amount <strong>of</strong>
variance in leadership can be accounted for by knowledge management skills.
It is interesting to note that <strong>the</strong> first practice ‘Model <strong>the</strong> Way’ augurs highly amongst <strong>the</strong> leadership
behaviour traits whereby in knowledge management implementation, leaders who establish principles
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concerning <strong>the</strong> way people (constituents, peers, colleagues, and customers alike) should implement
KM, should <strong>the</strong>mselves demonstrate <strong>the</strong> application <strong>of</strong> <strong>the</strong>se behaviour. It is important to create
standards <strong>of</strong> excellence and <strong>the</strong>n set an example for o<strong>the</strong>rs to follow. As <strong>the</strong> prospect <strong>of</strong> complex
change especially in <strong>the</strong> likes <strong>of</strong> KM adoption can overwhelm people and stifle action, leaders should
be able to set interim goals so that people can achieve small wins as <strong>the</strong>y work toward larger
objectives. They should unravel bureaucracy when it impedes action, put up signposts when people
are unsure <strong>of</strong> where to go or how to get <strong>the</strong>re and <strong>the</strong>y create opportunities for victory.
Kouzes and Posner (2007) state that when leaders ‘Model <strong>the</strong> Way’, <strong>the</strong>y do not ask anyone to do
anything which <strong>the</strong>se leaders are unwilling to do first. With this, for <strong>the</strong> successful implementation <strong>of</strong>
KM behaviour, it can be noted that leaders need to walk <strong>the</strong> talk to demonstrate <strong>the</strong>ir own acceptance
<strong>of</strong> KM practices. This principle is beneficial as it helps <strong>the</strong> leaders to be straightforward and
communicate to <strong>the</strong> people as to what <strong>the</strong>y aim for and what <strong>the</strong>y believe. It also helps in creating
transparency and defines <strong>the</strong> roles <strong>of</strong> <strong>the</strong> employees working under a leader. The leaders should
stand up for <strong>the</strong>ir belief and also guide <strong>the</strong> way for <strong>the</strong> people to follow <strong>the</strong> values set. Shared values
are <strong>the</strong> foundations for building productive and genuine working relationships.
It should be noted that employees demand that leaders should do more than just deliver inspirational
and rousing speeches about knowledge management. The leaders must actually participate in <strong>the</strong>
doing <strong>of</strong> what <strong>the</strong>y ask <strong>the</strong>ir employees to do. Leading by example states that leaders provide
evidence that <strong>the</strong>y are deeply and personally committed to <strong>the</strong> vision <strong>the</strong>y champion. With this, it is
indeed evident that employees pay more attention to <strong>the</strong> values <strong>the</strong>ir leaders actually use than to
those <strong>the</strong> leaders say <strong>the</strong>y believe in.
The impact <strong>of</strong> knowledge management with regards to leadership behaviour and <strong>the</strong> attitude towards
using KM among employees was fur<strong>the</strong>r explored. It can be noted that integrity, transparency and
sharing augur highly in <strong>the</strong> leadership behaviour <strong>of</strong> <strong>the</strong> employees. In this regards, it can be inferred
that <strong>the</strong> employees demand a high level <strong>of</strong> trust in <strong>the</strong> organisation and amongst <strong>the</strong>ir peers and
leaders to be able to successfully implement KM behaviours. This fur<strong>the</strong>r indicates that knowledge is
fluid, shaped by collaboration and discussion among employees and leaders whereby knowledge and
trust are interwoven.
6. Conclusion
The findings <strong>of</strong> this study provide evidence <strong>of</strong> a growing interest in <strong>the</strong> relationship between <strong>the</strong>
practical nature <strong>of</strong> leadership whereby it is highly important to demonstrate what is being preached
and <strong>the</strong> trust attribute <strong>of</strong> <strong>the</strong> employees in <strong>the</strong> modern workplace. In continuity with prior research,
<strong>the</strong>se findings show yet ano<strong>the</strong>r demonstrated link between person-centered leadership and some
technical construct, in this case, knowledge management.
Recently, many researchers have acknowledged <strong>the</strong> importance <strong>of</strong> leadership in knowledge
management. However, relatively little attention has been paid to <strong>the</strong> detailed processes by which
leadership style would exert an impact on knowledge-management activities. With growing evidence
<strong>of</strong> KM being <strong>the</strong> most important source <strong>of</strong> competitive advantage in organizations, hence, <strong>the</strong> practice
<strong>of</strong> knowledge management requires continuous support from leaders, ensuring its value and results
are captured in <strong>the</strong> minds <strong>of</strong> employees. With <strong>the</strong> propagation <strong>of</strong> knowledge sharing as an important
corporate strategy to beat competitors, it becomes highly important for <strong>the</strong> leaders to indeed model
<strong>the</strong> way.
This study was conducted within <strong>the</strong> various business units <strong>of</strong> an organisation. Fur<strong>the</strong>r research could
be done across multiple organisations within an industry, namely <strong>the</strong> hospitality, banking or
educational industry to study <strong>the</strong> attitude <strong>of</strong> knowledge management usage among leaders from
different industries to see if <strong>the</strong> industry involved in shapes <strong>the</strong> response <strong>of</strong> leaders or personality
traits take precedence regardless <strong>of</strong> industry. This research focused on <strong>the</strong> leaders’ attitude towards
KM usage. The study can be fur<strong>the</strong>r extended by studying behavioural intentions and subsequent
actual KM usage based on <strong>the</strong>ir attitude.
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Why are Workers Resistant to Sharing Knowledge?
Vijayeta Srivastava
La Trobe University, Melbourne, Australia
s.vijayeta@gmail.com
Abstract: With ever increasing competitiveness, expanding volatility and seamless fluidity <strong>of</strong> <strong>the</strong> businesses in
<strong>the</strong> 21 st century this paper explores and focuses on various multi-dimensional inherent factors <strong>of</strong> dynamics <strong>of</strong> an
organization and an individual’s working, to understand <strong>the</strong> resistance show by people towards knowledge
sharing and <strong>the</strong> plausible solutions to overcome it in <strong>the</strong> near future. Analysis <strong>of</strong> <strong>the</strong> organizational factors that
result in resistance among workers towards sharing <strong>of</strong> knowledge is done. A comprehensive study is undertaken
to explore and analyse <strong>the</strong> present literature in identifying <strong>the</strong> underlying principles and intrinsic characteristics
which restrain knowledge workers to share knowledge. Fur<strong>the</strong>rmore <strong>the</strong> paper goes on to uncover <strong>the</strong> possible
steps that could be adopted by management to surmount <strong>the</strong> resistance shown by knowledge workers based
upon deep rooted <strong>the</strong>oretical findings and inductive reasoning. The paper explores various facets <strong>of</strong> knowledge
management and particularly focuses on factors leading to increased resistance in sharing knowledge from an
individual’s viewpoint such as ownership <strong>of</strong> knowledge (within organizational context) and ideology (within
educational and cultural contexts). The research indicates two key observations. Firstly, from an individual’s
perspective within an organizational context where reward, recognition and incentive foster and propel knowledge
sharing. Secondly, focusing on educational and cultural context from an individual’s perspective, outside to <strong>the</strong>
organizational context, where research indicates that maximum benefits from knowledge sharing can be acquired
by instigating clarity and behavioural changes towards knowledge sharing. The implication suggested provides
value from managerial point <strong>of</strong> view in tackling <strong>the</strong> resistance towards sharing knowledge. Fur<strong>the</strong>rmore <strong>the</strong> paper
leads us to <strong>the</strong> possible solutions that could help in overcoming <strong>the</strong> resistance and encourage in knowledge
sharing. The paper provides a new perspective to <strong>the</strong> researchers, practioners and students on <strong>the</strong> extrinsic and
innate reasons why a worker is resistant to share knowledge. Fur<strong>the</strong>r, <strong>the</strong> paper also provides most relevant and
practical solutions to reduce <strong>the</strong> barriers for sharing knowledge.
Keywords knowledge management, knowledge sharing, obstacles to knowledge sharing, resistance in
knowledge sharing
1. Introduction
Progressive evolution <strong>of</strong> global business landscape to one being highly unstable and dynamic has
drawn organizations towards proper management <strong>of</strong> knowledge to attain sustainable competitive
edge over <strong>the</strong> o<strong>the</strong>rs and deal with <strong>the</strong> ever-changing market demands. An urgent need to share <strong>the</strong>
expertise and knowledge possessed by people to help innovate, expand processing and sharing <strong>of</strong>
organizational knowledge has been experienced (Argote and Ingram, 2000). However Davenport
(1997) suggests that knowledge sharing is an unnatural process. Therefore ra<strong>the</strong>r than commanding
knowledge sharing, incorporating it in business processes will help foster and stimulate knowledge
sharing process within <strong>the</strong> organization in <strong>the</strong> long run. The paper aims to identify <strong>the</strong> reasons that
workers are hesitant to share knowledge and to analyse solutions to overcome this resistance.
Fur<strong>the</strong>r this paper proposes <strong>the</strong> determinants by analysing factors both inside and outside <strong>the</strong>
organisational context and justifies <strong>the</strong> different ways to encourage people to share knowledge. Here
knowledge sharing is being dealt as a social interaction which involves humans as social animal
(Gee, 2002).
The paper focuses on providing a holistic view on obstacles to knowledge sharing among employees
within <strong>the</strong> organization and points to <strong>the</strong> difference in attitudes shown towards <strong>the</strong> knowledge
exchange on <strong>the</strong> basis <strong>of</strong> <strong>the</strong>ir educational, cultural, moral and psychological background. The paper
identifies and justifies <strong>the</strong> concerns and rationales <strong>of</strong> underlying knowledge sharing behaviour <strong>of</strong>
workers. In <strong>the</strong> following sections <strong>the</strong>matic analysis on past research discloses potential reasons for
resistance to knowledge sharing and <strong>the</strong> essential steps that are needed to be taken in order to
overcome this resistance. Fur<strong>the</strong>r <strong>the</strong> paper provides <strong>the</strong> implications and a justifiable explanation <strong>of</strong>
how <strong>the</strong> encouragement in amending <strong>the</strong> behaviour and understanding to share knowledge can bring
about improvement in all <strong>the</strong> organizational processes and activities and also lead to a pr<strong>of</strong>it for <strong>the</strong>
organization. Using an inductive methodology based on text analysis we disclose <strong>the</strong> reasons and
explanations for limiting or not sharing knowledge in <strong>the</strong> organization. Gee (2002) suggests that
sharing <strong>of</strong> knowledge is an individualistic behaviour. Resistance shown towards knowledge sharing
cannot be grouped for all <strong>the</strong> individuals and a single reason cannot be determined. The paper
develops two strategies for dealing with <strong>the</strong>se categories and concludes by providing different ways in
which this positive attitude for knowledge sharing behaviour can be inculcated. Although this paper
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Vijayeta Srivastava
provides analysis <strong>of</strong> all <strong>the</strong> different factors we call for detailed and longitudinal empirical research to
verify <strong>the</strong> need to separate knowledge workers on <strong>the</strong> basis <strong>of</strong> <strong>the</strong>ir personal and organizational
context to definitively identify <strong>the</strong> individual reasons for resistance in knowledge sharing (Ipe, 2003).
The key to organisational success can be attributed to effective and efficient knowledge management
along with application and reuse <strong>of</strong> <strong>the</strong> knowledge throughout organisation (Kearns and Lederer,
2003). Knowledge has become more complex as a result <strong>of</strong> advancements in <strong>the</strong> technology,
business and affiliated disciplines. Knowledge is <strong>the</strong> key resource for obtaining competitive advantage
and knowledge management is <strong>the</strong> key to sustaining this advantage (Wit and Huysman, 1998).
Knowledge sharing is critical for learning, growth and <strong>the</strong> development <strong>of</strong> <strong>the</strong> employees and <strong>the</strong>
organization. Knowledge sharing enables exchange <strong>of</strong> process know-how, lessons learnt and
experiences (Ipe, 2003). Using knowledge as prime resource is <strong>the</strong> key to fulfil organisational goals
and objectives. Sharing knowledge transforms knowledge into actionable process. Utilisation,
exchange and application <strong>of</strong> knowledge along with brain storming helps in product and service
innovation and maximise pr<strong>of</strong>its and capitalise market opportunity.
2. Knowledge sharing
The knowledge base <strong>the</strong>ory <strong>of</strong> firm acknowledges knowledge as a key resource and a critical success
factor for organizations. Knowledge is basically regarded as highly valuable and a critical resource for
success (Grant 1996; Spender, 1996; Hendriks, 1999). Key to effectively leverage organizational
knowledge resources is through effective dissemination and sharing. The knowledge-sharing concept
is a notion which can be recognized as collective transmission <strong>of</strong> thought; idea or experience from
one end <strong>of</strong> a spectrum through a medium to <strong>the</strong> o<strong>the</strong>r end where thought, idea is decoded to
understand <strong>the</strong> meaning and learn from <strong>the</strong> experience (Davenport and Prusak, 1998). Knowledge
sharing can also be defined as an action or an activity performed, having incomparable benefits (Ford
and Staples, 2008; Lubit, 2001). Organizations now operate in a very competitive environment and
have to continuously evolve to be on <strong>the</strong> top. Knowledge sharing encompasses <strong>the</strong> organization and
along with its partners and suppliers (Cummins, 2003). Knowledge sharing can be enhanced by
communication and interactions including mono access and retrieval (Cummins, 2003). Knowledge
sharing acts as a catalyst in improving processes efficiencies and capitalizing on market
opportunities. The paper also identifies key rationales that act as barriers for <strong>the</strong> employees to share
<strong>the</strong>ir knowledge and endow <strong>the</strong> organization with <strong>the</strong> strategic aptitude (Alavi and Leidner, 1999).
Research indicates incentive and recognition act as catalysts for knowledge sharing process thus
organisations must adopt recognition and incentive as one <strong>of</strong> <strong>the</strong> mechanism to facilitate knowledge
sharing.
In order to analyse <strong>the</strong> challenges organizations face in dealing with knowledge sharing, we firstly
decide <strong>the</strong> boundaries and assumptions on what data, information and knowledge mean and create a
clear consensus about <strong>the</strong> terms. Here data can be viewed as a raw set <strong>of</strong> facts which can be
transformed into information by concentrating, contextualizing and characterizing into relevant details.
Knowledge is <strong>the</strong> actionable multifaceted information. Knowledge can be applied with a set <strong>of</strong> rules
and experiences, to create meaning (Davenport and Prusak, 1998; Long and Fahey, 2000). It is
something that can be acquired, shared and applied. Knowledge is <strong>the</strong> intellect, it’s <strong>the</strong> justified
beliefs about relationship among concepts, judgment, know how, experience, values that gives power
to individuals and organizations to act intelligently and thoughtfully (Wiig, 1997). Knowledge is
contextual, unique in nature; it is embedded in individuals, processes and routines. Knowledge can be
classified into two types, explicit and tacit knowledge: explicit knowledge can be systematically stored
and transmitted through to individuals in an organized and timely manner, whereas tacit knowledge
resides in <strong>the</strong> mind <strong>of</strong> <strong>the</strong> workers (Nonaka and Takeuchi 1995). Fur<strong>the</strong>r, tacit knowledge is collective
representation <strong>of</strong> “know-how” and “cognitive” abilities (Lubit, 2001). Knowledge is accumulated over a
period <strong>of</strong> time as experience and does not deteriorate; it always increases with continuous use
(Dalkir, 2005). Knowledge as defined by Davenport and Prusak (1998, pp 3-6) ‘Knowledge is a fluid
mix <strong>of</strong> framed experience, values, contextual information, and expert insight that provides a
framework for evaluating and incorporating new experiences and information. It originates and is
applied in <strong>the</strong> minds <strong>of</strong> <strong>the</strong> knower’s. In organizations, it <strong>of</strong>ten becomes embedded not only in
documents or repositories but also in organizational routines, processes, practices and norms’
(Davenport and Prusak, 1998). Kalkan (2008) suggests that organisations need to develop a working
definition <strong>of</strong> knowledge so as not only to manage it but obtain benefits from using knowledge.
Traditional factors <strong>of</strong> production have given way to knowledge as <strong>the</strong> core <strong>of</strong> business growth
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Vijayeta Srivastava
(Nonaka and Takeuchi, 1995). The present era marked by use <strong>of</strong> knowledge as key resource can be
termed as knowledge era (Marion and Uhl-Bien, 2007). Organizations are relying on knowledge as
<strong>the</strong>ir primary resource. Knowledge is being harnessed as a tool for innovation and to develop best
practices (Davenport, Long and Beers, 1998; Nonaka and Takeuchi, 1995). Therefore, <strong>the</strong>
management <strong>of</strong> knowledge is a key to effective completion with o<strong>the</strong>r businesses at product and
service levels. As knowledge within organisation became critical, it gets more important to manage
and share knowledge. Research indicates that knowledge sharing acts on <strong>the</strong> tangible and intangible
assets <strong>of</strong> <strong>the</strong> organization and works towards in creating sustainable advantage over competitors
(Miller and Shamsie, 1996). We define knowledge sharing as <strong>the</strong> exchange <strong>of</strong> knowhow, expertise,
judgement, and lessons learnt between <strong>the</strong> employees through a formal or informal network (Spek
and Hoog, 1995). Knowledge sharing not only facilitates exchange <strong>of</strong> knowledge among interested
parties but also adds value and creates understanding <strong>of</strong> best practices and lessons learnt (Wit and
Huysman, 1998).
Advancement in technology has provided tools and applications which help in effective and efficient
management <strong>of</strong> knowledge. These are <strong>of</strong>ten termed as Knowledge Management Systems. Tools and
techniques are required to facilitate knowledge sharing within <strong>the</strong> organization. It is important to point
out that <strong>the</strong>se tools support knowledge sharing ra<strong>the</strong>r than driving it (Alavi and Leidner, 1999).
Employees (people) are <strong>the</strong> main drivers <strong>of</strong> knowledge sharing in an organization, supported by
processes and technology. Various techniques are also now available which help in improvising
knowledge sharing (Wiig, Hoog and Spek, 1995).
3. Barriers to knowledge sharing
There are internal and external factors in an organization which increase <strong>the</strong> resistance towards
knowledge sharing (Reige, 2005). These barriers to knowledge sharing can be looked from both an
individual’s (Long and Fahey, 2000) and organization’s perspective (Nonaka, 1994). It is worth
mentioning, that <strong>the</strong>se factors prevent employees from sharing knowledge with co-workers and
superiors. Resistance to knowledge sharing <strong>of</strong>ten used as euphemism for stating <strong>the</strong> barriers to
knowledge sharing (Riege, 2005).
The sense <strong>of</strong> losing control and authority over knowledge by sharing is <strong>the</strong> most prevalent barrier to
knowledge sharing among workers (Pfeffer and Sutton, 1999). This fear <strong>of</strong> losing control and authority
hinders knowledge sharing and is detrimental to growth and success. This is fur<strong>the</strong>r aggravated as
knowledge has become <strong>the</strong> critical success factor; it is not merely a resource but a valuable asset.
Thus employees fear that by sharing <strong>the</strong>y are giving absolute rights to <strong>the</strong>ir knowledge and cannot
obtain monetary benefits. The fear <strong>of</strong> losing control and putting knowledge into <strong>the</strong> public domain
hinders knowledge sharing (Dalkir, 2005). The employees feel that knowledge is lost when <strong>the</strong>y are
not acknowledged and given credit for sharing (Lindsey, 2011). Riege (2005) observes that <strong>the</strong> lack <strong>of</strong>
formal knowledge sharing processes and limited time allocation to knowledge sharing hinders its
success. Organizational structure also plays a critical role in knowledge sharing (Lubit, 2001). In
hierarchical organizations more resistance towards knowledge sharing is observed when compared to
flattened organisations attributed to <strong>the</strong> organisational culture. Reige (2005) suggests that this can be
attributed to <strong>the</strong> formal and rigid channels <strong>of</strong> communication, limited personal contact and effort
required in effective knowledge sharing. Many employees relate knowledge with <strong>the</strong>ir ability to
perform in <strong>the</strong>ir job, thus knowledge hoarding gives <strong>the</strong>m a sense <strong>of</strong> job security (Husted and
Michailova, 2002). This results in increased barriers to knowledge sharing.
Within hierarchical organisational structures employees fear that sharing knowledge with <strong>the</strong>ir
superiors may impact <strong>the</strong>ir job security (Lin, H-F., 2007). Formal behaviour, limited interaction and
working in silos increase resistance to knowledge sharing. Knowledge sharing needs to be embedded
in daily routine. Allocation <strong>of</strong> time for such purposes not only helps in building trust, confidence but
also improves credibility <strong>of</strong> <strong>the</strong> employees (Bock et. al, 2010). In addition to <strong>the</strong>se barriers an
individual’s age, gender, culture, beliefs, background (social and cultural) also impact knowledge
sharing (Riege, 2005; Szulanski, 1996 and Zyngier, 2002). Level <strong>of</strong> education and skills to
communicate also play a vital role. Studies have shown that, communication in all forms play a very
important role in knowledge sharing (Meyer, 2002; Davenport and Prusak, 1998). In addition to
individual concerns, organisational culture is biggest <strong>of</strong> all <strong>the</strong> obstacles faced; closely followed by
understanding about <strong>the</strong> knowledge – its importance and value (Agrawal and Zyngier, 2009).
Resistance to change also plays a vital role in promoting or delaying knowledge sharing. To have
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Vijayeta Srivastava
effective knowledge sharing organisations needs to effectively plan for <strong>the</strong> same (McDermott and
O’Dell, 2001).
Various examples throughout history <strong>of</strong> knowledge management depict <strong>the</strong> importance and
impact <strong>of</strong> cultural factors on knowledge sharing and resistance to knowledge management. These
cultural factors influence communication and shape <strong>the</strong> business environment made up <strong>of</strong>
various people belonging to different cultures and geographies. Evidence suggests that
individual’s rely more on o<strong>the</strong>r individuals with whom <strong>the</strong>y share a relationship not entirely based upon
exchange <strong>of</strong> services. When <strong>the</strong> underlying connection or relationship is based upon a logical reason,
trust, commitment, love, a mutual inspiration, admiration and respect, community and background,
between each o<strong>the</strong>r <strong>the</strong>n seamless and effective knowledge sharing is observed with least amount <strong>of</strong>
resistance to it. The emotional and spiritual connection in-between people <strong>of</strong>ten motivates <strong>the</strong>m
towards sharing personal experience and knowledge which most people guard very closely (Bock et.
al, 2010).
4. Methodology
Various journal articles were selected via blind search on underlying <strong>the</strong>mes related to knowledge,
knowledge management, knowledge sharing, barriers to knowledge sharing, knowledge management
issues and obstacles, organizational culture, knowledge management and performance. It was
followed by categorization <strong>of</strong> articles into various <strong>the</strong>mes followed by analysis <strong>of</strong> text and <strong>the</strong>matic
analysis. After careful study <strong>the</strong> hypo<strong>the</strong>sis “Does <strong>the</strong> encouragement for change in behaviour <strong>of</strong>
employees in <strong>the</strong> organization along with introduction <strong>of</strong> incentive and recognition help in minimizing
<strong>the</strong> challenges faced in knowledge sharing” was defined. This research paper analyses by identifying
<strong>the</strong> challenges to knowledge sharing from an individual perspective within and external to
organization.
Analysis <strong>of</strong> text helped in understanding and identifying resistance <strong>the</strong> problem. Fur<strong>the</strong>r articles were
categorised on <strong>the</strong> basis <strong>of</strong> organizational, people and technological perspective. During analysis, <strong>the</strong>
plausible reasons <strong>of</strong> resistance to knowledge sharing were grouped into two categories, keeping
employees inside and outside <strong>of</strong> <strong>the</strong> organizational context. It was <strong>the</strong>n deducted that rewards and
recognition facilitate and reduce resistance to knowledge sharing in <strong>the</strong> short term within <strong>the</strong>
organizational context. From an individual’s perspective, his/her skills, work practises; trust with o<strong>the</strong>r
employees and social beliefs plays a critical role in determining resistance to knowledge sharing
(Fernie, et. al, 2003). It can be said that with increasing levels <strong>of</strong> trust among employees can reduce
<strong>the</strong> resistance shown towards knowledge sharing (Long and Fahey, 2000).
Research indicates that incentives, recognition, reward and remuneration motivate employees
towards knowledge management and knowledge sharing, this indirectly boost’s <strong>the</strong> employee’s and
organisations performance (Riege, 2005). Although some author’s argue that it is only effective in
short run (McDermott, 1999 and O’Dell and Grayson, 1998; Kohn, 1993). Providing incentives,
incorporating contribution to knowledge sharing as part <strong>of</strong> employee performance review and making
it one <strong>of</strong> <strong>the</strong> key performance indicators can instigate knowledge sharing in a positive manner.
Companies like Hewlett Packard, KPMG, Ernst and Young and o<strong>the</strong>rs stipulate that by adding
contribution to knowledge management and sharing to <strong>the</strong> yearly grading <strong>of</strong> <strong>the</strong> employees will have
positive effect on <strong>the</strong> knowledge program (Master, 1999). Introduction <strong>of</strong> rewards and recognition
motivates <strong>the</strong> employees to contribute more. It is also critical to understand <strong>the</strong> impact <strong>of</strong> education,
culture and behaviour o knowledge sharing. It is necessary to bring about slow and steady change in
<strong>the</strong> corporate behaviour and help <strong>the</strong> organization in embracing a knowledge sharing culture
(Michailova and Husted, 2003).
First step <strong>of</strong> <strong>the</strong> study involved exploration <strong>of</strong> knowledge management, its application in <strong>the</strong> current
business environment and study <strong>of</strong> factors driving knowledge management across enterprises. It was
found that in spite <strong>of</strong> being in existence knowledge management is still in its early stages <strong>of</strong> adoption.
Several supporting and opposing factors were identified during <strong>the</strong> initial part <strong>of</strong> <strong>the</strong> study. In depth
study was <strong>the</strong>n performed to identify barriers to knowledge management which fur<strong>the</strong>r led to
identifying challenges in knowledge sharing. It was found that challenges to knowledge sharing can
be interpreted from organizational, people and technological perspective. Due to limited scope <strong>of</strong> <strong>the</strong>
research only challenges and resistance from people’s perspective were analysed. These factors
were analysed by keeping individual inside and outside <strong>the</strong> organizational context respectively.
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Vijayeta Srivastava
Figure 1: The above image graphically represents <strong>the</strong> approach taken to analyse <strong>the</strong> research
question, and showcases <strong>the</strong> relationship and patterns identified
Using <strong>the</strong>matic analysis it was identified that introducing rewards and recognition and acknowledging
employee for contribution will enhance knowledge sharing. Established formal knowledge sharing
procedures promotes knowledge sharing. On <strong>the</strong> o<strong>the</strong>r hand looking at an individual outside <strong>the</strong>
organizational context <strong>the</strong>ir education, social belief and understanding plays a critical role in
determining impact on knowledge sharing. The key is to employ individuals conducive to collaborative
working by analysing individuals on cultural fit, collaborative working and fit within a knowledge
sharing environment. Knowledge management practioners can adopt some <strong>of</strong> <strong>the</strong>se solutions to
successfully facilitate knowledge sharing.
Knowledge Management Davenport and Prusak, 1998; Davenport et. Al, 1998;
Degler and Battle, 2000; Dalkir, 2005; Fernie et. Al,
Barriers/ Challenges/ Obstacles to Knowledge
Management
Barriers/ Challenges/ Obstacles to Knowledge
Sharing
i. Organizational Perspective
2003
Alavi and Leidner, 1999; Reige, 2005; Zyngier, 2002;
Husted and Michailova, 2002; Lubit, 2001; Gallivan
et. Al, 2003; Fernie, 2003
Husted and Michailova, 2002; Lubit, 2001; Degler
and Battle, 2000; Zyngier, 2002
Argote and Ingram, 2000; Ipe, 2003; Gallivan et. Al,
2003
Fishbein and Ajzen, 1975; Lin, 2007
ii. People Perspective
iii. Technological Perspective McDermott, 1999; Reige, 2005
Analysing Barriers to Knowledge Sharing from Fishbein and Ajzen, 1975; Lin, 2007; Husted and
individual’s perspective
Michailova, 2002; Lubit, 2001; Degler and Battle,
2000; Zyngier, 2002
Solution to reducing resistance to Knowledge
Husted and Michailova, 2002; Kohn, 1993;
Sharing
Davenport et. Al, 1998; Fishbein and Ajzen, 1975;
Lin, 2007
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5. Discussion
Vijayeta Srivastava
Various reasons for resistance to knowledge sharing in <strong>the</strong> organizations have been documented in
research. A number <strong>of</strong> solutions and initiatives have been proposed to overcome this resistance to
knowledge sharing. Some scholars suggest <strong>the</strong> root cause <strong>of</strong> problem lies in <strong>the</strong> organizational
culture whereas some authors suggest problem within an individual characteristics. Top management
support and developing environment conducive to knowledge sharing also plays an important role.
Knowledge management becomes an explicit part and routine <strong>of</strong> <strong>the</strong> organization with its induction in
<strong>the</strong> organizational culture. By incorporating knowledge management procedures and policies in <strong>the</strong>
organizational culture at a micro-level, <strong>the</strong> resistance towards knowledge sharing can be reduced.
Research indicates that <strong>the</strong> expertise <strong>of</strong> an employee increases multiple times with increased
interaction among his/her colleagues and superiors. The more a person shares, <strong>the</strong> more ideas and
knowledge is gained. The more a person brain storms <strong>the</strong> more his repository <strong>of</strong> knowledge and
horizon to understand and perceive thing increases. It can be said that knowledge sharing not only
increases an individual’s ability to perform and recognize tasks better but also helps individuals to
better understand and absorb knowledge repositories. This also helps in fulfilling required roles and
responsibilities. Limited research is done to comprehend impact <strong>of</strong> individual’s background on
knowledge sharing. This may <strong>of</strong>fer <strong>the</strong> opportunity to identify different factors which impact <strong>the</strong> way an
employee perceives <strong>the</strong> meaning and importance <strong>of</strong> creating, identifying, managing, codifying and
sharing knowledge (Dalkir, 2005). With <strong>the</strong> understanding <strong>of</strong> <strong>the</strong> individual employee’s characteristics,
efforts must be made to develop a systematic plan to encourage <strong>the</strong> development and utilization <strong>of</strong>
knowledge repositories. Both intrinsic and extrinsic factors alter <strong>the</strong> behaviour <strong>of</strong> an individual
employee. These factors also define how an individual deals with <strong>the</strong> responsibilities that come with it.
Strategies adopted to promote and motivate employees to take up knowledge sharing include
introduction <strong>of</strong> rewards and recognition, embedding knowledge sharing in processes, procedures and
performance review. By embedding knowledge sharing in day to day activities organisations can reap
big benefits. Organisations needs to commit to establishing formal knowledge sharing processes,
have top management support to <strong>the</strong> cause, provide clear and thorough understanding <strong>of</strong> knowledge
and knowledge management to all parties will help in reducing resistance to knowledge sharing. It is
also evident from Hendricks knowledge sharing model that it is necessary to dissolve temporal and
spatial barriers between knowledge owners and knowledge re-constructors to initiate knowledge
sharing (Hendriks, 1999). From an individual perspective external to organisation it can be said that
beliefs and attitude develop <strong>the</strong>ir contextual framework. This substantially influences <strong>the</strong>ir notions to
react, interact and respond to issues like sharing knowledge and understanding <strong>the</strong> benefits and
advantages <strong>of</strong> it (Fishbein, M. and Ajzen, I., 1975). Values to practice knowledge management from
<strong>the</strong> start should be developed as a norm and should be manifested in <strong>the</strong> organizational culture.
Aligning <strong>the</strong> employee’s thought process along with organizational goals should be contextualized
and boosted to lower down <strong>the</strong> barriers which employees show towards <strong>the</strong> discussion or interaction
with <strong>the</strong> senior management.
Different organisations have adopted different approaches towards reducing barriers to knowledge
sharing and simultaneously improve knowledge sharing among workers and employees. From
informal approaches <strong>of</strong> continually making knowledge management a part <strong>of</strong> day to day
business activities to formally incorporating knowledge sharing as one <strong>of</strong> key performance indicators
in employee performance review, organisations have attained varying levels <strong>of</strong> success with each <strong>of</strong>
<strong>the</strong>se approaches. Research indicate that organizations are now more actively taking initiative than
before in motivating employees to share knowledge. Particularly in case <strong>of</strong> pr<strong>of</strong>essional service firms
and IT based firms. For example: Hewlett-Packard Consulting provides ‘Knowledge Master Awards’ to
employees who actively share knowledge and make significant contributions towards knowledge
sharing and knowledge management and <strong>the</strong>ir participation is measurable towards <strong>the</strong> company
success. On <strong>the</strong> o<strong>the</strong>r hand IBM rewards <strong>the</strong> employees for knowledge management and knowledge
sharing, <strong>the</strong> reward in <strong>the</strong> form <strong>of</strong> a bonus or paid holiday/trip is shared between <strong>the</strong> knowledge
originator and <strong>the</strong> end-user <strong>of</strong> <strong>the</strong> knowledge. Contrary to <strong>the</strong>se two approaches <strong>of</strong> giving formal
recognition to <strong>the</strong> contributors and rewarding with monetary benefits, At McKinsey a Rapid Response
Team comes into actions whenever a problem cannot be solved by problem owners. This team
consists <strong>of</strong> skilled people <strong>of</strong>ten from cross functional teams and different departments, who come
toge<strong>the</strong>r with <strong>the</strong> aim <strong>of</strong> reaching to a solution in less than 24hrs. This way people involved take pride
solving <strong>the</strong> problem, improving <strong>the</strong> process and creating, distributing and sharing knowledge (Morey,
D. et. al, 2002).
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6. Conclusion
Vijayeta Srivastava
Barriers to knowledge sharing can be analysed from multi-dimensional perspective. It is worthwhile to
note that resistance to knowledge sharing has been analysed from organizational, people and
technological perspective. The study undertaken looks at <strong>the</strong> factors which increase resistance
towards knowledge sharing among workers, and throws light on plausible solutions. The study
focuses on obstacles faced in knowledge sharing from organizational and individual perspective
(employees and knowledge workers). The researchers analyse <strong>the</strong> behavioural characteristics <strong>of</strong> <strong>the</strong>
workers to identify and analyse root cause towards resistance to knowledge sharing. Here
organization’s intrinsic and extrinsic characteristics and employee’s behavioural and intrinsic
characteristics were analysed. A comprehensive study and analysis by drawing attention on factors
and principles which prohibit <strong>the</strong> human mind from going forward and sharing <strong>the</strong> experience and
knowledge was done. The need to clearly understand <strong>the</strong> intrinsic and extrinsic behaviour <strong>of</strong> <strong>the</strong>
organization and its employees and understanding <strong>the</strong> rationale behind such behaviour is critical to
understand reason behind resistance to knowledge sharing. Such thorough and deep understanding
will not only result in identifying factors <strong>of</strong> resistance to knowledge sharing but also will help
organisations and knowledge management practitioners to identify and propose solutions and means
to reduce resistance to knowledge sharing. The key message here is to not force <strong>the</strong> knowledge
sharing process ra<strong>the</strong>r to create opportunities for knowledge sharing and acknowledging employee
contribution. Customised employee specific plan <strong>of</strong> action is required to cultivate knowledge sharing
in that employee. This can be built by analysing employee performance and behavioural assessment.
However, it is unlikely to find a universal solution to <strong>the</strong> problem <strong>of</strong> resistance to knowledge sharing
due it varied complex nature. Analysing <strong>the</strong> data suggests that people <strong>of</strong>ten resist to share knowledge
as to <strong>the</strong>m it is <strong>the</strong> key source <strong>of</strong> power, <strong>the</strong>y have worked hard to earn it, and quite importantly <strong>the</strong>y
don’t trust <strong>the</strong> o<strong>the</strong>rs when sharing knowledge. The lack <strong>of</strong> trust among workers to share knowledge
is deep rooted because <strong>of</strong>ten more times <strong>the</strong>y lose control, authority and credit for that knowledge.
The reasons uncovered cannot be classified into one category, thus it needs a bouquet <strong>of</strong> solutions to
tackle this issue. Analysing <strong>the</strong>se issues from an individual’s perspective, internal and external to
organisational context assists in classifying <strong>the</strong>se concerns and identifying suitable suggestions.
Similarly efforts and initiative undertaken to encourage knowledge sharing can be divided into two
main contexts with <strong>the</strong> first one considering <strong>the</strong> personal factors <strong>of</strong> person and <strong>the</strong> second one being
<strong>the</strong> organizational factors. Here personal factors include <strong>the</strong> person’s up-bringing and surroundings,
his ideology and his understanding <strong>of</strong> <strong>the</strong> meaning <strong>of</strong> <strong>the</strong> word knowledge. And organizational factors
indicate <strong>the</strong> organizational culture, its perspective and <strong>the</strong> organizational history along with <strong>the</strong>
background. Although a lot <strong>of</strong> studies done until now indicate that organizational factors act as a
major influence on <strong>the</strong> behaviour show by employee towards knowledge exchange, a sufficient
number <strong>of</strong> research also state that <strong>the</strong>ir personal behaviour and attitude also contribute in <strong>the</strong>ir
understanding <strong>of</strong> <strong>the</strong> meaning <strong>of</strong> knowledge in a larger context.
Undertaking granular research including cross cultural perspectives to determine current factors that
positively influence <strong>the</strong> sharing <strong>of</strong> knowledge in organizations and those factors that cause resistance
knowledge sharing can be beneficial. To get a more accurate and up-to date understanding <strong>of</strong> <strong>the</strong>
various scenarios, test cases must be developed to see <strong>the</strong> effect <strong>of</strong> various initiatives. Surveys must
be done to closely understand <strong>the</strong> proposals and initiatives that need to be developed and designed.
These initiatives will help formulate strategies, tools and techniques that could be taken up by
organisations and management to enhance outcomes for knowledge management initiatives.
Acknowledgement
I would like to acknowledge <strong>the</strong> generous assistance provided in <strong>the</strong> writing <strong>of</strong> this paper by Dr.
Suzanne Zyngier in <strong>the</strong> Faculty <strong>of</strong> Law and Management at La Trobe
University, s.zyngier@latrobe.edu.au.
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520

Critical Success Factors <strong>of</strong> Knowledge Management in <strong>the</strong>
Malaysian Tourism Industry
Subhacini Subramaniam, Sharmila Rani Moganadas and Kalaiarasi
Sonaimuthu Anbananthan
Multimedia University, Melaka, Malaysia
subhacini@mmu.edu.my
sharmila.rani@mmu.edu.my
kalaiarasi@mmu.edu.my
Abstract: Knowledge management is an important emerging field <strong>of</strong> science that holds great potential for
enhancing <strong>the</strong> value <strong>of</strong> organizations, industries and even whole economies. It can deliver competitive advantage
such as greater competencies and synergy, more balanced decisions and less errors, more creativity and
innovation, broader collaboration and knowledge sharing, and easier links to expertise and deeper
understanding. Knowledge management has been used in most product-based companies and it has also
extended <strong>the</strong> use in service industry. Tourism sector, which is a part <strong>of</strong> service industry, has been a key factor in
<strong>the</strong> overall development <strong>of</strong> Malaysia, thus accounts for effective implementation <strong>of</strong> knowledge management.
Although, existing studies have derived <strong>the</strong> critical success factors <strong>of</strong> knowledge management from various
industries’ viewpoints, however, to date, critical success factors for implementing knowledge management in <strong>the</strong>
tourism sector have not been comprehensively determined. There are not many studies looking closely to explain
<strong>the</strong> knowledge management situation in <strong>the</strong> tourism sector while this sector is continuously growing in Malaysia.
Owing to this matter, this paper aims to bridge this gap by identifying <strong>the</strong> critical success factors <strong>of</strong> knowledge
management in Malaysian tourism sector.
Keywords: tourism, knowledge management, critical success factors
1. Introduction
Over <strong>the</strong> decades, tourism has experienced continuous growth and deepening
In Malaysia, tourism
industry continues to be <strong>the</strong> solid income earner for <strong>the</strong> country and it has a resilient global tourism
position even today after <strong>the</strong> successful launch <strong>of</strong> “Malaysia Truly Asia” brand in 1999 (Economic
Planning Unit, 2001). It is <strong>the</strong> 9th most visited country in <strong>the</strong> world and it receives RM1 billion receipts
per week from foreign visitors (Tourism Malaysia & UNWTO). The industry is already huge as <strong>of</strong> now
(RM56.5 billion in receipts in 2010) and remains healthy for <strong>the</strong> past 10 years (Figure 1).
Figure 1: Tourist receipts to Malaysia, source: Research Division, Tourism Malaysia
Knowledge management (KM) is agreed to be a concept which is constantly developing (Schehar
Bano, Kashif Ur Rehman & Muhammad Aslam Khan, 2010). A survey conducted by KPMG has
reported that many leading companies around <strong>the</strong> globe have benefited from practicing KM in <strong>the</strong>ir
organizations (as cited in Fahmi Ibrahim & Reid.V, 2009). KM initiatives by international corporations
such as SHELL, BP, HP and Johnson & Johnson have driven <strong>the</strong>m to remarkable success. It is
widely acknowledged that KM is <strong>the</strong> fundamental factor for <strong>the</strong> future development <strong>of</strong> firms and
society (Susanne, 2004). KM builds on earlier approaches <strong>of</strong> data management and information
management and adds a higher level <strong>of</strong> complexity with <strong>the</strong> inclusion <strong>of</strong> meaning, networking,
collaboration and business process improvement (AGIMO Knowledge Management, 2004).
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Subhacini Subramaniam et al.
Numerous KM scholars and experts have enlisted a wide–range <strong>of</strong> KM definitions. Definitions derived
from some <strong>of</strong> <strong>the</strong> literature include: “KM is <strong>the</strong> explicit and systematic management <strong>of</strong> vital knowledge
and its associated processes are creating, ga<strong>the</strong>ring, organizing, diffusion, use and exploitation. It
requires turning personal knowledge into corporate knowledge than can be widely shared throughout
an organization and appropriately applied” (Skyrme, 2003). “KM is <strong>the</strong> process <strong>of</strong> creating value from
an organization’s intangible assets. It deals with creating, securing, combining, retrieving, and
distributing knowledge in <strong>the</strong> organization, both internally and externally” (Liebowitz, 1999).
This paper is a pre-initial step to integrate KM into tourism industry particularly in Malaysia. For this
purpose we characterized Tourism Knowledge Management (TKM) as <strong>the</strong> systematic creation,
modeling, sharing, operationalization and translation <strong>of</strong> tourism knowledge to improve <strong>the</strong> quality <strong>of</strong>
tourism industry. The goal <strong>of</strong> TKM is to promote and provide optimal, timely, effective and pragmatic
knowledge to tourists and tourist agent where and when <strong>the</strong>y need it to help <strong>the</strong>m make high quality,
well-informed and cost-effective decisions about traveling, accommodation, etc. The purpose <strong>of</strong> this
study is to explore a feasible and comprehensive critical success factors (CSFs) <strong>of</strong> implementing
TKM. CSFs are <strong>the</strong> factors that must be achieved if <strong>the</strong> company’s overall goals are to be attained
(Bro<strong>the</strong>rton & Shaw, 1996). The application <strong>of</strong> <strong>the</strong> CSFs approach can provide feasible and
comprehensive guidelines for successful integration TKM. In o<strong>the</strong>r words, this research explores <strong>the</strong>
factors that can lead to success <strong>of</strong> employing KM into tourism industry in Malaysian context.
2. Critical success factors <strong>of</strong> knowledge management
Numerous studies have posited a wide array <strong>of</strong> factors that can influence <strong>the</strong> success <strong>of</strong> KM
implementation. According to Rockart (1979), CSFs can be defined as “areas in which results, if <strong>the</strong>y
are satisfactory will ensure successful competitive performance for <strong>the</strong> organization.” Moreover, CSFs
have been identified and recognized as fundamental for organization success and better performance
in several activity domains (Al-Mabrouk, 2006). In KM context, <strong>the</strong>se CSFs can be viewed as those
activities and practices that should be acknowledged in order to ensure its successful implementation.
Hence, it is essential to nurture <strong>the</strong>se practices if <strong>the</strong>y have already existed or be developed if <strong>the</strong>y
were still not in place (Wong, 2005). Quite prominently, most CSFs which were postulated in <strong>the</strong>
previous studies were considered as more <strong>of</strong> internal factors ra<strong>the</strong>r than external as Wong (2005)
highlighted organizations have little control over external factors, such as environmental influences
when implementing KM.
Studies have proposed several CSFs for successful implementation <strong>of</strong> KM in various organizations
and industries. Cristina (2009) proposed ten critical factors to a successful KM implementation in
organizations which comprise, (1) employee training, (2) employee involvement, (3) open and
trustworthy spirit <strong>of</strong> teamwork, (4) employee empowerment, (5) visible top management leadership
and commitment, (6) information systems infrastructure, (7) performance management, (8) knowledge
friendly culture, (9) knowledge structure and (10) elimination <strong>of</strong> organizational constraints.
Likewise, Hasanali (2002) explicated five categories <strong>of</strong> factors namely leadership, culture, structure,
roles and responsibilities, IT infrastructures, and measurement. Similarly, <strong>the</strong> study <strong>of</strong> Chong (2003)
in 194 Malaysian ICT companies, found that (1) employee training, (2) employee involvement, (3)
team-working, (4) employee empowerment, (5) top management leadership and commitment, (6)
organizational constraints, (7) information systems infrastructure, (8) performance measurement, (9)
egalitarian culture, (10) benchmarking and (11) knowledge structure as critical factors leading to <strong>the</strong>
successful implementation <strong>of</strong> KM and higher organizational performance.
Interestingly, some scholars have attempted to assess and compare <strong>the</strong> degree <strong>of</strong> importance <strong>of</strong> <strong>the</strong>
existing KM CSFs which have garnered remarkable empirical and <strong>the</strong>oretical support. Based on <strong>the</strong>
review from previous studies, Al-Mabrouk (2006) highlighted management leadership, culture,
information technology and strategy to be frequently recognized as critical. Motivation, HRM, training
and education, organization infrastructure, processes, resources, marketing and measurement were
not identified as very important CSFs.
3. Analysis <strong>of</strong> CSFs <strong>of</strong> knowledge management in tourism industry
To <strong>the</strong> best <strong>of</strong> our knowledge, previous studies fall short <strong>of</strong> studying and determining <strong>the</strong> CSFs for <strong>the</strong>
tourism industry in implementing KM. However, it can be witnessed that different sets <strong>of</strong> CSFs <strong>of</strong> KM
have been presented by various studies in different industries, such as manufacturing and SMEs.
Irrefutably, some <strong>of</strong> <strong>the</strong> factors tend to recur in several studies, regardless <strong>of</strong> different industries or
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Subhacini Subramaniam et al.
organizations. Hence, it is plausible to categorize <strong>the</strong>m into a number <strong>of</strong> common factors such as top
management leadership and support, culture, technology, strategy, measurement, resources, etc. Per
se, <strong>the</strong>se generic factors are deemed to be germane to <strong>the</strong> KM efforts <strong>of</strong> <strong>the</strong> tourism industry.
However, as discussed earlier, development <strong>of</strong> CSFs <strong>of</strong> KM in <strong>the</strong> tourism industry entails for
consideration on <strong>the</strong> characteristics and needs <strong>of</strong> <strong>the</strong> industry. Hence, we intend to put forward a
review based on <strong>the</strong>oretical justification <strong>of</strong> <strong>the</strong> appropriateness <strong>of</strong> <strong>the</strong> generic CSFs <strong>of</strong> KM for <strong>the</strong>
tourism industry in Malaysia. For this purpose, <strong>the</strong> following factors have been derived from previous
literature pertinent to critical success factors <strong>of</strong> KM:
Top management leadership and support;
Culture;
Information technology (IT);
Strategy and purpose;
Organizational infrastructure;
Measurement
Processes and activities;
Motivational aids; and
Human resource management (HRM)
Top management leadership and support
Leadership involves <strong>the</strong> motivation <strong>of</strong> an organization’s people to achieve desired goals. Top
management involvement would ensure that KM initiatives will have strategic focus. The research has
also indicated that competent leadership <strong>of</strong> KM initiatives combined with <strong>the</strong> support from top
management would lead to budgetary support for KM initiatives (Green & Stankosky, 2010).
Fur<strong>the</strong>rmore, Liebowitz (2011) discerned, without strong leadership and a knowledge retention
program, <strong>the</strong> enterprise will sub-optimize and be vulnerable to potential knowledge loss.
Consistently, Lee and Roth (2009) stated leadership indicates <strong>the</strong> ability <strong>of</strong> <strong>the</strong> organization to align
KM behaviors with organizational strategies, identify opportunities, promote <strong>the</strong> value <strong>of</strong> KM,
communicate best strategies, facilitate organizational learning, and develop/create metrics for
assessing <strong>the</strong> impact <strong>of</strong> knowledge. The authors fur<strong>the</strong>r posited that <strong>the</strong> leadership role is pivotal
because leaders convey <strong>the</strong> messages <strong>of</strong> organizational change, and <strong>the</strong>y send <strong>the</strong> signals that
portray <strong>the</strong> importance <strong>of</strong> adopting KM across an organization.
Leadership plays a key role in ensuring success in almost any initiative within an organization. Its
impact on KM is even more pronounced because this is a relatively new discipline in tourism
organization. Although leadership plays a critical role in <strong>the</strong> success <strong>of</strong> <strong>the</strong> KM initiative, <strong>the</strong> "culture"
factor can be even more important to <strong>the</strong> success <strong>of</strong> KM.
Culture
Culture is <strong>the</strong> combination <strong>of</strong> shared history, expectations, unwritten rules, and social customs that
compel behaviors. Davenport, De Long and Beers (1997) mentioned a “knowledge-friendly” culture is
clearly one <strong>of</strong> <strong>the</strong> most important factors contributing to <strong>the</strong> success <strong>of</strong> a project. Similarly, Holowetzki
(2002) asserted to implement successful KM initiatives, senior executives should first approach KM
from a cultural perspective. In this essence, <strong>the</strong> authors <strong>of</strong> this study feel that <strong>the</strong>re is an urge for all
organizations to first analyze and understand <strong>the</strong>ir very own organizational cultures to ultimately
incorporate <strong>the</strong> intended KM attributes to form <strong>the</strong> knowledge-friendly organizational culture. This is
consistent with <strong>the</strong> affirmation <strong>of</strong> McDermott’s and O’Dell (2001): “Companies that successfully
implement KM do not try to change <strong>the</strong>ir culture to fit <strong>the</strong>ir KM approach; <strong>the</strong>y build <strong>the</strong>ir KM approach
to fit <strong>the</strong>ir culture” (p. 77).
Subsequently, trust, empowerment and openness are seen as o<strong>the</strong>r important elements to foster
closer linkages between firm goals and individual development and encourage learning through open
communication, knowledge sharing and team development (Lee and Choi, 2000, Wong, 2005).
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Openness is deemed important in encouraging open communication and sharing <strong>of</strong> critical
information, as <strong>the</strong>se two factors are inherent within <strong>the</strong> knowledge generation and transfer. For
instance, giving employees <strong>the</strong> opportunity to share <strong>the</strong>ir feelings and perceptions, critical information,
and open communication should enhance interpersonal trust (as cited by Ford in Holsapple, 2003).
By integrating KM in tourism industry, it will initiate a cultural change where knowledge sharing
becomes a little easier. People want to share <strong>the</strong>ir knowledge. They want o<strong>the</strong>rs to know <strong>the</strong>y are
knowledgeable.
Information technology
Information technology has evolved from merely being a static archive <strong>of</strong> information to being a
connector <strong>of</strong> a human to information and <strong>of</strong> one human to ano<strong>the</strong>r (Wong, 2005). Given that
advances in information technology have made it easier to acquire, store, or disseminate knowledge
than ever before, many organizations are employing IT to facilitate sharing and integration <strong>of</strong>
knowledge (Kankanhalli, Tanudidjaja, Sutanto & Tan, n.d.). On <strong>the</strong> contrary, as cited by Arora in
Wong and Aspinwall (2004), without proper guidance, organizations may focus too heavily on <strong>the</strong> use
<strong>of</strong> information technology without bringing a correspondent change to <strong>the</strong>ir human and cultural
aspects. In this vein, <strong>the</strong> findings <strong>of</strong> Saito and Umemoto (2005) concluded that appropriate KM
initiatives should be designed in support to well defined knowledge strategies, and KM technologies
should be chosen according to <strong>the</strong> practices and approaches <strong>of</strong> those initiatives, if KM technologies
are to be <strong>of</strong> strategic value.
Inevitably <strong>the</strong> tourism industry is also affected by <strong>the</strong> technological revolution. Both tourism
destinations and enterprises increasingly need to adopt innovative methods to enhance <strong>the</strong>ir
competitiveness (Buhalis, 1998). Fur<strong>the</strong>rmore, timely and accurate information, relevant to
consumers' needs, is <strong>of</strong>ten <strong>the</strong> key to satisfaction <strong>of</strong> tourist demand. Therefore, IT provides <strong>the</strong>
information backbone that facilitates tourism. Although many studies view information technology as
only a tool to facilitate KM implementation, however, its usage is becoming evidently prevalent. In
fact, most ancillary sectors which make up <strong>the</strong> tourism industry in Malaysia, such as hotels,
transportation, airline, food and beverages, etc copiously rely on information technology in most <strong>of</strong>
<strong>the</strong>ir daily tasks.
However, Pyo, Uysal and Chang as cited in Cooper (2006) pointed out that in <strong>the</strong> tourism industry,
complex operations were developed in <strong>the</strong> 90s, but as <strong>the</strong>y had poorly designed user interfaces <strong>the</strong>y
remained largely unused by <strong>the</strong> industry. Therefore, important factors that need to be considered in
<strong>the</strong> development <strong>of</strong> a KM system include perceived support, simplicity <strong>of</strong> technology, ease <strong>of</strong> use,
suitability to users’ needs, relevancy <strong>of</strong> knowledge content, and standardization <strong>of</strong> a knowledge
structure or ontology (Wong, 2005; Cabrera & Cabrera, 2005). In parallel with this, Lee and Roth
(2009) suggested on-line and <strong>of</strong>fline training <strong>of</strong> technology applications may be used to introduce new
and reinforce existing techniques and practices and <strong>of</strong>fer effective means for creating new concepts
and knowledge.
Organizational infrastructure
According to Davenport, De Long and Beers (1997) building an organizational infrastructure for KM
means establishing a set <strong>of</strong> roles and organizational groups whose members have <strong>the</strong> skills to serve
as resources for individual projects. Claver-Cortés, Zaragoza-Sáez & Pertusa-Ortega (2007) stated
that <strong>the</strong> organizational structure features should be firstly supported by a set <strong>of</strong> objectives
unmistakably oriented toward <strong>the</strong> generation <strong>of</strong> knowledge as a strategic resource so that knowledge
creation and transmission within <strong>the</strong> organization can be facilitated.
Purcidonio, Francisco and Oliveira (2008) avowed that <strong>the</strong> traditional structure, top-down
management, is inefficient in stimulating <strong>the</strong> necessary dynamic interaction to create <strong>the</strong>
organizational knowledge. The authors fur<strong>the</strong>r concluded to streng<strong>the</strong>n o<strong>the</strong>r elements <strong>of</strong> <strong>the</strong>
organizational structure, such as team work, to delegate responsibilities, to search for implanting a
more flexible organizational structure, in order to be more agile, and, thus, adjusting <strong>the</strong> organization
to <strong>the</strong> new characteristics <strong>of</strong> <strong>the</strong> market. Thus, a more flexible and flat organizational structure is
deemed to pave <strong>the</strong> way for ideal implementation <strong>of</strong> KM (Kolaric & Radojcic, 2011; Akhavan et.al,
2009)
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Subhacini Subramaniam et al.
Rickards (n.d) highlighted tourism industry structures evolve over time and need to adapt to changing
circumstances; a peak tourism body is needed within a municipality to carry <strong>the</strong> interests <strong>of</strong> <strong>the</strong>
industry forward and tourism industry bodies are streng<strong>the</strong>ned by having key stakeholders.
Strategy and purpose
One <strong>of</strong> <strong>the</strong> key elements for KM success is to develop an overarching enterprise-wide KM strategy for
<strong>the</strong> organization, with senior leadership support in moral and financial terms (Liebowitz, 1999). This
provides <strong>the</strong> foundation for how an organization can deploy its capabilities and resources to achieve
its KM goals (Wong, 2005). Fur<strong>the</strong>rmore, crafting an appropriate knowledge strategy is vital for
assuring that KM efforts are being driven by and are supporting <strong>the</strong> firm's business and competitive
strategies (Davenport and Prusak, 2000; Zack, 1999). Abdollahi, Rezaeian & Mohseni (2008)
stressed that business owners and <strong>the</strong>ir management teams should have clear objectives and
ambitions on knowledge in <strong>the</strong>ir business, especially for those knowledge areas with high impact on
<strong>the</strong> business competitive advantage, today as well in future. However, for <strong>the</strong> most mature
knowledge-managing organizations today, <strong>the</strong> challenge that lies ahead is forging this link between
KM and fundamental business strategy (Davenport & Prusak, 2000). Wusheng and Mikyung (2011)
affirmed that effectively communicating <strong>the</strong> strategy and <strong>the</strong> strategic activities with employees is as
important as arriving at <strong>the</strong> goal for which managers/owners have opted.
From <strong>the</strong> tourism perspective, a study by Wusheng and Mikyung (2011) pointed out that small and
medium sized tourism enterprises (SMTEs) can gain several benefits (as cited by Knapp in Wusheng
& Mikyung, 2011) from implementing a KM strategy such as: reduced loss <strong>of</strong> intellectual capital due to
people leaving <strong>the</strong> company; reduced costs by decreasing <strong>the</strong> number <strong>of</strong> times <strong>the</strong> company must
repeatedly solve <strong>the</strong> same problem, and by achieving economies <strong>of</strong> scale in obtaining information
from external providers; reduced redundancy <strong>of</strong> knowledge-based activities; increased productivity by
making knowledge available more quickly and easily; and increased employee satisfaction by
enabling greater personal development and empowerment.
Measurement
Measurement indicates <strong>the</strong> assessment methods <strong>of</strong> KM and <strong>the</strong>ir relationships to organizational
performance (Lee & Roth, 2009). Freeze and Kulkarni (2005) delineated measurement, as a domain
<strong>of</strong> KM, serves to identify knowledge assets and capabilities <strong>of</strong> an organization and to align <strong>the</strong>
measurement activities with organizational strategies. Various scholars have emphasized <strong>the</strong>
importance <strong>of</strong> measuring <strong>the</strong> effectiveness and worthiness <strong>of</strong> <strong>the</strong> KM initiatives, as it is perceived to
evaluate, control and improve <strong>the</strong> existing performance (Wong, 2005; Liebowitz & Ching, 2000;
American Productivity and Quality Center (APQC), 2010; Ahmed, Lim & Zairi, 1999). In fact, those
that invest <strong>the</strong> most and measure most rigorously are achieving a financial return on investment (ROI)
and valuable intangibles such as an increased sense <strong>of</strong> belonging among employees, faster
socialization <strong>of</strong> issues and change, cross-fertilization <strong>of</strong> ideas and so on (APQC, 2010).
The study <strong>of</strong> Wusheng and Mikyung (2011) depicted that measurement <strong>of</strong> KM initiatives is important
for <strong>the</strong> small and medium sized tourism enterprises (SMTEs) to map new areas <strong>of</strong> improvement and
new action plans. The authors suggested that <strong>the</strong> aspects <strong>of</strong> measurement may comprise <strong>the</strong> quality
and strategic value <strong>of</strong> <strong>the</strong>ir knowledge relative to <strong>the</strong>ir competition as well as <strong>the</strong> knowledge
processes and activities.
None<strong>the</strong>less, <strong>the</strong>re seems to be mutual consensus in <strong>the</strong> literature that states KM initiatives may fail
due to improper or unclear measurement systems (Ahmed et. al, 1999; Hylton, 2002;). Fur<strong>the</strong>rmore,
as cited by O’Dell, Hasanali, Hubert, Lopez, Odem & Raybourn in Holsapple (2003), none <strong>of</strong> <strong>the</strong> early
adopters in <strong>the</strong>ir studies have found <strong>the</strong> magic bullet that satisfies all <strong>of</strong> <strong>the</strong> requirements <strong>of</strong> a
complete measurement system. Ra<strong>the</strong>r, <strong>the</strong> organizations approach measurement in different ways
and with different degrees <strong>of</strong> quantitative precision, depending upon stage <strong>of</strong> evolution, direction <strong>of</strong>
KM activities, and varying degrees <strong>of</strong> need to prove value. Hence, this accounts for wariness and
meticulousness in developing a measurement system.
Processes and activities
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Subhacini Subramaniam et al.
KM is an on-going process that involves many activities and processes, such as: diagnosis, design,
implementation, knowledge creation, knowledge transfer, and knowledge sharing (Lee & Roth, 2009).
Alavi and Leidner (2001) discerned KM involves distinct but interdependent processes <strong>of</strong> knowledge
creation, knowledge storage and retrieval, knowledge transfer, and knowledge application.
As for <strong>the</strong> tourism industry, KM involves <strong>the</strong> process <strong>of</strong> identifying, capturing, sharing and applying
knowledge to improve performance (Targeted News Service, 2010). This is somewhat similar to <strong>the</strong>
KM processes <strong>of</strong> o<strong>the</strong>r industries as highlighted in <strong>the</strong> literature. Hence, this industry as well is
deemed to instill <strong>the</strong> application <strong>of</strong> KM processes into <strong>the</strong> employees’ daily work processes and o<strong>the</strong>r
crucial aspects <strong>of</strong> <strong>the</strong> organization.
Motivational aids
Motivation is viewed as ano<strong>the</strong>r imperative aspect in carrying out KM initiatives (Malhotra & Galletta,
2003). In line with this, Skryme (1999) asserted that employees must be motivated to spend time in
developing and sharing <strong>the</strong>ir knowledge. This portrays <strong>the</strong> need for an effective reward system from
<strong>the</strong> management to nurture employee behaviour towards attaining <strong>the</strong> organization’s KM goals. In
fact, many consultancies are now making knowledge contributions part <strong>of</strong> each person’s annual
appraisal and pay award (Skryme, 1999)
In <strong>the</strong> context <strong>of</strong> tourism, however, Kusluvan and Kusluvan as cited in Kusluvan (2003) indicated that
about 92% <strong>of</strong> <strong>the</strong>ir respondents agreed that <strong>the</strong> pay was low for most tourism jobs and level <strong>of</strong> fringe
benefits, such as bonuses and holidays were insufficient. In addition, <strong>the</strong> findings <strong>of</strong> Janes and
Wisnom (2010) showed lack <strong>of</strong> opportunities for growth and promotion, lack <strong>of</strong> training and
problematic work conditions have led to decreased motivation and job satisfaction amongst
employees in <strong>the</strong> tourism sector. As such, both monetary and non-monetary rewards seem to be
essential for employees in <strong>the</strong> tourism industry.
Hence, knowing what employees want from <strong>the</strong>ir work and <strong>of</strong>fering <strong>the</strong>m opportunities to achieve <strong>the</strong>ir
personal goals can lead to a more dedicated and motivated workforce (Janes & Wisnom, 2010). In
conjunction with this, Muhammed (2006) stated that intrinsically motivated individuals engage in more
knowledge creation, <strong>the</strong>y are usually more willing to share <strong>the</strong>ir knowledge, <strong>the</strong>y proactively seek new
knowledge that <strong>the</strong>y can use in <strong>the</strong> organizational context, and <strong>the</strong>y may also try to capture more
knowledge because <strong>of</strong> <strong>the</strong>ir increased knowledge needs. Conceivably, a well-balanced reward
system consists <strong>of</strong> intrinsic and extrinsic motivational elements are deemed to nurture and reinforce
positive employee behaviour toward adopting KM.
Human Resource Management (HRM)
Scholars have mentioned that <strong>the</strong> integration <strong>of</strong> <strong>the</strong> HRM strategy and <strong>the</strong> general strategy <strong>of</strong> a firm
make up <strong>the</strong> general KM strategies (Edvardsson, 2008; Brewer & Brewer, 2010). Carter and
Scarborough (2001) identified policy, resource and context as <strong>the</strong> domains <strong>of</strong> HRM which can
influence knowledge creation and deployment.
Likewise, <strong>the</strong> right people who have <strong>the</strong> tendency to create and share knowledge are needed. Without
recruiting <strong>the</strong> right set <strong>of</strong> employees, <strong>the</strong> desire to narrow <strong>the</strong> knowledge gaps in an organization will
remain unattained. This is consistent with <strong>the</strong> views <strong>of</strong> several scholars such as Gagne (2009);
Davenport and Prusak, (2000); Robertson and Hammersley (2000); and Skyrme (1999). Besides that,
job design, performance appraisal and compensation systems, managerial styles, and training are
also perceived as salient aspects <strong>of</strong> human resources to influence attitudes, need satisfaction and
sharing norms as well as to foster knowledge flows (Gagne, 2009; Cabrera & Cabrera 2005).
Baum, Amoah and Spivack (1997) articulated that integrating policy development in <strong>the</strong> tourism and
hospitality industry with that <strong>of</strong> its key support area, human resource development, is an important
route to be taken at national and local levels within <strong>the</strong> tourism economy. In essence, Redman and
Mat<strong>the</strong>ws as cited in Nickson (2007) outlined a range <strong>of</strong> HR practices which are suggested to
organizational strategies aimed at securing high-quality service, such as in <strong>the</strong> tourism industry:
recruitment and selection; retention; teamwork; training and development; appraisal; rewarding
quality; job security; employee involvement and employee relations.
526

4. Discussion
Subhacini Subramaniam et al.
There are plentiful proven records on <strong>the</strong> effectiveness <strong>of</strong> KM in various industries. However, tourism
industry is still at impulsive stage and has been passive in adopting this approach due to lack <strong>of</strong>
gearing between researchers and tourism. Advance research in this area is undoubtedly needed to
assist <strong>the</strong> stakeholders <strong>of</strong> <strong>the</strong> tourism industry to preserve its competitiveness and sustainability. The
primary research outline should focus on integrating a spirited KM approach based on <strong>the</strong> CFS as
<strong>the</strong>y control <strong>the</strong> process <strong>of</strong> KM implementation. Tourism industry needs to be prepared for <strong>the</strong>se
changes and challenges in order to add significant value towards <strong>the</strong> development <strong>of</strong> <strong>the</strong> country.
5. Conclusion
Many <strong>of</strong> <strong>the</strong> previous studies on KM have focused on identifying success factors towards <strong>the</strong>
industrial performance such as technology, people, strategy adoptions, rewards and many more.
However, <strong>the</strong> critical success factors <strong>of</strong> knowledge management in Malaysian tourism industry have
rarely been discussed by <strong>the</strong> previous researchers. Therefore, in this paper we have studied previous
literature and suggested <strong>the</strong> potential CSFs <strong>of</strong> KM in <strong>the</strong> perspective <strong>of</strong> Malaysian tourism sector,
which include: top management leadership and support; culture; strategy and purpose; measurement;
processes and activities; organizational infrastructure; motivational aids and human resource
management.
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528

Investigation <strong>of</strong> Critical Attributes <strong>of</strong> <strong>the</strong> Organizational
Knowledge Culture
Šajeva Svetlana and Robertas Jucevičius
Kaunas University <strong>of</strong> Technology, Kaunas, Lithuania
svetlana.sajeva@ktu.lt
robertas.jucevicius@ktu.lt
Abstract: Knowledge management (KM) surveys show, that organizational culture is one <strong>of</strong> <strong>the</strong> most important
factors for successful KM at organizations. Research studies also prove that cultural barriers are <strong>the</strong> hardest
barriers to overcome when implementing KM. Cases in KM indicate that leaders <strong>of</strong> enterprises acknowledge <strong>the</strong>
importance <strong>of</strong> developing a proper organizational culture in order to shape employees` values and <strong>the</strong>ir attitudes
towards creation, sharing, and efficient use <strong>of</strong> knowledge. Thus, <strong>the</strong> specific organizational knowledge culture
that refers to <strong>the</strong> unique configuration <strong>of</strong> norms, values, beliefs, and so on that characterize <strong>the</strong> way <strong>of</strong> thinking
and behavior <strong>of</strong> individuals towards knowledge and KM processes should be developed at knowledge-intensive
organizations. Some aspects <strong>of</strong> <strong>the</strong> organizational knowledge culture have already been discussed in <strong>the</strong>
literature. However, little research has been conducted to define <strong>the</strong> critical attributes <strong>of</strong> <strong>the</strong> knowledge culture.
The paper addresses <strong>the</strong> critical role <strong>of</strong> developing knowledge culture at knowledge-intensive organizations and
contributes to <strong>the</strong> conceptualization <strong>of</strong> <strong>the</strong> organizational knowledge culture and its attributes. The organizational
knowledge culture was analyzed by underlying <strong>the</strong> three main levels, as Schein (2004) proposed for <strong>the</strong> analysis
<strong>of</strong> <strong>the</strong> culture. Research literature analysis was applied in order to identify <strong>the</strong> attributes which are argued to be
critical to knowledge-intensive organizations and bring in visible and invisible elements <strong>of</strong> <strong>the</strong>ir organizational
culture. The paper outlines a number <strong>of</strong> challenges for both researchers and practitioners. For practitioners,
understanding critical cultural attributes for enhancing KM processes provides tools when making managerial
decisions for a successful development <strong>of</strong> KM programs. For KM researchers, conceptualizing <strong>the</strong> notion <strong>of</strong> <strong>the</strong>
organizational knowledge culture could encourage fur<strong>the</strong>r <strong>the</strong>oretical and empirical research in this field.
Keywords: knowledge culture, organizational culture, knowledge management, knowledge-intensive
organization
1. Introduction
Knowledge is <strong>the</strong> power and a guarantee for <strong>the</strong> personal and pr<strong>of</strong>essional success <strong>of</strong> an individual.
That is why people instinctively seek to protect and hoard valuable knowledge and information from
o<strong>the</strong>rs. It is especially typical <strong>of</strong> Western countries where individualism is strongly encouraged. In
order to gain victory over competitors, to have a higher social status, and to control <strong>the</strong>ir carriers
people seek to protect <strong>the</strong>ir knowledge which means keeping safe <strong>the</strong>ir status, respect, and future
success. This is also true for organizations and <strong>the</strong>ir employees who seek to guard <strong>the</strong>ir knowledge.
Even if employees are loyal to <strong>the</strong>ir organization and contribute to achieving its goals, pure altruism
as a phenomenon does not exist, when we talk about <strong>the</strong> willingness <strong>of</strong> individuals to share <strong>the</strong>ir
valuable personal knowledge with o<strong>the</strong>rs. According to Davenport, De Long, and Beers (1998), “if
individuals believe <strong>the</strong>ir knowledge is critical to maintaining <strong>the</strong>ir value as employees, <strong>the</strong>y will be
reluctant to share <strong>the</strong>ir knowledge with o<strong>the</strong>rs”. The essence <strong>of</strong> KM, however, is making individual
knowledge visible and accessible within <strong>the</strong> organization. This requires creating <strong>the</strong> atmosphere <strong>of</strong>
trust and security. This means that a specific organizational culture should be created at
organizations. As Leistner (2010, p. 41) stresses, “people usually respect knowledge as <strong>the</strong>ir biggest
asset. If you want to get to some <strong>of</strong> that knowledge, it is very important to have a full understanding <strong>of</strong>
individual and organizational culture”.
We assume that every organization has its unique culture. We suppose, however, that different
organizations that possess common specific features have also a similar cultural context. For
example, we may talk about some common cultural characteristics, typical to higher education
organizations, or health services organizations, or o<strong>the</strong>r. The same could be stated about knowledgeintensive
organizations. Although knowledge-intensive organizations differ in <strong>the</strong>ir size, nature, and
<strong>the</strong> goals sought, <strong>the</strong>ir leaders and employees possess similar perception towards knowledge and its
management. Knowledge-intensive organizations rely on knowledge as <strong>the</strong> most important strategic
resource for competitive advantage. The strength <strong>of</strong> <strong>the</strong>se organizations lies in employees, <strong>the</strong>ir
expertise and unique knowledge. According to Lam (2005), knowledge-intensive are <strong>the</strong> organizations
<strong>the</strong> survival or success <strong>of</strong> which is highly dependent upon knowledge-based activities, processes, and
people. In such firms, KM would naturally be <strong>of</strong> high corporate interest. Due to this particularity, <strong>the</strong>se
organizations share common cultural characteristics towards <strong>the</strong> value <strong>of</strong> knowledge and <strong>the</strong>
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Šajeva Svetlana and Robertas Jucevičius
importance <strong>of</strong> KM. It is also evident that <strong>the</strong>re is a need for developing a specific organizational
culture which promotes and sustains KM activities at such organizations.
Organizational culture has been defined by a number <strong>of</strong> researchers, such as Brown (1998), Schein
(2004). However, it still remains not an easily understood phenomenon. The organizational
knowledge culture is a much more controversial concept. As Oliver and Kandadi (2006) claim,
“despite <strong>the</strong> fact that organizational culture is recognized as a critical factor for effective KM, very little
is known about how knowledge culture should be created at organizations”.
Authors have tried to define <strong>the</strong> knowledge culture (McDermott, O`Dell, 2001; Dobrai, Farkas, 2008).
They have introduced various terms to describe such culture. Some <strong>of</strong> <strong>the</strong>m named it knowledge
culture, o<strong>the</strong>rs used such terms as knowledge-sharing culture, knowledge-friendly culture, knowledgesupporting
culture, etc. Some <strong>of</strong> <strong>the</strong> authors suggested ways in which organizational culture
influences behaviors central to knowledge creation, sharing, and use (De Long, 1997). O<strong>the</strong>rs
identified major factors affecting knowledge culture in organizations (Oliver, Kandadi, 2006); still
o<strong>the</strong>rs presented case studies on how to create <strong>the</strong> knowledge culture (Hauschild, Licht, Stein, 2001;
Lam, 2005; Saeid, Mehdi, 2010). However, little research has been conducted to define <strong>the</strong> critical
attributes <strong>of</strong> <strong>the</strong> knowledge culture. Recognizing this gap, current paper not only addresses <strong>the</strong> critical
role <strong>of</strong> developing knowledge culture at knowledge-intensive organizations, but also contributes to <strong>the</strong>
conceptualization <strong>of</strong> <strong>the</strong> organizational knowledge culture and its attributes.
The purpose <strong>of</strong> this paper is to provide a coherent view <strong>of</strong> <strong>the</strong> organizational knowledge culture by
investigating its critical attributes. In order to achieve this purpose, research literature analysis has
been selected as <strong>the</strong> main research method. This article has been based on <strong>the</strong> review <strong>of</strong> scientific
literature that covers two main <strong>the</strong>mes <strong>of</strong> research: 1) organizational culture and its development, 2)
KM and its implementation at organizations. The sources on organizational culture enable <strong>the</strong>
understanding <strong>of</strong> organizational culture in general. The analysis <strong>of</strong> surveys and case studies on KM at
organizations helps investigate specific cultural attributes that should be developed in order to
guarantee <strong>the</strong> success <strong>of</strong> knowledge-intensive organizations.
The article has been divided into two main sections. The first section provides arguments as to why a
specific culture should be developed in order to enhance knowledge-intensive processes at an
organization. The conceptualization <strong>of</strong> knowledge culture is to be found in this part <strong>of</strong> <strong>the</strong> article. The
second section investigates critical attributes <strong>of</strong> <strong>the</strong> knowledge culture in more detail. The knowledge
culture is analyzed at several different levels, underlining visible artifacts, exposed values, and basic
underlying assumptions that have been identified according to Schein (2004). This paper contributes
to <strong>the</strong> understanding <strong>of</strong> what knowledge culture is. The analysis <strong>of</strong> <strong>the</strong> core attributes <strong>of</strong> <strong>the</strong>
knowledge culture will help identify whe<strong>the</strong>r it exists at an organization, and how it could be
developed, if does not already exist. Theoretically, <strong>the</strong> paper contributes to <strong>the</strong> discussion about <strong>the</strong>
importance <strong>of</strong> <strong>the</strong> development <strong>of</strong> a specific organizational culture for enhancing KM activities.
Practically, it defines concrete elements that could be explored and shaped while developing a proper
culture at an organization which values knowledge and relies on its management.
2. Conceptualization <strong>of</strong> <strong>the</strong> organizational knowledge culture
This section <strong>of</strong> <strong>the</strong> article opens with <strong>the</strong> investigation <strong>of</strong> <strong>the</strong> studies accomplished in <strong>the</strong> field <strong>of</strong> KM
that stress <strong>the</strong> importance <strong>of</strong> a specific culture for knowledge-intensive organizations. Then, <strong>the</strong>
concept <strong>of</strong> knowledge culture is defined and, finally, <strong>the</strong> main levels <strong>of</strong> <strong>the</strong> organizational knowledge
culture are determined.
As <strong>the</strong> research literature analysis indicates, a number <strong>of</strong> different studies have been conducted in <strong>the</strong>
field <strong>of</strong> organizational culture and KM. They fall into three main groups. Table 1 summarizes <strong>the</strong>
research conducted in <strong>the</strong> areas related to organizational culture and KM in all <strong>the</strong> three groups,
pointing out <strong>the</strong> most outstanding investigators in <strong>the</strong> field. The first group covers <strong>the</strong> researchers who
examine <strong>the</strong> link between organizational culture and KM. A review <strong>of</strong> <strong>the</strong>ir studies shows that many
investigators have tried to identify organizational factors affecting KM in general or influencing
separate KM processes (Lopez, Peon, Ordas, 2004; Oliver, Kandadi, 2006; Al-Alawi, Al-Marzooqi,
Mohammed, 2007; Ajmal, Helo, 2010; Al-Adaileh, Al-Atawi, 2011; Wang, Su, Yang, 2011). These
authors have explored different cultural dimensions, such as interpersonal trust, rewards,
communication between staff, and have analyzed <strong>the</strong> strength <strong>of</strong> <strong>the</strong>ir impact on KM success in
different contexts. The main goal <strong>of</strong> <strong>the</strong>se studies was to explore <strong>the</strong> correlation between
530

Šajeva Svetlana and Robertas Jucevičius
organizational culture (or some certain attributes) and KM processes, for example, knowledge sharing
or knowledge creation. As a result, <strong>the</strong>se studies have shown what cultural characteristics have a
greater impact on KM and what characteristics could be streng<strong>the</strong>ned in order to achieve positive KM
behavior.
The second group <strong>of</strong> <strong>the</strong> researchers investigate <strong>the</strong> importance <strong>of</strong> organizational culture for a
successful KM (Lee, Choi, 2003; Chong, 2006; Migdadi, 2009). The purpose <strong>of</strong> <strong>the</strong>se research
studies was to define and investigate <strong>the</strong> influence <strong>of</strong> organizational factors on KM success. Most <strong>of</strong>
<strong>the</strong>se studies indicate that <strong>the</strong> role <strong>of</strong> organizational culture is critical to KM. The main goal <strong>of</strong> <strong>the</strong>se
studies was to underline critical factors for an effective KM. As a result, many researchers have
shown that without a favorable organizational culture, KM practices would not be successful.
The third group introduces <strong>the</strong> researchers investigating <strong>the</strong> causes <strong>of</strong> KM failure (De Long, Fahey,
2000; McDermott, O’Dell, 2001). These studies have shown that cultural barriers are <strong>the</strong> main
obstacle to a successful implementation <strong>of</strong> KM. For example, along with diagnosing cultural barriers to
KM, De Long and Fahey (2000) recognize organizational culture as a major barrier to leveraging
intellectual assets. The authors identify four ways in which culture influences <strong>the</strong> behaviors central to
knowledge creation, sharing, and use. As stated before, <strong>the</strong> main goal <strong>of</strong> this particular and o<strong>the</strong>r
similar studies was to identify cultural barriers to KM and to show how organizations could overcome
<strong>the</strong>m.
Table 1: Examples <strong>of</strong> studies on <strong>the</strong> relationship <strong>of</strong> organizational culture and knowledge
management
Aspect Reference Research purpose Survey Research findings
Link between organizational culture and KM
Culture as a
critical factor <strong>of</strong>
KM success
Ajmal, Helo
(2010)
Al-Adaileh, Al-
Atawi (2011)
Al-Alawi, Al-
Marzooqi,
Mohammed
(2007)
Lopez, Peon,
Ordas (2004)
Oliver,
Kandadi
(2006)
Wang, Su,
Yang (2011)
Lee, Choi
(2003)
To provide an empirical
source for understanding
how cultural artifacts in
project-based
organizations affect KM
activities.
To investigate <strong>the</strong> impact
<strong>of</strong> some organizational
culture attributes on <strong>the</strong>
knowledge exchange.
To investigate <strong>the</strong> role <strong>of</strong>
certain factors in
organizational culture in
<strong>the</strong> success <strong>of</strong> knowledge
sharing.
To analyze how <strong>the</strong>
collaborative culture
affects KM and
organizational learning.
To identify factors
affecting knowledge
culture.
To investigate <strong>the</strong> impact
<strong>of</strong> culture on <strong>the</strong>
knowledge creation
capability.
To explore <strong>the</strong> factors
essential to managing
knowledge effectively.
531
45 Finnish projectbased
companies
378 employees at
Saudi Telecom
Company, Saudi
Arabia.
231 public and
private
organizations in
<strong>the</strong> Kingdom <strong>of</strong>
Bahrain.
195 firms from
industrial and
service sector that
employ over 200
people, Spain.
5 large globally
distributed
organizations and
a UK National
Health Service
provider.
212 Chinese firms,
China.
426 middle
managers in 58
organizations from
manufacturing,
service, and
financial business
industries, Korea.
Positive relationship between
intangibility <strong>of</strong> cultural artifacts in
<strong>the</strong> organization and KM
importance recognized.
Cultural attributes <strong>of</strong> trust,
innovation, information flow,
supervision, and reward have an
impact on knowledge exchange,
i.e. <strong>the</strong> translation or transferring <strong>of</strong>
knowledge among people within a
certain context, as a part <strong>of</strong> <strong>the</strong>ir
interaction.
Trust, communication, information
systems, rewards, and
organization structure are
positively related to knowledge
sharing in organizations.
The effect <strong>of</strong> collaborative culture
on organizational learning is
statistically significant and quite
large. Collaborative culture is a
means to leverage knowledge
through organizational learning.
Ten factors affecting knowledge
culture in organizations identified.
Those include leadership,
organizational structure, and
evangelization, communities <strong>of</strong>
practice, reward systems, time
allocation, business processes,
recruitment, infrastructure, and
physical attributes.
Organizational culture plays a
critical role in <strong>the</strong> knowledge
creation capability.
Organizational culture variables
are found to be essential for
knowledge creation.

Šajeva Svetlana and Robertas Jucevičius
Aspect Reference Research purpose Survey Research findings
Cultural barriers to
successful KM
Migdadi
(2009)
To identify preliminary KM
critical success factors
which need to be
concentrated by smalland-medium
sized
enterprises before
launching a full-scale KM
initiative.
Chong (2006) To examine <strong>the</strong> level <strong>of</strong>
perception and
implementation <strong>of</strong> <strong>the</strong>
identified eleven KM
De Long,
Fahey (2000)
McDermott,
O’Dell (2001)
success factors.
To demonstrate <strong>the</strong>
importance <strong>of</strong> a cultural
perspective on many <strong>of</strong>
<strong>the</strong> issues, central to
effective KM.
To investigate how
cultural barriers to sharing
knowledge could be
overcome.
418 managers <strong>of</strong>
all levels in 25
small-and-medium
sized enterprises,
Saudi Arabia.
427 middle
managers from
194 ICT
companies,
Malaysia.
More than 50
companies
pursuing KM
projects.
Face-to-face
interviews at five
companies, USA.
A set <strong>of</strong> 11 critical success factors,
believed to be more appropriate for
small-and-medium sized
enterprises, proposed. These
factors have a positive relationship
to organizational successes and
o<strong>the</strong>r outcomes. Culture is defined
as one <strong>of</strong> <strong>the</strong> critical factors.
Knowledge-friendly culture has
been found among <strong>the</strong> 11 identified
factors, which are perceived
important for successful KM
implementation.
Four ways, in which culture
influences <strong>the</strong> behaviors, central to
knowledge creation, sharing, and
use, have been identified.
Five main lessons about aligning
knowledge sharing with <strong>the</strong>
organization culture have been
summarized.
As it could be seen, a mutual effect <strong>of</strong> culture and KM has been studied widely and some aspects <strong>of</strong>
<strong>the</strong> organizational knowledge culture have already been discussed in <strong>the</strong> literature. Some researchers
investigate how culture influences <strong>the</strong> behavior, central to knowledge creation, sharing, and use,
o<strong>the</strong>rs explore major cultural obstacles to a positive orientation to knowledge and learning at an
organization, still o<strong>the</strong>rs analyze some specific cultural features <strong>of</strong> knowledge-intensive organizations.
Organizational culture is suggested to be <strong>the</strong> most significant constraint and challenge for <strong>the</strong>
enhancement <strong>of</strong> KM processes at an organization. Researchers and practitioners agree that a unique
configuration <strong>of</strong> norms, values, beliefs, and practices characterizes <strong>the</strong> behavior <strong>of</strong> individuals and
<strong>the</strong>ir groups at knowledge-intensive organizations. A specific knowledge culture, based on <strong>the</strong>
acknowledgement <strong>of</strong> <strong>the</strong> importance <strong>of</strong> knowledge and relying on KM processes, is being developed
at such organizations. Such culture enables and motivates people to identify, acquire, create, store,
share, and apply knowledge for <strong>the</strong> benefit <strong>of</strong> <strong>the</strong> organization. It is a specific culture that differs in its
characteristics from a traditional organizational culture at non knowledge-intensive organizations.
Such culture is called and defined differently by researchers (see Table 2). The main aspects,
underlined in all <strong>the</strong> definitions <strong>of</strong> such culture, are employees` positive orientation to knowledge as
well as <strong>the</strong>ir enabling and willingness to participate in KM activities. It could be seen that <strong>the</strong>
organizational knowledge culture, however, is still a vaguely understood concept. Many <strong>of</strong> <strong>the</strong> earlier
studies did not examine organizational knowledge culture in detail. Researchers used to limit
<strong>the</strong>mselves to a discussion <strong>of</strong> some cultural dimensions and did not try to reveal a multi-level structure
<strong>of</strong> <strong>the</strong> organizational knowledge culture. Moreover, <strong>the</strong> literature review has shown that authors did
not pay much attention to defining <strong>the</strong> concept <strong>of</strong> knowledge culture. There are some explanations
concerning this situation. Firstly, knowledge culture is usually seen as an integral part <strong>of</strong> a KM
initiative and as an isolated part <strong>of</strong> organizational culture. Secondly, <strong>the</strong> concept <strong>of</strong> organizational
culture is controversial itself. As Cameron and Quinn (1999, p. 145) note, “writers have pointed out
several important controversies that characterize <strong>the</strong> concept <strong>of</strong> organizational culture. These
controversies relate to how to precisely define culture (definitional issues), how to measure culture
(measurement issues), and what key dimensions should characterize culture (dimensional issues)”.
Thirdly, <strong>the</strong> concept <strong>of</strong> culture it is not yet well understood. According to Cameron and Quinn (1999),
culture was ignored for long by managers and scholars. The authors stated that it was not until <strong>the</strong>
beginning <strong>of</strong> <strong>the</strong> 1980s that organizational scholars began paying serious attention to <strong>the</strong> concept <strong>of</strong>
culture. Fourthly, <strong>the</strong> concept <strong>of</strong> culture involves such dimensions as values, beliefs, attitudes that are
recognized intangible and hard to determine. As <strong>the</strong> concept <strong>of</strong> knowledge culture also infers <strong>the</strong>
existence <strong>of</strong> such innermost attributes like values, it gets difficult to define <strong>the</strong> knowledge culture.
Fifthly, a culture is not easily unmasked. That is why one bristles with difficulties seeking to
conceptualize <strong>the</strong> organizational knowledge culture. Even more difficulties are met when trying to
investigate and develop <strong>the</strong> attributes <strong>of</strong> such culture.
532

Šajeva Svetlana and Robertas Jucevičius
Table 2: Diversity <strong>of</strong> terms and definitions <strong>of</strong> <strong>the</strong> organizational knowledge culture
Reference Term Description
Davenport, De
Long, Beers
(1998)
Dobrai, Farkas
(2008)
McDermott,
O`Dell (2001)
Oliver,
Kandadi
(2006)
Ribiere, Sitar
(2003)
Saeid, Mehdi
(2010)
Sheng, Sun
(2007)
Knowledgefriendly
culture
Knowledgefriendly
culture
Knowledge
sharing culture
Knowledge
culture
Knowledgesupporting
culture
Knowledgeoriented
organizational
culture
Knowledge
innovation
culture
Culture with a positive orientation to knowledge is <strong>the</strong> one that
highly values learning on and <strong>of</strong>f <strong>the</strong> job and <strong>the</strong> one in which
experience, expertise, and rapid innovation supersede hierarchy.
This culture is characterized by <strong>the</strong> positive attitudes <strong>of</strong> leaders
and colleagues towards knowledge processes, especially
knowledge acquisition, generation, and transfer.
In an organization with a knowledge sharing culture, people would
share ideas and insights because <strong>the</strong>y see it as natural, ra<strong>the</strong>r
than something <strong>the</strong>y are forced to do.
Knowledge culture represents a way <strong>of</strong> organizational life that
enables and motivates people to create, share and utilize
knowledge for <strong>the</strong> benefit and enduring success <strong>of</strong> <strong>the</strong>
organization.
Knowledge-supporting culture is <strong>the</strong> culture that enables and
facilitates different knowledge activities in <strong>the</strong> organization.
Knowledge-oriented organizational culture affects KM in <strong>the</strong>
current and ideal states, and involves knowledge creating
organizational culture, knowledge sharing organizational culture,
knowledge applying organizational culture, and knowledge
keeping organizational culture.
Knowledge innovation culture <strong>of</strong> libraries is a kind <strong>of</strong> value,
behavior, and institutional system, which gains competitive
advantage and sustainable development <strong>of</strong> libraries through
knowledge creation.
In this article, in order to describe a specific organizational culture <strong>of</strong> knowledge-intensive
organizations, we use <strong>the</strong> term “organizational knowledge culture”. This term covers <strong>the</strong> combination
<strong>of</strong> three keywords – “knowledge”, “organization”, and “culture”. According to Schein (2004, p. 8), <strong>the</strong>
main critical aspect <strong>of</strong> culture is “<strong>the</strong> idea that certain things in groups are shared and held in
common”. Due to organizational culture this means that employees and leaders <strong>of</strong> <strong>the</strong> organization
have common feelings, attitudes, and values for achieving <strong>the</strong>ir personal and organizational goals,
<strong>the</strong>y behave and act similarly, as written and unwritten norms and procedures <strong>of</strong> <strong>the</strong> organization
define, <strong>the</strong>y see <strong>the</strong> evidence <strong>of</strong> <strong>the</strong>ir shared values in embedded visible symbols. With relevance to
<strong>the</strong> organizational knowledge culture, employees and leaders value <strong>the</strong>ir and colleagues` knowledge,
have a positive intention for its management, and see <strong>the</strong> evidence <strong>of</strong> <strong>the</strong> importance <strong>of</strong> knowledge
and its management in visible elements <strong>of</strong> an organization. The combination <strong>of</strong> keywords shows that
we investigate cultural features (culture), typical to organizations (organizational culture) that stress
<strong>the</strong> importance <strong>of</strong> knowledge and its effective management (organizational knowledge culture). So,
<strong>the</strong> organizational knowledge culture is <strong>the</strong> culture <strong>of</strong> a knowledge-intensive organization that values
knowledge and supports KM processes. By analogy to organizational culture, different levels and a
number <strong>of</strong> attributes <strong>of</strong> <strong>the</strong> organizational knowledge culture can be fur<strong>the</strong>r identified.
3. Levels and attributes <strong>of</strong> <strong>the</strong> organizational knowledge culture
This section <strong>of</strong> <strong>the</strong> article briefly introduces different levels <strong>of</strong> organizational culture and provides <strong>the</strong>
description <strong>of</strong> <strong>the</strong> main attributes <strong>of</strong> knowledge culture. The critical attributes are <strong>the</strong>n demonstrated
with concrete examples <strong>of</strong> visible and invisible elements <strong>of</strong> <strong>the</strong> organizational knowledge culture.
According to Schein (2004), culture can be analyzed at three different levels – <strong>the</strong> level <strong>of</strong> its artifacts,
<strong>the</strong> level <strong>of</strong> its values, and <strong>the</strong> level <strong>of</strong> its basic assumptions. Artifacts are <strong>the</strong> observable symbols and
signs <strong>of</strong> organization’s culture that could be seen, heard, and felt. The author has noted <strong>the</strong> examples
<strong>of</strong> such artifacts that include <strong>the</strong> architecture <strong>of</strong> physical environment, language, technology and
products, artistic creations, style <strong>of</strong> clothing, myths and stories, rituals and ceremonies, and so on.
The second level <strong>of</strong> organizational culture includes <strong>the</strong> so-called espoused values. These values
serve as a guide or orientation for saying and doing in different situations. Espoused values include
such dimensions as values, beliefs, attitudes, and organization’s norms, as well as <strong>the</strong> practices,
accepted by employees. Basic assumptions are on <strong>the</strong> third level <strong>of</strong> organizational culture. These are
<strong>the</strong> basic values that are not debated and are accepted by <strong>the</strong> staff without pro<strong>of</strong>. It would be naturally
expected that <strong>the</strong> organizational knowledge culture could be analyzed in a similar manner, by
underlying <strong>the</strong> three main levels. The organizational knowledge culture is reflected in artifacts – visible
533

Šajeva Svetlana and Robertas Jucevičius
symbols <strong>of</strong> a knowledge-intensive organization. Values, beliefs, attitudes, norms, and practices are
more invisible and are suggested as <strong>the</strong> shared awareness <strong>of</strong> employees and leaders about what is
proper and important for a knowledge-intensive organization. These shared values reflect <strong>the</strong>
importance <strong>of</strong> KM. Basic assumptions refer to <strong>the</strong> third level <strong>of</strong> <strong>the</strong> organizational knowledge culture.
These basic assumptions show <strong>the</strong> nature <strong>of</strong> a knowledge-intensive organization and are considered
to be <strong>the</strong> cornerstone <strong>of</strong> its success. The main attributes <strong>of</strong> <strong>the</strong> organizational knowledge culture are
defined in Table 3.
Table 3: Definition and examples <strong>of</strong> <strong>the</strong> attributes <strong>of</strong> <strong>the</strong> organizational knowledge culture
Attributes <strong>of</strong> <strong>the</strong>
knowledge
culture
Definition
(Oxford Dictionaries
Online)
Assumptions A thing that is accepted
as true or as certain to
happen, without pro<strong>of</strong>.
Attitudes A settled way <strong>of</strong>
thinking or feeling
about something.
Beliefs An acceptance that
something exists or is
true, especially one
without pro<strong>of</strong>.
Norms A standard or pattern,
especially <strong>of</strong> social
behavior, that is typical
or expected.
Practices The customary,
habitual, or expected
procedure or way <strong>of</strong>
Symbols
doing <strong>of</strong> something.
A thing that represents
or stands for something
else, especially a
material object
representing something
abstract.
Values Principle or standard <strong>of</strong>
behavior; one's
judgment <strong>of</strong> what is
important in life.
Revised definition Some examples
Some basic values about <strong>the</strong>
success <strong>of</strong> a knowledge-intensive
organization that are accepted by
employees without pro<strong>of</strong>.
Ways <strong>of</strong> thinking or feeling <strong>of</strong>
employees towards <strong>the</strong>mselves,
coworkers, and supervisors that
shape <strong>the</strong>ir behavior due to KM
activities.
Acceptance that knowledge and
its management is a value both to
an organization and its
employees.
Behavior standards that are
expected from employees at
knowledge-intensive
organizations.
Formal or informal routines that
are used at a knowledgeintensive
organization in order to
accomplish KM activities.
Visible things that reflect <strong>the</strong>
importance <strong>of</strong> knowledge and its
management to an organization.
Principles or standards <strong>of</strong>
behavior that show what is
important for a knowledgeintensive
organization in order to
be successful in KM.
Knowledge is power;
learning is a lifelong
process; knowledge
is <strong>the</strong> main source <strong>of</strong>
competitive
advantage.
Motivation to learn;
regarding colleagues
as partners;
commitment to
organization
New knowledge is
valuable; sharing
knowledge is safe.
Time for learning;
reusing existing
knowledge; open
communication;
experimentation.
Knowledge audits;
recording best
practices; rewarding
team cooperation.
Knowledge-sharing
forums; research
teams; competence
development plans;
knowledge products
and services.
Personal and
pr<strong>of</strong>essional growth;
openness to change;
trust; loyalty.
Creating and developing <strong>the</strong> organizational knowledge culture means changing feeling, thinking, and
behavior patterns around knowledge and its management processes. It is important to indicate what
attributes <strong>of</strong> <strong>the</strong> organizational knowledge culture can be evident at knowledge-intensive
organizations. For this purpose, based on <strong>the</strong> literature review, we have identified and presented in
<strong>the</strong> Appendix <strong>the</strong> visible and invisible elements, embedded in <strong>the</strong> way what knowledge-intensive
organizations demonstrate, how employees <strong>of</strong> such organizations act, how <strong>the</strong>y behave, what <strong>the</strong>y
say, how <strong>the</strong>y feel, what <strong>the</strong>y expect, what are <strong>the</strong>ir intentions, attitudes, etc., and what norms and
practices are specific to <strong>the</strong> practices <strong>of</strong> knowledge identification, acquisition, creation, storing,
sharing, and application.
The underlined key attributes form <strong>the</strong> whole picture about what <strong>the</strong> organizational knowledge culture
is being proper to <strong>the</strong> knowledge-intensive organizations. These attributes can be fur<strong>the</strong>r used as <strong>the</strong>
main indicators, analyzing <strong>the</strong> culture at a definite organization as well as shaping its culture towards
<strong>the</strong> organizational knowledge culture.
534

4. In conclusion
Šajeva Svetlana and Robertas Jucevičius
The paper points out that knowledge-intensive organizations have a specific organizational culture. In
order to succeed, <strong>the</strong> culture <strong>of</strong> such organizations should be developed into <strong>the</strong> knowledge culture
that values knowledge and supports KM processes. For developing <strong>the</strong> organizational knowledge
culture, its specific attributes could be identified and analyzed. The attributes <strong>of</strong> <strong>the</strong> organizational
knowledge culture include: 1) visible symbols that reflect <strong>the</strong> importance <strong>of</strong> knowledge and its
management to an organization, 2) shared values, beliefs, attitudes, norms, and practices that show
what is important for a knowledge-intensive organization, 3) basic assumptions that show <strong>the</strong> essence
<strong>of</strong> a knowledge-intensive organization and are considered to be <strong>the</strong> cornerstone <strong>of</strong> its success. The
attributes <strong>of</strong> <strong>the</strong> organizational knowledge culture, identified in <strong>the</strong> paper, show <strong>the</strong> characteristics that
should be streng<strong>the</strong>ned at an organization in order to become a knowledge-intensive one. These
critical attributes could be used as indicators for analyzing organizational culture and awarding
effective managerial decisions about shaping it towards <strong>the</strong> knowledge culture.
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Appendix: Some critical elements <strong>of</strong> <strong>the</strong> attributes <strong>of</strong> <strong>the</strong> organizational knowledge culture
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538

Learning in <strong>the</strong> Context <strong>of</strong> Inappropriate Internet use
Among Students <strong>of</strong> a Provincial High School in Nor<strong>the</strong>rn
Thailand
Amarin Tawata and Pitipong Yodmongkon
College <strong>of</strong> Arts Media and Technology, Chiang Mai University
amarin16_57@live.com
pitipong@camt.info
Abstract: To improve high school students’ behavior requires understanding and action, both <strong>of</strong> which can be
formalized within a learning system. The project presented in this paper considers Thai high school students’
Internet use with regards to <strong>the</strong>ir environment, which was viewed as an ecological system including a micro,
meso and exosystem. The data collected in <strong>the</strong> project can be used to pioneer a learning system to improve
students’ Internet use. Results show that at <strong>the</strong> school selected as a case study, both <strong>the</strong> school and parents
provide <strong>the</strong> Internet to students with intentions for <strong>the</strong>m to use it as a learning tool. However, students enjoy
using <strong>the</strong> Internet for entertainment. In particular, <strong>the</strong>y spend long periods <strong>of</strong> time with <strong>the</strong>ir peers at Internet
cafes using <strong>the</strong> Internet for entertainment because <strong>the</strong>re is no teacher or parental supervision. In addition,
students use <strong>the</strong> Internet to access pornographic and violent content, posting pr<strong>of</strong>ane language, and making
contact with online strangers. Some students use <strong>the</strong> Internet as a source to copy information to finish <strong>the</strong>ir
assignments without appropriate reading, analysis or learning. All <strong>of</strong> <strong>the</strong>se have negative outcomes for students.
Students’ inappropriate Internet use can be associated with <strong>the</strong>ir immaturity, social needs and development.
However, <strong>the</strong> Internet has potential as a powerful tool for learning and is very popular with students. Teachers
and parents must find an effective way to change students’ inappropriate Internet use to enhance students’ online
learning. In terms <strong>of</strong> a <strong>the</strong>oretical framework, self-directed learning has potential to serve this purpose. This case
study concludes by suggesting personality traits <strong>of</strong> self-directed learning can be used as a framework for
investigation and action to improve students’ Internet use.
Keywords: learning system, contextual learning, student behavior, inappropriate Internet use
1. Introduction
1.1 A learning system to develop adolescents
High school students are in transition from childhood to adulthood. The transition is called
adolescence and is characterised by adaptation and adjustment. Adolescence can provide both risks
and opportunities for human development, and deliver both adaptive directions and maladaptive
pathways. There are many studies which attempt to understand adolescent adaptation and
adjustment. These studies have pioneered adolescent development through protective processes or
interventions. These interventions can alter a maladaptive pathway to become an adaptive direction
(Holmbeck & Kendall 2002).
The understanding and action necessary for adolescent development can be encapsulated within <strong>the</strong>
processes <strong>of</strong> a learning system. For example, at a national level, surveillance systems for
adolescents’ risk behaviors are used to collect, analyse and interpret data as well as use information
(intervention) to prevent/reduce adolescent risk behavior. The use <strong>of</strong> information relates to actions
such as development <strong>of</strong> intervention programs and information dissemination to relevant individuals
for fur<strong>the</strong>r action. Fur<strong>the</strong>rmore, it proceeds to data collection for assessment and creates new actions
(Forster, Widome and Bernat 2007; Campostrini and D.V. McQueen 2005; Sussman et al. 2002). This
information can be integrated into a learning system to develop adolescent behavior within a
schooling system. An example <strong>of</strong> such a learning system is shown in Figure 1.
A learning system to prevent maladaptive pathways should begin with data collection to understand
adolescent behavior in context, especially inappropriate behavior that is likely to lead to <strong>the</strong>se
maladaptive pathways. In this research, an investigation was conducted to diagnose inappropriate
behavior and indicate a possible solution. Finally, actions to prevent and intervene in inappropriate
behavior are suggested. Ultimately, data collection will provide answers as to whe<strong>the</strong>r selected
interventions work or not, as well as providing timely changes to inappropriate behavior.
In developing a learning system, this study explored <strong>the</strong> context <strong>of</strong> high school students’ inappropriate
Internet use by following an ecological model. This ecological model impacts behavior
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Amarin Tawata and Pitipong Yodmongkon
(Bronfenbrenner 1977) and includes nest structures, ranging from <strong>the</strong> microsystem to macro system
(explained in <strong>the</strong> <strong>the</strong>oretical framework section). The ecology system can be adopted to study
inappropriate behavior that leads to maladaptive pathways in adolescents (Jonson-Reid 1998;
Rudasill 2010) as it gives details <strong>of</strong> environments and processes that affect adolescent risk behavior.
To create, implement
and verify interventions
To investigate causes and
indicate a type <strong>of</strong> interventions
Figure 1: A learning system for improving students’ behavior
1.2 Adolescents’ inappropriate Internet use
To understand <strong>the</strong> field
and context <strong>of</strong> students’
inappropriate behavior
The Internet as a new environment can facilitate adolescent development. It delivers an arena where
individuals can explore <strong>the</strong>ir social development, self-worth, sexuality, health behavior, leadership,
and knowledge. Adolescents can use <strong>the</strong> Internet for gratification and get positive outcomes
(Greenfield & Yan 2006). Thai high school students are encouraged to use <strong>the</strong> Internet for positive
learning outcomes by <strong>the</strong> Thai government, households, and businesses. Students can use <strong>the</strong>
Internet at school, <strong>the</strong>ir houses, and Internet cafes. This is reflected in Figure 2 (NSO 2010 : p.8),
which shows that young people in Thailand between 15-24 years old had <strong>the</strong> highest rate <strong>of</strong> Internet
use. Those aged 6-14 years were <strong>the</strong> second highest group <strong>of</strong> Internet users.
Year
Figure 2: The percentage <strong>of</strong> internet users in Thailand (2005-2010) (adapted from NSO 2010 : p.8)
Maladaptive pathways <strong>of</strong> adolescents can occur through inappropriate Internet use. Firstly,
adolescents use <strong>the</strong> Internet for entertainment without time limitations. This can lead to poor
academic performance, as well as relationship, health, and emotional problems (Douglas et al. 2008;
Young 1999). Secondly, adolescents frequently access pornographic and violent content associated
with stimulated sexual activities and aggressive behavior (Doring 2009; Freeman 2008; Caplan, et al.
2009). Thirdly, some adolescents who form a close relationship with online strangers and disclose
personal data may be solicited and seduced by strangers to meet in person (Wolak 2008). Last,
adolescents who participate in Internet harassment and act with aggression towards ano<strong>the</strong>r person,
or post pornographic content can cause conflict with <strong>the</strong>ir peers and may unwittingly become engaged
in illegal behavior (Ybarra et al. 2007; Williams & Michael 2008).
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Amarin Tawata and Pitipong Yodmongkon
In Thailand, Internet users like to access entertainment websites. Figure 3 shows <strong>the</strong> highest Internet
use in Thailand from 2006 - 2009 involved entertainment. Entertainment websites shared 38.78% <strong>of</strong>
all web clicks in 2008 and 38.41% in 2009. Games are <strong>the</strong> second highest with a share <strong>of</strong> 14.02% <strong>of</strong>
all web clicks in 2008 and 12.64% in 2009. In contrast, educational websites accounted for 1.94% in
2008 and 2.16 % in 2009. The most popular search term has been related to games and music from
2006 to 2010 (Truehits Statistics).
Figure 3: Percentage <strong>of</strong> web clicks in Thailand based on category (adapted from Truehits Statistics)
Inappropriate content on <strong>the</strong> Internet, such as violence and pornography can be found without
effective management to restrict <strong>the</strong> access <strong>of</strong> children and adolescents. Moreover, <strong>the</strong>re was Internet
harassment in Thailand. From a survey (NECTEC 2009: p.67), Internet users (including adolescents
aged less than 20), identified problems <strong>of</strong> content on <strong>the</strong> Internet as a pornography (24.2%), data
integrity (19%), using impolite language (13.5%), and infringed privacy (10.7%).
With regards to online solicitation and seduction (Michelet, 2002), 92% <strong>of</strong> Thai children (aged 7-11)
and adolescents (aged 12-25) who have used online chat sites have been invited to speak about sex.
In addition, 21% <strong>of</strong> children and 52% <strong>of</strong> adolescents have shared personal details with <strong>the</strong>ir online
friends. Additionally, 24% <strong>of</strong> children and 37% <strong>of</strong> adolescents have met in person with <strong>the</strong>ir online
friends. 42% <strong>of</strong> children and 12% <strong>of</strong> adolescents have not done so yet, but would consider doing so in
<strong>the</strong> future. Moreover, 25% <strong>of</strong> children and 32% <strong>of</strong> adolescents, who have met in person with <strong>the</strong>ir
online friends, suggested <strong>the</strong>ir first meeting was a shocking experience.
The trend <strong>of</strong> inappropriate Internet use in Thailand can affect adolescents in disturbing ways. The
Internet is available in many environments used by Thai high school students. For example, schools,
<strong>the</strong>ir homes and Internet cafes near <strong>the</strong>ir school or <strong>the</strong>ir home. Therefore, <strong>the</strong> ecology <strong>of</strong> human
development that provides a framework for adolescent environments can be adopted to learn about
students’ inappropriate Internet use.
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1.3 Theoretical framework
Amarin Tawata and Pitipong Yodmongkon
The ecology <strong>of</strong> human development presents an environment which is considered as a nested
structure in which a person regularly interacts. The environment has four levels. First, <strong>the</strong>
microsystem consists <strong>of</strong> <strong>the</strong> immediate settings that relate to particular activities like home, school
and community. Second, <strong>the</strong> mesosystem points out interrelations among immediate settings. Third,
<strong>the</strong> exosystem concerns an extension to social systems that connect to <strong>the</strong> mesosystem, (e.g.
parents’ work and neighbours. Finally, <strong>the</strong> macrosystem is explained as <strong>the</strong> larger cultural context, for
example economic, social, educational, legal, and political systems (Bronfenbrenner 1977).
1.4 Purpose <strong>of</strong> <strong>the</strong> current study
This study explores <strong>the</strong> context, processes and outcomes <strong>of</strong> students’ inappropriate Internet use at a
high school in nor<strong>the</strong>rn Thailand. Thai students are encouraged to use <strong>the</strong> Internet by various groups,
such as <strong>the</strong> Thai government, school policies, parents, and businesses. The results are <strong>the</strong>refore
presented according to <strong>the</strong> ecology <strong>of</strong> students’ inappropriate Internet use at <strong>the</strong> microsystem,
mesosystem, and exosystem level.
2. Method
2.1 Participants
The selected school for this study was a provincial high school in Nor<strong>the</strong>rn Thailand that follows <strong>the</strong> IT
policies <strong>of</strong> <strong>the</strong> Thai government and supports students’ Internet use via appropriate resources, such
as computers, Internet access, Internet cafés, as well as school staff and parents.
The interviewees comprised <strong>of</strong> school staff, as well as student and <strong>the</strong> parent leaders. The school
staff included <strong>the</strong> Vice Director, who is responsible for student affairs, a computer teacher, class
teacher, and computer <strong>of</strong>ficer. The student leaders consisted <strong>of</strong> a student committee and six student
leaders from each class. The parent leaders were delegates <strong>of</strong> <strong>the</strong> parent network.
2.2 Procedure
Interviews were conducted within a framework <strong>of</strong> opportunities, weaknesses, advantages, and
disadvantages <strong>of</strong> students’ Internet use as well as <strong>the</strong> ecology <strong>of</strong> human development.
2.3 Data analysis
In this study, content analysis was adopted to sort data. First, unrelated data was removed and
secondly, data was grouped according to settings, processes, and outcomes. Then, remaining data
was mapped to describe <strong>the</strong> ecology and processes <strong>of</strong> students’ Internet use. Finally, data was
verified by communication with <strong>the</strong> school staff, student leaders, and <strong>the</strong> delegates <strong>of</strong> <strong>the</strong> parent
network.
3. Results
3.1 Microsystem
Figure 4 shows <strong>the</strong> microsystem <strong>of</strong> students’ inappropriate Internet use at various places, including
school, households and Internet cafes. They provide resources and services for students’ Internet
use. Therefore, students can conduct inappropriate Internet use and get negative outcomes.
3.1.1 School
The school has an ICT policy to support all students (about 3,700) to use <strong>the</strong> Internet for learning.
Therefore, it delivers an IT infrastructure including a 6 Mbps leased line, local area network, 380
computers at learning centers and computer labs, and a wireless system. The school meets <strong>the</strong>
government imposed school standard <strong>of</strong> one computer per student (1:10). Filtering and blocking
s<strong>of</strong>tware aims to minimize access to inappropriate websites in <strong>the</strong> school. The school delivers
computer classes to students in every grade (grade 7 to grade 12) in every program. It has supported
teachers to create e-learning for <strong>the</strong>ir students.
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Amarin Tawata and Pitipong Yodmongkon
Figure 4: Microsystem <strong>of</strong> high school students’ Internet use
Through <strong>the</strong> use <strong>of</strong> school policy and support, students can use <strong>the</strong> Internet while at school,
especially at learning centers or connecting to <strong>the</strong> Internet via <strong>the</strong>ir laptops. However, students like to
use <strong>the</strong> Internet for entertainment (e.g. playing games, watching video clips and visiting social
networking sites). There are time limitations and rules imposed on Internet use in <strong>the</strong> school,
however, many students ignore <strong>the</strong>se rules. Additionally, <strong>the</strong> students can find a way, using peers’
word <strong>of</strong> mouth, to access blocked websites. In addition, very few teachers have created online
content to enhance learning.
There are significant outcomes from inappropriate Internet use that can happen at school. With data
from teachers, students can use <strong>the</strong> Internet as a source for copying information to finish <strong>the</strong>ir
assignment without reading, analyzing, and adjusting. The result is that students do not learn. Some
students also post pr<strong>of</strong>ane language to blame o<strong>the</strong>r students on web boards. This causes conflict
among students.
3.1.2 Households
The school provided <strong>the</strong> Internet via modems that students accessed from <strong>the</strong>ir homes at a speed <strong>of</strong>
56 Kbps, however, students did not like to use it at this relatively slow speed. They prefer <strong>the</strong> high
speed Internet <strong>of</strong> a private company, <strong>the</strong>refore <strong>the</strong> school cancelled this service in 2008. Now, many
parents support students’ Internet use, as students can use it to learn and complete assignments.
Students like to use <strong>the</strong> Internet at <strong>the</strong>ir home, because it is more private. When parents do not
monitor students’ Internet use, students can access inappropriate websites, such as pornography,
and devote long periods <strong>of</strong> time to games and entertainment. This can lead to a lack <strong>of</strong> learning.
3.1.3 Internet cafes
Figure 5 describes how Internet cafes can attract students. They <strong>of</strong>fer online entertainment to
students with reliable and fast services. There are Internet cafes located in close proximity to <strong>the</strong>
school. Some students like to use Internet cafes after school, on Friday night, and on weekends to
play games with <strong>the</strong>ir peers. Some students, who like to play computer games, skip school to play
games at Internet cafes. Internet cafes support LAN games for groups <strong>of</strong> students and online games
with high speed. There is also no parental or teacher supervision in <strong>the</strong> Internet cafes, so students are
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Amarin Tawata and Pitipong Yodmongkon
free to use <strong>the</strong> Internet in an inappropriate way. The price <strong>of</strong> playing games is affordable for students.
Additionally, Internet cafes <strong>of</strong>ten have loyalty promotions such as free credit and refunds. The Internet
cafes serve food, snacks, and drinks, so students can play games all day and night.
Affordable
price for
students
food,
snack
drink
and
eating
place
good service
include
clean
around <strong>the</strong> school and easy to find
hav
e
hav
e
promotion
for free use
and
refundable
locate
Internet cafes
service hour up to customers
provide
high
speed
internet
parents’ and teachers’ concern
without
Games
and <strong>the</strong>
Internet
with
many
computers
with LAN
allow
comprise <strong>of</strong>
playing as teams
and sharing game
good
facilities
high
performance
computer
Figure 5: Internet cafes as providers <strong>of</strong> high school students’ Internet use
Students who like to play computer games in Internet cafes spend a lot <strong>of</strong> money, which can lead to
o<strong>the</strong>r problems like stealing and borrowing money from peers. Moreover, it may cause lethargic
behavior in class and skipping school. In <strong>the</strong> case <strong>of</strong> playing violent games, students <strong>of</strong>ten increase
<strong>the</strong>ir aggressive behavior.
3.2 Mesosystem
The school and parents showed <strong>the</strong>ir shared vision for students’ Internet use. The school policy that
relates to Internet use for learning leads to <strong>the</strong> parent network <strong>of</strong> <strong>the</strong> school supporting computers and
Internet at <strong>the</strong> school. In addition, parents provide Internet access at home. They expect that students
will use <strong>the</strong> Internet to focus on learning and doing homework. Teachers can also influence students’
Internet use for learning and can assign students to use <strong>the</strong> Internet for learning purposes.
While <strong>the</strong> school and parents have a shared vision for students’ Internet use, <strong>the</strong> Internet cafes
provide <strong>the</strong> Internet for entertainment purposes. There are Internet cafes around <strong>the</strong> school focusing
on providing entertainment to students. In particular, <strong>the</strong>y service online and LAN games to students.
Due to different objectives <strong>of</strong> <strong>the</strong> school and Internet cafes, teachers and parents see Internet cafes
as obstructing students’ learning, as <strong>the</strong>y attract students to be entertained by <strong>the</strong> Internet, especially
playing online and LAN games. This can lead to students’ becoming addicted to games and again, a
lack <strong>of</strong> learning. Internet cafes attract students because <strong>the</strong>y have two main differences from <strong>the</strong>
Internet at students’ houses and <strong>the</strong> school. First, <strong>the</strong>y provide LAN games that let students play as a
team. Second, <strong>the</strong>y give more freedom to <strong>the</strong> students, meaning students can engage in
inappropriate Internet use, for example playing games, entertainment and contacting online friends.
3.3 Exosystem
The school provides <strong>the</strong> Internet to students as a new environment for learning. It follows <strong>the</strong>
Information Technology Policy Framework 2001-2010 (or IT 2010) (National Information Technology
Committee Secretariat, 2003). The policies have set <strong>the</strong> SchoolNet Thailand program to develop <strong>the</strong>
IT skills <strong>of</strong> students and school staff, to promote IT use for teaching and studying, and to provide
access to <strong>the</strong> Internet in schools. This has given an opportunity to students to learn from sources
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Amarin Tawata and Pitipong Yodmongkon
around <strong>the</strong> world. The Thai Ministry <strong>of</strong> Education has also issued <strong>the</strong> Basic Education Curriculum
2001 and <strong>the</strong> Basic Education Core Curriculum 2008 (Ministry <strong>of</strong> Education, no date) that has
supported use <strong>of</strong> <strong>the</strong> Internet for learning.
For Internet use at home, parents are able to provide <strong>the</strong> Internet to students due to <strong>the</strong> decreasing
price <strong>of</strong> computers and Internet fees. However, some parents do not understand <strong>the</strong> Internet and
some do not supervise <strong>the</strong>ir children’s Internet use because <strong>the</strong>y do not comprehend technology or
have enough time.
Students like to go to Internet cafés before, during and after school to play online and LAN games.
Some Internet cafes do not follow Thai law which prohibits students entering during school hours and
do not allow teachers to check. These Internet cafes also serve food, snacks and drinks that let
students play for long periods <strong>of</strong> time. They also provide rooms that can hide students from public
view.
4. Analysis and discussion
Students have opportunities to use <strong>the</strong> Internet at school, in <strong>the</strong>ir homes and at Internet cafes around
<strong>the</strong> school. The school provides resources that facilitate <strong>the</strong> Internet to enhance students’ learning.
Moreover, parents support students’ Internet use for learning. In contrast, Internet cafes focus on
entertainment for students.
Students’ Internet use relates mostly to entertainment, with some students accessing inappropriate
websites, and posting pr<strong>of</strong>ane language. In some cases, <strong>the</strong>y spend time playing online and LAN
games. Despite school and parental rules regarding Internet use, students ignore <strong>the</strong>m. This can be
affected by <strong>the</strong>ir immaturity and social needs (Douglas et al. 2008; Wolak et al. 2008). Students prefer
to use <strong>the</strong> Internet at Internet cafes because <strong>of</strong> entertainment with peers without adults’ involvement.
Inappropriate Internet use can deliver negative outcomes to students such as decreasing <strong>the</strong>ir study
time and abilities (Young 1999), conflict with peers (Ybarra et al. 2007), an increase in aggressive
behaviors (Anderson 2004) and arranging to meet with a stranger (Wolak et al. 2008).
A study by Lin and Tsai (2002) showed <strong>the</strong> advantage <strong>of</strong> teachers influence on students’ Internet use.
They can set assignments and lead students in using <strong>the</strong> Internet. However, in this school, few
teachers created contents for e-learning on <strong>the</strong> Internet. Teachers can and should focus on using <strong>the</strong>
Internet as a teaching and learning tool by assigning students to use <strong>the</strong> Internet, and creating
content for e-learning.
Additionally, to develop students’ online learning, self-directed learning (SDL) has been considered as
a framework (Fellows et al. 2002). Brockett (1983) defined SDL as a disposition to engage in learning
activities where <strong>the</strong> individual takes responsibility for developing and carrying out learning endeavors
in an autonomous manner, without being prompted or guided by o<strong>the</strong>r people. SDL can be a direction
<strong>of</strong> learning via <strong>the</strong> Internet, distance learning and lifelong learning. SDL as a student skill can be
cultivated by teachers (Lin and Chiang, 2002). SDL is concerned with constructing an environment as
an instruction method and developing a system which considers <strong>the</strong> personality traits <strong>of</strong> students (Lin
and Chiang 2002; Lounsbury et al. 2009).
5. Conclusion
Students have opportunities to use <strong>the</strong> Internet both inside and outside <strong>of</strong> <strong>the</strong> school. With immaturity,
and <strong>the</strong> needs and motivation <strong>of</strong> students, students spend a significant amount <strong>of</strong> time using <strong>the</strong>
Internet for entertainment and visiting inappropriate websites. This leads to undesirable outcomes,
especially in term <strong>of</strong> a lack <strong>of</strong> learning. However, students can use <strong>the</strong> Internet for learning, based on
teachers’ concerns, by considering a framework <strong>of</strong> self-directed learning.
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546

Intellectual Capital Reporting in Spanish Higher Education
Institutions: A User Perspective
Ángel Tejada, Yolanda Ramírez and Agustín Baidez
Faculty <strong>of</strong> Economics and Business Administration, University <strong>of</strong> Castilla-La
Mancha, Albacete, Spain
Angel.Tejada@uclm.es
Yolanda.Ramirez@uclm.es
Agustin.Baidez@uclm.es
Abstract: Universities in Europe are faced with numerous challenges, such as: (a) <strong>the</strong> extended competition with
o<strong>the</strong>r organisations such as <strong>the</strong> creation <strong>of</strong> new public and private universities, <strong>the</strong> education given by companies
through what <strong>the</strong>y call “corporate universities” to contribute to <strong>the</strong> lifelong learning process <strong>of</strong> <strong>the</strong>ir own
employees, (b) <strong>the</strong> increasing level <strong>of</strong> <strong>the</strong> internationalization <strong>of</strong> education and research, (c) pressure to
harmonise <strong>the</strong> different national university systems (e.g. Bologna Process), (d) <strong>the</strong> claims and aspirations <strong>of</strong>
various stakeholders (including industry and society in general), and (e) increased demand for transparency and
accountability about <strong>the</strong> “results” and “benefits” derived from <strong>the</strong> public funds.These numerous challenges
directly affect <strong>the</strong> conceptualisation <strong>of</strong> <strong>the</strong> function <strong>of</strong> higher education institutions and <strong>the</strong>ir accounting
information model. This situation makes it necessary to conduct a pr<strong>of</strong>ound reform and modernisation <strong>of</strong> <strong>the</strong>
university system with regard to <strong>the</strong> presentation <strong>of</strong> information owing to <strong>the</strong> growing need for universities to
increase transparency and <strong>the</strong> level <strong>of</strong> accountability delivered to <strong>the</strong>ir different stakeholders. So, to face up
<strong>the</strong>se challenges and increase <strong>the</strong> role <strong>of</strong> universities in <strong>the</strong> new knowledge-based economy, it will be necessary
that higher education institutions pay greater attention to society’s new demands for information. Giving users
access to a type <strong>of</strong> information relevant for good decision making constitutes a healthy exercise in transparency
for universities. The aim <strong>of</strong> this paper is to demonstrate <strong>the</strong> need for universities to include information on
intellectual capital in <strong>the</strong>ir accounting information system (<strong>the</strong> information provided in <strong>the</strong> annual accounts
published by institutions <strong>of</strong> higher education). An empirical study was conducted to discover <strong>the</strong> extent to which
<strong>the</strong> different users <strong>of</strong> university accounting information are now demanding information concerning intellectual
capital in order to make <strong>the</strong> right decisions. To this end a questionnaire was designed and sent to all <strong>the</strong>
members <strong>of</strong> <strong>the</strong> Social Councils <strong>of</strong> Spain’s public universities. The results <strong>of</strong> this research show <strong>the</strong> intangible
elements about which universities should provide information in order to satisfy <strong>the</strong>ir users’ new information
demands.
Keywords: intellectual capital, higher education institutions, users, information needs
1. Introduction
Accounting research is currently focused on <strong>the</strong> utility paradigm, which stresses <strong>the</strong> need for
accounting information to be truly relevant to good decision making by its users. In this respect, in <strong>the</strong>
framework for <strong>the</strong> presentation <strong>of</strong> accounting information for higher education institutions, GASB 35
“Basic Financial Statements –and Management’s Discussion and Analysis- for Public Colleges and
Universities” highlighted <strong>the</strong> need for supplying more useful information to <strong>the</strong> growing range <strong>of</strong> users,
who, it was found, hardly refer to financial reports (GASB, 1999, p. 25).
However, accountability in <strong>the</strong> public sector has traditionally been somewhat short-sighted since <strong>the</strong>
tools <strong>of</strong> transparency have always focused on financial and budget information (Martín and Moneva,
2009), ignoring o<strong>the</strong>r types <strong>of</strong> information such as data on <strong>the</strong> social responsibility <strong>of</strong> <strong>the</strong>ir activities
(Melle, 2007) or <strong>the</strong> key intangible elements in <strong>the</strong>ir value creation (Ramírez, 2010). Public
universities are a prime example <strong>of</strong> this, since <strong>the</strong> information provided focuses on ensuring financial
control <strong>of</strong> <strong>the</strong> organisation without paying attention to <strong>the</strong> needs <strong>of</strong> o<strong>the</strong>r groups <strong>of</strong> interest (Martín,
2006). Gray (2006) considers that <strong>the</strong> information supplied in traditional financial reports is not
enough, highlighting <strong>the</strong> need to establish more extensive communication and accountability
mechanisms which take into account <strong>the</strong> needs <strong>of</strong> <strong>the</strong> different groups <strong>of</strong> interest.
The need for universities to have a greater involvement with <strong>the</strong>ir wider community and <strong>the</strong> general
concern to ensure <strong>the</strong> informational transparency <strong>of</strong> <strong>the</strong>se institutions so as to satisfy <strong>the</strong> information
needs <strong>of</strong> <strong>the</strong>ir users makes it advisable to present information on intellectual capital. Below are some
<strong>of</strong> <strong>the</strong> reasons why it is a major necessity for <strong>the</strong>se institutions to start including information on
intellectual capital in <strong>the</strong>ir current accounting systems:
knowledge is <strong>the</strong> principal output and input <strong>of</strong> higher education institutions. Universities produce
knowledge, ei<strong>the</strong>r through scientific and technical research (<strong>the</strong> results <strong>of</strong> investigation,
publications etc.) or through teaching (students trained and productive relationships with <strong>the</strong>ir
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Ángel Tejada, Yolanda Ramírez and Agustín Baidez
stakeholders). Their most valuable resources also include <strong>the</strong>ir teachers, researchers,
administration and service staff, university governors and students, with all <strong>the</strong>ir organisational
relationships and routines (Warden, 2003; Leitner, 2004). It is true to say <strong>the</strong>n that universities’
input and output are largely intangible (Cañibano and Sánchez, 2008, p. 9).
<strong>the</strong> existence <strong>of</strong> continual demands for greater information and transparency about <strong>the</strong> use <strong>of</strong>
public money (Warden, 2003), mainly due to <strong>the</strong> fact that most <strong>of</strong> <strong>the</strong> funding for public
universities is handed over by <strong>the</strong> government (Sánchez and Elena, 2006).
<strong>the</strong> greater independence <strong>of</strong> universities regarding <strong>the</strong>ir organisation, management and budget
distribution requires greater social responsibility which will lead universities to prepare accounting
information to report to society as well as to facilitate and satisfy <strong>the</strong> information needs <strong>of</strong>
participants in <strong>the</strong> institution itself (González, 2003, p. 401).
<strong>the</strong> implementation <strong>of</strong> <strong>the</strong> European Space for Higher Education promotes <strong>the</strong> mobility <strong>of</strong> both
students and teachers within <strong>the</strong> territory <strong>of</strong> Europe, while at <strong>the</strong> same time encouraging both
collaboration and competition between universities. This environment <strong>of</strong> greater competition and
necessary collaboration means that <strong>the</strong>se institutions are now committed to accessing citizens
and transmitting relevant information on <strong>the</strong>ir activities. All this could well play an important role in
<strong>the</strong> decision-making processes <strong>of</strong> <strong>the</strong> users <strong>of</strong> <strong>the</strong> accounting information, for example in <strong>the</strong> case
<strong>of</strong> potential students choosing where to study.
lastly it is important to point out that universities are now facing growing competition due to lower
funding, which puts <strong>the</strong>m under greater pressure to communicate <strong>the</strong>ir results.
However, despite all this, in most countries <strong>the</strong>re exists no obligation or recommendation for
universities to present information on <strong>the</strong>ir intellectual capital. The only exception is in Austria, where
universities have been obliged to present a report on intellectual capital since 2007. In view <strong>of</strong> this
lack <strong>of</strong> obligation or simple recommendations from political authorities and university administrations
related to presenting information on intellectual capital, our study will explain <strong>the</strong> current informational
demands <strong>of</strong> university stakeholders, which will demonstrate <strong>the</strong> need for traditional financial
information to be complemented by o<strong>the</strong>r indicators related to <strong>the</strong> intangible aspects most demanded
by <strong>the</strong> different university users.
2. The intellectual capital in higher education institutions
Intellectual capital, when referred to a university, is a term used to cover all <strong>the</strong> institution’s non
tangible or non physical assets, including processes, capacity for innovation, patents, <strong>the</strong> tacit
knowledge <strong>of</strong> its members and <strong>the</strong>ir capacities, talents and skills, <strong>the</strong> recognition <strong>of</strong> society, its
network <strong>of</strong> collaborators and contacts, etc. The intellectual capital is <strong>the</strong> collection <strong>of</strong> intangibles which
“allows an organisation to transfer a collection <strong>of</strong> material, financial and human resources into a
system capable <strong>of</strong> creating value for <strong>the</strong> stakeholders” (European Commission, 2006, p. 4).
The components <strong>of</strong> a university’s intellectual capital have been categorised in varying ways although
undoubtedly it is <strong>the</strong> tripartite classification which is most widely accepted in specialised literature
(Ramírez et al., 2007; Leitner, 2004; Cañibano and Sánchez, 2008; Cañibano et al, 2002; etc.).
Intellectual capital is represented as being formed by <strong>the</strong> following three basic and closely interrelated
components:
Human Capital: it is <strong>the</strong> sum <strong>of</strong> <strong>the</strong> explicit and tacit knowledge <strong>of</strong> <strong>the</strong> university staff (teachers,
researchers, managers, administration and service staff) acquired through formal and non formal
education and refresher processes included in <strong>the</strong>ir activities.
Structural Capital: it is <strong>the</strong> explicit knowledge relating to <strong>the</strong> internal process <strong>of</strong> dissemination,
communication and management <strong>of</strong> <strong>the</strong> scientific and technical knowledge at <strong>the</strong> university.
Structural capital may be divided into:
Organisational Capital: this refers to <strong>the</strong> operational environment derived from <strong>the</strong>
interaction between research, management and organisation processes, organisational
routines, corporate culture and values, internal procedures, quality and <strong>the</strong> scope <strong>of</strong> <strong>the</strong>
information system, etc.
Technological Capital: this refers to <strong>the</strong> technological resources available at <strong>the</strong> university,
such as bibliographical and documentary resources, archives, technical developments,
patents, licences, s<strong>of</strong>tware, databases, etc.
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Ángel Tejada, Yolanda Ramírez and Agustín Baidez
Relational Capital: this refers to <strong>the</strong> extensive collection <strong>of</strong> economic, political and institutional
relations developed and upheld between <strong>the</strong> university and its non academic partners:
enterprises, non pr<strong>of</strong>it organisations, local government and society in general. It also includes <strong>the</strong>
perception o<strong>the</strong>rs have <strong>of</strong> <strong>the</strong> university: its image, appeal, reliability, etc.
Current accounting regulations restrict <strong>the</strong> recognition <strong>of</strong> intangibles. Only acquired intangible assets
may be reflected in an organisation’s balance sheet (Cañibano et al., 2008). For this reason
international regulatory bodies, like <strong>the</strong> Financial Accounting Standard Board (FASB, 2004) or <strong>the</strong>
<strong>International</strong> Accounting Standard Board (IASB, 2005) tend to recommend that additional information
on intangibles be published apart from financial statements so as to avoid <strong>the</strong> inclusion <strong>of</strong> accounting
criteria which could endanger <strong>the</strong> quality and reliability <strong>of</strong> <strong>the</strong> financial information. At national level
(Spain), <strong>the</strong> Commission <strong>of</strong> Accounting Experts <strong>of</strong> <strong>the</strong> Ministry <strong>of</strong> <strong>the</strong> Economy (ICAC, 2002)
recommends <strong>the</strong> voluntary drafting and publication <strong>of</strong> a report on intellectual capital, following <strong>the</strong>
guidelines <strong>of</strong> <strong>the</strong> Meritum Project (Cañibano et al., 2002), consisting <strong>of</strong> three parts: a vision <strong>of</strong> <strong>the</strong>
company, a summary <strong>of</strong> intangible resources and activities and a system <strong>of</strong> indicators.
Taking into account <strong>the</strong>se considerations, we believe that complementary non financial information is
<strong>the</strong> most appropriate form in which to supply information on universities’ non tangible elements. In our
opinion an improvement in university accounting systems would be achieved by <strong>the</strong> drafting and
presentation <strong>of</strong> a new report complementary to <strong>the</strong> current financial statements – <strong>the</strong> Intellectual
Capital Report. A set <strong>of</strong> indicators would show <strong>the</strong> information most demanded by different
stakeholders regarding <strong>the</strong> institution’s intangible resources. This intellectual capital report would
provide accounting information which is not only reliable but is also relevant for decision making by
<strong>the</strong> users <strong>of</strong> <strong>the</strong> accounting information.
The empirical study conducted for this study is a first step towards highlighting <strong>the</strong> intangible elements
most demanded by <strong>the</strong> different users about which universities should include information in <strong>the</strong>
intellectual capital report.
3. Empirical study
The need to guarantee <strong>the</strong> informational transparency <strong>of</strong> Spanish universities led us to consider
whe<strong>the</strong>r information on intellectual capital should be included in <strong>the</strong> universities’ accounting
information systems. To this end <strong>the</strong> decision was taken to seek out <strong>the</strong> opinion <strong>of</strong> <strong>the</strong> users <strong>of</strong>
university accounting information regarding <strong>the</strong> importance <strong>the</strong>y give to <strong>the</strong> availability <strong>of</strong> information
on intellectual capital as an aid to good decision making. A questionnaire was designed and sent to
every member <strong>of</strong> <strong>the</strong> Social Councils <strong>of</strong> Spain’s public universities. It was thought that <strong>the</strong>se
participants would provide a good example <strong>of</strong> <strong>the</strong> attitude <strong>of</strong> university information users since <strong>the</strong>y
represent <strong>the</strong> different social groups connected with universities.
After reviewing <strong>the</strong> literature dedicated to <strong>the</strong> analysis <strong>of</strong> stakeholders in universities (GASB, 1999;
González, 2003; Fernández and González, 2003; O’dwyer, 2005; Jongbloed et al., 2008; Okunoye et
al., 2008; Gaete, 2009; Larrán et al., 2010; etc.), a certain consensus was detected once <strong>the</strong> following
users <strong>of</strong> <strong>the</strong> accounting information <strong>of</strong> <strong>the</strong> higher education institutions were identified: organs <strong>of</strong>
political representation, organs <strong>of</strong> university government, <strong>the</strong> council <strong>of</strong> university coordination,
accreditation and quality assessment agencies, students, teaching and research staff, administration
and service staff, unions, finance community, private or public organisations with plans to employ
university graduates or to apply <strong>the</strong> research generated at <strong>the</strong> institution, <strong>the</strong> public administration, <strong>the</strong>
media, foundations or any o<strong>the</strong>r party interested in university activity.
3.1 Research objectives
The two fundamental objectives <strong>of</strong> <strong>the</strong> empirical study are:
Objective I: To learn <strong>the</strong> opinion <strong>of</strong> users <strong>of</strong> university accounting information regarding <strong>the</strong> need
for universities to publish information on <strong>the</strong>ir intellectual capital.
Objective II: To determine <strong>the</strong> extent to which different users are demanding information relating
to <strong>the</strong> intellectual capital <strong>of</strong> Spanish public universities in order to make <strong>the</strong> right decisions,
identifying which intangible resources are <strong>the</strong> most relevant for publication.
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3.2 Methodology and data collection
Ángel Tejada, Yolanda Ramírez and Agustín Baidez
In order to achieve <strong>the</strong> previously mentioned objectives, in mid-May 2009 an online questionnaire
requesting <strong>the</strong> opinion <strong>of</strong> <strong>the</strong> members <strong>of</strong> <strong>the</strong> Social Councils was sent to all Spanish public
universities. The methodology <strong>of</strong> <strong>the</strong> study is outlined in <strong>the</strong> data sheet attached in table 1.
Table 1: Study date sheet
Analysis group Users <strong>of</strong> accounting information from Spanish public universities
Universe Members <strong>of</strong> <strong>the</strong> Social Councils <strong>of</strong> Spain’s public universities
(1.094)
Size <strong>of</strong> sample 247
Information collection technique On line survey
Period <strong>of</strong> field work May-July 2009
Average time per survey 7 minutes 45 seconds
S<strong>of</strong>tware SPSS ® v. 17
Source: own information
3.2.1 Defining <strong>the</strong> population and selecting <strong>the</strong> sample
Two important factors were used to select <strong>the</strong> population to be studied: (1) members <strong>of</strong> <strong>the</strong> Social
Councils <strong>of</strong> Spain’s public universities were considered to provide a good sample <strong>of</strong> <strong>the</strong> feelings <strong>of</strong>
university information users, as <strong>the</strong>y represent <strong>the</strong> various social groups with links to <strong>the</strong> universities
(2) <strong>the</strong>se members are familiar with <strong>the</strong> accounting information published by <strong>the</strong> universities since
<strong>the</strong>y are responsible for approving <strong>the</strong> universities’ annual accounts.
Following <strong>the</strong> analysis <strong>of</strong> <strong>the</strong> composition <strong>of</strong> <strong>the</strong> Social Councils <strong>of</strong> Spain’s public universities, <strong>the</strong>
members were divided into <strong>the</strong>se seven groups: 1) university governors, 2) teaching and research
staff, 3) students, 4) administration and services staff, 5) representatives <strong>of</strong> business organisations, 6)
representatives <strong>of</strong> union organisations, 7) representatives <strong>of</strong> <strong>the</strong> public administrations.
The population to be studied was <strong>the</strong>refore composed <strong>of</strong> <strong>the</strong> 1.904 members <strong>of</strong> <strong>the</strong> Social Councils <strong>of</strong>
Spain’s public universities. Replies were received from 247 members, 22.57% <strong>of</strong> <strong>the</strong> total. The size <strong>of</strong>
<strong>the</strong> sample was considered sufficient, since in a binomial population <strong>the</strong> estimation error would be
5.37% for a reliability level <strong>of</strong> 95%. Consequently, <strong>the</strong> level <strong>of</strong> representativeness <strong>of</strong> our study was
guaranteed and could <strong>the</strong>refore be made extensive to all <strong>the</strong> users <strong>of</strong> <strong>the</strong> Spanish university system.
3.2.2 Information collection and treatment
The information was collected via an online survey. An email was sent to <strong>the</strong> members <strong>of</strong> <strong>the</strong> Spain’s
university Social Councils requesting <strong>the</strong> members to take part in our research. They were provided
with a link (http://encuestacapitalintelectual.tk/) which gave <strong>the</strong>m direct access to <strong>the</strong> survey and by
which <strong>the</strong>y could automatically send <strong>the</strong>ir replies.
The questionnaire consists <strong>of</strong> closed dichotomous questions combined with Likert scales, designed to
learn <strong>the</strong> opinion <strong>of</strong> accounting information users on <strong>the</strong> importance <strong>of</strong> Spanish public universities
publishing information on <strong>the</strong>ir intellectual capital.
The replies obtained were submitted to a descriptive analysis based on <strong>the</strong> characteristics <strong>of</strong> each <strong>of</strong>
<strong>the</strong> questions.
3.3 Analysis <strong>of</strong> <strong>the</strong> results <strong>of</strong> <strong>the</strong> empirical study
There now follow observations on <strong>the</strong> principal results obtained from <strong>the</strong> empirical study for each <strong>of</strong>
<strong>the</strong> objectives defined.
3.3.1 Objective 1: To learn <strong>the</strong> importance given to publishing information on intellectual capital
A great emphasis was found to exist on <strong>the</strong> need for universities to provide information on <strong>the</strong>ir
intellectual capital. A high percentage <strong>of</strong> those surveyed, 89.1%, were greatly interested in Spanish
public universities publishing information on <strong>the</strong>ir intellectual capital. They consider that if published, it
would increase <strong>the</strong> relevance <strong>of</strong> <strong>the</strong> information currently contained in <strong>the</strong> university accounting
model.
By user groups it was found that practically all <strong>the</strong> users – public administrations (89,4%), students
(100%), business organisations (86,2%), teaching and research staff (95,5%) and university
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Ángel Tejada, Yolanda Ramírez and Agustín Baidez
governors (97,4%), administration and services staff (66,7%) and union organisations (76,5%)-
consider that <strong>the</strong> presentation <strong>of</strong> information on universities’ intellectual capital increases <strong>the</strong>
relevance <strong>of</strong> <strong>the</strong> information contained in <strong>the</strong> current financial statements.
3.3.2 Objective 2: To know <strong>the</strong> extent <strong>of</strong> different users’ demand for information on intellectual capital
To achieve this objective those surveyed were asked to rate on a 5-point Likert scale <strong>the</strong> importance
<strong>the</strong>y gave to universities publishing information on <strong>the</strong> intangible elements corresponding to <strong>the</strong> three
blocks <strong>of</strong> intellectual capital <strong>of</strong> higher education institutions. In <strong>the</strong> scale 1 was “not at all important”
and 5 “very important.”
In order to identify <strong>the</strong> intangible items about which <strong>the</strong> users <strong>of</strong> university accounting information
believe it relevant or very relevant to publish information, it was decided that <strong>the</strong> items in question had
to be given an mean value and a median <strong>of</strong> 4 or more points, in conjunction with a minimum
percentile <strong>of</strong> 25 scoring 4 points and a minimum percentile <strong>of</strong> 75 <strong>of</strong> 5 points. The majority <strong>of</strong> <strong>the</strong> value
distribution should be concentrated in high values – approaching 5 points. It was also considered that
in order to classify any <strong>of</strong> <strong>the</strong> intangible items as essential to publish, apart from meeting <strong>the</strong> previous
requirements, it must achieve a mean value <strong>of</strong> over above 4.5.
Firstly it must be observed that in general a high mean value was awarded to publishing information
on intangible items relating to human, structural and relational capital. Specifically, <strong>the</strong> analysis <strong>of</strong> <strong>the</strong>
data obtained from <strong>the</strong> various statistics (mean, median, mode, range typical deviation, 25 and 75
percentiles) led to classifying <strong>the</strong> following intangible elements as essential to publish:
Human capital: academic and pr<strong>of</strong>essional qualifications <strong>of</strong> <strong>the</strong> teaching and research staff,
mobility <strong>of</strong> teachers and researchers, scientific productivity and teaching quality.
Structural capital: effort in innovation and improvement, intellectual property and management
quality.
Relational capital: graduate employability, relations with <strong>the</strong> business world, application and
dissemination <strong>of</strong> research, student satisfaction, <strong>the</strong> university’s image and collaboration with o<strong>the</strong>r
universities.
There now follow details <strong>of</strong> <strong>the</strong> particular demands relating to <strong>the</strong> intangible resources for each user
group <strong>of</strong> university accounting information, so that universities can begin to be aware <strong>of</strong> <strong>the</strong> need to
address <strong>the</strong>se demands.
University governors
This group shows great interest in <strong>the</strong> inclusion <strong>of</strong> information on intellectual capital in <strong>the</strong> university
information model. Specifically <strong>the</strong>y give great importance to publishing information on graduate
employability (4,64), relations with <strong>the</strong> business world (4,64), research capacities (quality <strong>of</strong> research,
participation in national and international projects, six-year research periods, etc) (4,56) and <strong>the</strong>
university’s regional, national and international reputation (4,56).
Teaching and research staff
The teaching and research staff are responsible for designing and producing <strong>the</strong> services and
products generated by <strong>the</strong> university: all types <strong>of</strong> training and research (basic, applied and
developmental).
The teaching and research staff’s demands are focused on aspects such as being informed <strong>of</strong> <strong>the</strong>
institution’s research capacities and competences (quality <strong>of</strong> research, participation in national and
international projects, percentages <strong>of</strong> doctors, six-year research periods, etc,) (4,68), teaching
capacities and competences (innovation in teaching, teaching quality, etc.) (4,64), <strong>the</strong> effectiveness <strong>of</strong>
<strong>the</strong> human capital (4,5) and <strong>the</strong> institution’s relations with o<strong>the</strong>r universities (4,59) and public and
private organisations (4,5).
Administration and services staff
The administration and services staff is ano<strong>the</strong>r group <strong>of</strong> users within <strong>the</strong> employees, responsible for
maintaining <strong>the</strong> university’s production structure. According to our results <strong>the</strong> administration and
services staff is basically interested in having access to information related to <strong>the</strong> effectiveness <strong>of</strong>
human capital (4,93), <strong>the</strong> pr<strong>of</strong>essional qualifications <strong>of</strong> <strong>the</strong> administration and services staff (4,93), <strong>the</strong>
university’s social and cultural commitment (4,73), management quality (4,8), <strong>the</strong> information system
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Ángel Tejada, Yolanda Ramírez and Agustín Baidez
(data bases, uses <strong>of</strong> ITC, etc.) (4,67), <strong>the</strong> institution’s image (5) and relations with society in general
(4,67).
Students
The students form a group with a double role. They are a product demanded by <strong>the</strong> business world
and <strong>the</strong>y are also <strong>the</strong> university’s customers, since <strong>the</strong>y seek and demand a certain level <strong>of</strong> training.
They are also able to choose <strong>the</strong> university where <strong>the</strong> training is received. A distinction can be made
between current, graduate and potential students.
This group’s foremost demand is that for quality training appropriate to current business demands.
The graduate students would like to have access to information which helps <strong>the</strong>m to assess <strong>the</strong> result
<strong>of</strong> <strong>the</strong>ir “purchase” – <strong>the</strong> quality <strong>of</strong> <strong>the</strong> knowledge and skills acquired during <strong>the</strong> training period and <strong>the</strong>
appropriateness <strong>of</strong> <strong>the</strong>se to <strong>the</strong> atmosphere in which <strong>the</strong>y are to develop <strong>the</strong>ir career. The potential
students, a relatively large percentage <strong>of</strong> <strong>the</strong> group, will analyse <strong>the</strong> possibility <strong>of</strong> access to
employment or <strong>of</strong> improving <strong>the</strong> job <strong>the</strong>y have thanks to <strong>the</strong> training received at <strong>the</strong> university, while
o<strong>the</strong>rs consider <strong>the</strong> quality <strong>of</strong> <strong>the</strong> training <strong>of</strong>fered as <strong>the</strong> only intention <strong>of</strong> improving <strong>the</strong>ir training and
progressing in <strong>the</strong>ir skills.
The results <strong>of</strong> our study allow us to conclude that students are basically interested in having access to
information related to <strong>the</strong> quality <strong>of</strong> teaching at universities (teaching capacities (5), <strong>the</strong> teaching and
research staff’s qualifications and training (5), <strong>the</strong> human capital’s effectiveness (4,92), teaching
productivity (4,58), <strong>the</strong> effectiveness <strong>of</strong> teaching (4,75), support services (4,58), etc.), employment
opportunities (5) or <strong>the</strong> level <strong>of</strong> satisfaction among graduates (4,83). They are also greatly interested
in access to information on <strong>the</strong> university’s image and reputation (4,92) and <strong>the</strong> relations between
students (4,5) and <strong>the</strong> business world (4,83). This last factor is <strong>of</strong> special interest since students
demand that <strong>the</strong> training <strong>the</strong>y receive is appropriate to business demands, as finding employment is
one <strong>of</strong> <strong>the</strong>ir main objectives. In fact our results show that students give a value <strong>of</strong> five points to access
to information on <strong>the</strong> employability <strong>of</strong> graduates from <strong>the</strong> different universities.
Business organisations
Business organisations feed on <strong>the</strong> dual product provided by universities: <strong>the</strong> research carried out
and <strong>the</strong> graduates who become part <strong>of</strong> <strong>the</strong> human capital. A distinction must be made between <strong>the</strong>
public or private organisations which recruit graduates and those which collaborate on scientific and
technological projects. In <strong>the</strong> first case <strong>the</strong>ir information demands are oriented towards <strong>the</strong> graduates’
qualifications and in <strong>the</strong> second case, <strong>the</strong> work developed by <strong>the</strong> universities and <strong>the</strong>ir groups in <strong>the</strong>
scientific and technical field.
The results <strong>of</strong> our research show that companies, as graduate-recruiting organisations, give great
importance to access to information on <strong>the</strong> employability <strong>of</strong> a certain university’s graduates (4,9),
student satisfaction (4,79), training activities (4,69), <strong>the</strong> effectiveness <strong>of</strong> teaching (4,69), teaching
capacities (4,55), regional, national and international reputation (4,79), etc. Business organisation, as
agents collaborating on scientific and technological projects developed by <strong>the</strong> universities, are
interested in access to information on technological capacity (total expenditure on technology,
computer programmes, etc.) (4,79), effort in innovation and improvement (expenditure on innovation,
staff, etc.) (4,76), intellectual property (4,76), publication <strong>of</strong> research (4,66), R&D installations and
material resources (4,62), research management (4,55), organisation and capacities and
competences (quality <strong>of</strong> research, participation in national and international projects, etc.) (4,52).
Union organisations
The unions are tools for <strong>the</strong> inclusion <strong>of</strong> workers in <strong>the</strong> defence <strong>of</strong> <strong>the</strong>ir interests and improvement <strong>of</strong>
<strong>the</strong>ir standard <strong>of</strong> living. The union organisations are responsible for ensuring that work and social
security laws are respected. So unions need information which helps <strong>the</strong>m to file complaints and
evaluate negotiating margins.
The results <strong>of</strong> our study show that <strong>the</strong> information considered most relevant by union organisations is
that related to student satisfaction (5), training activities (4,88), <strong>the</strong> pr<strong>of</strong>essional qualifications <strong>of</strong>
employees (% <strong>of</strong> civil servants, etc.) (4,65), capacity for teamwork (4,65), effectiveness <strong>of</strong> teaching
(4,59) and teaching management and organisation (teaching incentives, etc.) (4,65). They also value
access to information on <strong>the</strong> institution’s social and cultural commitment (4,59), environmental
responsibility (5), effort in innovation and improvement (expenditure on research, staff) (4,76) and
relations with society in general and with <strong>the</strong> business world (5).
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Public administrations
Ángel Tejada, Yolanda Ramírez and Agustín Baidez
Most <strong>of</strong> Spanish public university funding comes from public administrations – central and regional
government-, so universities have to justify <strong>the</strong> use <strong>the</strong>y make <strong>of</strong> <strong>the</strong>se resources. As long ago as
2002 <strong>the</strong> European Parliament insisted on <strong>the</strong> relationship between <strong>the</strong> funding <strong>of</strong> universities and <strong>the</strong>
accountability. It recommended that governments with competences for university matters should give
public universities access to <strong>the</strong> resources needed to guarantee <strong>the</strong> quality <strong>of</strong> teaching and research.
Universities should <strong>the</strong>n exercise transparent management and provide information on <strong>the</strong>ir activities
and results achieved so citizens can decide if <strong>the</strong> universities meet <strong>the</strong>ir expectations (Council <strong>of</strong>
University Coordination, 2007, p. 9).
The results <strong>of</strong> our study allow us to conclude that, as well as <strong>the</strong> public administrations’ obvious
needs for information on <strong>the</strong> financial position and budget situation <strong>of</strong> <strong>the</strong> universities, as users <strong>the</strong>y
also demand extensive information on intellectual capital. They give great importance to access to
information on such aspects as <strong>the</strong> universities’ relations with <strong>the</strong> business world (4,77), graduate
employability (4,73), research capacities and competences (quality <strong>of</strong> research, participation in
national and international projects % <strong>of</strong> doctors, etc.) (4,65), <strong>the</strong> application and publishing <strong>of</strong>
research (dissemination <strong>of</strong> results, social appropriateness <strong>of</strong> research, etc.) (4,64), customer
satisfaction (4,63), teaching capacity and competence (4,58) and <strong>the</strong> institution’s effort in innovation
and improvement (4,58). They also consider <strong>of</strong> great relevance that universities publish information on
<strong>the</strong> academic and pr<strong>of</strong>essional qualifications <strong>of</strong> teaching and research staff (4,54), intellectual
property (4,54), management quality (4,53), teaching effectiveness (4,52), <strong>the</strong> institution’s image
(4,52), collaboration with o<strong>the</strong>r universities (4,52) and <strong>the</strong> management <strong>of</strong> research (4,5).
It can <strong>the</strong>refore be concluded that <strong>the</strong> users <strong>of</strong> university accounting information consider it key for
<strong>the</strong>ir decision processes that universities provide information on intellectual capital. Consequently
Spanish public universities should include relevant and comprehensible information on <strong>the</strong>ir principal
intangible items in <strong>the</strong>ir accounting information model.
4. Conclusions
In <strong>the</strong> current context <strong>of</strong> <strong>the</strong> knowledge society institutions <strong>of</strong> higher education have to deal with
numerous changes (<strong>the</strong> Bologna process, increase in global competition, <strong>the</strong> construction <strong>of</strong>
European research and higher education areas) which directly affect <strong>the</strong> conceptualisation <strong>of</strong> <strong>the</strong>
function <strong>of</strong> <strong>the</strong>se institutions and <strong>the</strong>ir accounting information model. This situation makes it necessary
to conduct a pr<strong>of</strong>ound reform and modernisation <strong>of</strong> <strong>the</strong> university system with regard to <strong>the</strong>
presentation <strong>of</strong> information owing to <strong>the</strong> growing need for universities to increase transparency and
<strong>the</strong> level <strong>of</strong> accountability delivered to <strong>the</strong>ir different stakeholders.
During this study it has become clear that <strong>the</strong> traditional information supplied by universities needs to
be extended to include information on intellectual capital. Giving users access to a type <strong>of</strong> information
relevant for good decision making constitutes a healthy exercise in transparency for universities. The
presentation <strong>of</strong> this new information means that <strong>the</strong> different users will be able to access reliable and
comparable information on <strong>the</strong> complete range <strong>of</strong> activities <strong>of</strong> <strong>the</strong> higher education institutions and
thus make valued judgements and take <strong>the</strong> corresponding decisions.
The results <strong>of</strong> <strong>the</strong> empirical study show that a large percentage <strong>of</strong> <strong>the</strong> respondents, 89.1%, consider it
essential that universities provide information on intellectual capital in order to make <strong>the</strong> current model
<strong>of</strong> university accounting information more relevant. The data obtained also show that <strong>the</strong>se
accounting information users think it highly important that universities publish information on <strong>the</strong>
various intangible resources relating to human, structural and relational capital. The following
intangible elements can be classified as essential:
Human capital: academic and pr<strong>of</strong>essional qualifications <strong>of</strong> <strong>the</strong> teaching and research staff,
mobility <strong>of</strong> teachers and researchers, scientific productivity and teaching quality.
Structural capital: effort in innovation and improvement, intellectual property and management
quality.
Relational capital: graduate employability, relations with <strong>the</strong> business world, application and
dissemination <strong>of</strong> research, student satisfaction, <strong>the</strong> university’s image and collaboration with o<strong>the</strong>r
universities.
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Lastly <strong>the</strong> specific demands on intangible elements <strong>of</strong> each <strong>of</strong> <strong>the</strong> different users <strong>of</strong> university
accounting information have been identified, which is <strong>the</strong>n a base for justifying <strong>the</strong> need to include this
information in <strong>the</strong> current university accounting model in <strong>the</strong> form <strong>of</strong> an intellectual capital report.
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554

Evaluating <strong>the</strong> Knowledge Sharing Performance <strong>of</strong> <strong>the</strong>
Prince <strong>of</strong> Songkla University Using a Hybrid MCDM Model
Thoedtida Thipparate
Department <strong>of</strong> Civil Engineering Prince <strong>of</strong> Songkla University, Kohong Hatyai,
Songkhla, Thailand
thoedtida.t@gmail.com
Abstract: Currently, it is acknowledged that having a preferred knowledge sharing may have an impact on
customer loyalty towards <strong>the</strong> firm. A good knowledge sharing also provides a powerful way <strong>of</strong> differentiating a
university from its competitors and to improve organizational performance. Organizational knowledge sharing
improves organizational performance and achieves competitive advantage. Although, Prince <strong>of</strong> Songkla
University has developed several strategies to enhance <strong>the</strong> knowledge sharing performance, knowledge sharing
is <strong>of</strong>ten not induced successfully. Knowledge sharing is a vague concept that is difficult to measure quantitatively.
Therefore, this paper proposed a hybrid MCDM model to evaluate knowledge sharing performance. The
knowledge sharing performance level presents <strong>the</strong> performance ratings <strong>of</strong> <strong>the</strong> interdependent sub-attributes in
each attribute. Fuzzy numbers are used to cope with uncertainties associated with <strong>the</strong> data collected. Then, <strong>the</strong>
analytic hierarchy process (AHP) is adopted to determine <strong>the</strong> relative weights linking each independent common
factor. Finally, a simple additive weight (SAW) method is used to evaluate knowledge sharing performance. A
study <strong>of</strong> five campuses in Prince <strong>of</strong> Songkla University is conducted for verification. The university can use
results <strong>of</strong> this study to improve organizational performance and develop more appropriate and applicable
strategies to fulfill customers’ needs by enhancing organizational knowledge sharing.
Keywords: knowledge sharing; Analytical Hierarchy Process; Fuzzy, AHP; Multiple Criteria Decision-Making;
MCDM
1. Introduction
Knowledge management entails <strong>the</strong> sharing <strong>of</strong> knowledge and <strong>the</strong> transforming <strong>of</strong> it into practice.
According to Mason and Pauleen’s (2003) qualitative study, ‘‘sharing’’ is <strong>the</strong> single most important
factor in knowledge management implementation. Some research has also analyzed <strong>the</strong> factors
determining <strong>the</strong> degree <strong>of</strong> an individual’s engagement in intra-organizational knowledge sharing, such
as his or her personality, willingness, and organizational commitment (Cabrera, Collins, & Salgado,
2006; Foss & Pedersen, 2002). Studies <strong>of</strong> <strong>the</strong> factors affecting knowledge sharing have identified a
number <strong>of</strong> different variables, such as technologies, motivation, leadership and collaborative culture
and organizational and communicational climate (Malhotra & Majchrzak, 2004; Ardichvili, Page, &
Wentling, 2003; Yang, 2007; M<strong>of</strong>fett, McAdam, & Parkinson, 2003). In <strong>the</strong> knowledge-based
economy, a knowledge sharing is a mental picture <strong>of</strong> a university held by its customers, what comes
to mind when one sees or hears <strong>the</strong> corporate name. Knowledge sharing and reputation used to be
ra<strong>the</strong>r vague concepts that were perceived to be, at best, <strong>of</strong> peripheral concern to senior
management. Today, however, an increasing number <strong>of</strong> astute executives recognize <strong>the</strong>m as critical
corporate assets that are directly linked to competitive success. Ruyter and Wetzels (2000) suggest
that <strong>the</strong> knowledge sharing is <strong>the</strong> brand extension that is particularly important for <strong>the</strong> service industry
and could heavily influence customers’ buying behaviors. Thai Universities, for instance, in addition to
having a visible knowledge sharing in <strong>the</strong> Chulalongkorn University, has an admirable worldwide
reputation for high turnover and an excellent performance record and has become <strong>the</strong> benchmark <strong>of</strong> a
successful educational business. Most companies in <strong>the</strong> service industry probably view <strong>the</strong>mselves
as being in <strong>the</strong> business <strong>of</strong> creating outstanding experiences for <strong>the</strong>ir customers. In most cases,
however, luxury ornament, cuisine, comfortable amenities, and service alone are no longer sufficient
for securing a competitive advantage (Campbell and Verbeke, 2004). A strong positive knowledge
sharing with <strong>the</strong> general public is becoming a necessity, and can be advantageous to <strong>the</strong> firm in o<strong>the</strong>r
ways. J.P. Morgan, Merck, Micros<strong>of</strong>t, IBM, and Hewlett-Packard, for instance, have traditionally
attracted top notch job applicants because <strong>of</strong> <strong>the</strong>ir sterling reputation. It is also widely believed that a
favorable reputation in <strong>the</strong> eyes <strong>of</strong> employees can be a prime causal factor <strong>of</strong> high morale and
productivity (Gray and Balmer, 1998).
Although <strong>the</strong> importance <strong>of</strong> knowledge sharing is widely acknowledged, many managers are more
comfortable dealing with quantitative data than with knowledge sharing considerations. A knowledge
sharing is intangible, subjective, transitory, and very personal. As a result, knowledge sharing
management, if attempted at all, is <strong>of</strong>ten performed in a limited and uncoordinated fashion.
Knowledge sharing related decisions are made in isolated and piecemeal fashion, with little effort and
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Thoedtida Thipparate
ability brought to bear in formulating an organized, strategic approach. Moreover, because knowledge
sharing is considered as <strong>the</strong> global outcome <strong>of</strong> a credentialing mechanism, its level <strong>of</strong> abstraction
may be high; consequently, its conceptualization is complex and difficult to measure. Analyzing this
concept is, <strong>the</strong>refore, a challenging task, particularly in <strong>the</strong> context <strong>of</strong> university whose products are
essentially intangible. A review <strong>of</strong> <strong>the</strong> research to date reveals few quantitative models regarding
knowledge sharing. This paper is to provide a hybrid Multiple Criteria Decision-Making (MCDM) model
with a set <strong>of</strong> evaluating criteria to form a knowledge sharing management system. A non-additive
hybrid MCDM approach is taken into consideration that <strong>the</strong> interdependence between criteria can
quantitatively measure knowledge sharing and reputation. The results can help managers develop
strategies to enhance <strong>the</strong> university’s position. The Prince <strong>of</strong> Songkla University was founded in 1968,
and in <strong>the</strong> forty-two since has established itself as one <strong>of</strong> <strong>the</strong> Thai’s leading universities regularly
featuring in <strong>the</strong> top ten <strong>of</strong> <strong>the</strong> various league tables constructed by <strong>the</strong> media (e.g. webometrics). This
paper presents an application <strong>of</strong> <strong>the</strong> proposed hybrid MCDM model in <strong>the</strong> evaluation <strong>of</strong> <strong>the</strong>
knowledge sharing performance <strong>of</strong> <strong>the</strong> Prince <strong>of</strong> Songkla University.
The rest <strong>of</strong> this paper is structured as follows: Section 2 presents <strong>the</strong> fuzzy measure
extracts some important attributes <strong>of</strong> knowledge sharing from <strong>the</strong> literature review and through a
survey. In Section 3, <strong>the</strong> hybrid MCDM model using <strong>the</strong> fuzzy computaion is constructed, and <strong>the</strong>
resolution steps <strong>of</strong> <strong>the</strong> proposed model are presented. In Section 4, an empirical example is used to
validate our model. Then, <strong>the</strong> result analyses and discussions are given in Section 5. Finally, Section
6 concludes <strong>the</strong> paper and provides suggestions.
2. The fuzzy measure
The proposed MCDM is a methodology in which subjective data <strong>of</strong> experts are transformed into
objective data using <strong>the</strong> fuzzy <strong>the</strong>ory. Let ri be <strong>the</strong> fuzzy value for <strong>the</strong> ith criterion, i = 1, 2, ... ,n.
There are p persons in <strong>the</strong> decision-making group who are usually from <strong>the</strong> company executives. As
different experts have different impacts on <strong>the</strong> final decision, a contribution factor (CF) is introduced
into <strong>the</strong> group decision-making process to distinguish an expert’s competence. CF will be allocated to
experts on <strong>the</strong> basis <strong>of</strong> <strong>the</strong>ir experience, knowledge and expertise. The kth expert E is assigned a
c c ∈ c c + ... + c = 1.
contribution factor , where [0,1], and
k k
1 + 2
p
Members in <strong>the</strong> decision group are asked to provide <strong>the</strong>ir judgments on <strong>the</strong> basis <strong>of</strong> <strong>the</strong>ir knowledge
and expertise for each criterion. The present study proposes to use STFN proposed by Zeng et al.
(2007) to normalize <strong>the</strong> fuzzy evaluation methods. The conversion procedure is discussed as follows.
2.1 Convert preference into STFN for a fuzzy value
This section is to present how to replace a linguistic value obtained from each expert’s evaluation by a
fuzzy number. This process is called: fuzzification. Let U be <strong>the</strong> universe <strong>of</strong> discourse, U = [ 0,
u]
* l r s
u A = ( a , a , a , a
l r s u
0 ≤ a ≤ a ≤ a ≤ a and its membership function is shown as Eq. (1) .
where is an integer number. A STFN can be defined as , where
l r l
l
r
⎧(
x − a ) ( a − a )
for a ≤ x ≤ a
⎪
r
s
⎪1
for a ≤ x ≤ a
( x)
= ⎨ u
u s
s
u
⎪(
a − x)
/( a − a )
for a ≤ x ≤ a
⎪
⎩0 for o<strong>the</strong>rwise
*
u A
(1)
To deal with <strong>the</strong> uncertainties involved or <strong>the</strong> criterion which is quantitative immeasurable, a linguistic
term or a fuzzy number is used to represent <strong>the</strong> criterion. For <strong>the</strong> fuzzy input values, <strong>the</strong> conversion is
l r s u
r s
determined based on a , a , a , and a . When a = a , a SFTN becomes a triangular fuzzy
number. The expert can directly input a trapezoidal fuzzy number. The choice among <strong>the</strong> different
556
k
u
)

Thoedtida Thipparate
evaluation methods is dependent on <strong>the</strong> level <strong>of</strong> confidence among <strong>the</strong> different experts and on <strong>the</strong>
individual’s preference. As a rule <strong>of</strong> thumb, if adequate information is obtained and <strong>the</strong> criterion is
quantitative measurable, an expert is likely to provide a precise numerical value or a possible range <strong>of</strong>
numerical values. For <strong>the</strong> precise value, a STFN is a numerical value, . In
l
a =
addition, <strong>the</strong> expert can give a range <strong>of</strong> numerical which is and a .
2.2 Aggregate experts’ evaluations
S
E
k
a
r
i
s
l r s
a = a = a =
u
Let be <strong>the</strong> value <strong>of</strong> criterion i evaluated by expert . Each value represents a preference
ik
provided by an expert in <strong>the</strong> decision group on <strong>the</strong> basis <strong>of</strong> available information and subjective
judgments.
S n
*
i
Let ,1,2,…, , be <strong>the</strong> fuzzy aggregated score <strong>of</strong> <strong>the</strong> criterion . Then, is solved by applying
<strong>the</strong> fuzzy weighted trapezoidal averaging operator, which is defined by Eq. (2).
S *
i i
1 c S = × 1 Si 2 × c2
c S + ×
+ ik S + ip p
S
*
i
+… +…+
The resulting will be <strong>the</strong> value for criterion i . By convention, <strong>the</strong> criteria values are usually ranging
*
Si i
from 0 to 1. Thus, is converted to r by Eq. (3).
ri i
*
= S / u i = 1,
2,...,
n
U jth
*
i = 1,
2,...,
n
ith
= a
, (3)
In <strong>the</strong> present study, experts use a fuzzy number to measure <strong>the</strong> values <strong>of</strong> <strong>the</strong> 55 sub-criteria which
are clustered into five criteria groups, as shown in Table 1. Assume that <strong>the</strong>re are m universities for
<strong>the</strong> university evaluation process.
j
Let , j=1, 2, . . . ,m, be <strong>the</strong> university for <strong>the</strong> priority ranking and evaluation.
x ij
j = 1,
2,...,
m
jth
Let and be <strong>the</strong> fuzzy preference measure for <strong>the</strong> university with
respect to <strong>the</strong> criterion. Note that <strong>the</strong>re are different numbers <strong>of</strong> sub-criteria associated with <strong>the</strong>
different criteria.
3. Analytic Hierarchy Process (AHP)
An analytic hierarchy process (AHP) is one <strong>of</strong> <strong>the</strong> effective multicriteria decision making (MCDM)
analysis tools used in modeling unstructured problems. It has been used in a wide variety <strong>of</strong> practical
applications including politics, economic, social, and management sciences. The AHP presents <strong>the</strong>
evaluation criteria in <strong>the</strong> form <strong>of</strong> a hierarchical structure. Then, <strong>the</strong> decision makers will perform <strong>the</strong>
pairwise comparisons so as to represent <strong>the</strong> relative importance <strong>of</strong> each <strong>of</strong> <strong>the</strong> criteria or <strong>the</strong> degree
<strong>of</strong> preference <strong>of</strong> one factor over ano<strong>the</strong>r with respect to each criterion by using a ratio scale. The
eigenvector prioritization method is applied based on three principles: decomposition, comparative
judgement, and syn<strong>the</strong>sis <strong>of</strong> priorities. The decomposition principle is used to decompose <strong>the</strong> problem
into a hierarchy according to <strong>the</strong> requirement. The pairwise comparisons <strong>of</strong> <strong>the</strong> elements for a given
level are evaluated regarding <strong>the</strong>ir parent in <strong>the</strong> next-higher level based on <strong>the</strong> requirement <strong>of</strong> <strong>the</strong>
comparative judgement principle. Matrices presenting <strong>the</strong> pairwise comparisons are later used to
construct ratio scores representing <strong>the</strong> local priorities <strong>of</strong> elements in <strong>the</strong> level. A composite (global)
set <strong>of</strong> priorities for elements at <strong>the</strong> lowest level <strong>of</strong> <strong>the</strong> hierarchy is derived by combining <strong>the</strong> calculated
ratio-scale local priorities according to <strong>the</strong> requirement <strong>of</strong> <strong>the</strong> syn<strong>the</strong>sis <strong>of</strong> priorities. Because <strong>the</strong>
attributes <strong>of</strong> <strong>the</strong> university knowledge sharing entail diverse significance and meaning, each
considered attribute is not <strong>of</strong> equal importance. Therefore this study utilizes <strong>the</strong> AHP (Saaty, 1980)
approach to determine <strong>the</strong> criteria weights. Suppose <strong>the</strong>re is a set <strong>of</strong> p common factors. The common
557
S
*
i
a
u
(2)

Thoedtida Thipparate
factors are denoted as c c ,..., c and <strong>the</strong>ir weights as w If w w
T
w ,..., . = w , w ,..., w ) is
1 , 2 p
p , 1 2
( 1 2
given, a matrix A <strong>of</strong> <strong>the</strong> following equation can represent <strong>the</strong> pair-wise comparisons between common
factors.
( − max I)
w = 0
A λ (4)
Then one can find <strong>the</strong> eigenvector w with its λmax that satisfies Aw = λmaxw
. Saaty (1990) fur<strong>the</strong>r
used <strong>the</strong> consistency index (CI) as an indicator <strong>of</strong> ‘closeness to consistency’,
CI = ( λ max − p)
/( p −1)
. In general, <strong>the</strong> value <strong>of</strong> λ max can be accepted if CI is not greater than
0.1. After <strong>the</strong> integrated performance matrix is obtained from <strong>the</strong> fuzzy integral and <strong>the</strong> weight <strong>of</strong> each
common factor is derived from <strong>the</strong> AHP, <strong>the</strong> final aggregated value <strong>of</strong> <strong>the</strong> university knowledge
sharing and reputation index for each university can be calculated by <strong>the</strong> SAW method.
4. Identification <strong>of</strong> evaluation attributes for knowledge sharing performance
Typically, knowledge is not symmetrically distributed within an organization. The identification <strong>of</strong>
factors relating to knowledge sharing is difficultly performed. To develop competitive advantage <strong>of</strong> an
organization, identifying, capturing, sharing and accumulating knowledge become crucial (Husted &
Michailova, 2002; Michailova & Husted, 2003). Currently, performance implications <strong>of</strong> organizational
knowledge management/sharing processes and practices are more considered (Becerra-Fernandez
& Sabherwal, 2001; Hsu, 2006; Lee & Choi, 2003; Widen-Wulff & Soumi, 2007). However, knowledge
sharing is a test <strong>of</strong> human nature (Cabrera & Cabrera, 2002; French & Raven, 1959), and accessing
knowledge from colleagues and unknown o<strong>the</strong>rs can be difficult (Constant, Sproull, & Kiesler, 1996).
As a result, knowledge sharing within organizations is usually unsuccessful. The improvement <strong>of</strong>
organizational performance based on <strong>the</strong> knowledge capability cannot be achieved. Managerial
interventions are needed to encourage and facilitate systematic knowledge sharing (Hsu, 2006;
Husted & Michailova, 2002).
The products <strong>of</strong> <strong>the</strong> Prince <strong>of</strong> Songkla University are not physical items; instead <strong>the</strong>ir service,
reliability, and overall impression are subjective perceptions by <strong>the</strong>ir customers. Those knowledge
sharing practices will not only influence frequent customers to choose familiar universities for <strong>the</strong>ir
next search for employee, but <strong>the</strong>y can also heavily impact o<strong>the</strong>r potential customers’ choosing
behaviors through word-<strong>of</strong>-mouth, customers who have not yet had an experience with <strong>the</strong> university.
Because <strong>of</strong> <strong>the</strong> complexity and subjectivity <strong>of</strong> <strong>the</strong> knowledge sharing, <strong>the</strong>re is no universal agreement
among researchers and practitioners as to what exactly constitutes a knowledge sharing in <strong>the</strong>
university. Since customer impressions <strong>of</strong> knowledge sharing are shaped by different cultures,
evaluation attributes in one country may not fit in ano<strong>the</strong>r one. This suggests that elements <strong>of</strong>
knowledge sharing are culture dependent and should be properly selected to reflect <strong>the</strong> operational
environment and local diversities. In this paper, 5 university knowledge sharing related elements are
listed after consulting with managers <strong>of</strong> human resource departments <strong>of</strong> university and conducting a
thorough literature review (Davenport et al., 1998; Liebowitz & Chen, 2001; Sabherwal & Bercerra-
Fernandez, 2003) These 55 items include top management knowledge value, innovation strategy,
Organizational knowledge sharing practices, Organizational human capital, and perceived
performance.
Then, by means <strong>of</strong> a questionnaire, interviewers were asked to answer a series <strong>of</strong> questions. In <strong>the</strong>
questionnaire, respondents were asked to rate <strong>the</strong> importance <strong>of</strong> <strong>the</strong> 55 evaluation elements related
to university knowledge sharing on a 5-point scale ranging from 5 (extremely important) to 1 (no
effect), and <strong>the</strong>y could add some items that <strong>the</strong>y thought were important to an university’s knowledge
sharing. These elements were used to construct <strong>the</strong> evaluation system for knowledge sharing <strong>of</strong>
Prince <strong>of</strong> Songkla University. Figure 1 illustrates a hierarchical structure <strong>of</strong> <strong>the</strong> extracted 55 attributes
obtained from Hsu (2006).
5. 5. Evaluation <strong>of</strong> knowledge sharing
Normally, factors affecting knowledge sharing performance have some degree <strong>of</strong> uncertainty due to
<strong>the</strong> intangible nature <strong>of</strong> <strong>the</strong> knowledge sharing. Therefore, <strong>the</strong>se factors cannot be properly evaluated
by using only conventional measures. This section seeks to construct a model for evaluating
knowledge sharing that considers <strong>the</strong> vague characteristics <strong>of</strong> attributes.
558
p

Thoedtida Thipparate
The proposed hybrid MCDM model is composed <strong>of</strong> four steps as follow. First, literature review and
interview are used to extract t independent factors to form a hierarchical system based on considered
t attributes. Second, <strong>the</strong> fuzzy number is applied to evaluate <strong>the</strong> performance <strong>of</strong> attributes. Third, a
pair wise comparative approach (AHP) is used to determine <strong>the</strong> relative weights between each
attribute. Finally, <strong>the</strong> SAW method is applied to find <strong>the</strong> knowledge sharing levels. Figure 2 presents
<strong>the</strong> evaluation procedure.
By using data obtained from literature review and interview, <strong>the</strong> 55 evaluation elements related to
university
knowledge sharing were identified. Table 1 illustrates <strong>the</strong> extracted 5 attributes including: 1)
top management knowledge values, 2) innovation strategy, 3) organizational knowledge sharing
practices, 4) organizational human capital, and 5) perceived performance. 55 sub-attributes and <strong>the</strong>ir
descriptions are also presented in Figure 1. The assessment hierarchy system is shown in Figure 2.
The sub-attributes are determined by experts from a university. The experts conducted <strong>the</strong>
questionnaire survey for fuzzy values. The experts have different CF to <strong>the</strong> decision process. The
senior managers have <strong>the</strong> higher value <strong>of</strong> CF. Experts evaluate <strong>the</strong> university rating using linguistic
variables. The linguistic variables <strong>of</strong> <strong>the</strong> university evaluation score system are defined as very low
(VL), low (L), middle (M), high (H) and very high (VH). The trapezoidal fuzzy numbers associated with
<strong>the</strong> linguistic variables for sub-criteria evaluation are constructed: very low (0,0,1,2), low (1,2,3,4),
middle (3,4,5,6), high (5,6,7,8) and very high (7,8,9,10). The score system is constructed by
trapezoidal membership function. All performance measures are converted into STFNs as defined in
Eq. (1). The resulting STFNs are <strong>the</strong> results <strong>of</strong> group decision-making. For each criterion, its
associated STFNs from <strong>the</strong> experts are <strong>the</strong>n aggregated by Eq. (2). It is <strong>the</strong>n normalized into <strong>the</strong>
range between 0 and 1 by Eq. (3). The resulting criteria values from <strong>the</strong> group decision-making
process can be obtained. The average score <strong>of</strong> <strong>the</strong> university for five criteria is <strong>the</strong>n calculated to
obtain <strong>the</strong> calculated performance, as shown in Table 1. In addition, to obtain <strong>the</strong> relative weights <strong>of</strong>
each criterion, <strong>the</strong> analytical hierarchy process is applied.
Using <strong>the</strong> calculated performance data <strong>of</strong> <strong>the</strong> Prince <strong>of</strong> Songkhla
University and <strong>the</strong> weight <strong>of</strong> each
criterion
(Table 1), <strong>the</strong> university knowledge sharing for <strong>the</strong> university is calculated by SAW method.
By <strong>the</strong> adoption <strong>of</strong> <strong>the</strong> proposed methodology, <strong>the</strong> top management can steer <strong>the</strong> knowledge sharing
improvement through <strong>the</strong> inputs to <strong>the</strong> criteria decision. The expert stands at <strong>the</strong> position to make <strong>the</strong>
priority decisions for <strong>the</strong> sub-criteria. The overall evaluation process is stemmed from identified
criteria; thus, <strong>the</strong> implementation <strong>of</strong> <strong>the</strong> evaluated universities will also promote <strong>the</strong> management
target to pursue learning organization.
Table 1 Result for SAW
University Top Innovation Organizational Organizational Perceived
management
strategy knowledge human capital performance
knowledge sharing
Weight 0.20 0.18 0.21 0.21 0.20
∑r1.nWt1.n_ 4.122 3.336 4.588 4.297 3.765
6. Conclusion
Factors differently having
impact on he importance <strong>of</strong> knowledge sharing were determined in this
study. These factors
became <strong>the</strong> criteria for quantitatively evaluating <strong>the</strong> knowledge sharing
performance. Table 1 shows <strong>the</strong> relative weight <strong>of</strong> <strong>the</strong> five criteria <strong>of</strong> <strong>the</strong> university knowledge sharing,
which are obtained from <strong>the</strong> AHP. These criteria were rated by using a 5-point scale ranging from 5 to
1. The average score <strong>of</strong> sub-criteria associated with each criterion can be calculated by fuzzy
computation to obtain a performance. The questionnaire survey was used to collect <strong>the</strong> fuzzy values.
Ranked by weight, <strong>the</strong> five attributes are as follows: top management knowledge (0.20), innovation
strategy (0.18), organizational knowledge sharing (0.21), organizational human capital (0.21) and
perceived performance (0.20). It is evident that organizational knowledge sharing and organizational
human capital significantly support organizational performance. This suggests that <strong>the</strong> university
should concentrate on <strong>the</strong> organizational knowledge sharing and organizational human capital, which
is <strong>the</strong> support <strong>of</strong> <strong>the</strong> excellent organization. Knowledge sharing practices improve organizational
performance through <strong>the</strong> development <strong>of</strong> human capital. For <strong>the</strong> considered university, innovation
strategy is not successfully applied for <strong>the</strong> implementation <strong>of</strong> organizational knowledge sharing
practices. An proactive strategy should perform before applying knowledge sharing practices so as to
lead <strong>the</strong>m.
559

Goal
Criteria
Sub-
criteria
1.Top management
knowledge values
1.1 Top
management
emphasizes
knowledge
sharing within
<strong>the</strong> company.
1.2 Top
management
believes that
its support is
key to
employee
knowledge
sharing.
1.3 Top
management
sees through
<strong>the</strong>
establishment
<strong>of</strong> knowledge
sharing
mechanisms in
<strong>the</strong> company.
1.4 Top
management
regards
knowledge
sharing
policies and
practices as
contributing to
company
performance.
1.5 Top
management
regards
knowledge
sharing
policies and
practices as
helpful for <strong>the</strong>
company to
earn pr<strong>of</strong>its.
1.6 Top
management
regards firmspecific
knowledge as a
source <strong>of</strong>
competitive
advantage.
Thoedtida Thipparate
Innovation
strategy
2.1 The
company sees
innovation as
<strong>the</strong> key to
perpetual
survival.
2.2 The
company
keeps
launching
new products
or services.
2.3 The
company is
one step
ahead <strong>of</strong> its
major
competitors
in introducing
its products
or services to
<strong>the</strong> market.
2.4 If <strong>the</strong>
company is
one step
ahead <strong>of</strong> its
major
competitors
in introducing
its products
or services to
<strong>the</strong> market,
usually <strong>the</strong>se
products or
services make
good pr<strong>of</strong>its.
2.5 The
company
pursues its
own
successful
business
model.
2.6 The
company has
higher R& D
expenses as a
percentage <strong>of</strong>
contributions
than its
competitors.
Knowledge sharing performance
Organizational knowledge
sharing practices
3.1The
company’s
employees
identify
<strong>the</strong>mselves with
company values
and vision.
3.2 The
company’s
employees exert
<strong>the</strong>ir best efforts
to achieve
organizational
goals and
objectives.
3.3 The
company’s
employees are
better than those
<strong>of</strong> competitors at
innovation and
R&D.
3.4 The
company’s
employees are
better than those
<strong>of</strong> competitors at
reducing <strong>the</strong>
company’s
operating costs.
3.5 The
company’s
employees are
better than those
<strong>of</strong> competitors at
responding to
customer
demands.
3.6 The
company’s
employees
outperform
those <strong>of</strong>
competitors.
Organizational
human capital
4.1 The
company’s
employees
identify
<strong>the</strong>mselves
with company
values and
vision.
4.2 The
company’s
employees
exert <strong>the</strong>ir best
efforts to
achieve
organizational
goals and
objectives.
4.3 The
company’s
employees are
better than
those <strong>of</strong>
competitors at
innovation and
R&D.
4.4 The
company’s
employees are
better than
those <strong>of</strong>
competitors at
reducing <strong>the</strong>
company’s
operating
costs.
4.5 The
company’s
employees are
better than
those <strong>of</strong>
competitors at
responding to
customer
demands.
4.6 The
company’s
employees
outperform
those <strong>of</strong>
competitors.
Perceived
performance
5.1 The
company has
higher longrun
effectiveness
than its
competitors.
5.2 The
company has
higher growth
prospect in
contributions
than its
competitors.
5.3 The
company’s
employees
have higher
job
satisfaction
than those <strong>of</strong>
competitors.
5.4 The
company’s
employees
have higher
productivity
than those <strong>of</strong>
competitors.
5.5 The
company has
better
goodwill than
its
competitors.
5.6 The
company has
better quality
products or
services than
its
competitors.
Figure 1 Hierarchical structure <strong>of</strong> university knowledge sharing
The values top managers associated with knowledge are important for <strong>the</strong> implementation <strong>of</strong>
organizational knowledge sharing practices. Organizational cultural
factors are also associated with
organizational knowledge creation processes. However, values are less than <strong>the</strong> sharing activities
and human relationships. The final aggregated knowledge sharing performance can be obtained by
applying <strong>the</strong> proposed hybrid MCDM approach. The results can be used to improve <strong>the</strong> knowledge
sharing in order to differentiate a university from its competitors and it can heavily influence <strong>the</strong>
behaviors <strong>of</strong> <strong>the</strong> customers in selecting <strong>the</strong> university. The proposed approach can handle an
intangible and vague concept <strong>of</strong> knowledge sharing that is difficult to measure. The fuzzy measure
560

Thoedtida Thipparate
and fuzzy integral were used for evaluating determination criteria. Thus, <strong>the</strong> knowledge sharing
performance <strong>of</strong> a university can be quantitatively measured.
SAW
AHP
∑r1.nWt1.n_Top
management knowledge
values
Wt1.1 Top
management
emphasizes
knowledge
sharing within
<strong>the</strong> company.
Wt1.2 Top
management
believes that
its support is
key to
employee
knowledge
sharing.
Wt1.3 Top
management
sees through
<strong>the</strong>
establishment
<strong>of</strong> knowledge
sharing
mechanisms in
<strong>the</strong> company.
Wt1.4 Top
management
regards
knowledge
sharing
policies and
practices as
contributing to
company
performance.
Wt1.5 Top
management
regards
knowledge
sharing
policies and
practices as
helpful for <strong>the</strong>
company to
earn pr<strong>of</strong>its.
Wt1.6 Top
management
regards firmspecific
knowledge as a
source <strong>of</strong>
competitive
advantage.
∑∑r1.nWt1.n_Knowledge sharing performance
∑r1.nWt1.n_Inno
vation strategy
Wt2.1 The
company sees
innovation as
<strong>the</strong> key to
perpetual
survival.
Wt2.2 The
company
keeps
launching
new products
or services.
Wt2.3 The
company is
one step
ahead <strong>of</strong> its
major
competitors
in introducing
its products
or services to
<strong>the</strong> market.
Wt2.4 If <strong>the</strong>
company is
one step
ahead <strong>of</strong> its
major
competitors
in introducing
its products
or services to
<strong>the</strong> market,
usually <strong>the</strong>se
products or
services make
good pr<strong>of</strong>its.
Wt2.5 The
company
pursues its
own
successful
business
model.
Wt2.6 The
company has
higher R& D
expenses as a
percentage <strong>of</strong>
contributions
than its
competitors.
Rating r 1 . n 2 n
Survey
Figure 2 Evaluation procedures
r .
x .
x 1 . n 2 n
∑r1.nWt1.n_Organizatio
nal knowledge sharing
practices
Wt3.1The
company’s
employees
identify
<strong>the</strong>mselves with
company values
and vision.
Wt3.2 The
company’s
employees exert
<strong>the</strong>ir best efforts
to achieve
organizational
goals and
objectives.
Wt3.3 The
company’s
employees are
better than those
<strong>of</strong> competitors at
innovation and
R&D.
Wt3.4 The
company’s
employees are
better than those
<strong>of</strong> competitors at
reducing <strong>the</strong>
company’s
operating costs.
Wt3.5 The
company’s
employees are
better than those
<strong>of</strong> competitors at
responding to
customer
demands.
Wt3.6 The
company’s
employees
outperform
those <strong>of</strong>
competitors.
561
r 3.
n
x 3.
n
∑r1.nWt1.n_Organ
izational human
capital
Wt4.1 The
company’s
employees
identify
<strong>the</strong>mselves
with company
values and
vision.
Wt4.2 The
company’s
employees
exert <strong>the</strong>ir best
efforts to
achieve
organizational
goals and
objectives.
Wt4.3 The
company’s
employees are
better than
those <strong>of</strong>
competitors at
innovation and
R&D.
Wt4.4 The
company’s
employees are
better than
those <strong>of</strong>
competitors at
reducing <strong>the</strong>
company’s
operating
costs.
Wt4.5 The
company’s
employees are
better than
those <strong>of</strong>
competitors at
responding to
customer
demands.
Wt4.6 The
company’s
employees
outperform
those <strong>of</strong>
competitors.
r 4.
n
x 4.
n
∑r1.nWt1.n_Perc
eived
performance
Wt5.1 The
company has
higher longrun
effectiveness
than its
competitors.
Wt5.2 The
company has
higher growth
prospect in
contributions
than its
competitors.
Wt5.3 The
company’s
employees
have higher
job
satisfaction
than those <strong>of</strong>
competitors.
Wt5.4 The
company’s
employees
have higher
productivity
than those <strong>of</strong>
competitors.
Wt5.5 The
company has
better
goodwill than
its
competitors.
Wt5.6 The
company has
better quality
products or
services than
its
competitors.
r 5 . n
x 5.
n

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562

The Competence Approach to <strong>the</strong> Creation and Updating <strong>of</strong>
Academic Knowledge in <strong>the</strong> Smart Economy
Natalia Tikhomirova, Vladimir Tikhomirov, Valentina Maksimova and Yury
Telnov
Moscow State University <strong>of</strong> Economics, Statistics and Informatics (Russia)
VMaksimova@mesi.ru
YTelnov@mesi.ru
Abstract: At present <strong>the</strong>re is a change <strong>of</strong> paradigms in <strong>the</strong> higher education system. The universities need to
respond to challenges within <strong>the</strong> ongoing global processes and emerging Smart economy. The high quality and
assurance <strong>of</strong> pedagogical, research and innovative activities in universities promotes <strong>the</strong> economic, social and
cultural development <strong>of</strong> nations. The universities can successfully steer and implement innovations in <strong>the</strong>
educational process if <strong>the</strong>ir faculties adapt <strong>the</strong> methods <strong>of</strong> teaching and learning to changing environment and
create a knowledge culture as a competitive asset. The requirement for intellectual economic activity based on
knowledge management and building smart economy engenders <strong>the</strong> development <strong>of</strong> learner's competences to
enhance <strong>the</strong> skills <strong>of</strong> continuous updating knowledge, to raise self-learning, to develop <strong>the</strong> capabilities <strong>of</strong>
capturing knowledge from diverse knowledge sources, to adequately solve problems in practice. The
abovementioned paradigms rest upon <strong>the</strong> underlying principles <strong>of</strong> <strong>the</strong> Bologna reforms in <strong>the</strong> higher education
system. The key instrument in achieving <strong>the</strong> Bologna goals is a competence approach, that implies not only <strong>the</strong>
specific requirements to <strong>the</strong> content (what knowledge, skills and attitudes graduates should possess) but also to
a behavior component (abilities to use knowledge and skills in decision making within pr<strong>of</strong>essional settings). At
present competences are broadly treated as <strong>the</strong> incentives and readiness to use knowledge, skills and personal
attitudes to successfully perform <strong>the</strong> tasks assigned. The paper aims at developing <strong>the</strong> principles and methods <strong>of</strong>
building <strong>the</strong> models <strong>of</strong> <strong>the</strong> pr<strong>of</strong>essional competences in line with <strong>the</strong> adequate pr<strong>of</strong>ile-oriented study programs
based on <strong>the</strong> academic knowledge management. The study develops a <strong>the</strong>oretical framework for <strong>the</strong>
methodology <strong>of</strong> generating pr<strong>of</strong>essional competences needed to create, develop and update academic
knowledge. A specific research focus is placed on developing <strong>the</strong> methods <strong>of</strong> shaping pr<strong>of</strong>essional competences
and implementing <strong>the</strong>m into <strong>the</strong> study programs and on <strong>the</strong> mechanism <strong>of</strong> adapting education to <strong>the</strong> challenges
<strong>of</strong> smart economy by using eLearning and smart technologies.
Keywords: competences, eLearning, smart economy, management <strong>of</strong> academic knowledge, competence
models, generic and specific competences
1. Introduction
Many countries are taking efforts and endeavors to reform <strong>the</strong>ir higher education system in line with
globalization, internationalization and building a smart economy.
Higher education is placed at <strong>the</strong> centre <strong>of</strong> national competitive agendas and higher education
institutions are increasingly reviewed as economic engines for ensuring knowledge production
through research and innovation, <strong>the</strong> high-quality education and continuous up-skilling <strong>of</strong> <strong>the</strong> work
place (Trends 2010, 2010).
Continental Europe is carrying out <strong>the</strong> reconstruction <strong>of</strong> its higher education system in <strong>the</strong> prism <strong>of</strong> <strong>the</strong>
Lisbon strategy, <strong>the</strong> Bologna Process and <strong>the</strong> successor strategy “Europe 2020” with <strong>the</strong> aim to
transform Europe into <strong>the</strong> most competitive knowledge economy in <strong>the</strong> world, capable <strong>of</strong> sustainable
economic growth (European Commission, 2010). In Russia <strong>the</strong> higher education system faces <strong>the</strong>
goal <strong>of</strong> modernization to respond to changes and challenges in today`s development <strong>of</strong> a society.
The higher education institutions nowadays call for <strong>the</strong> preparation <strong>of</strong> graduates to work in emerging
smart economy. The latter is a high productivity economy that facilitates a sustainable economic
growth, provides a high-quality environment, energy efficiency, innovative infrastructure, and social
stability. The attributive characteristics <strong>of</strong> <strong>the</strong> smart economy are intellectual workers, innovative
culture <strong>of</strong> entrepreneurship, effective infrastructure with smart grids, <strong>the</strong> development <strong>of</strong> <strong>the</strong> green
sector, innovative ecosystem. The objectives <strong>of</strong> <strong>the</strong> smart economy are to restore and retain a
sustainable economic growth after <strong>the</strong> distressing crisis, to sustain efficiency and effectiveness, to
promote innovative business environment, to compete globally, to generate and use new knowledge
for economic and social progress, to build a world class research system, to develop information and
knowledge - intensive sector and knowledge- intensive service industries. These objectives can be
achieved by mobilizing all <strong>the</strong> efforts <strong>of</strong> a country to develop <strong>the</strong> proper strategy in translating
563

Natalia Tikhomirova et al.
knowledge creation into economic return. The economic policy <strong>of</strong> transforming creative ideas into
innovative products, services and progress can be realized via <strong>the</strong> development <strong>of</strong> <strong>the</strong> adequate
programs in <strong>the</strong> universities to <strong>the</strong> students with adequate competences to implement smart
technologies in <strong>the</strong> new business and cultural environment (Tikhomirova N. , et al., 2011).
The goals <strong>of</strong> smart economy can be summarized at follows:
to restore and retain a sustainable economic growth after <strong>the</strong> distressing global crisis;
to provide high productivity;
to promote innovation business environment;
to generate and enhance new knowledge and ideas for economic and social progress;
to develop knowledge - intensive sector and industries;
to build a green economy and develop green ICT;
to provide social cohesion;
to create an innovative ecosystem;
to implement smart grid in all sectors <strong>of</strong> <strong>the</strong> economy.
The smart economy can be built by investment in human and intellectual capital, research and
development and innovation (Building Irish Smart Economy, 2008). The knowledge triangle
(integrating education, research and innovation) has great influence upon <strong>the</strong> universities’ policies.
The latter aim at encompassing <strong>the</strong> shift to student – centred learning, employability and long-life
learning.
The paradigm <strong>of</strong> student- centred learning implies <strong>the</strong> focus on cognitive abilities <strong>of</strong> students, <strong>the</strong>ir
pro-active learning, <strong>the</strong>ir participation in determining what is learned, <strong>the</strong>ir shared responsibility for
learning, <strong>the</strong>ir deeper understanding and critical thinking <strong>of</strong> study materials, personalized learning
paths (Trends 2010, 2010).
The characteristics <strong>of</strong> student-centered approach are: small groups, flexible and transparent learning
patterns, modifications, learning outcomes, problem based learning, integrated research and work
placement elements, disposition <strong>of</strong> physical space and availability <strong>of</strong> eLearning materials (Trends
2010, 2010). The student - centered learning aims at developing pr<strong>of</strong>essional competences to provide
a sufficient employability to graduates.
The student - centered learning along with o<strong>the</strong>r instruments supports <strong>the</strong> formation <strong>of</strong> graduates’
competences needed for adequate employability.
The notion <strong>of</strong> employability suggests <strong>the</strong> development <strong>of</strong> competences, skills and personal attitudes
which allow <strong>the</strong> graduates to attain career paths. Employability doesn`t mean only an idea <strong>of</strong> gaining
initial employment, but maintaining or obtaining new employments if required. Employability proposes
<strong>the</strong> capabilities to move self- sufficiently in <strong>the</strong> labor market environment to realize <strong>the</strong> potential <strong>of</strong>
knowledge and skills. The curricula <strong>of</strong> universities should pay particular attention to <strong>the</strong> creation <strong>of</strong>
environment that enhances entrepreneurship.
The vital element <strong>of</strong> <strong>the</strong> Bologna reforms is life-long strategy which entails <strong>the</strong> process <strong>of</strong> learning
from preschool till pension age period. It aims at enhancing <strong>the</strong> volume and quality <strong>of</strong> knowledge,
competences and qualifications with regard <strong>of</strong> meeting <strong>the</strong> requirements in <strong>the</strong> international and
national labor markets. The pr<strong>of</strong>essional-oriented competences can be successfully developed within
<strong>the</strong> framework <strong>of</strong> effective virtual learning environment on <strong>the</strong> principles <strong>of</strong> continuous knowledge
management.
2. The competence approach
The key instrument in achieving <strong>the</strong> Bologna goals and objectives is a competence approach (Crosier
D., Purser L., Smidt H. (2007).
The competence approach suggests that <strong>the</strong> students can obtain, develop and foster <strong>the</strong>ir
564

Natalia Tikhomirova et al.
competences during <strong>the</strong> process <strong>of</strong> learning in line with <strong>the</strong> adequate educational programs.
Competences can be formed in various course units and assessed at different stages.
The concept <strong>of</strong> “competence” is manifold and diversely defined and interpreted. The European and
world community hasn’t yet achieved <strong>the</strong> unified meaning, competence refers to a set <strong>of</strong> skills that an
individual must possess in order to be capable <strong>of</strong> satisfactorily performing a specified job. There is
continuing debate about its precise meaning (Cheong and Tsui, 2010). According to Weinert
“Competence is a roughly specialized system <strong>of</strong> abilities, pr<strong>of</strong>iciencies, or individual dispositions to
learn something successfully, to do something successfully, or to reach a specific goal” (Weinert,
1999. P. 44).
In <strong>the</strong> framework <strong>of</strong> competence awareness <strong>the</strong> term is “Any form <strong>of</strong> knowledge, skill, attitude, ability
or learning objective that can be described in a context <strong>of</strong> learning, education or training” (IEEE RCD,
2005; IMS RDCEO, 2002). In <strong>the</strong> method <strong>of</strong> educational engineering MISA competencies are defined
as statements that someone, and more generally some resource, can demonstrate <strong>the</strong> application <strong>of</strong>
a generic skill to some knowledge, with a certain degree <strong>of</strong> performance (Paquette, 2007).
Within <strong>the</strong> framework <strong>of</strong> <strong>the</strong> Tuning project competences are developed in a progressive way and can
be trained in a number <strong>of</strong> course units or modules at different stages <strong>of</strong> <strong>the</strong> program (Tuning
Educational Structures in Europe, 2003-2008). Competences are viewed in Tuning as a dynamic
combination <strong>of</strong> knowledge understanding, skills and abilities.
The competence approach suggests that students are to obtain and demonstrate generic and subject
specific competences. The generic competences are very important for preparing students for <strong>the</strong>ir
role in societal life. Tuning includes <strong>the</strong> following competences into generic:
Instrumental competences: cognitive, methodological, technological and linguistic abilities;
Interpersonal competences: individual abilities like social skills (social interaction and
cooperation);
System competences: abilities and skills concerning whole system (combination <strong>of</strong>
understanding, sensibility and knowledge; prior acquisition <strong>of</strong> instrumental and interpersonal
competences required).
The generic competences contain capacities for analysis and syn<strong>the</strong>sis, for solving problems,
applying knowledge in practice, working autonomously and in teams.
In our view a student from his/her pr<strong>of</strong>essional and societal position should develop <strong>the</strong> following set
<strong>of</strong> competences: subject specific competence, cognitive competence, e-competence, action
competence, time competence, socio-communicative competence, smart competence.
The key competence among <strong>the</strong> above mentioned ones is e-competence, which assures <strong>the</strong> process
<strong>of</strong> mastering all o<strong>the</strong>r competences.E-competence signifies a wide implementation <strong>of</strong> ICT in teaching,
learning and research processes. This competence is vital for enhancing <strong>the</strong> production and
transmission <strong>of</strong> new ideas and knowledge. E-competence is considered as an element <strong>of</strong> universities’
strategic objectives to sustainably implement eLearning into <strong>the</strong>ir institutional structures and work
processes (Schneckenberg, 2009). Some authors analyze <strong>the</strong> role <strong>of</strong> ICT in institutional innovation <strong>of</strong>
universities at two levels: <strong>the</strong> macro-level <strong>of</strong> innovation which describes <strong>the</strong> implementation <strong>of</strong> ICT in
organizational innovation strategies <strong>of</strong> universities and <strong>the</strong> micro-level which deals with <strong>the</strong> use <strong>of</strong>
new technologies in educational activities (Distance and ELearning in Transition, 2009). Erpenbeck
states that some problems with e-competence (experience-related and value-oriented learning
opportunities) can be solved within interiorization. The latter means <strong>the</strong> acquisition <strong>of</strong> rules, values
and norms under <strong>the</strong> influence <strong>of</strong> individual emotions and motivations. It requires social interaction,
problem solving and a high degree <strong>of</strong> au<strong>the</strong>nticity and collaboration in every learning situation
(Distance and ELearning in Transition, 2009).
The competence approach is an indispensable hallmark <strong>of</strong> educational standards and programs <strong>of</strong>
new generation in Russia which:
allows higher education institutions to orient study programs to practical needs <strong>of</strong> organizations
and regions;
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Natalia Tikhomirova et al.
provides <strong>the</strong> verification <strong>of</strong> students’ knowledge and skills in regard to solving pr<strong>of</strong>essional tasks
and problems;
facilitates <strong>the</strong> development <strong>of</strong> specific competences;
transforms a learner into an proactive actor <strong>of</strong> practice-oriented educational process.
3. The formation <strong>of</strong> pr<strong>of</strong>essional competences based on eLearning
The education system sometimes is behind <strong>the</strong> changes <strong>of</strong> qualifications requirements and
competences required in economy. As a result <strong>the</strong> graduates get knowledge and skills which are not
sufficient for successful performance at <strong>the</strong>ir working places. To impede a negative impact <strong>of</strong> this
factor on <strong>the</strong> educational process an emphasis should be shifted on updating knowledge in line with
<strong>the</strong> requirements <strong>of</strong> labor market and pr<strong>of</strong>essional competences. To this end electronic technologies
with eLearning as a key component <strong>of</strong> distance and blended learning will be helpful. ELearning opens
new challenging opportunities for creative and innovative teaching proceses. It places an emphasis
on active, technology-enhanced teaching and learning, student self-motivation and creativity,
collaborative work <strong>of</strong> students and teachers, realization <strong>of</strong> a new pedagogical potential in learning.
ELearning is gradually becoming an enabling factor for <strong>the</strong> efficient involvement <strong>of</strong> <strong>the</strong> competence
development in <strong>the</strong> educational process. ELearning suggests various methods and forms <strong>of</strong> studies
and new qualitative content and didactics.
eLearning is characterized with a member <strong>of</strong> advantages, <strong>the</strong> most significant are:
individual learning approach to a student;
learners’ self-organized cognitive activity;
team work on <strong>the</strong> principles <strong>of</strong> virtual communities.
eLearning differentiates two main didactic methods:
team work (American approach) implies a virtual variant <strong>of</strong> traditional study process in groups
(seminars, discussions) organized within <strong>the</strong> framework <strong>of</strong> videoconferences, asynchronous and
synchronous forums;
individual trajectory (European approach) orients leaners to both self-organized cognitive actions
and team work with electronic content. The interaction <strong>of</strong> students with a teacher and peers is
asynchronous through forum, e-mail, web-conferences.
The first method requires <strong>the</strong> preparation and organization <strong>of</strong> a study process in virtual class rooms
with an electronic content.
One <strong>of</strong> <strong>the</strong> basic components <strong>of</strong> electronic content is its personification character. The structure <strong>of</strong> econtent
orients a student to study a course independently and to capture updated knowledge on <strong>the</strong>
basis <strong>of</strong> logics embedded in <strong>the</strong> electronic scenario and to develop research skills.
The study <strong>of</strong> a discipline via an electronic course implies a learner to work in electronic environment
since proceeding to a new <strong>the</strong>me is linked with a set <strong>of</strong> tasks and tests to be assessed by a teacher.
This procedure is supported by <strong>the</strong> point-rating system.
The electronic university uses to <strong>the</strong> full a basic component <strong>of</strong> electronic content with on-going
updating. The plan for updating induces changes every week, which are impossible in case <strong>of</strong> a
textbook.
The content <strong>of</strong> <strong>the</strong> study materials undergoes <strong>the</strong> examination <strong>of</strong> experts in Russia to satisfy <strong>the</strong>
requirement <strong>of</strong> <strong>the</strong> Federal State Educational standards, pr<strong>of</strong>essional standards and study programs
in foreign universities.
eLearning <strong>of</strong>fers a student an individual learning path <strong>of</strong> disciplines, <strong>the</strong> sequence and period <strong>of</strong> <strong>the</strong>ir
studies that facilitates <strong>the</strong> building up <strong>of</strong> specific competences. Collaborative relationship is herewith
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Natalia Tikhomirova et al.
wide and embraces various forms like “students-teacher”, “students-students”, “teacher-teacher”
including not only teaching sphere.
The individualized learning path necessitates <strong>the</strong> change <strong>of</strong> a teacher’s role. A teacher is not only a
bearer <strong>of</strong> knowledge but a facilitator who helps learners to choose an adequate trajectory, to find <strong>the</strong>
answers to different questions. He/she is a specialist who proactively develops specific competences
in <strong>the</strong> process <strong>of</strong> research and education activities.
4. Integrated information and educational environment based on knowledge
management
eLearning necessitates a high-technological information and educational environment which <strong>of</strong>fers
comfortable conditions for effective cognitive and o<strong>the</strong>r activities that promote <strong>the</strong> development <strong>of</strong>
pr<strong>of</strong>essional competences.
Information and educational environment rests upon <strong>the</strong> realization <strong>of</strong> principles <strong>of</strong> academic
knowledge management. These principles provide <strong>the</strong> integration, accumulation and support <strong>of</strong>
academic knowledge and <strong>the</strong> organization <strong>of</strong> access to knowledge for different participants <strong>of</strong>
educational process that enables:
to integrate uncoordinated sources <strong>of</strong> information for different disciplines, specialties and
participants <strong>of</strong> <strong>the</strong> educational process (teachers and students) within <strong>the</strong> unified system;
to provide <strong>the</strong> ongoing development <strong>of</strong> <strong>the</strong> teaching and learning system via <strong>the</strong> renewal <strong>of</strong>
<strong>the</strong>oretical knowledge and continuous accumulation <strong>of</strong> new experience by teachers and students
in <strong>the</strong> course <strong>of</strong> educational process;
to produce relevant information to each participant <strong>of</strong> <strong>the</strong> educational process in line with his/her
knowledge, preferences and needs.
The integration <strong>of</strong> a set <strong>of</strong> heterogeneous sources <strong>of</strong> knowledge can be achieved on <strong>the</strong> basis <strong>of</strong>
unified conceptualization <strong>of</strong> knowledge. The main requirement to knowledge sources is <strong>the</strong> access to
all types <strong>of</strong> knowledge through <strong>the</strong> adequately structured knowledge area to be provided by taxonomy
<strong>of</strong> concepts or ontology.
Not all sources <strong>of</strong> knowledge are available, some <strong>of</strong> <strong>the</strong>m can be incomplete, inaccurate,
contradictory and inconsistent. Therefore it is necessary to develop <strong>the</strong> knowledge area and
environment, to build up <strong>the</strong> mechanism <strong>of</strong> comparing, assessing and testing <strong>the</strong> knowledge acquired,
to have an opportunity to be connected to <strong>the</strong> external knowledge management system.
The need for urgent adaptation <strong>of</strong> information and educational environment to changing information
requirements suggests a feedback communication <strong>of</strong> users and systems. The educational process
implies <strong>the</strong> building up <strong>of</strong> database for successful and unsuccessful solutions <strong>of</strong> various practical
tasks. Hereby individual knowledge is being transformed into group knowledge accessible to o<strong>the</strong>r
participants <strong>of</strong> <strong>the</strong> study process through generalization <strong>of</strong> adequate situations and mistakes and
dissemination <strong>of</strong> <strong>the</strong> developed knowledge.
The fruitful solution <strong>of</strong> various practical tasks in <strong>the</strong> study process needs <strong>the</strong> implementation <strong>of</strong>
diverse analytical instruments to capture tacit information from different sources <strong>of</strong> knowledge with <strong>the</strong>
usage <strong>of</strong> statistical analysis, expert systems, ma<strong>the</strong>matic and simulation modeling. These instruments
help <strong>the</strong> learners to discover some regulations in <strong>the</strong> real life and find <strong>the</strong> most rational solutions.
A learner becomes a researcher who not only requests <strong>the</strong> information but puts forward and verifies
hypo<strong>the</strong>sis with <strong>the</strong> help <strong>of</strong> special s<strong>of</strong>tware.
Thus <strong>the</strong> integrated information and educational environment becomes a competent partner for all
participants in <strong>the</strong> study process.
The implementation <strong>of</strong> information, communication and smart technologies impels to introduce <strong>the</strong>
following subsystems:
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subsystem <strong>of</strong> learners’ support that maintain and trace <strong>the</strong> educational process from <strong>the</strong>
enrollment <strong>of</strong> students to <strong>the</strong> period <strong>of</strong> giving certificates (diploma). The emphasis is on designing
individual trajectory and testing <strong>the</strong> obtained specific competences.
Subsystem <strong>of</strong> eLearning implies <strong>the</strong> electronic courses, production <strong>of</strong> new knowledge,
videoconferences, current control <strong>of</strong> <strong>the</strong> material studied.
Subsystem <strong>of</strong> electronic library suggests an electronic catalogue <strong>of</strong> traditional library, full-text
materials, open educational resources, digital format <strong>of</strong> access to o<strong>the</strong>r electronic library and
electronic databases;
Subsystem <strong>of</strong> communication <strong>of</strong> all partners in <strong>the</strong> educational process helps learners, faculty and
administrative personal to communicate via e-mail, videoconferences and o<strong>the</strong>r channels;
Subsystem <strong>of</strong> decision support, monitoring and analyses <strong>of</strong> metrics <strong>of</strong> educational performance;
Subsystem <strong>of</strong> document circulation embraces electronic document movement, traditional
document rotation, collaborative work at documents;
Subsystem <strong>of</strong> marketing activity suggests <strong>the</strong> development and support <strong>of</strong> websites, promotion <strong>of</strong>
higher education institutions’ services in global networking , information and advertisement at
special terminals;
Subsystem <strong>of</strong> region guidance means <strong>the</strong> management <strong>of</strong> partners’, associations` and branches’
activities;
Subsystem <strong>of</strong> overall security includes <strong>the</strong> systems <strong>of</strong> information security (access control
system, CCTV);
Infrastructural technological decisions providing effective implementation <strong>of</strong> o<strong>the</strong>r information
systems (storage environment, authorization system, backup, configuration management,
hardware, data network, service desk).
The efficiency <strong>of</strong> each subsystem can be enhanced with <strong>the</strong> information - technological support. The
most acceptable solution is a common access for learners, teachers and managers. Each participant
has his/her own level <strong>of</strong> access required for learning, teaching and working. It is this kind <strong>of</strong> solution
that has been adopted in <strong>the</strong> Moscow State University <strong>of</strong> Economics, Statistics and Informatics
(Tikhomirov V. et al., 2010).
The integrated information and educational environment “MESI Virtual Campus” based on MS Share
Point ensures <strong>the</strong> solution <strong>of</strong> all above mentioned tasks (figure 1).
The integrated information and educational environment that includes all subsystems integrated on
<strong>the</strong> basis <strong>of</strong> <strong>the</strong> unified system <strong>of</strong> authorization helps to create an overall information area for all
participants <strong>of</strong> <strong>the</strong> educational process (Tikhomirova N. et al., 2010).
The realization <strong>of</strong> <strong>the</strong> concept <strong>of</strong> electronic distributed university with <strong>the</strong> effective information system
has permitted <strong>the</strong> University (MESI) to create a dynamic integrated system <strong>of</strong> management <strong>of</strong>
educational process in line with on-going requirements <strong>of</strong> forming pr<strong>of</strong>essional competences for labor
market.
5. Conclusion
The requirements <strong>of</strong> developed countries to employ specialists with high-level <strong>of</strong> pr<strong>of</strong>essional
competences necessitate <strong>the</strong> development <strong>of</strong> <strong>the</strong> competence approach to designing study programs
and implementing advanced technologies with regards to <strong>the</strong> individualization <strong>of</strong> learning process on
<strong>the</strong> student-centered principles.
The flexible educational process is indispensable without knowledge management within <strong>the</strong>
framework <strong>of</strong> integrated information and educational area which provides a high-level <strong>of</strong> personalized
educational process.
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Natalia Tikhomirova et al.
Figure 1: University’s integrated information and educational environment
The use <strong>of</strong> advanced ICT in <strong>the</strong> integrated information and educational environment based on
academic knowledge management needs a complex solution <strong>of</strong> problems in a knowledge area which
implies <strong>the</strong> integrated relationship between learners and supporting subsystems. The latter are
reviewed as enablers for flexible support <strong>of</strong> <strong>the</strong> formation <strong>of</strong> learner`s specific competences.
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Germany.
570

Adopting Cell Phones in <strong>the</strong> Classroom: A Study <strong>of</strong>
Students’ Attitudes and Behaviors on Using Cell Phones
Both in and out <strong>of</strong> <strong>the</strong> Classroom
Willard Van De Bogart
Bangkok University, Thailand
willard.v@bu.ac.th
Abstract: The plethora <strong>of</strong> cell phones owned by students at Bangkok University has prompted this study. The
purpose was to investigate cell phone usage for ESL language learning and <strong>the</strong> attitudes toward using <strong>the</strong> cell
phones in and out <strong>of</strong> <strong>the</strong> classroom. A questionnaire survey was given to one hundred Bangkok University ESL
students in order to learn how <strong>the</strong> students were currently using <strong>the</strong>ir cell phones and how <strong>the</strong>y would like to use
<strong>the</strong>m in <strong>the</strong> future. An inquiry into how <strong>the</strong> students wanted <strong>the</strong> teacher to integrate <strong>the</strong> cell phone in course work
and learning activities was conducted through “open-ended questions”. Open-ended questions are useful so as
to increase <strong>the</strong> range <strong>of</strong> possible answers which can be applied to course work and lesson plans. Both a
quantitative and qualitative approach as well as correlations was taken for <strong>the</strong> investigation <strong>of</strong> <strong>the</strong> ESL
learners.The overall results suggest that students would like to use <strong>the</strong>ir cell phones in <strong>the</strong>ir course work. The
open-ended questions fur<strong>the</strong>r verified <strong>the</strong> need to develop course work which would incorporate <strong>the</strong> cell phone in
<strong>the</strong> classroom. The benefits <strong>of</strong> this study could be utilized for designing future learning environments where
mobile assisted language learning was being considered for adoption.
Keywords: ESL; classroom cell phone use; cell phone behavior; digital literacy; ubiquitous learning; knowledge
management
1. Introduction
The style <strong>of</strong> learning in <strong>the</strong> digital age is a significant consideration when addressing <strong>the</strong> adoption <strong>of</strong>
cell phones into a classroom. How L2 learning can be advanced and made more effective by using
<strong>the</strong> cell phone to achieve higher L2 skills with Thai students has prompted this survey to study Thai
student behavior and attitudes when asked how <strong>the</strong>y would like to see <strong>the</strong> cell phone introduced into
<strong>the</strong> classroom to learn English. The responses from <strong>the</strong> students, when compared to research
conducted by o<strong>the</strong>r universities, was that if <strong>the</strong>re were an effort to structure a lesson whereby learning
<strong>the</strong> various skills <strong>of</strong> <strong>the</strong> English language did integrate a cell phone, <strong>the</strong> students seemed receptive to
that idea and were indicating <strong>the</strong>y would like to adopt <strong>the</strong> cell phone in <strong>the</strong>ir studies.
The efforts made thus far with using <strong>the</strong> cell phone in <strong>the</strong> classroom on a global level are impressive
and it is worth taking a look at what has been uncovered in several universities that have adopted
digital technologies in <strong>the</strong>ir curriculum. The survey <strong>of</strong> <strong>the</strong> literature shows that an improvement in
skills has been achieved by progressively adding exercises using <strong>the</strong> cell phone in parallel with books
and written documents. However, using a cell phone to assist learning English touches upon <strong>the</strong>
broader issue <strong>of</strong> what is called “digital literacy” and how students will be able to integrate digital
devices effectively for critical learning skills as well as to augment <strong>the</strong>ir L2 learning.
The concept <strong>of</strong> digital literacy is very important because all students entering a university today have
been using <strong>the</strong> computer and a cell phone to access information and communicate ideas with <strong>the</strong>ir
friends. The concept <strong>of</strong> ubiquitous learning (u-Learning) has developed because with mobile digital
tools learning can take place anywhere and at any time. A complex interactive social network has
already been developed as shown by <strong>the</strong> predominant use <strong>of</strong> Facebook, Twitter, and all <strong>the</strong> o<strong>the</strong>r
social networks <strong>the</strong> internet <strong>of</strong>fers. Therefore, if an L2 student is only exposed to paper based
instruction through books or o<strong>the</strong>r paper documents <strong>the</strong> world <strong>the</strong>y have been predominantly involved
with, and are most familiar with on a day to day basis in a computer mediated world, would be absent
in a paper based instructional environment. If aspects <strong>of</strong> <strong>the</strong>ir digital world are not incorporated into
<strong>the</strong> lesson plan and classroom activities, student motivation to learn will be hampered. Digital literacy
has made <strong>the</strong> argument against using digital learning tools an untenable position. The future <strong>of</strong>
information management and knowledge acquisition will be done using <strong>the</strong> computer mediated
technologies and <strong>the</strong> cell phone is capable <strong>of</strong> connecting to this larger digital repository <strong>of</strong> information
making it a useful if not an essential tool to assist in <strong>the</strong> L2 learning process. Coupled with <strong>the</strong> fact
that we are entering a global digital society, we find that <strong>the</strong> language that is predominantly used in
<strong>the</strong>se digital resources is written in English.
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So, given <strong>the</strong> fact that a digital mediated classroom will be <strong>the</strong> norm within learning environments in
<strong>the</strong> very near future, it is necessary to be aware <strong>of</strong> language learning strategies that can be
incorporated into a digital L2 environment. In a study conducted by (O'Malley 1990) it was found <strong>the</strong>re
were three types <strong>of</strong> strategies employed by L2 learners. Because <strong>of</strong> <strong>the</strong> growth <strong>of</strong> information based
resources as well as social networks <strong>the</strong> three strategies <strong>of</strong> 1. Metacognitive 2. Cognitive Strategies
and 3. Social Strategies are well adapted to a mixture <strong>of</strong> traditional styles <strong>of</strong> learning and learning
using digital technologies.
In a digital world a student may only focus on selected aspects <strong>of</strong> new information (Ghani 2003) or
just analyze <strong>the</strong> information as <strong>the</strong>y acquire it. Because <strong>of</strong> <strong>the</strong> immediacy to link from one resource to
<strong>the</strong> next just by changing an application on <strong>the</strong> cell phone <strong>the</strong> way in which information is acquired
has changed. Now <strong>the</strong>re is immediate access to numerous sources <strong>of</strong> input by which a student can
construct a knowledge base, but with out any digital literacy skills <strong>the</strong> logical integrity <strong>of</strong> that
knowledge base and how it is managed may be inconsistent or even nonexistent.
Thus, <strong>the</strong> carry over from traditional learning strategies into a digitally based learning environment is
essential to increase digital literacy skills. In quoting from (Glister 1997),
“Digital literacy is <strong>the</strong> ability to understand information and – more important – to
evaluate and integrate information in multiple formats that <strong>the</strong> computer can deliver.”
Digital literacy begins when students use any computer mediated device. The cell phone has become
<strong>the</strong> most portable and ubiquitous <strong>of</strong> devices to connect to <strong>the</strong> internet. Conectivity cn take place any
where at any time. Digital literacy is concerned with <strong>the</strong> wider aspects associated with learning
because a student has to learn how to communicate information using <strong>the</strong>ir digital technologies.
This ability to understand information from a digital literacy point <strong>of</strong> view means knowing <strong>the</strong> nature <strong>of</strong>
information acquisition. In most cases this skill is still on a one dimensional level whereby <strong>the</strong>
language learning strategies only goes so far as typing in keywords into a search engine and <strong>the</strong>n
copying what is indicated by <strong>the</strong> search engine’s citations. The next level on <strong>the</strong> digital literacy curve
which needs to be taught ,along with L2, is “critical information acquisition”. According to (Debons
2008) information acquisition centers on tasks for which data is required to support <strong>the</strong> user’s needs.
Tasks demand <strong>the</strong> proper identification and use <strong>of</strong> data to insure that <strong>the</strong> state <strong>of</strong> awareness meets
<strong>the</strong> demands <strong>of</strong> <strong>the</strong> task.
Keeping this idea <strong>of</strong> information acquisition and language learning strategies in mind, <strong>the</strong> following
examples, whereby <strong>the</strong> cell phone or mobile device is incorporated into L2 activities as well as aiding
in developing digital literacy, will be covered lending credence to adopting <strong>the</strong> cell phone in <strong>the</strong>
classroom sooner than later.
2. Review <strong>of</strong> <strong>the</strong> literature
The idea <strong>of</strong> incorporating mobile phones with paper based learning has been fully explored by (Chao
2009) who demonstrated how mobile phones can be used as a supportive tool by helping students
with <strong>the</strong>ir learning strategies. In his study it was shown that <strong>the</strong> mobile phone supports <strong>the</strong> learning
process by allowing students to extract notes from underlined text, indicated within documents, and
sending <strong>the</strong>m back to <strong>the</strong> teacher for fur<strong>the</strong>r discussion. This act <strong>of</strong> combining <strong>the</strong> mobile device with
a forum for interaction can be fur<strong>the</strong>r developed by exchanging relevant links on <strong>the</strong> internet for
fur<strong>the</strong>r clarification on <strong>the</strong> notes that <strong>the</strong> student requested more information about. In this way <strong>the</strong>
cell phone becomes an integral part <strong>of</strong> <strong>the</strong> lesson. It was found that <strong>the</strong> students were able to develop
awareness <strong>of</strong> available support resources and thus led to developing <strong>the</strong>ir digital literacy skills. In this
case developed by Chao, reading comprehension was assisted by allowing <strong>the</strong> student to use <strong>the</strong> cell
phone to send coded line numbers from <strong>the</strong> text <strong>the</strong>y had been assigned, and <strong>the</strong>n receive fur<strong>the</strong>r
guidance by <strong>the</strong> teacher who would direct <strong>the</strong> student to an online resource. This is a perfect example
<strong>of</strong> developing digital literacy because it directs <strong>the</strong> student to online resources.
Fur<strong>the</strong>r exploration into learning strategies <strong>of</strong> L2 learners in accessing online resources was
conducted by (Meurant 2006b) who has determined <strong>the</strong>re is a qualitative difference between
traditional learning patterns and those <strong>of</strong> online learning patterns. Meurant has reviewed four research
studies illustrating <strong>the</strong> transition from traditional styles <strong>of</strong> learning to a digital style. Along with L2
learning strategies using mobile devices <strong>the</strong> introduction to teaching digital literacy also becomes an
important concern for <strong>the</strong> teacher. Meurant has also developed a second language pedagogy for
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using cell phones (Meurant 2007). Meurant’s research shows how cell phones are relevant to task
based learning and are suitable for classroom interactivity. According to Meurant, <strong>the</strong> rapid pace <strong>of</strong>
technological learning is impacting second language acquisition which is radically redefining <strong>the</strong>
traditional concept <strong>of</strong> <strong>the</strong> classroom. As a result, Meurant’s literature review, with implications for
second language pedagogy, found that cell phones can be useful as learning tools (Meurant 2006a).
Meurant also reviewed Keirnan and Aizawa’s work (Keirnan 2004) with cell phones in task based
learning and showed how <strong>the</strong> authors demonstrated that cell phones could be potentially useful as
language tools.
At Cornell University (Carlacio 2009) sees multiple literacy’s being developed as we move fur<strong>the</strong>r into
<strong>the</strong> 21 st century. With <strong>the</strong> recognition that students already have a digital literary sense, in as much as
<strong>the</strong>y are familiar with blogging, creating Facebook pages, sharing photos and finding information on
Google, <strong>the</strong>se skills may not in <strong>the</strong>mselves indicate digital literacy. But because <strong>the</strong> mobile devices
are now considered hand held mini computers <strong>the</strong> emphasis at Cornell is to develop <strong>the</strong>se initial
digital skills, but by using scaffolding exercises incorporating digital resources <strong>the</strong> student begins to
understand how to use <strong>the</strong>ir critical thinking abilities for exploring, interpreting and participating in a
complex and information rich environment.
The most popular function for exchanging information on a cell phone is using <strong>the</strong> Short Message
Service (SMS). Using SMS for classroom instruction has been developed by (Wen 2006) to support
students to query information and knowledge through SMS in a mobile learning environment. Wen
has developed a way to respond to student requests for information by being able to analyze each
request, and through a series <strong>of</strong> algorithms and dialogue control modules <strong>the</strong> questions can be
matched against existing knowledge and a reference is sent back to <strong>the</strong> students on how to locate <strong>the</strong>
information. The questions or queries sent by <strong>the</strong> students are processed through a query process
module which in turn searches and matches information from a knowledge base or from <strong>the</strong> internet.
By integrating standard processing modules used in cell phone architecture, Wen and his team have
been able to address a complex set <strong>of</strong> dialogues between <strong>the</strong> SMS system and <strong>the</strong> needs <strong>of</strong> <strong>the</strong>
student. This type <strong>of</strong> message loop, whereby a student generates a query using SMS and <strong>the</strong>n
receives an answer, is a very effective way by which to use <strong>the</strong> cell phone in <strong>the</strong> classroom and also a
way to begin <strong>the</strong> students digital literacy learning curve.
The many research papers which exist in <strong>the</strong> literature show a marked increase in finding ways to
adopt <strong>the</strong> cell phone in <strong>the</strong> classroom. The European Network <strong>of</strong> Excellence in Technology
Enhanced Learning most recently brought toge<strong>the</strong>r forty researchers in mobile learning in a
conference titled “Kaleidoscope” to discuss <strong>the</strong> implications <strong>of</strong> adopting cell phones as a learning tool
(M. Sharples 2006a). Important implications were discussed involving <strong>the</strong> ubiquitous nature <strong>of</strong> <strong>the</strong> cell
phone in all sectors <strong>of</strong> society prompting <strong>the</strong> recognition <strong>of</strong> a society that is changing into a mobile
society where learning is taking place at various locations and times to suit <strong>the</strong> interest and curiosity
<strong>of</strong> <strong>the</strong> student. Mark Sharples, director <strong>of</strong> <strong>the</strong> Learning Sciences Research Institute at <strong>the</strong> University
<strong>of</strong> Nottingham, UK discussed, at <strong>the</strong> Kaleidoscope workshop, <strong>the</strong> conflicts between personal and
informal learning with traditional classroom instruction, which has been found to be <strong>the</strong> biggest issue
when educators are confronted with how to integrate mobile technology in <strong>the</strong> classroom. Arguments
in favor and against using cell phones in <strong>the</strong> classroom were also addressed. The results <strong>of</strong> this
debate was that <strong>the</strong>se mobile technologies would eventually be absorbed into schools and
universities but <strong>the</strong>ir integration would take on a variety <strong>of</strong> forms and <strong>the</strong> issue <strong>of</strong> integrating on-line
knowledge and classroom knowledge would create a tension between users and educators as well as
how parents wanted <strong>the</strong>ir children exposed to knowledge outside <strong>the</strong> classroom (M. Sharples 2006b).
2.1 Learning <strong>the</strong>ories integrated with cell phones in <strong>the</strong> L2 classroom:
The focus for <strong>the</strong> cell phone survey at Bangkok University was geared to ESL students. As more and
more students are in need <strong>of</strong> communicating in a globalized world, learning English as a second
language has become a priority. There are many learning <strong>the</strong>ories which can be adopted for learning
a second language. Using mobile technologies to analyze <strong>the</strong> effectiveness <strong>of</strong> learning a second
language has been developed at Boise State University in <strong>the</strong> USA. BSU is exploring how <strong>the</strong>
constructivist <strong>the</strong>ory <strong>of</strong> learning can be integrated with mobile learning (Craig, 2009). Since <strong>the</strong>
constructivist approach is one in which people build on <strong>the</strong>ir own experiences, and with more students
developing <strong>the</strong>ir own personal world <strong>of</strong> information sharing, it is <strong>the</strong> view <strong>of</strong> <strong>the</strong> researchers at Boise
State University that <strong>the</strong>re is a need to demonstrate that mobile technology integration, along with <strong>the</strong>
constructivist approach to learning, is a perfect match. Likewise, Sharples at <strong>the</strong> Learning Sciences
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Willard Van De Bogart
Research Institute, along with a team <strong>of</strong> researchers, is also developing a framework for <strong>the</strong>orizing
about mobile learning. Their findings also match a social constructivist approach (M. T. Sharples,
Josie; Vavoula, Giasemi, 2010). This team realizes that any <strong>the</strong>ory <strong>of</strong> mobile learning must take
account <strong>of</strong> <strong>the</strong> ubiquitous use <strong>of</strong> personal and shared technology. A convergence <strong>of</strong> personal mobile
devices and learning languages is taking place with new applications being developed worldwide, and
again Kukulska and Bull are developing <strong>the</strong>ory-based support for mobile language learning
(Kukulska-Hulme 2009).
The motivational factors encouraging students to learn a second language has been indicated by
(Todd, 2006) implying that mobile phones are intrinsically motivating which ought to encourage
English language teachers to look for applications within <strong>the</strong> classroom. The issue is how to impart
<strong>the</strong> necessary lessons for students who are interested in second language acquisition. The
implications for using mobile phones for language learning have prompted Todd to develop several
activities in and out <strong>of</strong> <strong>the</strong> classroom. One such activity Todd created involved negotiated meaning
where two people use <strong>the</strong>ir cell phones to describe any object and try to draw <strong>the</strong> described object
based on how it was explained over <strong>the</strong> cell phone. Self assessment <strong>of</strong> recorded activities was
ano<strong>the</strong>r activity Todd initiated which could be critiqued by detailed feedback on <strong>the</strong> student’s
performance from <strong>the</strong> teacher by listening to <strong>the</strong> recording and commenting using <strong>the</strong> cell phone.
The more learning <strong>the</strong>ories are incorporated into interactive designs using cell phones for classroom
assignments <strong>the</strong> more readily <strong>the</strong>se mobile devices will become permanent adjuncts to a students
learning environment and <strong>the</strong> need to develop personal information spaces by students can <strong>the</strong>n be
integrated with classroom assignments thus bridging <strong>the</strong> divide between student and teacher (Toler
2010).
Subsequently, with <strong>the</strong> current student population at Bangkok University predominantly using cell
phones, <strong>the</strong> decision was made to obtain a behavioral and attitude pr<strong>of</strong>ile from <strong>the</strong> ESL students
using a survey questionnaire. The questionnaire was designed in order to learn how Thai students
related to <strong>the</strong>ir cell phones and what <strong>the</strong>y would like to use <strong>the</strong>m for in an educational setting. The
questionnaire was <strong>of</strong>fered in both Thai and English to minimize any misunderstanding <strong>of</strong> <strong>the</strong>
questions.
The key aspect in conducting this study with Thai students was to see how it would compare with <strong>the</strong>
on-going developments and results obtained by researchers and teachers in o<strong>the</strong>r universities around
<strong>the</strong> world with <strong>the</strong>ir ESL students. Therefore, <strong>the</strong> intention in designing this survey was to gain a
broad perspective on how Thai students at Bangkok University use <strong>the</strong>ir cell phone as well as
understanding <strong>the</strong>ir attitudes for using it as a learning tool in order to gain insight on how to adopt <strong>the</strong>
cell phone for class work activities.
3. Research objectives
The goal <strong>of</strong> this investigation on student behaviors with <strong>the</strong>ir cell phones was to investigate students’
behavior and attitudes related to cell phone use to learn English.
4. Research questions
1. What are <strong>the</strong> students’ behaviors <strong>of</strong> cell phone use?
2. What are <strong>the</strong> students’ attitudes with cell phone use?
3. What are <strong>the</strong> students’ suggestions about how <strong>the</strong> teacher can integrate cell phones into classroom
work?
5. Methodology
5.1 Data analysis
To answer research question 1 and 2, data from <strong>the</strong> questionnaire were analyzed for <strong>the</strong> mean and
standard deviations to <strong>the</strong> students response. Questions 1-5 was focused on behavior and questions
6-10 were focused on attitudes.
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Willard Van De Bogart
To answer question 3 <strong>the</strong> student responses were analyzed using <strong>the</strong> content analysis technique.
Analysis means “organizing and interrogating data in ways that allow researchers to see patterns,
identify <strong>the</strong>mes, discover relationships, develop explanations, make interpretations, mount critiques,
or generate <strong>the</strong>ories” (Hatch 2002 p. 148). Doing <strong>the</strong> analysis also means “ making interpretations” <strong>of</strong>
data which depends very much on <strong>the</strong> researcher’s “<strong>the</strong>oretical sensitivity” or <strong>the</strong> “ability to recognize
what is important in data and to give it meaning” (Strauss 1990 p. 46). As was suggested by Strauss,
however, <strong>the</strong> <strong>the</strong>oretical sensitivity does not emerge incidentally. Ra<strong>the</strong>r, it has two sources: <strong>the</strong>
“technical literature” (or literature in <strong>the</strong> field) and “pr<strong>of</strong>essional and personal experience” (p. 46), and
one <strong>of</strong> <strong>the</strong> techniques that enhances <strong>the</strong>oretical sensitivity is <strong>the</strong> use <strong>of</strong> questions (p. 77). The coding
system was developed to aid as a guideline for content analysis. The answers were clustered around
four main <strong>the</strong>mes as interpreted by <strong>the</strong> author.
5.2 Subjects
The subjects in this study were 64 1 st year students in <strong>the</strong>ir 2 nd semester, however, it was also open to
o<strong>the</strong>r year students. The questionnaire was designed using both <strong>the</strong> Thai language and <strong>the</strong> English
language to remove any doubt as to <strong>the</strong> meaning <strong>of</strong> <strong>the</strong> questions. The questions were reviewed prior
to being administered by two Thai ELT teachers who hold doctorates to determine <strong>the</strong>
meaningfulness <strong>of</strong> <strong>the</strong> questions when translated from English into Thai.
5.3 Instruments
A set <strong>of</strong> questionnaires was used as an instrument. It consists <strong>of</strong> three parts:
Table 1. Demographic data
Table 2: Students’ behaviors and attitudes using cell phones
Table 3 Categories <strong>of</strong> cell phone use
Table 1: Demographic data
Gender Male - 31 Female - 33
English pr<strong>of</strong>iciency Frequency Percent
A = 4.00
B+ = 3.50
B = 3.00
C+ = 2.50
C = 2.00
D+ = 1.50
D = 1.00
Total
6. Findings
Research question 1 and 2:
12
9
12
23
6
1
1
64
1. What are <strong>the</strong> students’ behavior with cell phone use?
2. What are <strong>the</strong> students’ attitudes with cell phone use?
To answer research question 1 and 2, <strong>the</strong> findings in Table 2 were used. The discussion <strong>of</strong> <strong>the</strong>
findings was focused on <strong>the</strong> behavior and attitudes <strong>of</strong> students’ using <strong>the</strong> cell phone to learn English.
7. Discussion
The results about students’ behaviors and attitudes are shown in Table II. Items 1-5, shows students’
behavior and items 6-10 shows students’ attitudes. What is significant is that items 3-4 indicate that
students are already using <strong>the</strong>ir cell phones to communicate with <strong>the</strong>ir friends about <strong>the</strong>ir lessons and
<strong>the</strong>y are using <strong>the</strong>m to search for information on <strong>the</strong> internet. This is important because it shows that
students have already adapted to using <strong>the</strong> cell phone for seeking information both from <strong>the</strong>ir friends
575
18.8
14.1
18.8
35.9
9.4
1.6
1.6
100

Willard Van De Bogart
as well as <strong>the</strong> internet. However, <strong>the</strong> students have had no formal instruction on how to search for
information which would increase <strong>the</strong>ir digital literacy skills for critical information acquisition.
Table 2: Student behavior and attitudes
Statement Levels <strong>of</strong> agreement
Mean S.D. Meaning
1. I use <strong>the</strong> cell phone in class to help me understand what <strong>the</strong> teacher is saying. 3.48 .99 M
2. I use my cell phone to help me with my tests. 3.25 1.02 M
3. I use my cell phone to call friends to help me with my lessons. 4.23 .61 H
4. I use my cell phone to look for information on <strong>the</strong> internet. 4.03 .91 H
5. I use my cell phone to do my homework. 3.34 .89 M
6. I use my cell phone to search for information on social networks: Facebook,
Twitter, Hi5, etc.
4.11 .76 H
7. I think my cell to help me learn vocabulary better. 3.47 .99 M
8. I would like it if <strong>the</strong> teacher asked me to use my cell phone to learn English in
class.
3.58 .99 H
9. I think sending homework to my teacher over <strong>the</strong> cell phone using (SMS, email, 3.91 1.12 H
internet) is a good idea.
10. My English classroom would be more interesting if I could use my cell phone for 3.94 .87 H
exercises.
In items 6-10 <strong>the</strong> students are indicating <strong>the</strong>y would like <strong>the</strong> teacher to incorporate <strong>the</strong> cell phone into
classroom exercises. What this indicates is a desire to have <strong>the</strong> teacher demonstrate and use <strong>of</strong> <strong>the</strong>
cell phone in <strong>the</strong> classroom. The students want to utilize <strong>the</strong>ir mobile devices in learning but do not
have any instruction on how this can be done more effectively. The entire discipline <strong>of</strong> information
acquisition behavior as well as <strong>the</strong> skill in knowing how to access information resources more
efficiently is completely omitted from <strong>the</strong>ir course work.
Research question 3:
What are <strong>the</strong> students’ suggestions about how <strong>the</strong> teacher can integrate cell phones into classroom
work?
To answer research question 3, <strong>the</strong> discussion <strong>of</strong> <strong>the</strong> findings was focused on <strong>the</strong> interpretation <strong>of</strong>
students’ answer statements in order to categorize <strong>the</strong> factors that could affect <strong>the</strong> strategy use. The
students were asked how <strong>the</strong>y would like <strong>the</strong> teacher to integrate <strong>the</strong> cell phone in lessons and
activities for reading, writing, listening and speaking.
Table 3: Categories <strong>of</strong> cell phone use
Categories <strong>of</strong> Code Explanation Comments
Cell Phone
Use
Channel To
Deliver
Materials
Sending
Homework
CDM Method to deliver student materials 1. I would like to listen to <strong>the</strong> teacher
reading passages by sending mp3 files to
my cell phone.
2. I would like <strong>the</strong> teacher to send voice
clips so I could summarize what I hear and
SH a. evaluate student work
b.consulting with <strong>the</strong> teacher
c.advice or suggestions given to <strong>the</strong>
student
Resources R a. definition <strong>of</strong> words
b. anything students can gain
knowledge by
c. help in linking to o<strong>the</strong>r web sites
Assist in
lessons
AL Functions which assist to break
interpersonal barriers between <strong>the</strong>
teacher and student
576
send it back to <strong>the</strong> teacher.
1. I would like to send answers back from
my assignments using SMS.
2. I would like <strong>the</strong> teacher to send reading
passages with underlined words so I could
practice my vocabulary.
1. I would like <strong>the</strong> teacher to assign web
sites in addition to my lesson so I can learn
more.
2. I would like <strong>the</strong> teacher to tell me to read
something from <strong>the</strong> internet so I can
practice my English.
1.I would like to record how I pronounce
words and send <strong>the</strong>m to my teacher before I
use <strong>the</strong>m in <strong>the</strong> class.
2. I would like to listen to my assignment so
I could practice listening.

8. Discussion
Willard Van De Bogart
The qualitative data has been categorized into four areas. The first category (CDM) is <strong>the</strong> channel by
which information is delivered. This could be <strong>the</strong> use <strong>of</strong> email, SMS, web postings or even social
networks. The second category (SH) is <strong>the</strong> responses dealing with students sending homework to <strong>the</strong>
teacher over <strong>the</strong>ir cell phone for three different situations which include evaluation, consultation and
advice. The third category (R) concerns how students obtain <strong>the</strong>ir information. This includes <strong>the</strong> use
electronic dictionaries, web resources and o<strong>the</strong>r applications available to <strong>the</strong> student using a cell
phone. The last category (AL) deals with how a student would like to be helped with <strong>the</strong>ir lessons. The
students are indicating <strong>the</strong>y would like to lessen <strong>the</strong> divide between <strong>the</strong> teacher and <strong>the</strong> students and
have more dialogue and conversation.
These comments show a distinct interest in using <strong>the</strong> cell phone to help with class work. However, to
date <strong>the</strong>re are no lessons which incorporate <strong>the</strong> cell phone into regular class work by which <strong>the</strong>
student could become more pr<strong>of</strong>icient in taking advantage <strong>of</strong> <strong>the</strong> multitasking capabilities that <strong>the</strong> cell
phone <strong>of</strong>fers. The responses indicate an awareness <strong>of</strong> what <strong>the</strong> cell phone is capable <strong>of</strong> doing and
<strong>the</strong> students are able to express <strong>the</strong>mselves on how <strong>the</strong>y would like to adopt <strong>the</strong> cell phone in <strong>the</strong>ir
class work activities.
The question is how an effective use <strong>of</strong> <strong>the</strong> cell phone can be used in an L2 environment. What have
we learned from this survey which would indicate a direction a teacher could take to accommodate a
few <strong>of</strong> <strong>the</strong> needs suggested by <strong>the</strong> students? Let’s look at a few <strong>of</strong> <strong>the</strong> requests made by <strong>the</strong>
students.
Listen to mp3 files on <strong>the</strong>ir cell phone. (listening)
Send SMS messages to <strong>the</strong> teacher. (writing)
Use <strong>the</strong> cell phone to read assignments found on <strong>the</strong> internet. (reading)
Practice speaking over <strong>the</strong> cell phone. (speaking)
In considering adopting <strong>the</strong> cell phone in <strong>the</strong> classroom any one <strong>of</strong> <strong>the</strong> above suggestions could
easily be integrated into a classroom activity. Among <strong>the</strong>se four choices which can be used in an
educational setting (Rau 2008) suggests that SMS is <strong>the</strong> most widely used application.
Fur<strong>the</strong>rmore, (Kukulska-Hume 2002) has suggested that mobile devices are more appropriate to work
as an extension <strong>of</strong> current learning tools, ra<strong>the</strong>r than replacing <strong>the</strong>m. Keeping this in mind an activity
whereby <strong>the</strong> teacher asks <strong>the</strong> student to send a short writing sample by SMS gives <strong>the</strong> student an
opportunity to begin to use <strong>the</strong>ir cell phone in a classroom activity. Rau’s work shows how <strong>the</strong> use <strong>of</strong>
<strong>the</strong> cell phone in <strong>the</strong> classroom can also instill motivation in <strong>the</strong> student and enhance <strong>the</strong> learning
experience. The work by (Wen 2006), as mentioned above, can be very useful in understanding how
to exchange SMS messages between <strong>the</strong> teacher and <strong>the</strong> student.
Item 8 in Table 2 indicates that <strong>the</strong> students’ attitudes toward <strong>the</strong> teacher using <strong>the</strong> cell phone in <strong>the</strong>
classroom are very high. In Table III <strong>the</strong> students are expressing a desire for <strong>the</strong> teacher to use <strong>the</strong>
cell phone in home work assignments. These are examples whereby <strong>the</strong> attitude is favorable and <strong>the</strong>
needs are expressed positively to want to use <strong>the</strong> cell phone for class work. The next step in utilizing
a mobile learning device for an L2 learner is to develop an exercise and <strong>the</strong>n use <strong>the</strong> cell phone to
complete that exercise. With all <strong>the</strong> literature available suggesting <strong>the</strong> use <strong>of</strong> <strong>the</strong> cell phone in <strong>the</strong>
class room as a favorable adjunct to a traditional L2 exercises any one <strong>of</strong> <strong>the</strong> above choices would be
a start toward adopting <strong>the</strong> cell phone as a permanent digital tool in <strong>the</strong> list <strong>of</strong> students’ learning aids.
9. Implications and conclusions
From <strong>the</strong>se answers <strong>the</strong>re are three major areas <strong>of</strong> concern that have been uncovered.
The students seem quite ready for <strong>the</strong> integration <strong>of</strong> <strong>the</strong> cell phone in <strong>the</strong>ir class work.
The students have a favorable attitude in using <strong>the</strong> cell phone for <strong>the</strong>ir assignments.
The teacher can use <strong>the</strong>se four categories as guidelines to develop lessons and activities which
can lead to adopting <strong>the</strong> cell phone in an ESL classroom.
Ano<strong>the</strong>r implication that can be drawn from this survey is <strong>the</strong> students are ready to use <strong>the</strong>ir cell
phone both inside and outside <strong>of</strong> <strong>the</strong> classroom. The need which has been uncovered in this study is
that integrating <strong>the</strong> cell phone to teach L2 is <strong>the</strong> next step if one were to follow up on <strong>the</strong> suggestions
577

Willard Van De Bogart
<strong>of</strong> <strong>the</strong> students. It has become very apparent that students are already using <strong>the</strong>se mobile assisted
learning tools outside <strong>of</strong> <strong>the</strong> classroom. The habits and methods by which <strong>the</strong> student are now
acquiring information is unattended to by any instructional guidelines. Therefore, it would be <strong>of</strong> benefit
to <strong>the</strong> students if <strong>the</strong> disciplines <strong>of</strong> information science, knowledge acquisition and klnowledge
management, as suggested by (Debons 2008), and digital literacy addressed by (Carlacio 2009) were
implemented so that <strong>the</strong> students could evolve in a pr<strong>of</strong>essional academically supported environment
ra<strong>the</strong>r than using <strong>the</strong>ir cell phone to learn by trial and error which is <strong>the</strong> current behavior <strong>of</strong> <strong>the</strong>
students.
The integration <strong>of</strong> tradition language learning strategies and digital learning strategies, as pointed out
by Cornell Universities research, and <strong>the</strong>n by comparing that research to Bangkok Universities
students attitudes and behavior indicates BU students are ready to adopt <strong>the</strong> cell phone, accept
instructions and eventually become digitally literate, which will lead to a life long path <strong>of</strong> effective
learning.
Acknowledgements:
I am grateful to Bangkok University for its excellent resources. I also thank Asst. Pr<strong>of</strong>. Dr. Chutima
Thamraksa, Director <strong>of</strong> <strong>the</strong> Language Institute, for creating a supportive and informative environment
for academic research work. I also want to thank Assistant Pr<strong>of</strong>ewssors Dr. Preawpan Pringprom and
Dr. Sutilak Meeampol for <strong>the</strong>ir guidance and constructive advice in preparing this research and a
special thanks to Freek de Groot, M.Ed TESOL Program Leadewr, Graduate School <strong>of</strong> Education,
Faculty <strong>of</strong> Liberal Arts, Asian University, Banglamung, Chonburi for technical editing. Thanks also to
all <strong>the</strong> students for participating in this research, and every researcher and author whose article was
used in this paper.
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579

Human Capital Organization <strong>of</strong> Hospital Management
Asaf Varol
Wilkes University, Wilkes Barre, USA
asaf.varol@wilkes.edu
Abstract: Health is a vital asset in human life. Once your health is damaged, <strong>the</strong> importance <strong>of</strong> assets such as
money, house, and car lose significance in your eyes. With people working harder than ever and <strong>the</strong>
improvements in technology that make life easier, people are becoming less active and do not look after <strong>the</strong>ir
health. It is human nature that we understand <strong>the</strong> value <strong>of</strong> things only when we lose <strong>the</strong>m. Hospitals are very
important institutions in a country and it is a testament to <strong>the</strong> development. With rapid changes in technology,
modern and with well-equipped hospitals are available, it is necessary to have qualified staff/doctors working at
<strong>the</strong> hospitals. As well as medical doctors o<strong>the</strong>r health personnel such as nurses, anaes<strong>the</strong>tists and radiologists
must be organized in order to manage <strong>the</strong> hospital both economically and sociologically. The administration <strong>of</strong> a
hospital should be led like a conductor who manages all members <strong>of</strong> an orchestra where <strong>the</strong> instruments should
be harmonized. Therefore, <strong>the</strong> organization <strong>of</strong> hospitals should be based upon a planned future. Firat University
Hospital in Turkey is a large regional hospital that was established in 1983. This hospital has about 1000 beds.
The lack <strong>of</strong> organization and management had serious financial consequences and <strong>the</strong> hospital became
bankrupt. The majority <strong>of</strong> patients chose to go to private hospitals where <strong>the</strong>y thought <strong>the</strong>y received better
service. In 2008, <strong>the</strong> whole management was replaced and organizational and human capital matters were
improved. In this article, <strong>the</strong> changes in organizational and development manners are discussed. The difference
between old and new rules and regulations are compared. Finally, <strong>the</strong> benefits <strong>of</strong> <strong>the</strong> performance systems that
have been applied to Firat University Hospital will be explained and some recommendations will be submitted.
Keywords: human capital, performance systems, hospital management, organizational management
1. Introduction
Human capital is defined as <strong>the</strong> collective knowledge, skills and abilities <strong>of</strong> people within <strong>the</strong>
organization that are acquired on <strong>the</strong> job, through training, and/or experience. Human capital is
focused on <strong>the</strong> synchronization <strong>of</strong> <strong>the</strong>se assets to meet <strong>the</strong> patients’ satisfaction in a hospital (The
Voice, 2010).
Strategic management in general and human resource strategic management, in particular, are aware
<strong>of</strong> <strong>the</strong> necessity to know how <strong>the</strong>y can configure human resource management systems and
practices, with <strong>the</strong> aim <strong>of</strong> developing a competitive advantage for <strong>the</strong> hospital (Pablos & Lytras, 2008).
Most intellectual capital assessment tools are based on a top-down approach, which does not explore
<strong>the</strong> particular business process and <strong>the</strong> specific knowledge needs deeply. They measure <strong>the</strong>
intellectual capital <strong>of</strong> an organization as <strong>the</strong> return on tangible assets covering human capital such as
staff skills, innovativeness and work experience (Chan & Lee, 2010).
Hospital management should use new technology and invest in new hospital automation systems. If
new automation systems are adopted by healthcare pr<strong>of</strong>essionals, <strong>the</strong> achievable gains <strong>of</strong> <strong>the</strong>
systems can be attained (Esmaeilzadeh, Sambasivan & Kumar, 2010).
The main activity related to knowledge management is having <strong>the</strong> power <strong>of</strong> initiative, which leads us
to infer that employees increasingly award greater value to <strong>the</strong> extent <strong>of</strong> <strong>the</strong> scope <strong>of</strong> initiative <strong>the</strong>y
are allowed and this leads to more active participation in an organization (Ferreira et al., 2010).
Knowledge sharing practices can be evaluated using some processes such as communication
channels, sharing social tools-meetings, knowledge artefacts, training and apprenticeship, and
communities <strong>of</strong> practices. Face-to-face communication, writing communication or mediated
communication technologies are <strong>the</strong> communication channels between <strong>the</strong> staff and patients in a
hospital. Educational materials, manuals and procedures, and patients’ medical records are <strong>the</strong>
phenomena <strong>of</strong> <strong>the</strong> knowledge artefacts. The training and apprenticeship <strong>of</strong> staff can be done by
organizations (Alajmi et al., 2008).
There have been a lot <strong>of</strong> changes in health issues in <strong>the</strong> last decades in Turkey. The social health
equilibrium has been provided by <strong>the</strong> Ministry <strong>of</strong> Health. The laws and regulations related to health
issues have been changed and private health institutions have become available for any type <strong>of</strong>
580

Asaf Varol
patient. This has resulted in competition between <strong>the</strong> governmental and private health institutions in
terms <strong>of</strong> providing better service.
In August 2008 <strong>the</strong> financial situation at <strong>the</strong> Firat University Hospital was very poor. The hospital was
very late paying invoices, sometimes a year behind. The doctors and o<strong>the</strong>r health personals were not
receiving <strong>the</strong>ir monthly additional payments in time, which yields to unsatisfied jobs and unfilled
positions. Therefore, <strong>the</strong> patients could not be treated well since <strong>the</strong>re are personal issues at <strong>the</strong>
hospital.
This study will explain how Firat University Hospital has been rescued from its financial problems.
First we will discuss <strong>the</strong> desired knowledge management in <strong>the</strong> hospitals, educational and research
hospitals in Turkey, and <strong>the</strong> importance <strong>of</strong> management. In section 5, <strong>the</strong> former situation at Firat
University Hospital will be evaluated. Then <strong>the</strong> incentive scheme used in <strong>the</strong> hospital is discussed.
Finally, <strong>the</strong> changes made to <strong>the</strong> hospital’ management and human capital will be compared before
and after 2008 with providing some recommendations.
2. Knowledge Management in hospitals
Healthcare is a complex system consist <strong>of</strong> multiple subsystems where each <strong>of</strong> which operates
independently and creates harmony throughout <strong>the</strong> entire organization. These subsystems have
interactions with o<strong>the</strong>rs through interfaces. The more robust, efficient <strong>the</strong> interface, <strong>the</strong> better
management reflects itself. A systems approach can be used for deliver <strong>the</strong> healthcare (Dotan, 2003).
This technique integrates human resource solutions with organizational needs and priorities. This
enables us to realize <strong>the</strong> full picture (Dotan, 2003). In this type <strong>of</strong> approach an event in one part <strong>of</strong> <strong>the</strong>
system affects all o<strong>the</strong>r parts as well.
Better knowledge management yields to quality <strong>of</strong> service. The quality <strong>of</strong> service at hospitals is to
develop, implement, maintain, and continually improve <strong>the</strong> healthcare quality management system.
Specifically, a well-managed knowledge in hospitals can have <strong>the</strong> following advantages:
Lowering cost by limiting erroneous in <strong>the</strong> hospital
Increasing performance since every subsystems have interactions with o<strong>the</strong>rs.
Enhance patient safety and satisfaction
3. Educational and research hospitals <strong>of</strong> universities in Turkey
There are in total <strong>of</strong> 1191 hospitals in Turkey. 836 hospitals belong to <strong>the</strong> Ministry <strong>of</strong> Health, while 355
hospitals are governed by <strong>the</strong> private sectors (Tedavibilgisi.com, 2011). About 60 hospitals managed
by <strong>the</strong> universities are used for educational and research purposes. In fact, 66 hospitals that regulated
by <strong>the</strong> Ministry <strong>of</strong> Health are called educational and research hospitals. If we add university hospitals
to this number <strong>the</strong>re are total <strong>of</strong> 126 educational and research hospitals where people can use health
services and where medical students can be educated.
Educational and research hospitals have two goals. One <strong>of</strong> <strong>the</strong>m is to educate medical doctors and
<strong>the</strong> second goal is to treat <strong>the</strong> patients. Since <strong>the</strong> education level and availability <strong>of</strong> equipment is high
in this type <strong>of</strong> hospitals, most major illnesses are treated <strong>the</strong>re.
University hospitals are governed by university administrations using revolving funds facilities. A
performance system has been applied at <strong>the</strong> hospitals. In detail, <strong>the</strong> income <strong>of</strong> a physician is directly
proportional to teaching load, number <strong>of</strong> patient visits, performing check-ups and surgeries.
4. The importance <strong>of</strong> hospital management and appointing <strong>the</strong> Chief Executive
Head Doctor
In hospital management a Chief Executive Head Doctor is very important because all administrative
duties are done by him or her. The Financial Manager <strong>of</strong> Revolving Funds <strong>of</strong> <strong>the</strong> university is also
very important because all financial administrations are controlled by this person. In particular, <strong>the</strong>se
two administrators should work as a team and should know <strong>the</strong> regulations well regarding hospital
management and human capital. The rector <strong>of</strong> <strong>the</strong> university appoints <strong>the</strong> hospital <strong>of</strong>ficials. Because
<strong>of</strong> <strong>the</strong> university rector elections, <strong>the</strong>se hospital <strong>of</strong>ficial selections can be subjective. Therefore, <strong>the</strong>
rector can appoint someone who is not capable <strong>of</strong> performing administrative duties that <strong>the</strong> job
requires.
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According to Bashaar (2010), top management members <strong>of</strong> <strong>the</strong> hospitals must be able to plan,
organize, control and lead <strong>the</strong> wards and departments with a focus on understanding and influencing
<strong>the</strong> environment, setting <strong>the</strong> strategy and gaining commitment, planning, implementing and monitoring
strategies and evaluating and improving performance. The top management must <strong>the</strong>refore have high
capabilities with regard to human relations, strategic planning, team building, leadership, and
negotiation and performance management (Bashaar, 2010).
Overall, before 2008, at Firat University Hospital <strong>the</strong>re were administrative weaknesses in <strong>the</strong> manner
<strong>of</strong> hospital management and organizational problems <strong>of</strong> human capital. This resulted in <strong>the</strong> hospital
becoming bankrupt. In <strong>the</strong> next section, we will discuss <strong>the</strong> problems encountered at Firat University
Hospital prior to August 2008.
5. The problems encountered before August 2008 at Firat University Hospital
After changing <strong>the</strong> hospital administration such as <strong>the</strong> Chief Executive Head Doctor and <strong>the</strong> Financial
Manager <strong>of</strong> <strong>the</strong> Revolving Funds <strong>of</strong> <strong>the</strong> hospital after August 2008, <strong>the</strong> former organizations were
examined by <strong>the</strong> new appointed administrators. A SWOT (Strength, Weakness, Opportunity and
Threat) analysis was applied for <strong>the</strong> people who have direct relations with <strong>the</strong> hospital using methods
such as conducting a survey with <strong>the</strong> doctors, o<strong>the</strong>r health personals, patients and companies that
supplied medical instruments and medication to <strong>the</strong> hospitals. On <strong>the</strong> o<strong>the</strong>r hand, interviews were
conducted with o<strong>the</strong>r people who had a direct or indirect relationship with <strong>the</strong> hospital. According to
<strong>the</strong> findings from <strong>the</strong> above mentioned methods <strong>the</strong> following problems were discovered.
5.1 Lack <strong>of</strong> organizational administrating and confusing regulations
Because <strong>of</strong> confusing regulations about <strong>the</strong> hospital management, <strong>the</strong> responsible administrators
such as <strong>the</strong> Dean <strong>of</strong> <strong>the</strong> Medical College, <strong>the</strong> Chief Executive Head Doctor <strong>of</strong> <strong>the</strong> hospital or <strong>the</strong>
Financial Manager <strong>of</strong> Revolving Funds <strong>of</strong> <strong>the</strong> university, could not build coherent system to manage
<strong>the</strong> hospital well before August 2008. There were some laws and regulations in <strong>the</strong> articles that
contradicted each o<strong>the</strong>r. Some regulations were not written clearly, <strong>the</strong>refore <strong>the</strong>y were implemented
differently. Sometimes <strong>the</strong> different departments <strong>of</strong> Supreme Court could come to different decisions
for <strong>the</strong> same issues. In this case, <strong>the</strong> administrators applied different rules to manage <strong>the</strong> hospitals.
These chaotic environments annoyed all personnel. The university hospitals are institutions governed
by <strong>the</strong> university administrators, namely <strong>the</strong>se institutions are governed to <strong>the</strong> state. Personnel at <strong>the</strong>
hospital such as doctors whose fields are in basic sciences, or administration staff working as
secretaries and employees like nurses, technicians etc., have had a fixed monthly salary and are paid
a fixed monthly contribution money. Therefore, improving health services was not important for some
medical doctors and o<strong>the</strong>r employees who were working in health departments. These people could
get <strong>the</strong>ir monthly money (salary and additional payments) continuously, although <strong>the</strong> income <strong>of</strong> <strong>the</strong>
hospital was not enough to cover all <strong>the</strong> expenses. The university hospitals were not managed like
private hospitals. This situation resulted in bankrupting <strong>the</strong> hospital budget.
There were temporary employees at <strong>the</strong> hospital, too. At that time, except for doctors, health
personnel and administrators, about extra 800 people worked at <strong>the</strong> hospital temporarily. The monthly
salaries <strong>of</strong> <strong>the</strong>se people were very low (lower than US $400). This group did not perform well and <strong>the</strong>
patients and <strong>the</strong>ir relatives were not satisfied about <strong>the</strong> services provided by <strong>the</strong>se people (Varol,
2009a). Therefore, a lot <strong>of</strong> patients preferred to be treated by private hospitals. In <strong>the</strong>se cases,
patients did not need to pay extra fees to <strong>the</strong> private hospitals, because <strong>the</strong> government covered all
expenses by <strong>the</strong> terms <strong>of</strong> <strong>the</strong> Social Health Insurance program in Turkey.
5.2 Overload stocks <strong>of</strong> <strong>the</strong> hospital
The second main problem was <strong>the</strong> stocks <strong>of</strong> <strong>the</strong> hospitals. Formerly, <strong>the</strong> hospital management bought
a lot <strong>of</strong> instruments, medical devices etc., without making supply and demand analysis before <strong>the</strong>y
ordered <strong>the</strong> goods. Since <strong>the</strong>re is a constant change in <strong>the</strong> technology, <strong>the</strong> old accessories could not
be used with new devices. Therefore, although <strong>the</strong>re was a lot <strong>of</strong> stock, it could not be converted into
capital. Because <strong>of</strong> <strong>the</strong> regulations it was not possible to sell <strong>the</strong> devices and materials to <strong>the</strong> market.
So <strong>the</strong>se accessories and tools were thrown away without using most <strong>of</strong> <strong>the</strong>m at least once. The main
problem was not using stock management s<strong>of</strong>tware.
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5.3 Late payment to <strong>the</strong> companies
Asaf Varol
Because <strong>of</strong> a lack <strong>of</strong> capital in <strong>the</strong> budget, <strong>the</strong> companies that supplied medical tools and instruments
to <strong>the</strong> hospital could not receive <strong>the</strong>ir payments on time. Sometimes <strong>the</strong>y had to wait more than a
year. In fact, <strong>the</strong> companies ei<strong>the</strong>r didn’t want to sell any more devices to <strong>the</strong> hospital or <strong>the</strong>y sold
<strong>the</strong>m very expensively. Therefore, <strong>the</strong> hospital had to buy instruments, tools and devices at very high
prices compared with <strong>the</strong> free market.
According to law 4734, trading should be done following certain rules. The rules are very restrictive
and because <strong>of</strong> a lot <strong>of</strong> formalities <strong>the</strong> hospital could not buy <strong>the</strong> devices and instruments easily. If a
company loses a tender it complains to <strong>the</strong> o<strong>the</strong>rs. Because <strong>of</strong> <strong>the</strong>se complaints <strong>the</strong> hospital could not
buy devices on time. Therefore, some services might have been postponed. In <strong>the</strong> health sector
postponing health services cannot be accepted because sometimes <strong>the</strong> patients need immediate
treatment.
5.4 The false behaviour <strong>of</strong> some doctors and health personnel
Some doctors never visited <strong>the</strong> polyclinics to treat <strong>the</strong> patients. Instead, <strong>the</strong>y were checking <strong>the</strong>
patients in <strong>the</strong>ir <strong>of</strong>fice where <strong>the</strong> patients had to pay extra money for it. This extra money was
deposited directly into <strong>the</strong> revolving funds. Later, <strong>the</strong> doctor was receiving a determined percentage <strong>of</strong>
this money. On <strong>the</strong> o<strong>the</strong>r hand, <strong>the</strong> patients were examined by <strong>the</strong> research assistants in <strong>the</strong>
polyclinics.
Some health personnel such as nurses, technicians for anaes<strong>the</strong>sia, and radiologists were not polite
to <strong>the</strong> patients since <strong>the</strong>se people never received customer service training. As a result, <strong>the</strong> majority
<strong>of</strong> <strong>the</strong> patients went to <strong>the</strong> private hospitals where <strong>the</strong>y were treated well by <strong>the</strong> doctors and health
personnel.
6. Reorganizing <strong>the</strong> university hospital management
It was urgently necessary to reorganize <strong>the</strong> university hospitals in order to rescue <strong>the</strong>m from <strong>the</strong>ir
poor financial condition and services. Therefore, new plans were created. In fact, <strong>the</strong>re was enough
human capital at <strong>the</strong> university hospitals. The problem lay with <strong>the</strong> lack <strong>of</strong> creating a new platform
between knowledge and human capital. The former management problems <strong>of</strong> Firat University
Hospital were fixed using SWOT analysis. Some problems occurred because <strong>of</strong> <strong>the</strong> formerly effective
laws and regulations. Establishing new laws and regulations was very difficult, because this power is
wielded by <strong>the</strong> Higher Education Council <strong>of</strong> Turkey, Ministry <strong>of</strong> Finance and by <strong>the</strong> Turkish Assembly.
Most <strong>of</strong> <strong>the</strong> o<strong>the</strong>r universities had <strong>the</strong> same problems. Most <strong>of</strong> <strong>the</strong>m had financial difficulties.
Therefore it was necessary to establish new associations and organizations against <strong>the</strong> above
problems (Varol, 2008, 2009a, 2009b, 2010) and conduct <strong>the</strong> following techniques to improve <strong>the</strong>
quality <strong>of</strong> <strong>the</strong> hospital.
6.1 Incentive scheme at Firat University Hospital
For improving <strong>the</strong> quality <strong>of</strong> care in hospitals, since an existing incentive schema applied to ano<strong>the</strong>r
institution may not cover <strong>the</strong> hospital’s needs, a special incentive schema needs to be created for
each institution. So, an investigation about current situation is very important at this stage.
For Firat University hospital we have created <strong>the</strong> incentive scheme based on Mahon Temple’s study
about characteristic and requirement <strong>of</strong> knowledge workers in four different stages. This study sets up
<strong>the</strong> incentive scheme corresponding to knowledge workers <strong>of</strong> different stages, which can promote
knowledge transfer and sharing in core business process (Zhang et al., 2008).
Knowledge sharing is <strong>the</strong> main point <strong>of</strong> <strong>the</strong> knowledge management. In a hospital sharing <strong>the</strong>
knowledge is not enough to organize <strong>the</strong> whole system well. Therefore, incentive schemes details
given in Table 1 was considered for <strong>the</strong> improving <strong>the</strong> management. First <strong>of</strong> all, <strong>the</strong> characteristics
and requirements for improving and developing <strong>of</strong> <strong>the</strong> personal behaviour were investigated. In <strong>the</strong>
transition period, <strong>the</strong> problems <strong>of</strong> <strong>the</strong> personal were exposed using a suitable orientation. In <strong>the</strong>
development period <strong>the</strong> changes <strong>of</strong> <strong>the</strong> personal behaviour observed, and <strong>the</strong>n, in realization period
<strong>the</strong> balance between incentive schema and reward earning were evaluated.
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Table 1: Incentive schemes for knowledge workers in different stages (Zhang, 2008)
Staff Transition period Development period Realization
period
Characteristic Seek a suitable Seek to reach <strong>the</strong> Reach <strong>the</strong>
orientation for one’s state <strong>of</strong> self-
balance
development in <strong>the</strong> future equilibrium
between
incentive and
rewards
Requirement Have constant pursuit for Work independently, Business
growth <strong>of</strong> knowledge, can finish distributed success
individual and
undertaking
task
Incentive Provide training chances Provide a loose, Knowledge
scheme Provide career advisory independent work signing
environment Knowledge
Promotion
patent
Intensive pay
Stable period
Personal growth
conforms with need
<strong>of</strong> incentive and
rewards
Wealth: get rewards
matching with one’s
contribution
Incentive pay
Incentive property
rights
Social Security
Findings are ga<strong>the</strong>red using surveys that are applied <strong>the</strong> patients. Face-to-face conversations with
personal were ano<strong>the</strong>r method to measure <strong>the</strong> development <strong>of</strong> <strong>the</strong> health personals. Rewards and
promotion were <strong>the</strong> last stage <strong>of</strong> <strong>the</strong> incentive scheme. To determine <strong>the</strong> success <strong>of</strong> <strong>the</strong> personals,
pr<strong>of</strong>essional exams were applied. Successful people promoted in <strong>the</strong>ir departments.
6.2 In training service, creating new rules and organization schema
All employees, especially people who work temporarily at <strong>the</strong> hospital, have been educated by expert
consultants. The importance and benefits <strong>of</strong> a quality service in a hospital was explained to all
employees. After training <strong>the</strong> staff in <strong>the</strong> hospital, <strong>the</strong> satisfaction <strong>of</strong> <strong>the</strong> patients was investigated. The
behaviour <strong>of</strong> <strong>the</strong> temporary employees was followed strictly by <strong>the</strong>ir superiors. If <strong>the</strong>y did not obey <strong>the</strong>
rules determined by <strong>the</strong> hospital administration, <strong>the</strong>y were punished by salary cutting or not renewing
<strong>the</strong>ir contracts for <strong>the</strong> next term.
All duties at <strong>the</strong> hospital have been newly determined. Each person knows and understands his/her
responsibility and which kind <strong>of</strong> duties he/she should perform. Each month <strong>the</strong> improved people have
been rewarded. For example, <strong>the</strong> best administrator <strong>of</strong> <strong>the</strong> months or <strong>the</strong> nurse providing <strong>the</strong> best
care <strong>of</strong> <strong>the</strong> month have been selected and awarded with additional payments, etc.
A new organizing schema was created. All duties have been distributed and team work has been
encouraged. Each month a report has been prepared and service improvements have been followed
by experts. Sometimes SWOT analysis has been performed to fix <strong>the</strong> problems.
6.3 Improvements <strong>of</strong> <strong>the</strong> IT systems <strong>of</strong> hospital
New automated s<strong>of</strong>tware was bought that is integrated with <strong>the</strong> tools used for examining patients. The
Hospital Management Information System (HMIS) improved patient care, patient safety, and
efficiency and reduced costs. This system provides easy access to critical information, enabling
management to make better decisions on time. The entrance <strong>of</strong> <strong>the</strong> employees can be followed by
HMIS using biometric instruments that control <strong>the</strong> fingerprint, finger vein, etc. All images <strong>of</strong> <strong>the</strong>
patients are stored on a picture archiving and communication system (PACS) on <strong>the</strong> HMIS. Vacations
and employees’ absences can be tracked by <strong>the</strong> automated system. Stock control is managed by
HMIS and <strong>the</strong>refore it is not necessary to buy more instruments, medical devices and medication, etc.
6.4 Financial support <strong>of</strong> <strong>the</strong> Ministry <strong>of</strong> Finance
Almost all university hospitals were suffering from poor financial situations, especially before 2011.
From <strong>the</strong> end <strong>of</strong> 2010 and during <strong>the</strong> first half <strong>of</strong> 2011, <strong>the</strong> Ministry <strong>of</strong> Finance has supported
university hospitals. Some university hospitals received a very large amount <strong>of</strong> money, for example
Hacettepe University Hospital received about 144 million Turkish Lira while Firat University Hospital
was supported by 13 million Turkish Lira. This support was very important to pay <strong>of</strong>f <strong>the</strong> hospital’s
debts to <strong>the</strong> medical companies.
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6.5 Association <strong>of</strong> University Hospital Confederation
An important association called <strong>the</strong> University Hospital Confederation (UHB) was established in 2009.
The aim <strong>of</strong> this association is:
To find out <strong>the</strong> problems <strong>of</strong> <strong>the</strong> university hospital,
To evaluate and analysis <strong>the</strong> problems,
To find solutions and submit recommendations,
To share knowledge,
To take initiative for innovation,
To ga<strong>the</strong>r power with increasing to number <strong>of</strong> <strong>the</strong> members,
To act toge<strong>the</strong>r,
To manage human capital, etc.
Although this association was established in 2009, it has already held its ninth meeting and it helped
to prepare a new draft law called ‘The Public Hospital Confederation’. The number <strong>of</strong> people in this
association has increased very rapidly. To be a member <strong>of</strong> this association you have to be a faculty
member <strong>of</strong> a university with at least an academic title <strong>of</strong> assistant pr<strong>of</strong>essor or over. This association
has political power and solved some <strong>of</strong> <strong>the</strong> regulation problems regarding <strong>the</strong> distribution <strong>of</strong> additional
payments to <strong>the</strong> employees at <strong>the</strong> university hospitals.
6.6 Additional salary based on performance system
The Higher Education Council <strong>of</strong> Turkey (YOK) published a new regulation on <strong>the</strong> Official Newspaper
with <strong>the</strong> number 27850 on 18 February 2011. It is called ‘The regulation regarding to <strong>the</strong> method and
fundamentals <strong>of</strong> <strong>the</strong> distributions <strong>of</strong> <strong>the</strong> additional payment that will be done on <strong>the</strong> income <strong>of</strong> <strong>the</strong>
revolving funds at higher education institutions’. This regulation changed many things. The most
important point <strong>of</strong> <strong>the</strong> regulation is <strong>the</strong> performance system that is used for <strong>the</strong> distribution <strong>of</strong>
additional payments. Because <strong>of</strong> <strong>the</strong>se new changes some doctors have received fewer additional
payments while some have got more. Thanks to new regulations doctors who have examined more
patients started to earn more additional payments. However, <strong>the</strong> doctors whose fields belong to <strong>the</strong>
basic medical sciences have lost a lot <strong>of</strong> additional payments because <strong>the</strong>y cannot examine patients.
6.7 Using incentive scheme for providing personal behaviour improvement
Table 2 shows promoted or rewarded people at Firat University Hospital after applying <strong>the</strong> rules <strong>of</strong> <strong>the</strong>
incentive schema in Table 1. Except temporary staff, full time staff, physicians, and academicians
were promoted or rewarded. As it is reflected, <strong>the</strong> most promoted or rewarded people are belonging
to Research Assistant position, since <strong>the</strong>y target to get promoted to a tenure-rank position. These
changes are <strong>the</strong> results in applying incentive schema, new regulations, in service training, and a
good/serious management <strong>of</strong> <strong>the</strong> administrators.
Table 2: Promoted or rewarded personal <strong>of</strong> <strong>the</strong> Hospital during Nov. 2008 and May 2011
Position or Title <strong>of</strong> <strong>the</strong> Personals Number Promoted or %
Rewarded
Pr<strong>of</strong>. Dr. 45 27 60
Assoc. Pr<strong>of</strong>. Dr. 56 30 53
Assist. Pr<strong>of</strong>. Dr. 30 14 47
Research Assistant 289 240 83
Biologist 8 1 13
Nurses 291 150 51
Office Staff 64 5 8
Technologist 63 20 32
Technician 15 5 33
Laboratory Assistant 3 2 67
Temp. Staff 800 0 0
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7. Conclusions
Asaf Varol
Hospitals perform better and earn money if <strong>the</strong>y are directed by expert administrators who can
manage and guide human capital and knowledge management toge<strong>the</strong>r. Working as a team, being
polite and responsible also increased <strong>the</strong> customer satisfaction as well.
For this system, it is necessary to have an up-to-date and effective Hospital Management Information
System (HMIS) to control everything from <strong>the</strong> budget to <strong>the</strong> amount <strong>of</strong> stock, from following <strong>the</strong>
absence <strong>of</strong> <strong>the</strong> employees to measuring and registering <strong>the</strong> performance <strong>of</strong> <strong>the</strong> doctors, health
personnel and o<strong>the</strong>r staff.
Although <strong>the</strong> performance systems have distressed a lot <strong>of</strong> employees whose additional payments
have been decreased, this system needs to be continued. Also, <strong>the</strong>re are still some contradictions in
<strong>the</strong> regulation. They should be improved using analysis such as SWOT.
Thanks to <strong>the</strong> Ministry <strong>of</strong> Finance a large number <strong>of</strong> university hospitals in Turkey could be rescued
from <strong>the</strong>ir poor financial situations, but if <strong>the</strong> hospitals are not managed strictly, <strong>the</strong>ir financial health
can decrease in time. Therefore, <strong>the</strong> administrators <strong>of</strong> <strong>the</strong> hospitals needs to be checked by <strong>the</strong>
Ministry <strong>of</strong> Finance frequently.
It is obligatory to use <strong>the</strong> rules <strong>of</strong> incentive schema seriously to reach <strong>the</strong> maximum efficiency at a
hospital. As shown from Table 2, after applying <strong>the</strong> incentive schema at <strong>the</strong> University Hospital, <strong>the</strong>
satisfying <strong>of</strong> <strong>the</strong> petitions have increased. This results in increasing numbers <strong>of</strong> patients because <strong>the</strong>y
started to prefer University Hospitals for <strong>the</strong>ir health care.
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Experiential Learning on Distance Education
Nurhayat Varol
Firat University, Elazig, Turkey
Nurhayat_varol@yahoo.com
Abstract: Distance education is a teaching method which usage has increased rapidly on <strong>the</strong> last few decades.
The most advantages <strong>of</strong> <strong>the</strong> distance education are to be independent from <strong>the</strong> place and time. Especially for <strong>the</strong>
people who have a job, distance education <strong>of</strong>fers a good opportunity to last lifelong education for everybody.
Thanks to rapid developed information technology <strong>the</strong>re are some new methods used by teaching for technical
courses as a distance. Multimedia is a flexible and creative teaching tool that supports distance education. Using
simulation and animation by course materials on virtual environment enable for <strong>the</strong> students to follow technical
courses like robotics. Experienced learning can be explained as a teaching method where <strong>the</strong> students act <strong>the</strong>
real roles. They learn doing experiment on <strong>the</strong> computer screen. Experiential learning is a knowledge
management <strong>of</strong> <strong>the</strong> human capital. To catch <strong>the</strong> success a team work is necessary for teaching a technical
course online. Human capital is a potential <strong>of</strong> <strong>the</strong> competences, knowledge and personality attributes for <strong>of</strong>fering
a technical course online. A team work is necessary for preparing a learning strategy based on experiential
learning. The main target on experienced learning is to be able to create a bridge between human capital and
knowledge management. We have taught robotics course online since 2001 at Firat University. At that time some
people bearded this method because <strong>the</strong>y adduced that it will not be possible to teach a technical subject as a
distance. We prepared all course materials online supported by animation and simulation. Students experienced
course contents on virtual environment. We followed <strong>the</strong> success <strong>of</strong> all students who have taken robotics courses
online. We built an institution called Distance Education Center where human capital was evaluated and a
creative knowledge management applied. In this paper experiential learning methods that applied at Firat
University are discussed. The organization applied on human capital was evaluated and findings are criticized
and finally some recommendations are <strong>of</strong>fered for <strong>the</strong> management <strong>of</strong> <strong>the</strong> human capitals by robotics course.
Keywords: distance education, online course, robotics, technology related courses
1. Introduction
Each year brings new technological infrastructure improvements. It is obvious that <strong>the</strong>se
improvements change <strong>the</strong> lifestyle <strong>of</strong> <strong>the</strong> community, such as some difficult to perform tasks getting
easier and larger devices are getting smaller, more mobile and portable. One o<strong>the</strong>r improvement that
affects our community is <strong>the</strong> robotic technology and <strong>the</strong>ir applications.
A robot can be described as a mechanical device programmed to perform a manipulative task under
automatic control. Ano<strong>the</strong>r definition for <strong>the</strong> robot is that it is an electro mechanic device that is driven
by a computer program or an operator administrator. Overall, we can say that robotics generally
perform <strong>the</strong> tasks that a human would do. With this definition, <strong>the</strong> devices at our home can be
considered as robots. For instance, <strong>the</strong> iRobot (Sung et al., 2007) is one <strong>of</strong> <strong>the</strong> newest technologies
that sweep <strong>the</strong> floor. Ano<strong>the</strong>r definition for robots is that <strong>the</strong> robots are devices which have at least
one arm, one hand, and sensors to find <strong>the</strong>ir positions that are used in industrial applications. One
common point from all <strong>the</strong>se definitions is that <strong>the</strong> robots can be re-programmed and <strong>the</strong>y have
mechanical parts.
Nowadays, <strong>the</strong> robots are extensively used in industry. Especially <strong>the</strong> robotic applications in auto
industry have yielded better quality product and have speed up <strong>the</strong> process. Most <strong>of</strong> <strong>the</strong> robotic
technology in <strong>the</strong> industry is arm type <strong>of</strong> devices where <strong>the</strong>ir main tasks are to build, install and paint.
Overall, <strong>the</strong> robots have <strong>the</strong> following properties.
Sensors: The sensors are primarily used for location detection.
Brain: The brain is used to decide on <strong>the</strong> momentary actions.
Movement parts: The movement parts apply <strong>the</strong> given directives by brain.
The discussed robotic technology is <strong>the</strong> product <strong>of</strong> Computer Engineering, Mechanical Engineering,
Control Engineering, and Electrical and Electronics Engineering departments. Although <strong>the</strong>se entire
fields play role in Robotics, Mechatronics Engineering is <strong>the</strong> newborn department name for <strong>the</strong>
Robotics related education and research.
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Nurhayat Varol
Distance education <strong>of</strong> this type <strong>of</strong> technology related courses has not been <strong>of</strong>fered extensively, due to
budget constraints, quality <strong>of</strong> <strong>the</strong> education, and several failure stories (Varol, 2010). Moreover,
knowledge management in distance education type <strong>of</strong> course is a challenging task. However, we
have created a framework where <strong>the</strong> instructor act as supervisor at a remote location and students act
as role players in <strong>the</strong>ir class environment without degrading <strong>the</strong> quality <strong>of</strong> education and increasing
<strong>the</strong> human capital.
In this work, first we will discuss distance education and technology related courses. Second, we will
discuss about <strong>the</strong> robotics course that has been <strong>of</strong>fered online at Firat University. At <strong>the</strong> end, we will
evaluate <strong>the</strong> outcome <strong>of</strong> <strong>the</strong> education style and provide some suggestions.
2. Technology related courses in distance education
Distance education (online programs) is getting more attention every day. Online programs courses
do not require physical presence and in most cases it is independent from <strong>the</strong> time. Obviously, <strong>the</strong>se
attract <strong>the</strong> students. From instructor’s perspective, teaching <strong>the</strong> course from any part <strong>of</strong> <strong>the</strong> world and
having a casual presence are <strong>the</strong> tempting points. However, this education system is not only
preferred by students and instructor, but also very vital for educational institutes as well. The
University <strong>of</strong> Phoenix is one <strong>of</strong> <strong>the</strong> well-known distance education conducting institutes which had
approximately 500,000 registered students in <strong>the</strong> 2009-2010 academic year (Phoenix, 2011). The
university <strong>of</strong>fers more than 100 degree programs at <strong>the</strong> associate, bachelor's, master’s and doctoral
levels (Phoenix, 2011). The interest level to Phoenix University also encourages o<strong>the</strong>r classic
educational schools to <strong>of</strong>fer online programs to attract more students from all over <strong>the</strong> world and to
increase <strong>the</strong>ir revenue.
Once, <strong>the</strong> belief was only <strong>the</strong>oretical courses used in online education can achieve <strong>the</strong> expected
quality, since o<strong>the</strong>r science related fields require more visual interaction and representation
(Jesch<strong>of</strong>nig, 2004; Reeves & Kimbrough, 2004; Kostka & Ralston, 2005, Gillet, et al., 2001; and
Villaverde & Kanagiri, 2005). Therefore, <strong>of</strong>fering technology, engineering, science, and medical
related courses were seen seldom. However, having high internet bandwidth, high quality multimedia
items, and virtual simulations helped us to overcome this particular problem. From science to
technology a number <strong>of</strong> courses and online programs have been <strong>of</strong>fered (Martínez-Jiménez, et al.,
2003; Mathiyalagan, et al., 2005; Grunwald, et al., 2005; Bicchi, et al., 2001; and Dormido, 2002).
Although <strong>the</strong>se courses and online programs posted success stories, <strong>the</strong>y have not compared <strong>the</strong>
student success while applying different online teaching techniques.
In a recent study <strong>the</strong> authors discussed <strong>the</strong> analysis <strong>of</strong> student to student, student to instructor, and
student to content interaction in distance education (Bernard, et al., 2009). The authors found out a
strong association between strength and achievement for asynchronous DE (Distance Education)
courses compared to courses containing mediated synchronous or face-to-face interaction.
Greenhow, et al. discussed about <strong>the</strong> two important <strong>the</strong>mes, learner participation and creativity and
online identity formation, emerged from <strong>the</strong>ir analysis and support a new wave <strong>of</strong> research questions
in distance education (Greenhow, et al., 2009). However, after three decades <strong>of</strong> technology initiatives
in <strong>the</strong> U.S., high levels <strong>of</strong> integration <strong>of</strong> technology with classroom learning remains much more <strong>the</strong>
exception than <strong>the</strong> rule (Low<strong>the</strong>r, et al., 2009).
3. Robotics Course at Firat University
The robotics course at Firat University has been <strong>of</strong>fered under Electronics and Computer Education
Department since 1994 and online since 2001. The students from Sakarya and Kahramanmaras
Sutcu Imam Universities joined <strong>the</strong> online classroom in <strong>the</strong>ir respective universities. The students
graduated from <strong>the</strong>se universities have been appointed to work in high schools to teach electronics
and/or computer related courses.
We used two different teaching techniques, student-centered online education (SCOE) and hybrid
type <strong>of</strong> online education (HTOE), to compare <strong>the</strong> quality <strong>of</strong> <strong>the</strong> education using virtual environment.
Therefore, each class was randomly separated into two different sections. SCOE is applied to one
section and HTOE is applied to ano<strong>the</strong>r section. Although <strong>the</strong>re were significant differences in <strong>the</strong>
educational styles, in both techniques, <strong>the</strong> <strong>the</strong>oretical foundations <strong>of</strong> <strong>the</strong> robots and automation
systems were always virtually presented by <strong>the</strong> instructor, students worked as a group in Robotics
project, and both groups took <strong>the</strong> exact same exams.
588

3.1 SCOE
Nurhayat Varol
In this technique, <strong>the</strong> history and fundamental topics <strong>of</strong> <strong>the</strong> robotics were discussed by <strong>the</strong> instructor.
Since this is a distance education, <strong>the</strong> course materials were prepared as power point presentations,
with <strong>the</strong> additions <strong>of</strong> videos and animations. Students also presented advanced course topics to <strong>the</strong>
audience (20 points). The students at remote locations had immediate access to <strong>the</strong> robotic
equipment. Therefore, with analyzing <strong>the</strong> lecture materials and getting support from o<strong>the</strong>r classmates,
students applied <strong>the</strong> <strong>the</strong>oretical knowledge on <strong>the</strong> robotic sets as a final project (30 points). Moreover
<strong>the</strong> students had to take one midterm (20 points) and one final exam (30 points) during <strong>the</strong> course
work.
3.1.1 Lecture and presentations (20 points)
Later in <strong>the</strong> semester, <strong>the</strong> students conducted a 15 minutes online presentation related with robotic
topics, such as automation, carrying <strong>the</strong> materials automatically, robotics versus humans, <strong>the</strong>
application areas <strong>of</strong> robotics, types <strong>of</strong> robots, arm type robots, robot sensors, programming languages
that are used in robotics, programming syntax and rules, and o<strong>the</strong>r type <strong>of</strong> robots. These topics were
interactively discussed in <strong>the</strong> virtual classroom where <strong>the</strong> audience (students) asked questions or
commented about <strong>the</strong>m. Basically, this knowledge management addressed how to transform
individualized learning into organizational learning in order to build a knowledge sharing culture. The
students also used power point and/or video techniques during <strong>the</strong>ir presentations. If necessary, <strong>the</strong>
gained <strong>the</strong>oretical knowledge was applied to <strong>the</strong> robotic sets in <strong>the</strong>ir respective institutes. At <strong>the</strong> end,
students prepared a report <strong>of</strong> <strong>the</strong>ir findings and deliver it to <strong>the</strong> course instructor online. The
evaluation criteria for <strong>the</strong> presentations were shown in Table 1.
Table 1: Student presentation evaluation criteria
Date: Student Name: Topic: A B C D E F G H I Total Comments
No:
Date: This particular field represents <strong>the</strong> date <strong>of</strong> <strong>the</strong> presentation.
Student No: This field represents <strong>the</strong> students’ school number.
Name: This field consists <strong>of</strong> first and last name <strong>of</strong> <strong>the</strong> student.
Topic: This field shows <strong>the</strong> name <strong>of</strong> <strong>the</strong> selected topic.
A: (1 point) There is a dire need to keep up with <strong>the</strong> changes in Robotics area to be successful. Therefore, this
grading field is based on to see whe<strong>the</strong>r <strong>the</strong> presentation contains up-to date information.
B: (2 points) One <strong>of</strong> <strong>the</strong> main goal <strong>of</strong> <strong>the</strong> course is to encourage students to learn how to do a research and use
<strong>the</strong> databases in <strong>the</strong> library. Therefore, this grading field is based on to see whe<strong>the</strong>r <strong>the</strong> student did <strong>the</strong>
necessary research study to find relevant information from <strong>the</strong> internet and available databases.
C: (1 point) Our ano<strong>the</strong>r goal is to teach our students how to write a report and use appropriate citation
techniques. For <strong>the</strong> delivered report, we require our students to use APA style bibliography for citations.
Therefore, this grading is to see if <strong>the</strong> student knows how to cite a paper and use appropriate technique for it.
D: (2 points) Since <strong>the</strong> department raises electronics and computer educators, our ano<strong>the</strong>r aim is to help our
students with <strong>the</strong>ir writing skills. Although writing courses are taken in freshmen and sophomore year, <strong>the</strong>ir
writing skills in <strong>the</strong> report were still evaluated in this course.
E: (4 points) One <strong>of</strong> <strong>the</strong> effective teaching techniques is considered as to bring visual effects to <strong>the</strong> lecture (Varol,
2010). Therefore, we designated 20 points to see if <strong>the</strong> student used animation and videos during his/her
presentation.
F: (2 points) Ano<strong>the</strong>r grading criteria is <strong>the</strong> presentation skills. We’d like to give feedback about <strong>the</strong> student’s
presentation skills so that <strong>the</strong>y can improve <strong>the</strong>ir ability to talk and teach.
G: (2 points) This particular grading is based on student’s knowledge about <strong>the</strong> discussed topic.
H: (2 points) The interactive skills with <strong>the</strong> virtual classroom is evaluated under this grading field.
I: (4 points) During or after <strong>the</strong> presentation, <strong>the</strong> presenter are asked questions (QA session) by <strong>the</strong> audience.
Handling <strong>of</strong> <strong>the</strong>se questions and providing satisfying answers are part <strong>of</strong> <strong>the</strong> grading.
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Nurhayat Varol
Total: (Out <strong>of</strong> 20 points) This field represents <strong>the</strong> final grade from <strong>the</strong> presentation and <strong>the</strong> report.
Comments: The instructor takes a note <strong>of</strong> his/her observations to this field.
At <strong>the</strong> end, a detailed report <strong>of</strong> <strong>the</strong> student’s grading was distributed. The report also covered comments from <strong>the</strong>
instructor.
3.1.2 Project (30 points)
The students were divided into a group <strong>of</strong> four. Each group proposed a research topic for <strong>the</strong> project.
If <strong>the</strong> project was approved by <strong>the</strong> instructor, <strong>the</strong> students shared <strong>the</strong> tasks among its group members
and worked on <strong>the</strong> case for 2 weeks with <strong>the</strong> robot set <strong>the</strong>y had in <strong>the</strong>ir institutes. In order to build a
strong human capital, <strong>the</strong> students determined <strong>the</strong> task distribution based on <strong>the</strong> skill set <strong>of</strong> each
group member. At <strong>the</strong> end, <strong>the</strong> students prepared <strong>the</strong> robot set and in virtual environment
demonstrated <strong>the</strong>ir project to <strong>the</strong>ir classmates and to <strong>the</strong> instructor. The instructor manages <strong>the</strong>
performance <strong>of</strong> <strong>the</strong> students by evaluating <strong>the</strong>ir project based on <strong>the</strong> originality <strong>of</strong> <strong>the</strong> topic (5 points),
quality <strong>of</strong> <strong>the</strong> presentation (body language, using multimedia, etc.) (5 points), QA session (5 points),
robot demonstration (5 points), quality <strong>of</strong> coding (5 points), and final report (5 points)
3.1.3 Exams (50 points)
The students took two online exams, one midterm and one final exam. The midterm exam was worth
<strong>of</strong> 20 points and <strong>the</strong> final exam was worth <strong>of</strong> 30 points.
3.2 HTOE
Compared to SCOE, in this type <strong>of</strong> education, <strong>the</strong> course topics were only discussed by <strong>the</strong> instructor
in virtual environment. Besides <strong>the</strong> presentations, videos and animations, <strong>the</strong> instructor demonstrated
<strong>the</strong> key topics on <strong>the</strong> robotic set. Students were only responsible for a project (40 points), a midterm
(25 points), and a final exam (35 points).
3.2.1 Project (50 points)
In this type <strong>of</strong> education, <strong>the</strong> instructor provided a list <strong>of</strong> projects to <strong>the</strong> students. Once again <strong>the</strong>
students formed <strong>the</strong>ir project group (4 people). After <strong>the</strong>y form <strong>the</strong>ir group, <strong>the</strong>y selected a project
topic from <strong>the</strong> list. Compared to SCOE, <strong>the</strong> students did not have direct access to <strong>the</strong> robot sets.
Therefore, <strong>the</strong> students used <strong>the</strong> knowledge that <strong>the</strong>y previously gained from modeling and simulation
course to build <strong>the</strong>ir project simulations. At <strong>the</strong> end, <strong>the</strong> students virtually demonstrated <strong>the</strong>ir project to
<strong>the</strong>ir classmates and to <strong>the</strong> instructor. The instructor evaluated <strong>the</strong>ir project based on <strong>the</strong> quality <strong>of</strong>
<strong>the</strong> presentation (body language, using multimedia, representation, etc.) (10 points), QA session (10
points), modeling (10 points), simulation (10 points), and final report (10 points).
3.2.2 Exams (50 points)
The students took <strong>the</strong> exact same exams with <strong>the</strong> SCOE section. In detail, virtually one midterm and
one final exam were conducted where each <strong>of</strong> <strong>the</strong>m worth 20 and 30 points respectively.
4. Discussions and conclusions
The discussed techniques were applied for 5 years to <strong>the</strong> robotics course. The distance education
center in Firat University collected <strong>the</strong> statistical data from <strong>the</strong> instructor to evaluate <strong>the</strong> effectiveness
<strong>of</strong> <strong>the</strong> teaching techniques. As represented in Figure 1 and Figure 2, each year <strong>the</strong> average student
success in <strong>the</strong> exams were higher in SCOE.
Also a survey was conducted to all students during those 5 years. According to <strong>the</strong> survey results,
85% <strong>of</strong> <strong>the</strong> students felt comfortable during <strong>the</strong>ir project presentations because that <strong>the</strong>y performed
lecture presentations earlier. While 83% <strong>of</strong> <strong>the</strong> students in SCOE type <strong>of</strong> education sad happiness
with <strong>the</strong> course, only 62% <strong>of</strong> students in HTOE type <strong>of</strong> education were satisfied with it. Although 52%
<strong>of</strong> <strong>the</strong> students in SCOE type education were not comfortable with teaching <strong>the</strong> course materials by
<strong>the</strong>mselves, 78% claimed that <strong>the</strong>y have learned more by teaching <strong>the</strong> materials. An average <strong>of</strong> 92%
<strong>of</strong> <strong>the</strong> students felt <strong>the</strong> distance education did not have any negative impact on learning <strong>the</strong> course
materials.
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Nurhayat Varol
Figure 1: Average student grades in Midterm Exam
Figure 2: Average student grades in Final Exam
The students had experiential learning throughout <strong>the</strong> course period with both <strong>of</strong> <strong>the</strong> discussed
techniques. They were able to combine (manage) <strong>the</strong> knowledge gained from <strong>the</strong> instructor, videos
and animations, feedback from <strong>the</strong> classmates and doing hands on experience with <strong>the</strong> robotic set. In
o<strong>the</strong>r words, <strong>the</strong> students leveraged <strong>the</strong> knowledge internally and externally in order to achieve
success from this course. However, as shown above, <strong>the</strong> human capital gained from SCOE is more
collective and effective compared to <strong>the</strong> HTOE.
As reflected by <strong>the</strong> results, online teaching <strong>of</strong> technology related courses can provide satisfying
results. However, <strong>the</strong>se types <strong>of</strong> courses require different teaching materials and facilities. Putting <strong>the</strong>
student in <strong>the</strong> center <strong>of</strong> <strong>the</strong> education, supporting <strong>the</strong> course with variety <strong>of</strong> multimedia items and
having <strong>the</strong> student to perform <strong>the</strong> lecture materials on <strong>the</strong> real-environment increased <strong>the</strong> student’s
knowledge in <strong>the</strong> topics and student’s self-confidence.
591

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Nurhayat Varol
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592

Organizational Learning Rate Measurement Instruments for
Business Schools
Karen Voolaid and Üllas Ehrlich
Tallinn School <strong>of</strong> Economics and Business Administration at Tallinn University
<strong>of</strong> Technology, Estonia
karen.voolaid@tseba.ttu.ee
ullas.ehrlich@tseba.ttu.ee
Abstract: The article presents new instruments for measuring <strong>the</strong> organizational learning rate <strong>of</strong> business
schools as organizations. The development <strong>of</strong> a new instrument was caused by <strong>the</strong> fact that business schools
are specific organizations which possess <strong>the</strong> characteristics <strong>of</strong> both public universities and business
organizations, and <strong>the</strong> learning organization questionnaire developed by Watkins and Marsick, which has up to
present been widely used for measuring <strong>the</strong> organizational learning, has been mainly designed for measuring <strong>the</strong>
organizational learning <strong>of</strong> a business organization and in many aspects does not take <strong>the</strong> peculiarities <strong>of</strong> a
business school into account. The composition, structure and length <strong>of</strong> Dimensions <strong>of</strong> Learning Organization
Questionnaire (DLOQ) developed by Watkins and Marsick have been used as a basis for developing a
questionnaire expedient for business schools. About 50% <strong>of</strong> <strong>the</strong> DLOQ characteristics which are <strong>the</strong> most
adequate for business schools have not been changed, <strong>the</strong> rest ones have been replaced by <strong>the</strong> characteristics
which consider <strong>the</strong> peculiarities <strong>of</strong> a business school. The DLOQ characteristics, which have been retained
unchanged in <strong>the</strong> questionnaire, were selected on <strong>the</strong> basis <strong>of</strong> an empirical study, where <strong>the</strong> employees <strong>of</strong> <strong>the</strong>
Tallinn School <strong>of</strong> Economics and Business Administration (TSEBA) had evaluated <strong>the</strong> relevance <strong>of</strong> <strong>the</strong> DLOQ
characteristics for measuring <strong>the</strong> organizational learning rate <strong>of</strong> a business school as a learning organization.
New characteristics, which take <strong>the</strong> peculiarities <strong>of</strong> business schools into consideration (e. g. creation <strong>of</strong> powerful
learning environment and learning processes that co-focus on academic/scientific methods and practice/applied
connections, active dialogue between business school and business sector, teaching integrated courses, a
mechanism for sharing interdisciplinary knowledge, involvement in <strong>the</strong> process <strong>of</strong> creating a common vision,
creation <strong>of</strong> external partnerships and interaction on both business school and business, business school leaders'
capacity and willingness to model collaborative action), were developed according to <strong>the</strong> research on universities
and business schools as organizations; <strong>the</strong> mission, management and organizational structure <strong>of</strong> a business
school were specifically reckoned with. On <strong>the</strong> basis <strong>of</strong> <strong>the</strong> findings a learning organization questionnaire
appropriate for business schools, which will enable to measure and compare <strong>the</strong> learning rates <strong>of</strong> different
business schools as organizations, was constructed.
Keywords: business school, university, organizational learning, learning rate, organizational learning
measurement instruments
1. Introduction
High-quality economic and business education is one <strong>of</strong> <strong>the</strong> most important factors <strong>of</strong> economic
competitiveness and sustainability, as business schools are expected to assure <strong>the</strong> graduates’
competitiveness and satisfy <strong>the</strong> employers’ demands, and provide <strong>the</strong>ir graduates with a potential for
life-long learning. All that shows <strong>the</strong> high expectations and responsibility business schools have to
face, and which <strong>the</strong>y are capable <strong>of</strong> responding to only by continuously improving and upgrading <strong>the</strong>ir
organization.
In practice it is solely possible when a business school meets <strong>the</strong> criteria <strong>of</strong> a learning organization.
The term ‘learning organization’ was for <strong>the</strong> first time used in <strong>the</strong> seventies (Argyris 1976), and having
been continuously improved it has developed into a cornerstone <strong>of</strong> both an organization <strong>the</strong>ory and
organizational development practices.
The present paper seeks to develop such learning organization instruments that would be appropriate
for business schools and which take into account business schools’ missions, <strong>the</strong>ir specific tasks and
<strong>the</strong>ir organizational and structural peculiarities. In <strong>the</strong>ir previous research, in order to measure <strong>the</strong>
university learning rates, <strong>the</strong> authors have used Watkins and Marsick’s Learning Organization
Questionnaire (Voolaid and Ehrlich 2010, 2011). Business schools have many tasks and functions in
society that business organizations are usually not involved in. Therefore a question arises whe<strong>the</strong>r
<strong>the</strong> Watkins and Marsick’s questionnaire is adequate for assessing business schools as learning
organizations and for objectively and comprehensively measuring <strong>the</strong>ir learning rate. Watkins and
Marsick’s questionnaire has primarily been developed for measuring <strong>the</strong> learning rate <strong>of</strong> business
organizations, and it does not take into consideration <strong>the</strong> specific features <strong>of</strong> a business school, and
<strong>the</strong>refore may not describe business schools as learning organizations adequately enough. To devise
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specific measures for business schools <strong>the</strong> authors have, by using empirical data, modified <strong>the</strong>
questionnaire developed by Watkins and Marsick, and included characteristics and components that
take into account <strong>the</strong> peculiarities <strong>of</strong> a business school.
The paper is structured as follows: <strong>the</strong> second chapter <strong>of</strong> <strong>the</strong> article gives an overview <strong>of</strong> <strong>the</strong> literature
on business schools as learning organizations; <strong>the</strong> third chapter deals with measuring <strong>the</strong>
organizational learning rate and relevant measurement tools; <strong>the</strong> fourth chapter considers <strong>the</strong>
expediency <strong>of</strong> using Watkins and Marsick’s Questionnaire (DLOQ) for measuring <strong>the</strong> learning rate <strong>of</strong>
business schools and <strong>the</strong> survey DLOQ carried out in TSEBA in order to ascertain characteristics
applicable to business schools. The aforementioned chapter covers all DLOQ characteristics with
<strong>the</strong>ir scores that indicate <strong>the</strong>ir relevance, and according to which <strong>the</strong> applicability <strong>of</strong> a characteristic in
<strong>the</strong> new questionnaire will be determined. The fifth chapter presents <strong>the</strong> specific characteristics, which
were developed by <strong>the</strong> authors <strong>of</strong> <strong>the</strong> article, with appropriate argumentation for each dimension
(subsections 5.1-5.7). References to <strong>the</strong> literature and relevant reviews, according to which <strong>the</strong> new
characteristics were developed, have been given in <strong>the</strong> beginning <strong>of</strong> <strong>the</strong> subsections which deal with
DLOQ dimensions, just before presenting <strong>the</strong> new characteristics formulated by <strong>the</strong> authors.
Unfortunately <strong>the</strong> length <strong>of</strong> <strong>the</strong> article does not allow presenting <strong>the</strong> whole new questionnaire which
was developed for measuring <strong>the</strong> organizational learning rate. Although, <strong>the</strong> chapters four and five
cover all new characteristics (according to DLOQ dimensions), which would make it possible for <strong>the</strong>
reader to easily formulate <strong>the</strong> questionnaire for measuring <strong>the</strong> organizational learning rate, and
implement it in business schools.
2. Universities and business schools as learning organizations
Many authors (e.g. Baldridge 1983, Birnbaum 1988, Clark 1987) point out that universities differ from
o<strong>the</strong>r organizations in many ways, e.g. universities are non-pr<strong>of</strong>it organizations, <strong>the</strong>ir missions tend to
be more diffuse and vague; <strong>the</strong>y have to meet demands <strong>of</strong> a complex mix <strong>of</strong> stakeholders - internal
and external; <strong>the</strong>y rely on traditions, tend to individualism, and have problems <strong>of</strong> adaptability. There
have been various discussions about universities as learning organizations (Lorange 1997, Portfelt
2006, White and Wea<strong>the</strong>rsby 2005, Willcoxon 2002). The authors discuss different aspects in a
university, which are important, if we view our universities as learning universities. The most important
characteristics <strong>of</strong> a university as a learning organization are: <strong>the</strong> university structure, culture, <strong>the</strong> role
<strong>of</strong> leaders and teamwork, and <strong>the</strong> role <strong>of</strong> <strong>the</strong> university in society.
Business schools are specific organizations which possess characteristics <strong>of</strong> both public universities
and business organizations. In addition to common characteristics with universities, business schools
also have many specific features that could be used for measuring <strong>the</strong> learning rate <strong>of</strong> business
schools as organizations. Unfortunately business schools have not been much studied as learning
organizations except Lorange, who has developed <strong>the</strong> aggregate learning partner model (Lorange
1997).
The aggregate learning partner model developed by Lorange pictures <strong>the</strong> development <strong>of</strong> partnership
relations between business schools and companies as learning organizations. The aggregate learning
partner model should thus ideally lead to four complementary sets <strong>of</strong> learning organization focuses at
<strong>the</strong> business school, but where <strong>the</strong> research dimension should be <strong>the</strong> main driver for choosing
learning partner companies: 1) Research activities-research topics both from <strong>the</strong> faculty`s and from
<strong>the</strong> client organization`s point <strong>of</strong> view; 2) Discovery event patterns develop meaningful patterns <strong>of</strong>
knowledge focuses, which can be discussed and expanded with <strong>the</strong> clients, based on underlying joint
client interests; 3) The portfolio <strong>of</strong> open teaching programs would be structured according to what <strong>the</strong>
companies need; 4) In-company tailored programs should reflect <strong>the</strong> specific strategic needs <strong>of</strong> each
major client (Lorange 1997).
3. Learning organization measurement tools
There have been <strong>the</strong>oretical discussions about universities and business schools as learning
organizations, but empirical research in this field has been rare. There is a variety <strong>of</strong> tools available
for measuring and evaluating learning organizations. Through <strong>the</strong> literature review, seven such
measurement instruments were identified: <strong>the</strong> Complete Learning Organization Benchmark (Mayo
and Lank 1994), <strong>the</strong> Learning Company Questionnaire (Pedler et al. 1991), <strong>the</strong> Learning Environment
Survey (Tannenbaum 1997), <strong>the</strong> Learning Audit (Pearn 1995), <strong>the</strong> Recognizing Your Organization
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Karen Voolaid and Üllas Ehrlich
(Sarala and Sarala 1996), <strong>the</strong> Learning Organization Capability Assessment (Redding and
Catalanello 1997).
The dimensions <strong>of</strong> <strong>the</strong> learning organization questionnaire (DLOQ) have been developed by Watkins
and Marsick (1996) to analyze learning organizations; <strong>the</strong> authors are <strong>of</strong> <strong>the</strong> opinion that learning
organizations can be developed purposefully.
K. E. Watkins and V. J. Marsick identified seven distinct but interrelated dimensions <strong>of</strong> a learning
organization at <strong>the</strong> three levels. Each dimension has its own criteria (Yang et al. 2004). Watkins and
Marsick identify seven dimensions <strong>of</strong> <strong>the</strong> learning organization, which are 1) provide continuous
learning opportunities, 2) foster inquiry and dialogue, 3) promote collaboration and team learning, 4)
create systems to capture and transform learning, 5) foster movement toward a collective vision, 6)
connect <strong>the</strong> organization to its external environment, and 7) provide strategic leadership for learning.
Many researchers <strong>of</strong> <strong>the</strong> learning organization have later specifically used Watkins and Marsick’s
questionnaire in <strong>the</strong>ir research (Jamali, Sidani and Zouein 2009; Basim, Sesen and Korkmazurek
2007; Hernandez and Watkins 2003).
So far <strong>the</strong> DLOQ by Watkins& Marsick has mainly been used for business organizations and not for
universities. The current study is an attempt to fulfill this gap and use <strong>the</strong> DLOQ to evaluate business
schools as learning organizations.
4. Suitability and adaptation <strong>of</strong> Watkins and Marsick’s characteristics <strong>of</strong>
DLOQ for business schools
In order to learn whe<strong>the</strong>r and to what extent Watkins and Marsick’s questionnaire conforms to <strong>the</strong>
specificity <strong>of</strong> a business school as an organization, <strong>the</strong> authors asked <strong>the</strong> employees <strong>of</strong> <strong>the</strong> Tallinn
School <strong>of</strong> Economics and Business Administration (TSEBA) to assess <strong>the</strong> importance <strong>of</strong> all learning
organization characteristics in Watkins and Marsick’s questionnaire for a business school as an
organization. TSEBA is <strong>the</strong> most appropriate organization for testing <strong>the</strong> importance <strong>of</strong> W&M
questionnaire characteristics for a business school because it has <strong>the</strong> qualities <strong>of</strong> both a university
and a business school. Hence, TSEBA as an organization has <strong>the</strong> commercial component <strong>of</strong> a
business school and academic components characteristic to a research institution well balanced and
<strong>the</strong> judgment by TSEBA employees <strong>of</strong> <strong>the</strong> relative importance <strong>of</strong> W&M characteristics simultaneously
takes into account <strong>the</strong> aspects typical to both a university and a business school. The latter fact adds
greater generalization power to <strong>the</strong> judgment by <strong>the</strong> TSEBA staff. The employees <strong>of</strong> TSEBA were
asked to assess <strong>the</strong> characteristics in a six point scale (1−utterly unimportant, 6−extremely important).
This questionnaire, which included 43 questions, was sent to employees by e-mail and <strong>the</strong>y were
asked to complete <strong>the</strong> questionnaire electronically; it was also possible to complete it in paper.
Approximately half <strong>of</strong> <strong>the</strong> total number <strong>of</strong> <strong>the</strong> TSEBA personnel, 63 employees in total, responded to
<strong>the</strong> questionnaire. The respondents represented all levels <strong>of</strong> <strong>the</strong> organization − managerial,
administrative and teaching staff. The results are presented in Table 1 by levels and dimensions. The
scores <strong>of</strong> levels and dimensions are formed <strong>of</strong> <strong>the</strong> arithmetic mean <strong>of</strong> <strong>the</strong> values <strong>of</strong> respective
characteristics.
The survey conducted by <strong>the</strong> authors indicated that <strong>the</strong> importance <strong>of</strong> various characteristics in
Watkins and Marsick’s questionnaire at <strong>the</strong> relatively high average importance for characterizing a
business school as a learning organization still varies considerably. For supplementing <strong>the</strong>
questionnaire, to make it better characterize a business school as a learning organization, inevitably a
question arises about <strong>the</strong> structure <strong>of</strong> <strong>the</strong> questionnaire and amending or replacing individual
characteristics. It is difficult to define a completely objective criterion for that.
Considering that Watkins and Marsick’s questionnaire has been used for a long time to measure a
learning organization, and it has quite justified itself, <strong>the</strong> authors find it expedient to maintain <strong>the</strong>
division <strong>of</strong> <strong>the</strong> overall structure <strong>of</strong> <strong>the</strong> questionnaire into levels, dimensions and characteristics, and
include some specific and important dimensions for a business school. Considering <strong>the</strong> need to add
characteristics it would be nei<strong>the</strong>r appropriate nor expedient to make <strong>the</strong> questionnaire longer by
retainig all <strong>the</strong> characteristics in Watkins and Marsick’s questionnaire and mechanically adding
specific characteristics <strong>of</strong> a business school.
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The authors replace characteristics on <strong>the</strong> basis <strong>of</strong> <strong>the</strong> survey results conducted at TSEBA, at <strong>the</strong>
same time not significantly changing <strong>the</strong> structure and hierarchic setup <strong>of</strong> Watkins and Marsick’s
questionnaire, since <strong>the</strong>ir objective was not to develop a completely new questionnaire but to adjust
Watkins and Marsick’s questionnaire to make it more suitable for measuring a business school as a
learning organization. A criterion for <strong>the</strong> replacement was <strong>the</strong> median score <strong>of</strong> characteristics − 4.91.
The characteristics, which received this amount or more points, were not replaced and <strong>the</strong>ir
formulation was not changed significantly. The subsequent criterion was that not more than 50% <strong>of</strong>
<strong>the</strong> questions were replaced in any <strong>of</strong> <strong>the</strong> dimensions <strong>of</strong> Watkins and Marsick’s questionnaire. The
questionnaire with <strong>the</strong> maintained and omitted characteristics and <strong>the</strong> scores included is presented by
dimensions in Table 1 (omitted characteristics are in italics).
Table 1: Evaluation <strong>of</strong> Watkins and Marsick’s learning organization characteristics by TSEBA
employees
Individual level 5.04
1.provide continuous learning opportunities 4.95
5 In my organization, people are given time to support learning 5.14
1 In my organization, people openly discuss mistakes in order to learn from <strong>the</strong>m 5.11
3 In my organization, people help each o<strong>the</strong>r learn 5.11
6 In my organization, people view problems in <strong>the</strong>ir work as an opportunity to learn 5.09
4 In my organization, people can get money and o<strong>the</strong>r resources to support <strong>the</strong>ir learning 4.91
2 In my organization, people identify skills <strong>the</strong>y need for future work tasks 4.80
7 In my organization, people are rewarded for learning 4.47
2. foster inquiry and dialogue 5.13
12 In my organization, people treat each o<strong>the</strong>r with respect 5.63
8 In my organization, people give open and honest feedback to each o<strong>the</strong>r 5.26
11 In my organization, whenever people state <strong>the</strong>ir view, <strong>the</strong>y also ask what o<strong>the</strong>rs think 5.09
9 In my organization, people listen to o<strong>the</strong>rs' views before speaking 5.06
10 In my organization, people are encouraged to ask "why" regardless <strong>of</strong> rank 4.97
13 In my organization, people spend time building trust with each o<strong>the</strong>r 4.80
Team or group level 4.84
3. promote collaboration and team learning 4.84
15 In my organization, teams/groups treat members as equals, regardless <strong>of</strong> rank, culture, or o<strong>the</strong>r
differences
16 In my organization, teams/groups focus both on <strong>the</strong> group's task and on how well <strong>the</strong> group is
working
17 In my organization, teams/groups revise <strong>the</strong>ir thinking as a result <strong>of</strong> group discussions or
information collected
19 In my organization, teams/groups are confident that <strong>the</strong> organization will act on <strong>the</strong>ir
recommendations
14 In my organization, teams/groups have <strong>the</strong> freedom to adapt <strong>the</strong>ir goals as needed 4.46
18 In my organization, teams/groups are rewarded for <strong>the</strong>ir achievements as a team/group 4.46
Organizational level 4.83
4. create systems to capture and transform learning 4.70
21 My organization enables people to get needed information at any time quickly and easily 5.34
24 My organization makes its lessons learned available to all employees 4.74
20 My organization uses two-way communication on a regular basis, such as suggestion systems,
electronic bulletin boards, or town hall/open meetings
23 My organization creates systems to measure gaps between current and expected performance 4.55
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5.18
5.03
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Karen Voolaid and Üllas Ehrlich
22 My organization maintains an up-to-date data base <strong>of</strong> employee skills 4.48
25 My organization measures <strong>the</strong> results <strong>of</strong> <strong>the</strong> time and resources spent on training 4.43
5. foster movement toward a collective vision 4.79
26 My organization recognizes people for taking initiative 5.00
28 My organization invites people to contribute to <strong>the</strong> organization's vision 4.97
27 My organization gives people choices in <strong>the</strong>ir work assignments 4.80
29 My organization gives people control over <strong>the</strong> resources <strong>the</strong>y need to accomplish <strong>the</strong>ir work 4.74
31 My organization builds alignment <strong>of</strong> visions across different levels and work groups 4.63
30 My organization supports employees who take calculated risks 4.55
6. connect <strong>the</strong> organization to its external environment 4.71
33 My organization encourages people to think from a global perspective 5.06
37 My organization encourages people to get answers from across <strong>the</strong> organization when solving
problems
36 My organization works toge<strong>the</strong>r with <strong>the</strong> outside community to meet mutual needs 4.79
35 My organization considers <strong>the</strong> impact <strong>of</strong> decisions on employee morale 4.57
34 My organization encourages everyone to bring <strong>the</strong> customers' views into <strong>the</strong> decision making
process
32 My organization helps employees balance work and family 4.47
7. provide strategic leadership for learning 5.12
43 In my organization, leaders ensure that <strong>the</strong> organization's actions are consistent with its values 5.51
38 In my organization, leaders generally support requests for learning opportunities and training 5.26
42 In my organization, leaders continually look for opportunities to learn 5.15
39 In my organization, leaders share up to date information with employees about competitors,
industry trends, and organizational directions
41 In my organization, leaders mentor and coach those <strong>the</strong>y lead 5.03
40 In my organization, leaders empower o<strong>the</strong>rs to help carry out <strong>the</strong> organization's vision 4.69
5. New specific characteristics for business schools
To work out new characteristics which would take into account <strong>the</strong> specific nature <strong>of</strong> business schools
<strong>the</strong> authors used studies discussing universities and business schools as organizations, taking
specifically into consideration <strong>the</strong> mission, structure <strong>of</strong> management and organisation <strong>of</strong> <strong>the</strong> business
schools. Fur<strong>the</strong>r, all <strong>the</strong> seven dimensions <strong>of</strong> Watkins and Marsick’s DLOQ are analyzed separately
and discussed regarding to <strong>the</strong>ir importance in <strong>the</strong> business school context, and new specific
characteristics for business schools are presented based on available studies about university and
business school as an organization.
5.1 First dimension − provide continuous learning opportunities
In <strong>the</strong> business context, <strong>the</strong> dimension <strong>of</strong> learning opportunities means that an organization <strong>of</strong>fers its
employees diverse opportunities: participation in training courses, conferences, visiting business
schools abroad, continuing education, life-long learning; university employees are systematically
trained and developed; possibilities are created for <strong>the</strong> employees’ pr<strong>of</strong>essional development and
career. In order to create learning organization it is important that business schools provide powerful
learning environments. Learning processes that co-focus on academic/scientific methods and
practice/applied connections and continuing education and learning are obviously a big challenge and
a great opportunity for business schools (Sattelberger 2011).
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Karen Voolaid and Üllas Ehrlich
New specific characteristics for <strong>the</strong> 1st dimension:
In my business school, powerful learning environment and learning processes that co-focus on
academic/scientific methods and practice/applied connections are created.
My business school keeps contributing to <strong>the</strong> development <strong>of</strong> managers` knowledge and
capabilities: many continuous education opportunities are created for business school graduates.
5.2 Second dimension − foster inquiry and dialogue
Nei<strong>the</strong>r <strong>the</strong> dialogue nor teamwork are <strong>the</strong> strongest in business schools, since teaching is individual
and collaboration with o<strong>the</strong>r teachers and disciplines not always necessary. In <strong>the</strong> development into
learning organization, however, cooperation and teamwork are both extremely important. In a
business school context, <strong>the</strong> dialogue between business school and business should be in place.
Working with experienced managers stretches <strong>the</strong> capabilities and expertise <strong>of</strong> faculty and makes
<strong>the</strong>m more aware <strong>of</strong> real corporate problems (Canals 2010).
New specific characteristic for <strong>the</strong> 2nd dimension:
In my business school, active dialogue between business school and business is taking place and
faculty members are working in <strong>the</strong> classroom with senior executives, which make <strong>the</strong> faculty
more aware <strong>of</strong> corporate problems.
5.3 Third dimension − promote collaboration and team learning
Many <strong>of</strong> <strong>the</strong> business school staff are used to working in research teams or on committees, but if
teamwork is to be used successfully to develop a learning organization, training for effective
teamwork must be supported by <strong>the</strong> conscious development <strong>of</strong> teamwork strategies in each new
teamwork context. Teaching integrated courses and helping people to think in an integrated way is a
transformational experience business schools should aim at.
New specific characteristics for <strong>the</strong> 3rd dimension:
In a business school teaching integrated courses and helping people to think in an integrated way
is supported in different ways.
In my business school, team building activities, focusing on enhancing interpersonal
communication, conflict resolution and problem-solving skills are organized for <strong>the</strong> staff.
In my business school, rewards and performance management strategies are tied to effective
teamwork.
5.4 Fourth dimension − create systems to capture and transform learning
A learning business school is an innovative organization, where <strong>the</strong> focus is on continuously
upgrading and improving teaching and learning processes, on creating and distributing new
knowledge. It would not <strong>the</strong>refore be a huge step to establish innovative 'microcosm groups'
empowered to, for example, 1) establish a mechanism for <strong>the</strong> sharing <strong>of</strong> interdisciplinary knowledge
leading to <strong>the</strong> publication <strong>of</strong> interdisciplinary research; 2) establish a mechanism for <strong>the</strong> sharing <strong>of</strong>
interdisciplinary knowledge in teaching leading to <strong>the</strong> development <strong>of</strong> a full interdisciplinary course; 3)
develop and implement links with industry, o<strong>the</strong>r education providers, and academic/industry
exchange programs or 4) develop and implement <strong>the</strong> prototype <strong>of</strong> a university leadership and
management system that maximizes staff involvement and <strong>the</strong> responsible use <strong>of</strong> autonomy
(Willcoxson 2002).
New specific characteristics for <strong>the</strong> 4th dimension:
In my business school, a mechanism for sharing interdisciplinary knowledge leading to <strong>the</strong>
publication <strong>of</strong> interdisciplinary research is established.
In my business school, a mechanism for <strong>the</strong> sharing <strong>of</strong> interdisciplinary knowledge in teaching
leading to <strong>the</strong> development <strong>of</strong> a full interdisciplinary course is established.
In my business school, links with industry, o<strong>the</strong>r education providers, and academic/industry
exchange programs are developed and implemented.
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In my business school, adjustments to <strong>the</strong> program design have been made in <strong>the</strong> light <strong>of</strong>
feedback from program teams and key stakeholders.
5.5 Fifth dimension − foster movement toward a collective vision
Common vision as an objective <strong>of</strong> an organization’s activity is important for <strong>the</strong> development <strong>of</strong> an
organization into a learning organization. Business school leaders are increasingly more aware <strong>of</strong> <strong>the</strong>
need to involve members <strong>of</strong> <strong>the</strong> organization in <strong>the</strong> process <strong>of</strong> creating a common vision. All
employees can participate in formulating <strong>the</strong> objectives <strong>of</strong> a business school and <strong>the</strong>y have a
common understanding <strong>of</strong> <strong>the</strong> business school mission and vision.
New specific characteristics for <strong>the</strong> 5th dimension:
In my business school, members <strong>of</strong> <strong>the</strong> organization are involved in <strong>the</strong> process <strong>of</strong> creating a
common vision.
In my business school, <strong>the</strong> views are made explicit and connected with its strategy, faculty
development, program design, and research initiatives.
In my business school, all employees can participate in formulating <strong>the</strong> objectives <strong>of</strong> <strong>the</strong> business
school.
In my business school, all employees have a common understanding <strong>of</strong> <strong>the</strong> business school
mission and vision.
5.6 Sixth dimension − connect <strong>the</strong> organization to its external environment
Education organizations need to build internal and external partnerships to better accomplish overall
goals. External partnerships might be with o<strong>the</strong>r schools, suppliers, businesses, business
associations, and community and social service organizations − all stakeholders and potential
contributors. Strategic partnerships or alliances are increasingly important kinds <strong>of</strong> external
partnership (Baldridge 1983). In a learning university and business school, important decisions are
made by taking into consideration <strong>the</strong> key partners’ opinions, including representatives <strong>of</strong> companies
and alumni who are also members in decision-making and advisory bodies <strong>of</strong> a business school.
New specific characteristics for <strong>the</strong> 6th dimension:
In my business school, important decisions are made with consideration <strong>of</strong> <strong>the</strong> key partners’
opinions, including <strong>the</strong> representatives <strong>of</strong> companies and alumni, who are also members in
decision-making and advisory bodies <strong>of</strong> <strong>the</strong> business school.
My business school has developed a higher capability to scan <strong>the</strong> environment, and is able to act
on early signals.
In my business school, leaders are also recruited from <strong>the</strong> corporate market, and many <strong>of</strong> <strong>the</strong>m
have taken up <strong>the</strong>ir careers in companies.
In my business school practices that are common to <strong>the</strong> corporate world have been incorporated
into <strong>the</strong> daily routines.
5.7 Seventh dimension − provide strategic leadership for learning
The keys to make changes in <strong>the</strong> structure that is designed to increase <strong>the</strong> organizational learning are
business school leaders' capacity and willingness to model collaborative action and inquiry, to involve
all staff in <strong>the</strong> initial setting <strong>of</strong> directions, to promulgate and maintain enthusiasm for a broadly shared
vision that never<strong>the</strong>less provides for local variation, and to cede to staff, across all levels <strong>of</strong>
appointment, authority and responsibility for development and implementation <strong>of</strong> ideas (Sattelberger
2011).
New specific characteristic for <strong>the</strong> 7th dimension:
In my business school, good governance is created by <strong>the</strong> faculty who is strongly committed to
<strong>the</strong> long-term development <strong>of</strong> <strong>the</strong> school and <strong>the</strong> leaders are willing to model collaborative action
and inquiry, and involve all staff in <strong>the</strong> initial setting <strong>of</strong> directions.
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6. Conclusions and discussion
Karen Voolaid and Üllas Ehrlich
Analyzing business schools’ special characteristics, <strong>the</strong> authors come to a conclusion that Watkins
and Marsick’s learning organization questionnaire (DLOQ) characteristics do not describe sufficiently
<strong>the</strong> specific features <strong>of</strong> business schools and <strong>the</strong>refore possibilities to use DLOQ for measuring <strong>the</strong>
business schools’ learning rate are limited.
The survey conducted by <strong>the</strong> authors indicated that <strong>the</strong> importance <strong>of</strong> various characteristics in
Watkins and Marsick’s questionnaire at <strong>the</strong> relatively high average importance for characterizing <strong>the</strong>
business school as a learning organization still varies considerably.
The higher score <strong>of</strong> <strong>the</strong> individual level can be explained by two facts. First, <strong>the</strong> individual level
characteristics are more universal and less organization specific than <strong>the</strong> organizational level
characteristics, and <strong>the</strong>refore also appropriate for characterizing <strong>the</strong> university learning. Secondly,
considering <strong>the</strong> higher than average educational level and nature <strong>of</strong> work <strong>of</strong> <strong>the</strong> university staff, <strong>the</strong>ir
ego is statistically hypertrophic compared to average organization’s average employee, which is
expressed in attaching importance to everything that emphasizes <strong>the</strong> individuality.
Lower scores than <strong>the</strong> average <strong>of</strong> <strong>the</strong> organizational level dimensions (with <strong>the</strong> exception <strong>of</strong> “provide
strategic leadership for learning”, 5.12) show clearly that this level characteristics do not sufficiently
take into account <strong>the</strong> specificity <strong>of</strong> university as organization and <strong>the</strong>se need to be partly replaced by
those that characterize <strong>the</strong> university as an organization better.
26 characteristics out <strong>of</strong> 43 in Watkins and Marsick’s questionnaire were included in <strong>the</strong> questionnaire
for measuring <strong>the</strong> learning rate <strong>of</strong> business schools as organizations. In order to detect new business
school specific characteristics for <strong>the</strong> questionnaire to measure business schools’ learning rate, all <strong>the</strong>
seven dimensions <strong>of</strong> Watkins and Marsick’s DLOQ were analyzed separately and discussed
regarding <strong>the</strong>ir importance in <strong>the</strong> business school context. As a result, <strong>the</strong> authors give 19 new
specific characteristics for measuring business schools´ learning rate. New characteristics enable for
measuring <strong>the</strong> learning rate to take into account specific characteristics <strong>of</strong> business schools as
organizations, such as creation <strong>of</strong> powerful learning environment and learning processes that c<strong>of</strong>ocus
on academic/scientific methods and practice/applied connections, active dialogue between
business school and business sector, teaching integrated courses, a mechanism for sharing
interdisciplinary knowledge, involvement in <strong>the</strong> process <strong>of</strong> creating a common vision, creation <strong>of</strong>
external partnerships and interaction on both business school and business, business school leaders'
capacity and willingness to model collaborative action. To judge <strong>the</strong> new questionnaire it requires to
be tested in practice, in different business schools.
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601

A Sense-Making Analysis <strong>of</strong> Knowledge Transfer in Global
Supply Chain Relationships: Case <strong>of</strong> Scientific Equipment
Resellers in Thailand
Lugkana Worasinchai 1 and Farhad Daneshgar 2
1
Bangkok University, Bangkok, Thailand
2
University <strong>of</strong> New SouthWales, Sydney, Australia
lugkana.w@bu.ac.th
f.daneshgar@unsw.edu.au
Abstract: This paper is <strong>the</strong> final phase <strong>of</strong> a larger research project that investigates knowledge transfer in global
supply chains from <strong>the</strong> perspective <strong>of</strong> South East Asian reseller companies. In a previous study a <strong>the</strong>oretical
model for knowledge transfer in global supply chains was developed and quantitatively validated for <strong>the</strong> case <strong>of</strong>
Thai resellers <strong>of</strong> laboratory equipment where equipment resale companies (donors) provide training to <strong>the</strong>ir
customers (recipients). Results from that previous study indicated that <strong>the</strong> transfer capability was <strong>the</strong> most
important issue for <strong>the</strong> donor firms. Fur<strong>the</strong>rmore, <strong>the</strong> most critical factor for <strong>the</strong> recipient firms was <strong>the</strong>ir
absorptive capacity in <strong>the</strong> form <strong>of</strong> certain capabilities for <strong>the</strong> successful utilization <strong>of</strong> <strong>the</strong> technical knowledge
received from <strong>the</strong> donor firms. By adopting a qualitative sense-making research approach and a two-round focus
group interview method for data collection and analysis <strong>the</strong> current study attempts to provide fur<strong>the</strong>r deeper
explanations for <strong>the</strong> results <strong>of</strong> previous quantitative survey. Five participants were chosen for two-round <strong>of</strong> focus
group meetings for this purpose.
Keywords: knowledge transfer; supply chain relationship; SE Asian companies; inter-organizational relationship;
sense-making research; qualitative research
1. Background
Stronger trading ties between South East Asian (SEA) reseller/dealer companies and <strong>the</strong>ir global
supply chain partner organizations in developed countries has created additional external pressures
on <strong>the</strong> former companies. These pressures are mainly in <strong>the</strong> form <strong>of</strong> request for new demand services
for adhering to certain product and process quality standards. While such additional service
requirement will eventually motivate overall enhancement <strong>of</strong> <strong>the</strong> quality <strong>of</strong> <strong>the</strong>se equipment in <strong>the</strong> long
term, in <strong>the</strong> short term <strong>the</strong> SEA companies need to provide timely responses to <strong>the</strong>ir end customers if
<strong>the</strong>y want to remain competitive in global markets.
In a previous study <strong>the</strong> authors studied inter-organization knowledge transfer between suppliers <strong>of</strong>
laboratory and scientific equipment (donor firms) and <strong>the</strong>ir clients (recipient firms) and identified
certain inherent characteristics in both donor and recipient firms in this particular sector. The
quantitative analysis <strong>of</strong> <strong>the</strong> results indicated that (i) <strong>the</strong> intra-organization characteristics <strong>of</strong> <strong>the</strong> reseller
companies had no significant relationship with <strong>the</strong> nature <strong>of</strong> knowledge that was transferred, or with
<strong>the</strong>ir inter-organization management capabilities. Fur<strong>the</strong>rmore, no statistical significance was found in
<strong>the</strong> intra-organization relationships within <strong>the</strong> client companies. On <strong>the</strong> o<strong>the</strong>r hand, transfer capability
happened to be <strong>the</strong> most important issue for <strong>the</strong> donor firms. Also, <strong>the</strong> most critical factor for <strong>the</strong>
recipient firms was <strong>the</strong>ir absorptive capacity for successful utilization <strong>of</strong> <strong>the</strong> technical knowledge
received from <strong>the</strong> donor firms. It was also speculated that <strong>the</strong> reason behind <strong>the</strong> above findings
seemed to be partly due to <strong>the</strong> fact that knowledge <strong>of</strong> working with laboratory equipment is technical,
which is generally characterized as being ambiguous, tacit, and complex (Simonian 2004).
The above conclusions point to <strong>the</strong> need for certain capabilities in both donor and recipient firms for
more effective transfer <strong>of</strong> knowledge. However, due to certain limitations associated with quantitative
surveys in identifying deeply rooted socio-cultural and behavioral factors that underpin <strong>the</strong> above
quantitative finding, authors saw a need for a qualitative research in order to fur<strong>the</strong>r investigate
relevant contextual factors. Such qualitative investigation was not possible through administration <strong>of</strong> a
survey instrument; and this constitutes <strong>the</strong> major motivation behind <strong>the</strong> current study. It is expected
that by adopting a qualitative research as a complement to <strong>the</strong> previous quantitative survey method
more appropriate and realistic insights can be devised for enhancing <strong>the</strong> success <strong>of</strong> knowledge
transfer activities in this sector.
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Lugkana Worasinchai and Farhad Daneshgar
The current study mainly focuses on <strong>the</strong> characteristics <strong>of</strong> knowledge that is transferred between <strong>the</strong>
donor and recipient organizations. More specifically, it attempts to provide answers to <strong>the</strong> following
research questions:
What is <strong>the</strong> nature <strong>of</strong> (technical) knowledge involved in transferring knowledge between <strong>the</strong> donor
and recipient firms?
What are <strong>the</strong> appropriate policies and strategies for <strong>the</strong> donor and recipient firms to enhance
effectiveness <strong>of</strong> <strong>the</strong>ir knowledge transfer process?
2. Research methodology
A positivistic philosophical perspective has been adopted in <strong>the</strong> current study with multiple case study
approach. The research instrument for collection and interpretation <strong>of</strong> <strong>the</strong> results is two-round <strong>of</strong> focus
group meetings with representatives from <strong>the</strong> case study organizations.
The adoption <strong>of</strong> a positivistic epistemology implies that achieving generalizability is desirable,
whereas adoption <strong>of</strong> a case study approach and focus group instrument indicate that generalizability
is not <strong>the</strong> primary objective <strong>of</strong> <strong>the</strong> study but instead <strong>the</strong> main intention is to explore deeply rooted
reasons/factors for enhancing <strong>the</strong> knowledge transfer process in <strong>the</strong> case study organizations. As a
result, <strong>the</strong> responsibility <strong>of</strong> achieving generalisability is delegated to <strong>the</strong> readers who will decide <strong>the</strong>
applicability <strong>of</strong> <strong>the</strong> findings <strong>of</strong> <strong>the</strong> current study to o<strong>the</strong>r situation and sectors within <strong>the</strong> economy
(adopted from Denzin & Linclon 2000).
3. Case study organisations
The case study organizations selected for <strong>the</strong> study are resellers <strong>of</strong> scientific and laboratory
equipment in Thailand who buy <strong>the</strong>ir products from global markets and resell <strong>the</strong> value-added
imported product along with relevant training and o<strong>the</strong>r service outputs to <strong>the</strong>ir global client firms in
Thailand and few o<strong>the</strong>r Asian countries. In Thailand alone <strong>the</strong>re are in excess <strong>of</strong> 150 companies that
supply scientific equipment (STTAT, 2552). Most <strong>of</strong> <strong>the</strong>se companies are dealers <strong>of</strong> equipment for
laboratory analysis. Their clients are mainly consumer product manufacturing companies, universities,
and state agencies involved in scientific and training activities mainly in SEA countries. The above
dealer companies are mainly importers <strong>of</strong> <strong>the</strong> technology and do not possess, nor operate, those
technologies. Their main business activities involve transferring necessary knowledge and technology
required to operate <strong>the</strong> equipment to <strong>the</strong>ir clients by organizing workshops focusing on <strong>the</strong> use and
maintenance <strong>of</strong> <strong>the</strong> equipment and related activities. These knowledge transfer workshops in turn are
expected to impact <strong>the</strong> recipient firms by enabling <strong>the</strong>m to (i) use <strong>the</strong> equipment – both s<strong>of</strong>tware and
hardware – (ii) analyze/interpret relevant data, and (iii) perform equipment maintenance and upgrade.
One participant was chosen from <strong>the</strong> supplier company, three from <strong>the</strong> client companies, and one
from <strong>the</strong> industry to act as an ‘expert’. One <strong>of</strong> <strong>the</strong> researchers played <strong>the</strong> role <strong>of</strong> coordinator <strong>of</strong> <strong>the</strong>
meetings. Details <strong>of</strong> <strong>the</strong> focus group are listed below:
The first meeting lasted for three hours with a period <strong>of</strong> 30 minutes break in between. During <strong>the</strong> first
half <strong>of</strong> <strong>the</strong> meeting <strong>the</strong> <strong>the</strong>oretical model was fully explained to all participants, and <strong>the</strong>y were asked
to provide <strong>the</strong>ir assessment <strong>of</strong> <strong>the</strong> <strong>the</strong>oretical model based on a hypo<strong>the</strong>tical quantitative study, and
according to <strong>the</strong>ir own personal experiences in <strong>the</strong> knowledge transfer process. In <strong>the</strong> second half <strong>of</strong>
<strong>the</strong> first meeting <strong>the</strong> above estimated assessments were discussed among all participants and <strong>the</strong>y
were provided ample opportunity to explain any discrepancies among <strong>the</strong> views, if any. During <strong>the</strong>ir
discussions all <strong>the</strong> communications and interactions were recorded. This was expected to expose
views <strong>of</strong> both sides, dealers and recipients, to each o<strong>the</strong>r as a basis for fur<strong>the</strong>r discussions.
Through <strong>the</strong>se discussions one <strong>of</strong> <strong>the</strong> most common problems encountered by <strong>the</strong> dealer companies
has been failure <strong>of</strong> <strong>the</strong>ir clients in achieving maximum efficiency when using <strong>the</strong> equipment. It was
mentioned that in majority <strong>of</strong> situations clients cannot solve some minor and recurring maintenance
problems arising from <strong>the</strong> normal usage <strong>of</strong> equipment, which result in <strong>the</strong> dealer companies’
equipment advisors and technicians perform same service tasks over and over again. The views from
<strong>the</strong> opposite side <strong>of</strong> <strong>the</strong> discussion are mentioned later.
4. Theoretical background
An organization normally acquires knowledge from two major sources: internal sources and external
sources. These two generic types <strong>of</strong> knowledge sourcing are referred to as intra-organization and
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Lugkana Worasinchai and Farhad Daneshgar
inter-organization knowledge transfer respectively (Argote, McEvily, & Reagans 2003). Holmqvist
(2004) fur<strong>the</strong>r clarifies that <strong>the</strong>re are also interactions between inter- and intra-organizational
knowledge transfers in which case <strong>the</strong> boundaries would play a major role in distinguishing between
inter- and intra-organizational processes. In practice however, achieving successful intra- and inter-
organizational knowledge transfer is not easy and several factors will affect <strong>the</strong> effectiveness <strong>of</strong> such
transfer (Szulanski 1996). The issue becomes even more complex at inter-organizational levels
because factors for knowledge transfer would also include scope <strong>of</strong> knowledge transfer, differences in
practices each individual company adopts, risks associated with knowledge transfer, and trust
towards <strong>the</strong> partners (Szulanski 1996). These factors in turn will determine <strong>the</strong> nature <strong>of</strong> relationship
among various supply chain organizations which in turn can affect <strong>the</strong> type <strong>of</strong> knowledge that is
transferred among those organizations.
In a recent study, Easterby-Smith et al. (2008) provide a framework for investigating <strong>the</strong> nature <strong>of</strong>
inter-organizational knowledge transfer that is marred by complexity, ambiguity and tacitness. The
present study adopts a syn<strong>the</strong>sized conceptual model extracted from <strong>the</strong> current literature in order to
investigate dyadic knowledge transfer between <strong>the</strong> donors and recipients <strong>of</strong> <strong>the</strong> case study
organizations, as shown in Figure 1. The adopted model was developed by Easterby-Smith et al
(2008) which in turn is based on two o<strong>the</strong>r milestone studies that toge<strong>the</strong>r provide insights into <strong>the</strong>
major characteristics <strong>of</strong> <strong>the</strong> donor and recipient firms, <strong>the</strong> attributes <strong>of</strong> <strong>the</strong> knowledge (<strong>the</strong> focus <strong>of</strong> <strong>the</strong>
current study), and <strong>the</strong> knowledge transfer process (see Grant 1996; Argote, McEvily, & Reagans
2003 for more details). More specifically, <strong>the</strong> proposed <strong>the</strong>oretical model comprises <strong>of</strong> <strong>the</strong> following
three groups <strong>of</strong> factors:
Resources and capabilities <strong>of</strong> both <strong>the</strong> donor and recipient firms,
Nature <strong>of</strong> knowledge that is being exchanged, and
Inter-organizational dynamics.
A brief description <strong>of</strong> <strong>the</strong> key factors <strong>of</strong> this model follows.
Figure 1: Knowledge transfer between organiziatons (adopted from Easterby-Smith et al., 2008)
Absorptive capacity: refers to <strong>the</strong> ability (<strong>of</strong> both donor and recipient firms) to recognize <strong>the</strong> value <strong>of</strong>
new knowledge and to assimilate and use that knowledge (Cohen & Levinthal 1990; Lane & Lubatkin
2003).
Intra-organization transfer capability: <strong>the</strong> ability for intra-organizational knowledge transfer to diffuse
<strong>the</strong> knowledge within <strong>the</strong> organization so that it can be assimilated and utilized. This concept is ideally
related to <strong>the</strong> absorptive capacity in <strong>the</strong> sense that an organization which is good at absorbing
external knowledge should also be well equipped for diffusing <strong>the</strong> knowledge within its own boundary
(Easterby-Smith et al. 2008).
Motivation to teach and to learn: Both <strong>the</strong> recipient’s intent to learn (Hamel 1991) and <strong>the</strong> donor’s
motivation to teach (Ko, Kirch, & King 2005) are established factors for IO-knowledge transfer. The
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Lugkana Worasinchai and Farhad Daneshgar
two may affect each o<strong>the</strong>r; for example, <strong>the</strong> lack <strong>of</strong> motivation to teach may dampen <strong>the</strong> enthusiasm
for learning, and vice versa (Easterby-Smith et al. 2008).
Nature <strong>of</strong> Knowledge being transferred: it is claimed that this factor can potentially affect both <strong>the</strong>
intensity and <strong>the</strong> quality <strong>of</strong> <strong>the</strong> knowledge transfer. In o<strong>the</strong>r words, <strong>the</strong> properties <strong>of</strong> knowledge affect
<strong>the</strong> ability to transfer that knowledge, <strong>the</strong> rate at which it will be assimilated, and how much is retained
(Holmqvist 2004). Simonian (2004) argues that <strong>the</strong> ‘ambiguity’ <strong>of</strong> knowledge has a direct and negative
relationship with <strong>the</strong> knowledge transfer. The ‘ambiguity’ in turn is more associated with ‘tacit’
knowledge than with ‘explicit’ knowledge. By adopting a qualitative research and applying <strong>the</strong> above
generic taxonomy <strong>of</strong> <strong>the</strong> nature <strong>of</strong> knowledge to <strong>the</strong> case study organisations <strong>the</strong> present study aims
to explore specialised characteristics <strong>of</strong> <strong>the</strong> knowledge that is transferred between <strong>the</strong>se
organisations.
Inter—organizational (IO) Dynamics: The IO knowledge transfer involves at least two organizations,
and as a result, understanding <strong>the</strong> dynamic forces between <strong>the</strong>se organizations seems to be
important factors in transferring knowledge between <strong>the</strong>se organizations. Four major factors were
identified for <strong>the</strong> current study that toge<strong>the</strong>r represent IO dynamics; <strong>the</strong>se are: ‘Power relations’, ‘Trust
& Risk’, ‘Structures & Mechanisms’, and ‘Social Ties’ (see Kale & Anand 2006) for a detailed review).
5. Analysis <strong>of</strong> <strong>the</strong> results
As mentioned earlier, qualitative interviews mandate understanding <strong>of</strong> <strong>the</strong> context by <strong>the</strong> researcher
so that interpretations provided can be evaluated by <strong>the</strong> readers <strong>the</strong>mselves. In this section context <strong>of</strong>
<strong>the</strong> interviews and detailed procedure for data collection and analysis are discussed.
Interviews were made with five individuals including one from <strong>the</strong> donor company, three from <strong>the</strong>
recipient company (one government testing agency, one pharmaceutical company, and one
representative from <strong>the</strong> food industry), and a private company representative who acts as an expert
and directly deals with both <strong>of</strong> <strong>the</strong> above groups providing auditing, testing, and consultation services
in scientific areas to <strong>the</strong>se groups. The primary purpose <strong>of</strong> <strong>the</strong> meetings was to collect information
and insights in relation to <strong>the</strong> nature <strong>of</strong> knowledge that is transferred between <strong>the</strong> donor and recipient
firms.
The data collection process consisted <strong>of</strong> two rounds. In <strong>the</strong> first round a total <strong>of</strong> three discussions
were coordinated one with each <strong>of</strong> <strong>the</strong> three groups <strong>of</strong> participants (see below) and allowing o<strong>the</strong>rs to
interactively provide inputs and/or raise issues and questions. The major goal <strong>of</strong> <strong>the</strong>se interviews was
to understand <strong>the</strong> nature <strong>of</strong> knowledge, and that how various characteristics <strong>of</strong> this knowledge affect
success <strong>of</strong> <strong>the</strong> knowledge transfer between <strong>the</strong>m. The second round was held after a two day break,
and all three groups were asked to provide <strong>the</strong>ir perspectives in <strong>the</strong> light <strong>of</strong> <strong>the</strong> discussions and
learning in <strong>the</strong> previous meeting.
Pr<strong>of</strong>ile <strong>of</strong> <strong>the</strong> participants: Three groups <strong>of</strong> respondents were present in both meetings: three from <strong>the</strong>
recipient/client side (‘R1’, ‘R2’ and ‘R3’), one from <strong>the</strong> donor side (’D’), and one expert (‘E’). In
addition, both <strong>of</strong> <strong>the</strong> authors were also present in <strong>the</strong> meetings and played active roles in coordinating
and recording <strong>of</strong> <strong>the</strong> discussions. The recipient representatives are senior scientists performing
scientific experiments on soil, food and drug using laboratory equipment in order to detect traces <strong>of</strong>
various elements. The donor representative ‘D’is <strong>the</strong> CEO and Managing Director <strong>of</strong> a major Thai firm
that imports scientific analytical instruments. The expert representative ‘E’ is a business development
engineer for medical products, environmental protection, and aviation. He is also <strong>the</strong> CEO <strong>of</strong> a
chemical company as well as Managing Director <strong>of</strong> a government research institute for discovering
innovative methods for transferring technology by conducting lab testing and research for both private
and public sectors as well as providing technical advice to o<strong>the</strong>r government <strong>of</strong>fices. The ‘E’ himself is
not a direct user <strong>of</strong> <strong>the</strong> lab equipment but closely works with both groups in auditing, testing and
consultations in various scientific and IT fields, and his presence in <strong>the</strong> study was mainly for providing
specialised opinions on various related issues as well as providing third party independent opinions
and insights.
During <strong>the</strong> firstt round <strong>of</strong> interviews, <strong>the</strong> interviewees were directed to discuss <strong>the</strong>ir opinions about <strong>the</strong>
<strong>the</strong>oretical model, its appropriateness, and commenting on o<strong>the</strong>r interviewees’ comments on <strong>the</strong>
same issues. Their discussions in this first round helped researchers to prepare directed discussion
questions for <strong>the</strong> second round, that is, <strong>the</strong> group meeting in order to achieve some level <strong>of</strong>
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consensus among <strong>the</strong>m, or to resolve misunderstandings about each o<strong>the</strong>r’s perspectives. The above
rounds <strong>of</strong> discussions allowed researchers to draw conclusions by identifying major <strong>the</strong>mes from
those discussions. Below is a summary <strong>of</strong> <strong>the</strong> discussions that took place during both rounds
presented under <strong>the</strong> heading <strong>of</strong> emerging <strong>the</strong>mes:
Theme 1: nature <strong>of</strong> domain-specific knowledge:
Question to be discussed by <strong>the</strong> ‘R’: What is it that you, <strong>the</strong> recipient, would like to learn from <strong>the</strong>
donor through various workshops?
Question to be discussed by <strong>the</strong> ‘D’: What is it that you, <strong>the</strong> donor, would like to learn from <strong>the</strong>
recipients in order to satisfy your client’s needs?
The ‘R’ was quick in mentioning that she expects to learn how <strong>the</strong>ir machines can help her to perform
specific tasks (e.g., analysing soil & water):
R: This will also help me to decide/manage my budget & o<strong>the</strong>r related issues.
E: I believe <strong>the</strong> donor should also provide knowledge (K) related to <strong>the</strong> economies <strong>of</strong>
using <strong>the</strong> new technical K (functional/organisational objectives). Donors need to go
beyond <strong>the</strong> technical K, and provide economic benefits (strategic issues) that <strong>the</strong>
equipment can potentially provide to <strong>the</strong>ir customers.
R: I agree with ‘E’.
In her above answer, <strong>the</strong> ‘R’ specified needs for learning two types <strong>of</strong> domain-specific knowledge: <strong>the</strong>
first one is technical knowledge related to <strong>the</strong> donor, and <strong>the</strong> second one is related to organisational
dynamic forces in her own firm.
Theme 2: Internal capabilities <strong>of</strong> <strong>the</strong> donor and recipient organisations:
Questions related to <strong>the</strong> <strong>the</strong>me 2 were: what is it that you (donor and recipient) expect to learn from
your own organisation that would assist overcomiung <strong>the</strong> current problem that was earlier mentioned
by <strong>the</strong> donor company?
R (summary <strong>of</strong> major comments): new employees learn from a senior member, and have
to pass on some capability….. On-job training every year …. no monetary rewards in
government organizations for learning so why should anyone bo<strong>the</strong>r? ….
The ‘D’ mentioned that he is fully aware <strong>of</strong> <strong>the</strong> importance <strong>of</strong> knowledge sharing within his firm:
D: we are highly morivated to learn; we have a well established program <strong>of</strong> sending our
trainers overseas for training ….. no monetary rewards though in doing a perfect job by
trainers!….. three teams exist: (i) service team: provides services, (ii) sales team: mainly
sells, and (iii) application team: trains both <strong>the</strong> customers and <strong>the</strong> sales and service team
members.So, knowledge-sharing is institutionalised in our firm.
The concern was raised by one <strong>of</strong> <strong>the</strong> researchers on <strong>the</strong> separation <strong>of</strong> <strong>the</strong> above three teams who
are involved in fundamentally highly inter-related activities in relation to <strong>the</strong> customers’ needs. The ‘D’
responded that such separation is mainly due to specialisation which is an internal issue for us ra<strong>the</strong>r
than a facility for collaboration with <strong>the</strong> recipients. The ‘D’ however acknowledged <strong>the</strong> importance <strong>of</strong>
<strong>the</strong> raised concern and on <strong>the</strong> spot provided few solutions:
D: I believe we need more collaboration among our teams as well as between us and
clients. We need to share our learning with each o<strong>the</strong>r and with <strong>the</strong>m in order to create
new ideas, etc. Doing joint reserarch projects, discussion forums among ourselves and
even with research centers/universities. The trend is now collaboration for sure.
And <strong>the</strong> expert also emphasised <strong>the</strong> above by <strong>the</strong> following suggestion:
E: Forming pr<strong>of</strong>essional asociations with membership etc. Which is <strong>the</strong> next step after
collaboration (an <strong>of</strong>ficial form <strong>of</strong> collaboration).
To <strong>the</strong> surprise <strong>of</strong> <strong>the</strong> researchers, none <strong>of</strong> <strong>the</strong> respondents acknowledged necessity <strong>of</strong> learning
about <strong>the</strong> organisational capabilities <strong>of</strong> <strong>the</strong> o<strong>the</strong>r side:
R: budgetary and o<strong>the</strong>r issues are my concern and donor firms are not expected to help
me in that.
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D: we do everything we can to make sure <strong>the</strong> recipient’s need for technical knowledge is
met, however we do not want to perform <strong>the</strong>ir job for <strong>the</strong>m.
When both were challenged by <strong>the</strong> researchers as to “why not” <strong>the</strong>y both implied that this does not
work that way in Thailand. The researchers emphasised <strong>the</strong> importance <strong>of</strong> donors learning from <strong>the</strong>ir
customers in order to provide more competitive services. The ‘D’ acknowledged such matter and
talked in length about <strong>the</strong>ir customer relationship management system which partly satisfied <strong>the</strong>
curiosity <strong>of</strong> <strong>the</strong> researchers, but <strong>the</strong>re seem to be room for improvements in this particular area that
can potentially create benefits for all parties involved; and that is an integration <strong>of</strong> CRM and
knowledge management, that is, <strong>the</strong> customer knowledge management. This is probably <strong>the</strong> most
important conclusion that <strong>the</strong> researchers drew out <strong>of</strong> <strong>the</strong> above discussions.
Theme 3: sources <strong>of</strong> knowledge that is exchanged:
This <strong>the</strong>me addresses generic nature <strong>of</strong> IO transfer. Easterby-Smith et al. (2008) argue that interorganizational
knowledge is characterized by complexity, ambiguity and tacitness. These general
characteristics were applied to our case study in order to explore more functional and specialized
understanding and interpretations <strong>of</strong> <strong>the</strong> above characteristics, sources <strong>of</strong> ambiguity/complexity, and
remedies for enhancing effectiveness <strong>of</strong> transferring <strong>the</strong> IO knowledge. In <strong>the</strong> current study, <strong>the</strong>
above characteristics are evaluated in <strong>the</strong> light <strong>of</strong> <strong>the</strong> three widely accepted characteristics <strong>of</strong>
‘knowledge’ in general, that is knowledge being ‘dynamic’, ‘actionable’ and ‘contextual’. The
justification for adopting such integrated approach is that (i) this will prevent misinterpretation <strong>of</strong>
‘information’ as ‘IO knowledge’ and vice-versa, and (ii) such integrated approach will facilitate
understanding <strong>of</strong> what constitutes <strong>the</strong> ‘clarity <strong>of</strong> IO knowledge in a particular IO context’. The
justification for using <strong>the</strong> characteristics <strong>of</strong> <strong>the</strong> IO knowledge in <strong>the</strong> first place is that unless we are
clear about <strong>the</strong> nature <strong>of</strong> <strong>the</strong> IO knowledge in a particular context we will not be able to manage <strong>the</strong>
IO knowledge transfer process properly; information exchange is not what we are after..
The current study provides some understanding about what constitutes ‘clarity <strong>of</strong> <strong>the</strong> IO knowledge in
a particular context’ using <strong>the</strong> above two sets <strong>of</strong> characteristics.
Based on <strong>the</strong> above argument <strong>the</strong> researchers prepared <strong>the</strong> following discussion questions during <strong>the</strong>
second round <strong>of</strong> interviews:
For both ‘R’ and ‘D’: What is your understanding <strong>of</strong> <strong>the</strong> ‘ambiguity’ (and ‘tacitness’, and ‘complexity’)
<strong>of</strong> <strong>the</strong> IO knowledge as related to your particular situation as a recipient or donor firm in <strong>the</strong> case
study?
For ‘ambiguity’:
R: <strong>the</strong> source <strong>of</strong> ambiguity is that recipients already have some <strong>the</strong>oretical knowledge but
not <strong>the</strong> technical knowledge related to a particular new instrument.
The above notion points to <strong>the</strong> ‘contextuality’ <strong>of</strong> <strong>the</strong> knowledge in general, and <strong>the</strong> IO knowledge in
particular. Fur<strong>the</strong>rmore, by mentioning <strong>the</strong> term ‘new instrument’ <strong>the</strong> ‘R’ implies <strong>the</strong> ‘dynamic’ nature
<strong>of</strong> <strong>the</strong> IO knowledge.
E: we should consider <strong>the</strong> level <strong>of</strong> K-transfer both at operational level and at strategic
level…….
E:not enough time to learn/teach. More time/experience needed to learn/teach this kind
<strong>of</strong> knowledge
R: Training time is too short, when <strong>the</strong> trainers visit us our employees may become busy
with o<strong>the</strong>r emerging tasks that would require <strong>the</strong>ir urgent attention, so <strong>the</strong>y may not
attend <strong>the</strong> workshops. To solve <strong>the</strong> problem <strong>the</strong> trainees must be sent to <strong>the</strong> donor’s site
for training.
D: we provide two types <strong>of</strong> training: onsite and on <strong>the</strong> client’s site. We take <strong>the</strong>m to
restaurant for good food, this happens both before & after <strong>the</strong> sale.
The first quote by ‘E’ reflects <strong>the</strong> ‘actionability’ <strong>of</strong> <strong>the</strong> IO knowledge. His second quote and <strong>the</strong> quote
by ‘R’ indicate <strong>the</strong> ‘ambiguity’ and ‘tacitness’ <strong>of</strong> <strong>the</strong> IO knowledge. Fur<strong>the</strong>rmore, <strong>the</strong> ‘R’ and ‘D’ open a
variety <strong>of</strong> possibilities for resolving this particular problem. One such possibility is <strong>the</strong> adoption <strong>of</strong>
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ubiquitous workplace eLearning systems (see Daneshgar & Van Toorn 2009 for more details on
eLearning at workplace).
The tacitness and ambiguity <strong>of</strong> <strong>the</strong> IO knowledge were discussed in length by all interviewees. Below
is a summary <strong>of</strong> <strong>the</strong> discussions:
R: when I see a particular knowledge that is not in <strong>the</strong> manual, I ask <strong>the</strong> donor, if <strong>the</strong>
donor does not know, <strong>the</strong>y will find out from external sources
D: sometimes clients open <strong>the</strong> instrument (that are not allowed to). We have advanced
training for fixing <strong>the</strong> problems that relate to <strong>the</strong> things that clients are not allowed to do
(e.g., opening <strong>the</strong> back <strong>of</strong> <strong>the</strong> machine). So, we deal with ‘tacit’ knowledge this way.
O<strong>the</strong>r example is that compared to India (<strong>the</strong> manufacturer <strong>of</strong> some <strong>of</strong> our equipment) we
deal with different samples, different climate, etc; all <strong>the</strong>se will affect <strong>the</strong> operation <strong>of</strong> <strong>the</strong>
instruments here. When any <strong>of</strong> our branches find new tacit-technical K, we share it by
putting it on <strong>the</strong> Internet.
R: ambiguous problem is when we don’t even know what <strong>the</strong> problem is, or cannot clarify
<strong>the</strong> problem. For example, I try to do my best, try to classify <strong>the</strong> problem, and if cannot
solve it, <strong>the</strong>n I ask <strong>the</strong> donor.
When asked by one <strong>of</strong> <strong>the</strong> researchers as “how do you go about <strong>the</strong> problem that can not even be
identified by <strong>the</strong> recipient?” <strong>the</strong> donor responded:
D: we listen to <strong>the</strong> client and analyse <strong>the</strong> symptoms. Then we use our traditional K to
solve it, if no luck, <strong>the</strong>n we use <strong>the</strong> trial & error, if we still don’t get results, we use
external sources (ei<strong>the</strong>r an expert or a partner, etc). Scientific K is not easy to teach/learn
(compared to general K). We need expertise for both teaching and learning it. Also
experience <strong>of</strong> <strong>the</strong> teacher is very important so is <strong>the</strong> experience <strong>of</strong> <strong>the</strong> learner.
The above responses and similar o<strong>the</strong>r responses by <strong>the</strong> ‘E’ brings a new characteristic for <strong>the</strong> IO
knowledge for <strong>the</strong> case study firms: <strong>the</strong> notion <strong>of</strong> ‘technical knowledge’. While this particular
characteristic resembles <strong>the</strong> general description <strong>of</strong> a tacit K, it also carries a specialised meaning
within <strong>the</strong> context <strong>of</strong> our study. In o<strong>the</strong>r words, <strong>the</strong> tacit IO knowledge in <strong>the</strong> context <strong>of</strong> <strong>the</strong> current
study is in fact technical in nature.
While no attempts will be made in this study to introduce a new characteristic to <strong>the</strong> current list <strong>of</strong> IO
knowledge characteristics, <strong>the</strong> authors <strong>of</strong> this study claim that by integrating <strong>the</strong> two sets <strong>of</strong>
characteristics a rich set <strong>of</strong> combinations <strong>of</strong> characteristics can be defined that would be able to
accommodate <strong>the</strong> needs <strong>of</strong> IO knowledge transfer. The following quotes are presented that support
<strong>the</strong> above argument:
E: Ambiguous technical K: when <strong>the</strong> K is new for both donor and client.
E: Tacit technical K is when hiring experienced experts who have been in many o<strong>the</strong>r
similar situations and can share those experiences with us.
E: Complex technical K: when K involves a variety <strong>of</strong> factors with many variables, as well
as a variety <strong>of</strong> methods/techniques for using and transferring <strong>the</strong> K.
We would like to bring <strong>the</strong> study to conclusion at this stage as more investigation would be required to
fur<strong>the</strong>r clarify <strong>the</strong> nature <strong>of</strong> technical K and its relationship to tacit and explicit K. This constitutes <strong>the</strong>
authors’ future study.
6. Recommendations and future work
Results from a previous quantitative study suggests that transfer capability <strong>of</strong> <strong>the</strong> donor company in
<strong>the</strong> case study was <strong>the</strong> most important factor for effective transfer <strong>of</strong> knowledge. In <strong>the</strong> recipient’s side
<strong>the</strong> most critical factor was <strong>the</strong> latter companies’ absorptive capacity. However, due to certain
limitations associated with quantitative surveys in identifying deeply rooted socio-cultural and
behavioral factors that may underpin <strong>the</strong> above quantitative finding, <strong>the</strong> present study was designed
to investigate relevant contextual factors that may have been missed out from <strong>the</strong> previous
quantitative research. By adopting a qualitative research <strong>the</strong> current study attempted to develop
insights into <strong>the</strong> nature <strong>of</strong> <strong>the</strong> (technical) knowledge involved in transferring knowledge between <strong>the</strong>
donor and recipient firms in <strong>the</strong> case study; a summary <strong>of</strong> <strong>the</strong>se results were presented in section VI.
Below is a summary <strong>of</strong> recommendations for enhancement <strong>of</strong> <strong>the</strong> knowledge transfer process within
<strong>the</strong> case study organisations:
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Two types <strong>of</strong> domain-specific knowledge were <strong>of</strong> interest to <strong>the</strong> recipients: (i) technical knowledge
<strong>of</strong> using <strong>the</strong> equipment, and (ii) organisational dynamic forces within <strong>the</strong> recipient’s own firm that
are affected by <strong>the</strong> above technological knowledge. This suggests a strategic dimension for <strong>the</strong>
knowledge transfer and both donors and recipients must take this new dimension into
consifderation.
In designing user interface for <strong>the</strong> training workshops donor must provide a unified interface that
hides unnecessary complexities related to <strong>the</strong> donor company’s internal limitations, e.g., need for
specialisation. This will prevent problems that currently exist as a result <strong>of</strong> presence <strong>of</strong> a dual
interface that <strong>the</strong> users must adjust to (that is, when to call <strong>the</strong> ‘service team’ and when to call <strong>the</strong>
‘sales team’). Such additional cognitive load expected from <strong>the</strong> recipients by <strong>the</strong> donor is
troublesome to <strong>the</strong> former because it does not match with <strong>the</strong>ir cognitive mental model; clients
prefer to see a single unified interface with <strong>the</strong> donor firm.
Collaboration among experts in <strong>the</strong> donor firm (and within <strong>the</strong>ir upstream supply chain) will result
in better understanding <strong>of</strong> <strong>the</strong> supply side <strong>of</strong> <strong>the</strong> customer chain. Also it is verified that
collaboration among users will benefit both <strong>the</strong> donor and recipient companies and must be
encouraged.
Despite various inter-organisational barriers, understanding <strong>of</strong> <strong>the</strong> donor firm and <strong>the</strong>ir clients <strong>of</strong>
each o<strong>the</strong>r’s context will facilitate sharing <strong>of</strong> knowledge ra<strong>the</strong>r than exchange <strong>of</strong> information.
Assisting recipients to discover <strong>the</strong> link between <strong>the</strong>ir <strong>the</strong>oretical knowledge and technical
knowledge provided by <strong>the</strong> donor will reduce knowledge ambiguity for <strong>the</strong> clients.
Knowledge ambiguity for <strong>the</strong> donor firm will be reduced if a standard language and an associated
process exis for identifying and reporting problems experienced by <strong>the</strong> recipients when using <strong>the</strong>
equipment. This must be complemented by a s<strong>of</strong>ter procedure to be followed by <strong>the</strong> donor firm for
decoding and interpreting <strong>the</strong> clients’ requirements. Currently <strong>the</strong> donors sometimes even don’t
know what <strong>the</strong> problem is to solve it
In future studies <strong>the</strong> authors intend to replicate <strong>the</strong> above two studies and assess validity <strong>of</strong>
recommendations for various sectors.
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610

Knowledge Elicitation in Unstructured Business
Processes: The Preliminary Findings From a Case Study
Jessica Yip, W.B. Lee, Eric Tsui, and Cherie Lui
Knowledge Management Research Centre, The Hong Kong Polytechnic
University, Hong Kong SAR, China
jessica.yip@polyu.edu.hk
w.b.lee@inet.polyu.edu.hk
eric.tsui@inet.polyu.edu.hk
cherie.lui@inet.polyu.edu.hk
Abstract: This paper presents a knowledge audit methodology for unstructured processes, addressing on <strong>the</strong>
phenomenal increase in <strong>the</strong> number <strong>of</strong> unstructured knowledge work. The implication <strong>of</strong> such trend is that
organizations are no longer mechanistic entities but networks <strong>of</strong> complex and interdependent communities whose
knowledge cannot be discovered and visualized using <strong>the</strong> traditional knowledge elicitation and representation
techniques. With such argument, <strong>the</strong> authors developed a knowledge audit methodology exploring on
narrative-based knowledge elicitation methods and pattern-detecting knowledge representation methods. The
methodology was conducted in an unstructured process <strong>of</strong> an Information Technology Department (ITD) <strong>of</strong> a Hong
Kong-based company. The results elucidate <strong>the</strong> complex activities in <strong>the</strong> studied unstructured process; its
associated knowledge flow amongst stakeholders is also revealed for pattern detection. This paper contributes in
opening gateway to <strong>the</strong> investigation <strong>of</strong> knowledge audit in unstructured processes.
Keywords: knowledge audit, anecdote circle, sense-making, knowledge elicitation, knowledge representation
1. Introduction
Time was, and not long ago, hierarchies and instructions were <strong>of</strong> utmost importance in work. The steps
were clear, and <strong>the</strong> paths seemed obvious and structured. The structured work processes, say
managing productive activities, work flows and order processing, are procedural and well documented.
The knowledge requirement for overseeing a structured process is known and straight-forwarded to be
defined. Nowadays, most knowledge work is <strong>of</strong> unstructured nature and cannot be described by a
simple flow chart. Unstructured process is non-linear and <strong>the</strong>re is no defined scope. Examples <strong>of</strong>
unstructured process include designing a new computer model, establishing a new market, launching a
new product, preparing a lawsuit. This kind <strong>of</strong> work leads to adaptive, rapidly changing systems.
Knowledge workers need to collaborate and communicate more than ever. These boundaries make
managing unstructured work different from managing structured ones. The activities involved and <strong>the</strong>
knowledge requirement in managing unstructured process is complex, non-repetitive, and thus difficult
to be categorized. Due to <strong>the</strong> complexity <strong>of</strong> this work type, workers shall better visualize <strong>the</strong> activity
system, knowledge flow and stakeholder relationship in unstructured process. One <strong>of</strong> <strong>the</strong> ways to
identify knowledge flow and stakeholder relationship in work process is knowledge audit. It is frequently
employed to identify what knowledge to share from whom to whom. It can be a precursor to a new
knowledge management journey. To conduct a knowledge audit, four steps, namely audit preparation,
knowledge elicitation, knowledge representation as well as audit results reporting, are required.
Amongst <strong>the</strong>se four knowledge audit steps, <strong>the</strong> authors found two research gaps in <strong>the</strong> steps <strong>of</strong>
knowledge elicitation and knowledge representation respectively.
Knowledge elicitation is a sub-set <strong>of</strong> knowledge acquisition that specifically refers to retrieving
knowledge from a human expert(s) using a range <strong>of</strong> strategies (Nordlander 2005). Current knowledge
elicitation methods in knowledge audit rely on questionnaires, interviews and focus groups. The
questions used in questionnaires, interviews and focus groups tend to constrain <strong>the</strong> nature <strong>of</strong> <strong>the</strong>
materials that can be collected and <strong>the</strong> general questions are <strong>of</strong>ten linked to what <strong>the</strong> researcher thinks
is <strong>the</strong> most important (Snowden 2006). These methods are structured because <strong>the</strong>y barely allow ideas
to emerge. If hypo<strong>the</strong>sis-based approach is being used, <strong>the</strong>re is a risk that <strong>the</strong> researcher may not
include all <strong>of</strong> <strong>the</strong> important activities in <strong>the</strong> study. Apart from knowledge elicitation, knowledge
representation is ano<strong>the</strong>r crucial step in a knowledge audit project. Knowledge representation concerns
how people store and process information. It includes a variety <strong>of</strong> schemes that organize, manage and
retrieve data and information (Hodge 2000). Two most important knowledge representation methods in
knowledge audit are <strong>the</strong> knowledge inventory and <strong>the</strong> knowledge map. Knowledge inventory is <strong>the</strong>
process <strong>of</strong> counting, indexing and categorizing implicit and explicit knowledge available in <strong>the</strong> company
(Hylton 2002). A knowledge map is a navigation aid to explicit and tacit knowledge, illustrating how
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knowledge flows throughout an organization (Grey 1999).While <strong>the</strong> knowledge inventory sufficiently
provides details about knowledge items, knowledge maps has its limitations. The knowledge map <strong>of</strong>ten
contains vast amount <strong>of</strong> information for both researcher and <strong>the</strong> respondents to interpret. Moreover, as
<strong>the</strong>y are not socially derived, idea emergence is impeded, complex relationship amongst activity system,
knowledge flow, and stakeholder involvement cannot be depicted Addressing <strong>the</strong> above research gaps,
this research aims to develop and implement a knowledge elicitation and representation method in a
knowledge audit project, elucidating <strong>the</strong> complex activities and its associated knowledge flow and
stakeholder-relationship in unstructured processes. This research builds on but is substantially different
from <strong>the</strong> existing body <strong>of</strong> knowledge audit methods. The paper is organized as follows: in Section 2, <strong>the</strong>
paper presents <strong>the</strong> research methodology, which consists <strong>of</strong> four phases. In Section 3, a case study in
<strong>the</strong> Information Technology Department (ITD) <strong>of</strong> a Hong Kong based company is illustrated. The paper
closes with conclusions and references.
2. Research methodology
The knowledge audit project adopted a qualitative research approach with <strong>the</strong> following justifications.
The identification <strong>of</strong> knowledge items shall be conducted in a contextualized setting.
Interpretative naturalistic approach shall be taken such that respondents will be involved in both <strong>the</strong>
data collection and interpretation process.
Deductive, top-down research approach shall be avoided, while inductive, bottom-up approach will
be embraced to represent <strong>the</strong> respondents’ thoughts and input.
The research methodology is composed <strong>of</strong> 4 phases as depicted in Figure 1.
Phase 1
Audit
Preparation
Phase 2
Knowledge
Elicitation
Workshop
Phase 3
Knowledge
Representation
Elicitation
Phase 4
Audit Results
Reporting
Figure 1: Research methodology
2.1 Phase 1: Audit preparation
.
♦ Project scope and objective were defined.
♦ Project respondents were nominated.
♦ Individual-Activity Maps were constructed
♦ Knowledge items and categories were identified.
♦ Knowledge-Activity Map was constructed from <strong>the</strong> results <strong>of</strong>
phase 2.
♦ Discussion on knowledge-activity map was conducted.
♦ Knowledge inventory was created.
♦ Audit results were generated from knowledge-activity map
and knowledge inventory.
The project scope and objective was defined and project respondents were nominated. A meeting was
held with <strong>the</strong> management to address and discuss on <strong>the</strong> burning issues and concerns in <strong>the</strong>
organization. This meeting helps to gain management buy-in and acquire contextual information about
<strong>the</strong> cultural and operational aspects <strong>of</strong> <strong>the</strong> organization.
2.2 Phase 2: Knowledge elicitation workshop
In <strong>the</strong> knowledge elicitation workshop, two types <strong>of</strong> information, including individual activity maps and
knowledge items, were collected. Firstly, each respondent was invited to construct an individual activity
map which depicts <strong>the</strong>ir activities system, knowledge flow and stakeholder involvement in <strong>the</strong>
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investigated scope. Respondents first wrote down <strong>the</strong>ir names and <strong>the</strong> stakeholders’ name, whom <strong>the</strong>y
interact with, on a piece <strong>of</strong> paper. They were <strong>the</strong>n invited to connect <strong>the</strong> stakeholders with arrows, which
represent <strong>the</strong> activities happen between <strong>the</strong>mselves and <strong>the</strong> stakeholders. In Figure 2, two examples <strong>of</strong>
individual activity map are shown.
Figure 2: Individual activity maps
Secondly, knowledge items were collected. Instead <strong>of</strong> using direct elicitation methods, anecdote circle
is used. Anecdote circle, when carried out, creates an informal environment <strong>of</strong> exploration that
invariably reveals insights one could never predict from <strong>the</strong> outset (Callahan, Shawn. 2006). In
anecdote circle, respondents shares stories and jots down both implicit and explicit knowledge items
mentioned in <strong>the</strong> stories on posits. Collected <strong>the</strong> knowledge items, sensemaking exercise was
conducted. Sense-making is a way that humans choose between multiple possible explanations <strong>of</strong>
sensory and o<strong>the</strong>r input as <strong>the</strong>y seek to conform <strong>the</strong> phenomenological with <strong>the</strong> real in order to act in
such a way as to determine or respond to <strong>the</strong> world around <strong>the</strong>m (Snowden 2005). Respondents
arranged <strong>the</strong> knowledge items (on posits) such that coherent knowledge items are clustered. Figure 3
illustrates <strong>the</strong> above process.
Figure 3: Knowledge elicitation workshop
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2.3 Phase 3: Knowledge representation workshop
At <strong>the</strong> beginning <strong>of</strong> <strong>the</strong> workshop, <strong>the</strong> knowledge categories collected in <strong>the</strong> phase 2 were validated by
<strong>the</strong> respondents. Subsequently, a collective activity map was presented to <strong>the</strong> respondents. This map
integrates <strong>the</strong> data <strong>of</strong> all individual activity maps collected in phase 2. On <strong>the</strong> individual activity maps,
different respondents may write down <strong>the</strong> same stakeholder’s name; while in <strong>the</strong> collective activity map,
<strong>the</strong> “same” stakeholder is only represented once. The collective activity map was <strong>the</strong>n validated by
respondents. If <strong>the</strong>re was any discrepancy <strong>of</strong> <strong>the</strong> illustrative map and <strong>the</strong> actual situation in <strong>the</strong>
unstructured process, respondents were invited to add, delete and amend any activity arrows and
stakeholder names on <strong>the</strong> map. Figure 4 shows an example <strong>of</strong> <strong>the</strong> collective activity map.
Figure 4: Collective activity map
After <strong>the</strong> validation exercise, respondents matched up <strong>the</strong> knowledge categories with <strong>the</strong> activity arrows
on collective activity map to create <strong>the</strong> knowledge-activity map, as illustrated in Figure 5. To facilitate
<strong>the</strong> matching up exercise, knowledge categories were written down on posits, while <strong>the</strong> collective
activity map was presented on a flipchart sheet. Respondents were invited to place <strong>the</strong> knowledge
categories posits on <strong>the</strong> activity arrows, indicating that particular knowledge categories are required for
performing specific activities.
Figure 5: Knowledge-activity map
2.4 Phase 4: Analysis and results reporting
The knowledge audit analysis was conducted based on <strong>the</strong> data on <strong>the</strong> knowledge-activity map, which
has three features as described below.
1. Pattern Emergence
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Ra<strong>the</strong>r than having considerable amount <strong>of</strong> information on a traditional knowledge map,
knowledge-activity map is more systematically organized. The process <strong>of</strong> sense-making ascertains
coherent knowledge items were clustered into knowledge categories. With this exercise, patterns
emerge such that decision makers can respond to <strong>the</strong> pattern, stabilizing or destabilizing <strong>the</strong>m.
2.
Collaborative Exploration
The
knowledge-activity map is collaboratively generated by respondents’ efforts in knowledge elicitation
and knowledge representation workshop. This produce bottom-up results which reflect respondents’
consensus. The subsequent analysis will be accepted by respondents more easily.
3.
Complex Relationship
The
knowledge–activity map reveals <strong>the</strong> complex relationship in an investigated scope. People used to
focus on <strong>the</strong>ir own ways <strong>of</strong> working, without reflecting on how to collaborate with o<strong>the</strong>rs and better
operate a process. This map helps <strong>the</strong> operational and managerial staff to grasp a multi-perspective
view on a complex process.
Using
<strong>the</strong> knowledge–activity map, analysis will be conducted. The analysis includes <strong>the</strong> implicit-explicit
knowledge category ratio, critical knowledge owners and customers, critical activities and knowledge
transfer analysis. These results are presented to <strong>the</strong> management, visualizing <strong>the</strong> complex landscape
<strong>of</strong> <strong>the</strong> unstructured knowledge process.
3. Case study
The knowledge audit methodology was implemented in <strong>the</strong> information technology department (ITD) in
a Hong Kong-based public utility company. The scope under study is ITD policy establishment,
development and maintenance process. The knowledge audit was conducted for a Hong Kong team
and a China one, while Hong Kong team was engaged in <strong>the</strong> knowledge audit first. The aim <strong>of</strong>
conducting knowledge audit in <strong>the</strong>se two teams is to identify knowledge transfer content between <strong>the</strong>
teams.
3.1 Knowledge audit results
The knowledge audit results suggest
that 13 implicit knowledge categories and 14 explicit knowledge
categories should be transferred from <strong>the</strong> Hong Kong team to <strong>the</strong> China team. In addition to this result,
<strong>the</strong> knowledge-activity map has provided much valuable information for analysis. The
knowledge-activity map helps decision makers to use a probe-sense-respond tactic to manage a
complex process. The map depicts an entrained pattern, making sense <strong>of</strong> three variables in a complex
process, namely activity system, knowledge flow and stakeholder involvement. It facilitates fast and
effective pattern detection, and increases decision makers’ exposure to various perspectives (Kurtz
2003). Figure 6 shows <strong>the</strong> knowledge-activity map generated by <strong>the</strong> China team.
Many
patterns have been sensed using this map. For example, a vendor and some external
departments are involved in a number <strong>of</strong> knowledge-intensive activities. This pattern implies <strong>the</strong> risk
associated with knowledge loss. Apart from pattern detection, <strong>the</strong> data embedded in <strong>the</strong>
knowledge-activity map was used to generate various analyses, including <strong>the</strong> implicit-explicit
knowledge category ratio, <strong>the</strong> distribution <strong>of</strong> knowledge customers and knowledge owners, a list <strong>of</strong>
critical activities. In addition, a list <strong>of</strong> implicit and explicit knowledge transfer contents was identified such
that <strong>the</strong> Hong Kong team can facilitate <strong>the</strong> policy establishment process <strong>of</strong> <strong>the</strong> China team.
4. Conclusion
This paper addresses
<strong>the</strong> changing nature <strong>of</strong> knowledge work from linear planning to complexity
management. To cope with <strong>the</strong> challenges arise from complex work processes, a knowledge audit
methodology is developed, without disproving <strong>the</strong> uniqueness <strong>of</strong> existing ones. There are two major
contributions in this research. Firstly, anecdote circle and sense-making were employed to elicit
knowledge items to enhance respondents’ interaction and generate collaboratively driven results.
Secondly, knowledge–activity map was developed to provide a comprehensive view about <strong>the</strong> activity
system, knowledge flow and stakeholder involvement in unstructured processes. Adopting <strong>the</strong> above
knowledge elicitation and representation methodologies, <strong>the</strong> developed knowledge audit helps early
pattern detection and <strong>the</strong>refore early exploitation <strong>of</strong> evolutionary opportunities in unstructured work.
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Figure 6: Knowledge- activity map in a Hong Kong based company
References
Mainland
Business
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Callahan, S. and Rixon, A. (2006) Ultimate Guide to Anecdote Circles, available at:
http://www.anecdote.com.au/papers/Ultimate_Guide_to_ACs_v1.0.pdf
(accessed 3 July 2011)
Grey, D. (1999) Knowledge Mapping: A Practical Overview, March,
http://docto-si.ugr.es/Programa2003-2005/Curso2005-2006/Conferencias/Conferencia-Liebowitz/IJMDMfina
lpaper.pdf. (accessed 9 July 2011)
Hodge, G. (2000) Systems <strong>of</strong> Knowledge Organization for Digital Libraries: Beyond Traditional Authority Files. The
Digital Library Federation, available at: http://www.clir.org/pubs/reports/pub91/pub91.pdf (accessed 3 July
2011)
Hylton, A. (2002) Measuring & assesing knowledge-value & <strong>the</strong> pivotal role <strong>of</strong> <strong>the</strong> knowledge audit. London: Hylton
Associates
Kurtz, C. F. and Snowden D. J. (2003) The New Dynamics <strong>of</strong> Strategy: Sense-making in a Complex and
Complicated World, IBM Systems Journal 42(3): 462–83.
Nordlander, E. (2005) Knowledge Capture / Acquisition /Elicitation What’s Really <strong>the</strong> Difference?, KnowledgeBoard,
available at: http://www.knowledgeboard.com/item/482 (accessed 3 July 2011)
Snowden, D.J. (2005), Multi-ontology sense making: a new simplicity in decision making, Management Today,
Yearbook 2005, Vol. Vol. 20.
Snowden, D. (2006) Pre-hypo<strong>the</strong>sis research, available at:
www.cognitive-edge.com/files/Pre-hypo<strong>the</strong>sis-Research.pdf (accessed 3 July 2011)
616

Some Principles Underpinning Knowledge Management
Systems Development
Aboubakr Moteleb Zade and Mark Woodman
Middlesex University e-Centre, School <strong>of</strong> Engineering and Information
Sciences, London, UK
A.Zade@mdx.ac.uk
M.Woodman@mdx.ac.uk
Abstract: The practice <strong>of</strong> developing knowledge management systems in organizations is hindered by a lack <strong>of</strong>
research into (a) what is a knowledge management system, (b) how to develop a knowledge management
system in practice, and (c) what role (if any) information technology should play in supporting a knowledge
management system. Hence <strong>the</strong> use <strong>of</strong> ad hoc, proprietary approaches by practitioners. This paper addresses
this gap in research and in practice by presenting three principles that constitute part <strong>of</strong> a grounded <strong>the</strong>ory that
emerged from <strong>the</strong> practice <strong>of</strong> developing knowledge management systems in organizations. The paper focuses
on how each <strong>of</strong> <strong>the</strong> principles (i) emerged from, and was validated in, evidence collected from developing
knowledge management systems, (ii) is connected to related work in <strong>the</strong> literature, and (iii) informs <strong>the</strong> practice <strong>of</strong>
developing knowledge management systems. The principles have fundamental implications for <strong>the</strong> practice and
research <strong>of</strong> developing knowledge management systems in an organizational context. In practice, <strong>the</strong> principles
<strong>of</strong>fer practitioners useful insights into developing knowledge management systems in a way that delivers value to
organizations. In research, <strong>the</strong> principles address several problematic aspects <strong>of</strong> <strong>the</strong> literature, particularly
concerning divergence, fragmentation and inconsistencies in definitions for knowledge management systems, <strong>the</strong>
purpose for developing knowledge management systems and <strong>the</strong> role <strong>of</strong> IT in supporting knowledge
management systems. Fur<strong>the</strong>rmore, <strong>the</strong> paper helps distinguish between information systems, which are <strong>of</strong>ten
used in knowledge management, and knowledge management systems whose characteristics, according to <strong>the</strong>
principles presented are very different.
Keywords: knowledge management, knowledge management systems, knowledge management systems
development, communities <strong>of</strong> practice
1. Introduction
This paper is concerned with practice that emerged in an 8-year research enquiry into how
organizations can effectively develop <strong>the</strong>ir knowledge management systems (KMS); <strong>the</strong> research
methodology is detailed elsewhere (e.g. Moteleb & Woodman 2009) but elements are summarised in
this paper as needed.
1.1 The problem <strong>of</strong> developing KMS
Personal pr<strong>of</strong>essional observations and pr<strong>of</strong>essional observations by knowledge management (KM)
practitioners show that organizations have been facing difficulties in developing <strong>the</strong>ir KMS and in
achieving value from <strong>the</strong>ir KM initiatives. These observations are supported in <strong>the</strong> work <strong>of</strong> authors
such as Gallivan et al. (2003), Malhotra (2005), Rizzi et al. (2009), who reported many KM projects
failing to achieve <strong>the</strong>ir anticipated results. This paper reports on outputs from research into <strong>the</strong>
practice <strong>of</strong> developing KMS in a way that delivers value to organizations.
A review <strong>of</strong> related literature shows divergence, fragmentation and inconsistencies in <strong>the</strong> work <strong>of</strong> <strong>the</strong>
few authors who addressed <strong>the</strong> subject. Divergence is apparent in definitions for KMS between a
technological perspective and a social perspective on what is a KMS. Whereas, some authors such
as Davenport et al. (1998), Alavi & Leidner (1999, 2001), Zack (1999a, 1999b), Hahn & Subramani
(2000), and Chen (2004) consider KMS to be a class <strong>of</strong> information systems (IS), o<strong>the</strong>r authors such
as Savage (1996), Rubenstein-Montano et al. (2001), Hlupic et al. (2002) and Adams & Lamont
(2003) argue that KMS involve more than just IS. The literature also exposes fragmentation in
addressing critical issues concerned with <strong>the</strong> practice <strong>of</strong> developing KMS that are particular to this
paper: what is a KMS in an organizational context and how to develop it in practice (cf. Rubenstein-
Montano et al. 2001, Rubenstein & Geisler 2003), to what purpose KMS are developed (cf. Zack
2000, Malhotra 2005, Spender & Scherer 2007) and what role (if any) IT can play in supporting KMS
(cf. Hahn & Subramani 2000, Hildreth & Kimble 2002). Fur<strong>the</strong>rmore, inconsistencies are evident in <strong>the</strong>
work <strong>of</strong> some authors, such as in <strong>the</strong> influential work <strong>of</strong> Alavi & Leidner (2001) who, for instance,
acknowledge that not all KMS involve IT, yet <strong>the</strong>y define KMS as IT-based systems that aim at
enabling KM processes in <strong>the</strong> organization. The start point <strong>of</strong> <strong>the</strong> work reported here are <strong>the</strong>se
confusions evident in <strong>the</strong> literature.
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1.2 Project setting
Aboubakr Moteleb Zade and Mark Woodman
This research was conducted through four action research-based projects (McKay & Marshall 2001)
in two organizations. The first is a marketing and multimedia consultancy based in <strong>the</strong> UK referred to
hereafter as ORG1. ORG1 specializes in <strong>the</strong> development <strong>of</strong> integrated marketing solutions using
state <strong>of</strong> <strong>the</strong> art technology from conception to delivery in areas such as design, new media and
communication. ORG1 aspires to expand <strong>the</strong>ir services and ability to take-on more clients and
projects, while reducing dependency on <strong>the</strong> owner-manager. Work with ORG1 encompassed two
projects representing two cycles, Cycle 1 & Cycle 2 spanning one year each between 2005 and 2007.
The second organization is a Franco-British recruitment consultancy that specializes in IT recruitment
in Europe referred to hereafter as ORG2. ORG2 provides a wide range <strong>of</strong> HR and recruitment
services including HR and policy consultancy, HR requirement analysis and job specification, job
advertising and selection, executive search and contract recruitment. ORG2 seeks to enhance growth
and competitive advantage using innovative business processes and IT. Work with ORG2 included
two projects representing ano<strong>the</strong>r two cycles, Cycle 3 & Cycle 4 spanning one year each between
2006 and 2008.
The work was undertaken according to action research and grounded <strong>the</strong>ory methodologies (Moteleb
& Woodman 2009). In <strong>the</strong> following sections <strong>the</strong> methodology for developing KMS (shortened to
KMSD) and <strong>the</strong> principles described have emerged from practice in a <strong>the</strong>oretically and practically
validated manner.
1.3 Overview <strong>of</strong> <strong>the</strong> methodology for developing KMS
The project uncovered (Moteleb & Woodman 2009, Moteleb et al. 2009) a fully participative KMS
development (KMSD) approach to be carried out by a team from an organization usually aided by
external, impartial practitioner-consultants. The resulting KMS belongs to <strong>the</strong> organization which
designed and which originated it: unless an organization changes dramatically, its KMS is never
completed or terminated, and its behaviour can never precisely be predicted by <strong>the</strong> organization. It is
carried out ei<strong>the</strong>r in overlapping phases or in an iterative, possibly agile style:
Phase 1 – Sensemaking <strong>the</strong> Problematic Situation is about making sense <strong>of</strong> <strong>the</strong> current,
problematic situation in <strong>the</strong> organization. Because all parties need to share aims and objectives for
<strong>the</strong> work, not mention evaluation criteria, this phase usually precedes <strong>the</strong> launch <strong>of</strong> a formal KMSD
project and gives its rationale and targets.
Phase 2 – Envisioning an Improved Situation is concerned with collective envisioning <strong>of</strong> a desired
improved situation that clearly addresses <strong>the</strong> business problems (challenges and/or opportunities)
that have resulted from initial conversations in sensemaking. The focus here is still on business but
from <strong>the</strong> positive perspective <strong>of</strong> constructing something new than <strong>the</strong> negative one <strong>of</strong> diagnosing
problems. Here <strong>the</strong> team engages in conversations, e.g. in workshops, to envision improved
situations and what it means in terms <strong>of</strong> changing business processes and work behaviour. The
outcome is an explicit, continuously emerging vision <strong>of</strong> <strong>the</strong> improved situations to which an
organization aspires: it is continuously emerging because it changes over and over, as o<strong>the</strong>r phases
come into play and ideas about <strong>the</strong> future are refined.
Phase 3 – Designing a KMS is where <strong>the</strong> team proposes how <strong>the</strong> envisioned improved situation can
be represented by knowledge agents, knowledge flows and knowledge interfaces in a KMS.
Knowledge agents, are essentially ‘active entities’ that are capable <strong>of</strong> holding and interacting with
knowledge; <strong>the</strong>y include people, documents, elements <strong>of</strong> business, etc. Knowledge flows represent
knowledge that is transferred between <strong>the</strong> active entities, <strong>the</strong> agents, and knowledge interfaces are
<strong>the</strong> points <strong>of</strong> interaction. The concept <strong>of</strong> knowledge interfaces includes <strong>the</strong> medium for potential
knowledge flows and <strong>the</strong> rules (protocols), which constrain <strong>the</strong>m. So, for example, one knowledge
agent could hold knowledge about all procurement projects and a knowledge interface would link it to
a supplier (ano<strong>the</strong>r knowledge agent), with <strong>the</strong> flow defining what procurement knowledge <strong>the</strong>
supplier do (or could) receive or send.
Phase 4 – Exploring IT Options for <strong>the</strong> KMS is where <strong>the</strong> team considers potential technologies to
(partially) support <strong>the</strong> KMS design that has been expressed in terms <strong>of</strong> knowledge agents, flows and
interfaces. Potential technical implementations are considered according to degree to which <strong>the</strong>y are
likely to integrate organizational, social and technological aspects <strong>of</strong> <strong>the</strong> KMS and according to cost,
complexity, availability, etc. The main activities are to engage stakeholders in exploring suitable
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Aboubakr Moteleb Zade and Mark Woodman
technologies to support <strong>the</strong> representation <strong>of</strong> knowledge agents, flows and interfaces and to decide
on a technology strategy <strong>of</strong> buying, building, or integrating IT components and applications to support
<strong>the</strong> KMS
Phase 5 – Managing <strong>the</strong> Evolutionary Potential <strong>of</strong> <strong>the</strong> KMS is concerned with ensuring that <strong>the</strong>
KMS evolves in keeping with <strong>the</strong> changing organizational needs and <strong>the</strong> changing environment <strong>of</strong> <strong>the</strong>
organization. Its purpose is not ‘technical’ in that it is not purely to do with <strong>the</strong> KMS (and its use <strong>of</strong> IT
or not). It has a monitoring and maintenance function but its purpose is also to detect oncoming
changes in apparent ‘signals’ and ‘trends’ and to cycle back through <strong>the</strong> earlier phases making sense
<strong>of</strong> <strong>the</strong> apparent changes, envisioning new work behaviour, etc. Inevitably <strong>the</strong> owners <strong>of</strong> <strong>the</strong> KMS may
decide to start a new initiative
1.4 Principles for KMSD methodology
The five-phase methodology outlined above is guided in practice by a set <strong>of</strong> principles that underpin it.
Indeed we consider that <strong>the</strong> term ‘methodology’ is only valid if philosophical principles can be
explicitly stated that underpin <strong>the</strong> ‘methods’ used. In <strong>the</strong> following sections we discuss three <strong>of</strong> <strong>the</strong>se
principles that are essential for practitioners to understand if KMSD is to be carried out in a
repeatable, systematic manner that <strong>of</strong>fers value to organizations.
In each <strong>of</strong> <strong>the</strong> three following sections one <strong>of</strong> <strong>the</strong> emergent principles are discussed. They are
compared to relevant aspects <strong>of</strong> <strong>the</strong> published literature; each discussion concludes with
recommendations to practitioners for developing KMS. Allied to <strong>the</strong>se principles are sets <strong>of</strong> <strong>the</strong>mes
and concepts, such as locating or communicating knowledge; <strong>the</strong>se are mentioned in <strong>the</strong> discussions
but for brevity are not detailed here.
2. Complexity principle: KMS address complexity in problematic situations
The organizational situations addressed using KMS in this research exhibited properties similar to that
<strong>of</strong> complex adaptive systems, i.e. change, unpredictability and uncertainty, hence <strong>the</strong> connection with
complexity thinking. Teams in both organizations, aided by external researcher-consultants, found it
difficult to address complexity in <strong>the</strong>ir problematic situations using IS solutions. Instead, <strong>the</strong> teams
realized that addressing complexity required unconventional approaches, which led to <strong>the</strong> emergence
<strong>of</strong> <strong>the</strong> KMSD methodology. According to Laszlo & Laszlo (2002), complexity thinking is concerned
with <strong>the</strong> study <strong>of</strong> evolving systems that engage in <strong>the</strong> self-organizing dynamics <strong>of</strong> self-maintenance,
self-renewal, and self-transcendence. Like complex adaptive systems, KMS are continually evolving
in situations characterized by unpredictability and <strong>the</strong> state <strong>of</strong> edge-<strong>of</strong>-chaos. Outputs <strong>of</strong> a complex
adaptive system are “nei<strong>the</strong>r predictable from, deducible from, nor reducible to <strong>the</strong> parts alone”
(Goldstein 1999). Unpredictability in sensemaking <strong>of</strong> <strong>the</strong> organizational problematic situations in this
research, however, was apparent not only in difficulties in predicting outputs based on inputs to <strong>the</strong>
KMS, but also in difficulties in identifying and understanding all inputs during <strong>the</strong> development
process. For example, as situations were continually changing in organizations, teams found it difficult
to foresee who needs to talk to whom, about what and how. Fur<strong>the</strong>rmore, an edge-<strong>of</strong>-chaos property
indicates that complex situations can create behaviour that is nei<strong>the</strong>r definitely predictable nor
unpredictable, because <strong>the</strong>re is enough chaos to preclude all prediction, but also enough order to
maintain functionality (Smith & Humphries 2004). Organizational situations studied in this research
were fluctuating between states <strong>of</strong> stability and edge-<strong>of</strong>-chaos. For example, ORG1 had repeatedly
been in a state <strong>of</strong> edge-<strong>of</strong>-chaos, as <strong>the</strong>ir entire internal development team changed twice in two
years and <strong>the</strong>ir external contractors have been continually changing.
Following on <strong>the</strong> above relationships between KMS and complex adaptive systems, this research
used concepts from complexity thinking to interpret business processes and work behaviours in <strong>the</strong>
organizational problematic situations. Yet, <strong>the</strong> emergent methodology for developing KMS could not
be entirely interpreted by, or contrasted with, concepts in complexity thinking, due to scarcity in
methodologies that address complex adaptive systems in organizations. Sense-making, however, is
one methodology that apparently stands out in complexity thinking since it was first developed in <strong>the</strong>
early 1970s (cf. Dervin 1998). This section focuses on contrasting <strong>the</strong> emergent KMS methodology
with <strong>the</strong> sense-making methodology by examining concepts in Snowden’s (2002) sense-making
framework, “Cynefin”, which is regarded to be particularly pertinent in this area.
The Cynefin framework originated in <strong>the</strong> practice <strong>of</strong> KM with <strong>the</strong> aim <strong>of</strong> helping practitioners to
approach complex problems in new ways based on <strong>the</strong> view that “humans use patterns to order <strong>the</strong>
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Aboubakr Moteleb Zade and Mark Woodman
world and make sense <strong>of</strong> things in complex situations” (Kurtz & Snowden 2003). The framework
categorizes organizational situations into four domains as illustrated in Figure 1. The nature <strong>of</strong>
situations in each <strong>of</strong> <strong>the</strong>se domains is different. According to Kurtz & Snowden (2003), <strong>the</strong> right-hand
domains are those <strong>of</strong> order: (i) <strong>the</strong> ‘simple’ domain <strong>of</strong> known cause-and-effect relationships, where
predictive models can be created, as cause-and-effect relationships are “generally linear, empirical in
nature, and not open to dispute”, and (ii) <strong>the</strong> ‘complicated’ domain <strong>of</strong> knowable cause-and-effect
relationships, where “entrained patterns” allow for structured models based on assumptions, as
cause-and-effect relationships may not be fully known, or may be known only to a limited group <strong>of</strong>
people. Predictability in <strong>the</strong> two ordered domains makes IS a suitable solution because situations in
<strong>the</strong>se domains mostly deal with knowledge that can be captured and embedded in formalized
processes (i.e. explicit knowledge), e.g. through documented operational procedures. In contrast, <strong>the</strong>
left-hand domains are those <strong>of</strong> un-order: (iii) <strong>the</strong> complex domain, where cause-and-effect
relationships are only perceivable in retrospect, and (iv) chaos, where cause-and-effect relationships
are not perceivable until <strong>the</strong> situations move to one <strong>of</strong> <strong>the</strong> aforementioned mentioned domains (Kurtz
& Snowden 2003). Thus, complexity <strong>of</strong> situations in <strong>the</strong> un-ordered domains renders it difficult to
apply simple, structured IS solutions, unless <strong>the</strong>se situations are moved to an ordered domain,
because unpredictability and change in business processes make it difficult for structured rules and
procedures to apply (Markus et al. 2002, El Sawy & Majchrzak 2004).
Figure 1: Cynefin domains (based on Kurtz & Snowden 2003).
In terms <strong>of</strong> <strong>the</strong> Cynefin framework, <strong>the</strong> organizational situations in this research were continually
moving from one domain to ano<strong>the</strong>r. However, <strong>the</strong> sensemaking phase positioned organizational
situations mainly in <strong>the</strong> complex domain (i.e. between <strong>the</strong> states <strong>of</strong> edge-<strong>of</strong>-chaos and knowable), as
“nonlinear relationships”, or “positive and negative feedback”. This made relationships between cause
and effect distant in time and space (Stacey 2011). In <strong>the</strong>se complex situations, “emergent patterns”
can be perceived but not predicted, because while cause-and-effect relationships exist between
“agents”, “both <strong>the</strong> number <strong>of</strong> agents and <strong>the</strong> number <strong>of</strong> relationships defy categorization or analytic
techniques” (Kurtz & Snowden 2003). Thus, a team <strong>of</strong> stakeholders <strong>of</strong> <strong>the</strong> organization, aided by <strong>the</strong>
KM practitioner, can determine whe<strong>the</strong>r a KMS would be considered as a candidate solution, based
on <strong>the</strong> level <strong>of</strong> complexity in <strong>the</strong>ir problematic situations.
Although Snowden’s (2002) framework may be useful in locating organizational problematic situations
along <strong>the</strong> Cynefin domains according to complexity, <strong>the</strong> framework does not <strong>of</strong>fer insights into how to
develop organizational systems that deal with such complexity. This is where <strong>the</strong> emergent KMSD
methodology brings value to KMS research and practice. The emergent methodology does not
propose to move <strong>the</strong> organizational complex situations to some order (like <strong>the</strong> case in IS development
methodologies). Instead, <strong>the</strong> KMSD methodology proposes to address complexity in organizational
problematic situations using incremental, iterative phases. This is in accordance with arguments by
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authors such as Malhotra (1999), who states that KMS should account for complexity and
unpredictability in changing organizational situations.
3. Just-in-time principle: KMS enable just-in-time knowledge sharing
Emergent concepts in <strong>the</strong> design phase showed that a KMS is about facilitating <strong>the</strong> communication <strong>of</strong>
relevant knowledge to relevant users, when, where and how it is needed. As it was difficult to
determine a priori what knowledge will be required by whom, when, where and in what format, <strong>the</strong>
design <strong>of</strong> <strong>the</strong> KMS was kept flexible to cater for new requirements as <strong>the</strong>y emerged. This finding from
practice contrasts with a tendency in <strong>the</strong> literature to define KMS as <strong>the</strong> settings, infrastructure,
policies, etc. required for delivering <strong>the</strong> right knowledge, to <strong>the</strong> right person at <strong>the</strong> right time and <strong>the</strong>
right place (e.g. Quintas et al. 1997, Devedzic 2001, Hlupic et al. 2002).
The argument in <strong>the</strong> literature implies that an organization can pre-determine (a) what <strong>the</strong> right
knowledge is, (b) who <strong>the</strong> right persons are (both <strong>the</strong> person who requests and <strong>the</strong> person who
supplies <strong>the</strong> knowledge), (c) where and when <strong>the</strong> right place and time are, and (d) how knowledge is
required or how it will be used. Knowledge that can be expressed (i.e. explicit knowledge) may be
pre-determined in this way, but <strong>the</strong> kind <strong>of</strong> knowledge that <strong>the</strong> organizational stakeholders in this
research considered to be valuable (i.e. tacit knowledge), could not be separated from its situational
context, i.e. could only be determined just-in-time as situations unfolded.
In contrast with <strong>the</strong> literature, <strong>the</strong>refore, <strong>the</strong> design phase showed that KMS are concerned with ondemand,
just-in-time identification <strong>of</strong> (a) relevant knowledge, (b) relevant knowledge agent, (c)
suitable place and time, and (d) suitable way to communicate knowledge. This is because
unpredictability, uncertainty and continual change <strong>of</strong> organizational situations make it difficult to predetermine
what knowledge will be required by who, when, where and how. This is an observation also
by El Sawy & Majchrzak (2004), who argue <strong>the</strong> need for “real-time” KM to address complexity in
critical, unknown issues that require “identification, interpretation, articulation and resolution” as <strong>the</strong>y
emerge, and hence also reinforcing <strong>the</strong> principle that KMS address complexity in organizational
situations.
Research into what knowledge is in an organizational context was found useful in explaining what is
considered to be relevant knowledge by <strong>the</strong> stakeholders, and how it can reach <strong>the</strong> relevant agent at
a suitable time, place and in a suitable way. Nonaka & von Krogh (2009) argue that according to
organizational knowledge creation <strong>the</strong>ory, knowledge is defined in three parts: (i) “individuals justify
<strong>the</strong> truthfulness <strong>of</strong> <strong>the</strong>ir beliefs based on <strong>the</strong>ir interactions with <strong>the</strong> world”, (ii) knowledge is <strong>the</strong>
“actuality” and/or “potentiality” <strong>of</strong> “skilful action” and (iii) “knowledge is explicit and tacit along a
continuum” (Nonaka & von Krogh 2009). Thus, knowledge is viewed to be <strong>the</strong> result <strong>of</strong>, and inherited
in, actions and interactions <strong>of</strong> <strong>the</strong> stakeholders <strong>of</strong> <strong>the</strong> organization.
Knowledge, <strong>the</strong>refore, is contextual in that it is embedded in, and changing with actions and
interactions. This knowledge can only be partially expressed (e.g. <strong>the</strong> actuality <strong>of</strong> skilful action), while
part <strong>of</strong> this knowledge remains inexpressible, i.e. tacit (e.g. <strong>the</strong> potentiality <strong>of</strong> skilful action), and hence
is only shared through means and media appropriate to <strong>the</strong> organizational stakeholders. However,
since tacit and explicit knowledge are inherently inseparable (Hildreth & Kimble 2002, Nonaka & von
Krogh 2009), <strong>the</strong> explicit part <strong>of</strong> knowledge (e.g. who holds it, in what format, how it can be used, in
which context) was taken as a pointer to <strong>the</strong> tacit part. This view is supported by Nonaka & von Krogh
(2009), who argue that “explicit knowledge is always grounded in tacit knowledge”. Thus, successful
KM initiatives need to maintain a balance between tacit and explicit knowledge (Hildreth & Kimble
2002). In this research, IT provided explicit pointers to tacit knowledge among stakeholders through
<strong>the</strong> representation <strong>of</strong> knowledge flows and interfaces among knowledge agents. However, tacit
knowledge was mainly communicated through non-IT means and media. Both <strong>the</strong> IT and non-IT parts
formed <strong>the</strong> KMS. These findings in practice are consistent with <strong>the</strong> work <strong>of</strong> authors such as Davenport
& Prusak (1998) and Hildreth & Kimble (2002), who argue that IT should be used to enable people to
share tacit knowledge directly and not try to represent tacit knowledge.
The importance <strong>of</strong> context has also been addressed by “socio-technical” scholars in research
concerned with IS as “social systems” (Land & Hirschheim 1983 cited in Avgerou 2001). The work <strong>of</strong>
Dourish (2004) is pertinent in this area, as he takes a complexity perspective on ‘context’ that can be
summarized by <strong>the</strong> following four statements:
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Aboubakr Moteleb Zade and Mark Woodman
ra<strong>the</strong>r than considering context to be mere information, ‘contextuality’ is viewed to be a relational
property,
context is not pre-determined, but ra<strong>the</strong>r defined dynamically,
context is not stable, but changing with <strong>the</strong> changing situation and
context arises from <strong>the</strong> activity, hence cannot be separated from content.
The second and third statements are particularly relevant to <strong>the</strong> principle <strong>of</strong> just-in-time KM, as <strong>the</strong>
identification <strong>of</strong> relevant knowledge, relevant agents, and suitable place, time and way was
determined by a situational context that was changing according to <strong>the</strong> changing situation.
Accordingly, Dourish (2004) argues persuasively that “context isn’t something that describes a setting;
it’s something that people do. It is an achievement, ra<strong>the</strong>r than an observation; an outcome, ra<strong>the</strong>r
than a premise”.
It follows from <strong>the</strong> above that it is imperative to design <strong>the</strong> KMS to enable on-demand, just-in-time KM.
Accordingly, <strong>the</strong> team <strong>of</strong> <strong>the</strong> stakeholders <strong>of</strong> <strong>the</strong> organization, aided by <strong>the</strong> KM practitioner, should
design <strong>the</strong> KMS in a way that allows on-demand, just-in-time identification <strong>of</strong> relevant knowledge to
<strong>the</strong> relevant knowledge agents, where, when and how <strong>the</strong>y need it. This is achieved by representing
knowledge flows and interfaces among <strong>the</strong> knowledge agents, which provides <strong>the</strong> organizational
stakeholders with a means to locate knowledge <strong>of</strong> value to <strong>the</strong>m. This representation can be
supported by IT, however <strong>the</strong> communication and interaction with such knowledge is done by non-IT
means that is suitable to <strong>the</strong> organizational stakeholders and determined just-in-time as a need
emerges.
4. Multiple-view principle: One view <strong>of</strong> <strong>the</strong> KMS does not fit all
Consideration <strong>of</strong> IT solutions to support <strong>the</strong> KMS design revealed that <strong>the</strong> representation <strong>of</strong>
knowledge agents was perceived differently by different stakeholders and representation <strong>of</strong>
knowledge flows and knowledge interfaces was contextual. For example, <strong>the</strong> teams revealed that <strong>the</strong>
same knowledge connection could be viewed differently by ei<strong>the</strong>r end <strong>of</strong> <strong>the</strong> knowledge connection
(an individual can relate projects with similar tasks, whereas a project can relate individuals with
similar expertise). Similarly, knowledge value, purpose, and nature also differed according to
knowledge perspective. Moreover, <strong>the</strong>se representations were changing according to <strong>the</strong> changing
situations. Hence, according to <strong>the</strong> above discussion, one view, hence one representation, <strong>of</strong> <strong>the</strong>
KMS does not fit all <strong>the</strong> various perspectives on <strong>the</strong> KMS by <strong>the</strong> various stakeholders.
Findings from exploring IT options to support <strong>the</strong> KMS revealed difficulties in identifying one view <strong>of</strong>
<strong>the</strong> KMS that would fit all <strong>the</strong> users, or even a set <strong>of</strong> views for <strong>the</strong> different groups <strong>of</strong> stakeholders.
These findings were also reinforced by a review <strong>of</strong> findings from <strong>the</strong> envisioning and design phases,
which revealed that users have different perspectives. For example, during <strong>the</strong> design phase <strong>the</strong>
members <strong>of</strong> <strong>the</strong> organizational teams <strong>of</strong> stakeholders exposed different perspectives on <strong>the</strong>
relationships among knowledge agents, flows and interfaces.
Thus, developing <strong>the</strong> KMS with one view to fit all users, or even with a defined set <strong>of</strong> views for groups
<strong>of</strong> users, not only was found to be difficult to implement due to <strong>the</strong> complexity <strong>of</strong> <strong>the</strong> organizational
situations, but also was perceived to be practically useless because it contradicted with <strong>the</strong>ir visions
for effectively locating, communicating and interacting with knowledge. These findings are supported
by <strong>the</strong> work <strong>of</strong> authors, e.g. Boland & Tenkasi (1995), who argue that “producing knowledge to create
innovative products and processes in [knowledge organizations] requires <strong>the</strong> ability to make strong
perspectives within a community, as well as <strong>the</strong> ability to take <strong>the</strong> perspective <strong>of</strong> ano<strong>the</strong>r into
account”.
These findings in practice contrast with approaches taken by IS development methodologies, which
mostly aim at designing one view <strong>of</strong> <strong>the</strong> IS for a representative sample <strong>of</strong> <strong>the</strong> organizational users.
According to Hahn & Subramani (2000), IS development methodologies “generally sample typical or
representative users to determine requirements and perform user testing”. Unlike IS development,
<strong>the</strong>refore, KMS should cater for <strong>the</strong> heterogeneity <strong>of</strong> systems users. This is also a position taken by
authors such as Hahn & Subramani (2000), who argue that homogeneity <strong>of</strong> systems users – with
respect to <strong>the</strong>ir objectives in using <strong>the</strong> system – is an assumption implicit in IS development, which is
not suitable in KMS. Heterogeneity <strong>of</strong> systems users is especially present in lateral flexible
organizational forms, such as <strong>the</strong> ones reported in this <strong>the</strong>sis, as <strong>the</strong>y rely on “peer-to-peer
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collaboration (as opposed to a vertical hierarchy) in achieving organizational objectives” Boland &
Tenkasi (1995).
Fur<strong>the</strong>rmore, findings from practice showed that <strong>the</strong> different users’ perspectives on relationships
among knowledge agents are dynamic, changing with <strong>the</strong> changing roles <strong>of</strong> <strong>the</strong> knowledge agents
and with <strong>the</strong> changing organizational situations. Each individual stakeholder assumed different
identities in different roles <strong>the</strong>y are performing and <strong>the</strong>se identities changed according to <strong>the</strong> changing
situations. For example, while a programmer in ORG1 assumed a certain identity when working as
part <strong>of</strong> a team, <strong>the</strong> same person assumed a different identity when working as a project manager, for
instance in dealing with clients. This is consistent with <strong>the</strong> argument by Kurtz & Snowden (2003) that
“humans are not limited to one identity”. Kurtz & Snowden explain that in complex systems, an agent
could be anything that has identity, and <strong>the</strong>se agents constantly flex <strong>the</strong>ir identities both on <strong>the</strong>
individual level and on <strong>the</strong> collective level, and hence will behave differently in different contexts.
Similarly, <strong>the</strong> Knowledge flows and interfaces were found to be contextual, and hence continually
changing with change in organizational situations. According to Weick (1995) identities are
constructed in <strong>the</strong> process <strong>of</strong> interaction between people.
These findings in practice can be explained in <strong>the</strong> context <strong>of</strong> complexity thinking as discussed in <strong>the</strong>
first principle. This is consistent with <strong>the</strong> argument by Boland & Tenkasi (1995), who posit that “<strong>the</strong>
multiple communities <strong>of</strong> knowing in knowledge-intensive firms overlap in complex and shifting ways,
[because] <strong>the</strong>re is a rich structural hierarchy <strong>of</strong> communities <strong>of</strong> knowing within <strong>the</strong> firm, and between
<strong>the</strong> firm and its environment”. According to Snowden (2002), in unordered domains it is difficult to
regiment people due to continuous change in views, and unpredictability and uncertainty in what
knowledge will be required, by who, when and how. For example, based on <strong>the</strong> concept <strong>of</strong> holism,
reducing <strong>the</strong> system to its constituent parts, in this case by sampling typical or representative users, is
inadequate for understanding <strong>the</strong> behaviour, and thus <strong>the</strong> output, <strong>of</strong> <strong>the</strong> whole. These findings in
practice also contrast with approaches taken in developing IS, which ei<strong>the</strong>r enforce or support existing
regimented processes or introduce new ones (e.g. precisely defining functional roles and fixing <strong>the</strong>se
in s<strong>of</strong>tware).
It follows from <strong>the</strong> above discussion that developing one view <strong>of</strong> <strong>the</strong> KMS does not fit all users. Thus,
a KMS, and hence <strong>the</strong> IT that partially support it, should be developed in a way that caters for
complexity in organizational situations. This is consistent with <strong>the</strong> work <strong>of</strong> authors, e.g. Malhotra
(2001), who argue a need for designing unconventional systems to deal with “wicked business
environments that defy <strong>the</strong> programmed logic based upon pre-specification, prediction and predetermination”.
The implication <strong>of</strong> this is tw<strong>of</strong>old: (a) KMS should cater for <strong>the</strong> different identities, and
hence <strong>the</strong> multiple perspectives, <strong>of</strong> <strong>the</strong> different instances <strong>of</strong> <strong>the</strong> knowledge agents and (b) KMS
should allow for changing identities due, for instance, to changing roles <strong>of</strong> <strong>the</strong> knowledge agents.
According to Boland & Tenkasi (1995), “in order for perspective taking to proceed, <strong>the</strong> diverse
knowledge held by individuals in <strong>the</strong> organization must be represented in its uniqueness, and made
available for o<strong>the</strong>rs to incorporate in a perspective-taking process”.
Accordingly, consideration for IT options to support <strong>the</strong> KMS should explore solutions that allow for
personalized and changing perspectives <strong>of</strong> knowledge agents by enabling <strong>the</strong>m to represent <strong>the</strong>ir
networks (i.e. o<strong>the</strong>r knowledge agents and <strong>the</strong>ir relationships) as <strong>the</strong>y view it, and by allowing for <strong>the</strong>
representation <strong>of</strong> knowledge agents, flows and interfaces to change with <strong>the</strong> changing situations.
According to Boland & Tenkasi (1995), “valuing diversity <strong>of</strong> knowledge by enabling each type <strong>of</strong>
expertise to make unique representations <strong>of</strong> <strong>the</strong>ir understandings, and assisting actors with different
expertise to better recognize and accept <strong>the</strong> different ways <strong>of</strong> knowing <strong>of</strong> o<strong>the</strong>rs, is <strong>the</strong> foundation for
perspective taking. It can be encouraged by communication systems that include an emphasis on
supporting <strong>the</strong> distinctive needs <strong>of</strong> separate communities <strong>of</strong> knowing” Boland & Tenkasi (1995).
5. Summary and conclusion
For an approach to developing KMS to be termed a ‘methodology’ we argue that <strong>the</strong> philosophical
principles be articulated. This is not a matter <strong>of</strong> semantics, but part <strong>of</strong> an emphasis that methods for
developing KMS must always be situated in a context, which affects how <strong>the</strong> practitioner utilises <strong>the</strong>
concepts, procedures and techniques needed in KMSD.
The initial setting <strong>of</strong> <strong>the</strong> work reported was four action research cycles in which business problems
and research were simultaneously addressed. The grounded <strong>the</strong>ory methodology was used to
uncover concepts, principles and practices for developing KMS. The paper reprised <strong>the</strong> 5-phase
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methodology for developing KMS, <strong>the</strong> phases being: Sensemaking <strong>the</strong> Problematic Situation,
Envisioning an Improved Situation, Designing a KMS, Exploring IT Options for <strong>the</strong> KMS, and
Managing <strong>the</strong> Evolutionary Potential <strong>of</strong> <strong>the</strong> KMS. The paper <strong>the</strong>n discussed three key principles for
developing KMS:
Complexity Principle: KMS address complexity in problematic situations
Just-in-time Principle: KMS enable Just-in-time knowledge sharing
Multiple-view Principle: One view <strong>of</strong> <strong>the</strong> KMS does not fit all
In various ways <strong>the</strong>se principles are supported and support some positions evident in <strong>the</strong> literature. In
various ways <strong>the</strong>y are at variance with stances taken in <strong>the</strong> literature. However, <strong>the</strong>y are grounded in
a methodology and <strong>the</strong>ory <strong>of</strong> KMS that has validity because it emerged from practice.
These principles have clear relevance to practitioners concerned with developing KMS: <strong>the</strong>re is a
need to recognize that a KMS is truly a system that does not finish, whose cause-and-effect
relationships are obscure and whose predictability is low; a KMS must be designed in a way that
allows on-demand, just-in-time identification <strong>of</strong> relevant knowledge to relevant knowledge agents,
where, when and how <strong>the</strong>y need it; multiplicity and diversity <strong>of</strong> views and hence utility should be
supported in KMS. These principles all have pr<strong>of</strong>ound consequences for practice, for management,
and for IT development, especially as separately and in total <strong>the</strong>y are in disagreement with <strong>the</strong>
practices and principles <strong>of</strong> IS development.
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625

The Effect <strong>of</strong> Strategic Learning Systems and
Organizational Structure on e-Government Performance: A
Survey in <strong>the</strong> Public Sector by Means <strong>of</strong> an Artificial Neural
Network
Kursad Zorlu
Ahi Evran University, Kırsehir, Turkey
kzorlu77@gmail.com
Abstract: The present study aims to measure <strong>the</strong> e-Government performance <strong>of</strong> public institutions and
organizations in Turkey and to determine <strong>the</strong> strategic learning system (SL) and organizational structure (OS) <strong>of</strong>
Turkish e-Government performance. The population <strong>of</strong> <strong>the</strong> study consists <strong>of</strong> <strong>the</strong> public institutions and
organizations which operate through Turkey’s e-Government portal. Accordingly, a poll was conducted on <strong>the</strong>
employees in <strong>the</strong> data processing and/or technical departments <strong>of</strong> <strong>the</strong>se organizations. During <strong>the</strong> application,
150 questionnaire forms were distributed within or sent to 8 organizations where <strong>the</strong> required permission was
obtained and 105 usable forms were returned. The data obtained from <strong>the</strong> questionnaire forms, which employed
a 5 point Likert scale, were produced by Cascade Forward Back Propagation (CFBP) Artificial Neural Networks
(ANNs) in <strong>the</strong> MATLAB program. Three different scales and 52 statements were included in <strong>the</strong> poll in addition to
demographic variables. Within <strong>the</strong> scope <strong>of</strong> <strong>the</strong> findings obtained from <strong>the</strong> study is that <strong>the</strong> performance <strong>of</strong> <strong>the</strong>
organizations operating through <strong>the</strong> e-Government portal in Turkey is not “very good”, though it remains slightly
above <strong>the</strong> average. Additionally, organizational structure was shown to affect strategic learning levels in a
positive and powerful manner and in turn influence <strong>the</strong> e-Government performance by a few degrees. However,
organizational structure did not seem to have an effect on to-and-fro data flow and e-Government performance.
Though organizational structure showed a direct and positive effect on e-Government performance, it is
determined that such an effect is quite behind that effect on <strong>the</strong> learning system.
Keywords: information management, e-Government, performance, organizational learning, organizational
structure
1. Introduction
Private sector enterprises evaluate <strong>the</strong> process <strong>of</strong> change in traditional management understanding in
terms <strong>of</strong> innovation in information management and competiveness, while state-owned institutions
and organizations generally try to adapt <strong>the</strong>mselves to this process by web-focused efforts. However,
<strong>the</strong> expectations and requests <strong>of</strong> individuals who receive a number <strong>of</strong> services from <strong>the</strong> state are
becoming more diverse day by day. Such a variation in social perception is directing today’s state
organizations toward information and communication technologies and <strong>the</strong> increasing overlap
between <strong>the</strong> need for higher quality public services for individuals and expanding specialization on <strong>the</strong>
Internet is resulting in technology-based applications like e-Government, e-trade, and e-signature.
Today, e-Government applications are considered to be tools that can maximize <strong>the</strong> mutual benefits
<strong>of</strong> all <strong>the</strong> stakeholders (citizens, private sector, public institutions and organizations, nongovernmental
organizations) allowing state bureaucracy to resolve its own difficulties while increasing productivity in
<strong>the</strong> public sphere (Stratford et al., 2000; Devadoss et al., 2002; Rowley, 2011).
Several approaches should be taken into consideration in <strong>the</strong> process <strong>of</strong> obtaining <strong>the</strong> desired results
from e-Government applications, including taking advantage <strong>of</strong> <strong>the</strong> private sector’s prior experience
with information and communication technologies, incorporating citizens’ aptness and adaptation to e-
Government applications, making compatible <strong>the</strong> existing information systems <strong>of</strong> <strong>the</strong> organizations
involved in <strong>the</strong> process, and most importantly, directing all <strong>the</strong> stakeholders to cooperation in e-
Government (Lenk and Traunmiller, 2000; Tung and Rieck, 2005). It is possible to interiorize such
things in <strong>the</strong> public sector, to make <strong>the</strong> necessary arrangements and to ensure that a large section <strong>of</strong>
<strong>the</strong> society takes advantage <strong>of</strong> <strong>the</strong> e-Government process in order to reduce bureaucratic formalities
and time loss and ensure that resources are used efficiently (Rocheleau, 2000; Wimmer and
Traunmuller, 2000). Enterprises today that are conscious <strong>of</strong> such facts are able to quickly become
successful in terms <strong>of</strong> pr<strong>of</strong>its and achieve an advantage over <strong>the</strong>ir permanent competition.
As a result <strong>of</strong> <strong>the</strong> new and dynamic aspects <strong>of</strong> e-Government, <strong>the</strong> public sector as a whole is coming
face to face with negative factors arising from <strong>the</strong> bureaucratic system and <strong>the</strong> danger <strong>of</strong> resistance to
change. Therefore, it is strategically necessary to support <strong>the</strong> complex and dynamic arrangements
arising from e-Government applications through an organizational learning system and a proper
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organizational structure (Phang, 2008). An organizational learning system is a strategic statement
concerning <strong>the</strong> assimilation <strong>of</strong> new ideas and <strong>the</strong>ir transfer to <strong>the</strong> organization by a means quicker
than competitors, by affecting <strong>the</strong> information management capacity <strong>of</strong> <strong>the</strong> organization. Learning
processes are <strong>the</strong> dynamic processes at <strong>the</strong> center <strong>of</strong> such a strategy that mediate <strong>the</strong> extension and
stocking <strong>of</strong> information, as well as <strong>the</strong> flow <strong>of</strong> information, required by an organization in an
information-intensive sector (Ulrich et al., 1993).
The fact that a strategic learning system can contribute to e-Government applications may indicate
correlation with organizational structure as well. It is very important for <strong>the</strong> organizational structures <strong>of</strong>
<strong>the</strong> institutions and organizations within <strong>the</strong> scope <strong>of</strong> e-Government to act as a mechanism that
directs interactions among employees and facilitates adaptation to <strong>the</strong> conditions <strong>of</strong> a changed
environment, in integration with incentive systems (Grant, 1996; Huysman, 2000). Accordingly, it may
be alleged that <strong>the</strong> organizational structure (technology, structure, culture) and <strong>the</strong> process capability
(collecting, transforming, applying and protecting data) can direct an information management
mechanism by speeding up learning processes at various levels and thus, can bea determining agent
<strong>of</strong> organizational activities (Gold, 2001).
The present study aims to measure e-Government performance <strong>of</strong> public institutions and
organizations which operate through Turkey’s e-Government portal and to determine <strong>the</strong> effect <strong>of</strong>
strategic learning systems and organizational structure, studied under five basic dimensions, on <strong>the</strong>
overall performance. The research model constituted for this purpose is capable <strong>of</strong> presenting
relational and original findings both wholly and dimensionally. The study will first introduce conceptual
and <strong>the</strong>oretical knowledge, including a review <strong>of</strong> literature, and present <strong>the</strong> results <strong>of</strong> <strong>the</strong> poll
conducted in public institutions and organizations participating in <strong>the</strong> research.
2. Conceptual and Theoretical Frame
2.1 E-Government
Developments in information technologies and <strong>the</strong> rapid spread <strong>of</strong> <strong>the</strong> Internet make <strong>the</strong> public sector
more flexible, dynamic and innovative for individuals. For this reason, <strong>the</strong> emergence <strong>of</strong> world-wide e-
Government applications can be considered a technological revolution, developed toge<strong>the</strong>r with
information management systems, as well as a strategic extension bringing radical changes in public
information management systems (School, 2006; Baker, 2009; Tung and Rieck, 2005). E-Government
is a particular form <strong>of</strong> electronic business transaction, with certain objectives and properties, requiring
a unique planning process (Norris and Moon, 2005; Tsai et al, 2009).
2.2 E-Government Performance
Today, e-Government applications have become compulsory, going beyond expectations, parallel to
<strong>the</strong> change in management understanding. Therefore, organizational obstacles should be eliminated
to allow <strong>the</strong> e-Government process to succeed and organizational performance to improve. Such a
requirement can be met under <strong>the</strong> condition that certain rules are adjusted or bypassed, thus
requiring from higher management within organizations <strong>the</strong> required support and care (Barret and
Green, 2001). It is possible to keep step with environmental changes by means <strong>of</strong> organizational
learning and employees settle at <strong>the</strong> center <strong>of</strong> learning system. Thus, it is possible to provide
organizational participation and to eliminate performance obstacles (Argyris, 1990).
The ability <strong>of</strong> public sector organizations to keep step with such changes is primarily a result <strong>of</strong>
strategic decisions. Such decisions solidify top managers’ roles as strategists within an organization.
For this reason, <strong>the</strong> adaptation <strong>of</strong> <strong>the</strong> state bureaucracy, especially top management and all <strong>the</strong> stake
holders involved, to <strong>the</strong> e-Government process may be correlated with <strong>the</strong> level <strong>of</strong> consciousness,
care and specialty spreading from <strong>the</strong> top down (Barca, 2006; Gupta and Jana, 2003).
A number <strong>of</strong> factors determine <strong>the</strong> effectiveness <strong>of</strong> e-Government applications within organizations,
including <strong>the</strong> specialization <strong>of</strong> its employees and <strong>the</strong>ir sufficiency in number, its organizational
structure, <strong>the</strong> conformity <strong>of</strong> information and communication technologies to organizational
management, and <strong>the</strong> degree <strong>of</strong> success in its relationships with o<strong>the</strong>r organizations (Fountain, 2001;
Danzieger, 2004).
A review <strong>of</strong> literature shows that previous studies <strong>of</strong> e-Government performance aim to determine
technological sufficiency in general. Gil-Garcia and Pardo (2005) suggest that an e-Government
system and <strong>the</strong> problems experienced in such a process are also <strong>the</strong> factors determining <strong>the</strong>
performance <strong>of</strong> <strong>the</strong> process and consist <strong>of</strong> information management, information technology,
627

Kursad Zorlu
organizational and managerial components, institutionalization level and legal regulations. Baker
(2009) determined e-Government performance criteria as web services availability, online services,
help and support available to <strong>the</strong> user, <strong>the</strong> information management system, information reliability and
accessibility. Fur<strong>the</strong>rmore, an activity that consists <strong>of</strong> <strong>the</strong> integrated performances <strong>of</strong> those
organizations which conduct <strong>the</strong> processes and applications <strong>of</strong> e-Government performance
represents ano<strong>the</strong>r such tool <strong>of</strong> determination. Accordingly, in relation to a measurement <strong>of</strong> e-
Government performance, <strong>the</strong> dimensions <strong>of</strong> an organization can be determined as its “management
and human resources”, “organizational substructure and technological sufficiency” and “functionality”.
2.3 E-Government in Turkey
Turkey was ranked 76 th in 2008 and 69 th in 2010 in <strong>the</strong> “e-Government readiness index” among 192
states, as determined by <strong>the</strong> United Nations (DPT, 2005). Additionally, a report issued by Brown
University on e-Government performance ranks Taiwan first among 198 states, followed by South
Korea, Canada and USA in second, third and fourth place respectively, Turkey was ranked 59 th in <strong>the</strong>
same report. A positive change is observed in <strong>the</strong> Turkish public sector which began implementation
in 1998, in terms <strong>of</strong> <strong>the</strong> number and quality <strong>of</strong> services provided (Arifoğlu, 2004). The most important
step <strong>of</strong> e-Government services in Turkey in <strong>the</strong> e-Government main portal began in 2008. Currently,
28 public institutions and organizations provide 247 services at <strong>the</strong> e-Government main portal. The
number <strong>of</strong> people who get services at <strong>the</strong> e-Government main portal in Turkey has reached 7.1
million.
2.4 Strategic Learning System
Today’s organizations have to form a learning process open to development and innovation to be able
to increase <strong>the</strong>ir existing information capacities. An information management system <strong>of</strong>fers
information to <strong>the</strong> employees, while learning processes originate with employees to form a
mechanism which constantly feeds <strong>the</strong> information system. Thus, it can be argued that information
management and organizational learning are <strong>the</strong> reflections <strong>of</strong> one ano<strong>the</strong>r (Akgün et al, 2009).
Organizational learning is a process <strong>of</strong> error, determination and repair. Therefore, organizational
learning prevents <strong>the</strong> problems in <strong>the</strong> organization from being omitted or covered. The fact that
learning process is double – loop allows it to be used in solving organizational problems and disputes
as an effective way (Argyris, 1977). Strategically, <strong>the</strong> learning process is related to <strong>the</strong> transmission
and adaptation <strong>of</strong> routine ideas, strategies, ideologies, procedures and symbols within an
organization. Learning means to enhance and streng<strong>the</strong>n <strong>the</strong>se routine resources by taking on new
routines from external sources, at ano<strong>the</strong>r level. All such components are kept in an organizational
memory, which stores decisions, applications and processes within a specific structure and
transforms <strong>the</strong>m into an information source for <strong>the</strong> organization (Cross & Israelit, 2009). The success
<strong>of</strong> learning depends on <strong>the</strong> speed and capacity <strong>of</strong> <strong>the</strong> organization for adapting its organizational
memory (Phang et al, 2008). Crossan et al. (1989) developed Nonaka’s (1994) information
management model, consisting <strong>of</strong> collecting, protecting, adapting and sharing information, and has
studied such a strategic learning system designed as a process (lining up in form <strong>of</strong> 4I, at four stages
and with a comprehensive point <strong>of</strong> view. Bontis et al (2002) attempted an adapted model based on
<strong>the</strong> conceptual frame and findings from <strong>the</strong> above-mentioned study. Bontis’s model concerns a
strategic learning method at individual, group and organization levels and enables <strong>the</strong> support and
control <strong>of</strong> <strong>the</strong> learning system by feed forward and feedback flows.
Individual-level learning includes developing individual interpretation as well as collective perfection <strong>of</strong>
employees, streng<strong>the</strong>ning pride and loyalty for <strong>the</strong>ir place <strong>of</strong> employment and encouraging employees
to show an attitude open to change that departs from traditional understanding (Yang, 2004; Nevis et
al, 1995). Group-level learning refers to collective learning efforts that speed up <strong>the</strong> sharing <strong>of</strong>
individual interpretations and facilitate information circulation, which toge<strong>the</strong>r determine <strong>the</strong>
development <strong>of</strong> a common understanding. Organization-level learning ensures that new routines are
discovered, that innovations and changes are settled at an institutional level. (Hong etal, 2006; Yang,
2004). Feed-forward and feedback learning flows are support and control processes that provide
continuity for a strategic learning system to change and renew. In <strong>the</strong> case that a learning stock
acquired at individual, group and organization levels cannot be directed to <strong>the</strong> objectives <strong>of</strong> <strong>the</strong>
organization (feed-forward) or interpreted information can not provided for re-learning processes
(feedback), <strong>the</strong>n it is difficult for a strategic learning system to affect <strong>the</strong> results positively (Bontis,
2002; Huysman, 2000).
628

Figure 1: Strategic Learning System (SLS).
2.5 Organizational Structure
Kursad Zorlu
Organizational structure is a basic component <strong>of</strong> an organization that allows for information-sharing
and optimization in terms <strong>of</strong> technical design and order and, in <strong>the</strong> case <strong>of</strong> an inconsistency, may be
considered an obstacle to effective information management. Organizational structure is an
organizational factor which determines policies and processes, <strong>the</strong> ways to reach information and <strong>the</strong>
form <strong>of</strong> information flow. Coordination and cooperation advantages which increase informationsharing
among <strong>the</strong> members <strong>of</strong> organization can only be provided by organizational flexibility. The
most proper platform for a strategic learning system may be thought to be a mixture <strong>of</strong> <strong>of</strong>ficial, nonhierarchical
and flexible organizational system (Leonard, 1998). Integrating <strong>the</strong> organizational
incentive system into <strong>the</strong> organizational structure and forming a flexible and plain organizational
structure affect a strategic learning system and may contribute substantially to <strong>the</strong> applications <strong>of</strong> e-
Government, quickly and without problems (Sanchez & Mahoney, 1996; Gold et al, 2001).
3. Research Methodology
3.1 Purpose, Method and Sample Group
The present study aims to measure e-Government performances <strong>of</strong> <strong>the</strong> public institutions and
organizations in Turkey and to determine <strong>the</strong> effects <strong>of</strong> a strategic learning system and organizational
structure on such a performance. For this reason, a survey method has been used in this study. Some
survey forms have been distributed and collected back by hand while some have been sent by e-mail.
The variants used in <strong>the</strong> survey, except for demographic ones, have been measured by a 5 point
Likert scale consisting <strong>of</strong> “1=I never agree”, “2=I do not agree”, “3= I have no idea”, “4= I agree”, “5=I
fully agree”. 23 statements included in <strong>the</strong> strategic learning system have been cited from Bontis et al
(2002) and 9 statements concerning organizational structure have been cited from Gold et al (2001).
20 statements included in <strong>the</strong> scale concerning e-Government performance have been determined
with <strong>the</strong> aid <strong>of</strong> Arifoğlu’s study (2004) and several international studies (SIBIS, 2000, UNDPEPA,
2002).The universe <strong>of</strong> <strong>the</strong> study are determined to be <strong>the</strong> employees working for <strong>the</strong> information
processing and/or technical departments <strong>of</strong> <strong>the</strong> 28 public institutions and organizations which provide
services at <strong>the</strong> e-Government main portal in Turkey. Surveys have been conducted in 8 public
institutions and organizations where <strong>the</strong> required permission has been issued, as shown in Table 1.
For this reason, 150 forms have been distributed or sent and 105 usable forms have been collected.
Table 1: Values Concerning <strong>the</strong> Distribution <strong>of</strong> Sample Group
Name <strong>of</strong> Institution N % Number services given
Ministry <strong>of</strong> Interior 26 24.8 8
Ministry <strong>of</strong> Transport 15 14.3 31
Social Security Institution 31 29.5 30
Prime Ministry 9 8.6 4
Ministry <strong>of</strong> National Defense 9 8.6 25
TURKSAT A.Ş: 7 6.7 5
Ministry <strong>of</strong> Industry and Trade 5 4.8 8
Specific and Technical Research Council <strong>of</strong> Turkey 3 2.9 3
629

Kursad Zorlu
Total 105 100 109
3.2 Research Model, Assumptions and Artificial Neural Networks
Study data have been produced by cascade forward back propagation artificial neural network.
Transactions have been conducted by <strong>the</strong> artificial neural network component <strong>of</strong> <strong>the</strong> MATLAB
program. Though <strong>the</strong> artificial neural networks model is used newly in <strong>the</strong> field <strong>of</strong> management, it
gives more accurate results compared to statistical methods used in studying complex and
interlocking processes. The said model consists <strong>of</strong> layers, namely an input layer, a latent layer and an
output layer where interconnected nerves (figure 2) are found (Elmas, 2003).
Input Weights Collection process Activation function Output
X1
X2
Xi
W1j
W2j
Wij
Threshold θ j
Figure 2: An artificial nerve as a transaction component (Elmas, 2007: 31).
The study discusses that a strategic learning system, as a whole, is effective on <strong>the</strong> e-Government
performance (Hs) while organizational structure (Hy) is effective on both <strong>the</strong> learning system and e-
Government. The following assumptions have been developed within this frame:
Hy1: Organizational structure affects individual-level learning positively.
Hy2: Organizational structure affects group-level learning positively.
Hy3: Organizational structure affects organization-level learning positively.
Hy4: Organizational structure affects feed forward learning flow positively.
Hy5: Organizational structure affects feedback learning flow positively.
Hy6: Organizational structure affects e-Government performance positively.
Hs1: Individual-level learning affects e-Government performance positively.
Hs2: Group-level learning affects e-Government performance positively.
Hs3: Organization-level learning affects e-Government performance positively.
Hs4: Feed forward learning flow affects e-Government performance positively.
Hs5: Feedback learning flow affects e-Government performance positively.
IL
GI
OL
FF-L
FB-L
Figure 3: Research model
n
Vi = Σwijxi+θ
i=j
OS
630
f(activation)
e-Perf
(total)
Yi
e-p1
e-p2
e-p3

Kursad Zorlu
Notes: IL- individual level learning, GI- group level learning, OL- organizational-level learning, FF-L- feed
forward-learning, FB-L- feed back learning, OS- organizational structure, e-Perf- e-Goverment Performance, ep1-
management and human resource, e-P2- functionality, e-P3- enterprise ınfrastructure and technology.
3.3 Validity and reliability analysis
A factor analysis has been conducted for <strong>the</strong> validity and reliability <strong>of</strong> <strong>the</strong> survey and Cronbach Alpha
(α) coefficients for each scale have been found out. In factor analysis, 3 variants with a factor value
below 0.40 have been removed from <strong>the</strong> scale and Table 2 shows <strong>the</strong> findings from <strong>the</strong> repeated
factor analysis. Accordingly, those variants for <strong>the</strong> strategic learning system are ga<strong>the</strong>red under 5
factors, namely individual-level learning, group-level learning, organization – level learning, feed
forward learning flow and feedback learning flow, <strong>the</strong> variants for organizational structure are
ga<strong>the</strong>red under one factor, while <strong>the</strong> variants for e-Government are ga<strong>the</strong>red under 3 factors, namely
management and human resources, functionality, institutional substructure and technology.
Table 2: Factor analysis results
Scale Items Factor
loadings
(SLS) Strategic Learning System (α=, 940)
IL (Individual-level Learning (e=,852)
Individuals in <strong>the</strong> organization are proud <strong>of</strong> <strong>the</strong>ir workplace
Individuals in <strong>the</strong> organization are determined to work at <strong>the</strong> workplace
Individuals are aware <strong>of</strong> important issues affecting <strong>the</strong> work and <strong>the</strong>ir duties.
Individuals are able to develop new and various approaches
Individuals can save <strong>the</strong>mselves from traditional thinking manner and can be creative and
innovative
(GL) Group level learning (α=,855)
It is possible to find out effective solutions to disputes by working in groups
Different views and approaches are encouraged in group works
It is possible to review group decisions when referring to new information and
documentation
It is tried to understand <strong>the</strong> views and opinions <strong>of</strong> everybody at meetings
Personnel to distribute jobs to correct persons are available at group-level
(OL) Organization-level learning (α=,886)
Our organization has a good strategy concerning our objectives and our targets
Our organizational culture is creative and innovative
Our organizational structure supports our strategic aspects
Our organization allows us to work effectively and dynamically
Rules and procedures form a basis for us to work efficiently
(FF-L) Feedforward Learning Flow (α=,753)
Individuals contribute to organization strategies
Information obtained from groups are used to develop products, services and processes
Proposals made by <strong>the</strong> groups are adapted by <strong>the</strong> organization
(FB-L) Feedback Learning Flow (α=,663)
Policies and procedures help individual work
Organizational objectives are transmitted to <strong>the</strong> entire organization to ensure that
everybody knows <strong>the</strong>m
Company files, documents and databases provide all <strong>the</strong> information required to do our
works
(OS) Organizational structure (α=,882)
Employees can reach one ano<strong>the</strong>r easily
Acquiring and creating new information is included in our performance criteria
Organizational structure makes new information discovery easier
Organizational structure makes outsourced information transfer easier
Organizational arrangements encourage <strong>the</strong> employees to acquire information regardless
<strong>of</strong> wherever it is
Organizational structure encourages collective acts instead <strong>of</strong> individual ones.
There is a standard reward system for information-sharing
Designs and processes concerning organizational structure make information exchange
easier
631
0.817
0.843
0.697
0.773
0.837
0.834
0.904
0.793
0.788
0.680
0.860
0.892
0.900
0.822
0.664
0.648
0.687
0.718
0.813
0.645
0.553
0.450
0.828
0.857
0.746
0.867
0.746
0.743
0.639

Kursad Zorlu
(e-Perf) E-Government Performance (α=0.942)
(e-P1) Management and human resources (α=,844)
Specialty <strong>of</strong> <strong>the</strong> personnel in <strong>the</strong>ir jobs
The relevant persons’ awareness <strong>of</strong> e-Government portal security and o<strong>the</strong>r strategically
important issues
Sufficiency in number <strong>of</strong> <strong>the</strong> appointed personnel
Satisfaction from and loyalty to <strong>the</strong> work <strong>of</strong> <strong>the</strong> relevant personnel, concerning <strong>the</strong> quality
<strong>of</strong> <strong>the</strong> services given at <strong>the</strong> e-Government portal
Top management’s interesting in <strong>the</strong> e-Government process, as required
Using in-service training and new technologies to facilitate adaptation to e-Government
applications
(e-p²) Functionality (α = ,810)
Increase <strong>of</strong> <strong>the</strong> number <strong>of</strong> services required to be given by your organization at e-
Government portal
Whe<strong>the</strong>r <strong>the</strong> services given by your organization at e-Government portal are included in
<strong>the</strong> system
Whe<strong>the</strong>r all relevant information and documentation are transferred to <strong>the</strong> system
completely and timely
Communication frequency with those public institutions and organizations related to e-sate
and in charge <strong>of</strong> coordination
(e-p3) Institutional substructure are technology (α = ,907)
Technical substructure required for e-Government applications
Permanent are advance level <strong>of</strong> institutional information security policies
Integration <strong>of</strong> institutional information systems
Effective operation <strong>of</strong> <strong>the</strong> organization’s special computer network and inter institutional
network
Speed, quality and availability <strong>of</strong> <strong>the</strong> Internet in your organization
Collection <strong>of</strong> information and documentation related to e-Government at your center,
without loss
Keeping record <strong>of</strong> e-Government transactions properly
4. Study results
4.1 Demographic characteristics
0.592
0.710
0.871
0.528
0.540
0.600
0,796
0,839
0,672
0,485
0,758
0,735
0,731
0,847
0,785
0,687
0,592
55.22% <strong>of</strong> <strong>the</strong> participants in <strong>the</strong> survey are men and 47% are women and 48.6% are 26 to 34 years
old. 87.7% <strong>of</strong> <strong>the</strong> participants have a bachelor and postgraduate degree and 51.4% are engineers
and specialists Terms <strong>of</strong> <strong>of</strong>fice <strong>of</strong> <strong>the</strong> participants concentrate between 1 and 5 years
Table 3: Demographic characteristics
Factor F % Factor F %
Sex Male
Female
Age 18-25
26-34
35-41
42-49
50+
Education Primary and middle school
High school and equivalent
Associate degree
Bachelor degree
Postgraduate degree
58
47
11
51
29
9
5
1
2
10
70
22
55.2
44.8
10,5
48,6
27,6
8,6
4,8
1
1,9
9,5
66,7
21,0
Position in organization Engineer
Technician
Technical specialist
Specialist
Civil Servant
Chief <strong>of</strong> branch
O<strong>the</strong>r
Term <strong>of</strong> <strong>of</strong>fice 1-5 years
6-10 years
11-20 years
21-30 years
30+ years
Total 105 100 Total 105 100
4.2 Testing <strong>the</strong> model with artificial neural nets
For <strong>the</strong> purpose <strong>of</strong> testing <strong>the</strong> study model and <strong>the</strong> assumptions, data obtained from survey
applications have been taught 1
in <strong>the</strong> artificial neural net and <strong>the</strong> final model shown in figure 4 has
occurred. Accordingly, organizational structure affects e-Government performance by 0.60 (60%)
through strategic learning system (SLS) and by 0.32 (32%) directly. In o<strong>the</strong>r words, organizational
1
According to a survey <strong>of</strong> literature used in Artificial Neural Networks (ANNs) "taught" <strong>the</strong> concept can be
generally stated that <strong>the</strong> original methodology.
632
31
6
7
23
11
5
22
48
18
24
13
2
29,5
5,7
6,7
21,9
10,5
4,8
21,2
45,7
17,1
22,9
12,4
1,9

Kursad Zorlu
structure affects e-Government by 92% in total. Also, organizational structure affects individual level
learning (IL) by 0.89, group-level learning by 0.97 and organization-level learning by 0.98 and
positively. Such three effects influence e-Government performance gradually by (IL) 0.31, (GL) 0.99
and (OL) 0.78 respectively and positively. In spite <strong>of</strong> this, influence <strong>of</strong> organizational structure on feed
forward and feedback information flow is found almost zero (0). Similarly, though <strong>the</strong> influence <strong>of</strong>
organizational structure on e-Government performance through feed forward and feedback
information flow is found negative, it is also determined to be negligible.
In addition to such relational and affective findings, <strong>the</strong> averages <strong>of</strong> study variants (1=worst, 5= best)
<strong>of</strong> <strong>the</strong> public institutions and organizations participated in <strong>the</strong> survey are found as follows: individual
level learning 3.2743, group level learning 3.4229, organizational-level learning 2.9124, feed forwardlearning
3.1987, feed-back learning 3.4615, organizational structure 3.0333, e-Government
performance 3.3638, management and human resource 3.3416, functionality 3.3857 and enterprise
infrastructure and technology 3.3857.
OS
Figure 4: The final model <strong>of</strong> <strong>the</strong> research
Average: IL: 3.2743 - GI: 3.4229 - OL: 2.9124 - FF-L: 3.1987 - FB-L: 3.4615 - OS: 3.0333
e-P: 3.3638 (e-p1: 3.3416 - e-P2: 3.3857 - e-P3: 3.3857)
In line with <strong>the</strong> final model <strong>of</strong> <strong>the</strong> study and <strong>the</strong> findings obtained, assumptions Hy4, Hy5, Hs4 and Hs5
are refused, while all <strong>the</strong> o<strong>the</strong>r assumptions are accepted.
5. Discussion
0,89
0.97
IL
GI
0.98 0.78
O
- 0.05
- 0.08
0.02
FF-L
FB-L
0.32
0.32
0.99
- 0.02
e-P
(total)
Organizational structures, learning processes and accordingly e-Government performances <strong>of</strong> <strong>the</strong>
public institutions and organizations which provide services at <strong>the</strong> e-Government main portal in
Turkey are a little above <strong>the</strong> average (3) and may be qualified to be “good”. When looking at <strong>the</strong>
components <strong>of</strong> such an average, it is seen that <strong>the</strong> dimensions <strong>of</strong> “management and human
resources” and “institutional substructure and technology” are quite high, while its “functionality”
dimension is lower. Therefore, it is required to pay attention to its functionality dimension which
determines <strong>the</strong> content <strong>of</strong> serving, for e-Government performance to reach a “very good” (4) level.
However, <strong>the</strong> fact that organization-level learning is under <strong>the</strong> average (2.9124) compared to
individual-level and group-level learning suggests <strong>the</strong> probability that <strong>the</strong>re may be some deficiencies
concerning organizational cultural factors, such as cooperation, team work and confidence.
The method <strong>of</strong> artificial neural net used for testing <strong>the</strong> study model presents nonlinear, relational and
affective results unlike statistical analysis methods. Within this extent, organizational structure affects
individual-level, group-level and organization-level learning positively and seriously and such an effect
influences e-Government performance gradually and positively. However, when looking at <strong>the</strong> severity
<strong>of</strong> <strong>the</strong> effect, individual-level learning is less than <strong>the</strong> o<strong>the</strong>r two-level learning In spite <strong>of</strong> this,
organizational structure does not affect feed forward and feedback information flow and such
633
0,834
0,687
0,927
e-P1
e-P2
e-P3

Kursad Zorlu
ineffectiveness is <strong>the</strong> basis <strong>of</strong> not affecting e-Government performance, as a natural result <strong>of</strong> <strong>the</strong>
gradual model. Besides, though organizational structure affects e-Government performance by 0.32
directly and positively, it is not as great as its effect through strategic learning system (0.60). Ano<strong>the</strong>r
statement <strong>of</strong> such an original result from <strong>the</strong> method <strong>of</strong> artificial neural net is that, organizational
structure is effective on e-Government by itself, but, <strong>the</strong> sufficiency <strong>of</strong> learning levels <strong>of</strong> organizations
streng<strong>the</strong>ns such a structural effect. For this reason, insufficient learning levels may result in failure <strong>of</strong>
organizational structure to influence as expected, even though organizational structure is furnished
with ideal criteria.
It is possible to assert that <strong>the</strong> present study presents complex, interlocked and original results among
<strong>the</strong> variants, that it may contribute largely to <strong>the</strong> literature and similar fur<strong>the</strong>r studies, when <strong>the</strong> subject
and methodology <strong>of</strong> <strong>the</strong> study is taken account.
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636

PhD
Research
Papers
637

638

Exploring Employee Perceptions <strong>of</strong> <strong>the</strong> Relationships
Among Knowledge Sharing Capability, Organisational
Culture and Knowledge Sharing Success: Their
Implications for HRM Practice
Hayati Abdul Jalal, Paul Toulson and David Tweed
Massey University, Palmerston North, New Zealand
H.AbdulJalal@massey.ac.nz
P.Toulson@massey.ac.nz
D.Tweed@massey.ac.nz
Abstract: The empirical literature suggests that human capital knowledge sharing capability (employees’
abilities, motivations and opportunities), influences knowledge sharing within organisations (Andrawina,
Govindaraju, Samadhi and Sudirman 2008; Lin 2007). An organisation’s culture also affects knowledge sharing
by moderating employee activity. Knowledge sharing capability and organisational culture are <strong>the</strong>refore important
factors to consider when developing Human Resource Management (HRM) practices that facilitate successful
knowledge sharing. 270 knowledge workers in four knowledge-based organisations were surveyed about <strong>the</strong>ir
perceptions <strong>of</strong> knowledge sharing capability, organisational culture and knowledge sharing success. Our study
confirms that both knowledge sharing capability and organisational culture are important for knowledge sharing
success, suggesting <strong>the</strong>y play a significant role in <strong>the</strong> design <strong>of</strong> knowledge-driven HRM practices. This has
important implications for HRM delivery in Malaysian and global knowledge based organisations, as human
capital knowledge sharing capability is affected by desirable employees’ local cultural values. Implications for
HRM practices are discussed in <strong>the</strong> paper.
Keywords: HRM, human capital, knowledge sharing capability, Malaysia
1. Introduction
Knowledge and human capital are two concepts that have received a great deal <strong>of</strong> attention from
scholars <strong>of</strong> all disciplines in explaining <strong>the</strong> positive outcomes <strong>of</strong> organisational achievement (e.g.
Cummings and Teng 2003; Minbaeva 2008; Oltra 2005). Human capital is defined as <strong>the</strong> pool <strong>of</strong>
employee talent, with all its potentialities, that brings economic value to organisations. Knowledge is
defined as an individual’s experience and understanding that can be communicated and shared (Allee
1997; Marwick 2001). Therefore, human capital capability to share knowledge has a vital role in
facilitating <strong>the</strong> growth <strong>of</strong> knowledge to increase its value. Knowledge sharing is an activity or
behaviour involving <strong>the</strong> transfer and dissemination <strong>of</strong> knowledge from one person to ano<strong>the</strong>r. This is
regarded as an important process because, if successful, it results in shared intellectual capital (Liao,
Fei and Chen 2007). Researchers suggest that successful knowledge sharing will, to some extent,
depend on <strong>the</strong> capacity <strong>of</strong> employees to organise <strong>the</strong>ir received knowledge resources through a
network <strong>of</strong> relationships (Andrawina et al. 2008; Kim and Lee 2006). This includes activities like
syn<strong>the</strong>sising and utilising <strong>the</strong>ir newly acquired knowledge and making decisions on how <strong>the</strong>y will
communicate knowledge <strong>the</strong>y consider as relevant to o<strong>the</strong>rs. Appropriate human resource
management (HRM) practices can be an important medium that translate knowledge sharing
capability into successful outcomes. However, <strong>the</strong> lack <strong>of</strong> any consensus, on which practices are
“best” is a matter <strong>of</strong> concern among organisations. It <strong>the</strong>refore becomes important to show which
practices are contributing to <strong>the</strong> knowledge sharing improvements that organisations want. Previous
research suggests that <strong>the</strong> importance <strong>of</strong> organisational culture and a medium <strong>of</strong> knowledge
dissemination (through incorporating individuals’ abilities, motivations and opportunities to share
knowledge) be given closer attention in developing HRM practices that aim to facilitate knowledge
sharing (Minbaeva 2008; Wang and Noe 2010). Kelloway and Barling (2000) have suggested a
framework that links individual’s ability, motivation and opportunity to share with knowledge work and
<strong>the</strong> necessary conditions for <strong>the</strong>m to work best. If human attributes (i.e. termed knowledge sharing
capability in this study) and organisational culture are important for HRM practices in <strong>the</strong> achievement
<strong>of</strong> positive knowledge sharing outcomes, <strong>the</strong>n knowledge sharing capability and organisational culture
should be related to knowledge sharing success. Our objective in this study is to explore employees’
perceptions on <strong>the</strong> relationships among knowledge sharing capability, organisational culture and
knowledge sharing success, so that HRM practices can become a success “catalyst” within MSCstatus
IT organisations.
639

2. Literature review
Hayati Abdul Jalal et al.
2.1 Human resource knowledge sharing capability
In this research, we define knowledge sharing capability as <strong>the</strong> extent to which employees possess
abilities, motivation and opportunities to share knowledge (Siemsen, Roth and Balasubramanian
2007). Minbaeva, Makela and Rabbiosi, (2010:5) describe this combination as “conditions <strong>of</strong>
individual actions”. This tripartite schema (<strong>the</strong> combination <strong>of</strong> ability, motivation and opportunity) is a
key mechanism for achieving knowledge flows within an organisation (Adler and Kwon 2002;
Nahapiet and Ghoshal 1998). Developing <strong>the</strong> ability to share knowledge, which is <strong>the</strong> extent to which
both senders and receivers have similarities in knowledge bases (Cummings and Teng 2003),
signifies <strong>the</strong> need for employees to be able to understand and organise <strong>the</strong> knowledge that <strong>the</strong>y
receive through both formal and informal workplace relationships. , This requires <strong>the</strong> development <strong>of</strong>
a shared jargon and language because it facilitates <strong>the</strong> identification, combination, and interpretation
<strong>of</strong> information. These obligations and expectations among employees enhance <strong>the</strong>ir motivation to
voluntarily share <strong>the</strong>ir knowledge and expertise (Nahapiet and Ghoshal 1998). To understand <strong>the</strong>
central features <strong>of</strong> this contention, Widen-Wulff and Ginman (2004) suggest <strong>the</strong> importance <strong>of</strong>
considering <strong>the</strong> ways people form groups in a workplace and develop cooperative behaviour among
<strong>the</strong>mselves. Tyler and Blader’s (2001) have identified cooperative group behaviours as: rule following,
a willingness to help <strong>the</strong> groups, and a desire to continue in <strong>the</strong>ir group memberships. Their research
confirms that group status (pride) significantly affects employees’ motivation to engage in groups
through <strong>the</strong>ir desire to continue group involvement. It is reasonable to suggest that, in this context,
employees’ motivation to share knowledge relates to <strong>the</strong>ir intention to remain with <strong>the</strong> organisation. In
<strong>the</strong> present research, employees’ motivation to share knowledge is linked to <strong>the</strong> degree to which
employees intend to remain in <strong>the</strong> organisation (Hislop 2003). According to Nahapiet and Ghoshal
(1998), both formal and informal relationships create <strong>the</strong> medium <strong>of</strong> dissemination for information and
resources. Previous research suggests that <strong>the</strong> opportunity to share knowledge depends on HRM
practices that allow frequent and intense social exchange, and that support <strong>the</strong> development <strong>of</strong> new
formal and informal workplace relationships (Currie and Kerrin 2003). Thus, <strong>the</strong> extent to which
employees have been provided with sufficient training and job rotation during <strong>the</strong>ir pr<strong>of</strong>essional life
defines <strong>the</strong> opportunity to share knowledge (Currie and Kerrin 2003; Yahya and Goh, 2002).
While <strong>the</strong> importance <strong>of</strong> employees’ capabilities to successfully share knowledge has been
emphasised (Andrawina et al. 2008; Kim and Lee 2006), <strong>the</strong>ir sharing behaviours can also be
affected by an organisational culture that reinforces such knowledge sharing (Kim and Lee 2006;
Nayir and Uzuncarsili 2008). The literature provides evidence that organisational culture is one <strong>of</strong> <strong>the</strong>
most difficult challenges in success stories <strong>of</strong> organisational knowledge management initiatives (Al-
Alawi, Al-Marzooqi and Mohammed 2007; Alavi, Kayworth and Leidner 2005; Nayir and Uzuncarsili
2008; O’Dell and Grayson 1998).
2.2 Organisational culture and knowledge sharing
We define organisational culture as a shared values set that guides employees to communicate and
act explicitly in <strong>the</strong> day-to-day workplace context (Alavi et al. 2005; Keyton 2005). Culture shapes
people’s assumptions about what knowledge is important and distinguishes between which is
organisational and which is individual (De Long and Fahey 2000). Therefore, culture shapes <strong>the</strong>
creation and adoption <strong>of</strong> new knowledge. When people in an organisation see sharing knowledge as
a natural activity and <strong>the</strong>y do not feel <strong>the</strong>y are being forced to do so; this is nurturing a knowledge
sharing culture (Nayir and Uzuncarsili 2008). Organisations that value knowledge as being
importance to <strong>the</strong>ir long term performance should have a deep understanding <strong>of</strong> <strong>the</strong> impact <strong>of</strong> culture
towards knowledge sharing. Because individuals bring <strong>the</strong>ir personal values, attitudes and beliefs to
<strong>the</strong> workplace, <strong>the</strong>ir level <strong>of</strong> sharing capabilities as well as knowledge sharing success may differ.
Although knowledge management systems are acknowledged as significant contributors to <strong>the</strong>
success <strong>of</strong> knowledge leveraging processes, <strong>the</strong> important role that human capital plays in knowledge
sharing should not to be neglected. (Yahya and Goh 2002). Thus, it is an important challenge for
organisations to establish a culture that may develop and enhance <strong>the</strong>ir employees’ capability to
share knowledge (Kim and Lee 2006).
A review <strong>of</strong> <strong>the</strong> literature <strong>of</strong> studies investigating organisational culture, in relation to knowledge
management, identifies several attempts to model <strong>the</strong> organisational culture <strong>of</strong> knowledge
management processes, as well as a number <strong>of</strong> identifiable organisational variables believed to
640

Hayati Abdul Jalal et al.
influence <strong>the</strong> performance <strong>of</strong> knowledge management processes (Al-Alawi et al. 2007; Alavi et al.
2005; Lee and Choi 2003). However, little research has been done that systematically focuses on
identifying <strong>the</strong> prominent cultural values for knowledge-based organisations, particularly within <strong>the</strong>
Malaysian context. Adopting Alavi et al.’s (2005) cultural model with <strong>the</strong> additional value <strong>of</strong> trust in
relation to knowledge sharing, our previous study indicated <strong>the</strong> emergence <strong>of</strong> four cultural values that
mirror common indigenous Malaysian culture, where collectivism, hierarchy, relationship orientation,
face (maintaining a person’s dignity by not humiliating him/her in front <strong>of</strong> o<strong>the</strong>rs), and religious belief
are all important (Abdullah 1996). These values are involvement, formal recognition, trustworthiness
and independence (Abdul Jalal, Toulson and Tweed 2010). Involvement describes <strong>the</strong> ability <strong>of</strong>
organisations to improve successful knowledge sharing by encouraging employees to actively
participate in organisational activities, and to develop a sense <strong>of</strong> “collaboration” amongst <strong>the</strong>m
through responsive management strategies (relates to collectivism). Trustworthiness is defined as
“faith in <strong>the</strong> trustworthy intentions <strong>of</strong> o<strong>the</strong>rs and confidence in <strong>the</strong> ability <strong>of</strong> o<strong>the</strong>rs” (Cook and Wall
1980:40) (relates to relationship orientation and religious belief). Formal recognition explains <strong>the</strong>
importance <strong>of</strong> well developed procedures as a means <strong>of</strong> receiving fair treatment from management
and recognition as supportive employees for successful knowledge sharing (relates to hierarchy and
relationship orientation). Independence describes employees’ concerns with openness, nonconformity
and risk taking (if decisions fail) (relates to hierarchy and face).
The present study <strong>the</strong>n extends our previous research by integrating <strong>the</strong> four values with knowledge
sharing capability variables to fur<strong>the</strong>r explore <strong>the</strong>ir relationships with knowledge sharing success. In
this study, we define knowledge sharing success as <strong>the</strong> extent to which recipients obtain ownership
<strong>of</strong>, commitment to, and satisfaction with shared knowledge (Cummings and Teng 2003). Based on
our previous findings and <strong>the</strong> literature review, our previous conceptual framework was modified. The
new framework is presented in Figure 1.
Knowledge sharing
capability
• Ability
• Motivation
• Opportunity
Organisational culture
• Involvement
• Formal recognition
• Trustworthiness
• Independence
Knowledge
sharing success
Figure 1: Knowledge sharing capability, organisational culture and knowledge sharing success
3. Methodology
3.1 Sample and research process
As this is a continuation <strong>of</strong> our previous study (Abdul Jalal et al. 2010), where employees identified as
“knowledge workers” <strong>of</strong> four Malaysian-owned MSC-status Information technology (IT) companies are
also <strong>the</strong> population <strong>of</strong> interest for <strong>the</strong> present research. MSC-status is awarded to both local and
foreign companies that develop or intensively use multimedia technologies in enhancing <strong>the</strong>ir
products and services (MDeC 2009). The criteria for <strong>the</strong> sample <strong>of</strong> <strong>the</strong> study are: i) <strong>the</strong> respondents
for our current research must be Malaysian nationality; ii) have worked with <strong>the</strong> company for at least a
year; and iii) be involved in creating new knowledge or developing innovations. This sample is <strong>the</strong>
same as was used for determining organisational cultural values for successful knowledge sharing
(Abdul Jalal et al. 2010). Out <strong>of</strong> <strong>the</strong> 500 respondents who were selected using random number tables,
641

Hayati Abdul Jalal et al.
270 completed surveys that were considered usable (a 54% response rate). Pairwise deletion was
used to deal with missing cases, that is, whilst missing cases were omitted, cases with valid values for
o<strong>the</strong>r variables were included in <strong>the</strong> statistical analyses.
3.2 Data analysis
In our previous study, each section <strong>of</strong> instrument was subjected to factor analysis to determine <strong>the</strong>
underlying <strong>the</strong>me for organisational culture and knowledge sharing success variables. This was due
to <strong>the</strong> resulting varimax rotated component that was not consistent with previous studies that utilised
similar items for measuring <strong>the</strong> constructs proposed for <strong>the</strong> study. While four new cultural value labels
were reported, <strong>the</strong> varimax rotated component matrix for knowledge sharing success failed to
converge in 25 iterations because only one component was extracted (Abdul Jalal et al. 2010).
Therefore, only one component <strong>of</strong> knowledge sharing success was used for fur<strong>the</strong>r investigation.
The same technique was employed for knowledge sharing capability variables in <strong>the</strong> present study.
Knowledge sharing capability variables were operationalised using a combination set <strong>of</strong> measures
from Cummings and Teng (2003), Siemsen et al. (2007) and Jehn (1995). (Details <strong>of</strong> <strong>the</strong>
questionnaire can be obtained from <strong>the</strong> principal author).
4. Results
The 9 items <strong>of</strong> knowledge sharing capability were analysed using principle components approach and
varimax rotation used to increase <strong>the</strong> interpretability <strong>of</strong> <strong>the</strong> factor solution (Hair, Black, Babin and
Anderson 2006). The suitability <strong>of</strong> <strong>the</strong> data for factor analysis was also assessed following <strong>the</strong>
guidelines recommended by Pett, Lackey and Sullivan (2003). Bartlett’s Test <strong>of</strong> Sphericity reached
statistical significance (698.931, ρ = 0.000) and confirmed <strong>the</strong> multivariate normality <strong>of</strong> <strong>the</strong> data. The
KMO measure <strong>of</strong> sampling adequacy was 0.827, which was acceptable and accounted for 55.75% <strong>of</strong>
total variance. All MSA values for individual items exceeded <strong>the</strong> recommended value <strong>of</strong> 0.70
supporting <strong>the</strong> factorability <strong>of</strong> <strong>the</strong> correlation matrix. Therefore, it was decided to retain only two
components for fur<strong>the</strong>r investigation. Component 1 (Table 1), considered ‘Competency’, describes
those who are concerned with performing well in executing certain tasks, and are committed and
determined to do so, indicating <strong>the</strong>ir ability and motivation characteristics. When reviewing items
comprising Factor 2, it was clear that this factor incorporated all questions regarding ‘Opportunity’ to
share knowledge (see Table 1). The value <strong>of</strong> <strong>the</strong> alphas indicates that each <strong>of</strong> <strong>the</strong> scales possessed a
moderate to high level <strong>of</strong> internal consistency. The overall alpha for <strong>the</strong> knowledge sharing capability
measures was found to be 0.782.
Table 1: Rotated factor structure matrix for knowledge sharing capability
Cronbach’s alpha, α =
Component
1
2
0.805 0.665
Q42 If employees have <strong>the</strong>ir own way, <strong>the</strong>y will continue working .829
Q40 Employees thought seriously about leaving .742
Q35 Employees have knowledge base necessary to understand .739
Q41 Sender has knowledge base necessary to understand .706
Q36 Differences in basic work knowledge make discussion difficult .679
Q38 Employees do not expect to stay longer .502
Q39 Employees have little training & job rotation opportunity .854
Q37 Additional training & job rotation are limited .812
Q34 Employees have sufficient training & job rotation opportunity .565
4.1 Relationship testing
Regression analysis, without implying causality, was conducted for exploratory purposes in describing
<strong>the</strong> association between variables (Meyers, Gamst and Guarino 2006). A significance level <strong>of</strong> 0.05
was used in all regression analyses.
Knowledge sharing capability (Table 2) was positively and significantly associated with knowledge
sharing success, indicating that when employees have <strong>the</strong> capability to share knowledge, <strong>the</strong> greater
knowledge sharing success will be.
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Hayati Abdul Jalal et al.
Table 2: Results <strong>of</strong> regression analyses <strong>of</strong> knowledge sharing success on knowledge sharing
capability
Variables β Std error Std β t Ρ
Competency 0.565 0.052 0.556 10.870 0.000
Opportunity 0.166 0.052 0.163 3.188 0.002
R 2 = 0.336; F = 64.163
Employees’ competency was positively and significantly associated with involvement and formal
recognition. Opportunity, that describes <strong>the</strong> extent to which employees use interaction opportunities
provided by <strong>the</strong> organisation in order to develop a network <strong>of</strong> ties is significantly associated with <strong>the</strong>
cultural values <strong>of</strong> involvement, trustworthiness and independence (see Table 3).
Table 3: Regression <strong>of</strong> knowledge sharing capability on organisational culture variables
Competency Opportunity
Variables β Std Std. β t ρ β Std Std. β t ρ
error
error
Involvement 0.518 0.05 0.520 10.440 0.000 0.291 0.057 0.292 5.151 0.000
Trustworthines
s
0.044 0.05 0.044 0.877 ns -0.177 0.057 -0.177 -3.121 0.002
Formal
recognition
0.279 0.05 0.279 5.609 0.000 0.042 0.057 0.042 0.736 ns
Independence -0.012 0.05 -0.012 -0.251 ns 0.195 0.057 0.195 3.443 0.001
R 2 = 0.351; F = 35.445 R 2 = 0.157; F = 12.163
The results (Table 4) showed that all organisational culture values except independence are
significantly associated with knowledge sharing success. These results suggest that <strong>the</strong> more
acceptable and desirable <strong>the</strong> organisational culture is, <strong>the</strong> more successful knowledge sharing will be.
Table 4: Regression <strong>of</strong> knowledge sharing success on organisational culture variables
Variables β Std error Std. β t ρ
Involvement 0.479 0.048 0.473 9.972 0.000
Trustworthiness 0.187 0.048 0.183 3.866 0.000
Formal recognition 0.432 0.048 0.425 8.971 0.000
Independence -0.015 0.048 -0.015 -0.320 ns
R 2 = 0.440; F = 48.991
5. Discussion and conclusions
The results <strong>of</strong> this survey <strong>of</strong> Malaysian knowledge workers led to modifications <strong>of</strong> <strong>the</strong> proposed
conceptual framework. Figure 2 shows <strong>the</strong> resultant framework.
This paper addresses <strong>the</strong> relationships between knowledge sharing capability, organisational culture
and knowledge sharing success. We found overall support for <strong>the</strong> argument that an employee’s
capability to share and a “knowledge-friendly” culture facilitates knowledge sharing success. This
indicates a significant role for both factors in <strong>the</strong> design <strong>of</strong> HRM practices, affirming Minbaeva’s
(2008) and Wang and Noe’s (2010) suggestions that <strong>the</strong>se should be integrated into HRM practices
that aim to facilitate employees’ knowledge sharing. This finding is important in helping HRM practices
become robust facilitation tools for knowledge sharing success. This research highlights <strong>the</strong>
importance <strong>of</strong> how knowledge management practice must consider <strong>the</strong> critical role that HRM plays in
nourishing <strong>the</strong> culture <strong>of</strong> sharing and developing employee capability. Moreover, and perhaps <strong>the</strong>
most important finding <strong>of</strong> this study, is that both aspects <strong>of</strong> knowledge sharing capability (competency
and opportunity) need to be present in order to optimally facilitate employees’ knowledge sharing
success. The mixed relationships between organisational culture and knowledge sharing capability
indicate that fostering <strong>the</strong> right cultural values (depending on <strong>the</strong> specific situation) may increase <strong>the</strong>
level <strong>of</strong> employees’ knowledge sharing success. Overall, <strong>the</strong> results <strong>of</strong> our study empirically suggest
that investment in employees’ capabilities through culturally translated HRM practices contribute to
successful knowledge sharing within organisation. Specifically, this research highlights a significant
role for HRM in <strong>the</strong> development and enhancement <strong>of</strong> employees’ capabilities through <strong>the</strong> creation <strong>of</strong>
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Hayati Abdul Jalal et al.
conditions for successful knowledge sharing within organisations. These findings <strong>the</strong>n, provide
support for <strong>the</strong> “employee” case for perceived favourable organisational culture in knowledge-based
organisations, which is an integral part <strong>of</strong> <strong>the</strong> “business” case for successful knowledge sharing.
Thus, <strong>the</strong> findings could be used to assist stakeholders and management in <strong>the</strong> design <strong>of</strong> HRM
practices that not only advance employees’ know-how, but create successful knowledge sharing, a
valued workforce and increase <strong>the</strong> return <strong>of</strong> investment from such knowledge management initiatives.
Knowledge sharing capability
• Competence
• Opportunity
Organisational culture
• Involvement
• Trustworthiness
• Formal recognition
• Independence
Knowledge
sharing success
Figure 2: The resultant framework
The implication <strong>of</strong> our results is that managers can improve <strong>the</strong> level <strong>of</strong> knowledge sharing success
by ensuring that <strong>the</strong> designs <strong>of</strong> HRM practices are customised to support <strong>the</strong> increase <strong>of</strong> employees’
capabilities and to nourish a “knowledge-friendly” culture within organisation. Differentiating
organisational investment in governance mechanisms, depending on which type <strong>of</strong> employees’
knowledge sharing capability is important for specific situations is also recommended. For example,
<strong>the</strong> value <strong>of</strong> involvement is beneficial in situations in which both employees’ competency and
opportunity are crucial, but <strong>of</strong>ten a combination <strong>of</strong> values may be necessary. The combination <strong>of</strong>
involvement and formal recognition seems particularly beneficial in situations in which significant
employee competence is evident. Involvement, independence and trustworthiness, on <strong>the</strong> o<strong>the</strong>r hand,
may be beneficial for promoting <strong>the</strong> formation new workplace relationships. While identifying “new”
HRM practices is not suggested, this research indicates that organisations should revamp <strong>the</strong>ir
existing practices by matching organisational knowledge sharing goals and employee preferred
values within <strong>the</strong>ir context. This can be achieved by emphasising <strong>the</strong> “must have” values that support
knowledge sharing capability, thus assisting organisations to increase <strong>the</strong>ir knowledge sharing
success.
One possible approach in this direction is to systematically re-orient/re-design <strong>the</strong> approach <strong>of</strong>
potential knowledge-driven HRM systems. Emphasis should be given to integrating <strong>the</strong> local
workforces’ acceptable cultural values into <strong>the</strong> HRM practices design. It is important to acknowledge
that employees’ involvement in organisational activities, whereby <strong>the</strong>ir contributions are recognised
within a trustworthy environment, will increase organisational knowledge sharing success. For
instance, knowledge sharing behaviours have implications for advertising and predictive evaluation
criteria in recruitment and selection practices that are part <strong>of</strong> <strong>the</strong>se HRM processes. Also, <strong>the</strong>
implication <strong>of</strong> <strong>the</strong>se findings can directly be seen in training and development. In developing <strong>the</strong>
training programme, <strong>the</strong> approach should be more trainee-centred to allow more employees’
participation in promoting <strong>the</strong> cross-pollination <strong>of</strong> ideas among <strong>the</strong>m. Encouraging <strong>the</strong>m to engage in
open discussion or debate during <strong>the</strong> training sessions will fur<strong>the</strong>r develop <strong>the</strong>ir communication skills
and competency. Fur<strong>the</strong>rmore, involvement can facilitate <strong>the</strong> development <strong>of</strong> new workplace
relationships and help to minimise individuals’ differences, leading to <strong>the</strong> promotion <strong>of</strong> trust throughout
<strong>the</strong> organisation. Rewarding employees’ attendance and active participation in <strong>the</strong> training sessions
with credits or points leading to job promotion or upgrading through yearly performance appraisal,
indicates an improvement <strong>of</strong> individuals’ competence level and links training, competence and
collaboration in a meaningful way. Reward and appraisal systems have also been noted by o<strong>the</strong>r
researchers in knowledge-based organisations as significant predictors <strong>of</strong> employees’ knowledge
sharing behaviours (Currie and Kerrin 2003; Robertson and Hammersley 2000). Additionally,
nourishing employees’ acceptable cultural values may improve and maintain organisational retention
rates as suggested by Roberston and Hammersley (2000). They fur<strong>the</strong>r suggest that organisations
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Hayati Abdul Jalal et al.
that are capable <strong>of</strong> creating a unique working environment may increase employees’ willingness and
ability to share knowledge and skills.
Future research should collect data from a larger sample size in o<strong>the</strong>r business sectors and from both
private and public employees <strong>of</strong> o<strong>the</strong>r cultural settings. A comparative study should also be
undertaken to see if differences <strong>of</strong> perceptions <strong>of</strong> knowledge sharing capability, organisational culture
and knowledge sharing success exist between private and public employees in both Malaysia and
international contexts. Finally, examining o<strong>the</strong>r factors <strong>of</strong> knowledge sharing such as <strong>the</strong> relationship
between <strong>the</strong> parties involved and <strong>the</strong> characteristics <strong>of</strong> senders as well as <strong>the</strong> nature <strong>of</strong> knowledge
shared can fur<strong>the</strong>r streng<strong>the</strong>n <strong>the</strong> present findings. While this study makes important contributions to
our understanding <strong>of</strong> <strong>the</strong> relationships between employees’ perceptions on knowledge sharing
capability, organisational culture and knowledge sharing success in MSC-status IT organisations,
clearly, additional research is needed to fur<strong>the</strong>r develop <strong>the</strong> field <strong>of</strong> both human resource
management and knowledge management.
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646

Knowledge Boundaries <strong>of</strong> <strong>the</strong> Firm in Russian Heavy
Engineering Companies
Evgeny Blagov
Graduate School <strong>of</strong> Management, Saint Petersburg University, Saint
Petersburg, Russian Federation
evgeniy.blagov@gmail.com.
Abstract: The purpose <strong>of</strong> this research is to develop an approach to analysis <strong>of</strong> <strong>the</strong> firms’ choice <strong>of</strong> technological
knowledge resources (TKR) renovation sources resources development. The <strong>the</strong>oretical foundations <strong>of</strong> research
are <strong>the</strong> transaction cost and <strong>the</strong> knowledge-based <strong>the</strong>ories <strong>of</strong> <strong>the</strong> firm. The problem addressed by <strong>the</strong> research is
what are <strong>the</strong> criteria <strong>of</strong> <strong>the</strong> firm choosing between different TKR (under which in this study technological knowhow
is meant) renovation sources when <strong>the</strong> TKR used for developing <strong>the</strong> firm’s products seems obsolete, thus
creating a “knowledge gap” (or “knowledge absence”). Continuing <strong>the</strong> “make-buy-or-ally” stream <strong>of</strong> literature,
such variants <strong>of</strong> TKR renovation sources are considered as creating necessary TKR by own strength, acquiring
<strong>the</strong> external necessary TKR provider, creating long-term alliance relationship with <strong>the</strong> external necessary
knowledge provider and buying necessary TKR from an external provider on <strong>the</strong> open market. The criteria <strong>of</strong>
choice between <strong>the</strong>se TKR renovation sources are hypo<strong>the</strong>sized to reflect <strong>the</strong> relative change <strong>of</strong> level <strong>of</strong> several
factors (mainly reflecting <strong>the</strong> specificity <strong>of</strong> TKR as an asset and uncertainty related to TKR renovation
transactions) between <strong>the</strong> necessary TKR and o<strong>the</strong>r TKR <strong>of</strong> comparable scale used by <strong>the</strong> firm or in relation to
<strong>the</strong> average level <strong>the</strong> firm encounters in its activity. The hypo<strong>the</strong>ses about <strong>the</strong>se choice criteria are tested in a
quantitative study using ordered probit regressions with <strong>the</strong> influencing factors’ importance for <strong>the</strong> firm in a TKR
renovation transaction as independent variables and four TKR renovation source variants as dependent
variables. The questionnaire constructed for <strong>the</strong> quantitative study has been sent via e-mail to sample <strong>of</strong> 300
Russian companies <strong>of</strong> <strong>the</strong> industry classification “Heavy, energetic and transport engineering” randomly selected
by region with <strong>the</strong> response rate <strong>of</strong> 10%, giving <strong>the</strong> resulting sample <strong>of</strong> 30 companies. The empirical research
results show that on <strong>the</strong> 0.05 significance level <strong>the</strong> factors influencing <strong>the</strong> choice <strong>of</strong> technological knowledge
renovation sources are <strong>the</strong> uniqueness <strong>of</strong> <strong>the</strong> necessary TKR in comparison with <strong>the</strong> respective market,
necessity <strong>of</strong> support and fur<strong>the</strong>r development <strong>of</strong> <strong>the</strong> necessary TKR, congruence between <strong>the</strong> results <strong>of</strong> <strong>the</strong> focal
firm and its (potential) counterparty and focal firm’s ability to control <strong>the</strong> actions <strong>of</strong> <strong>the</strong> counterparty. The revealed
criteria <strong>of</strong> TKR renovation sources choice is used for suggesting an algorithm <strong>of</strong> such choice that could be
implemented in business practice.
Keywords: technological knowledge resources renovation, knowledge boundaries <strong>of</strong> <strong>the</strong> firm, transaction cost
<strong>the</strong>ory <strong>of</strong> <strong>the</strong> firm, knowledge-based <strong>the</strong>ory <strong>of</strong> <strong>the</strong> firm
1. Purpose <strong>of</strong> <strong>the</strong> research
The purpose <strong>of</strong> this research is to develop an approach to analysis <strong>of</strong> <strong>the</strong> firms’ choice <strong>of</strong>
technological knowledge resources (TKR) renovation sources resources development. Thus, <strong>the</strong>
research objectives are to suggest main variants <strong>of</strong> TKR renovation sources and <strong>the</strong> main factors
possibly underlying <strong>the</strong> criteria <strong>of</strong> choice between <strong>the</strong>se sources, to suggest hypo<strong>the</strong>ses about such
criteria, to test <strong>the</strong> hypo<strong>the</strong>ses in an empirical setting and to develop, if possible, an algorithm <strong>of</strong> <strong>the</strong>
TKR renovation sources choice that could be implemented in business practice on <strong>the</strong> basis <strong>of</strong> <strong>the</strong>
hypo<strong>the</strong>ses testing results.
2. Literature review
As <strong>the</strong> main objective <strong>of</strong> <strong>the</strong> firm’s activity is by definition <strong>the</strong> maximization <strong>of</strong> pr<strong>of</strong>it which consists <strong>of</strong>
maximization <strong>of</strong> revenue and minimization <strong>of</strong> costs. Thus, such one <strong>of</strong> <strong>the</strong> most important aspects <strong>of</strong>
<strong>the</strong> firm’s strategy as its “boundary”, or <strong>the</strong> bunch <strong>of</strong> criteria used by <strong>the</strong> firm’s managers to choose
between using internal or external resources in <strong>the</strong> firm’s activity (Alvarez, Barney. 2004), is also a
question <strong>of</strong> founding best criteria <strong>of</strong> revenue maximization and costs minimization.
The problem <strong>of</strong> <strong>the</strong> boundary <strong>of</strong> <strong>the</strong> firm has been introduced in contemporary economic and
managerial sciences as a separate research area in <strong>the</strong> transaction cost <strong>the</strong>ory <strong>of</strong> <strong>the</strong> firm originating
from R. Coase’s “Theory <strong>of</strong> <strong>the</strong> Firm” (Coase. 1937); thus, in a bigger part <strong>of</strong> studies <strong>of</strong> <strong>the</strong> boundary
<strong>of</strong> <strong>the</strong> firm more accent is made on cost minimization than revenue maximization criteria.
Most <strong>of</strong> <strong>the</strong> empirical studies <strong>of</strong> <strong>the</strong> boundary <strong>of</strong> <strong>the</strong> firm within <strong>the</strong> transaction cost <strong>the</strong>ory are based
on <strong>the</strong> ideas developed by O. Williamson in (Williamson. 1975). Williamson suggested <strong>the</strong> main
criteria <strong>of</strong> <strong>the</strong> firm boundary decisions to be asset specificity, transaction uncertainty and transaction
frequency. On <strong>the</strong> basis <strong>of</strong> <strong>the</strong>se criteria, Williamson considers <strong>the</strong> following boundary <strong>of</strong> <strong>the</strong> firm
647

Evgeny Blagov
decision variants: “market governance” for <strong>the</strong> non-specific transactions both <strong>of</strong> accidental and
regularly occurring nature, “trilateral governance” for transactions <strong>of</strong> accidental nature but connected
with more specialized (“mixed” or “highly specialized”) investments, “bilateral governance” for regular
transactions with mixed or highly specialized investments, and, finally, “shared governance” for
regularly occurring transactions with highly specialized (“idiosyncratic”) investments.
Respectively, according to this model, <strong>the</strong> increase in asset specificity, transaction frequency and
transaction uncertainty promote <strong>the</strong> shift from market to shared governance <strong>of</strong> <strong>the</strong> transaction.
Several specific traits <strong>of</strong> knowledge resources in comparison to o<strong>the</strong>r resources used by firms,
especially non-exclusivity and non-diminishing marginal revenue (Teece. 2000; Roos, Pike &
Fernström) enable <strong>the</strong> scholars <strong>of</strong> <strong>the</strong> rapidly emerging “knowledge-based view <strong>of</strong> <strong>the</strong> firm” (Kogut,
Zander. 1992; Grant. 1996) to suppose that firm boundary decisions concerning choice between
internal or external sources <strong>of</strong> knowledge resources must be made on criteria <strong>of</strong> not cost minimization
but created value maximization. However, <strong>the</strong> criteria suggested in this branch <strong>of</strong> literature are also
most <strong>of</strong>ten based on factors <strong>of</strong> asset specificity and transaction uncertainty.
Studies <strong>of</strong> <strong>the</strong> boundary <strong>of</strong> <strong>the</strong> firm problem within specific industrial contexts are a fairly significant
part <strong>of</strong> <strong>the</strong> empirical literature on this topic whichever <strong>the</strong>oretical perspective it is based on (see
reviews <strong>of</strong> empirical studies <strong>of</strong> boundary <strong>of</strong> <strong>the</strong> firm in (Baker, Hubbard. 2003; Geyskens, Steenkamp
& Kumar. 2006). However, this literature is lacking studies <strong>of</strong> heavy engineering as a specific industrylevel
focus <strong>of</strong> attention, creating a significant knowledge gap to be filled.
3. Research design and methodology
Hypo<strong>the</strong>ses
The formulations <strong>of</strong> <strong>the</strong> dependent variables <strong>of</strong> <strong>the</strong> research are in general based on <strong>the</strong>
understanding <strong>of</strong> <strong>the</strong> firm boundary decision variants suggested in (Williamson. 1975), i.e., a
continuum from market to shared transaction governance forms.
As in this research <strong>the</strong> assets being transaction objects are <strong>the</strong> technological knowledge resources
(TKR), such forms <strong>of</strong> governance <strong>of</strong> TKR renovation transactions are suggested as creating
necessary TKR by own strength, focal firm’s acquisition <strong>of</strong> <strong>the</strong> necessary TKR provider, long-term
alliance relationship creation with <strong>the</strong> necessary knowledge provider and non-recurring purchase <strong>of</strong>
necessary TKR from an external provider on <strong>the</strong> open market.
The comparison <strong>of</strong> approaches to firm boundary problem analysis in transaction cost <strong>the</strong>ory as <strong>the</strong>
mainstream <strong>of</strong> firm boundary studies and in knowledge-based <strong>the</strong>ory <strong>of</strong> <strong>the</strong> firm as a rapidly
developing branch <strong>of</strong> science analyzing among all <strong>the</strong> specificity <strong>of</strong> <strong>the</strong> firm boundary decisions
criteria for knowledge resources as objects <strong>of</strong> boundary choice transactions leads to thought that
criteria <strong>of</strong> TKR renovation sources choice used by firms are supposedly oriented both on cost
minimization and revenue maximization and are supposedly based on factors related to asset (i.e.,
TKR in this case) specificity and transaction uncertainty.
The first <strong>of</strong> such factors is suggested to be <strong>the</strong> importance <strong>of</strong> <strong>the</strong> necessary TKR for <strong>the</strong> firm’s result
as it can lay in <strong>the</strong> foundation <strong>of</strong> comparative bargaining power advantages between <strong>the</strong> focal firm
and its potential counterparties (Carayannapoulos, Auster. 2010).
As <strong>the</strong> necessary resource’s importance for <strong>the</strong> firm’s result can be suggested to increase <strong>the</strong> risk <strong>of</strong>
<strong>the</strong> firm losing control over this resource (Hillman, Wi<strong>the</strong>rs & Collins, 2009), it can be supposed that
<strong>the</strong> bigger this importance for <strong>the</strong> necessary TKR, <strong>the</strong> more <strong>the</strong> firm would be inclined to choose <strong>the</strong>
TKR renovation sources that are closer to <strong>the</strong> “shared governance” edge <strong>of</strong> <strong>the</strong> Williamson’s
continuum.
Consequently, such a hypo<strong>the</strong>sis can be suggested about <strong>the</strong> TKR renovation sources choice
criterion based on this factor:
Hypo<strong>the</strong>sis 1:
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Increase in necessary TKR’s importance for <strong>the</strong> firm’s result would lead to <strong>the</strong> increase in probability
<strong>of</strong> <strong>the</strong> firm’s inclination to create necessary TKR by own strength, to acquire <strong>the</strong> necessary TKR
provider and to create a long-term alliance relationship with <strong>the</strong> necessary TKR provider (in case <strong>of</strong>
increase in <strong>the</strong> ability to control <strong>the</strong> potential counterparty’s actions) and, in turn, to decrease in
probability <strong>of</strong> <strong>the</strong> firm’s inclination to buy necessary TKR on <strong>the</strong> open market.
It is evident that <strong>the</strong> potential counterparties would never have an interest to get involved in a
transaction if <strong>the</strong> object <strong>of</strong> <strong>the</strong> transaction (in this research, <strong>the</strong> TKR) has zero importance for <strong>the</strong>
result <strong>of</strong> each <strong>of</strong> <strong>the</strong>m. Consequently, it can be suggested that <strong>the</strong> comparative bargaining power <strong>of</strong>
<strong>the</strong> focal firm and a (potential) counterparty depends on <strong>the</strong> comparative degree <strong>of</strong> <strong>the</strong> necessary
TKR’s importance for <strong>the</strong> results <strong>of</strong> each <strong>of</strong> <strong>the</strong>m, or <strong>the</strong> “results congruence” between <strong>the</strong> transaction
parties (Bushman, Penno & Indjejikian. 2000; Datar, 2000). In (Bushman, Penno & Indjejikian. 2000)
<strong>the</strong> congruence between <strong>the</strong> results <strong>of</strong> <strong>the</strong> focal firm as a principal and a (potential) counterparty as
an agent is divided into such two parts as <strong>the</strong> congruence being a result <strong>of</strong> <strong>the</strong> principal’s intentional
actions and <strong>the</strong> congruence being not; an abstract formulation <strong>of</strong> <strong>the</strong> former is more or less <strong>the</strong> focal
firm’s ability to control <strong>the</strong> actions <strong>of</strong> <strong>the</strong> potential counterparty. When looking on <strong>the</strong> congruence
factor from <strong>the</strong> perspective <strong>of</strong> analyzing <strong>the</strong> transaction uncertainty, it can be suggested that its
increase lowers <strong>the</strong> potential uncertainty in <strong>the</strong> counterparties’ relationships and thus increases <strong>the</strong>
firm’s probability to choose <strong>the</strong> TKR renovation sources closer to <strong>the</strong> “market governance” edge <strong>of</strong>
Williamson’s continuum.
Thus, such a hypo<strong>the</strong>sis can be formulated:
Hypo<strong>the</strong>sis 2:
Increase in <strong>the</strong> congruence <strong>of</strong> results <strong>of</strong> <strong>the</strong> focal firm and a potential counterparty would lead to <strong>the</strong>
increase in probability <strong>of</strong> <strong>the</strong> firm’s inclination to buy necessary TKR on <strong>the</strong> open market and to create
a long-term alliance relationship with <strong>the</strong> necessary TKR provider, and, in turn, to <strong>the</strong> decrease in
probability <strong>of</strong> <strong>the</strong> firm’s inclination to create necessary TKR by own strength and to acquire <strong>the</strong>
necessary TKR provider.
However, most <strong>of</strong> <strong>the</strong> empirical firm boundary studies based on Williamson’s framework (see a
comparative analysis <strong>of</strong> such studies in (Geyskens, Steenkamp & Kumar. 2006)) show that <strong>the</strong> factor
<strong>of</strong> <strong>the</strong> framework most significantly influencing <strong>the</strong> boundary <strong>of</strong> <strong>the</strong> firm decisions is not <strong>the</strong>
transaction uncertainty but <strong>the</strong> asset specificity.
The formulation “asset specificity” is too vague to be used in an empirical study as is, so in most <strong>of</strong>
<strong>the</strong> studies proxies for it are created. From such proxies developed in <strong>the</strong> literature such seem to be
relevant for this study as uniqueness <strong>of</strong> <strong>the</strong> firm’s TKR as a whole (Desyllas, Hughes. 2008;
Carayannopoulos, Auster. 2010), <strong>of</strong> <strong>the</strong> TKR involved in a focal transaction (Monteverde, Teece.
1982; Pisano. 1990), and <strong>of</strong> <strong>the</strong> firm’s products in comparison with <strong>the</strong> respective market and industry
(Kogut, Zander, 1992).
These proxies are supposed to have a positive correlation with <strong>the</strong> asset specificity, i.e., <strong>the</strong> increase
in <strong>the</strong>se factors can be explained as <strong>the</strong> increase in specificity <strong>of</strong> assets involved in a transaction.
Thus it can be suggested that <strong>the</strong> increase in <strong>the</strong> uniqueness factors would lead to <strong>the</strong> increase in
firm’s probability to choose <strong>the</strong> TKR renovation sources closer to <strong>the</strong> “shared governance” edge <strong>of</strong> <strong>the</strong>
Williamson’s continuum.
Thus, <strong>the</strong> hypo<strong>the</strong>ses concerning <strong>the</strong> criteria based on <strong>the</strong>se factors have such forms:
Hypo<strong>the</strong>sis 3:
Increase in <strong>the</strong> uniqueness <strong>of</strong> <strong>the</strong> necessary TKR in comparison with <strong>the</strong> respective market and
industry would lead to <strong>the</strong> increase in probability <strong>of</strong> <strong>the</strong> firm’s inclination to create necessary TKR by
own strength, to acquire <strong>the</strong> necessary TKR provider and to create a long-term alliance relationship
with <strong>the</strong> necessary TKR provider (in case <strong>of</strong> increase in <strong>the</strong> ability to control <strong>the</strong> potential
counterparty’s actions) and, in turn, to decrease <strong>of</strong> <strong>the</strong> probability <strong>of</strong> <strong>the</strong> firm’s inclination to buy
necessary TKR on <strong>the</strong> open market.
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Hypo<strong>the</strong>sis 4:
Evgeny Blagov
Increase in <strong>the</strong> uniqueness <strong>of</strong> <strong>the</strong> firm’s products in comparison with <strong>the</strong> respective market and
industry would lead to <strong>the</strong> increase in probability <strong>of</strong> <strong>the</strong> firm’s inclination to create necessary TKR by
own strength, to acquire <strong>the</strong> necessary TKR provider and to create a long-term alliance relationship
with <strong>the</strong> necessary TKR provider (in case <strong>of</strong> increase in <strong>the</strong> ability to control <strong>the</strong> potential
counterparty’s actions) and, in turn, to decrease <strong>of</strong> <strong>the</strong> probability <strong>of</strong> <strong>the</strong> firm’s inclination to buy
necessary TKR on <strong>the</strong> open market.
Hypo<strong>the</strong>sis 5:
Increase in <strong>the</strong> uniqueness <strong>of</strong> <strong>the</strong> firm’s TKR as a whole in comparison with <strong>the</strong> respective market and
industry would lead to <strong>the</strong> increase in probability <strong>of</strong> <strong>the</strong> firm’s inclination to create necessary TKR by
own strength, to acquire <strong>the</strong> necessary TKR provider and to create a long-term alliance relationship
with <strong>the</strong> necessary TKR provider (in case <strong>of</strong> increase in <strong>the</strong> ability to control <strong>the</strong> potential
counterparty’s actions) and, in turn, to decrease <strong>of</strong> <strong>the</strong> probability <strong>of</strong> <strong>the</strong> firm’s inclination to buy
necessary TKR on <strong>the</strong> open market.
In <strong>the</strong> value creation logics analysis in (Thompson. 1967; Roos, Pike & Fernström. 2005) <strong>the</strong>
uniqueness <strong>of</strong> <strong>the</strong> firm's production in relation to <strong>the</strong> respective market and industry is connected to
<strong>the</strong> variable <strong>of</strong> <strong>the</strong> firm’s predominant orientation on <strong>the</strong> price- or cost-based competition, as <strong>the</strong>
orientation on cost-based competition can be practically embodied in <strong>the</strong> high level <strong>of</strong> standardization
<strong>of</strong> both <strong>the</strong> used technologies and <strong>the</strong> production <strong>of</strong> <strong>the</strong> firm aiming to reach <strong>the</strong> maximal scale
economy, while <strong>the</strong> orientation on quality-based competition can be embodied in lower levels <strong>of</strong>
standardization <strong>of</strong> <strong>the</strong> both aiming to reach <strong>the</strong> maximal possible supply diversity.
Thus, <strong>the</strong> following hypo<strong>the</strong>ses can be formulated:
Hypo<strong>the</strong>sis 6:
Increase in <strong>the</strong> firm’s orientation on <strong>the</strong> price-based competition would lead to <strong>the</strong> increase in
probability <strong>of</strong> <strong>the</strong> firm’s inclination to buy necessary TKR on <strong>the</strong> open market and to create a longterm
alliance relationship with <strong>the</strong> necessary TKR provider (in case <strong>of</strong> increase in <strong>the</strong> ability to control
<strong>the</strong> potential counterparty’s actions), and, in turn, to decrease <strong>of</strong> <strong>the</strong> probability <strong>of</strong> <strong>the</strong> firm’s inclination
to create necessary TKR by own strength and to acquire <strong>the</strong> necessary TKR provider.
Hypo<strong>the</strong>sis 7:
Increase in <strong>the</strong> firm’s orientation on <strong>the</strong> quality-based competition would lead to <strong>the</strong> increase in
probability <strong>of</strong> <strong>the</strong> firm’s inclination to create necessary TKR by own strength, to acquire <strong>the</strong> necessary
TKR provider and to create a long-term alliance relationship with <strong>the</strong> necessary TKR provider (in case
<strong>of</strong> increase in <strong>the</strong> ability to control <strong>the</strong> potential counterparty’s actions) and, in turn, to decrease <strong>of</strong> <strong>the</strong>
probability <strong>of</strong> <strong>the</strong> firm’s inclination to buy necessary TKR on <strong>the</strong> open market.
The technological knowledge used by a firm under rapid technological change conditions can undergo
changes while being used, so such an influencing factor can also be suggested as <strong>the</strong> possible
necessity <strong>of</strong> support and fur<strong>the</strong>r development <strong>of</strong> <strong>the</strong> necessary TKR after its implementation (Howells,
James & Malik. 2003; Howells, Gagliardi & Malik. 2008). This factor can be supposed to increase <strong>the</strong>
potential uncertainty and frequency <strong>of</strong> <strong>the</strong> transaction and thus to increase <strong>the</strong> firm’s probability to
choose TKR renovation sources closer to <strong>the</strong> “shared governance” edge <strong>of</strong> <strong>the</strong> Williamson’s
continuum.
Thus, such a hypo<strong>the</strong>sis can be formulated:
Hypo<strong>the</strong>sis 8:
Increase in necessity <strong>of</strong> support and fur<strong>the</strong>r development <strong>of</strong> <strong>the</strong> necessary TKR would lead to <strong>the</strong>
increase in probability <strong>of</strong> <strong>the</strong> firm’s inclination to create necessary TKR by own strength, to acquire <strong>the</strong>
necessary TKR provider and to create a long-term alliance relationship with <strong>the</strong> necessary TKR
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Evgeny Blagov
provider (in case <strong>of</strong> increase in <strong>the</strong> ability to control <strong>the</strong> potential counterparty’s actions) and, in turn,
to decrease <strong>of</strong> <strong>the</strong> probability <strong>of</strong> <strong>the</strong> firm’s inclination to buy necessary TKR on <strong>the</strong> open market.
Ano<strong>the</strong>r suggestion based on <strong>the</strong> assumption <strong>of</strong> this factor’s positive influence on <strong>the</strong> potential
uncertainty <strong>of</strong> <strong>the</strong> TKR renovation transaction is that <strong>the</strong> necessity <strong>of</strong> support and fur<strong>the</strong>r development
<strong>of</strong> <strong>the</strong> necessary TKR can act as a counterbalance to <strong>the</strong> influence <strong>of</strong> <strong>the</strong> congruence factor on <strong>the</strong>
uncertainty <strong>of</strong> <strong>the</strong> transaction (Howells, James & Malik. 2003; Howells, Gagliardi & Malik. 2008).
So, a following hypo<strong>the</strong>sis can be formulated:
Hypo<strong>the</strong>sis 9:
Necessity <strong>of</strong> support and fur<strong>the</strong>r development <strong>of</strong> <strong>the</strong> necessary TKR would diminish <strong>the</strong> influence <strong>of</strong>
congruence <strong>of</strong> results <strong>of</strong> <strong>the</strong> focal firm and a potential counterparty on <strong>the</strong> firm’s choice <strong>of</strong> <strong>the</strong> TKR
renovation sources.
Empirical research design
To check each <strong>of</strong> <strong>the</strong> hypo<strong>the</strong>ses four ordered probit models have been built with ordinal variables
characterizing <strong>the</strong> firm’s inclination to choose a TKR renovation sources variant.
An example <strong>of</strong> such a model could be a questionnaire item reflecting <strong>the</strong> dependent variable <strong>of</strong> <strong>the</strong>
probability <strong>of</strong> <strong>the</strong> firm’s inclination to create necessary TKR by own strength. This item has a following
formulation:
How <strong>of</strong>ten in cases <strong>of</strong> technological knowledge renovation for <strong>the</strong> last 10 years <strong>the</strong> firm did create <strong>the</strong>
necessary knowledge by own strength?
(0 – it never did; 5 – <strong>the</strong> firm used this source in around 50% cases; 10 – <strong>the</strong> firm did use solely this
source <strong>of</strong> technological knowledge renovation).
An independent variable for that question was designed in <strong>the</strong> following logic:
y = {0, if <strong>the</strong> firm did never create necessary TKR by own strength; 5, if <strong>the</strong> firm used this source in
around 50% cases; 10, if <strong>the</strong> firm did use solely this TKR renovation source}.
Description <strong>of</strong> <strong>the</strong> o<strong>the</strong>r three dependent variables was done analogically.
As independent variables ordinal and binary variables characterizing <strong>the</strong> influencing factors were
used.
An example <strong>of</strong> an ordinal variable construction could be a questionnaire item reflecting <strong>the</strong> factor <strong>of</strong>
<strong>the</strong> necessary TKR’s importance for <strong>the</strong> firm’s result. Its formulation is:
How important for <strong>the</strong> firm in making decisions related to <strong>the</strong> technological knowledge renovation
sources for <strong>the</strong> last 10 years have been a factor <strong>of</strong> <strong>the</strong> focal knowledge resource’s importance for <strong>the</strong>
firm’s result?
(0 – absolutely unimportant; 5 – relatively important among o<strong>the</strong>rs; 10 – this factor was one <strong>of</strong> <strong>the</strong> key
factors).
An independent variable for this question was designed using <strong>the</strong> following logic:
x = {0, if <strong>the</strong> factor have been absolutely unimportant; 5, if <strong>the</strong> factor have been relatively important
among o<strong>the</strong>rs; 10, if it have been one <strong>of</strong> <strong>the</strong> key factors}.
All o<strong>the</strong>r independent variables were described analogously except for those related to <strong>the</strong> factors <strong>of</strong>
orientation on cost- or quality-based competition that are not ordinal but binary.
A questionnaire item for <strong>the</strong>se variables is <strong>the</strong> following:
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Evgeny Blagov
Was <strong>the</strong> firm in <strong>the</strong> last 10 years more oriented on price- or quality-based competition?
(0 – a firm was oriented primarily on cost-based competition; 5 – a firm was nearly equally oriented on
both; 10 – a firm was oriented primarily on quality-based competition).
The independent variables for <strong>the</strong>se factors were built using <strong>the</strong> following logic:
For <strong>the</strong> orientation on cost-based competition:
х = {0, if a firm was oriented primarily on quality-based competition; 1, if a firm was nearly equally
oriented on both or primarily on cost-based competition}.
For <strong>the</strong> orientation on quality-based competition:
х = {0, if a firm was oriented primarily on cost-based competition; 1, if a firm was nearly equally
oriented on both or primarily on quality-based competition}.
The questionnaire constructed for <strong>the</strong> quantitative research was sent via e-mail to <strong>the</strong> sample <strong>of</strong> 300
Russian companies <strong>of</strong> <strong>the</strong> industry classification “Heavy, energetic and transport engineering”
randomly selected by region. The response rate was <strong>of</strong> 10%, thus giving <strong>the</strong> resulting sample <strong>of</strong> 30
companies.
4. Results
At <strong>the</strong> 0.05 significance level most <strong>of</strong> <strong>the</strong> equations resulted to be not statistically significant, except
for <strong>the</strong> equation testing <strong>the</strong> hypo<strong>the</strong>sis 3 for a dependent variable <strong>of</strong> creating long-term alliance
relationship with a necessary TKR provider (<strong>the</strong> hypo<strong>the</strong>sis is partly not supported because <strong>the</strong>
coefficient <strong>of</strong> <strong>the</strong> uniqueness variable is negative (-2.32) along with <strong>the</strong> positive coefficient (2.07) <strong>of</strong>
<strong>the</strong> ability to control variable) and all <strong>the</strong> equations testing <strong>the</strong> hypo<strong>the</strong>ses 8 and 9.
From <strong>the</strong> equations testing <strong>the</strong> hypo<strong>the</strong>sis 8, <strong>the</strong> equation for creating necessary TKR by owns
strength is supporting <strong>the</strong> hypo<strong>the</strong>sis due to <strong>the</strong> positive coefficient <strong>of</strong> <strong>the</strong> independent variable
(0.186). The equation for buying necessary TKR on <strong>the</strong> open market is statistically significant but <strong>the</strong>
coefficient <strong>of</strong> <strong>the</strong> independent variable (0.053) is not significant. The equation for necessary TKR
provider acquisition is not supporting <strong>the</strong> hypo<strong>the</strong>sis due to <strong>the</strong> negative coefficient <strong>of</strong> <strong>the</strong> independent
variable (-0.164). The equation for creating long-term alliance relationship with <strong>the</strong> necessary TKR
provider is not supporting <strong>the</strong> hypo<strong>the</strong>sis due to <strong>the</strong> negative coefficient <strong>of</strong> <strong>the</strong> independent variable <strong>of</strong>
necessity <strong>of</strong> support and fur<strong>the</strong>r development <strong>of</strong> necessary TKR (-0.387) along with <strong>the</strong> positive
coefficient <strong>of</strong> <strong>the</strong> variable <strong>of</strong> a focal firm’s ability to control <strong>the</strong> actions <strong>of</strong> a potential counterparty
(0.473).
From <strong>the</strong> equations testing <strong>the</strong> hypo<strong>the</strong>sis 9, <strong>the</strong> equation for making necessary TKR by own strength
is not able to be used for <strong>the</strong> hypo<strong>the</strong>sis testing due to <strong>the</strong> insignificance <strong>of</strong> <strong>the</strong> independent variables
<strong>of</strong> <strong>the</strong> congruence factor (p-values for <strong>the</strong> results congruence and ability to control a potential
counterparty are respectively 0.084 and 0.414). The equation for buying necessary TKR on <strong>the</strong> open
market is partly supporting <strong>the</strong> hypo<strong>the</strong>sis: <strong>the</strong> variable <strong>of</strong> <strong>the</strong> focal firm’s ability to control <strong>the</strong> actions
<strong>of</strong> <strong>the</strong> potential counterparty is not significant (<strong>the</strong> p-value <strong>of</strong> this variable is 0.573), while <strong>the</strong>
coefficients for <strong>the</strong> results congruence and necessity <strong>of</strong> support and fur<strong>the</strong>r development <strong>of</strong> <strong>the</strong>
necessary TKR are significant with <strong>the</strong> coefficients <strong>of</strong> respectively 0.346 and -0.385. The equation for
acquiring <strong>the</strong> necessary TKR provider is partly supported because <strong>the</strong> independent variable <strong>of</strong> <strong>the</strong>
focal firm’s ability to control <strong>the</strong> actions <strong>of</strong> <strong>the</strong> potential counterparty is not significant (with <strong>the</strong> p-value
<strong>of</strong> 0.490) while <strong>the</strong> significant variables (results congruence and necessity <strong>of</strong> support and fur<strong>the</strong>r
development <strong>of</strong> necessary TKR) have coefficients <strong>of</strong> respectively 0.485 and -0.074. The equation for
creating a long-term alliance relationship with <strong>the</strong> necessary TKR provider is supporting <strong>the</strong>
hypo<strong>the</strong>sis with <strong>the</strong> coefficients <strong>of</strong> 0.339, 0.441 and -0.506 for <strong>the</strong> independent variables <strong>of</strong> <strong>the</strong> results
congruence, ability to control and necessity <strong>of</strong> support and fur<strong>the</strong>r development <strong>of</strong> necessary TKR
respectively.
So, <strong>the</strong> criteria influencing <strong>the</strong> choice <strong>of</strong> TKR renovation sources appear to be based on such factors
as necessary TKR’s uniqueness in comparison with <strong>the</strong> respective market, necessity <strong>of</strong> support and
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Evgeny Blagov
fur<strong>the</strong>r development <strong>of</strong> <strong>the</strong> necessary TKR, congruence between <strong>the</strong> results <strong>of</strong> <strong>the</strong> focal firm and its
potential counterparty and focal firm’s ability to control <strong>the</strong> actions <strong>of</strong> <strong>the</strong> counterparty.
These criteria toge<strong>the</strong>r are possible to be arranged in a TKR renovation sources choice algorithm
aimed to help <strong>the</strong> business practitioners in making such choices. As mentioned above, <strong>the</strong> first step <strong>of</strong>
TKR renovation sources choice is <strong>the</strong> choice between creating necessary TKR by own strength or
using <strong>the</strong> external TKR renovation sources. This choice in <strong>the</strong> algorithm is made using <strong>the</strong> criterion <strong>of</strong>
relative necessity <strong>of</strong> support and fur<strong>the</strong>r development <strong>of</strong> <strong>the</strong> necessary TKR: if for this particular
necessary TKR this necessity is higher than for o<strong>the</strong>r TKR <strong>of</strong> comparable scale used by <strong>the</strong> firm, it is
preferable for <strong>the</strong> firm to create <strong>the</strong> necessary TKR by own strength. In <strong>the</strong> opposite case, <strong>the</strong> first
criterion <strong>of</strong> choice between <strong>the</strong> different external TKR renovation sources is <strong>the</strong> firm’s relative ability to
control <strong>the</strong> actions <strong>of</strong> a potential necessary TKR provider. If this ability is higher than for its average
level in <strong>the</strong> firm’s interactions with external TKR providers, <strong>the</strong> firm must <strong>the</strong>n look on <strong>the</strong> relative
uniqueness <strong>of</strong> <strong>the</strong> necessary TKR in comparison with <strong>the</strong> respective market. If <strong>the</strong> necessary TKR are
not more unique than o<strong>the</strong>r TKR <strong>of</strong> comparable scale used by <strong>the</strong> firm, it is preferable for <strong>the</strong> firm to
create a long-term alliance relationship with <strong>the</strong> necessary TKR provider. In <strong>the</strong> opposite case, <strong>the</strong>
firm must use <strong>the</strong> relative results congruence criterion. If <strong>the</strong> relative results congruence <strong>of</strong> <strong>the</strong> firm
and a potential necessary TKR provider is higher than <strong>the</strong> average in <strong>the</strong> firm’s interactions with
external TKR providers, it is preferable for <strong>the</strong> firm to acquire this provider; in <strong>the</strong> o<strong>the</strong>r case it is
preferable to buy necessary TKR on <strong>the</strong> open market.
5. Discussion
Although <strong>the</strong> comparative analysis <strong>of</strong> empirical boundary <strong>of</strong> <strong>the</strong> firm studies based on <strong>the</strong>
Williamson’s framework show that <strong>the</strong> most significant factor from those included in <strong>the</strong> framework is
<strong>the</strong> asset specificity, <strong>the</strong> results <strong>of</strong> this study are not directly supporting this. From <strong>the</strong> factors
analyzed in <strong>the</strong> study being direct proxies to asset specificity (three “uniqueness” factors) only one
(namely <strong>the</strong> uniqueness <strong>of</strong> <strong>the</strong> necessary TKR in comparison with <strong>the</strong> respective market and industry)
appears to exert statistically significant influence on <strong>the</strong> firms’ inclination to choose only one <strong>of</strong> <strong>the</strong>
TKR renovation sources, namely, <strong>the</strong> long-term alliance relationship creation with <strong>the</strong> necessary TKR
provider. However, this influence does not follow <strong>the</strong> respective hypo<strong>the</strong>sis suggestion: even in <strong>the</strong>
case <strong>of</strong> growth <strong>of</strong> <strong>the</strong> ability to control <strong>the</strong> actions <strong>of</strong> such provider, this factor doesn’t show <strong>the</strong>
positive influence <strong>of</strong> <strong>the</strong> firm’s inclination to create such relationships.
It can be suggested that such result is caused by specific traits <strong>of</strong> knowledge resources differing from
o<strong>the</strong>r kinds <strong>of</strong> resources used by firms. Several authors point out such properties <strong>of</strong> <strong>the</strong> knowledge
resources as <strong>the</strong>ir non-exclusivity and non-diminishing marginal revenue that sharpen <strong>the</strong> time
constraints <strong>of</strong> making decisions about <strong>the</strong> boundary <strong>of</strong> <strong>the</strong> firm (Teece. 1998; Roos, Pike &
Fernström. 2005). This can be supposed to lower <strong>the</strong> significance <strong>of</strong> asset specificity for such
decisions, at least in <strong>the</strong> static view, and make <strong>the</strong> asset specificity more an issue <strong>of</strong> time, for
example, <strong>of</strong> time advantage <strong>of</strong> <strong>the</strong> first-movers in <strong>the</strong> commercial implementation <strong>of</strong> <strong>the</strong> technological
knowledge resource.
In <strong>the</strong> results <strong>of</strong> this study such suggestion is supported by <strong>the</strong> significance <strong>of</strong> <strong>the</strong> factor <strong>of</strong> necessity
<strong>of</strong> support and fur<strong>the</strong>r development <strong>of</strong> <strong>the</strong> necessary TKR. As <strong>the</strong> increase in this factor increases <strong>the</strong>
firm’s inclination to create necessary TKR by own strength and counteracts <strong>the</strong> influence <strong>of</strong> <strong>the</strong> results
congruence factor, it can be suggested that in <strong>the</strong> dynamic context <strong>the</strong> knowledge resources, contrary
to <strong>the</strong> ideas <strong>of</strong> <strong>the</strong> knowledge-based <strong>the</strong>ory <strong>of</strong> <strong>the</strong> firm, follow <strong>the</strong> transaction cost <strong>the</strong>ory
considerations. So, <strong>the</strong> fur<strong>the</strong>r directions <strong>of</strong> <strong>the</strong> research development could contain a deeper inquiry
into <strong>the</strong> temporal aspects (for example, <strong>the</strong> role <strong>of</strong> first-mover advantages and standard-setting in
TKR renovation sources) <strong>of</strong> <strong>the</strong> TKR development process. O<strong>the</strong>r possible fur<strong>the</strong>r research
development directions can contain comparative studies <strong>of</strong> firms belonging to different industrial
and/or national contexts to analyze possible influence <strong>of</strong> <strong>the</strong> industrial and national specificity on <strong>the</strong>
researched interdependencies.
6. Conclusions
Following <strong>the</strong> purpose <strong>of</strong> developing an approach to analysis <strong>of</strong> <strong>the</strong> firms’ choice <strong>of</strong> technological
knowledge resources (TKR) renovation sources a set <strong>of</strong> hypo<strong>the</strong>ses about criteria <strong>of</strong> such choice had
been created and tested on a sample <strong>of</strong> 30 Russian heavy engineering firms. The main finding <strong>of</strong> <strong>the</strong>
hypo<strong>the</strong>ses testing is that <strong>the</strong> most significant criteria are based on <strong>the</strong> factor <strong>of</strong> necessity <strong>of</strong> support
and fur<strong>the</strong>r development <strong>of</strong> necessary TKR that increases <strong>the</strong> probability <strong>of</strong> <strong>the</strong> firms’ inclination to
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Evgeny Blagov
internalization <strong>of</strong> <strong>the</strong> TKR renovation sources. This result can be interpreted as supporting <strong>the</strong>
suggestions <strong>of</strong> transaction cost <strong>the</strong>ory <strong>of</strong> <strong>the</strong> firm in <strong>the</strong> dynamic temporal settings, thus leading to
such possible fur<strong>the</strong>r directions <strong>of</strong> research development as deeper inquiry into <strong>the</strong> temporal aspects
<strong>of</strong> <strong>the</strong> TKR development process, for example, <strong>the</strong> role <strong>of</strong> first-mover advantages and standardsetting
in <strong>the</strong> decisions <strong>of</strong> choosing between TKR renovation sources.
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654

A Framework Linking Knowledge Management Practices
and Healthcare Delivery Performance
Prantik Bordoloi and Nazrul Islam
School <strong>of</strong> Management, Asian Institute <strong>of</strong> Technology, Bangkok, Thailand
Prantik.Bordoloi@ait.ac.th
nazrul@ait.ac.th
Abstract: Being a knowledge driven process, healthcare delivery provides opportunity to incorporate knowledge
management practices to improve processes. But it has also been noted that knowledge management (KM) is
systematically more complex in healthcare and minimal research exist to guide academic and organizational
stakeholders. The purpose <strong>of</strong> this paper is to investigate <strong>the</strong> application and impact <strong>of</strong> knowledge management
practices in healthcare delivery. The paper is primarily based on a literature review <strong>of</strong> <strong>the</strong> healthcare knowledge
management and associated information sciences research streams. The fundamental research questions are:
‘‘what and how do <strong>the</strong> various knowledge management practices affect <strong>the</strong> performance <strong>of</strong> healthcare delivery?’’
and ‘‘what are <strong>the</strong> contingent and contextual factors that needs to be considered when exploring <strong>the</strong> relationship
between knowledge management practices and performance <strong>of</strong> healthcare delivery?’’. The paper is conceptual in
its nature and aims to propose a contingency based framework to drive fur<strong>the</strong>r empirical research. We first
discuss facets <strong>of</strong> performance in healthcare delivery but <strong>the</strong>reafter focus on <strong>the</strong> technical and interpersonal care
aspects <strong>of</strong> healthcare delivery. We investigate KM practices in <strong>the</strong> areas <strong>of</strong> (i) knowledge elicitation, acquisition
and sharing, (ii) knowledge application for clinical decision support, and (iii) capturing and sharing patient
information. In our paper we explore how <strong>the</strong> different KM practices affect <strong>the</strong> performance <strong>of</strong> healthcare delivery
through technical and interpersonal care. Thereafter we explore <strong>the</strong> factors <strong>of</strong> physician characteristic, ailment
characteristics and organization characteristics, on which <strong>the</strong> conceptual framework will be contingent on. From
an academic perspective our paper identifies some key KM practices and explores <strong>the</strong>ir linkages with technical
and interpersonal care, while from a practical point <strong>of</strong> view it provides implications for administrators and
practitioners in healthcare delivery on <strong>the</strong> management <strong>of</strong> contingency factors so that <strong>the</strong> KM practices can be
properly implemented.
Keywords: healthcare knowledge management; healthcare delivery performance; electronic medical records;
clinical decision support; evidence based medicine
1. Introduction
Healthcare delivery is a knowledge driven process and hence knowledge management and
knowledge management capacity provides an opportunity for improvement in process performance
(Nilakanta et al., 2009). Recent reviews on knowledge management in <strong>the</strong> healthcare industry show
important insights into <strong>the</strong> state <strong>of</strong> present research (Nicolini et al., 2008, Sheffield, 2008). Sheffield
(2008) states that knowledge management is systemically more complex in healthcare because <strong>the</strong>
three domain <strong>of</strong> knowledge creation, knowledge normalization and knowledge application correspond
to three knowledge management perspectives i.e., personal values, social norms and objective facts,
respectively, which have inherent tension between and within <strong>the</strong>m. Nicolini et al. (2008) has noted
that knowledge management research over <strong>the</strong> years have focused on three overarching <strong>the</strong>mes:
“<strong>the</strong> nature <strong>of</strong> knowledge in <strong>the</strong> healthcare sector, <strong>the</strong> type <strong>of</strong> KM tools and initiatives that are suitable
for <strong>the</strong> healthcare sector, and <strong>the</strong> barriers and enablers to adoption <strong>of</strong> KM practices”.
Recent research none<strong>the</strong>less, Dwivedi et al. (2005) has noted that knowledge management as a
paradigm in healthcare has been quite new and <strong>the</strong>re exists minimal research to “guide academic and
organizational stakeholders”. The purpose <strong>of</strong> this paper as such is to develop and describe a model to
provide an explanation <strong>of</strong> <strong>the</strong> application and impact <strong>of</strong> knowledge management practices in
healthcare delivery. First it provides a background on aspects <strong>of</strong> performance in healthcare delivery.
Then a conceptual framework on <strong>the</strong> application <strong>of</strong> knowledge management practices and <strong>the</strong>ir
impact on healthcare delivery, along with <strong>the</strong> contingent factors that affects <strong>the</strong>se relationships, are
developed and discussed. Finally, conclusions are drawn and fur<strong>the</strong>r research recommendations are
made.
2. The context - healthcare delivery and performance
Delivery <strong>of</strong> healthcare is a complex endeavour (Sheffield, 2008). The primary organizations for
healthcare delivery are <strong>the</strong> healthcare providers although inter-organizational relationships with o<strong>the</strong>r
players provide a foundation. Though similar to service organizations, healthcare delivery
organizations differ from o<strong>the</strong>r organizations in many aspects. Shortell and Kaluzny (2000) state some
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Prantik Bordoloi and Nazrul Islam
important differences between healthcare delivery organizations and o<strong>the</strong>r industrial organizations
such as work is “variable and complex” and can be also <strong>of</strong> an emergency or non-deferrable nature
and <strong>the</strong>re is very little tolerance for “ambiguity or error”. Healthcare delivery also presents a very a
unique situation exists where <strong>the</strong> primary loyalty <strong>of</strong> <strong>the</strong> pr<strong>of</strong>essionals belong to <strong>the</strong>ir pr<strong>of</strong>ession ra<strong>the</strong>r
than to <strong>the</strong> organization (Shortell and Kaluzny, 2000).
Fur<strong>the</strong>rmore, healthcare delivery is moving away from a physician-patient relationship to a customercompany
relationship, and at <strong>the</strong> same time <strong>the</strong> traditional single physician-patient relationship is
moving towards a situation where <strong>the</strong> healthcare is delivered by a team <strong>of</strong> healthcare pr<strong>of</strong>essionals
wherein each specialize in a single aspect <strong>of</strong> healthcare (Bose, 2003, Burns and Wharton School
Colleagues, 2002).
Performance in organizations is multidimensional, and can be understood across functional lines such
as financial, human resources, organizational learning etc. Performance in healthcare delivery can be
studied along <strong>the</strong> different domain <strong>of</strong> activities, and across <strong>the</strong> dimensions <strong>of</strong> effectiveness,
accessibility and efficiency (Alhashem et al., 2011, Li and Benton, 1996).
As <strong>the</strong> focus <strong>of</strong> this paper is to explore how knowledge management practices affect healthcare
delivery, we have to finalize a framework which provides <strong>the</strong> opportunity for most plausible way to
study <strong>the</strong> impact <strong>of</strong> KM practices on healthcare delivery. Hence we decided to look into <strong>the</strong> measures
<strong>of</strong> effectiveness and quality in clinical and patient care in <strong>the</strong> context <strong>of</strong> healthcare delivery.
Quality <strong>of</strong> clinical and patient care can be viewed both in terms <strong>of</strong> outcome and <strong>the</strong> degree to which
<strong>the</strong> need and expectation <strong>of</strong> <strong>the</strong> patient has been meet in terms <strong>of</strong> technical and interpersonal care
(Donabedian, 1988, Campbell et al., 2000, Esch et al., 2008, Dagger et al., 2007).
2.1 Evidence based medicine
Evidence-based medicine is a measure <strong>of</strong> effectiveness in <strong>the</strong> process <strong>of</strong> technical care in healthcare
delivery (Campbell et al., 2000). Evidence-based medicine is <strong>the</strong> paradigm in which <strong>the</strong>
“conscientious, explicit, and judicious use <strong>of</strong> current best evidence is used in making decisions about
<strong>the</strong> care <strong>of</strong> individual patients” (Sackett et al., 1996). The practice <strong>of</strong> evidence based medicine means
integrating individual clinical expertise with <strong>the</strong> best available external clinical evidence (based on all
valid and relevant information) from systematic research (Hicks, 1997, Sackett et al., 1996, Abalos et
al., 2005).
Eddy (2005) has pointed out <strong>the</strong>re are two different approaches to practicing evidence-based
medicine, implementing evidence-based guidelines and adopting an evidence-based individual
decision making process. He notes that Integration <strong>of</strong> <strong>the</strong>se approaches combination moves medical
practices toward evidence faster, more consistently, and more efficiently than evidence-based
individual decision making alone.
The extent to which physicians practice evidence-based medicine, in terms <strong>of</strong> both implementing
evidence-based guidelines and adopting an evidence-based individual decision making process, is an
determinant <strong>of</strong> healthcare delivery performance.
2.2 Interpersonal care
Interpersonal care is <strong>the</strong> social and psychological interactions that happens between <strong>the</strong> patient and
<strong>the</strong> physician or o<strong>the</strong>r care givers (Campbell et al., 2000). Several researchers have already pointed
out that <strong>the</strong> quality <strong>of</strong> interpersonal care is one <strong>of</strong> <strong>the</strong> most important constituent in patient satisfaction
and <strong>the</strong>ir perception <strong>of</strong> service quality (Dagger et al., 2007, Gill and White, 2009, Li and Benton, 1996,
Naidu, 2009). Effectives in <strong>the</strong> context <strong>of</strong> interpersonal care is whe<strong>the</strong>r <strong>the</strong> interactions were was
efficacious and appropriate (Flood et al., 2000).
3. Conceptual model
3.1 Social practices <strong>of</strong> knowledge acquisition and sharing
Many researchers (Davenport and Glaser, 2002, Nicolini et al., 2008, Gray and de Lusignan, 1999,
Heathfield and Louw, 1999) state that healthcare has reached a stage wherein individual healthcare
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Prantik Bordoloi and Nazrul Islam
pr<strong>of</strong>essionals can no longer keep track <strong>of</strong> <strong>the</strong> vast amount <strong>of</strong> scientific knowledge that is relevant to
<strong>the</strong>ir clinical practice. Overwhelming but none<strong>the</strong>less nature <strong>of</strong> knowledge in healthcare is such that it
is distributed and fragmented across organizational and pr<strong>of</strong>essional boundaries (Meijboom et al.,
2004, Nicolini et al., 2008, Gray and de Lusignan, 1999, Heathfield and Louw, 1999). Gary and de
Lusignan (2004) state that, “healthcare pr<strong>of</strong>essionals face a paradox; <strong>the</strong>y are overwhelmed with
information but cannot find a particular piece <strong>of</strong> information when and where <strong>the</strong>y need it”.
Healthcare delivery in itself is a setting where different pr<strong>of</strong>essional groups having differing “rules, job
representations, behaviors and value coverage” engage in a collaborative process, with both “explicit
and tacit knowledge aspects”, to achieve outcomes in terms <strong>of</strong> access, quality and cost (Paul, 2006,
Tagliaventi and Mattarelli, 2006, Nicolini et al., 2008).
Networks amongst healthcare pr<strong>of</strong>essionals are nothing new. They have existed and have always
played an important part in healthcare delivery, but <strong>the</strong> formalization <strong>of</strong> <strong>the</strong>se networks in recognition
<strong>of</strong> <strong>the</strong>ir potential for knowledge sharing is new (Conner, 2001). Managed clinical networks provide <strong>the</strong>
opportunity for “working in a coordinated manner, unconstrained by existing pr<strong>of</strong>essional and
organisational boundaries” to improve quality <strong>of</strong> care (Edwards, 2002, Thomas, 2003).
Researchers (Lathlean and Le May, 2002, Gabbay and Le May, 2004) have found that communities
<strong>of</strong> practice (CoPs) provide a new pathway to sharing clinical evidence and new knowledge between
<strong>the</strong> various different specialized healthcare pr<strong>of</strong>essionals (physicians, nurses, techinicans, etc) that
are members. CoPs thus provide a mechanism for <strong>the</strong> different pr<strong>of</strong>essional groups that exist within a
healthcare organization, to leverage on <strong>the</strong>ir tacit knowledge base. The scope <strong>of</strong> CoPs are now being
broadened to study on how knowledge and information is shared, used and valued in decision making
and action planning between agencies, pr<strong>of</strong>essional groups and between <strong>the</strong>se and consumers
(Lathlean and Le May, 2002). Gabbay et al. (2003) report that some <strong>of</strong> <strong>the</strong> emergent <strong>the</strong>mes after
<strong>the</strong>ir study <strong>of</strong> multi-organizational CoPs to identify knowledge-related behavior, was that certain kinds
<strong>of</strong> knowledge were deemed to be privileged and accepted, and that <strong>the</strong> CoP members individually
and collectively transformed and internalized new knowledge that became available to <strong>the</strong>m.
Several researchers have noted that <strong>the</strong> transfer <strong>of</strong> knowledge among healthcare practitioners
(physicians, nurses, technicians) is dependent on pr<strong>of</strong>essional networks and communities <strong>of</strong> practice.
Hence <strong>the</strong>se should be leveraged by healthcare delivery organizations as an important means <strong>of</strong>
diffusing medical evidence and ‘best practices’ across organizational boundaries (Brice and Gray,
2003, Gabbay et al., 2003, Tagliaventi and Mattarelli, 2006, Lathlean and Le May, 2002, Addicott et
al., 2006). As such, CoPs and networks have implications for evidence-based medicine. Hence, it is
proposed that:
P1: Involvement in social learning practices will have a positive effect on <strong>the</strong> practice <strong>of</strong> evidencebased
medicine.
3.2 Knowledge elicitation and application for clinical decision support
Distributed, explicit or tacit, knowledge form <strong>the</strong> basis for decisions in healthcare (Nicolini et al., 2008).
As such <strong>the</strong> management <strong>of</strong> knowledge is paramount in <strong>the</strong> context <strong>of</strong> a healthcare delivery
organization. Healthcare pr<strong>of</strong>essions face a dilemma as <strong>the</strong>re has been an revolutionary increase in
clinical knowledge but still healthcare processes have not been able to utilize and incorporate <strong>the</strong>se
available knowledge when and where it is required (Nicolini et al., 2008, Gray and de Lusignan,
1999). Creating electronic repositories to facilitate <strong>the</strong> management <strong>of</strong> both tacit and explicit
knowledge <strong>of</strong> healthcare pr<strong>of</strong>essionals in <strong>the</strong> form <strong>of</strong> articles, guidelines, clinical protocols etc., have
been referred to as paramount to adoption <strong>of</strong> knowledge management in healthcare delivery (Nicolini
et al., 2008, Wales, 2005, Plaice and Kitch, 2003).
The nature <strong>of</strong> knowledge has to be also taken into consideration while thinking about adoption <strong>of</strong>
knowledge mined from knowledge repositories. Particularly as research has shown that some kinds <strong>of</strong>
knowledge (for example knowledge from local and tacit sources) have better adaptability (Gabbay
and Le May, 2004, Clarke and Wilcockson, 2002).
Clinical decision support systems (CDSS) are systems that provide healthcare pr<strong>of</strong>essionals with
“patient-specific assessments or recommendations to aid clinical decision making” (Kawamoto et al.,
2005). CDSS aids in clinical decision making through analysis <strong>of</strong> patient-specific information in
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“comparison with an expert knowledge base” (Bose, 2003). CDSS can provide healthcare
pr<strong>of</strong>essionals with such services as access to clinical guidelines, computer assisted diagnosis, drug
dosing and prescription and electronic reminders (Nicolini et al., 2008). Hence effective data mining
through CDSS is one <strong>of</strong> <strong>the</strong> important tools to acquire and operationalize healthcare knowledge (Abidi
et al., 2005).
CDSS would hence have to provide a synergy between knowledge procurement (data mining) and
utilization <strong>of</strong> <strong>the</strong> knowledge in decision making both through its functional and architectural
specifications (Abidi, 2001). Kawamoto et al. (2005) conclude after <strong>the</strong>ir study <strong>of</strong> identifying features
<strong>of</strong> clinical decision support systems critical for improving clinical practice, that features very important
for healthcare pr<strong>of</strong>essionals to adopt and use are: provide decision support automatically as part <strong>of</strong>
clinician workflow, deliver decision support at <strong>the</strong> time and location <strong>of</strong> decision making, provide
actionable recommendations, and use a computer to generate <strong>the</strong> decision support.
CDSS does not necessarily stop <strong>the</strong>re, CDSS usage provide data for operational and administrative
decisions that are stored in data warehouses and can be accessed later for utilization review, cost
evaluation and performance evaluation.
Knowledge Management practices in particular CDSS can facilitate <strong>the</strong> practice <strong>of</strong> evidence based
medicine (Jadad et al., 2000, Bose, 2003). In combination with electronic repositories CDSS can
provide <strong>the</strong> framework to achieve evidence based healthcare (Wales, 2005). These practices in itself
will not be enough and will have ineffective unless <strong>the</strong>y are included in <strong>the</strong> clinical workflow
(Kawamoto et al., 2005). Frize et al. (2005) has noted that though <strong>the</strong> transition from using traditional
decision practices to CDDS is a complex and arduous process, <strong>the</strong> transition did allow <strong>the</strong> physicians
to better predict certain outcomes. Patkar et al. (2006) after <strong>the</strong>ir study on evaluation <strong>of</strong> CDDS for <strong>the</strong>
triple assessment (TA) in breast cancer care, has suggested that use <strong>of</strong> CDDS may result in improved
compliance with evidence-based practice guidelines. Hence, it is proposed that:
P2: The adoption and use <strong>of</strong> clinical decision support systems will be positively related to <strong>the</strong> practice
<strong>of</strong> evidence-based medicine.
3.3 Capturing and sharing patient information
The traditional single physician-patient relationship is moving towards a situation where <strong>the</strong>
healthcare is delivered by a team <strong>of</strong> healthcare pr<strong>of</strong>essionals wherein each specialize in a single
aspect <strong>of</strong> healthcare (Bose, 2003). Such an environment necessitates <strong>the</strong> capturing and sharing <strong>of</strong>
clinical data pertaining to a patient between <strong>the</strong> different care providers.
Electronic medical records are medical records <strong>of</strong> a patient that is stored and retrieved in
digital/electronic format. The aim <strong>of</strong> medical records is to act as a repository <strong>of</strong> <strong>the</strong> physician’s
observation and analysis <strong>of</strong> <strong>the</strong> patient (Hersh, 1995). Medical records normally contain historical
information available about <strong>the</strong> patient, information from physical examination, results from tests and
procedures performed on <strong>the</strong> patient. As such electronic medical records (EMR) can be defined as
“digitally stored healthcare information about an individual’s lifetime with <strong>the</strong> purpose <strong>of</strong> supporting
continuity <strong>of</strong> care, education and research, and ensuring confidentiality at all times” (Iakovidis, 1998).
Data may be inserted into <strong>the</strong> EMR directly by <strong>the</strong> patient, physician or any o<strong>the</strong>r provider or by a
series <strong>of</strong> different techniques (Bose, 2003).
Ludwick and Doucette (2009) in <strong>the</strong>ir extensive review <strong>of</strong> literature on adoption <strong>of</strong> EMRs across seven
western economies have noted that physicians, still have significant doubt regarding <strong>the</strong> impact <strong>of</strong>
EMRs on “privacy, patient safety, provider/patient relations, staff anxiety, time factors, quality <strong>of</strong> care,
finances, efficiency, and liability”. Ano<strong>the</strong>r significant factor which inhibits <strong>the</strong> adoption <strong>of</strong> EMRs
across is <strong>the</strong> lack <strong>of</strong> standardization which creates barriers for storing <strong>of</strong> EMRs in a central location
and <strong>the</strong>n sharing it across different boundaries (Ludwick and Doucette, 2009, Wickramasinghe and
Geisler, 2007).
Nowinski et al. (2007) have noted that <strong>the</strong> implementation and use <strong>of</strong> EMRs has <strong>the</strong> possibility to
impact <strong>the</strong> healthcare delivery process in multiple ways, for example, <strong>the</strong> way <strong>the</strong> physicians and
nurses interact with <strong>the</strong> patient, waiting time in admission and discharge processes. Their analysis
shows that patient satisfaction in <strong>the</strong> process decreases <strong>the</strong> longer EMRs has been implemented.
Margalit et al. (2006) conducted an observational study in Israel to ascertain <strong>the</strong> influence <strong>of</strong> EMRs on
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Prantik Bordoloi and Nazrul Islam
physician-patient communication and deduced that physician use <strong>of</strong> computers can negatively affect
“patient-centered practice by diminishing dialogue particularly in <strong>the</strong> psychosocial and emotional
realm” (p. 140). A similar study carried out by McGrath et al. (2007) to ascertain <strong>the</strong> influence <strong>of</strong>
EMRs on nonverbal communication between <strong>the</strong> patient and <strong>the</strong> physician found out that it cannot be
clearly said whe<strong>the</strong>r <strong>the</strong> physicians use <strong>of</strong> EMRs had any negative impact on <strong>the</strong> patient-physician
relationship, though it does create ‘breakpoints’ during conversations. Hence, it is proposed that:
P3: The adoption and use <strong>of</strong> EMRs will be negatively related to <strong>the</strong> effectiveness <strong>of</strong> Interpersonal
care.
3.4 Contingency factors
Contingency <strong>the</strong>ory states that <strong>the</strong>re exist important situational influences that distinguish between
contexts and provides alternative to universal principles <strong>of</strong> management while studying a
phenomenon (Zeithaml et al., 1988, Ambrose, 2000). An aspect <strong>of</strong> contingency as identified by
Zeithaml is <strong>the</strong> identification and grouping <strong>of</strong> contingency variables (Zeithaml et al., 1988). Ambrose
(2000) provides an important contribution on contingency variables to <strong>the</strong> aspects <strong>of</strong> clinical decision
making.
Ghosh and Scott (2007) have noted that <strong>the</strong> effectiveness <strong>of</strong> knowledge management systems in
healthcare delivery, as measured by impact on both organizational-level and patient-care benefits, is
dependent on <strong>the</strong> levels <strong>of</strong> KM infrastructure (structure, technology) and KM process (acquisition,
conversion, application, protection) capability. Similar knowledge management model in a healthcare
delivery context, put forward by Orzano et al. (2008) states that <strong>the</strong> critical KM processes (finding,
sharing and developing knowledge) lead to better decision-making and organization learning which in
turn lead to organization performance in terms <strong>of</strong> quality, satisfaction and productivity. Fur<strong>the</strong>r
inherent to <strong>the</strong> model is <strong>the</strong> important role <strong>of</strong> <strong>the</strong> various factors that act as enablers for KM processes
(Lee and Choi, 2003).
We identify three primary contingency factors that affect <strong>the</strong> impact <strong>of</strong> KM practices on healthcare
delivery performance – physician, ailment, and organizational characteristics.
3.4.1 Physician characteristics
A Physician’s technical skills, training, experience will affect <strong>the</strong> clinical problem solving paradigm
adopted (Ambrose, 2000). A physician’s previous experience and training, which can typically take a
mentor-apprentice route, will have an effect on <strong>the</strong>ir usage <strong>of</strong> KM practices (Liebowitz, 2007). In
similar stead Ryu et al. (2003) state that a physician’s subjective norms have an effect on <strong>the</strong>ir
knowledge sharing behaviour.
3.4.2 Ailment characteristics
Ailments, <strong>the</strong> patients present <strong>the</strong>mselves with; can be characterized in terms <strong>of</strong> complexity <strong>of</strong> <strong>the</strong>
symptoms and urgency <strong>of</strong> treatment (Ambrose, 2000). Combinations <strong>of</strong> <strong>the</strong>se factors lead <strong>the</strong>
healthcare delivery organization making choices towards adoption <strong>of</strong> KM tools and putting <strong>the</strong>ir focus
on specific performance measures.
3.4.3 Organizational characteristics
Implementation <strong>of</strong> KM in healthcare delivery organizations is dependent on leadership, culture, HRM
practices and IT infrastructure and skills that promote KM (Sensky, 2002, Bali et al., 2005). Similarly,
organizations operating procedures and policies also impact <strong>the</strong> use <strong>of</strong> KM tools and also put <strong>the</strong>
focus <strong>of</strong> <strong>the</strong> desired performance. For example, Addicott et al. (2006) have found that excessive
legitimization and formalization <strong>of</strong> networks create disruptions in knowledge sharing. Similarly singular
focus on CoPs and social networks can lead to <strong>the</strong> “non-spread” <strong>of</strong> knowledge <strong>the</strong>se provide, given
strong social and cognitive boundaries (Ferlie et al., 2005).
4. Research approach to test <strong>the</strong> conceptual model
For testing <strong>the</strong> conceptual model presented in <strong>the</strong> previous section, hermeneutic research is needed
to develop “well grounded, rich descriptions and explanations <strong>of</strong> processes in identifiable local
contexts” (Miles and Huberman, 1994, 1). Fur<strong>the</strong>rmore qualitative research is also preferable as it can
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Prantik Bordoloi and Nazrul Islam
lead to generation <strong>of</strong> new knowledge from improved understanding <strong>of</strong> <strong>the</strong> context and existing body <strong>of</strong>
knowledge (Eisenhardt, 1989, Badir et al., 2009).
As such we posit in-depth case studies <strong>of</strong> healthcare delivery organizations which will permit <strong>the</strong>
researchers to investigate in detail <strong>the</strong> interactions between <strong>the</strong> phenomenon under study and <strong>the</strong>
contextual factors (Yin, 2003). Case study research would hence serve <strong>the</strong> following purposes:
Help validate and modify <strong>the</strong> constructs with clear conceptual definitions and <strong>the</strong> relationships
between <strong>the</strong>se constructs
Help validate and modify <strong>the</strong> contextual organizational and o<strong>the</strong>r attributes, and uncover <strong>the</strong>ir
influence in <strong>the</strong> specific context.
The researchers have identified a few hospitals in Bangkok, Thailand for carrying out <strong>the</strong> case
studies.
5. Conclusions
This paper has sought to develop a framework to understand <strong>the</strong> impact <strong>of</strong> KM practices in healthcare
delivery, especially on evidence based medicine and interpersonal care. We had also tried to explore
<strong>the</strong> contingencies on which <strong>the</strong> relationships may be contingent on.
The adoption <strong>of</strong> EMRs can impact <strong>the</strong> efficiency <strong>of</strong> healthcare delivery in terms <strong>of</strong> capturing and
sharing patient data among <strong>the</strong> different care givers, but it can negatively impact <strong>the</strong> physician-patient
relationship and subsequently <strong>the</strong> interpersonal care that <strong>the</strong> patient receives. The adoption <strong>of</strong> CDSS
and involvement in social learning practices, such as networks and CoPs, can have an impact on <strong>the</strong>
adoption <strong>of</strong> evidence-based guidelines, and evidence based decision making process by physicians.
This though would be contingent on whe<strong>the</strong>r <strong>the</strong> physicians have had previous experience in <strong>the</strong>se
practices or whe<strong>the</strong>r <strong>the</strong> healthcare delivery organizations provide supporting policies for <strong>the</strong>se
practices.
Administrators in healthcare delivery organizations have to be mindful that adoption <strong>of</strong> KM practices
would be dependent on leadership, IT infrastructure and supporting policies in HRM. As physicians
within healthcare delivery organizations normally gain experience through a mentor-apprentice route,
an organizational culture that promotes and rewards such behaviour would be beneficial. But care
should be taken to not excessively formalize social learning practices, because it may lead to
disruptions in knowledge sharing between physicians.
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662

Slide Presentation as a Knowledge Visualization Tool for
Knowledge Transfer: The Case <strong>of</strong> Information Processing
Enhancement <strong>of</strong> Field Sales Force
Daranee Delorme
Dhurakij Pundit University, Bangkok, Thailand
annedaranee@hotmail.com
Abstract: This research explores <strong>the</strong> idea <strong>of</strong> how slide presentation as a knowledge visualization tool used to
transfer knowledge enhance information processing <strong>of</strong> <strong>the</strong> receivers’ <strong>of</strong> knowledge which in this case are <strong>the</strong> field
sales force <strong>of</strong> a consumer product company. The exploratory qualitative case study research design caters <strong>the</strong>
findings via content analysis and explanation-building. Parental <strong>the</strong>ories that guide this research are information
processing and cognitive load <strong>the</strong>ories. They help construct <strong>the</strong> conceptual and <strong>the</strong>oretical frameworks <strong>of</strong> this
research. With detailed construct <strong>of</strong> case study protocol and database, <strong>the</strong> researcher reaches to <strong>the</strong> findings
that contain causal links between knowledge visualization tool and information processing process. Content
analysis shows that gestalt laws <strong>of</strong> presentation in <strong>the</strong> content <strong>of</strong> <strong>the</strong> tool help reduce extraneous cognitive load.
The knowledge content reveals that <strong>the</strong>re are both low and high element interactivity knowledge in <strong>the</strong> tool. The
finding shows that high element interactivity knowledge <strong>of</strong> no more than three knowledge elements can still be
transferred and learned. Findings from <strong>the</strong> case study analysis show that knowledge visualization tool help
enhance information processing <strong>of</strong> <strong>the</strong> receivers’ <strong>of</strong> knowledge but <strong>the</strong>re are o<strong>the</strong>r factors. The presenters and
<strong>the</strong> receivers <strong>of</strong> knowledge have <strong>the</strong>ir parts in helping and completing <strong>the</strong> process. A cross-case analysis <strong>the</strong>n
discovers fur<strong>the</strong>r findings. Characteristics <strong>of</strong> <strong>the</strong> presenters are important in enhancing <strong>the</strong> information
processing process and that cater to high knowledge retrieval rate. Presenters are important in getting attention,
comprehension, and retrieval <strong>of</strong> knowledge while <strong>the</strong> tool alone is important in delivering knowledge and
transferring knowledge to short-term memory. The receivers <strong>of</strong> knowledge are important in encoding <strong>the</strong>ir own
knowledge. The findings from this research finally alter conceptual and <strong>the</strong>oretical framework that is built prior to
<strong>the</strong> actual case study into a knowledge delivery model. This has academic and business contributions especially
to <strong>the</strong> field <strong>of</strong> knowledge management, knowledge visualization, and cognition.
Keywords: knowledge visualization, information processing process, cognition, knowledge delivery
1. Introduction
This research involves an investigation <strong>of</strong> <strong>the</strong> use <strong>of</strong> knowledge visualization tool, which in this case is
slide presentation, to explain how <strong>the</strong> tool helps in transferring knowledge and enhancing information
processing <strong>of</strong> <strong>the</strong> receivers’ <strong>of</strong> knowledge who are field sales force. In this research, <strong>the</strong> concept is
built on <strong>the</strong> literature and studies from three major areas: (a) knowledge transfer, (b) knowledge
visualization, and (c) cognition as in <strong>the</strong> aspect <strong>of</strong> human’s information processing process.
The primary interest in Knowledge Management (KM) has inspired this research. The interest has
expanded to <strong>the</strong> transfer <strong>of</strong> knowledge. Literature review reveals that in transferring knowledge,
knowledge visualization tools are used. Studies have revealed that knowledge visualization tools can
improve learning. The researcher continues to search fur<strong>the</strong>r into <strong>the</strong> field <strong>of</strong> learning and is intrigued
by human’s information processing <strong>of</strong> <strong>the</strong> brain that is similar to <strong>the</strong> information processing process <strong>of</strong>
a computer.
Literature review in knowledge transfer, knowledge visualization tools, and learning show maturation
<strong>of</strong> <strong>the</strong> fields in parallel leaving <strong>the</strong> gap for this research which is to find out how knowledge
visualization tools enhance human’s information processing. The concept <strong>of</strong> knowledge and KM is
introduced next.
Knowledge Management (KM) as mentioned by Awad and Ghaziri (2004) was an interdisciplinary
business model that has knowledge as its focus. Davenport and Prusak (1998) mentioned about
knowledge that, “Knowledge is an age-old subject”. “Knowledge is a broad and abstract notion that
has defined epistemological debate in western philosophy since <strong>the</strong> classical Greek era,” said Alavi
and Leidner (2001). “Knowledge is nei<strong>the</strong>r data nor information, though it is related to both, and <strong>the</strong>
differences between <strong>the</strong>se terms are <strong>of</strong>ten a matter <strong>of</strong> degree,” said Davenport and Prusak (1998).
Literature in knowledge management field has matured into complex knowledge management system
involving technology and how to mine data for better presentation.
663

Daranee Delorme
As part <strong>of</strong> KM, knowledge needs to be transferred to <strong>the</strong> right party in <strong>the</strong> right format and at <strong>the</strong> right
time needed (Awad and Ghaziri, 2004). Knowledge can be transferred from computers to computers,
computers to person, person to person, person to group, or group to group (Awad and Ghaziri, 2004) .
Davenport and Prusak (1998) stated that knowledge could be transferred electronically and
personally. Knowledge transfer involves two actions which are transmission <strong>of</strong> knowledge to <strong>the</strong>
recipient and <strong>the</strong> absorption <strong>of</strong> knowledge by <strong>the</strong> individual or group (Davenport and Prusak, 1998). In
order for knowledge to be transferred, it has to be absorbed (Davenport and Prusak 1998). Just like
<strong>the</strong> equation shown by Davenport and Prusak (1998) that
Transfer = Transmission + Absorbtion (and Use)
They explained fur<strong>the</strong>r that technology could be used to facilitate knowledge transfer especially for
knowledge that was explicit but for tacit knowledge, face-to-face transfer was needed. The strategies
that are used to transfer knowledge are various. Awad and Ghaziri (2004) stated that knowledge can
be transferred via documents, intranet, groupware, databases, knowledge bases, internet, chat room,
and more. Knowledge visualization tool is part <strong>of</strong> <strong>the</strong> knowledge transfer strategies. Knowledge
visualization tool is <strong>the</strong> tool that used visual representations to improve <strong>the</strong> creation and transfer <strong>of</strong>
knowledge between at least two people (Eppler and Burkhard, 2004).
At visualization summit in 2007, researchers have set goals to achieve visualization developments.
One <strong>of</strong> <strong>the</strong> goals was to develop a <strong>the</strong>oretical framework and best practice for identifying and applying
basic narratives in visualization, for visuals with <strong>the</strong> potential to affect recipients and evoke emotional
and cognitive involvement and, <strong>the</strong>refore, a deeper understanding by <strong>the</strong> target audience. The summit
in 2007 revealed that <strong>the</strong>re were needs to focus on <strong>the</strong> users or <strong>the</strong> recipients <strong>of</strong> knowledge because
<strong>the</strong>se needs have been ignored and <strong>the</strong> earlier studies have emphasized on developing <strong>the</strong> tools to
transfer knowledge only. This statement from <strong>the</strong> summit has revealed <strong>the</strong> evidence <strong>of</strong> research gap
in knowledge transfer and knowledge visualization tools implementation. Studies in knowledge
visualization tools revealed have shown interesting finding as mentioned next.
There are researches on knowledge visualization tool used in transferring knowledge showing that
knowledge and information visualizations have been shown to be effective for enhancing <strong>the</strong> cognitive
processes <strong>of</strong> retrieving knowledge and task-relevant information (Tergan, Keller et al., 2006). Eppler
and Burkhard (2004) stated that knowledge visualization was an emerging field that had not received
attention in cognition aspect especially in thinking and using knowledge. Studies done by Erikkson
L.T. (2004), Mento A. J. (1999), Jamie Nast (2006), and Eppler M. J. (2004) have shown that
knowledge visualization tools enhance learning, understanding, and recall. “The transfer <strong>of</strong> knowledge
between planners and business decision makers can be improved when planners combine traditional
visualizations with business knowledge visualizations,” revealed from <strong>the</strong> study from Burkhard (2004).
The study showed improvement in decision making due to <strong>the</strong> business knowledge received. It
evidenced a statement from Davenport and Prusak (1998) that knowledge transfer cycle would not
complete until <strong>the</strong> receivers <strong>of</strong> knowledge received and learned <strong>the</strong> knowledge. Studies in <strong>the</strong> field <strong>of</strong>
knowledge visualization tool <strong>of</strong>ten stopped at developing <strong>the</strong> tools to transfer information or
knowledge better like <strong>the</strong> one by Tergan, et al. (2006) introducing <strong>the</strong> integration <strong>of</strong> information and
knowledge by using concept maps but have not extended to <strong>the</strong> realm <strong>of</strong> <strong>the</strong> knowledge visualization
tools enhancing or supporting cognition, especially in <strong>the</strong> aspect <strong>of</strong> information processing system.
Kerren, et al. (2007) stated in her study that humans play an essential role in information visualization
so psychology and related fields must be involved. Burkhard and Meier (2005) said in his study that
<strong>the</strong> role <strong>of</strong> <strong>the</strong> recipient was not studied enough though <strong>the</strong> recipient played <strong>the</strong> major role in
transferring knowledge. Studies in <strong>the</strong> field <strong>of</strong> knowledge visualization have matured to developing
complex tool to transfer knowledge and testing <strong>the</strong> efficiency <strong>of</strong> <strong>the</strong> tools in <strong>the</strong> aspect <strong>of</strong> user
perceived benefits, usefulness, and learning. The researcher <strong>the</strong>n reviews literature in learning and
found that human learning involves many different stages and <strong>the</strong> concept <strong>of</strong> cognition is introduced.
To learn <strong>the</strong> knowledge, <strong>the</strong> process <strong>of</strong> human’s learning is involved. Cognition is a way human learns
and <strong>the</strong> study <strong>of</strong> cognition has been defined by Neisser (1967) that it is <strong>the</strong> study <strong>of</strong> how people
encode, structure, store, retrieve, use or o<strong>the</strong>rwise learn knowledge. When knowledge is learned, it is
encoded in memory ready for retrieval. Memory is one <strong>of</strong> <strong>the</strong> main areas being studied (Lutz and
Huitt, 2003) and information processing system is a form <strong>of</strong> cognition that explains <strong>the</strong> process <strong>of</strong>
human’s memory. Each process is similar to <strong>the</strong> information processing process <strong>of</strong> a computer.
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Studies in knowledge transfer, knowledge visualization, and cognition have matured in parallel in <strong>the</strong>ir
directions and have not merged. This reveals a gap for this research to study about how knowledge
visualization tool used in knowledge transfer enhances human’s information processing process.
The findings <strong>of</strong> this study address <strong>the</strong> research question <strong>of</strong> how knowledge visualization tools used to
transfer knowledge enhance information processing process. Factors that enhance information
processing process inductively emerge from <strong>the</strong> empirical data and form <strong>the</strong>mselves into meaningful
findings. They also provide better understanding <strong>of</strong> <strong>the</strong> use <strong>of</strong> knowledge visualization tools for
knowledge transfer. Users <strong>of</strong> similar context will have confidence in applying knowledge visualization
tools to achieve cognition. Visual developers will have a better understanding <strong>of</strong> how <strong>the</strong> tools can
help enhance users’ cognition. They, <strong>the</strong>n, can develop more efficient tools for users.
Fur<strong>the</strong>rmore, an extension <strong>of</strong> conceptual and <strong>the</strong>oretical framework <strong>of</strong> information processing process
and cognitive load <strong>the</strong>ory is inductively emerged from <strong>the</strong> empirical data ga<strong>the</strong>red contributed to
knowledge transfer, knowledge visualization, and learning fields. The framework is applicable to
achieve knowledge delivery in similar context.
2. Research framework
Literature review has revealed research gap and has inductively constructed <strong>the</strong>oretical framework as
seen in Figure 1 as a predetermined guideline to guide this research. Research design and data
collection is not built from scratch. According to priori specification <strong>of</strong> construct by Eisenhardt (1989),
having initial framework can help shape <strong>the</strong> initial design <strong>of</strong> <strong>the</strong>ory building research. An initial
conceptual and <strong>the</strong>oretical framework has been developed to frame <strong>the</strong> study and guide <strong>the</strong> case
study questions.
Conceptual Framework
Get receiver’s
attention
Transfer K. via K.
Vis. Tools
Understand
Knowledge
K. Transferred to
short-term
memory
Encode
K. Transferred to
long-term
memory
Retrieve K.
Info Processing Model
Presentation
Attention
Comprehension
Yielding
Retention
Behavior
Cognitive Load Theory
McGuire (2004) Sweller (1988)
Intrinsic
cognitive load
Extraneous
cognitive load
Germane
cognitive load
Figure 1: Theoretical framework
Conceptual framework, information processing model, information processing approach, information
processing <strong>the</strong>ories, and cognitive load <strong>the</strong>ory are relevant and connected to each o<strong>the</strong>r. In order to
get receiver’s attention, a presentation <strong>of</strong> knowledge by means <strong>of</strong> knowledge visualization tool must
be made. To start transferring knowledge, receivers must pay attention to take in <strong>the</strong> knowledge and
experience <strong>the</strong> first cognitive load which is intrinsic or <strong>the</strong> content <strong>of</strong> <strong>the</strong> information or <strong>the</strong> knowledge
presented. To understand knowledge, receivers’ comprehension process must be reached and <strong>the</strong>re
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must be low extraneous cognitive load, which is <strong>the</strong> load not inherent within <strong>the</strong> instruction but is
imposed by <strong>the</strong> instructional designer as <strong>the</strong>y structure and present information (Sweller, 2009), to
increase comprehension. Receivers <strong>the</strong>n yield <strong>the</strong> knowledge using short-term memory. Knowledge is
selected and encoded before being transferred to <strong>the</strong> long-term memory to be retained <strong>the</strong>re with <strong>the</strong>
germane cognitive load that triggers schema stored in <strong>the</strong> long-term memory. Receivers <strong>the</strong>n start
<strong>the</strong>ir behavior with knowledge retrieval. Throughout <strong>the</strong> flow, knowledge visualization tools are used to
cater to <strong>the</strong> information processing <strong>of</strong> <strong>the</strong> receivers.
3. Research design and method
This research follows interpretative social science approach in <strong>the</strong> aspect <strong>of</strong> constructivism. This is to
observe and explore social events in its actual setting and interpret <strong>the</strong> reality derived (Neuman,
2005). This research seeks to understand <strong>the</strong> actual knowledge transfer using slide presentation as a
knowledge visualization tool to enhance information processing <strong>of</strong> field sales force due to <strong>the</strong> lack <strong>of</strong>
literature in this field to explain <strong>the</strong> phenomenon.
This research employs a qualitative and exploratory multiple case study approach to explore and
explain <strong>the</strong> actual knowledge transfer by using knowledge visualization tools. “Colloquially, a research
design is an action plan for getting from here to <strong>the</strong>re, where here may be defined as <strong>the</strong> initial set <strong>of</strong>
questions to be answered, and <strong>the</strong>re is some set <strong>of</strong> conclusions (answers) about <strong>the</strong>se questions,”
(Yin, 1994). The researcher has started from here with a research question which is later answered by
a case study approach. Case studies are <strong>the</strong> preferred strategy when ‘how’ or ‘why’ questions are
being asked and when <strong>the</strong> researcher has little control over events, and when <strong>the</strong> focus is on a
phenomenon within real-life context (Yin, 1994). A case study examines a wide variety <strong>of</strong> aspects in
one or a few cases. Explanations or interpretations are complex and may be in <strong>the</strong> form <strong>of</strong> an
unfolding plot or a narrative story about particular people or specific events (Patton, 2002). The
context <strong>of</strong> this research is <strong>the</strong> real-life usage <strong>of</strong> knowledge visualization tool to transfer knowledge.
The case seeks to explore and explain how <strong>the</strong> tools enhance information processing process <strong>of</strong> <strong>the</strong>
receivers. A multiple case study approach can provide more insightful and in-depth findings to
address <strong>the</strong> research question.
Findings discovered extend <strong>the</strong> initial <strong>the</strong>oretical framework and create a <strong>the</strong>oretical contributed
framework according to <strong>the</strong> findings. Data collection <strong>of</strong> this research has been designed to triangulate
to increase reliability <strong>of</strong> data. Data collection methods employed in this research were: content
analysis, observation, and interview. Data collection was divided into three phases. In phase one, <strong>the</strong>
researcher interviewed <strong>the</strong> key informants or <strong>the</strong> presenters <strong>of</strong> each sites and surveyed <strong>the</strong>
knowledge visualization tool used at each site <strong>the</strong>n analyze <strong>the</strong>ir content. In phase two, <strong>the</strong>
researcher observed knowledge transfer event at each site and in phase three, <strong>the</strong> researcher
conducted interview with receivers <strong>of</strong> knowledge. Methods employed in this research were elaborated
in details as follows:
3.1 Content analysis
In <strong>the</strong> first phase <strong>of</strong> <strong>the</strong> study, content analysis was used as <strong>the</strong> research method to analyze data
obtained from <strong>the</strong> content used in <strong>the</strong> tools. It was a technique used to ga<strong>the</strong>r and analyze <strong>the</strong> content
<strong>of</strong> text (Neuman, 2005). Neuman (2005) fur<strong>the</strong>r explained that <strong>the</strong> content referred to words,
meanings, pictures, symbols, ideas, <strong>the</strong>mes, or any messages that could be communicated. This was
to find out if knowledge presented by <strong>the</strong> tools had any particular patterns that could enhance
information processing process <strong>of</strong> <strong>the</strong> receivers <strong>of</strong> knowledge.
Gestalt laws <strong>of</strong> presentation was used as a framework to analyze <strong>the</strong> content <strong>of</strong> <strong>the</strong> knowledge to find
if <strong>the</strong>re was any particular pattern <strong>of</strong> how <strong>the</strong> knowledge had been presented to <strong>the</strong> receivers. It was
also to find out if <strong>the</strong> content <strong>of</strong> knowledge had been presented according to <strong>the</strong> gestalt laws <strong>of</strong>
presentation.
After gaining consent <strong>of</strong> <strong>the</strong> site owners, <strong>the</strong> researcher entered <strong>the</strong> site and asked to ga<strong>the</strong>r <strong>the</strong>
content <strong>of</strong> knowledge used in knowledge transfer <strong>of</strong> each month. The content was <strong>the</strong>n brought back
and counted evidences <strong>of</strong> each gestalt laws. After identifying evidences, <strong>the</strong> researcher <strong>the</strong>n sent
back <strong>the</strong> result <strong>of</strong> this content analysis to <strong>the</strong> four key informants or <strong>the</strong> presenters to concur and
align. None <strong>of</strong> <strong>the</strong> evidences were modified. The next phase <strong>of</strong> data collection was <strong>the</strong> actual
observation at <strong>the</strong> research sites.
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3.2 Observation
Daranee Delorme
The second phase <strong>of</strong> <strong>the</strong> study was to observe while <strong>the</strong> tools were being used with <strong>the</strong> receivers <strong>of</strong>
knowledge. Observation was a great way in gaining insights from real-life setting. Patton (2002) said
that direct observations allowed <strong>the</strong> researcher to better understand and capture <strong>the</strong> context which
people interacted. The researcher got firsthand experience from <strong>the</strong> setting. Some routines might
escape <strong>the</strong> awareness <strong>of</strong> <strong>the</strong> people in <strong>the</strong> context but <strong>the</strong> researcher had an opportunity to see that
(Patton, 2002). Patton (2002) told fur<strong>the</strong>r that direct observation gave <strong>the</strong> opportunity to <strong>the</strong>
researcher to see things that people in <strong>the</strong> context were not willing to talk about. Through interview,
<strong>the</strong> researcher was able to find out how <strong>the</strong> receivers <strong>of</strong> knowledge thought <strong>the</strong> tool help enhance
<strong>the</strong>ir information processing process but <strong>the</strong>y were not be able to give information that <strong>the</strong>y were
unaware <strong>of</strong> but <strong>the</strong> researcher might be able to pick up during observation.
In observing, <strong>the</strong> researcher did not participate in <strong>the</strong> event. The researcher introduced herself and
told <strong>the</strong> objectives <strong>of</strong> coming to <strong>the</strong> sites and acted as observer who had a small corner observing
from afar <strong>of</strong> what went on in <strong>the</strong> context and did not distract <strong>the</strong> people being observed.
The researcher developed field note template by using conceptual and <strong>the</strong>oretical framework as a
guide to collect data and evidences from <strong>the</strong> field. Data collected in <strong>the</strong> field note were coded in
tabulated form and in NVivo 8 according to conceptual and <strong>the</strong>oretical framework for fur<strong>the</strong>r analysis.
Then <strong>the</strong> next phase <strong>of</strong> data collection was conducted.
3.3 Interview
The interview was conducted with <strong>the</strong> key informants and <strong>the</strong> receivers <strong>of</strong> knowledge. The purpose <strong>of</strong>
interviewing was to allow <strong>the</strong> researcher to get into o<strong>the</strong>r person’s perspective (Patton, 2002). The
interview with <strong>the</strong> key informant was semi-structured. The researcher prepared questions by using <strong>the</strong>
guide from conceptual and <strong>the</strong>oretical framework and questions were modified according to answers
<strong>of</strong> each key informant to gain research objectives. There was one key informant from each site
totaling to four key informants for <strong>the</strong> study.
The interview with <strong>the</strong> receivers <strong>of</strong> knowledge was structured. This was due to <strong>the</strong> amount <strong>of</strong> time
given for interviewing each receivers <strong>of</strong> knowledge. The site owners did not want business to be
disrupted so <strong>the</strong> least time possible should be used in interviewing <strong>the</strong>ir sales representatives who
were <strong>the</strong> receivers <strong>of</strong> knowledge. There were toge<strong>the</strong>r forty-three receivers <strong>of</strong> knowledge to interview.
The researcher recorded each interview and <strong>the</strong> record was played back to each key informant and
receivers <strong>of</strong> knowledge to align and concur <strong>the</strong> message. None <strong>of</strong> <strong>the</strong> key informants modified <strong>the</strong>
records. Six out <strong>of</strong> forty-three receivers <strong>of</strong> knowledge modified <strong>the</strong> records. At <strong>the</strong> research sites <strong>of</strong>
more than ten receivers <strong>of</strong> knowledge, <strong>the</strong> interview was dictated. Due to <strong>the</strong> time constraint given for
<strong>the</strong> interview, <strong>the</strong> researcher could not afford to conduct individual interview <strong>of</strong> approximately five
minutes each. The researcher <strong>the</strong>n distributed blank A4 sheet to all receivers <strong>of</strong> knowledge and
dictated <strong>the</strong> interview questions and asked each receivers <strong>of</strong> knowledge to write <strong>the</strong>ir answers in that
piece <strong>of</strong> paper. This way, receivers <strong>of</strong> knowledge got to see and aligned with <strong>the</strong>ir answers before
handing <strong>the</strong> paper to <strong>the</strong> researcher at <strong>the</strong> end <strong>of</strong> <strong>the</strong> interview session.
The researcher had asked <strong>the</strong> key informants if a telephone interview could be conducted in case <strong>of</strong>
unclear evidences <strong>of</strong> interview during data analysis. All key informants gave consent. If <strong>the</strong>re was a
need to conduct telephone interview with <strong>the</strong> receivers <strong>of</strong> knowledge, <strong>the</strong> researcher went through <strong>the</strong>
key informants first. This was because <strong>the</strong> turn-over rate <strong>of</strong> <strong>the</strong> sales representatives is high. Sales
representatives changed every two to three months. The researcher might not find <strong>the</strong> same sales
representatives who gave <strong>the</strong> interview working at <strong>the</strong> site anymore.
4. Results
This research revealed <strong>the</strong> findings that knowledge visualization tool alone can only enhance
information processing in <strong>the</strong> step <strong>of</strong> delivering knowledge and transferring knowledge to short-term
memory. The tool, <strong>the</strong> presenters, and <strong>the</strong> receivers <strong>of</strong> knowledge coordinated in different steps <strong>of</strong>
information processing process. The conceptual and <strong>the</strong>oretical framework was inductively emerged
to knowledge delivery model as shown in Figure 2. Table 1 showed findings <strong>of</strong> how to enhance
information processing in each step.
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Table 1: Findings <strong>of</strong> how to enhance information processing process
Framework How?
Getting receivers' attention Using pictures
Knowledge benefit
Actions <strong>of</strong> <strong>the</strong> presenters
Color
Presenters' characteristics
Knowledge transfer Computer
LCD projector
Knowledge visualization tool
Reference <strong>of</strong> <strong>the</strong> tool
The flow <strong>of</strong> <strong>the</strong> tool and <strong>the</strong> reference
Pictures
Understanding knowledge Presenters recheck understanding
The receivers' effort to understand
Tool and reference are in line
Presenters' characteristics
Knowledge transferred to short-term memory Color
Pictures
Slide presentation
Encoding Taking notes
Summarizing knowledge
Memorizing knowledge
Knowledge transferred to LTM Knowledge linked to schemas
Repeating knowledge
Knowledge retrieval Presenters asking questions
Presenter Characteristics:
Extraversion
Openness
Agreeableness
Conscientiousness
Figure 2: Knowledge delivery model
Knowledge Delivery Model
Get receiver’s
attention
Transfer K. via K.
Vis. Tools
Understand
Knowledge
K. Transferred to
short-term
memory
Encode
K. Transferred to
long-term memory
Retrieve K.
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Tool & Presenter
Tool
Tool & Presenter
Tool
Receiver <strong>of</strong>
knowledge
Presenter
Tool &
Presenter &
Receiver
Presenter
Presenters' characteristics
Gestalt laws
compliance
Germane
cognitive load

Daranee Delorme
O<strong>the</strong>r findings emerged can be grouped into four major parts:
Gestalt laws <strong>of</strong> presentation in <strong>the</strong> content <strong>of</strong> <strong>the</strong> knowledge in <strong>the</strong> tool help reduce extraneous load.
High element interactivity knowledge <strong>of</strong> no more than three knowledge elements can still be
transferred and not create intrinsic cognitive load.
The knowledge visualization tool, <strong>the</strong> presenters, and <strong>the</strong> receivers <strong>of</strong> knowledge have <strong>the</strong>ir parts in
different steps <strong>of</strong> information processing process.
The four characteristics <strong>of</strong> presenter enhance steps <strong>of</strong> attention, comprehension, and knowledge
retrieval.
Extraversion
Openness
Agreeableness
Consciencetiousness
This research contributes to academic knowledge in <strong>the</strong> areas <strong>of</strong> knowledge visualization, knowledge
transfer and delivery, and psychology in <strong>the</strong> aspect <strong>of</strong> cognition. The contribution to <strong>the</strong> academic
<strong>the</strong>ory is discussed.
To knowledge visualization, this research has contributed its findings in <strong>the</strong> instructional design
standpoint that design needs to be in such a way that it encourages <strong>the</strong> audience to achieve
visualization. Past researches have shown that knowledge visualization tools can be perceived
beneficial and can encourage recall (Burkhard and Meier, 2004 and 2005; Eppler, 2006). This
research has shown that knowledge visualization is crucial in different steps in <strong>the</strong> information
processing process <strong>of</strong> <strong>the</strong> receivers. It extends knowledge visualization to be user centric not just in
<strong>the</strong> realm <strong>of</strong> making <strong>the</strong> tool beneficial to <strong>the</strong> users but realizing that <strong>the</strong> tool is important in certain
steps <strong>of</strong> learning though not all. The use <strong>of</strong> color and pictures and gestalt laws <strong>of</strong> presentation has
proved to be efficient in enhancing learning <strong>of</strong> <strong>the</strong> audience. Past researches focused on developing
complex tool to transfer knowledge (Eriksson and Hauer, 2004; Eppler, 2006; Keller, 2006). This
research extends that advanced or existed instructional design needs to be applied to not only
complex visualization tools but also to a simple and familiar tool like slide presentation. Complex tools
might not be needed if <strong>the</strong> learning <strong>of</strong> <strong>the</strong> users cannot be accomplished. From observation and
interview, those constructing instructional material usually ignore <strong>the</strong> fact <strong>of</strong> applying instructional
design rules to a simple tool that is already existed.
To knowledge transfer and delivery, this research has contributed to a complete <strong>the</strong>oretical model <strong>of</strong>
knowledge delivery. This is an extension to knowledge transfer in a new dimension. Past researches
showed knowledge transfer in such a way from creating to disseminating (Nonaka, 1995; Alavi and
Leidner, 2001; Hau and Evangelista, 2007). The findings <strong>of</strong> this research has extended knowledge
transfer in such a way that in order to transfer and deliver knowledge to <strong>the</strong> end-users and make <strong>the</strong>m
use that knowledge to complete <strong>the</strong> task, <strong>the</strong>ir information processing process has to be completed.
By completing <strong>the</strong> process, <strong>the</strong> tools, <strong>the</strong> presenters, and <strong>the</strong> end-users <strong>the</strong>mselves have to be aware
<strong>of</strong> <strong>the</strong> parts <strong>the</strong>y are taking in each step <strong>of</strong> <strong>the</strong> process to instill knowledge into <strong>the</strong>ir long-term
memory in order to be able to retrieve for later use. The tool alone cannot complete <strong>the</strong> process.
Nei<strong>the</strong>r can <strong>the</strong> presenter or <strong>the</strong> receivers <strong>of</strong> knowledge.
To psychology field, this research has contributed in <strong>the</strong> form <strong>of</strong> cognition in <strong>the</strong> aspect <strong>of</strong> information
processing process. It has also extended <strong>the</strong> learning to cognitive load <strong>the</strong>ory. The information
processing process that has been established in earlier research indicated that human minds process
information similar way that computers do (Huitt, 2000). When humans process information, it
happens in a chunk <strong>of</strong> <strong>the</strong> magical number seven plus or minus two (Miller, 1956). This research
extends information processing process <strong>of</strong> human minds that it takes <strong>the</strong> tool, <strong>the</strong> presenters, and <strong>the</strong>
receivers <strong>of</strong> knowledge to complete seven steps <strong>of</strong> processing information into knowledge. It also
confirms <strong>the</strong> magical number seven. Ano<strong>the</strong>r contribution this research extended to is to <strong>the</strong> cognitive
load <strong>the</strong>ory which is still in <strong>the</strong> field <strong>of</strong> psychology. This research has confirmed that to reduce
extraneous load gestalt laws <strong>of</strong> presentation should be applied to even a simple tool like slide
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presentation. It extended that high element interactivity knowledge <strong>of</strong> no more than three knowledge
elements do not create cognitive load and can still be learned.
All <strong>the</strong>se findings extend to literature in <strong>the</strong> field <strong>of</strong> knowledge management, visual representation,
and cognition. This research has extended its findings into business especially in <strong>the</strong> aspect <strong>of</strong> selling
organization and human resources. Organizations that promote learning can apply <strong>the</strong>se findings and
make use <strong>of</strong> <strong>the</strong> knowledge delivery model in order to transfer necessary knowledge efficiently. The
tool found in this research, which is slide presentation, is a common tool used in many organizations.
Personnel who uses it now knows that applying gestalt laws <strong>of</strong> presentation can help in delivering
knowledge across and not add unnecessary cognitive load. This can be very useful to human
resources especially in developing training material.
The finding about <strong>the</strong> characteristics <strong>of</strong> <strong>the</strong> presenters can be applied to trainers <strong>of</strong> <strong>the</strong> organization or
those disseminating knowledge to <strong>the</strong> broader organization. They would know how to act to drive
knowledge to <strong>the</strong> receivers. They would know exactly when to play critical role and how to emphasize
<strong>the</strong> knowledge chunk that <strong>the</strong>y want <strong>the</strong> receivers to remember.
The receivers <strong>of</strong> knowledge in <strong>the</strong> organization would know that <strong>the</strong>y have important role in encoding
knowledge to <strong>the</strong>ir own brains. No one else can help <strong>the</strong>m referring to <strong>the</strong> findings. Whenever <strong>the</strong>
receivers are listening to anything, <strong>the</strong>y have to be responsible for <strong>the</strong>ir own learning in encoding it.
Thus, in business meeting or training, a notebook and a pencil are very important.
For selling organization where knowledge is delivered every month, different types <strong>of</strong> knowledge need
different treatment. Knowledge that has lots <strong>of</strong> pictures and colors are easy to be transferred.
Knowledge that has only texts and has many elements combined toge<strong>the</strong>r like promotion details
needs to be rehearsed and practiced many times in order to be remembered. If promotion is
important, <strong>the</strong>n sellers know that it is worth taking time to rehearse and practice in planning and
selling it.
5. Conclusion
How slide presentation as a knowledge visualization tool enhance information processing has been
studied throughout this research. The results show <strong>the</strong> ‘how’ in each <strong>of</strong> <strong>the</strong> step. They also show that
not only ‘how’ counts in transferring knowledge but also ‘who’. The results show that <strong>the</strong> tool, <strong>the</strong>
presenters, and <strong>the</strong> receivers <strong>of</strong> knowledge have <strong>the</strong>ir parts in each <strong>of</strong> <strong>the</strong> step.
The knowledge visualization tool takes its part in presenting <strong>the</strong> knowledge to <strong>the</strong> receivers and in
transferring knowledge into short-term memory <strong>of</strong> <strong>the</strong> receivers <strong>of</strong> knowledge. The tool opens a big
gateway to <strong>the</strong> receivers’ brain. It gets <strong>the</strong> attention and holds <strong>the</strong> knowledge in <strong>the</strong> short-term
memory for a while before <strong>the</strong> presenters take <strong>the</strong>ir roles.
The presenters <strong>the</strong>n gets <strong>the</strong> attention <strong>of</strong> <strong>the</strong> receivers <strong>of</strong> knowledge and help in making <strong>the</strong>
knowledge understood and passing through to long-term memory. Certain characteristics <strong>of</strong> <strong>the</strong>
presenters are needed here in order to achieve significant knowledge retrieval rate.
The receivers <strong>of</strong> knowledge <strong>the</strong>n take <strong>the</strong>ir parts in instilling knowledge into <strong>the</strong>ir brains while
encoding it.
The findings <strong>of</strong> this research has shared <strong>the</strong> importance <strong>of</strong> <strong>the</strong> tool, <strong>the</strong> presenters, and <strong>the</strong> receivers
<strong>of</strong> knowledge in each <strong>of</strong> <strong>the</strong> step against <strong>the</strong> initial research proposition that <strong>the</strong> tool is taking part in
all <strong>of</strong> <strong>the</strong> step throughout information processing process.
References
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671

Knowledge Management in e-Tourism Curriculum Design:
A Knowledge Supply Chain
Jing Fu 1, 2 , Nopasit Chakpitak 2 , Paul Goldsmith 2 , Pradorn Sureephong 2 and
Taksina Kunarucks 3
1
<strong>International</strong> e-Tourism Research Center, Chengdu University, China
2
College <strong>of</strong> Arts, Media and Technology, Chiang Mai University, Thailand
3
Division <strong>of</strong> Tourism Management <strong>of</strong> Faculty, Humanities, Chiang Mai
University, Thailand
fujingkm@gmail.com
nopasit@camt.info
p.goldsmith@dsl.pipex.com
dorn@camt.info
taksina9@gmail.com
Abstract: The evolution from an information-based to knowledge-based society requires higher education to
transform its intellectual outputs in order to meet market and society needs. Curriculum is a core factor in <strong>the</strong> quality
<strong>of</strong> higher education output and is <strong>the</strong>refore a key part <strong>of</strong> this transformation. In <strong>the</strong> past, practices <strong>of</strong> Knowledge
Management (KM) or Supply Chain Management (SCM) were applied to enhance <strong>the</strong> efficiency and effectiveness
<strong>of</strong> higher education from an administrative standpoint, but have still not reduced <strong>the</strong> gap between higher education
and society needs. This empirical research proposes <strong>the</strong> application <strong>of</strong> a Knowledge Supply Chain (KSC) to
streng<strong>the</strong>n curriculum design and close <strong>the</strong> gap between market need and curriculum provision. This paper
integrates Knowledge Management and Supply Chain Management for <strong>the</strong> first time and applies <strong>the</strong> Supply Chain
Management Reference (SCOR) model to standardize <strong>the</strong> KSC <strong>of</strong> curriculum design. The research utilizes a case
study to investigate, selecting e-tourism curriculum within <strong>the</strong> Greater Mekong Sub-region (GMS). As a key part <strong>of</strong>
<strong>the</strong> national revenue <strong>of</strong> GMS developing countries, e-tourism is seen as crucial in meeting <strong>the</strong> needs <strong>of</strong> sustainable
tourism revenue. This research suggests e-tourism is suffering from an acute shortage <strong>of</strong> pr<strong>of</strong>essionals and
lecturers, mainly because <strong>of</strong> <strong>the</strong> significantly slower lead-time <strong>of</strong> curriculum design compared to <strong>the</strong> development <strong>of</strong>
<strong>the</strong> e-tourism industry. The key research problem analyzed in this paper is how to design and develop a sustainable
e-tourism curriculum. A Knowledge Management System (KMS) is applied to facilitate knowledge flow within <strong>the</strong>
KSC <strong>of</strong> e-tourism curriculum design. Due to <strong>the</strong> nature <strong>of</strong> this research, which deals with both implicit and explicit
knowledge, qualitative research methods were conducted to collect data from <strong>the</strong> e-tourism industry, as well as
curriculum designers and senior university lecturers. The results <strong>of</strong> in-depth interviews are presented, and through
a combination <strong>of</strong> data analysis and comparative study, problems associated with current curriculum design are
clarified. KM and SCM are integrated to propose a conceptual framework, which can solve problems associated
with existing curriculum design. The paper concludes by using a KM framework to advocate a curriculum design
focused not only on curriculum content, but delivery and structure. Potential beneficiaries <strong>of</strong> this research are
university planning and development personnel, lecturers and curriculum developers (particularly those involved
with inter-disciplinary subjects), as well as pr<strong>of</strong>essionals and trainers in <strong>the</strong> industry.
Keywords: knowledge management; knowledge management system; supply chain management; knowledge
supply chain; e-tourism curriculum
1. Introduction and background
Since <strong>the</strong> 1990s, <strong>the</strong>re has been an obvious shift from an information-based economy to a
knowledge-based economy (Davenport 1997). This shift means economic futures will be determined by
people’s ability to wisely use knowledge, as well as maintain and enhance <strong>the</strong>ir knowledge capital in
order to innovate, and improve <strong>the</strong>ir ability to learn and adapt (Psarras 2006). Education is playing an
increasingly important role and is shaped by economic, political, social and technological forces. All
educational institutes must mirror <strong>the</strong> surrounding societal milieu to match <strong>the</strong>ir outputs to demands
(T<strong>of</strong>fler 1970). The ultimate goal <strong>of</strong> higher education is to supply intellectual and technical capital to
meet <strong>the</strong> needs <strong>of</strong> <strong>the</strong> society it serves. As <strong>the</strong> core tool in meeting <strong>the</strong> intended learning outcomes
(Neagley and Evans 1967; Inlow 1966; Johnson 1967), curriculum is <strong>the</strong> key factor to bring changes to
graduates, <strong>the</strong> future knowledge workers. As higher education has become more productive and
business-like in <strong>the</strong> past two decades, it is not surprising that business management techniques have
been promoted as <strong>the</strong> best vehicles for universities to meet <strong>the</strong> challenges associated with <strong>the</strong>se
changes (Ewell 1999). A number <strong>of</strong> business tools have been suggested as ways to streng<strong>the</strong>n
curriculum design, by closing <strong>the</strong> gap between society needs and higher education provision, for
example, Knowledge Management (KM) and Supply Chain Management (SCM). Despite this, higher
education has still been regarded as conservative and slow in its response to market requirements
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(Turki, Duffuaa, Ayar and Demirel 2007), particularly in serving high technology and
knowledge-intensive industries.
This research will focus on how to fill <strong>the</strong> gap between curriculum design in higher education, and <strong>the</strong>
changing needs <strong>of</strong> <strong>the</strong> society it serves by integrating tools <strong>of</strong> Knowledge Management (KM) and
Supply Chain Management (SCM), which to <strong>the</strong> best <strong>of</strong> <strong>the</strong> authors’ knowledge, has never been done
before. A Knowledge Supply Chain (KSC), operated in a Knowledge Management System and
standardized through <strong>the</strong> Supply Chain Operations Reference (SCOR) model, is proposed as a
potential solution to close <strong>the</strong> gap between society needs and university curriculum provision. To test
<strong>the</strong>se tools in designing <strong>the</strong> curriculum, a case study is undertaken in e-tourism education.
2. Methodology
2.1 e-Tourism as a case study
This research selected e-Tourism as a case study, as tourism is crucial for many developing countries,
particularly in <strong>the</strong> Greater Mekong Sub-region (GMS), where tourism dominates a significant part <strong>of</strong> <strong>the</strong>
Gross Domestic Product (GDP) (Asian Development Bank Report 2005). Statistics from <strong>the</strong> World
Tourism Organization (UNWTO 2010) showed that <strong>the</strong> GMS is <strong>the</strong> fastest growing tourism destination
since 2004, bringing much-needed foreign exchange, job creation and contributing substantially to
economic growth. However, due to a lack <strong>of</strong> tourism infrastructure and pr<strong>of</strong>essionals, Tourism Revenue
Leakage (TRL) in GMS countries is a significant issue. In Thailand, 70% <strong>of</strong> all tourism revenue goes to
foreign tourism agencies (UNEP 2010), mainly because <strong>the</strong>se foreign tourism agencies can meet <strong>the</strong>
needs <strong>of</strong> international tourists more effectively, by globally distributing tourism products and services
through high technology and intellectual personnel. Since <strong>the</strong> end <strong>of</strong> <strong>the</strong> last century, foreign agencies,
particularly from developed countries have already experienced <strong>the</strong> evolution from <strong>the</strong> traditional
tourism business model into e-tourism practice (Buhalis 2003), which has significantly enhanced
tourism effectiveness and productivity. Developing e-tourism has already become a crucial strategy for
<strong>the</strong> tourism industry <strong>of</strong> <strong>the</strong> GMS in order to improve competitiveness and reduce TRL. Therefore, GMS
universities must adapt <strong>the</strong>ir tourism curriculum to meet <strong>the</strong> social change and associated needs
brought about by <strong>the</strong> e-tourism revolution.
2.2 Data collection
80% <strong>of</strong> <strong>the</strong> national revenue <strong>of</strong> Thailand comes from tourism. With <strong>the</strong> aim <strong>of</strong> becoming a world-class
destination, Thailand is one <strong>of</strong> <strong>the</strong> most popular tourist destinations in <strong>the</strong> world, which has maintained
a stable increase in <strong>the</strong> number <strong>of</strong> tourists at a rate <strong>of</strong> at least 11% for international arrivals during <strong>the</strong>
past three years (Tourism Authority <strong>of</strong> Thailand 2011). With a ranking in top <strong>the</strong> 20 tourist countries in
<strong>the</strong> world, and <strong>the</strong> top ten Internet-using countries in Asia (Internet World Status 2011), e-tourism
business in Thailand is developing rapidly. As <strong>the</strong> third most popular tourist city after Bangkok and
Phuket, Chiang Mai hosts approximately three million tourists every year, half <strong>of</strong> which are international
tourists (GMS Tourism Report 2010). Chiang Mai University (CMU), one <strong>of</strong> <strong>the</strong> top three universities in
Thailand, is a research-oriented university with <strong>the</strong> mission <strong>of</strong> becoming a comprehensive institution in
Nor<strong>the</strong>rn Thailand for <strong>the</strong> sake <strong>of</strong> social and economic development <strong>of</strong> <strong>the</strong> region and <strong>the</strong> country as a
whole. CMU possesses significant potential to develop e-tourism education and close <strong>the</strong> gap between
curriculum provision and industry needs, by streng<strong>the</strong>ning its e-tourism curriculum design.
College <strong>of</strong> Arts, Media and Technology (CAMT) at CMU has been involved in e-tourism practice and
Knowledge Management (KM) research since 2003 and is one <strong>of</strong> 11 partner research institutes in <strong>the</strong>
Erasmus Mundus Action 2-sustainable e-tourism project (2010-2014). Compared with o<strong>the</strong>r
conventional tourism schools, CAMT has priorities and advantages in technology and an international
research background. In 2009, CAMT started an e-tourism elective program for undergraduates
majoring in Modern Management and Information Technology (MMIT) and had a long-term partnership
with Uniserv, a university-affiliated hotel. In terms <strong>of</strong> e-tourism curriculum design, planning took place
with relevant departments and personnel, known as e-Tourism Communities <strong>of</strong> Practice (CoP).
Well-equipped with e-tourism strategy and personnel, CAMT was selected as <strong>the</strong> most appropriate unit
to conduct <strong>the</strong> fieldwork in this research. In order to identify <strong>the</strong> current situation <strong>of</strong> e-tourism education,
a thorough investigation and a benchmark were made both within and outside Thailand.
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2.3 In-depth interviews at two universities within Chiang Mai and external
benchmarking
In-depth interview is one <strong>of</strong> <strong>the</strong> most extensively used methods <strong>of</strong> data collection (Bryman & Burgess
1999) and <strong>the</strong> interviewees in this research went through semi-structured interviews involving
face-to-face questioning, emails and telephone dialogues. Due to <strong>the</strong> nature <strong>of</strong> this research, which
utilized both explicit and tacit knowledge flow in <strong>the</strong> curriculum, empirical research based on a
qualitative method was considered <strong>the</strong> most appropriate methodology to address <strong>the</strong> research
objectives.
In-depth interviews were conducted with pr<strong>of</strong>essionals from <strong>the</strong> tourism industry, as well as academics
and students from two universities in Chiang Mai (Chiang Mai University and Payap University). From
<strong>the</strong> tourism industry, six middle managers were chosen for interview, representing all <strong>the</strong> pr<strong>of</strong>essionals
available within CMU’s affiliated hotel. In terms <strong>of</strong> lecturers and curriculum designers, eight and four
were chosen respectively meaning all full-time lecturers and curriculum designers from both Chiang Mai
and Payap University were represented in <strong>the</strong> interviews. Finally 20 students from Chiang Mai and
Payap University were interviewed which amounted to all available students studying e-tourism as
electives or tourism majors who had just completed <strong>the</strong>ir cooperative education program. The aim and
justification in selecting interview respondents was to ensure everyone involved in e-tourism-based
courses, as well as all those working in <strong>the</strong> affiliated hotel were questioned. CMU is <strong>the</strong> first government
university in Nor<strong>the</strong>rn Thailand and Payap is <strong>the</strong> first private university in Thailand, both <strong>of</strong> which have a
comparatively good reputation for <strong>the</strong>ir tourism graduates. Targeting tourism pr<strong>of</strong>essionals allows a
better understanding <strong>of</strong> <strong>the</strong> changing needs <strong>of</strong> <strong>the</strong> industry, and <strong>the</strong>ir expectations from e-tourism in
higher education. The findings from interviews with tourism pr<strong>of</strong>essionals were compared with in-depth
interviews conducted among academics and students in <strong>the</strong> two universities. Open-ended questions
were asked with a focus on <strong>the</strong> impact factors contributing to <strong>the</strong> gap between society needs and
curriculum provision. The interviews also investigated <strong>the</strong> experience <strong>of</strong> knowledge provision and
sharing through questions formulated from a review <strong>of</strong> <strong>the</strong> academic literature and key informants’
advice, which assisted in question selection and phrasing. The details associated with <strong>the</strong>se in-depth
interviews are described in Figure 1.
Figure 1: The type and size <strong>of</strong> data collected and <strong>the</strong> corresponding reasons for collection
Curriculum documentation (e.g. curriculum standards, requirements, philosophy, processes,
objectives) was also used in data collection, as it serves to illuminate many aspects <strong>of</strong> an organization
(Cassell and Symon 1994). A review <strong>of</strong> documents is an unobtrusive method to portray <strong>the</strong> values and
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beliefs <strong>of</strong> participants in <strong>the</strong> research setting (Marshall and Rossnan 1991). Following collection <strong>of</strong> data,
<strong>the</strong>re was a need to benchmark <strong>the</strong> existing e-tourism curriculum in <strong>the</strong> study with o<strong>the</strong>r e-tourism
curriculua, both inside and outside <strong>of</strong> <strong>the</strong> GMS area.
Emails and telephone interviews were conducted with six o<strong>the</strong>r universities in Thailand. Curriculum
comparison and analyses were also made by collecting e-tourism curriculum information from <strong>the</strong>
Internet among 11 universities in America, Europe and Asia. These universities were selected based on
<strong>the</strong>ir comparatively good reputation (determined from citations in research papers), and <strong>the</strong>ir tourism
graduates or e-tourism research. These universities are listed in Figure 2.
Figure 2: Benchmarking between e-tourism curriculum provision in GMS areas and international
universities with a known e-tourism reputation.
From <strong>the</strong> data collection and benchmarking, it was found that no university in Thailand provides
e-tourism curriculum as an independent discipline. Although significant progress has been made in
America (e.g. Cornell University), Europe (e.g. Bournemouth University) and Asia (e.g. Hong Kong
Polytechnic University), <strong>the</strong> gap between tourism curriculum provision and society needs has not been
closed, particularly in Thailand.
3. Findings
The data collected were analyzed through content analysis. The investigation and in-depth interviews
identified three main problems. Problem one is a lack <strong>of</strong> knowledge provision and sharing and is
believed to directly influence problems two and three. The second problem is <strong>the</strong> long lead-time for <strong>the</strong>
process <strong>of</strong> curriculum design and implementation, which directly results in <strong>the</strong> mismatch between
society needs and curriculum provision. The third problem is that a disconnect exists between
curriculum designer and curriculum operator, which separates planning curriculum content from
industrial methods (Forrest et.al 2006). These problems are shown in Figure 3.
As identified in Figure 3, <strong>the</strong> lack <strong>of</strong> knowledge provision and sharing is <strong>the</strong> most <strong>of</strong>ten mentioned factor
in designing an effective curriculum. Long lead-time is ano<strong>the</strong>r important reason which contributes to
<strong>the</strong> gap between society needs and curriculum provision. The third problem identifies four senior
lecturers/ curriculum designers who believed <strong>the</strong>re was a disconnect between curriculum designers and
operators.
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Figure 3: Data analyses <strong>of</strong> <strong>the</strong> in-depth interview with three actors <strong>of</strong> curriculum design, namely
pr<strong>of</strong>essionals from <strong>the</strong> industry, academics and senior students from <strong>the</strong> university
4. Proposed solutions
Research solutions will focus on <strong>the</strong> lack <strong>of</strong> knowledge provision and sharing, and <strong>the</strong> long lead-time <strong>of</strong>
<strong>the</strong> curriculum implementation, as <strong>the</strong>se problems are considered to directly cause <strong>the</strong> third problem
(disconnect between curriculum designers and operators).
Curriculum research and development should bring changes to students and an improvement <strong>of</strong>
teachers (Stenhouse 1975). This intellectual growth depends on a systematic and contingent
interaction between teaching and learning, as well as <strong>the</strong> management <strong>of</strong> knowledge demand and
supply. This is inextricably linked to curriculum design.
Although Knowledge Management and Supply Chain Management have been proved efficient in higher
education and curriculum design (e.g. Deans and O’Brien 1996; Dealtry 2000; Yen 2005; Petrides &
Nguyem 2006; Davenport 1997; Lyman 2000), limitations are still found. Practitioners (e.g.
Thitithananon and Klaewthanong 2007) claim <strong>the</strong>re are three aspects which make hard to classify and
assess knowledge in curriculum design:
<strong>the</strong> social network and communities <strong>of</strong> practice for curriculum are difficult to reach
<strong>the</strong> time to revise and update curriculum takes at least three to five years
it is complicated and time-consuming to apply KM to <strong>the</strong> whole process <strong>of</strong> curriculum design.
Practices to improve <strong>the</strong> efficiency and competitiveness <strong>of</strong> higher education have so far been limited to
a piecemeal approach using ei<strong>the</strong>r KM or SCM in isolation. To <strong>the</strong> best knowledge <strong>of</strong> <strong>the</strong> authors <strong>of</strong> this
paper, no work has been done to integrate both.
In this research, it is suggested that curriculum design is treated as a product, with <strong>the</strong> process <strong>of</strong>
curriculum design and development simulated as a supply chain from <strong>the</strong> knowledge supplier (<strong>the</strong>
university) to <strong>the</strong> knowledge user (<strong>the</strong> industry). This paper proposes a Knowledge Supply Chain
(KSC), which covers <strong>the</strong> whole process <strong>of</strong> how knowledge is planned, supplied, made, delivered and
returned in a curriculum. Based on <strong>the</strong> features and elements <strong>of</strong> <strong>the</strong> supply chain and <strong>the</strong> integration <strong>of</strong>
knowledge management, <strong>the</strong> authors define <strong>the</strong> knowledge supply chain as, “<strong>the</strong> knowledge flow and
management process in <strong>the</strong> cycle <strong>of</strong> design, implementation, and maintenance from suppliers to
end-users”. To efficiently manage <strong>the</strong> knowledge supply chain, two tools are integrated in this research;
a KMS and SCOR model. KSC aims to improve knowledge provision and sharing and <strong>the</strong> SCOR model
facilitates knowledge flow in <strong>the</strong> process <strong>of</strong> curriculum design to shorten <strong>the</strong> lead-time <strong>of</strong> curriculum
implementation.
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4.1 Knowledge management systems (KMSs)
A knowledge management system (KMS) was established at CAMT in 2004, and has been run as a
platform for knowledge provision and sharing. This system uses Micros<strong>of</strong>t SharePoint as a web front
end that processes HTTP requests to <strong>the</strong> server and a dedicated Micros<strong>of</strong>t SQL server for data storage.
Ten Communities <strong>of</strong> Practice (CoPs) were structured and framed in e-tourism curriculum design and
developed in <strong>the</strong> KMS which functions as a knowledge warehouse to facilitate knowledge provision and
sharing among pr<strong>of</strong>essionals, researchers and lecturers, as shown in Figure 4.
Figure 4: A KMS for e-tourism curriculum design and its ten CoPs
The KMS along with its 10 CoPs will significantly improve <strong>the</strong> development <strong>of</strong> e-tourism curriculum
among pr<strong>of</strong>essionals, industries, and academics as well as o<strong>the</strong>r e-tourism experts and researchers.
These ten CoPs can be categorized into three groups (Knoco 2011), including:
a community for knowledge creation, which is a small community <strong>of</strong> experts or researchers (less
than 20 people) assigned membership by pooling disparate knowledge to look for new ideas and
knowledge through discussion and dialogue;
a community <strong>of</strong> practice, which consists <strong>of</strong> a core <strong>of</strong> experts who cover reasonably well established
knowledge with assigned roles to build assets and define standards, and to seek best practice;
A community <strong>of</strong> capability stewardship, which has a few subject matter experts, assigned to <strong>the</strong>
community to maintain and update <strong>the</strong> standards through training, including coaching as well as
monitoring how standards are applied.
These CoPs can link members to <strong>the</strong> strategic knowledge domains, develop core competencies
through collaboration and learning, provide common development needs, distribute functional
expertise, and facilitate cross-generational/ cross-functional exchange <strong>of</strong> knowledge sharing (Saint and
Wallence, 2003). The 10 CoPs identified in this research and <strong>the</strong>ir corresponding components are
described in Figure 5.
4.2 Supply Chain Operations Reference (SCOR) model
SCOR model was applied to capture <strong>the</strong> knowledge supply chain in <strong>the</strong> implementation phase <strong>of</strong>
curriculum design. The SCOR model is proposed in this research as it provides a globally accepted and
standardized description for any management and production process by utilizing standard metrics to
measure process performance. Once a management process is captured in <strong>the</strong> SCOR model, it can be
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implemented purposefully to achieve competitive advantage, and to measure, manage, control, tune
and re-tune for a specific purpose (Supply Chain Council 2011)
Figure 5: The ten CoPs for e-tourism curriculum design as designated within <strong>the</strong> KMS
Through <strong>the</strong> integration <strong>of</strong> KMS with <strong>the</strong> SCOR model, this research proposes a knowledge supply
chain <strong>of</strong> e-tourism curriculum to solve <strong>the</strong> two major problems identified in e-tourism curriculum design,
as shown in Figure 6.
Figure 6: A SCOR model for a KSC operated on a KMS, <strong>the</strong> ten CoPs are identified earlier in Figure 5
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As Figure 6 shows, <strong>the</strong> model itself is organized around <strong>the</strong> five primary processes <strong>of</strong> Plan, Source,
Make, Deliver and Return which encompass all interactions from knowledge supplier to knowledge user
in <strong>the</strong> process <strong>of</strong> curriculum design, implementation and development. In order to solve <strong>the</strong> problem <strong>of</strong>
<strong>the</strong> long lead-time <strong>of</strong> e-tourism curriculum design, curriculum CoPs were allocated to one <strong>of</strong> <strong>the</strong>se five
processes. Some CoPs may overlap, for example, <strong>the</strong> CoP <strong>of</strong> e-tourism research is rooted in each step
<strong>of</strong> <strong>the</strong> knowledge supply chain, which is very helpful for <strong>the</strong> same group <strong>of</strong> researchers to record, trace
and supervise <strong>the</strong> whole process <strong>of</strong> curriculum design and development. Ano<strong>the</strong>r example is <strong>the</strong> CoP
for customer knowledge, which is placed into three steps, namely Plan, Source and Return. This is to
avoid <strong>the</strong> disconnect between industry requirements and university provision.
From <strong>the</strong> knowledge supply chain, knowledge suppliers such as curriculum designers, experts and
researchers, as well as pr<strong>of</strong>essionals will be more aware <strong>of</strong> <strong>the</strong> overall holistic process <strong>of</strong> knowledge
flow and <strong>the</strong> interactions between each <strong>of</strong> <strong>the</strong> five processes identified in Figure 6. KMS will facilitate <strong>the</strong>
information and knowledge flow to shorten <strong>the</strong> lead-time <strong>of</strong> <strong>the</strong> curriculum. In this way, <strong>the</strong> core
problem, namely <strong>the</strong> lack <strong>of</strong> knowledge provision and sharing, will be solved by <strong>the</strong> communication and
activities <strong>of</strong> <strong>the</strong> CoPs via <strong>the</strong> KMS. As a result, <strong>the</strong> CoPs and <strong>the</strong> KMS should help GMS developing
countries in meeting e-tourism industry needs through an effectively designed higher education system.
5. Conclusion
This research has proposed a knowledge supply chain, which is defined as <strong>the</strong> knowledge flow and its
operating process in <strong>the</strong> circle <strong>of</strong> design, implementation, and maintenance from suppliers to <strong>the</strong>
end-users. In managing this knowledge supply chain, knowledge management and supply chain
management are integrated for <strong>the</strong> first time. This knowledge supply chain is standardized by <strong>the</strong> SCOR
model and split into five essential processes; namely: plan, source, make, deliver and return. A case
study in e-tourism, a new and multidisciplinary field in <strong>the</strong> GMS was selected because tourism
dominates <strong>the</strong> national revenue <strong>of</strong> <strong>the</strong>se developing countries. To solve <strong>the</strong> two major problems found
in <strong>the</strong> investigation, namely <strong>the</strong> long lead time <strong>of</strong> <strong>the</strong> curriculum and <strong>the</strong> lack <strong>of</strong> knowledge provision and
sharing, a SCOR model was applied within a KMS as a powerful tool to facilitate knowledge flow in <strong>the</strong>
KSC <strong>of</strong> e-tourism curriculum implementation. This research is <strong>the</strong> first step in using a KSC in e-tourism
curriculum design and development, and ultimately can help developing countries such as Thailand to
avoid TRL by improving e-tourism curriculum provision with <strong>the</strong> aim <strong>of</strong> meeting industry needs.
While this research has potential, <strong>the</strong>re are also limitations, which should be considered and built upon
in developing future research. The key limitations are: a lack <strong>of</strong> survey respondents, a lack <strong>of</strong> interaction
with industry, a short timescale with no chance for evaluation <strong>of</strong> <strong>the</strong> knowledge supply chain or SCOR
model and a restriction in geographic area. These limitations will be addressed in future research to
provide a more generalized model <strong>of</strong> curriculum as a knowledge supply chain.
Acknowledgements
This research was conducted at <strong>the</strong> College <strong>of</strong> Arts, Media and Technology (CAMT), Chiang Mai
University, Thailand. The authors are very grateful to all <strong>the</strong> interviewees, without <strong>the</strong>ir patience and
honesty, this research could never been conducted. Many thanks to Miss May KyawOo, who helped
address technical problems. Lastly, <strong>the</strong> authors <strong>of</strong>fer sincere thanks to <strong>the</strong> Graduate School and CAMT,
Chiang Mai University, who supported this research through both policy and finance.
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680

Knowledge Sharing in Ego-Centered Knowledge Networks
<strong>of</strong> Pr<strong>of</strong>essionals: Role <strong>of</strong> Transactive Memory, Trust, and
Reciprocity
Mahmood Ghaznavi, Martin Perry, Keri Logan and Paul Toulson
School <strong>of</strong> Management, Massey University, New Zealand
M.Ghaznavi@massey.ac.nz
M.Perry@massey.ac.nz
K.A.Logan@massey.ac.nz
P.Toulson@massey.ac.nz
Abstract: Today’s pr<strong>of</strong>essionals while dealing with complex problems collaborate with colleagues to discover
prompt and innovative solutions. In response to <strong>the</strong> need for speedy knowledge collaboration, pr<strong>of</strong>essionals <strong>of</strong>ten
rely on <strong>the</strong>ir ego-centered (i.e. personal) knowledge networks. Ego-centered knowledge networks are ties that
develop through work-related interactions and/or pr<strong>of</strong>essional associations. Such ties exist irrespective <strong>of</strong> <strong>the</strong>
organizational boundaries and formal structures and create when people work toge<strong>the</strong>r, carry out projects
mutually; attend joint trainings or workshops, participate in <strong>the</strong> activities <strong>of</strong> pr<strong>of</strong>essional communities, and so on
and so forth. Studies have indicated positive contribution <strong>of</strong> personal knowledge networking in fostering cooperative
learning and improving problem-solving capabilities <strong>of</strong> individuals. None<strong>the</strong>less, literature on
information and knowledge sharing widely discussed such knowledge sharing activities in collocated teams and
within organizational boundaries. Many contemporary knowledge management researchers, however, are <strong>of</strong> <strong>the</strong>
view that knowledge cannot be constrained within boundaries and structures and that most new knowledge lies
outside organizational boundaries. In search <strong>of</strong> non-redundant and specialist knowledge, employees develop adhoc
knowledge collaboration with colleagues, in <strong>the</strong>ir relevant pr<strong>of</strong>essions and knowledge domains, regardless <strong>of</strong>
<strong>the</strong> time and space constraints. Knowledge can be defined as <strong>the</strong> know-how or expertise that is mainly
possessed by humans. The way to knowledge is via connecting to people who know or who know whom to
contact for a specific problem solution. In today’s knowledge economy, <strong>the</strong>re is a crucial need to pay attention to
<strong>the</strong> fast, reliable, and economic sources <strong>of</strong> knowledge that can help knowledge workers to quickly resolve
complex problems at work. While addressing this need, knowledge management research has largely discussed
knowledge sources that exist within organizational boundaries and that can be arranged through formal
structures and organizational mechanisms. So far, little is known how knowledge is mediated through personal
interactions and informal communication between knowledge workers who belong to similar pr<strong>of</strong>essions but work
in different organizations and work settings. In fact, evidence from some <strong>of</strong> <strong>the</strong> knowledge-intensive pr<strong>of</strong>essions,
such as, bio-technology, information and communication technology, s<strong>of</strong>tware development, and so on, suggest
that personal connections between knowledge workers provide significant opportunities to access specialized
knowledge. In <strong>the</strong>se pr<strong>of</strong>essions, interactions between knowledge workers are not constrained by <strong>the</strong> boundaries
and formal structures. Although social networking studies have highlighted <strong>the</strong> significance <strong>of</strong> informal
knowledge sharing, little is known about how pr<strong>of</strong>essionals deal with <strong>the</strong> opportunities and complexities <strong>of</strong>
knowledge collaboration that exist within <strong>the</strong>ir ego-centered knowledge networks. Knowledge management
scholars have discussed <strong>the</strong> use <strong>of</strong> transactive memory (i.e. who knows what) in determining <strong>the</strong> locus <strong>of</strong>
expertise to solve a problem. Information and knowledge sharing literature focus on trust to manage individual
concerns and <strong>the</strong> risks involved in informal information or know-how exchange. Informal know-how trading
literature highlighted reciprocity to foster useful knowledge exchange relationships; in <strong>the</strong> absence <strong>of</strong> formal
knowledge sharing structures and mechanisms. Combining <strong>the</strong>se, this paper argues that transactive memory,
trust, and reciprocity can provide necessary conditions to allow knowledge workers to collaborate freely and
share <strong>the</strong>ir know-how and expertise in <strong>the</strong>ir ego-centered knowledge networks.
Keywords: ego-centered knowledge networks, knowledge management, knowledge sharing, transactive
memory systems, trust, reciprocity
1. Introduction
Knowledge creation in this fast changing world makes it impossible for an individual to possess all
relevant and up-to-date knowledge. Knowledge sharing research indicates that personal ties and
informal interaction between knowledge workers can provide significant opportunities to access
specialized knowledge to solve complex (i.e. non-routine) problems at work. In many knowledge
intensive pr<strong>of</strong>essions, knowledge workers develop and maintain ties with o<strong>the</strong>r knowledge experts
and exploit <strong>the</strong>m into ad-hoc knowledge collaboration (Cross et al., 2002, Cross et al., 2001). Such
personal connections are known as ego-centered knowledge networks; since <strong>the</strong>se evolve around
individuals (‘<strong>the</strong> egos’) through prior interactions and/or work associations (Cummings, 2004, Cross
and Sproull, 2004). Informal communication between knowledge workers has been recognized as an
important source <strong>of</strong> searching and acquiring specialized knowledge (Constant et al., 1996,
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Mahmood Ghaznavi et al.
Granovetter, 2005, Hansen, 1999, Levin and Cross, 2004, Hansen, 2002). Evidence <strong>of</strong> informal
knowledge sharing networks can be found in pr<strong>of</strong>essions, like, biotechnology, information and
communication technology, research and development, management consultancy, etc. (Jason and
Powell, 2004, Cross et al., 2001, Cross and Sproull, 2004, Lee and Cole, 2003). In <strong>the</strong>se pr<strong>of</strong>essions,
knowledge workers frequently seek advice from colleagues irrespective <strong>of</strong> <strong>the</strong> organizational
constraints and formal structures.
Modern organizations can be viewed as knowledge creating entities that allow networked individuals
to work collaboratively with peers in order to resolve complex problems and discover innovative
solutions (Maier, 2004, Dutton, 2008). In <strong>the</strong>se organizations, knowledge workers develop and
maintain ties with colleagues, in relevant knowledge domains, for collaborative learning and joint
problem solving. These networks continue to grow as knowledge workers extend pr<strong>of</strong>essional
associations through job mobility, working in different projects, attending trainings and seminars, and
joining pr<strong>of</strong>essional networks and communities. Many empirical studies have identified <strong>the</strong> role <strong>of</strong>
personal connections <strong>of</strong> knowledge workers in collaborative learning and collective invention, for
example, (Assimakopoulos and Yan, 2006, Jason and Powell, 2004, Schrader, 1991, Wasko et al.,
2004, Walter et al., 2007). None<strong>the</strong>less, KM research has concentrated on <strong>the</strong> knowledge creation
and integration activities within organizational boundaries and through formal knowledge sharing
structures, example include, (Grant, 1996, Nonaka et al., 2000, Nonaka and Takeuchi, 1995).
Informal knowledge sharing by means <strong>of</strong> personal communication and informal interaction between
knowledge workers has also been largely observed within organizational boundaries (Cummings and
Cross, 2003, Cummings, 2004, Hansen, 2002, Cross et al., 2001, Reagans and McEvily, 2003, Cross
and Sproull, 2004). Knowledge creation through informal and boundary spanning communication and
interaction <strong>of</strong> employees has received less attention in <strong>the</strong> KM literature. Little is known how, why,
and on what basis, knowledge is shared, transferred, and integrated among people who belong to
different organizations and work contexts but still collaborate for sharing knowledge.
Personal connections <strong>of</strong> knowledge workers can arrange non-redundant information and latest knowhow
(currently not available within <strong>the</strong> organization) that can help in solving problems and developing
innovative processes or products (Fleming and Frenken, 2007, von Hippel and von Krogh, 2003, Lee
and Cole, 2003, Teigland and Wasko, 2003, Levin and Cross, 2004). However, <strong>the</strong>re is not enough
understanding why individuals tend to share knowledge with colleagues outside <strong>of</strong> <strong>the</strong> organizational
boundaries and how do <strong>the</strong>y manage various issues and complexities that are involved in such
interactions. The conceptual framework presented in this paper is based on a review <strong>of</strong> <strong>the</strong> personal
information and knowledge sharing literature. It highlight <strong>the</strong> role <strong>of</strong> transactive memory, trust, and
reciprocity in managing individuals’ concerns and enabling informal knowledge sharing relationships
within ego-centered knowledge networks <strong>of</strong> pr<strong>of</strong>essionals. Transactive memory specifies “who
specializes in what” and can help in finding <strong>the</strong> locus <strong>of</strong> expertise to solve a problem. Trust has been
seen as an essential antecedent by KM researchers in developing knowledge exchange relationships
in <strong>the</strong> absence <strong>of</strong> formal knowledge sharing mechanisms. As such, it helps in managing individuals’
concerns and <strong>the</strong> risks involved in informal knowledge sharing. Informal know-how trading literature
highlighted reciprocity (i.e. receiving and returning favours) in developing stronger sense <strong>of</strong> mutual
obligations that can foster useful knowledge collaboration. The paper posits that transactive memory,
trust, and reciprocity create informal structures within ego-centered knowledge networks <strong>of</strong>
pr<strong>of</strong>essionals that allow <strong>the</strong>m to collaborate freely and share <strong>the</strong>ir know-how and expertise.
2. Theoretical background and conceptual framework
Empirical findings in <strong>the</strong> US steel and semi-conductor industries revealed that knowhow transfer
through personal interaction <strong>of</strong> knowledge workers played a key role in technical problem solving and
collective invention (Saxenian, 1994, Schrader, 1991, von Hippel, 1987). These studies found that
collaborative learning was <strong>the</strong> main motive behind informal interactions and know-how exchange
between employees <strong>of</strong> different firms. These studies suggested that, under certain conditions,
informal knowledge sharing through personal interactions <strong>of</strong> knowledge workers can work better than
formal knowledge transfer mechanisms, such as, contractual agreements, licensing, joint ventures,
collaborative R&D, and knowledge markets. This notion <strong>of</strong> informal knowledge collaboration has been
reiterated by many KM researchers who are <strong>the</strong> view that direct and informal communication between
knowledge workers can provide faster, reliable, and economic ways <strong>of</strong> transferring specialized
knowledge (von Hippel and von Krogh, 2003, Lee and Cole, 2003, Fleming and Frenken, 2007,
Teigland and Wasko, 2003, Levin and Cross, 2004). This is why, searching, acquiring, and integrating
knowledge by means <strong>of</strong> informal personal networking could be an important area <strong>of</strong> research for
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Mahmood Ghaznavi et al.
organizational KM researchers. Recent KM studies have highlighted <strong>the</strong> utility <strong>of</strong> boundary spanning
knowledge seeking activities <strong>of</strong> knowledge workers in problem solving and creating specialised
knowledge through collaborative learning (Cross and Sproull, 2004, Lee and Cole, 2003, Jarvenpaa
and Majchrzak, 2008).
The network perspective <strong>of</strong> KM describes <strong>the</strong> role <strong>of</strong> social networking in information seeking and
knowledge transfer (Salvatore, 2007, Borgatti and Cross, 2003, Kilduff and Brass, 2010). KM
research focuses on structural and relational aspects <strong>of</strong> personal ties that can contribute to informal
knowledge collaboration. Structural characteristics define how relationships are connected
(Cummings and Cross, 2003, Cummings, 2004), and who calls whom for advice (Granovetter, 2005);
whereas relational characteristics refer to <strong>the</strong> extent <strong>of</strong> trust and trustworthiness in <strong>the</strong> receipt <strong>of</strong>
useful knowledge (Hansen, 1999, Levin and Cross, 2004, Szulanski, 2000, Tsai and Ghoshal, 1998).
Never<strong>the</strong>less, <strong>the</strong>re is little understanding <strong>of</strong> <strong>the</strong> attributes <strong>of</strong> personal networks that can affect
knowledge sharing behaviour <strong>of</strong> pr<strong>of</strong>essionals. Recent research suggests that informal knowledge
collaboration depends upon: knowing (i.e. “who knows what”) (Brandon and Hollingshead, 2004,
Lewis et al., 2005); accessibility (whe<strong>the</strong>r <strong>the</strong> person is willing to share knowledge) (Borgatti and
Cross, 2003, Chiu et al., 2006, Reagans and McEvily, 2003), and; managing <strong>the</strong> risks involved in
transferring information/knowledge (Hansen, 1999, Schrader, 1995, Cross et al., 2001). However, <strong>the</strong>
broader question still remains unanswered, that is, how people who know could be connected and
what would be <strong>the</strong> appropriate conditions to develop effective information and knowledge
collaboration among <strong>the</strong>m.
An ego-centered/personal knowledge network develops through frequent communication and
interactions between knowledge workers; who belong to similar pr<strong>of</strong>essions but not necessarily
working in one organization. Knowledge sharing in <strong>the</strong> ego-centered networks can be defined as <strong>the</strong>
process <strong>of</strong> transferring and acquiring information or technical know-how by means <strong>of</strong> informal
personal communication. KM scholars have found that personal connections between knowledge
workers can play an important role in <strong>the</strong> sharing and dissemination <strong>of</strong> related knowledge to <strong>the</strong>
intended users (Borgatti and Cross, 2003, Cross et al., 2001, Reagans and McEvily, 2003, Pyka,
1997). While individuals in an ego-centered network belong to different organizations, it is certainly
difficult to predict and manage <strong>the</strong> issues involved in knowledge collaboration, such as, finding <strong>the</strong>
locus <strong>of</strong> expertise for a specific problem solution, individuals’ motives that may harm or damage <strong>the</strong>
interests <strong>of</strong> <strong>the</strong> o<strong>the</strong>r party or <strong>the</strong> risk <strong>of</strong> opportunistic behaviour that may cause losing <strong>of</strong> one’s own
competitive advantage, willingness to collaborate for sharing knowledge and give away one’s own
knowledge. Individuals must respond to and manage <strong>the</strong>se issues while intending to exploit
information and knowledge collaboration opportunities by means <strong>of</strong> <strong>the</strong>ir personal networking. The
subsequent sections <strong>of</strong> this paper illustrate how transactive memory, trust, and transactive memory
work in coordination to resolve <strong>the</strong>se issues and create informal structures to support information and
knowledge collaboration within ego-centered networks <strong>of</strong> pr<strong>of</strong>essionals.
2.1 How could transactive memory work in ego-centered networks
Transactive memory is a group-level concept that facilitates task performance through coordination
and communication. Transactive Memory Systems (TMS) is a relational system <strong>of</strong> interdependence in
which specialist group members rely on each o<strong>the</strong>rs’ competencies in order to complete a joint task
(Wegner, 1987). The transactive memory construct focuses on integrating distributed expertise by
valuing and optimizing <strong>the</strong> knowledge and expertise <strong>of</strong> a group <strong>of</strong> people (Jackson and Klobas, 2008,
Lewis et al., 2005). Transactive memory researchers identify three main indicators for <strong>the</strong>
development <strong>of</strong> TMS in a group. These are: 1) individual specialization; 2) competence-based trust;
and, 3) expertise coordination (Brandon and Hollingshead, 2004, Lewis et al., 2005, Moreland and
Myaskovsky, 2000). Several organizational researchers have demonstrated a positive relationship
between TMS development and individuals working in groups to achieve shared goals (Brandon and
Hollingshead, 2004, Cross and Sproull, 2004, Oshri et al., 2008, Lewis et al., 2005). These scholars
defined TMS as a combination <strong>of</strong> knowledge specialization, knowledge stock, and knowledge
coordination in order to achieve task performance collectively.
TMS researchers focus on knowledge and expertise coordination among members <strong>of</strong> groups that
have task interdependence. This is why, transactive memory construct has been mainly studied within
collocated teams and organizational group members, exceptions include: (Anand et al., 1998,
Jarvenpaa and Majchrzak, 2008). Jarvenpaa and Majchrzak (2008), in <strong>the</strong>ir recent study, explored <strong>the</strong>
development <strong>of</strong> TMS in ego-centered networks <strong>of</strong> national security pr<strong>of</strong>essionals. They found that
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TMS could develop in <strong>the</strong> absence <strong>of</strong> current interdependencies as members assume future
opportunities <strong>of</strong> collaboration. Jarvenpaa and Majchrzak (2008) fur<strong>the</strong>r indicated that conflicting
interests <strong>of</strong> <strong>the</strong> parties may hinder effective knowledge collaboration among pr<strong>of</strong>essionals. These
conflicts are reflected in mixed-motives (i.e. incongruent goals) and knowledge sharing/protection
tension (i.e. whe<strong>the</strong>r knowledge sharing may or may not harm <strong>the</strong>ir own interests or <strong>the</strong>ir firms’
interest). This study will fur<strong>the</strong>r investigate <strong>the</strong>ir claim that TMS exist in <strong>the</strong> ego-centered networks <strong>of</strong>
pr<strong>of</strong>essionals; who belong to different organizations and work context. However, in order to develop
useful knowledge collaboration among pr<strong>of</strong>essionals in <strong>the</strong> absence <strong>of</strong> interdependence and
congruent goals; <strong>the</strong> issues <strong>of</strong> conflicting interests, unpredictable behaviour, and unwillingness to
share need to be adequately managed.
2.2 How trust can build knowledge exchange relationships in ego-centered networks
KM scholars have identified <strong>the</strong> fear <strong>of</strong> opportunistic behaviour (i.e. misappropriation) (Tripsas et al.,
1995), and unintended disclosure <strong>of</strong> sensitive information (i.e. who to share and what to share)
(Hannah, 2004, Schrader, 1995) as major issues in sharing knowledge through informal personal
communication. In this context, trust is frequently claimed to be an essential precursor in developing
informal knowledge exchange relationships between knowledge workers. Trust can be seen as an
important antecedent <strong>of</strong> intellectual capital exchange as it enables risk taking and develops goodwill
about <strong>the</strong> behaviour <strong>of</strong> <strong>the</strong> o<strong>the</strong>r party, in <strong>the</strong> absence <strong>of</strong> <strong>the</strong> ability to directly monitor or control <strong>the</strong>
activities <strong>of</strong> o<strong>the</strong>rs (Tsai and Ghoshal, 1998, Mayer et al., 1995). Trust can be viewed as an
individual's expectation about <strong>the</strong> behaviour <strong>of</strong> <strong>the</strong> o<strong>the</strong>r party that it will follow certain values, norms,
and principles (McEvily et al., 2003, Abrams et al., 2003, Kramer and Cook, 2004). Trust eliminate
fears <strong>of</strong> misconduct and opportunistic behaviours (Jarvenpaa and Majchrzak, 2008), and create
essential conditions for effective knowledge collaboration (Kramer and Cook, 2004, Abrams et al.,
2003). However, KM scholars think that trust is a multi-dimensional construct and that <strong>the</strong>re may be
different types <strong>of</strong> trust in varying contexts. It is, <strong>the</strong>refore, important to understand <strong>the</strong> relationship
between different types <strong>of</strong> trust in relation to <strong>the</strong> knowledge sharing behaviours <strong>of</strong> individuals. Table 1
below shows <strong>the</strong> types <strong>of</strong> trust in a variety <strong>of</strong> contexts:
Table 1: Types <strong>of</strong> trust
Type <strong>of</strong> Trust Definition <strong>of</strong> Trust Study context
Benevolence “interest in <strong>the</strong> well-being <strong>of</strong> o<strong>the</strong>rs... allows one to query
in depth without fear <strong>of</strong> damage to self-esteem” (Abrams
et al., 2003)
Competence Allows one to feel confident about <strong>the</strong> knowledge and
expertise <strong>of</strong> <strong>the</strong> provider (Abrams et al., 2003)
Cognition Build on first impression ra<strong>the</strong>r than personal interactions
(McKnight et al., 1998)
Interpersonal "<strong>the</strong> willingness <strong>of</strong> a party to be vulnerable to <strong>the</strong> actions
Trust in knowledge sharing
networks
<strong>of</strong> ano<strong>the</strong>r party" (Mayer et al., 1995)
Building trust in knowledge
networks
Initial trust formation at <strong>the</strong>
start <strong>of</strong> a relationship
Trust in interpersonal
relationships
Institution-based belief that organizational structures are in place to protect Knowledge sharing trust in
members
virtual communities <strong>of</strong>
from negative consequences (Ardichvili, 2008)
practice
The above table shows that different forms and relationships <strong>of</strong> trust exist in varying contexts. The
study will look into <strong>the</strong> forms <strong>of</strong> trust that can help in developing effective knowledge sharing
relationships in <strong>the</strong> ego-centered networks <strong>of</strong> pr<strong>of</strong>essionals. O<strong>the</strong>r than <strong>the</strong> trust, effective knowledge
sharing relationship could not fur<strong>the</strong>r establish unless a strong sense <strong>of</strong> mutual obligation exist
between parties who are involved in informal knowledge sharing. Research indicates that repeated
instances <strong>of</strong> information sharing (both ways) regulate individuals’ behaviour and develop strong sense
<strong>of</strong> mutual obligation to involve in each o<strong>the</strong>rs’ problems solving efforts.
2.3 How reciprocity can promote knowledge sharing in ego-centered network
The effectiveness <strong>of</strong> a knowledge-sharing network depends on <strong>the</strong> active contribution <strong>of</strong> its members
in terms <strong>of</strong> information seeking and provision (Chiu et al., 2006, Hsu et al., 2007, Cross et al., 2001).
However, in <strong>the</strong> absence <strong>of</strong> shared goals and common work interests, <strong>the</strong> question arises what
develops and maintains continued knowledge sharing relationships between knowledge workers.
Social Exchange Theory (SET) posits that social exchanges involve receiving and returning favours
(Cropanzano and Mitchell, 2005). The <strong>the</strong>ory proposes that reciprocity (i.e. a party who gets
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Mahmood Ghaznavi et al.
favourable treatment should return <strong>the</strong> favour) is important in developing long term knowledge
exchange relationships.
There may be several reasons for informal sharing <strong>of</strong> knowledge between knowledge workers;
ranging from voluntary contributions (e.g. knowledge sharing in online communities, or open source
s<strong>of</strong>tware development) to <strong>the</strong> reciprocal trade <strong>of</strong> information (i.e. informal know-how trading). Studies
have indicated that useful knowledge sharing relationships develop through repeated instances <strong>of</strong>
information exchanges (Cropanzano and Mitchell, 2005, Cowan and Jonard, 2003, Fleming and
Frenken, 2007, Chiu et al., 2006, Teigland and Wasko, 2003). At <strong>the</strong> outset, <strong>the</strong>re may be few
exchanges <strong>of</strong> less valuable information, but frequent reciprocal information exchanges resulted in
improved trust (Schrader, 1995) and stronger (Chiu et al., 2006) ties that can foster more substantial
information/knowledge exchanges relationships. None<strong>the</strong>less a decline in reciprocity, even in an
established exchange relationship, may decrease trust and fur<strong>the</strong>r growth <strong>of</strong> knowledge sharing
relationships (Chiu et al., 2006). Table 2 below is a snapshot <strong>of</strong> <strong>the</strong> informal information sharing
studies highlighting reciprocity as <strong>the</strong> basis <strong>of</strong> useful informal information and know-how exchange
relationships.
Table 2: Empirical studies on reciprocal exchange relationships
Study Important Findings and implications Context
(von Hippel, 1987)
& (Schrader, 1991)
Employees were sharing technical information
with colleagues in o<strong>the</strong>r firms and receiving
information in return. However, such exchanges
can be disadvantageous if employees do not
observe certain rules
(Schrader, 1995) Under certain conditions, informal information
exchange by means <strong>of</strong> personal contacts can in
(Teigland and
Wasko, 2003)
(Dahl and
Pedersen, 2004)
<strong>the</strong> economic interest <strong>of</strong> a firm
Employees informal information exchange
activities with colleagues in o<strong>the</strong>r firms improve
performance <strong>of</strong> both, that is, individuals and <strong>the</strong>
firm
Employees exchange valuable information
through informal contacts. This improves
individual’s capability and firm’s innovativeness
(Chiu et al., 2006) Norms <strong>of</strong> reciprocity found to be an important
factor in sharing knowledge with o<strong>the</strong>rs
Informal know-how trading
networks in <strong>the</strong> US steel mini-mill
industry
Observing information trading in
<strong>the</strong> oil-exploration industry
Examining boundary spanning
communication <strong>of</strong> knowledge
workers
Investigating informal
communication between
engineers in <strong>the</strong> Wireless
Communication industry,
Denmark
Examining knowledge sharing in
virtual communities
The above studies in some industries and virtual knowledge sharing communities confirm <strong>the</strong> notion
that employees develop frequent information and knowledge collaboration through personal
interactions and informal communication. Norms <strong>of</strong> reciprocity have established mechanisms for
effective informal information and knowledge exchange. The study will fur<strong>the</strong>r investigate <strong>the</strong>se claims
in <strong>the</strong> context <strong>of</strong> ego-centered knowledge networks.
Based on <strong>the</strong> above review, a conceptual model showing <strong>the</strong> interplay between transactive memory,
trust, and reciprocity that can enable effective knowledge sharing in ego-centered networks <strong>of</strong>
pr<strong>of</strong>essionals is shown in Figure1:
3. Research questions
From <strong>the</strong> above model, following research questions are developed for fur<strong>the</strong>r empirical investigation:
What role Transactive Memory, Trust, and Reciprocity play in enabling knowledge sharing in <strong>the</strong>
ego-centered knowledge networks <strong>of</strong> pr<strong>of</strong>essionals?
How do transactive memory, trust, and reciprocity work in managing individuals’ concerns <strong>of</strong>
sharing knowledge in <strong>the</strong> ego-centered networks <strong>of</strong> pr<strong>of</strong>essionals?
What do knowledge workers believe is <strong>the</strong> relationship between informal knowledge sharing and:
a) personal development; b) ability to contribute in process/product improvement
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Mahmood Ghaznavi et al.
Figure 1: A framework <strong>of</strong> knowledge sharing in ego-centered knowledge networks
4. Proposed research methodology
To examine how <strong>the</strong> developed model works, <strong>the</strong> proposed study is going to survey all 600 members
<strong>of</strong> <strong>the</strong> New Zealand Knowledge Management (NZKM) network. NZKM network comprised <strong>of</strong> industry
pr<strong>of</strong>essionals who work in different knowledge-intensive sectors <strong>of</strong> New Zealand. The proposed
survey will ask <strong>the</strong>m about <strong>the</strong> existence <strong>of</strong> ego-centered networks around <strong>the</strong>m, <strong>the</strong>ir knowledge
sharing activities with members <strong>of</strong> <strong>the</strong>ir personal networks, and <strong>the</strong>ir perceptions about <strong>the</strong> impact <strong>of</strong>
informal knowledge collaboration on <strong>the</strong>ir personal development and ability to innovate processes or
products. Demographic data will include work position, work history, work situations, work needs,
career aspirations, etc <strong>of</strong> <strong>the</strong> NZKM members. Most <strong>of</strong> <strong>the</strong> measurement items in this study have
been adopted from prior studies which were validated in <strong>the</strong> context <strong>of</strong> information and knowledge
sharing.
All dependent and independent variables will be measured on a five-point Likert-scale with <strong>the</strong>
responses ranging from strongly disagree to strongly agree. Confirmatory factor analysis (CFA) will be
used to examine <strong>the</strong> validity and reliability <strong>of</strong> <strong>the</strong> survey instrument. Structural modelling and multiple
regression analysis will be performed to verify correlations among various constructs and <strong>the</strong>
developed hypo<strong>the</strong>ses. Partial Least squares (PLS) may also be used to analyze measurements and
structural equation modelling technique that include direct, indirect, and interaction effects will also be
employed.
5. Research contribution and implications
Knowledge intensive pr<strong>of</strong>essions such as bio-technology, information and communication technology,
s<strong>of</strong>tware development rely heavily on <strong>the</strong> knowledge possessed by individuals. In <strong>the</strong>se pr<strong>of</strong>essions,
informal interactions between employees provide immense opportunities for learning and
development. The study will highlight <strong>the</strong> role and influence <strong>of</strong> knowledge workers in coordinating
specialized knowledge that can improve performance <strong>of</strong> both: individuals and <strong>the</strong> firm. It will
specifically look into how specialized sources <strong>of</strong> knowledge can be linked effectively so that a larger
pool <strong>of</strong> knowledge is available through interconnected individuals. This could lead to <strong>the</strong> faster,
reliable, and economic access to knowledge that can quickly resolve complex problems at work.
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Apart from identifying necessary conditions for informal knowledge collaboration within <strong>the</strong> egocentered
networks <strong>of</strong> pr<strong>of</strong>essionals, <strong>the</strong> study will contribute to <strong>the</strong> scant literature on boundary
spanning knowledge sources that can improve competitiveness individuals and <strong>the</strong> firms. The
research may provide new insights to <strong>the</strong> organizational KM researchers to fur<strong>the</strong>r explore <strong>the</strong>
benefits <strong>of</strong> informal information and knowledge collaboration and develop new <strong>the</strong>ories <strong>of</strong> informal
information and knowledge sharing. The results may <strong>of</strong>fer suggestions to promote effective
knowledge collaboration among knowledge workers.
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688

Measuring Intellectual Capital for Romanian SMEs: A
Comparative Analysis by Field <strong>of</strong> Activity
Bogdan-Vasile Ileanu, Claudiu Herteliu and Tudorel Andrei
Academy <strong>of</strong> Economic Studies, Bucharest, Romania
bogdan.ileanu@gmail.com
bogdan.ileanu@csie.ase.ro
hertz@csie.ase.ro
andreitudorel@yahoo.com
Abstract: Taking into account <strong>the</strong> lack <strong>of</strong> applied studies on this domain and taking into account that <strong>the</strong>
intellectual capital is, considered, as a sum <strong>of</strong> knowledge which may be converted into pr<strong>of</strong>it or competitive
advantage in a wider sense, it is a necessity for Romanian companies to discover, to develop and to transform
this intangible value into performance. The study propose a way <strong>of</strong> reveal and measure <strong>the</strong> IC <strong>of</strong> SMEs, taking
into account <strong>the</strong> experience <strong>of</strong> well-known methods and <strong>the</strong> specificity <strong>of</strong> Romanian SMEs such as:
predominance <strong>of</strong> small enterprises, lack <strong>of</strong> indicators, structure <strong>of</strong> enterprises by domain, etc. Since we have a lot
<strong>of</strong> restrictions given by above mentioned situation <strong>of</strong> Romanian SMEs we applied Principal Component Analysis
in multiple steps to reveal and measure <strong>the</strong> IC on <strong>the</strong> overall performance. Since <strong>the</strong>re is a strong heterogeneity
by field <strong>of</strong> activity we have made comparisons between <strong>the</strong> most important domains on <strong>the</strong> Romanian Economy:
Manufacturing Industry- as <strong>the</strong> second important domain <strong>of</strong> <strong>the</strong> GDP resource and Science, Information,
Communication and Technology domain because it is considered <strong>the</strong> most appropriate domain for intellectual
capital and also because science and technology is <strong>the</strong> “brain-engine” <strong>of</strong> an economy. The Commerce domain
was taken <strong>of</strong>f since we couldn’t find a significant relevance for <strong>the</strong> indicators. The results are following <strong>the</strong> current
<strong>the</strong>ory but also suggest <strong>the</strong> necessity to create link components, leant, at least in case <strong>of</strong> Romanian SMEs.
Significant differences regarding <strong>the</strong> main components and <strong>the</strong>ir sources could be seen between <strong>the</strong> two
domains analyzed. This could suggest a more complex framework if all domains <strong>of</strong> activity from <strong>the</strong> economy are
used in <strong>the</strong> analysis.
Keywords: intellectual capital measure, romanian smes, manufacturing industry, science information and
technology, principal component analysis
1. Introduction
Analyzing <strong>the</strong> hard period <strong>of</strong> transition (manifested by political changes, high unemployment rates,
inflation, etc) <strong>of</strong> Romania we can see that it is overlapped with <strong>the</strong> most important period <strong>of</strong>
developing methods <strong>of</strong> measure for Intellectual Capital (IC). Most important methods were developed
between 1992/1993 and 2005 (Balance Scorecard, Intangible Assets Monitor, Skandia Navigator,
etc). This uncertain situation determines a huge delay related to international activity and results. First
applied and relevant studies made on Romanian companies, available for readers, strictly regarding
<strong>the</strong> measure <strong>of</strong> companies’ intellectual capital, were made beginning with <strong>the</strong> last period <strong>of</strong> 2006 and
beginning <strong>of</strong> 2008 (Bratianu, 2006; Anghel, 2008).
Since no system <strong>of</strong> indicator was made public for a specific or general area, our purpose is to
determine starting set point <strong>of</strong> indicators which could be relevant for measuring intellectual capital <strong>of</strong>
Romanian SMEs.
This study starts from <strong>the</strong> concepts <strong>of</strong> measuring intellectual capital found in <strong>the</strong> international
literature. For example, Annie Brooking (1996, p.12) defines intellectual capital as <strong>the</strong> “combined
intangible assets which enable <strong>the</strong> company to function”. A wider determination, at macrolevel is
given by Bontis (2004, pp. 14-15) — “The intellectual capital <strong>of</strong> a nation includes <strong>the</strong> hidden values <strong>of</strong>
individuals,enterprises, institutions, communities and regions that are <strong>the</strong> current and potential
sources for wealth creation.The hidden values <strong>of</strong> individuals, enterprises, institutions, communities
and regions that are <strong>the</strong> current and potential sources for wealth creation. These hidden values are
<strong>the</strong> roots for nourishment and <strong>the</strong> cultivation <strong>of</strong> future wellbeing”. The intellectual capital also can be
analyzed as a mixture <strong>of</strong> human capital concept and knowledge management ideas: it integrates
toge<strong>the</strong>r knowledge and <strong>the</strong>ir parent — individual. Such vision underlines <strong>the</strong> intellectual capital
model presented by Edvinsson and Malone (1997, pp. 34-36), according <strong>the</strong>m <strong>the</strong> intellectual capital
is subdivided into <strong>the</strong> human capital (“<strong>the</strong> capabilities, <strong>the</strong> knowledge, skill and experience <strong>of</strong>
company employees and managers...also it must include creativity and innovativeness <strong>of</strong> <strong>the</strong>
organization”), structural capital (“includes <strong>the</strong> quality and reach <strong>of</strong> information technology systems,
company images, databases, organizational concepts and documentation...also here can be found
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traditional items such as intellectual properties including patents, trademarks and copyrights”), and
customer capital considered to measure <strong>the</strong> relation <strong>of</strong> <strong>the</strong> company with <strong>the</strong> strategic partners and
customers.
The problem <strong>of</strong> indicators selection is very difficult. In our case we have a limited area <strong>of</strong> indicators
measured in <strong>the</strong> study made on this sample. As we have no alternative to select more indicators we
try to establish a set <strong>of</strong> indicators by comparing <strong>the</strong>m with those selected in <strong>the</strong> most important
methods found in <strong>the</strong> international literature.
Our approach is divided in three parts: I, where we concentrate on Romanian SMEs description,
sample characteristics, and variable description, II, Methodology used and results and III, Conclusions
and future researches.
2. SMEs, sample and variable descriptions
Since 1 January <strong>of</strong> 2005 a new definition <strong>of</strong> SMEs according with EU requirements reveals that: an
organization is an SME if it is involved in <strong>the</strong> economic activity, has autonomy, has a number <strong>of</strong>
employees smaller than 250 and a turnover <strong>of</strong> maximum 50 millions <strong>of</strong> euro. (CNIPMMR, n.d.).
2.1 Sample description
The applied research is done on a representative sample <strong>of</strong> small and medium enterprises. Data
collection was made during 2009, using face-to-face method by field-work interviewers. All <strong>the</strong>
respondents were specialist in HR. The sample is a cross stratified by number <strong>of</strong> employees, NCAE
(domain activity) and regions. Economic <strong>the</strong>ory and practice recommend <strong>the</strong> analysis within a single
domain because <strong>the</strong> large heterogeneity <strong>of</strong> <strong>the</strong> factors and results. As a result we took from <strong>the</strong> base
sample only <strong>the</strong> companies from <strong>the</strong> Science, Information, Communication & Technology domain,
versus Manufacturing Industry, domains considered as most relevant for intellectual capital
development in Romanian SMEs.
After <strong>the</strong> data collection, we have cleaned <strong>the</strong> database by eliminating <strong>the</strong> cases with many missing
answers; In <strong>the</strong> end we have a sub sample <strong>of</strong> 344 SMEs, 181 from <strong>the</strong> Manufacturing Industry and
163 from <strong>the</strong> Scientific, Communication, Information & Technology.
Half <strong>of</strong> <strong>the</strong> selected SMEs have less than 10 employees, 32% <strong>of</strong> <strong>the</strong> enterprises have between 10
and 49 employees and 13.5 percents <strong>of</strong> <strong>the</strong> sample have more than 49.
Easily could be remarked that most <strong>of</strong> <strong>the</strong> enterprises are micro-enterprise in Romania. This situation
has a negative impact on <strong>the</strong> measuring SMEs intellectual capital. Our sub sample has some
significant differences regarding <strong>the</strong> distribution by number <strong>of</strong> employees compared to <strong>of</strong>ficial data.
According to National Institute <strong>of</strong> Statistics, in 2009, 92% <strong>of</strong> <strong>the</strong> Romanian enterprises are microenterprises.
These differences could have a positive impact on <strong>the</strong> steps <strong>of</strong> measuring intellectual
capital since we overestimated <strong>the</strong> number <strong>of</strong> <strong>the</strong> enterprises which have more employees and as a
result a more complex structure and organization. At least <strong>the</strong>oretically <strong>the</strong> investments in Intellectual
capital development should more representatives for larger companies taking into account at least
<strong>the</strong>ir potential and infrastructure.
The structure is different by domains. For example in Manufacturing Industry 20% <strong>of</strong> <strong>the</strong> companies
have more than 50 employees instead <strong>of</strong> only 3.7% from Science & Technology have <strong>the</strong> same
category <strong>of</strong> employees.
2.2 Description <strong>of</strong> <strong>the</strong> variables
Taking into account that <strong>the</strong> used variables are lying on different ranges, are becoming from different
patterns, having distinct units <strong>of</strong> measure and being measured on different scales <strong>the</strong>y were
standardized.
The classical method <strong>of</strong> standardization was applied in this case: ,
where X represent in this case a particular primary indicator used for measuring Intellectual Capital.
The first letter z from <strong>the</strong> name <strong>of</strong> each variable will show that <strong>the</strong> variable is standardized.
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Bogdan-Vasile Ileanu et al.
ZAngTr represent <strong>the</strong> percentage <strong>of</strong> employees in <strong>the</strong> company which benefit <strong>of</strong> training during <strong>the</strong>
last year.Its values are lying between zero and hundred percents. ZWage is a categorical variable
and represent <strong>the</strong> changes on <strong>the</strong> employees’ salary during <strong>the</strong> last year comparative to <strong>the</strong> previous
one. It is measured on a scale <strong>of</strong> nine points. Zperf represent <strong>the</strong> performance <strong>of</strong> <strong>the</strong> enterprise in <strong>the</strong>
last year compared to <strong>the</strong> previous year, measured on a scale <strong>of</strong> six points describing performances
from very low to very high; zInvinov is measuring <strong>the</strong> percentage <strong>of</strong> <strong>the</strong> total investment <strong>of</strong> <strong>the</strong>
enterprise for developing new product s or services, this variable is measured on a scale with six
points and has values from zero to over seventy five percents; Zangexp, defines <strong>the</strong> percentage <strong>of</strong>
employees which have more than fifteen years <strong>of</strong> experience in <strong>the</strong> principal domain <strong>of</strong> activity <strong>of</strong> <strong>the</strong>
enterprise. It has values from 0 to 100% unconstrained by predefined classes; Ztrday, counts <strong>the</strong>
average number <strong>of</strong> days <strong>of</strong> training <strong>of</strong> employees during <strong>the</strong> last year. This variable is measured on a
scale <strong>of</strong> four points, it cannot be assumed as continuous; Zangsex2, represents <strong>the</strong> square <strong>of</strong> <strong>the</strong>
variable percentage <strong>of</strong> men employees; Zpersmigr, represents <strong>the</strong> coefficient <strong>of</strong> personal fluctuations
during <strong>the</strong> last year; ZAngedu, represent <strong>the</strong> percentage <strong>of</strong> employees which have high level <strong>of</strong>
education; zCanewp is a continuous variables which measures <strong>the</strong> percentage from turnover gained
from new product developed in <strong>the</strong> last year; Zbrand2 is <strong>the</strong> square <strong>of</strong> <strong>the</strong> variable which measures
<strong>the</strong> ancientness <strong>of</strong> <strong>the</strong> company;. Zexp is a variable which measures <strong>the</strong> experience <strong>of</strong> <strong>the</strong> employee
in general not in a particular domain is measured as categorical on a scale with three points.
3. Methdology used and applications
3.1 Methodology
There are many methods recommended to aggregate a group <strong>of</strong> indicators in one result such as:
Conjoint Analysis, Principal Components Analysis, Data Envelopment Analysis, Neural Networks,
Hierarchical Analysis, Path Analysis, Multi step regressions analysis, and o<strong>the</strong>r qualitative or
quantitative methods according to OECD (2008). Taking into account <strong>the</strong> data available are not <strong>of</strong> a
wide range and with reduced spread <strong>of</strong> indicators, we chose to apply PCA method in one or multiple
steps in order to group initial indicators to main components.
The purpose <strong>of</strong> PCA is to extract <strong>the</strong> smallest number <strong>of</strong> components to recover as much <strong>of</strong> <strong>the</strong> total
information contained in <strong>the</strong> original data. This metods was sucessfully used in previous researches.
Here could be mentioned <strong>the</strong> study made on <strong>the</strong> SMEs from Russia where Tovstiga and Tulugurova
(2009, p.73) used it to analyze <strong>the</strong> performance <strong>of</strong> small inovative enterprises. Ano<strong>the</strong>r case was
described in biopharmaceutical Finnish’ SMEs developped by Hermans (2004, p.10) where this
quantitative technique was used to avoid <strong>the</strong> multi correlation effect met in a regression analysis, or in
<strong>the</strong> Taiwanese High Tech Iindustry where Yang and Chen (2010, p.3368) combined this technique
with DEA in order to analize <strong>the</strong> management <strong>of</strong> IC, etc.
As we saw before this technique is used in various situation. Its starting point is given by an array <strong>of</strong>
data element R defined by rij
which means <strong>of</strong> taking <strong>the</strong> i-th observations for <strong>the</strong> variable j, i
representing in our case a particular company and j a related variable. The variables are <strong>of</strong>ten
heterogeneous (different units, different size, different distributions, etc.). To cancel this effect is
recommended to standardize <strong>the</strong> values <strong>of</strong> rij
. The transformation applied is
xij
r
ij
−r
* j
= where r
s
j
/ n
∗ j
represent <strong>the</strong> average <strong>of</strong> variable j and s j is its standard deviation. After applying this transformation
all variables will have <strong>the</strong> same average and same variance. Now <strong>the</strong> analysis will apply on <strong>the</strong> table
data noted as matrix X where X X
t
, involved in <strong>the</strong> calculation, represent <strong>the</strong> correlation matrix <strong>of</strong>
original variables. The purpose <strong>of</strong> <strong>the</strong> methods is <strong>the</strong> reduction <strong>of</strong> <strong>the</strong> number <strong>of</strong> variables but keeping
a large amount <strong>of</strong> information possible. For this we introduces a new variable Z written as a linear
combination <strong>of</strong> original variables Z = w1
X 1 + w2
X 2 + ... w p X p where w 1,
w2
,... w p are associated with
weights <strong>of</strong> <strong>the</strong> initial variables, X.
PCA determines such weights ai
which are maximizing <strong>the</strong> variance <strong>of</strong> component Z. As <strong>the</strong> variance
could have extra large value <strong>the</strong> method determines only <strong>the</strong> weights which respect de condition
p
∑
i=
1
w
2
i
= 1 . Once <strong>the</strong> weights are found, <strong>the</strong> variable Z is noted as first Principal Component.
691
3

Bogdan-Vasile Ileanu et al.
⎛ p ⎞
t
If we note C = X X . The maximization <strong>of</strong> Z variance implies max (var Z)
= max ⎜var
∑ w ⎟
⎜ i
X
i ⎟
⎝ i = 1 ⎠
p
= max ∑ w
2
⎜
⎛ var( X +
,which
⎝ i
)
⎟
⎞
i
cov ar(
X
i
, X
j
)
i = 1
⎠
in a matricial form can be written
w t t
( ) Xw
max var Z = max X Taking into account that w = 1 w = 1 it results <strong>the</strong> following
problem <strong>of</strong> extremes
w t t
max X Xw restricted by
w w = 1
t
p
∑
i=
1
w t
2
i ⇔
Using Lagrangian Multiplier can be achivied <strong>the</strong> solution <strong>of</strong> maximum problem:
t t
t
t
F(
w)
= w X Xw − λ w w −1
from where results that <strong>the</strong> eigen vector <strong>of</strong> <strong>the</strong> matrix C = X X which
( )
w t t
corresponds to <strong>the</strong> eigen value λ . In this case X Xw = λ . Because var( Z) = w Xw = λ this
implies that <strong>the</strong> eigen vector achieved is <strong>the</strong> one which correspond to <strong>the</strong> maximum eigen value.
The second principal component is defined as a linear combination <strong>of</strong> initial variables X but with <strong>the</strong>
second maximum variance since <strong>the</strong> first component was computed.
w X w X w Z2 = 12 1 + 22 2 + ... 2
p p X
In this case we achieve <strong>the</strong> second eigenvalue as value. The weights wij
represent in fact <strong>the</strong>
contribution <strong>of</strong> <strong>the</strong> i-th variable on <strong>the</strong> principal component j.
A very important consequence <strong>of</strong> <strong>the</strong> fact that <strong>the</strong> variance <strong>of</strong> principal components are even <strong>the</strong>
eigen vectors is <strong>the</strong> statistical independece between principal components
The number <strong>of</strong> principal components
Taking into account <strong>the</strong> transfer <strong>of</strong> information is without loss we have <strong>the</strong> conservation <strong>of</strong> variability:
p
∑
i=
1
p
∑
i=
1
∑
var( X ) = var( Z ) + var( Z ) + ... + var( Z ) = λ
var( X
i
1
2
p
p
i=
1
If <strong>the</strong> method is applied on <strong>the</strong> standardized variable <strong>the</strong>n <strong>the</strong> relation becomes :
*
i
) = var( Z1
) + var( Z 2 ) + ... + var( Z p ) = ∑ λ i = 1+
1+
1+
... + 1 = p
p
i=
1
i
In general <strong>the</strong> first q components <strong>of</strong>fers a q dimensional syn<strong>the</strong>se <strong>of</strong> <strong>the</strong> initial variables. That
syn<strong>the</strong>se which has <strong>the</strong> maximum variance from all <strong>the</strong> q-dimensional sy<strong>the</strong>ses.For q=p <strong>the</strong>re is no
dimensional reduction. It is just a new form <strong>of</strong> <strong>the</strong> initial variables. By keeping <strong>the</strong> first q eigen values
<strong>the</strong> proportion <strong>of</strong> <strong>the</strong> explained variance is :
λ1
+ λ2
+ λ3
+ ... λq
λ + λ + λ .. + λ + ... λ
1
2
3
q
p
This cannot be a criteria <strong>of</strong> selection because <strong>the</strong> value <strong>of</strong> this rapport increases once <strong>the</strong> number <strong>of</strong>
principal components increases. A criteria could be <strong>the</strong> choice <strong>of</strong> <strong>the</strong> components which have <strong>the</strong>
value over <strong>the</strong> mean, which means
692
X t t

( λ + λ + λ + λ )
1
λ i > 1 2 3 ...
p
p
Bogdan-Vasile Ileanu et al.
The Kaizer Criteria (Kaiser,1961) as cited in Abdi and Wiliams (2010, p. 15) suggests to be taken <strong>the</strong>
components which have <strong>the</strong> variance over 1. O<strong>the</strong>r possibility would be <strong>the</strong> graphical criteria, by scree
plot described by Holland (2008, p.3). Our approach in determining <strong>the</strong> IC- components will be based
on Kaizer Criteria since we intend to explain as much as possible from <strong>the</strong> final variance.
3.2 Applications on <strong>the</strong> most important domains
Analysis for Manufacturing Industry
The first step was to introduce all <strong>the</strong> twelve factors in <strong>the</strong> analysis. Regarding <strong>the</strong> table from <strong>the</strong>
Annex 1 it can be seen that not all <strong>the</strong> variables are strongly correlated with a new component. From
this reason we decided to take <strong>of</strong>f <strong>the</strong> variables with lower correlation coefficients which were not
discriminated by one or ano<strong>the</strong>r principal component.
The final results gain only 8 <strong>of</strong> 12 indicators which are naturally grouped in 3 main principal
components.
The first component envelopes <strong>the</strong> following indicators: Percentage <strong>of</strong> employees with high education,
Percentage <strong>of</strong> Turnover alocated for training and Percentage <strong>of</strong> employees who benefit <strong>of</strong> training
programs. Since all <strong>the</strong> variables are related to <strong>the</strong> characteristics <strong>of</strong> employees and <strong>the</strong>ir capabilities
and participation to lifelong learning we decided to name it as Human Capital component
The second component is refering to: Percentage <strong>of</strong> investment used for innovation, percentage <strong>of</strong>
turnover gained from selling new products. These variables are related to <strong>the</strong> capacity <strong>of</strong> <strong>the</strong>
companies to innovate and to develop new products. This component is named as Innovational
Capital and will be considered as branch <strong>of</strong> Structural Capital <strong>of</strong> a company.
The last component isolated with <strong>the</strong> PCA method contains indicators <strong>of</strong> internal structure and
condition <strong>of</strong> organization such as: Percentage <strong>of</strong> employees with more than 15 years <strong>of</strong> experience in
<strong>the</strong> field; The structure <strong>of</strong> employees by gender and <strong>the</strong> Brand image. The statistical results can be
found in <strong>the</strong> Annex 2.
Analysis for Science Information Communication & Technology (SICT)
The same procedure <strong>of</strong> applying PCA in two steps was used. In <strong>the</strong> Annex 4 can be seen <strong>the</strong> first
step <strong>of</strong> <strong>the</strong> analysis which contains all available indicators. In <strong>the</strong> second stage, after we have taken
<strong>of</strong>f <strong>the</strong> non-significant indicators, in case <strong>of</strong> <strong>the</strong> Science Technology and Information domains could
be distinguished four sources <strong>of</strong> Intellectual Capital composed by 9 indicators <strong>of</strong> 12.
The first source is formed by <strong>the</strong> internal structure <strong>of</strong> <strong>the</strong> core employees. This structure regards <strong>the</strong>
experience and high education skills. It is normal that in this domain a particular component related to
skills <strong>of</strong> employees to be significant since <strong>the</strong> domain <strong>of</strong> science, information & Technology is a
domain where in general should be high skilled and educated employees.
Ano<strong>the</strong>r component reveals <strong>the</strong> human capital factors and it represented by different components <strong>of</strong>
employee training such as: Percent from Turnover allocated for training; Percent <strong>of</strong> employees who
benefit <strong>of</strong> training programs; Average number <strong>of</strong> days <strong>of</strong> training.
With a red background, is marked in <strong>the</strong> Annex 5, <strong>the</strong> component related to innovation process:
Percentage <strong>of</strong> investment used for innovation and Percentage <strong>of</strong> turnover gained from selling new
products. These components show <strong>the</strong> efforts <strong>of</strong> <strong>the</strong> companies to develop and sell <strong>the</strong> new products.
The last component (<strong>the</strong> light blue marked in <strong>the</strong> table) shows <strong>the</strong> relation <strong>of</strong> <strong>the</strong> employees with <strong>the</strong>ir
company. The wage is <strong>the</strong> most important factor <strong>of</strong> motivation and <strong>the</strong> migration factor found here as
significant could be an effect <strong>of</strong> income politics or <strong>of</strong> internal stability and long term perspective. We
assume <strong>the</strong>se indicators to a balance category ra<strong>the</strong>r than for a human component or internal
structure.
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5

4. Conclusions and future researches
4.1 Conclusions
Bogdan-Vasile Ileanu et al.
In <strong>the</strong> Manufacturing Industry field, factors like average number <strong>of</strong> days <strong>of</strong> training, wage changes
employees migration and experience work don’t create discriminate categories. In this field this
behavior is quite explicable. In <strong>the</strong> manufacture industry most <strong>of</strong> <strong>the</strong> companies have a long
experience and stability. They become from ancient period <strong>of</strong> communism and <strong>the</strong>re is a significant
part <strong>of</strong> capital which is still <strong>of</strong> <strong>the</strong> state and <strong>the</strong> rules are not flexible like in <strong>the</strong> private sector.
In case <strong>of</strong> <strong>the</strong> Science & technology domain can be observed that some particular indicators are here
significant in <strong>the</strong> analysis. Since this domain is new on <strong>the</strong> Romanian Economy, in general
enterprises are younger than 20 years in this field; <strong>the</strong>y are mostly private company with a part <strong>of</strong>
foreign capital. The specificity <strong>of</strong> <strong>the</strong> field, technology, information, science, implies a migration <strong>of</strong> <strong>the</strong>
employees to better skilled or better paid place or implies factors like wage motivation and training to
be significant. The last two variables creates a new component in IC measure, which could be a key
<strong>of</strong> balance between human capital and internal decision (organizational component)
Analyzing <strong>the</strong> indicators achieved and <strong>the</strong>ir way <strong>of</strong> association it looks like basic concepts <strong>of</strong>
aggregation follows <strong>the</strong> structure <strong>of</strong> Intellectual Capital structure found in models <strong>of</strong> Skandia Navigator
(Edvinsson, 1997) or Balance Scorecard (Kaplan and Norton, 1992). In both analyzed domains we
can find indicators from Human Capital side and from Structural Capital. Moreover <strong>the</strong> structural
component is slightly divided also in our case in Innovational Capital and Process Capital. These
categories also reflect both <strong>the</strong> internal and external “image” <strong>of</strong> a company.
The groups achieved by PCA methods reveals that <strong>the</strong>re should be created different systems <strong>of</strong> IC
measure according with domain <strong>of</strong> activity or at least in case <strong>of</strong> a common system, some indicators
should have a weight <strong>of</strong> 0.
If we compare <strong>the</strong> general approaches met in <strong>the</strong> literature, starting from basic Skandia and Balance
Scorecard and applied on particular sectors like in Thailand e-commerce domain by Srivihok and
Intrapairote (2004) or by Mertins, Wang and Willl (2009, p.118-120) in German Industry and Services
sectors, can be observed that in our case <strong>the</strong>re are no significant differences between <strong>the</strong> type
sources <strong>of</strong> IC in both domains.
One thing could be specially remarked regarding <strong>the</strong> major component <strong>of</strong> Intellectual Capital: Some
primary indicators, like percentage <strong>of</strong> employees with high education skills in this case, could
participate in different major source <strong>of</strong> Intellectual Capital from one domain to ano<strong>the</strong>r. In <strong>the</strong> present
case-study in <strong>the</strong> Manufacturing industries this indicator forms <strong>the</strong> Human Capital component and in
<strong>the</strong> SICT domain it determines <strong>the</strong> Organizational component. This is not a strange results taking into
account that <strong>the</strong>re are o<strong>the</strong>r similar examples in <strong>the</strong> well-known studies. A good practice example
could be found in Intangible Assets Monitor (Sveiby, 1997b) system where Seniority rate is a
component <strong>of</strong> internal structure but also an indicator <strong>of</strong> competence.
In fact in case <strong>of</strong> Romanian SMEs, <strong>the</strong>se factors are not creating distinct groups because individual
elements such Customer Capital or Process capital is not yet well developed, as we mentioned <strong>the</strong>
development period <strong>of</strong> most Romanian SMEs was in <strong>the</strong> last years.
In this case we can propose <strong>the</strong> following syn<strong>the</strong>tic figures to determine <strong>the</strong> base <strong>of</strong> Intellectual
Capital in <strong>the</strong>se domains
IC-Manufacture Industries
Innovational capital Human Capital Organizational & Internal Structure
Figure 1: Intellectual capital structure in manufacturing industries.*
694

*Authors proposal
Bogdan-Vasile Ileanu et al.
Indicators could be seen in <strong>the</strong> Annex 2. Innovational capital explain a part <strong>of</strong> 45%, Human Capital a
part <strong>of</strong> 30,9% and Organizational Capital explains <strong>the</strong> rest <strong>of</strong> 24,1%, as can it be seen form Annex 3.
Then <strong>the</strong> IC index becomes
IC=0.45*Innovational Capital +0.309* Human Capital +0.241*Organizational Capital
IC-SICT
Innovational capital Human Capital
Organizational & Internal Structure
Balance indicators
Figure 2: Intellectual capital structure in science, information, communication & technology(SICT)*
*Authors proposal
In this case <strong>the</strong> innovational part explains 29%, <strong>the</strong> human capital component reveals 16.8% <strong>of</strong>
Intellectual Capital, <strong>the</strong> organization and internal structure explains 31,0% and <strong>the</strong> Balance indicators
explains 23.2%. More details could be seen in <strong>the</strong> Annex 5.
In this case <strong>the</strong> aggregate IC-index becomes:
IC=0.29*Innovational Capital + 0.168*Human Capital + 0.31*Organizational Capital + 0.232* Balance
Component
In both cases <strong>the</strong> percentages <strong>of</strong> explanation given by each category are calculated by dividing <strong>the</strong>
variance explained by each <strong>of</strong> component by <strong>the</strong> total variance explained by all <strong>the</strong> components
isolated (3 in <strong>the</strong> first case and 4 in <strong>the</strong> case <strong>of</strong> <strong>the</strong> second field <strong>of</strong> activity).
Comparing <strong>the</strong> Annex 6 and Annex 3 it is easily to see that <strong>the</strong> second model, for <strong>the</strong> SICT domains,
is more efficient than <strong>the</strong> first one, applied for <strong>the</strong> Manufacturing industries.
4.2 Future researches and suggestions
The future analyses intend to correlate <strong>the</strong>se indicators with performances <strong>of</strong> <strong>the</strong> enterprises. Also is
quite visible that most <strong>of</strong> <strong>the</strong> case studies or international models are not approaching <strong>the</strong> dynamic
evolution <strong>of</strong> factors and <strong>the</strong>ir correlation with organization’s objectives. We already have available a
database with indicators measured in 2010.
A dynamic evolution could be very useful to see <strong>the</strong> direction <strong>of</strong> Intellectual Capital development in
Romania. On dynamic set <strong>of</strong> data also a panel analysis could be carried out.
Since <strong>the</strong> new database has more indicators we can also test o<strong>the</strong>r statistical techniques to obtain a
general indicator. Structural equation modeling with latent variables in different periods and <strong>the</strong>n a
dynamic comparison could be applied. Also taking into account <strong>the</strong> econometric modern techniques
maybe a structural equation modeling with latent variables on panel data preceded by a reliability
analysis could give us consistent ad stable results.
Ano<strong>the</strong>r goal is to make comparison in more economic branches. This will be possible if <strong>the</strong> missing
answers rate will be lower than in <strong>the</strong> present case. We think <strong>the</strong> techniques <strong>of</strong> missing data
imputation are not recommended in this case since we don’t have previous studies at least as fragile
base to compare <strong>the</strong> results.
Even if <strong>the</strong> international literature gives us enough examples and <strong>the</strong> modern econometric sustains
<strong>the</strong> quantitative approach in this domain, <strong>the</strong> economic context could not be under estimate.
A complex medium <strong>of</strong> development combined with <strong>the</strong> actual crisis will give always good challenges
to measure <strong>the</strong> “immeasurable”.
695
7

Bogdan-Vasile Ileanu et al.
5. Annex 1: First step for PCA in manufacturing industries, Rotated
Component Matrix a in manufacturing industries*
Component
1 2 3 4
Experience in work -,255 ,399 ,534 ,125
Average number <strong>of</strong> days <strong>of</strong> training ,740 ,233 ,181 -,250
Precent <strong>of</strong> employees who benefit <strong>of</strong> training programs ,186 ,172 ,313 -,742
Percentage <strong>of</strong> employees with high education -,093 ,795 ,005 ,140
Percentage <strong>of</strong> investment used for innovation ,822 -,089 ,048 -,195
Percentage <strong>of</strong> turnover gained from selling new products ,785 -,035 -,002 -,172
The ancientness <strong>of</strong> brand -,010 -,299 ,832 -,026
Percentage <strong>of</strong> employees with more than 15 years <strong>of</strong> experience -,333 ,225 ,286 ,687
Wage changes ,580 ,107 ,017 ,516
Employees migration ,519 ,041 -,382 ,250
Percent from Turnover alocated for training ,266 ,803 -,040 -,159
Structure <strong>of</strong> employees by gender ,249 ,115 ,485 -,064
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
Rotation converged in 7 iterations.
*authors calculations
6. Annex 2: Final step for PCA in manufacturing industries. Rotated
Component Matrix a in manufacturing industries*
1-
Innovational
Component
3-
Organizati
onal
Capital
Capital
2-Human
Capital
Percentage <strong>of</strong> employees with high education -,137 ,650 -,161
Percentage <strong>of</strong> investment used for innovation ,878 ,020 ,083
Percentage <strong>of</strong> turnover gained from selling new products ,832 ,234 ,102
The ancientness <strong>of</strong> brand ,301 -,246 ,629
Percentage <strong>of</strong> employees with more than 15 years <strong>of</strong> experience ,070 -,118 ,520
Percent from Turnover alocated for training ,277 ,593 -,135
Structure <strong>of</strong> employees by gender -,143 ,377 ,713
Precent <strong>of</strong> employees who benefit <strong>of</strong> training programs ,255 ,619 ,183
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
Rotation converged in 6 iterations.
*authors calculations
7. Annex 3: Variance decomposition in manufacturing industries*
Component
Initial Eigenvalues Extraction Sums <strong>of</strong> Squared Loadings
Total % <strong>of</strong> Variance Cumulative % Total % <strong>of</strong> Variance Cumulative %
1 2,030 25,372 25,372 2,030 25,372 25,372
2 1,355 16,942 42,313 1,355 16,942 42,313
dime
nsio
n0
3
4
5
6
1,052
,968
,817
,805
13,153
12,095
10,218
10,061
55,466
67,561
77,779
87,840
1,052 13,153 55,466
7 ,618 7,730 95,570
8 ,354 4,430 100,000
*authors calculations
8. Annex 4: First step for PCA in Science & Technology. Rotated Component
Matrix for Science & Technology*
Component
1 2 3 4 5
Percentage <strong>of</strong> employees with high education -,850 -,048 ,068 -,060 ,221
696

Bogdan-Vasile Ileanu et al.
Percentage <strong>of</strong> investment used for innovation ,600 ,506 ,047 -,401 -,092
The ancientness <strong>of</strong> brand ,728 ,014 -,094 -,096 ,531
Percentage <strong>of</strong> employees with more than 15 years <strong>of</strong> experience -,154 -,013 ,030 -,081 ,898
Percent from Turnover alocated for training ,451 -,077 ,525 -,006 -,215
Structure <strong>of</strong> employees by gender ,043 -,696 -,240 ,038 -,181
Precent <strong>of</strong> employees who benefit <strong>of</strong> training programs -,292 ,104 ,695 -,096 ,240
Average number <strong>of</strong> days <strong>of</strong> training ,024 -,016 ,938 -,053 -,043
Percentage <strong>of</strong> turnover gained from selling new products ,324 ,847 -,104 ,039 -,017
Wage changes ,282 ,255 -,219 ,840 -,035
Employees migration -,277 -,129 ,040 ,809 -,122
Experience in work -,239 ,679 -,198 ,161 -,380
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 8 iterations.
*authors calculations
9. Annex 5: Final step for PCA in Science & Technology. Rotated Component
Matrix a for Science & Technology*
Component
2-
4-
1-Human Innovation 3-Balance Organizatio
Capital al Capital Indicators nal Capital
Percentage <strong>of</strong> employees with high education -,064 -,179 ,065 ,727
Percentage <strong>of</strong> investment used for innovation ,162 ,899 ,029 -,123
Percentage <strong>of</strong> employees with more than 15 years <strong>of</strong> experience ,203 -,009 -,113 ,714
Percent from Turnover alocated for training ,601 -,017 -,105 -,404
Precent <strong>of</strong> employees who benefit <strong>of</strong> training programs ,773 ,001 ,049 ,288
Average number <strong>of</strong> days <strong>of</strong> training ,902 ,102 ,171 ,064
Percentage <strong>of</strong> turnover gained from selling new products -,077 ,916 -,047 -,066
Wage changes ,047 ,084 ,867 -,156
Employees migration ,071 -,111 ,913 ,136
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
Rotation converged in 5 iterations.
*authors calculations
10. Annex 6: Variance decomposition in Science & Technology*
Componen
t
dimension
0
Initial
Eigenvalues
*authors calculations
Acknowledgements
Extraction Sums <strong>of</strong> Squared
Loadings
Cumulative
% <strong>of</strong> Cumulative
Total % <strong>of</strong> Variance
% Total Variance %
1 2,039 22,660 22,660 2,039 22,660 22,660
2 1,898 21,093 43,753 1,898 21,093 43,753
3 1,522 16,916 60,669 1,522 16,916 60,669
4 1,106 12,293 72,962 1,106 12,293 72,962
5 ,884 9,821 82,783
6 ,761 8,459 91,242
7 ,402 4,462 95,703
8 ,240 2,662 98,366
9 ,147 1,634 100,000
This work was supported by CNCSIS –UEFISCSU, projects numbers PNII – IDEI code 1814/2008 ,
financing contract 763/2009 and PNII-IDEI code 1809/2008, financing contract 857/2009
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698

HRM Practices and Individual Knowledge-Sharing: An
Empirical Study <strong>of</strong> Higher Education Institutions in
Pakistan
Salman Iqbal, Paul Toulson and David Tweed
School <strong>of</strong> Management, Massey University, Manawatu Campus, Palmerston
North, New Zealand
S.Iqbal@massey.ac.nz
P.Toulson@massey.ac.nz
D.M.Tweed@massey.ac.nz
Abstract: The increasing interest around human resource management (HRM) is a reflection <strong>of</strong> a significant
body <strong>of</strong> empirical research examining <strong>the</strong> impact <strong>of</strong> different HRM practices on organisational capabilities through
knowledge management (KM). The information age heralds <strong>the</strong> idea that <strong>the</strong> most important source <strong>of</strong>
competitive advantage is knowledge. Therefore, managers need to understand <strong>the</strong> value <strong>of</strong> knowledge as an
intangible asset in organisations in addition to traditional tangible assets. Several studies have addressed issues
related to KM at various levels within organisations and between various organisational sectors. Little evidence is
available about <strong>the</strong> relationship between HRM practices and organisational capability from developing countries
like Pakistan. In knowledge intensive organisations, higher educational institutions serve as a human capital pool
<strong>of</strong> knowledge and are no longer just providing knowledge transfer to students. Knowledge sharing practices and
learning strategies (i.e. KM) are gaining acceptance in <strong>the</strong> field <strong>of</strong> education. Several studies have examined
issues in <strong>the</strong> wider context <strong>of</strong> knowledge sharing between employees <strong>of</strong> organisations. However, research in <strong>the</strong>
area <strong>of</strong> knowledge sharing between university faculty staff has been ra<strong>the</strong>r limited. This paper identifies and
analyses major factors for knowledge-sharing among faculty members in higher educational institutions in order
to examine how <strong>the</strong>se factors influence capability. Our main research question is: how do HRM practices affect
organisational capabilities when mediated by knowledge sharing practices. Previous research indicates that
knowledge embedded in people (tacit knowledge) can be utilised much more efficiently and effectively, if
knowledge sharing practices are applied to enhance organisational capabilities. Based on an extensive review <strong>of</strong>
literature, measures <strong>of</strong> knowledge sharing and HRM practices are identified. Earlier, we presented a conceptual
model at <strong>the</strong> 7th ICICKM 2010, Hong Kong; <strong>the</strong> current paper is an application <strong>of</strong> <strong>the</strong> conceptual model along
with a dataset, empirical analysis, results and future suggestions. Primary data was collected through a
quantitative cross sectional survey from a sample <strong>of</strong> full time teaching staff <strong>of</strong> both public and private universities
in <strong>the</strong> Punjab, Pakistan. Our analysis reveals that HRM practice is positively correlated with employees
knowledge sharing and interrelated and organisational capability. Our results provide useful insights to
management <strong>of</strong> higher education institutions to encourage knowledge sharing among teaching staff. We suggest
this paper can add a valuable contribution, given that <strong>the</strong>re is a dearth <strong>of</strong> empirical studies <strong>of</strong> this nature focusing
on <strong>the</strong> sub-continent region. We <strong>of</strong>fer directions for future research to study <strong>the</strong> relationship between HRM
practices and organisational capability.
Keywords: HRM practices, knowledge sharing, higher education institutions, organisational capability
1. Introduction
Human resource management (HRM) practices can improve <strong>the</strong> assimilation and development <strong>of</strong>
knowledge already residing in an organisation. They can improve <strong>the</strong> search and exploration for
knowledge previously unavailable within <strong>the</strong> organization, and improve <strong>the</strong> knowledge base. HRM
practices assist employees’ motivation and commitment and improve <strong>the</strong>ir performance to an extent
that as human resources (HR), <strong>the</strong>y become difficult to replace, thus giving <strong>the</strong> organisation an
advantage over its competitors in <strong>the</strong> marketplace (Huselid, 1995).
It has been suggested that knowledge that resides within individual employees (tacit knowledge)
plays a pivotal role in <strong>the</strong> improvement <strong>of</strong> organisational capability expressed as organisational
performance (Fitz-enz, 2000). Currently, knowledge is regarded as a factor <strong>of</strong> production toge<strong>the</strong>r
with land, labour, and capital and is recognised as <strong>the</strong> most important resource in an organisation
(Nahapiet & Ghoshal, 1998). Compared with o<strong>the</strong>r knowledge intensive organisations, higher
education institutions serve as reservoirs <strong>of</strong> knowledge and are no longer just providing knowledge to
students. Information sharing and learning strategies (KM) are gaining acceptance in <strong>the</strong> field <strong>of</strong>
education (Nodine, 2003). These institutions manage, blend, and share knowledge among <strong>the</strong> faculty
staff. So knowledge sharing is inevitably challenging and an important concept in higher learning
institutions. However, comprehensive research in <strong>the</strong> area <strong>of</strong> knowledge sharing among university
faculty staff has been ra<strong>the</strong>r limited (Sohail & Daud, 2009).
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Salman Iqbal et al.
The purpose <strong>of</strong> this paper is to examine <strong>the</strong> factors and barriers that contribute to knowledge sharing
practices among teaching staff in private and public higher institutions <strong>of</strong> education in Pakistan. In
this paper, we present background information on Pakistani higher education institutions, followed by
our research methodology and results. We finish with conclusions and <strong>the</strong> future implications <strong>of</strong> this
research.
2. Knowledge management in higher education institutions
Polanyi (1958) was among <strong>the</strong> first to define tacit knowledge as personal and unspoken embedded in
an individual. Tacit knowledge sharing activities among individual employee’s involves <strong>the</strong> conversion
<strong>of</strong> <strong>the</strong>ir personal tacit knowledge to <strong>the</strong> organisation thus adding value (Haldin-Herrgard, 2000).
Investment on sharing tacit knowledge activities can improves organisational performance and allows
employees to use <strong>the</strong>ir own relevant knowledge and to obtain <strong>the</strong> set targets in specific time frame
(Iqbal, Toulson, & Tweed, 2010b). Few researchers have investigated employees’ knowledge sharing
in academic institutions (Sohail & Daud, 2009). Academic activities like teaching and research can be
supported through suitable and effective knowledge management in universities (Cronin, (2001).
Managing employees’ knowledge in higher education institutions is just as essential as it is in o<strong>the</strong>r
non-academic organisations. (Milam Jr, 2001) suggests that if knowledge is managed effectively, it
can lead to improved capabilities, <strong>the</strong> reduction <strong>of</strong> product development cycle time (i.e. curriculum
development and research), improved academic services, and reduced costs. KM in universities has
several benefits including: increased competiveness, reduced turnaround time for research, improved
speed <strong>of</strong> curriculum development, and faculty learning (Milam Jr., 2001).
Faculty members possess both tacit and explicit knowledge. (Nonaka & Takeuchi, 1995) suggest that
tacit knowledge cannot be expressed in any tangible form. It is obtained by faculty through teaching
activities, or as a result <strong>of</strong> pr<strong>of</strong>essional experience, including research. Tacit knowledge includes
cognitive skills, problem-solving ability, and <strong>the</strong>ir capability to conduct research. Explicit knowledge,
however, is expressed in specific, tangible formats like research reports, manuals, teaching guides,
and academic publications. Seonghee and Boryung (2008) suggest that faculty members are
concerned mainly with teaching and research activities. As a result, <strong>the</strong>y have course related
resources <strong>of</strong> high scholarly value. Hence, scholarly collaboration among faculty members increases
<strong>the</strong>ir effectiveness in terms <strong>of</strong> <strong>the</strong>ir academic capabilities.
2.1 Higher education institutions in Pakistan
HRM practices are positively linked with organisational and employee capability (Tessema & Soeters,
2006). Little empirical research has been done to examine how HRM practices are linked to
organisational and individual capability in developing countries like Pakistan (Shahzad, Bashir, &
Ramay, 2008). Pakistan is an ‘under-researched’ country in <strong>the</strong> field <strong>of</strong> HRM practices (Aycan, et al.,
2000) . This research paper is an empirical examination <strong>of</strong> <strong>the</strong> relationships among HRM practices
and capability in Pakistani university teachers.
By <strong>the</strong> mid 1980s, private educational institutions In Pakistan were allowed to operate on <strong>the</strong> basis
that <strong>the</strong>y comply with government-recognised standards. The Higher Education Commission (HEC) <strong>of</strong>
Pakistan recognises 132 institutions, 72 <strong>of</strong> which are public universities and 56 are private
universities. The HEC is <strong>the</strong> supervisory body <strong>of</strong> higher education in Pakistan; it has facilitated <strong>the</strong>
development <strong>of</strong> Pakistan’s higher educational system through faculty development programmes and
by <strong>of</strong>fering hundreds <strong>of</strong> doctoral scholarships to faculty members and individuals abroad each year.
Its main objective is to upgrade Pakistan’s universities to achieve recognition as world-class centres
<strong>of</strong> education, research and development through <strong>the</strong> building <strong>of</strong> a knowledge based economy in
Pakistan (HEC, 2011).
3. Research design
Our study, <strong>the</strong>refore, has two objectives: to determine <strong>the</strong> relationship between HRM practices and
individual knowledge-sharing among faculty members <strong>of</strong> both public and private sector universities in
Pakistan; and to investigate if <strong>the</strong>re is any relationship between HRM practices and capability in
Pakistani universities.
Theoretical model <strong>of</strong> <strong>the</strong> study
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Salman Iqbal et al.
Our conceptual model as shown in (Fig. 1) (Iqbal, Toulson, & Tweed, 2010a), examines
organisational capability as an outcome <strong>of</strong> HRM practices at both strategic and operational levels.
The independent (input) variable in <strong>the</strong> model is HRM practices while employees’ knowledge sharing
plays <strong>the</strong> role <strong>of</strong> mediator. The dependant (output) variables are organisational capability and
individual capability.
Figure 1: Conceptual model (source: Iqbal, Toulson and Tweed, 2010)
3.1 Methodology
A cross-sectional survey was used to collect data from full time teaching staff in 13 different Pakistani
universities. The respondents were individual teaching staff from both <strong>the</strong> private and public domain.
The methodology <strong>of</strong> research employed was through personally administered survey questionnaires.
3.2 Survey instrument development
A survey instrument developed specifically for this study was based on previous literature, as shown
in table 1. The survey instrument items were adapted from previous studies. However, some
questionnaire items designed specifically for this study. Items validated by previous studies were
fur<strong>the</strong>r tested for reliability. The instrument was in two sections. The first section sought demographic
information about <strong>the</strong> respondents and included questions to establish age, gender, educational
qualifications, length <strong>of</strong> employment, and number <strong>of</strong> employees in <strong>the</strong> organisation. The second
section consists <strong>of</strong> statements to measure this study’s dimensions proposed in <strong>the</strong> model in Figure 1.
Five-point Likert scale items anchored to 1 (strongly disagree) and 5 (strongly agree) were used. The
questionnaire had 70 items including Likert scale items.
Table 1: Measurements <strong>of</strong> variables in Instrument
Construct Dimension Items description References
HRM practices
Recruitment
&
Selection
Collaboration
&
Communication
Item1-4( process)
Item 5-8( process)
Item 9-14 (process)
*Item 15- ( p-o)
Item 1-3 (participation)
*Item 4-8 (teamwork)
Item 9-11( social- capital)
701
(Kuldeep, 2004)
(Edgar & Geare, 2005)
(Lepak & Snell, 2002)
----------------
(Kuldeep, 2004)
--------------
(Youndt, 2004)

Rewards
&
Recognition
Salman Iqbal et al.
Item1-6 (fairness)
Items7-9 (process)
(Sweeney & McFarlin, 2005)
(Balkin & Gomez-Mejia, 1990)
Item 10-12 (recognition) (Davenport & Prusak, 1998)
Construct Dimension Items description References
Knowledge sharing
Trust
Organisational
capability
Sharing
Donating and
collecting
Interpersonal
Competence-
based
Innovation
*Items were designed by researchers
3.3 Data collection
Items 1-3 (experience) item
4-6 (information)
Item 7-16
Item1-3(peers), and Item4-
5( management)
Item 6-8
*Item 9-10
Items 1-5 (product and
services)
Item 6-7 (storage)
(Bock, Zmud, Kim, & Lee, 2005),
(Reychav & Weisberg, 2009)
(Van den Ho<strong>of</strong>f & Van Weenen,
2004)
(Cook & Wall, 1980)
(Mooradian, Renzl, & Matzler,
2006)
--------------
(Shu-hsien, Wu-Chen, & Chih-
Chiang, 2007),(Tsai, Huang, &
Kao, 2001)
(Youndt, 2004)
The sample frame comprised <strong>of</strong> all full time teaching staff members from both public and private
Pakistani universities. Faculty members who agreed to participate were provided with <strong>the</strong>
questionnaire in person by <strong>the</strong> principal researcher. This was due to a preference for formality, as well
as to maximise <strong>the</strong> response rate. This process involved several personal visits and follow-up calls
after <strong>the</strong> distribution <strong>of</strong> <strong>the</strong> questionnaire. The participants were full time university teachers from 13
different universities in <strong>the</strong> Punjab province, Pakistan. A simple random sampling technique was
applied to <strong>the</strong> Pakistani university database to select a suitable number <strong>of</strong> respondents. 400
questionnaires were distributed, and 264 usable questionnaires gave a response rate <strong>of</strong> 66%. This
response rate is considered to be relatively high since no incentives (e.g. prize draw) were used to
increase <strong>the</strong> response rate. The questionnaire was relatively long. Baruch (1999) suggests that <strong>the</strong>
average response rate is 55.6% in academic studies based on 175 studies reported in journal
publications,
4. Results
4.1 Factor analysis
The 70 items <strong>of</strong> <strong>the</strong> questionnaires were factor-analysed using PASW version 18. Field (2005)
suggests that factor analysis is an excellent statistical technique to investigate <strong>the</strong> underlying
structure <strong>of</strong> a survey instrument. The initial principal components’ factor analysis was run with
eigenvalues set at > 1 to a maximum <strong>of</strong> 25 iterations. This resulted in <strong>the</strong> identification <strong>of</strong> 18
components with many multiple loading items, which accounted for 70.45% <strong>of</strong> total variance. The
results showed that <strong>the</strong> Kaiser- Meyer-Olkin Measure (KMO) <strong>of</strong> sampling adequacy value was above
0.860, and <strong>the</strong> Bartlett’s test <strong>of</strong> Sphericity is significant (P=0.00), <strong>the</strong>refore, factor analysis was
appropriate. Kaiser’s criterion, extracted too many components, <strong>the</strong>refore, it was important to look at
<strong>the</strong> Scree plot provided by PASW. An inspection <strong>of</strong> <strong>the</strong> Scree plot revealed a clear break in <strong>the</strong> trend
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Salman Iqbal et al.
for eigenvalues after <strong>the</strong> sixth component. Using Catell’s scree test (Pallant, 2007), we decided to
retain six components for fur<strong>the</strong>r investigation. A six-factor solution was preferred because <strong>of</strong> an
insufficient number <strong>of</strong> primary loadings and <strong>the</strong> difficulty <strong>of</strong> interpreting factor loadings for less than or
more than six factors.
Factor rotation was <strong>the</strong>n used to present <strong>the</strong> pattern <strong>of</strong> loadings. These six factors were rotated
through initially using promax (oblique) and later through varimax rotation (to aid interpretation) with
Kaiser normalisation. The results showed both rotations were almost identical. Factor scores based
on <strong>the</strong> promax (oblique) rotation were used for fur<strong>the</strong>r data analysis. In this research, items did not
cluster as expected. The new factors were different from constructs <strong>of</strong> <strong>the</strong> conceptual model. Both <strong>the</strong>
pattern and structure matrices were examined for interpretation, new components with a combination
<strong>of</strong> multiple dimensions were established and revealed <strong>the</strong> presence <strong>of</strong> several cross loading factors
as shown in Table 2.
Component 1 was made up <strong>of</strong> those items which addressed <strong>the</strong> perceived value <strong>of</strong> collaboration, trust
and feedback. We labelled this as ‘Collaboration& Communication’. It was clear when analysing
items comprising Component 2, that this incorporated all questions relating to employees’ ‘knowledge
sharing’ activities, we labelled this component ‘Employees’ knowledge sharing’. Component 3
incorporated items concerned with <strong>the</strong> capability <strong>of</strong> an organisation. We called this ‘Organisational
Capability’ because it demonstrates that organisational innovative new product and services and
novel skills are required to compete in <strong>the</strong> market. We called Component 4 ‘Rewards systems’ which
is about employees’ monetary and non-monetary incentives from management for successful
knowledge sharing. It is clear that component 5 incorporated items that addressed both individual
and organisational level recognition; we labelled Component 5, ‘Recognition’. Component 6
incorporated <strong>the</strong> items relating to organisational support and structures and we labelled this as
‘Organisational policies’.
Table 2: Structure Matrix, Promax rotation
Component
1 2 3 4 5 6
51.Colleagues tell me <strong>the</strong>ir skills .788 .416
13. places priority on candidate’s potential .783 .401 .486 .441
62. Trust o<strong>the</strong>r opinions due to <strong>the</strong>ir competence. .760 .407 .476
49-Sharing knowledge is normal in company. .734 .583 .491
9. The recruitment assesses <strong>the</strong> candidate’s knowledge and
experience.
.733 .413
46.I <strong>of</strong>ten share with my colleagues <strong>the</strong> new working skills that I
learn.
.717
47-My colleagues <strong>of</strong>ten share new working skills. .713 .582 .401
50.I share <strong>the</strong> information within my department, when <strong>the</strong>y ask me
to.
.709
61.Most <strong>of</strong> my peers can be relied upon to do as <strong>the</strong>y say <strong>the</strong>y will
do.
.697
40.I frequently collect knowledge from o<strong>the</strong>rs based on <strong>the</strong>ir
experience.
.678 .539 .401
36.Our employees are skilled at collaborating to diagnose and solve
problems.
.665 .501 .555 .476
27. I respect o<strong>the</strong>rs’ impression that I am willing to assist people. .664 .409
53.Colleagues outside <strong>of</strong> my department tell me what <strong>the</strong>ir skills are .663 .569
60.If I get into difficulties at work, my colleagues would try and help
me out.
.660 .411
52.I share <strong>the</strong> information outside <strong>of</strong> my department, when <strong>the</strong>y ask .646
me to
54. If I got into difficulties at work my colleagues would try and help
me out.
.643 .449
12.The recruitment/selection process involves screening many job
candidates.
.600 .425
55. I can trust <strong>the</strong> people I work with to lend me a hand if I needed. .592
Component
1 2 3 4 5 6
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Salman Iqbal et al.
10.The recruitment process emphasises <strong>the</strong> candidate’s ability to
collaborate
.589
32. In my organisation employees’ always share <strong>the</strong>ir experiences in
casual meetings.
.578 .551 .497
56. Most <strong>of</strong> my colleagues can be relied upon to do as <strong>the</strong>y say <strong>the</strong>y
will do.
.567 .522 .429
35. My organisation supports cross-functional team work for learning
through collaboration.
.552 .425
33.In my organisation employees’ always share <strong>the</strong>ir experiences in
formal teamwork.
.510 .486 .491
4.The selection system selects those having <strong>the</strong> desired knowledge
and skills
.497
63.I always listen to my team- mates’ opinions irrespective <strong>of</strong> <strong>the</strong>ir
competence.
.494 .401
8. This organisation does NOT need to change to <strong>the</strong> way it recruits
people.
.482
5. Favoritism is not evident in any <strong>of</strong> <strong>the</strong> recruitment decisions made
here.
.458
7.All appointments in this organisation are based on .440 .428
43.People in my organisation frequently collect knowledge <strong>of</strong> knowwhere
or know-whom with o<strong>the</strong>r organisational members.
.465 .731
39.People in my organisation share knowledge based on <strong>the</strong>ir
experience.
.436 .700
48. My colleagues <strong>of</strong>ten share with me <strong>the</strong> new information <strong>the</strong>y
acquire.
.474 .606
45.I <strong>of</strong>ten share with my colleagues <strong>the</strong> new information I acquire. .415 .603
41.I frequently share knowledge based on my experience .427 .587
42.People collect knowledge from o<strong>the</strong>r organisational members. .517 .573 .426
34.Employees’ always share <strong>the</strong>ir experiences o<strong>the</strong>r departmental
members.
.558 .419
44.People share knowledge <strong>of</strong> know-where or know-whom with o<strong>the</strong>r .524
members.
.554
18. Monetary rewards I receive for sharing knowledge are excellent. .553
14.The recruitment/selection uses many different recruiting .431 .427
68.Our company develops novel skills for new products in <strong>the</strong>
market.
.409 .697
28.Employees are allowed to make decisions related to cost and
quality matters
.475 .656
23. My company is committed to a merit pay system. .411 .646 .493
67Our company launches new products or services faster than our
competitors.
.547 .639 .464
66.The new products or services always arouse imitation from
competitors.
.638
37. Our employees share information and learn from one ano<strong>the</strong>r. .523 .433 .601
69. Our organization uses patents and licenses as a way to store
knowledge.
.586
65. Our company’s pr<strong>of</strong>its are generated by <strong>the</strong> new products and
services
.585 .432
38. Our employees interact with people from different areas <strong>of</strong> <strong>the</strong>
company.
.495 .530 .554 .401
31. Employees’ prefer to share <strong>the</strong>ir experiences in face to face
interactions.
2. In our organisation, line managers and HR managers participate in
selection.
30.Employees are provided opportunities to suggest
29.Employees in this organisation are asked by <strong>the</strong>ir superiors to
participate
.485 .549
20. am satisfied with <strong>the</strong> non-monetary rewards .427 .721
22. Pay raises are determined mainly by an employees' job
performance.
.692
19. Non-monetary rewards to employees for sharing knowledge are
fair.
.688
Component
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Salman Iqbal et al.
1 2 3 4 5 6
21. Non-monetary rewards I receive for sharing knowledge are
excellent.
.412 .666
16. Monetary rewards to employees for sharing knowledge are fair.
17. I am satisfied with <strong>the</strong> monetary rewards
15. My organisation <strong>of</strong>fers trial period for new employees
.533 .487 .607
25.I want to be a pr<strong>of</strong>essional in <strong>the</strong> eyes <strong>of</strong> my colleagues. .617
64. Our company <strong>of</strong>ten develops products and services accepted by
<strong>the</strong> market.
.572
1. The selection systems are highly scientific and rigorous. .502
59.I can trust <strong>the</strong> people I work with to lend me a hand if needed. .462
26.I think knowledge sharing can help to establish my image as an
expert.
6. Interview panels are used during <strong>the</strong> staffing process in this
organisation.
.436
58.I feel quite confident that <strong>the</strong> firm will always try to treat me fairly . .684
70.Knowledge and information is embedded in structure, and
processes.
.664
57.Management is sincere to meet <strong>the</strong> employees’ points <strong>of</strong> view. .446 .462 .485 .587
11.The recruitment/selection selects <strong>the</strong> best all round candidates, .542
24.An employees' seniority does NOT enter into pay decisions. .409 .470 .416 .535
3.Valid and standardized tests are used when required in <strong>the</strong>
selection process.
.474
The new factors have good internal consistency, with a Cronbach alpha coefficient reported in Table 3.
Table 3: reliability <strong>of</strong> new factors
4.2 Correlation
New factor label No. <strong>of</strong> items Cronbach's Alpha
Collaboration & Communication
Employees’ knowledge sharing
Organisational Capability
Reward systems
Recognition
Organisational policies
After <strong>the</strong> factors were extracted, <strong>the</strong> correlations between <strong>the</strong>m were compared using a Pearson
product- momentum correlation to determine <strong>the</strong> nature <strong>of</strong> <strong>the</strong> relationship between <strong>the</strong>m. Correlation
scores indicate <strong>the</strong> degree to which two variables measure <strong>the</strong> same construct, and vary between
+1.00, which can be considered a perfect positive correlation, whereas, –1.00, indicates a perfect
negative correlation. A score at or close to 0.00 indicates no or very little correlation between scores
(Field, 2005).4 Table 4 shows <strong>the</strong> resultant correlations.
The relationship between HRM practices, employees’ knowledge sharing and organisational
capability as investigated using Pearson product- momentum correlation. Preliminary analyses were
performed, There are significant and positive correlations between collaboration and communication,
employees’ knowledge sharing and organisational capability at p < 0.01 [r= 0.485, 0.487, and 0.445,
respectively where n=260]. Only, recognition has negative and weak relationships with o<strong>the</strong>r
constructs.
5. Discussion and conclusions
This is an initial data analysis we suggest that our findings are generalisable to all Pakistani higher
education institutions <strong>the</strong>y are controlled by <strong>the</strong> federal government under <strong>the</strong> Higher Education
Commission (HEC), with similar policies across Pakistan. Also <strong>the</strong> demographics <strong>of</strong> our study’s
respondents are similar to university teachers in o<strong>the</strong>r parts <strong>of</strong> Pakistan. However, future research
through a national sample can confirm it.
705
28
9
10
7
5
6
0.95
0.81
0.84
0.75
0.60
0.73

Table 4: Correlations
Collaboratio
n
&
communicati
on
Employees’
knowledge
sharing
Organisatio
nal
capability
Rewards
systems
Recognition
Organisatio
nal policies
Salman Iqbal et al.
Collaboration Employee
Reward
&
s’
s
Organis
communication knowledg Organisation system Recogniti ational
e sharing al capability s on policies
Pearson
Correlation
1 .485 ** .487 ** .445 ** -.070 .355 **
Sig. (2-tailed) .000 .000 .000 .258 .000
N 260 260 260 260 260 260
Pearson
Correlation
.485 ** 1 .346 ** .339 ** .087 .215 **
Sig. (2-tailed) .000 .000 .000 .161 .000
N 260 260 260 260 260 260
Pearson
Correlation
.487 ** .346 ** 1 .353 ** -.097 .326 **
Sig. (2-tailed) .000 .000 .000 .120 .000
N 260 260 260 260 260 260
Pearson
Correlation
.445 ** .339 ** .353 ** 1 -.098 .273 **
Sig. (2-tailed) .000 .000 .000 .113 .000
N 260 260 260 260 260 260
Pearson
Correlation
-.070 .087 -.097 -.098 1 -.106
Sig. (2-tailed) .258 .161 .120 .113 .087
N 260 260 260 260 260 260
Pearson
Correlation
.355 ** .215 ** .326 ** .273 ** -.106 1
Sig. (2-tailed) .000 .000 .000 .000 .087
N 260 260 260 260 260 260
**. Correlation is significant at <strong>the</strong> 0.01 level (2-tailed).
Our initial findings suggest that recognition as a motivational technique to share knowledge appears
to be less effective, because <strong>the</strong> correlation between recognition and <strong>the</strong> o<strong>the</strong>r constructs is weak.
Our findings suggest that teachers’ performance in Pakistani universities appears not to be motivated
by recognition because Pakistan is a developing country with low per capita income. Consequently,
Pakistani employees prefer financial rewards and compensation ra<strong>the</strong>r than recognition alone.
Reward systems are significantly correlated with collaboration and employees knowledge sharing
[r=0.445 and 0.339] in Pakistani universities. This suggests a strong positive relationship between
collaboration and knowledge sharing. These initial findings are consistent with previous studies
(Riege (2007), Song (2009) and Shahzad, Bashir and Ramay (2008). Currently, <strong>the</strong> HEC <strong>of</strong> Pakistan
has announced attractive salary packages and research funds for university teachers, which is a very
positive step (given our findings so far) to enhance teachers’ performance (HEC, 2011).
Collaboration and communication has a significant correlation [r=0.487, n=260] with organisational
(universities) capability. This finding is consistent with previous work on knowledge creativity and
organisational learning (Hsu, 2008; Ipe, 2003). Employees’ knowledge sharing activities are positively
correlated with collaboration and organisational (university) capability [r=0.485, and 0.346]. This
finding is consistent with previous studies <strong>of</strong> knowledge sharing among university teachers in o<strong>the</strong>r
Asian countries including: Sohail and Daud (2009) in Malaysia, and Seonghee and Boryung (2008) in
South Korea.
Higher education institutions are knowledge intensive organisations, where key activities are
associated with knowledge sharing, dissemination and learning. This paper has examined <strong>the</strong>
concepts <strong>of</strong> HRM practices in Pakistani higher education institutions. An important feature that is
common in higher education institutions is that knowledge is considered to be a power, since it is an
important asset which decides <strong>the</strong> employability <strong>of</strong> individuals (Rowley, 2000). However, Pakistani
government and policy makers have facilitated knowledge-sharing culture to push academic
institutions towards <strong>the</strong> knowledge revolution. Knowledge-based collaboration could also be
enhanced if <strong>the</strong> managers (university administrators) play a positive role by encouraging <strong>the</strong>ir
teaching staff to share personal experiences and success stories by organising open discussions,
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Salman Iqbal et al.
forums, seminars or colloquiums. Fur<strong>the</strong>r, effective knowledge management may require a shift from
classical HRM practices to knowledge based including employees participation, organisational
support and revised knowledge based reward systems.
6. Future research
While <strong>the</strong> findings <strong>of</strong> this study are based on data collected from Pakistani universities, one must
apply caution when generalising <strong>the</strong> findings beyond Pakistan. A comparative study should also be
undertaken to see <strong>the</strong> difference between developing and developed countries, particularly “western
values” countries. In future, questions that need to be asked include: to what extent does each <strong>of</strong> <strong>the</strong>
HRM practices impact on individual capability? Finally, this research paper can provide help to senior
managers (especially human resource managers); to better understand how HRM practices can
encourage knowledge sharing behaviour.
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708

Components <strong>of</strong> Knowledge Management in Designing a
Health Volunteer Network for an Alcohol Drinking Behavior
Modification Learning System
Thunyaporn Jaimung and Pitipong Yodmongkon
College <strong>of</strong> Arts, Media, and Technology, Chiang Mai University
th1<strong>8th</strong>18@hotmail.com
pitipong@camt.info
Abstract: Currently, many countries including Thailand are facing problems related to alcohol drinking behavior.
In 2008, Thailand lost GDP <strong>of</strong> 1.99%, or 156,105 million baht due to alcohol related health issues. This raised
alcohol awareness <strong>of</strong> various organizations, causing <strong>the</strong>m to pay attention to <strong>the</strong> problem and seek solutions.
Village health volunteers, including knowledge workers, are close to <strong>the</strong> community and play an important role in
tackling alcohol abuse, however, Village Health Volunteers have been unable to solve this problem. As seen in
previous research, community volunteers did not have learning systems for alcohol drinking behavior
modification and also consumed excessive alcohol <strong>the</strong>mselves while under observation. This study uses
components <strong>of</strong> knowledge management to design a learning system for a health volunteer network on excessive
alcohol consumption. The research method analyses <strong>the</strong> Grameen Bank case study as well as <strong>the</strong> maternal and
child health care situation <strong>of</strong> village health volunteers across Thailand. The results <strong>of</strong> <strong>the</strong> analysis reveal that
maternal instinct characteristic traits are vital in <strong>the</strong> effectiveness <strong>of</strong> village health volunteers in tackling alcohol
abuse, driven by <strong>the</strong> knowledge worker and based on communities <strong>of</strong> practice for alcohol learning improvements
to teenagers. Finally, <strong>the</strong> results <strong>of</strong> data collection are used to design and create a persuasive concept in order to
implement this model for increasing learning regarding alcohol drinking modification for village health volunteers.
Keywords: knowledge management, maternal instinct, communities <strong>of</strong> practice, alcohol intervention primary
1. Introduction
Alcohol issues have long been a serious problem in Thailand despite several attempts to solve <strong>the</strong>m.
The reduction rates in alcohol health problems appear to be unsatisfactory. Reseach from Youngkong
(2008), may help clarify <strong>the</strong> possible explanation in that alcohol consumption is attributed to a
misconceived belief that it will benefit health. Even if individuals realize <strong>the</strong> effects on health and
society, it seems that alcohol is valued among drinkers. Alcohol consumption can cause serious
illnesses and premature death as shown in <strong>the</strong> HITAP (Health Intervention and Technology
Assessment Program) report (2008). Data shows that alcohol consumption was ranked in <strong>the</strong> top five
<strong>of</strong> <strong>the</strong> world and caused significant government expenses. In Thailand, statistics have shown that in
2008 it was estimated 156,105 million baht was spent on alcohol, and this trend is likely to rise
(Tavorncharoensap, 2008). Alcohol consumption has severely crippled Thailand as a whole.
Concerned with this serious issue, <strong>the</strong> Thai government has implemented sustainable solutions with
clear aims, and effective strategies by responding to what <strong>the</strong> World Health Organization (WHO) and
United Nations <strong>International</strong> Children’s Emergency Fund (UNICEF) suggested in <strong>the</strong>ir healthcare
strategy.
The World Health Organization (WHO) and United Nations <strong>International</strong> Children’s Emergency Fund
(UNICEF) have called for a return to <strong>the</strong> declaration <strong>of</strong> Alma-Ata, <strong>the</strong> Soviet international conference
on Primary Health Care and signed <strong>the</strong> charter <strong>of</strong> <strong>the</strong> WHO determinate to “Health for All by The Year
2000” (WHO, 1978). Thailand, with <strong>the</strong> aim to achieve a sufficiency health care system, good health,
good services, good society, and ultimately sufficiency and happiness, has adopted <strong>the</strong> WHO and
UNICEF declarations.
According to <strong>the</strong> 10th National Economic and Social Development Plan, Thailand aims to achieve <strong>the</strong>
“green and happiness society.” The Primary health care system has been a key strategy in tackling
<strong>the</strong> problem <strong>of</strong> alcohol consumption, in <strong>the</strong> 4th National Health Development Plan (1977-1981), and
<strong>the</strong> Thai government setup a “Public Health Fund.” In addition, <strong>the</strong> government has setup a
Community Primary Health Care Center (CPHCC) under <strong>the</strong> Ministry <strong>of</strong> <strong>the</strong> Public Health, and in
order to achieve public participation, volunteer groups have been created. The structure <strong>of</strong> CPHCC
comprises <strong>of</strong> Community Health Workers (CHW), and Village Health Volunteers (VHVs). CHWs are
responsible for educating and training VHVs in areas such as villages, in health promotion prevention,
basic medical care, and rehabilitation.
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Thunyaporn Jaimung and Pitipong Yodmongkon
To streng<strong>the</strong>n <strong>the</strong> working process, <strong>the</strong> government envisages a successful outcome by encouraging
a collaboration between government agencies. One successful collaboration is setting up <strong>the</strong>
Community Centre (CC) between <strong>the</strong> Department <strong>of</strong> Social Development, and Welfare in <strong>the</strong> Ministry
<strong>of</strong> Social Development and Human Beings. CC (or Sala Sang Suk in Thai), which means a shelter for
happiness, has joined forces with <strong>the</strong> Community Primary Health Care Centre (CPHCC) <strong>of</strong> <strong>the</strong>
Ministry <strong>of</strong> Public Health.
One <strong>of</strong> <strong>the</strong> key factors in achieving <strong>the</strong> aim <strong>of</strong> improving health care is human resources. The key
driver is <strong>the</strong>refore Village Health Volunteers (VHVs), who play an important role in <strong>the</strong>ir local
community and work closely with <strong>the</strong>ir own people. To equip VHVs with proper tools in understanding
<strong>the</strong> problems <strong>the</strong>y face, VHVs need to acquire knowledge, particularly related to alcohol consumption.
Understanding <strong>the</strong> complex behaviour patterns also needs to be addressed with a long term solution.
In o<strong>the</strong>r words, existing knowledge is not sufficient in coping with <strong>the</strong> steady increase in alcohol
consumption within <strong>the</strong> rapidly changing society in Thailand. An effective model is needed to help
solve this challenging problem. Hence, it is vital to understand <strong>the</strong> <strong>the</strong>ory in developing <strong>the</strong> tools and
methodologies in order to create new systematic knowledge for reshaping people’s views, attitudes,
and behaviour towards alcohol.
Rhode et al (2008) have reported an interesting insight in <strong>the</strong> reduction in mo<strong>the</strong>r and child mortality
rates at <strong>the</strong> Alma-Ata international conference held by WHO, which called for <strong>the</strong> return <strong>of</strong> a Primary
Health Care System. From 1981 to 2006, <strong>the</strong> rates <strong>of</strong> mo<strong>the</strong>r and child mortality dropped from 7.3 to
2.9 percent. The report has shown <strong>the</strong> key factor in <strong>the</strong>se reductions is <strong>the</strong> strong involvement
between <strong>the</strong> CHWs and VHVs. What can be presumed as core truth in this research is that most
CHWs and VHVs are women. There is a possibility between <strong>the</strong> role <strong>of</strong> <strong>the</strong> women and <strong>the</strong> traits <strong>of</strong>
women in reducing child mortality rates. The starting point <strong>of</strong> this research is investigating <strong>the</strong>ories
about women, in particular relating to mo<strong>the</strong>rhood and maternal instinct.
Gomard and Paranad (2007) researched <strong>the</strong> potential <strong>of</strong> VHVs, <strong>the</strong> surveillance <strong>of</strong> violence in women
and children, <strong>the</strong> care by <strong>the</strong> elderly, and <strong>the</strong> tasks <strong>of</strong> resolution and honesty. It is possible that, since
Village Health Volunteers are mainly females, <strong>the</strong>y have some skill potential. The investigation
showed VHVs would do well in tasks with women and children, might be mainly female, and most <strong>of</strong>
<strong>the</strong>m have obligations to children. Additionally, <strong>the</strong>y have roles and responsibilities <strong>of</strong> caring for
villagers. In <strong>the</strong> past, supportive data showed that instinct as a mo<strong>the</strong>r (maternal instinct) has caused
motivation and success in working for women and children because maternal instinct is a driving force
or energy which creates motivation to protect those, especially in childhood, who want to survive. In
psychology, <strong>the</strong> internal instinct is a primary driving force within <strong>the</strong> body and maternal instinct comes
from <strong>the</strong> hormone androgen in <strong>the</strong> bloodstream. Ruddick (1989) proposed that maternal instinct can
be found both in females and males. It is found mostly in females, since females have certain
characteristics in being a mo<strong>the</strong>r; such as, renunciation, resistance, reconciliation, and peacekeeping.
A mo<strong>the</strong>r has to have three main factors, firstly preservative love, secondly, fostering growth and
third, training. Mo<strong>the</strong>ring will appear when children are in pain (emotional and physical pains). All
mo<strong>the</strong>rs have a desire for well-being. This desire action can be transformed into <strong>the</strong> protection <strong>of</strong>
children to resist any assaults on body or spirit.
To achieve success in health care, <strong>the</strong> System Centre <strong>of</strong> Public Health Foundation (Community
Primary Health Care Centre) and local government (Community Centre), conceived <strong>the</strong> idea <strong>of</strong> using
VHVs as a network. These volunteers are important and work closely with citizens. The villagers
accept that volunteers have recognition and status in <strong>the</strong> modification <strong>of</strong> health behaviour. With <strong>the</strong>
changes <strong>of</strong> globalization, <strong>the</strong> role <strong>of</strong> VHVs needs to be adjusted to meet changes in economic,
societal, and political roles. Existing knowledge is not sufficient to deal with <strong>the</strong> illnesses associated
with that change, particularly health problems resulting from inappropriate behaviour, such as <strong>the</strong>
effects <strong>of</strong> alcohol consumption. Nowadays, <strong>the</strong>se health problems are occurring in many countries,
including Thailand. Problems resulting from alcohol consumption are in <strong>the</strong> top five <strong>of</strong> <strong>the</strong> world and
cause a significant loss <strong>of</strong> money. Statistics in <strong>the</strong> year 2008 showed expenses <strong>of</strong> 1.99% <strong>of</strong> GDP and
<strong>the</strong> trend was increasing.
Attempts to reduce problems caused by alcohol consumption have not reduced <strong>the</strong>ir occurrence.
When considering <strong>the</strong> Thai case, it was found that Thai people have particular beliefs which are very
wrong but inherent in society. Although alcohol consumption can adversely affect health, <strong>the</strong>re is also
research on <strong>the</strong> benefits <strong>of</strong> alcohol consumption. However, alcohol consumption causes <strong>the</strong> loss <strong>of</strong>
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Thunyaporn Jaimung and Pitipong Yodmongkon
health, economic and societal benefits. In addition, <strong>the</strong>re are continuous attempts to deal with
problems from alcohol related behaviour. This is <strong>of</strong>ten challenging for people who work in <strong>the</strong> Primary
Health Care System and it is notable how <strong>the</strong> VHVs encounter this problem. Therefore, <strong>the</strong> scope <strong>of</strong>
this study is empowering educated VHVs to resolve this issue. According to <strong>the</strong> analysis <strong>of</strong> <strong>the</strong> key
factors <strong>of</strong> successful Village Health Volunteers in dealing with problems <strong>of</strong> <strong>the</strong> effects <strong>of</strong> mo<strong>the</strong>rs and
children, a community <strong>of</strong> practice was created, based on <strong>the</strong> effects <strong>of</strong> maternal instincts <strong>of</strong> VHVs as it
related to <strong>the</strong> treatment <strong>of</strong> excess alcohol consumption. Fur<strong>the</strong>rmore, a knowledge management
system is designed, based on <strong>the</strong> components <strong>of</strong> <strong>the</strong> model for a solution to alcohol misuse, which
will <strong>the</strong>n be implemented in <strong>the</strong> community.
2. Methodology
This model framework is developed using four phases: Pre- Survey, In-depth Analysis, Case Study
Analysis and Innovation Development.
Figure1: Four phases <strong>of</strong> <strong>the</strong> methodology
The first phase: Pre Survey. The data was collected through informal interviews, focus group
discussions, observations, document analysis as well as in-depth interviews with <strong>the</strong> community in
San Pa Tong District. The selection <strong>of</strong> examples focused on a specific area, which had 18 liquor
shops and was known as <strong>the</strong> center <strong>of</strong> <strong>the</strong> village. The majority <strong>of</strong> villagers usually spend <strong>the</strong>ir time
<strong>the</strong>re in <strong>the</strong> evening. Analysis was completed by transcribing <strong>the</strong> interviews and written descriptions.
Second phase: In-depth Analysis. This phase was completed by investigating <strong>the</strong> key factors
affecting VHVs problem-solving and identifying characteristics <strong>of</strong> <strong>the</strong> successful VHVs in Maternal and
Child Health Care, and analyzing maternal instinct, including interpreting <strong>the</strong> results <strong>of</strong> <strong>the</strong> in-depth
interviews. The research instruments implemented in this phase were focus group discussions,
observations, document analysis as well as in-depth interviews.
Third phase: Case Study Analysis. This phase investigated two successful case studies: Grameen
Bank, and Maternal and Child Care in Thailand. Grameen Bank, situated in Grameen Village, was
originally developed for <strong>the</strong> poor in Jobra village in Bangladesh, whose founder, <strong>the</strong> winner <strong>of</strong> 2006
Nobel Peace Prize, is an economist. His purpose is to help <strong>the</strong> poor escape from poverty. The second
case is <strong>the</strong> performance <strong>of</strong> <strong>the</strong> group working in <strong>the</strong> Maternal and Child Health Care and had potential
to reduce <strong>the</strong> mortality rate <strong>of</strong> mo<strong>the</strong>rs and children.
Fourth phase: Innovation Development. This phase implemented successful cases from <strong>the</strong> third
phase. The result acted as a guideline by using maternal instinct as <strong>the</strong> key driver. Additionally,
knowledge management was applied in order to create innovation. Moreover, VHVs are being
developed as effective knowledge workers within <strong>the</strong> community <strong>of</strong> practice. The result <strong>of</strong> this phase
will propose a design <strong>of</strong> knowledge management based on a maternal instinct model for alcohol
modification.
3. Results
First phase: Data analysis in <strong>the</strong> Pre- Survey Phase revealed that <strong>the</strong> population <strong>of</strong> this village was
2,173. These were adults (42.48%), seniors (34.01%), adolescents (11.92%) and children (11.59%).
Most <strong>of</strong> <strong>the</strong> adults are retailers and employees. After work, during <strong>the</strong> evening, <strong>the</strong>y usually purchase
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Thunyaporn Jaimung and Pitipong Yodmongkon
alcohol and rice. Some people spend time with friends at <strong>the</strong> liquor shops. Later, <strong>the</strong> effects <strong>of</strong> <strong>the</strong>ir
behavior become problematic with 9.31% <strong>of</strong> adolescents ga<strong>the</strong>ring into groups which <strong>of</strong>ten quarrel,
fight and destroy <strong>the</strong> liquor shops. Parents agreed about <strong>the</strong> negative aspects <strong>of</strong> alcohol and <strong>of</strong>ten
have to pay compensation for damages done by <strong>the</strong>se gangs and are potentially infected with
sexually transmitted disease due to alcohol drinking behavior. This interview found that <strong>the</strong> relation <strong>of</strong>
cause, illness, alcohol drinking behavior, and age were related directly and indirectly to <strong>the</strong> effects on
<strong>the</strong>mselves and o<strong>the</strong>rs.
Figure 2 Social learning among villagers
In conclusion, this result can be based on social learning by (Bandura, 1997 ). He stated that most
people learned from <strong>the</strong> media, by observation <strong>of</strong> models and by imitation. If <strong>the</strong>y are satisfied with
<strong>the</strong> result, it will lead <strong>the</strong>m to follow <strong>the</strong>se models. Based on <strong>the</strong>se results, most adults need to
develop <strong>the</strong>ir own identity and play important roles during adolescence and childhood. Adults
continuously need to adjust <strong>the</strong>ir lives and responsibilities and <strong>the</strong>ir relationship with alcohol drinking
and social culture. It also found that knowledge workers can be useful as VHVs since this group <strong>of</strong>
workers is also responsible for community health care.
Second phase: In-depth interview. Results revealed that VHVs are close to villagers. Their
responsibility showed that a VHV must look after approximately 10 to 15 households. A point is that
<strong>the</strong>y are <strong>the</strong> same age as <strong>the</strong> target group and most <strong>of</strong> <strong>the</strong>m also consume alcohol, even though <strong>the</strong>y
are leaders in terms <strong>of</strong> health care. This excessive alcohol consumption and lack <strong>of</strong> skills and
knowledge regarding <strong>the</strong> effects <strong>of</strong> alcohol consumption is a sizeable obstacle in modifying alcohol
consumption behavior in <strong>the</strong> community. In summary, VHVs <strong>of</strong>ten do not have an effective learning
system. A potential alleviation <strong>of</strong> this might be to design and create a learning system and use
knowledge management in order to innovate a solution in <strong>the</strong> community, and prevent inappropriate
behavior imitation among adolescents and children, leading to o<strong>the</strong>r substance addictions.
Third phase: Case Study Analysis, Grameen Bank (GB). The results were compatible with <strong>the</strong>
finding <strong>of</strong> Yunus (2006), who believes that women are better borrowers, because <strong>the</strong>ir maternal
instinct means <strong>the</strong>y are likely to put <strong>the</strong>ir family first. In contrast, <strong>the</strong>re is a higher chance <strong>of</strong> a man
spending on himself once he has extra money (Yunus, 2006). Women frequently spend <strong>the</strong>ir income
in order to sustain or improve <strong>the</strong>ir children and household. GB recruits young women, mostly
graduates, to work in <strong>the</strong> bank. GB can be seen as a bank generating income for a better life <strong>of</strong> <strong>the</strong>
poor, but through <strong>the</strong> responsibility and discipline <strong>of</strong> women, whose lives would have been limited if
not for <strong>the</strong> options that GB <strong>of</strong>fer. GB helps women at <strong>the</strong> lowest spectrum <strong>of</strong> <strong>the</strong> poverty line become
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Thunyaporn Jaimung and Pitipong Yodmongkon
strong economically, socially and culturally. Dynamic conflicts between <strong>the</strong> husbands (males) and
<strong>the</strong>ir wives (females) <strong>of</strong>ten manifest <strong>the</strong>mselves but, eventually, power shifts to <strong>the</strong> wives - as through
<strong>the</strong>m <strong>the</strong> loan is possible, on <strong>the</strong> condition that <strong>the</strong> husband must allow his wife to sign <strong>the</strong> contract <strong>of</strong>
<strong>the</strong> house under her name. Physical and verbal abuse, and job deprivation towards women have
decreased and more choices have been created for women.
The maternal and child care situation in Thailand, shows <strong>the</strong> majority <strong>of</strong> VHVs are females working
mostly with childhood issues. Perhaps, this action might derive from <strong>the</strong> <strong>the</strong>ory <strong>of</strong> Hrdy (2000) in
Maternal Instinct with <strong>the</strong> characteristics <strong>of</strong> mo<strong>the</strong>rs showing <strong>the</strong>m to be sympa<strong>the</strong>tic, responsive, self
sacrificing, and charitable. Moreover, 62% <strong>of</strong> <strong>the</strong>m posses this required maternal experience.
The fourth phase: Innovation Development.
Figure 3 Knowledge management model in designing a health volunteer network for an alcohol
drinking behavior modification learning system
Firstly, <strong>the</strong> process is to analyze <strong>the</strong> characteristics <strong>of</strong> maternal instinct in VHVs in order to (1) identify
<strong>the</strong> characteristics <strong>of</strong> maternal instinct in VHVs, (2) Prove <strong>the</strong> maternal instinct can be used to affect a
health solution in a VHV group. In this process, <strong>the</strong> tools and techniques are document analysis on
“Maternal Instinct”, “survey” and “in-depth interview.” Secondly, <strong>the</strong> process is to analyze and design
maternal instinct tools for knowledge models on safe drinking in adolescents with <strong>the</strong> purpose <strong>of</strong>
selecting families to capture from different contexts; adolescent with parent, adolescent with mo<strong>the</strong>r,
adolescent with fa<strong>the</strong>r, adolescent with grandparents, adolescent with pre-adolescents and o<strong>the</strong>r
contexts and explore how <strong>the</strong> participants articulate practices to promote safe drinking through family
maternal instinct. The tools and techniques used are maximum variety sampling, in-depth interviews
with <strong>the</strong> safe drinking VHVs, The Alcohol Use Disorders Identification Test (AUDIT) and design
template knowledge model. A knowledge model based on maternal instinct for safe drinking in VHVs
is <strong>the</strong> result. This process is following <strong>the</strong> community <strong>of</strong> practice based on <strong>the</strong> maternal instinct <strong>of</strong>
VHVs.
4. Conclusion
The problem <strong>of</strong> excessive alcohol consumption in Thailand can be solved with collaboration between
government, <strong>the</strong> Department <strong>of</strong> Social Development, and <strong>the</strong> Welfare in Ministry <strong>of</strong> Social
Development and Human Beings, and <strong>the</strong> Community Primary Health Care Centre <strong>of</strong> <strong>the</strong> Ministry <strong>of</strong>
Public Health, including <strong>the</strong> VHVs. The main focus should be involving <strong>the</strong> people <strong>the</strong>mselves, as
knowledgeable individuals, and role models. They provide knowledge in terms <strong>of</strong> prevention,
protection, medical and rehabilitation to <strong>the</strong> villagers. Additionally, <strong>the</strong>y should act with appropriate
behavior, leading to a health care model and a link to suitable social learning. Hence, <strong>the</strong> VHVs are
acting as health care leaders and are close to <strong>the</strong> villagers, which is a necessary factor in order to
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Thunyaporn Jaimung and Pitipong Yodmongkon
have systematic management in learning. If <strong>the</strong>y do not have it, <strong>the</strong>y are not able to transfer
knowledge to <strong>the</strong> villagers systematically. Consequently, a knowledge system should be designed to
gain an effective tool to manage existing problems. However, this tool must have strategic
components in enhancing effectiveness.
Acknowledgements
This material is <strong>the</strong> result <strong>of</strong> work supported by resources from San Pa Tong Hospital and Ban Thung
Siao heath center. The authors would like to thank <strong>the</strong> contribution <strong>of</strong> all advisors in Chiang Mai
University and College <strong>of</strong> Arts, Media, and Technology as well as <strong>the</strong> committees.
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714

Market Capital, Intellectual Property Rights and Economic
Growth <strong>of</strong> OPEC Member Countries: A Panel Data
Approach
Iman Jokar Tang Karami, Mehdi Taghavi and Farhad Ghaffari
Department <strong>of</strong> Business Administrantion, Science and Research
Branch,Islamic Azad University, Tehran, Iran
Dr_jokar@fsriau.ac.ir
Taghavi@tu.ac.ir
Ghaffari@srbiau.ac.ir
Abstract: This paper examines <strong>the</strong> role <strong>of</strong> market capital and intellectual property rights in determining a
country’s rate <strong>of</strong> economic growth. The empirical analysis is conducted using a unique panel data set <strong>of</strong> OPEC
member countries from 1995 to 2009.In this study, initially using Conceptual framework that is a modified version
<strong>of</strong> <strong>the</strong> intellectual capital tree described by Edvinsson and Malone (1997) and introduced by Bontis(2004), market
capital variables <strong>of</strong> nations define. Then, using a model <strong>of</strong> endogenous growth, main model is stipulated and run
with market capital variables and IPRs as independent variables into <strong>the</strong> model and parameters are estimated.
The results suggest that: (1) international trade and international tourism as important proxy <strong>of</strong> market capital are
relevant in explaining per capita GDP growth but <strong>the</strong>ir coefficient are low; (2) international trade has a stronger
impact on per capita GDP growth than international tourism; (3) high-technology export as ano<strong>the</strong>r proxy <strong>of</strong>
market capital is not significant in explaining per capita GDP growth; (4) IPRs as important factor doesn’t affect
<strong>the</strong> per capita GDP growth.
Keywords: market capital, intellectual property rights, economic growth, international trade, high technology
export, international tourism
1. Introduction
The global knowledge economy has put <strong>the</strong> focus on <strong>the</strong> regional aspects <strong>of</strong> economic growth. It has
also shifted development perspectives from output to input factors as production has become more
knowledge-based. Researchers have sought a better understanding <strong>of</strong> how firms, universities and
government institutions deploy <strong>the</strong>ir core resources and competencies and interact to accrue
economic growth.Since <strong>the</strong> mid-eighties, social scientists have increasingly focused on <strong>the</strong>
significance <strong>of</strong> <strong>the</strong> region as a fundamental basis for economic organization and development
(Sotarauta, 2003; Scott and Storper, 2003; Cooke and Schienstock, 2000; Cooke et al., 1997).
As contradictory as it may seem, it is no coincidence that regions – especially certain knowledgedriven
agglomeration types (i.e. industrial districts, innovative milieus, and clusters) – have become a
central focus <strong>of</strong> debates on competitiveness and economic growth as globalization trends have sped
up.According to Scott and Storper (2003, p. 550), it is ‘‘possible to claim effectively that agglomeration
is a fundamental and ubiquitous constituent <strong>of</strong> successful development in economic systems at many
different levels <strong>of</strong> GNP per capita’’. Economic growth is fundamentally a process <strong>of</strong> structural change,
meaning it depends greatly on <strong>the</strong> capacity <strong>of</strong> <strong>the</strong> economy’s organizations and institutions to
continually reconfigure <strong>the</strong>mselves and thus <strong>the</strong> landscape <strong>the</strong>y occupy.
The ability to achieve and maintain a high growth rate is determined by actors’ ability to innovate and
diversify into new technologies, products and industries within <strong>the</strong> context <strong>of</strong> ever-smaller timeframes
and greater global competition. This ability to innovate is a function <strong>of</strong> a set <strong>of</strong> factors, such as <strong>the</strong>
level <strong>of</strong> technology and <strong>the</strong> extent to which it is used, <strong>the</strong> geographic location, <strong>the</strong> institutional
framework, <strong>the</strong> strategies <strong>of</strong> economic actors, and <strong>the</strong> individual and collective competencies, values
and attitudes <strong>of</strong> <strong>the</strong> region’s human-capital base.This approach recognizes that <strong>the</strong> nature and
structure <strong>of</strong> <strong>the</strong> knowledge base upon which a region ‘‘crafts’’ its competitive capacity includes a
whole range <strong>of</strong> non-scientific and non-technical aspects (Venkataraman, 2004; Sotarauta, 2003; Scott
and Storper, 2003; Furman et al., 2002; Carlsson and Eliasson, 2001; Cooke and Morgan, 1993).
OPEC member countries are <strong>the</strong> same from different point <strong>of</strong> view such as culture, economy and
policy. Many <strong>of</strong> <strong>the</strong>m have <strong>the</strong> monarchy and centralized political system and are going to achieve <strong>the</strong>
democracy Majority <strong>of</strong> <strong>the</strong>m have young population and to attain progress and development have
long-term planning, such as Iran 20-year overlook. Geographically, most <strong>of</strong> <strong>the</strong>se countries are close
toge<strong>the</strong>r and have more political and economical relationship.
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A significant challenge that resonates in <strong>the</strong> OPEC member countries in particular is <strong>the</strong> presence <strong>of</strong>
oil as a natural resource, which contributes significantly to <strong>the</strong> financial wealth <strong>of</strong> certain OPEC
member countries. Zineldin (1998) reports that within <strong>the</strong> oil-rich countries, <strong>the</strong>re is rapid growth in
non-oil sectors brought about by extensive government investment, continued growth in import
demand, and rapid increases in <strong>the</strong> education levels <strong>of</strong> consumers, with consequent demands for
sophisticated and high-quality products.
The ability <strong>of</strong> <strong>the</strong> oil-rich to use oil proceeds for domestic developments depends on <strong>the</strong>ir ability to
translate <strong>the</strong>se resources into useful imports. Owing to limitations on that capacity, <strong>the</strong>y have been
susceptible to shortages <strong>of</strong> domestic resources, resulting in internal inflation.In <strong>the</strong> oil-poor countries,
<strong>the</strong> export sector cannot be distinguished from <strong>the</strong> non-export sector. Although export demand
depends on <strong>the</strong> world economy, <strong>the</strong> supply <strong>of</strong> exports generally relates on <strong>the</strong> development <strong>of</strong> <strong>the</strong>
whole economy. The oil-poor nations can become labor supply countries, where capital and import
constraints usurp <strong>the</strong>ir economic growth.
Four members <strong>of</strong> OPEC (Saudi Arabia, Kuwait, Qatar, and UAE) as oil-rich Arab countries drive
approximately 90 percent <strong>of</strong> government revenues from oil and have high per capita incomes, but a
limited industrial base. O<strong>the</strong>r OPEC member countries (Iran, Algeria, venezuala, Ecuador and
Nigeria) with oil resources have encouraged industrial diversification, usually within a framework <strong>of</strong>
rigid state control (e.g. Angola, Iraq and Libya) fall within this group.
This paper is organized as follows. Section 2 briefly reviews <strong>the</strong> empirical literature on <strong>the</strong> subject.
Section 3 discusses <strong>the</strong> methodology implemented in <strong>the</strong> paper. Section 4 describes <strong>the</strong> data.
Section 5 presents <strong>the</strong> empirical results and Section 6 concludes this paper.
2. Review <strong>of</strong> literature
In all human societies, promotion human life and to achieve economic development is <strong>the</strong> most
important ideals considered. Therefore, <strong>the</strong> economic growth has been one <strong>of</strong> <strong>the</strong> most important
issues for researchers, governments and economists in past years. Economic growth as a summary
measure <strong>of</strong> all community activities depends on all <strong>the</strong> things happening in society (Haslage, 2008).
2.1 Market capital and economic growth
One issue in connection with economic growth which in <strong>the</strong> past decades has been highly regarded is
intangible assets. Although economists have traditionally modeled firms as employing capital, labor,
and o<strong>the</strong>r factors <strong>of</strong> production to increase output—possibly with exogenous technical change as a
shift parameter in <strong>the</strong> production function—it is increasingly realized within <strong>the</strong> economics pr<strong>of</strong>ession
that knowledge and intellectual capital (IC) are <strong>the</strong> primary creators <strong>of</strong> value in <strong>the</strong> economy (i.e., <strong>the</strong>
creation and use <strong>of</strong> intangible ra<strong>the</strong>r than tangible [physical] assets are <strong>the</strong> keys to wealth creation),
and technological change is not exogenous but, in fact, generated in large measure by firms[or
countries] <strong>the</strong>mselves. As Peter Drucker suggested: “The traditional factors <strong>of</strong> production-land, labor
and capital-have not disappeared. But <strong>the</strong>y have become secondary. Knowledge is becoming <strong>the</strong> only
meaningful resource” (Bontis, 2004).
In considerable statistics about OECD shows that more than 50 percent <strong>of</strong> industrial development and
country wealth is result <strong>of</strong> intellectual capital, not fiscal capital. Economists and management scholars
[such as Leif Edvinsson,Debra Amidon,Nick Bontis and Daniel Andriessen] have done much to
advance our understanding <strong>of</strong> <strong>the</strong> central issues around intellectual capital.
Nick Bontis(2004) defined intellectual capital <strong>of</strong> nations as "<strong>the</strong> hidden values <strong>of</strong> individuals,
enterprises, institutions, communities and regions that are <strong>the</strong> current and potential sources for wealth
creation". He modified version <strong>of</strong> <strong>the</strong> intellectual capital tree described by Edvinsson and Malone
(1997) and discussed that Intellectual capital is <strong>the</strong> product <strong>of</strong> interaction <strong>of</strong> four different classes <strong>of</strong>
intangibles: human capital, structural capital, renewal capital and market capital.
Market capital is defined as <strong>the</strong> intellectual capital embedded in national intra-relationships. Market
capital represents a country’s capabilities and successes in providing an attractive, competitive
solution to <strong>the</strong> needs <strong>of</strong> its international clients, as compared with o<strong>the</strong>r countries. A country’s
investment and achievements in foreign relations, coupled with its exports <strong>of</strong> quality products and
services, constitute a significant component in its development <strong>of</strong> market capital, which is rich in
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intangible assets. Market capital is social intelligence created by elements such as laws, market
institutions and social networks. One major factor that ascertains market capital is international trade
(Bontis, 2004). Some o<strong>the</strong>r proxies <strong>of</strong> market capital are:
high-technology exports as a percentage <strong>of</strong> GDP;
number <strong>of</strong> patents granted by USPTO per capita;
number <strong>of</strong> meetings hosted per capita;
openness to different cultures;
number <strong>of</strong> foreign spoken languages;
inflow and outflow <strong>of</strong> tourism;
subjective measures <strong>of</strong> honesty and trust in business dealings;
time required to launch services and products internationally;
international awards won by country or individuals from country;
immigration and emigration data including source <strong>of</strong> inflow and outflows as well as area <strong>of</strong>
expertise;
magazine exports (to go along with books and periodicals);
host <strong>of</strong> world expos and world conventions;
pr<strong>of</strong>essional athletes a country produces and what sport;
appearances at Olympics, number <strong>of</strong> athletes on team; and
number <strong>of</strong> graduate students studying abroad on scholarship
Relationships within and across countries enhance <strong>the</strong> ability to create knowledge and also provide a
greater ability to extract value from <strong>the</strong> knowledge <strong>of</strong> a nation (Sullivan, 2000). <strong>International</strong> trade
brings innovative and more efficient methods <strong>of</strong> producing new and improved goods and services.
As we know, most <strong>of</strong> OPEC member countries exist within <strong>the</strong> Arab Region. In one research, Trade in
exports from <strong>the</strong> three existing trading blocs has not kept pace with trade in <strong>the</strong> rest <strong>of</strong> <strong>the</strong> world over
<strong>the</strong> last 20 years (World Bank, 2001).The Arab Maghreb Union (UMA – Algeria, Libya, Mauritania,
Morocco and Tunisia), <strong>the</strong> GCC (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE), and <strong>the</strong>
Arab Common Market (ACM – Egypt, Iraq, Jordan, Libya, Mauritania, Syria and Yemen) are three
trade blocks that exist within <strong>the</strong> Arab Region.
While <strong>the</strong>ir membership does not account for all countries within <strong>the</strong> region, <strong>the</strong>se three blocks
experienced declined overall trade decline for <strong>the</strong> period 1970-1990 (World Bank, 2001). SIS (2000)
reports that <strong>the</strong> modernization program <strong>of</strong> <strong>the</strong> Arab states should aim at adopting <strong>the</strong> following three
principles:
Human investment through education and training;
Viewing workers as intellectual assets; and
Implanting and nurturing innovative, developmental and cost saving behaviors in firms and
government.
It should be able to enhance teamwork spirit among workers and citizens as a basis for effective
collective performance. Moreover, modernization is no longer a luxury, but ra<strong>the</strong>r an inevitable
necessity for those countries that work hard to achieve prosperity and progress for <strong>the</strong>ir peoples
(Bontis, 2004).In this survey, we just found adequate information for following variables as proxies for
market capital <strong>of</strong> OPEC member countries:
High-technology export
Number <strong>of</strong> tourist visited <strong>the</strong> country
<strong>International</strong> Trade as percentage <strong>of</strong> GDP
2.2 Intellectual property rights and economic growth
Despite <strong>the</strong> obvious importance <strong>of</strong> <strong>the</strong> question, economics did not attempt until <strong>the</strong> 1990s to assess
empirically <strong>the</strong> effects <strong>of</strong> international variations in <strong>the</strong> strength <strong>of</strong> IPRs.Some analysts, developed
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Iman jokar Tang karami et al.
numerical indices to characterize <strong>the</strong> strength <strong>of</strong> patent rights across nations. The law is only one <strong>of</strong>
<strong>the</strong> arms <strong>the</strong> individual uses in his essentially lawless struggle. (Tim Parks, 1992)
It is a commonplace idea that <strong>the</strong> incentive to engage in creative activity depends on <strong>the</strong> security <strong>of</strong>
intellectual property rights. In analyzing this dependence, <strong>the</strong> literature typically takes <strong>the</strong> security <strong>of</strong>
intellectual property rights to be a direct consequence <strong>of</strong> <strong>the</strong> legal system, and, consequently, to be
exogenous with respect to creative activity.
This exogeneity assumption, however, neglects an essential part <strong>of</strong> <strong>the</strong> story, in that it abstracts from
<strong>the</strong> choices that link <strong>the</strong> legal system to <strong>the</strong> security <strong>of</strong> intellectual property rights. Khan and Sokol<strong>of</strong>f
(2001) review <strong>the</strong> history <strong>of</strong> patent and copyright laws in <strong>the</strong> United States. Gallini (2002) discusses
recent changes in United States patent law and provides an overview <strong>of</strong> <strong>the</strong> <strong>the</strong>ory and evidence on
<strong>the</strong> effects <strong>of</strong> patent laws. Gould and Gruben (1996), Park and Ginarte (1997), and Evenson and
Kanwar (2003) report empirical estimates <strong>of</strong> <strong>the</strong> effects <strong>of</strong> <strong>the</strong> legal system on <strong>the</strong> pace <strong>of</strong> innovation.
(Herschel I. Grossman, 2004)
Ginarte and Park (1997) introduced <strong>the</strong> IPRs Index commonly used today in empirical analysis to
approximate a country’s choice in <strong>the</strong> level <strong>of</strong> IPRs. The Ginarte and Park (GP) Index accounts for:
coverage;
membership in international treaties;
loss <strong>of</strong> protection;
enforcement; and
Duration <strong>of</strong> protection.
Since its introduction, <strong>the</strong> GP Index has commonly been <strong>the</strong> index <strong>of</strong> choice when conducting
empirical IPRs analysis (Maskus, 2000; Schneider, 2004; Chen and Puttitanun, 2005). This is
because <strong>the</strong> GP Index embodies a greater number <strong>of</strong> countries and years, and considers a greater
scope <strong>of</strong> categories in its construction.
In this survey, we introduce <strong>the</strong> IPRs index for OPEC member countries based on assumptions that
Ginarte and Park designed <strong>the</strong> IPRs Index but in view <strong>of</strong> inadequate data, we had to ignore
assumption <strong>of</strong> "loss <strong>of</strong> protection". So, we designed new index for measuring OPEC member
countries during 1995 to 2009 and used it in our study.
2.3 Previous empirical studies on market capital and intellectual property rights
A number <strong>of</strong> interesting studies examine <strong>the</strong> relationship between property rights in general and
economic growth (Torstensson, 1994; Svensson, 1994; Sachs and Warner, 1995), as well as <strong>the</strong>
specific relationship between intellectual property rights and economic growth (Gould and Gruben,
1996; Park and Ginarte, 1997; Thompson and Rushing, 1999; Yum K. Kwan, Edwin L.-C, 2003). The
results in <strong>the</strong>se studies are mixed and use various measures <strong>of</strong> general property rights and IPRs.
Ginarte and Park (1997), using <strong>the</strong>ir index for a panel <strong>of</strong> data for 48 developed and developing
countries examined <strong>the</strong> characteristics that influenced a country’s choice <strong>of</strong> IPRs. They concluded
that a country’s per capita income was a significant determinant. They did not, however, consider <strong>the</strong>
possibility <strong>of</strong> a U-shaped relationship between IPRs and per capita income. Exploration <strong>of</strong> a possible
non-monotonic relationship between <strong>the</strong>se two variables has since emerged (Kristie Briggs, 2009).
Primo Braga et al. (2000) noted a U-shaped relationship between IPRs and per capita GDP for a
cross-section <strong>of</strong> countries in <strong>the</strong> year 1975. In addition, Maskus (2000) empirically observed a Ushape
link between per capita income and IPRs in 1984 cross-section <strong>of</strong> countries using <strong>the</strong> Rapp
and Rozek IPRs Index, as well as for a panel <strong>of</strong> countries in 1985 and 1990 using <strong>the</strong> GP Index. Both
Primo Braga et al. and Maskus longitudinally interpreted <strong>the</strong> U-shape to explain a country’s choice in
IPRs as it develops. (Kristie Briggs, 2009)
Chen and Puttitanun (2005) provided <strong>the</strong> first <strong>the</strong>oretical explanation for <strong>the</strong> U-shaped relationship
between IPRs and per capita GDP by using a game <strong>the</strong>oretic approach to model a country’s choice <strong>of</strong>
optimal IPRs. They <strong>the</strong>n tested <strong>the</strong>ir <strong>the</strong>ory using a panel <strong>of</strong> 62 developing countries for <strong>the</strong> years
1985, 1990, 1995, and 2000.
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Iman jokar Tang karami et al.
Helpman (1993) first analyzed <strong>the</strong> effect <strong>of</strong> different IPR regimes, and Kwan and Lai (2003) extended
his model to highlight <strong>the</strong> importance <strong>of</strong> transitional dynamics. Grossman and Lai (2004) examine <strong>the</strong>
incentives <strong>of</strong> a government to implement a welfare maximizing level <strong>of</strong> IPR protection. Their approach
follows an important branch <strong>of</strong> <strong>the</strong> literature that examines <strong>the</strong> impact <strong>of</strong> differing IPR regimes on
growth, trade, and <strong>the</strong> product cycle (Theo Eichera, et al, 2008).
Also, David M. Gould, William C. Gruben(1996) and Yuichi Furukawa (2007) examined <strong>the</strong> role <strong>of</strong>
intellectual property rights in economic growth in open and closed Economics. Their evidence
suggested that intellectual property right is a significant determinant <strong>of</strong> economic growth in both
economics, although <strong>the</strong>se effects appear to be slightly stronger in relatively open economies.
Theo Eicher, Cecilia García-Peñalosa (February 2008) discuss that <strong>the</strong> key institution that determines
sustained growth in R&D-based growth models is <strong>the</strong> strength <strong>of</strong> intellectual property rights, which are
usually assumed to be exogenous.They show that <strong>the</strong> resulting institutional threshold <strong>of</strong>fers an
explanation for why <strong>the</strong> effect <strong>of</strong> a transfer <strong>of</strong> institutions from one country to ano<strong>the</strong>r depends on <strong>the</strong>
quality <strong>of</strong> <strong>the</strong> institutions that were imported.
Sedigheh Atrkar Roshan(2007) test <strong>the</strong> export-led growth hypo<strong>the</strong>sis for Iran. The results indicate that
real export growth also causes net-real GDP growth for Iran. In examining <strong>the</strong> effects <strong>of</strong>
decomposition <strong>of</strong> exports and growth, while oil exports are found to have a very important role,
manufactured exports are suggested to have <strong>the</strong> potential to bear fur<strong>the</strong>r growth in <strong>the</strong> future.
Jim Lee (March 2011), investigate how technology intensity in exports affects economic growth. Data
<strong>of</strong> 71 countries confirmed <strong>the</strong> growth effect <strong>of</strong> high-tech export specialization and empirical results
take into account possible endogeneity and parameter heterogeneity.
Tai-Yue Wang, Shih-Chien Chien(August 2007), propose a research framework to discuss <strong>the</strong>
relationships between technology development (TD) and economic performance (EP) for The
Association <strong>of</strong> Sou<strong>the</strong>ast Asian Nations (ASEAN) countries. Their results showed that in some
countries such Singapore, Malaysia, and Brunei, TD has positive correlations with those <strong>of</strong> EP
(except <strong>the</strong> information technology sub-category). In contrast, in countries such as Thailand,
Indonesia, Philippines, Cambodia, Laos, Myanmar, and Vietnam, TD has lower or negative
correlations with <strong>the</strong> domestic economy and government efficiency.
In ano<strong>the</strong>r research, Patricia Higino Schneider (September 2002), examines <strong>the</strong> role <strong>of</strong> hightechnology
trade, IPRs and FDI in determining a country’s rate <strong>of</strong> innovation and economic growth.
Their results suggest that high-technology imports are relevant in explaining domestic innovation both
in developed and developing countries and foreign technology has a stronger impact on per capita
GDP growth than domestic technology. Also, IPRs affect <strong>the</strong> innovation rate, but this impact is more
significant for developed countries and <strong>the</strong> results regarding FDI are inconclusive.
This paper examines <strong>the</strong> role <strong>of</strong> market capital and intellectual property rights in determining a
country’s rate <strong>of</strong> economic growth. The empirical analysis is conducted using a unique panel data set
<strong>of</strong> OPEC member countries from 1995 to 2009. In this study, initially using conceptual framework that
is a modified version <strong>of</strong> <strong>the</strong> intellectual capital tree described by Edvinsson and Malone (1997) and
introduced by Bontis(2004), market capital variables <strong>of</strong> nations define. Then, using a model <strong>of</strong>
endogenous growth, main model is stipulated and run with market capital variables and IPRs as
independent variables and parameters are estimated. More specifically, this paper focuses on two
main questions: (1) Does market capital affect economic growth? (2) Does IPRs affect economic
growth? As came before, in this survey we just found adequate information for following variables as
proxies for market capital:
High-technology export
Number <strong>of</strong> tourist visited <strong>the</strong> country
<strong>International</strong> Trade as percentage <strong>of</strong> GDP
So, sub questions for main question 1 are: (1) Does high technology affect economic growth? (2)
Does international trade affect economic growth? And (3) Does international tourism affect economic
growth?
719

3. Methodology
Iman jokar Tang karami et al.
This paper conducts an empirical investigation <strong>of</strong> <strong>the</strong> role <strong>of</strong> market capital in determining <strong>the</strong> rate <strong>of</strong>
economic growth in OPEC members' countries and investigates <strong>the</strong> importance <strong>of</strong> IPRs in <strong>the</strong>se
processes. So, we use <strong>the</strong> growth regressions based on <strong>the</strong> <strong>the</strong>oretical models developed by
Grossman and Helpman (1991) and Barro and Sala-i- Martin (1997) and <strong>the</strong> empirical analysis uses a
panel data set consisting <strong>of</strong> three separate 5- year periods, 1995–1999, 2000–2004 and 2005–2009
for a cross-section <strong>of</strong> OPEC members' countries. Due to <strong>the</strong> short length <strong>of</strong> <strong>the</strong> panel (three periods),
some within-country effects might not be captured; <strong>the</strong>refore, we also estimate OLS regressions. All
variables are used and expressed in real terms.
Annual Growth <strong>of</strong> high-technology export, Annual growth <strong>of</strong> number <strong>of</strong> tourist visited <strong>the</strong> country and
trade as percentage <strong>of</strong> GDP, are used as proxies for <strong>the</strong> effect <strong>of</strong> market capital on growth. We also
used IPRs in <strong>the</strong> growth regression in order to examine if this variable has a direct effect on growth.
Y = F ( HT
it
it
, TU
it
, TR
it
, IPRs
it
)
For each sub period, we consider <strong>the</strong> annual growth <strong>of</strong> real per capita GDP (Yit) as a function <strong>of</strong>
growth <strong>of</strong> high-technology export (HTit), Annual growth <strong>of</strong> number <strong>of</strong> tourist visited <strong>the</strong> country (TUit)
and trade as percentage <strong>of</strong> GDP (TRit) and annual intellectual property rights (IPRsit) and t is time
period.
4. Data
In this survey, we have used a sample that consists <strong>of</strong> OPEC members' countries. We have included
all countries for which data was available.The availability <strong>of</strong> data for <strong>the</strong> OPEC members' countries
was generally sparse. Notwithstanding <strong>the</strong> limited secondary sources for <strong>the</strong>se countries, <strong>the</strong> data
collection process was conducted as thoroughly as possible. So, we have to eliminate Iraq, Qatar,
Libya and Angola's countries because <strong>of</strong> inadequate information.
<strong>International</strong> trade as one proxy for market capital is <strong>the</strong> sum <strong>of</strong> exports and imports <strong>of</strong> goods and
services measured as a share <strong>of</strong> gross domestic product (World Bank). This variable is calculated by
using data <strong>of</strong> <strong>the</strong> national accounts data published by World Bank and OECD.
High-technology exports as ano<strong>the</strong>r proxy for market capital are products with high R&D intensity,
such as in aerospace, computers, pharmaceuticals, scientific instruments, and electrical machinery
(United Nations).The data for this variable is taken from Commodity Comrade Database published by
<strong>the</strong> United Nations.
<strong>International</strong> inbound tourists (overnight visitors) as <strong>the</strong> o<strong>the</strong>r proxy <strong>of</strong> market capital are <strong>the</strong> number
<strong>of</strong> tourists who travel to a country o<strong>the</strong>r than that in which <strong>the</strong>y have <strong>the</strong>ir usual residence, but outside
<strong>the</strong>ir usual environment, for a period not exceeding 12 months and whose main purpose in visiting is
o<strong>the</strong>r than an activity remunerated from within <strong>the</strong> country visited.
The data on inbound tourists refer to <strong>the</strong> number <strong>of</strong> arrivals, not to <strong>the</strong> number <strong>of</strong> people traveling.
Thus a person who makes several trips to a country during a given period is counted each time as a
new arrival (World Tourism Organization). This variable is collected from Yearbook <strong>of</strong> Tourism
Statistics published by <strong>the</strong> World Tourism Organization.
The expected sign <strong>of</strong> <strong>the</strong> IPRs variable is <strong>the</strong>oretically ambiguous (Helpman1993). To measure levels
<strong>of</strong> IPRs across countries, we use indices like a time varying index <strong>of</strong> intellectual property rights
protection developed by Ginarte and Park (1998) for 110 countries. Their index is based on five
categories <strong>of</strong> patent laws: extent <strong>of</strong> coverage, membership in international patent agreements,
enforcement mechanisms, provisions for loss <strong>of</strong> protection and <strong>the</strong> duration <strong>of</strong> protection. The Park
and Ginarte index has two main advantages over time-invariant indices <strong>of</strong> intellectual property rights
(Rapp and Rozek, 1990; Mansfield, 1994). First, it covers more countries and a larger time period
than <strong>the</strong> o<strong>the</strong>r indices, since it covers <strong>the</strong>se countries over 5-year periods from 1960 to 1990. Second,
<strong>the</strong> index considers broader categories <strong>of</strong> <strong>the</strong> patent system, consequently yielding greater variability
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Iman jokar Tang karami et al.
in <strong>the</strong> measurement <strong>of</strong> IPRs across countries. Also, with fixed-effects estimators it is not always
possible to recover estimates <strong>of</strong> time-invariant explanatory variables (Eiche and et al, 2007).
In this paper we designed and use a limited version <strong>of</strong> Park and Ginarte index based on four
categories <strong>of</strong> patent laws: extent <strong>of</strong> coverage, membership in international patent agreements,
enforcement mechanisms and <strong>the</strong> duration <strong>of</strong> protection. Our index covers OPEC members' countries
for 15 years from 1995 to 2009.
5. Empirical results
Table (1) reports <strong>the</strong> results for <strong>the</strong> growth regression. The results show that only <strong>the</strong> growth <strong>of</strong>
<strong>International</strong> trade has by far <strong>the</strong> greatest effect on real per capita GDP growth. This variable which
can be interpreted as main proxy for market capital has coefficients <strong>of</strong> 0.13 and is statistically
significant. The second strongest impact comes from <strong>the</strong> growth <strong>of</strong> international tourism, number <strong>of</strong>
arrivals, which can be interpreted as ano<strong>the</strong>r proxy for market capital. This variable has coefficients <strong>of</strong>
0.03 and is statistically significant in regression.
Annual growth <strong>of</strong> high technology export is not significant in <strong>the</strong> growth regression for OPEC member
countries. These results suggest that high technology export is not important in determining per capita
GDP growth <strong>of</strong> OPEC member countries. Lastly, Intellectual Property Rights (IPRs) also is not
significant in <strong>the</strong> growth regression for OPEC member countries. This is inconsistent with o<strong>the</strong>r
studies such as Patricia Higino Schneider (2004), Gould and Gruben (1996), who report a positive
and significant effect <strong>of</strong> IPRs protection on GDP growth using a measure <strong>of</strong> IPRs protection based on
that <strong>of</strong> Rapp and Rozek (1990).
Table 1: Growth regression
6. Conclusion
Dependent Variable: GDP?
Method: Pooled Least Squares
Sample: 1995 -2009
Included observations: 15
Cross-sections included: 8
Total pool (unbalanced) observations: 120
Variable Coefficient t-Statistic Prob.
C -0.8348 -0.7750 0.4401
HT? -0.0001 -1.2539 0.2126
TU? 0.0340 (1.7583)** 0.0815
TR? 0.1395 (7.2776)* 0.0000
IPRS? 0.5336 0.7655 0.4457
A dummy variable as fixed is included in all regressions.
Durbin-Watson stat 1.95
* Significant at 0.05 level
** Significant at 0.10 level
This paper examines <strong>the</strong> role <strong>of</strong> market capital and intellectual property rights in determining a
country’s rate <strong>of</strong> economic growth. It complements <strong>the</strong> previous literature by focusing on international
trade, high-technology export, <strong>International</strong> tourism and intellectual property rights for OPEC member
countries.
The results for <strong>the</strong> pooled sample suggest that international trade and international tourism are
important factors in explaining <strong>the</strong> rate <strong>of</strong> economic growth. Additionally, a country’s stock <strong>of</strong> physical
capital is very relevant in explaining per capita GDP growth and international trade (measured as <strong>the</strong>
growth <strong>of</strong> per capita international trade) has a stronger impact on per capita GDP growth than
<strong>International</strong> tourism (measured as <strong>the</strong> growth <strong>of</strong> number <strong>of</strong> arrivals).
721

Iman jokar Tang karami et al.
However, international trade and international tourism affected per capita GDP growth, <strong>the</strong>ir
coefficients are low. The results suggest that more important dynamics affected per capita GDP
growth <strong>of</strong> OPEC member countries, appear that oil is <strong>the</strong> most important alternative.
The results regarding intellectual property and high-technology export suggest that <strong>the</strong>se variables
don't have an impact on per capita GDP growth <strong>of</strong> OPEC member countries. These results may be
indicative <strong>of</strong> <strong>the</strong> facts that high-technology export in OPEC member countries may actually is low and
insignificant on GDP, because <strong>of</strong> dependency <strong>of</strong> <strong>the</strong>ir economics to natural fuels and lack <strong>of</strong>
investment on high-technology. Therefore, Innovative activities and IPRs will be weak and
unimportant and will encourage import and consumption instead <strong>of</strong> innovation and production.
The policy implication here is not to discourage import in OPEC member countries, but to generate
incentives for Innovation and IPRs streng<strong>the</strong>ning. Innovative activities and IPRs are complementary in
nature; <strong>the</strong>refore, OPEC member countries would benefit by supporting <strong>the</strong>ir R&D activities. Also, <strong>the</strong>
ability <strong>of</strong> <strong>the</strong> OPEC member countries to use oil proceeds for domestic developments depends on
<strong>the</strong>ir ability to translate <strong>the</strong>se resources into useful imports.
By contrasting empirical specifications for per capita GDP growth, <strong>the</strong> results in this paper suggest
that traditional growth regressions might be unable to fully capture all factors affected economic
growth except traditional factors such as capital and labor. At a broader level, this paper highlights <strong>the</strong>
importance <strong>of</strong> conducting studies that are inclusive <strong>of</strong> OPEC member countries and suggests that
pooling toge<strong>the</strong>r OPEC member countries might lead to leading conclusions, and consequently to
effective policy recommendations for oil countries.
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723

Raising <strong>the</strong> Research Pr<strong>of</strong>ile <strong>of</strong> <strong>the</strong> Faculty <strong>of</strong> Humanities,
Chiang Mai University
Krith Karnjanakitti, Pitipong Yodmongkon and Nopasit Chakpitak
College <strong>of</strong> Arts, Media, and Technology, Chiang Mai University
kkrith@hotmail.com
pitipong@camt.info
nopasit@camt.info
Abstract: Chiang Mai University (CMU), <strong>the</strong> first higher education institute in nor<strong>the</strong>rn Thailand, has a strong
mission to addresses <strong>the</strong> nation’s challenges amidst a globalizing world, by providing academic services to
communities, particularly those <strong>of</strong> nor<strong>the</strong>rn Thailand. CMU is currently changing to become a national research
university in accordance with <strong>the</strong> national agenda, which supports universities in Thailand to achieve <strong>the</strong>ir
research potential by conducting research to <strong>the</strong> benefit <strong>of</strong> local communities, <strong>the</strong> country, and international
education as a whole. CMU must <strong>the</strong>refore move forward to become a leading research university and achieve
its mission by leveraging research in various fields to support standards <strong>of</strong> teaching, learning and technology
transfer for <strong>the</strong> sake <strong>of</strong> social and economic development <strong>of</strong> <strong>the</strong> region. In response to this, CMU encourages
individual faculties to conduct and produce research and has a vision to become a research-oriented organization
with international standards <strong>of</strong> academic excellence. As a key part <strong>of</strong> CMU, <strong>the</strong> Faculty <strong>of</strong> Humanities (hereinafter
FH-CMU), must align itself with <strong>the</strong> aims <strong>of</strong> CMU and raise its research pr<strong>of</strong>ile. This paper identifies two main
issues preventing FH-CMU from reaching its full research potential and presents <strong>the</strong> results <strong>of</strong> an investigation,
which examined methods to address <strong>the</strong>se issues. The two identified issues are a weakness in local community
links and a group <strong>of</strong> knowledge workers without <strong>the</strong> full spectrum <strong>of</strong> skills required to conduct effective research.
This paper explores construction <strong>of</strong> an empowerment framework for knowledge workers to increase <strong>the</strong>ir
research and examines <strong>the</strong> building <strong>of</strong> community links via a case study in Nan province, nor<strong>the</strong>rn Thailand.
Specifically, this paper considers <strong>the</strong> production and transfer <strong>of</strong> social knowledge, with <strong>the</strong> central aim <strong>of</strong> raising
<strong>the</strong> research pr<strong>of</strong>ile <strong>of</strong> FH-CMU.
Keywords: globalization, knowledge management, community links, Nan province, Knowledge workers
1. Introduction and background
Chiang Mai University (CMU) was established in 1964 as <strong>the</strong> first higher education institute in
nor<strong>the</strong>rn Thailand. In 2008, CMU became an affiliated public university with increased levels <strong>of</strong>
autonomy and self-governance. Such autonomy has resulted in a requirement to become a globally
competitive university and thus <strong>the</strong> current vision <strong>of</strong> CMU is, “to be an affiliated public researchoriented
university, maintaining international standards <strong>of</strong> quality assurance and academic
excellence”. As a part <strong>of</strong> <strong>the</strong> Univeristy, FH-CMU has a responsibility to match its individual objectives
to this organizational vision and a requirement <strong>the</strong>refore exisits for FH-CMU to raise its research
pr<strong>of</strong>ile. FH-CMU currently has a variety <strong>of</strong> weakness in its research management, such as a relatively
small amount <strong>of</strong> annual research output (i.e. publications in international peer-reviewed journals), a
lack <strong>of</strong> local research, and deficiencies in budget management; for example, only 38.64% <strong>of</strong> FH-CMU
research funds were exploited in 2008. The research question in this paper is, how can FH-CMU
raise its Key Performance Indicator (KPI) in relation to its research? In order to raise FH-CMU’s
research KPI, <strong>the</strong> ultimate goals <strong>of</strong> this paper are to highlight how to improve research skills <strong>of</strong>
knowledge workers. This will promote research and enhance <strong>the</strong> opportunity to link with local
communities by focusing on community-based research as well as developing a research
management framework for FH-CMU, so it can become more productive both in terms <strong>of</strong> research
process and output. FH-CMU’s research weaknesses, as noted above, can be attributed to two main
factors, which are:
Insufficient community links
Knowledge workers without <strong>the</strong> appropriate research skill
This paper takes each <strong>of</strong> <strong>the</strong>se two problems in turn and utilizes knowledge management (KM) tools
to propose potential solutions, with <strong>the</strong> overall aim <strong>of</strong> raising <strong>the</strong> research pr<strong>of</strong>ile <strong>of</strong> FH-CMU.
1.1 Problem one: Insufficient community links
a) Community links and <strong>the</strong>ir importance in humanities research
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Krith Karnjanakitti et al.
Prior to a discussion <strong>of</strong> KM tools, and ra<strong>the</strong>r than a consideration <strong>of</strong> community links per se, it is
necessary to understand why community links are central to <strong>the</strong> aim <strong>of</strong> FH-CMU, as well as <strong>the</strong>
purpose <strong>the</strong>y serve in promoting research. During <strong>the</strong> founding years <strong>of</strong> <strong>the</strong> University, FH-CMU was
one <strong>of</strong> <strong>the</strong> first faculties <strong>of</strong>fering courses in general education and was based on <strong>the</strong> UNESCO
philosophy <strong>of</strong> education at <strong>the</strong> time, which suggested an ideal graduate should posses fundamental
knowledge in natural sciences, human society, <strong>the</strong> human mind and its ‘treasures’. Pr<strong>of</strong>essor Tui
Choomsai, <strong>the</strong> pioneering Dean <strong>of</strong> FH-CMU, suggested, “courses in humanities, such as Mass
Communication, Tourism, Psychology and Library Sciences, should be sought out and carefully
selected so that <strong>the</strong>y “fulfill <strong>the</strong> objective <strong>of</strong> uplifting <strong>the</strong> quality <strong>of</strong> human beings”. These courses
could have been delivered within <strong>the</strong> Faculty <strong>of</strong> Social Sciences, Agriculture or o<strong>the</strong>r faculties, but
when placed in <strong>the</strong> domain <strong>of</strong> humanities, <strong>the</strong>se courses should contribute to human development for
<strong>the</strong> benefit <strong>of</strong> society. Society is comprised <strong>of</strong> people and in turn people are products <strong>of</strong> society. In an
endless cycle, each influences <strong>the</strong> o<strong>the</strong>r. The field <strong>of</strong> humanities is a collection <strong>of</strong> disciplines
interested in <strong>the</strong> preservation, transmission and examination <strong>of</strong> human culture. In accordance with <strong>the</strong>
founding aims <strong>of</strong> FH-CMU, and <strong>the</strong> inherent purpose <strong>of</strong> humanities, <strong>the</strong>re is a need to place human
development and culture at <strong>the</strong> forefront <strong>of</strong> any humanities research. Communities symbolize <strong>the</strong>
most important framework when considering people and culture and thus communities should
represent a focal point in FH-CMU’s research agenda. To effectively conduct humanities research,
links to <strong>the</strong> community are <strong>the</strong>refore essential. A lack <strong>of</strong> community links embodies one <strong>of</strong> <strong>the</strong> main
constraints in raising FH-CMU’s research pr<strong>of</strong>ile. Research presented in this paper utilized a case
study to investigate <strong>the</strong> state <strong>of</strong> FH-CMU’s community links and suggest ways to build new links or
effectively leverage existing ones.
b) Nan Province as a case study
In this research, knowledge management (KM) was used in <strong>the</strong> process <strong>of</strong> managing researchers,
<strong>the</strong>ir research and <strong>the</strong> overall research framework or policy <strong>of</strong> FH-CMU. In order to directly increase
links between FH-CMU and <strong>the</strong> community, as well as to indirectly increase research output Nan
province was utilized as a case study. There are three reasons behind <strong>the</strong> selection <strong>of</strong> Nan as a case
study. Firstly, Nan has its own social capital in many aspects, such as culture, religion, local wisdom
and local native languages. Secondly, Nan played a key historic role in <strong>the</strong> Nor<strong>the</strong>rn Region, with salt
as an important natural resource, as well as its border with Laos. Thirdly, Nan province is currently
afflicted with many problems such as poverty, natural resource shortages, illiteracy, and disease.
KM tools were used to educate Faculty members in order to link <strong>the</strong>ir knowledge production to serve
Nan province. The concept was to utilize knowledge management methods as a bridge to reduce <strong>the</strong>
gap between FH-CMU research and connect with <strong>the</strong> community to create a win-win situation for both
FH-CMU, and <strong>the</strong> local community. In particular, three KM tools are proposed, which are social
network analysis, creation <strong>of</strong> shared vision and creation <strong>of</strong> an empowerment framework. Social
network analysis aims to discover individuals with strong connections to <strong>the</strong> community, based on his
or her research. As <strong>the</strong> result <strong>of</strong> social network analysis, <strong>the</strong> investigation can suggest ways to form a
group <strong>of</strong> people who can share skills, knowledge, and experience to conduct community-based
research using <strong>the</strong> concept <strong>of</strong> an empowerment framework. Research opportunities via <strong>the</strong>
community and developing <strong>the</strong> skills <strong>of</strong> knowledge workers cannot be undertaken if FH-CMU
management and FH-CMU knowledge workers do not harmonize <strong>the</strong>ir vision. Therefore, building
shared a vision is suggested to create a common understanding <strong>of</strong> <strong>the</strong> future and translate it into a
feasible organizational vision in terms <strong>of</strong> a set <strong>of</strong> principles and essences, based on guiding practices.
Methodology:
c) KM tools to build community links
Five stages are presented in this paper to enhance community links between FH-CMU and Nan
province. These are shown in Figure 1.
The first stage is to set up <strong>the</strong> domain and scope within a framework in order to link FH-CMU and Nan
province. The way <strong>of</strong> life <strong>of</strong> Nan’s people is considered as <strong>the</strong> scope <strong>of</strong> this framework. The second
stage analyses <strong>the</strong> requirements <strong>of</strong> knowledge management for humanities’ research and utilizes indepth
interview, social network analysis, and historical analysis to fully assess and understand <strong>the</strong>
CMU links between FH-CMU and Nan province.
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Krith Karnjanakitti et al.
Stage
KM based
model design
Figure 1: Five steps in designing a KM model to enhance community links between FH-CMU and
communities in Nan province
The third stage is currently work in progress, which is seeking to identify research criteria and critical
tasks <strong>of</strong> FH-CMU by using SWOT analysis and Key Success Factors (KSF) to fur<strong>the</strong>r analyze <strong>the</strong>
status <strong>of</strong> FH-CMU community links.
In <strong>the</strong> fourth stage, research data was collected from both FH-CMU and Nan province. This fourth
stage was conducted through questionnaires, interviews, and secondary data sources. The fifth stage
designed a model based on knowledge management tools to effectively present and understand how
to improve FH-CMU’s community links.
d) Social network and historical analysis
Through social network analysis, it was found that one knowledge worker within FH-CMU (a lecturer
in <strong>the</strong> field <strong>of</strong> History), has a strong social network in Nan province. Figure 2 shows a visualization <strong>of</strong>
this social network.
Figure 2: Social network <strong>of</strong> one FH-CMU lecturer in Nan province
Figure 2 shows FH-CMU has a faculty member who has a strong network with local people, and local
institutions, which can enable research or o<strong>the</strong>r partnership activities to be conducted. His connection
to conduct community-based research began through a grant from <strong>the</strong> Thailand Research Fund
(TRF). The research fund promoted local research and <strong>the</strong>refore <strong>the</strong> lecturer invited a group <strong>of</strong>
researchers, both from <strong>the</strong> academic domain and local people in order to conduct useful community
research and connect to <strong>the</strong> important stakeholders <strong>of</strong> <strong>the</strong> research to gain <strong>the</strong>ir cooperation. FH-CMU
as an organization does not realize this network exists and <strong>the</strong>refore does not take advantage <strong>of</strong> this
social network to create opportunities to serve local community development or conduct research.
The fact that FH-CMU was not aware <strong>of</strong> this community link suggests <strong>the</strong>re is potential in utilizing KM
to ensure researchers in <strong>the</strong> Faculty understand this link exists and how <strong>the</strong>y can take advantage <strong>of</strong>
it in <strong>the</strong>ir own research.
After conducting social network analysis, a historical review and analysis <strong>of</strong> FH-CMU’s community
links was undertaken to assess <strong>the</strong> quality <strong>of</strong> <strong>the</strong>se links and ascertain whe<strong>the</strong>r <strong>the</strong> same problem has
always existed in terms <strong>of</strong> FH-CMU management being unaware <strong>of</strong> community links. The aim <strong>of</strong> <strong>the</strong>
historical analysis was to determine whe<strong>the</strong>r knowledge management tools could be utilized to
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improve knowledge <strong>of</strong> FH-CMU’s community links and potential research projects. Historical analysis
is also a useful technique to help understand <strong>the</strong> strengths and weaknesses <strong>of</strong> FH-CMU and leverage
this information to develop future research strategies.
Historical analysis was conducted through in-depth interviews with key personnel in every program
taught by FH-CMU. The results show that prior to 1964, a member <strong>of</strong> <strong>the</strong> Thai royal family was
assigned by <strong>the</strong> government to set up Chiang Mai University as <strong>the</strong> first regional university <strong>of</strong>
Thailand. CMU was conceived as a university collegiate system inspired by Oxford University, but this
system was never pursued.
In 1964, <strong>the</strong> government took <strong>the</strong> concept <strong>of</strong> UNESCO (United Nations Educational, Scientific and
Cultural Organization) to set up <strong>the</strong> first three faculties <strong>of</strong> Chiang Mai University, namely, <strong>the</strong> Faculty
<strong>of</strong> Sciences, Faculty <strong>of</strong> Social Science, and Faculty <strong>of</strong> Humanities. Pr<strong>of</strong>essor Tui Choomsai was
initially named by <strong>the</strong> Government to be <strong>the</strong> Dean <strong>of</strong> both <strong>the</strong> Faculty <strong>of</strong> Social Science and Faculty <strong>of</strong>
Humanities, but was later <strong>the</strong> Dean solely for <strong>the</strong> Faculty <strong>of</strong> Humanities. His main concept <strong>of</strong> teaching
in <strong>the</strong> field <strong>of</strong> humanities was to raise <strong>the</strong> knowledge and quality <strong>of</strong> life <strong>of</strong> human beings, especially in
terms <strong>of</strong> mental aspects and <strong>the</strong>ir philosophies.
In 1967, FH-CMU focused its education on creating students to serve society through governmental
and <strong>of</strong>ten bureaucratic jobs.
From 1988-1992 Dr.Wattana Suksamai, a former Dean, had a core policy relating to local and
community development to harmonize <strong>the</strong> mission <strong>of</strong> CMU to be <strong>the</strong> leading regional university. The
effect <strong>of</strong> this policy generated two kinds <strong>of</strong> programs taught at FH-CMU, firstly, Lanna History and
secondly, general humanities education. Both <strong>of</strong> <strong>the</strong>se were initiated and taught from that time and
continue today.
In 1994,Pr<strong>of</strong>essor Sarassawadee Ongsakul, lecturer in history, conducted research entitled, “Phun
Muang Nan <strong>of</strong> <strong>the</strong> Wat Phra Koed”. This represents <strong>the</strong> first major piece <strong>of</strong> community research in
Nan province.
In 2003, Associate Pr<strong>of</strong>essor Attachak Sattayanurak, lecturer in History, coordinated <strong>the</strong> Thailand
Research Fund (TRF) to run community-based research and invited Dr.Chusak Wittayapak to be <strong>the</strong>
head <strong>of</strong> research involving Nan province, in particular <strong>the</strong> history <strong>of</strong> <strong>the</strong> contestation for access to <strong>the</strong>
resources <strong>of</strong> Nan People. After 2003, <strong>the</strong>re is no research relating to Nan province. Interviews with
key researchers revealed that <strong>the</strong>y conducted research because <strong>of</strong> <strong>the</strong>ir own interests and roles in
academic society, not due to FH-CMU’s policy.
Figure 3 shows that four periods <strong>of</strong> time can be identified with regards to <strong>the</strong> path <strong>of</strong> research at CMU.
During CMU’s founding years, a period <strong>of</strong> internationalization took place and <strong>the</strong>re were two main
concepts associated with its educational system. Firstly, <strong>the</strong> concept <strong>of</strong> a collegiate system from
Oxford University, UK and secondly, <strong>the</strong> educational philosophies <strong>of</strong> UNESCO. Ultimately, <strong>the</strong>
UNESCO philosophy was chosen and this concept has significantly affected <strong>the</strong> teaching and
learning system <strong>of</strong> CMU. The relevance <strong>of</strong> CMU to society was enhanced, and its partnership and
interactions with external stakeholders, (e.g. Cornell University, U.S.A, local communities, industries)
were more proactively pursued.
The period <strong>of</strong> localization coincided with <strong>the</strong> mission <strong>of</strong> CMU to conduct research in various fields to
support standards <strong>of</strong> teaching, learning and technology transfer for <strong>the</strong> social and economic
development <strong>of</strong> <strong>the</strong> region and <strong>the</strong> country, while also providing academic services to <strong>the</strong> national
community in line with <strong>the</strong> sufficiency economy philosophy, particularly for Nor<strong>the</strong>rn Thailand.
Opportunities to conduct research with <strong>the</strong> community are <strong>the</strong> main reasons to build collaboration
between CMU and <strong>the</strong> communities in nor<strong>the</strong>rn Thailand.
During former Thai Prime Minister Thaksin Shinawatra’s administration, Thai society enjoyed
modernization associated with his populist policy changes in fields <strong>of</strong> economics, public health,
education, anti-drugs, and social welfare and was a period <strong>of</strong> globalization. Never<strong>the</strong>less, <strong>the</strong> policy
was questioned in terms <strong>of</strong> whe<strong>the</strong>r it was <strong>the</strong> right path to achieve sustainable development. During
this time, <strong>the</strong>re was significant academic research to survey <strong>the</strong> effect <strong>of</strong> globalization, modernization,
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and Thaksin’s policies (e.g. one million baht for each village, <strong>the</strong> 30-baht treatment for all scheme),
but <strong>the</strong>re was not enough research-based knowledge to support Thaksin’s national agenda.
Before 1964
Concept <strong>of</strong> College,
Oxford Univ.
M.L.Pin Malakul
Concept <strong>of</strong> UNESCO
-Pure Science
-Social Science M.L.Tui Choomsai
-Humanities
1964
1967
Served Bureaucracy
“Phun Muang Nan <strong>of</strong> <strong>the</strong> Wat Phrakoed”
Pr<strong>of</strong>.Sarassawadee Ongsakal
1994
1988-1992
-Dr.Wattana Suksamai
-Lanna History
-GE
2010
2003
Assoc.Pr<strong>of</strong>.Attachak Sattayanurak
“History <strong>of</strong> <strong>the</strong> Contestation for Access
to Resources <strong>of</strong> Nan Province”
Figure 3: Path <strong>of</strong> research at CMU
The most recent period in CMU’s history is glocalization, which encompasses aspects <strong>of</strong>
globalization, while simultaneously refocusing and emphasizing local issues. In <strong>the</strong> era <strong>of</strong>
globalization, Thailand had been struggling to integrate with <strong>the</strong> international economy, but a new
national agenda has been launched to accelerate national development. With global capitalism and
transnational culture exchanges, images are consumed across national, geopolitical and linguistic
borders with unprecedented ease. FH-CMU should focus its research on <strong>the</strong> complex and dynamic
power interchange between global and local issues. The speed and significance <strong>of</strong> change, means
FH-CMU has a central role to play in researching how processes <strong>of</strong> glocalization affect Thailand and
CMU’s local communities. It is commonly known that <strong>the</strong>re is much wisdom in nor<strong>the</strong>rn Thailand,
which can be leveraged to contribute to international knowledge through conducting research.
The results <strong>of</strong> social network analysis signify that <strong>the</strong> lack <strong>of</strong> communication between FH-CMU and its
knowledge workers should be <strong>of</strong> more concern than <strong>the</strong> presence <strong>of</strong> community links <strong>the</strong>mselves. The
social network analysis illustrates a strong community network exists and FH-CMU should take
advantage <strong>of</strong> this to conduct local research, not only to serve <strong>the</strong> mission <strong>of</strong> Chiang Mai University, but
also to streng<strong>the</strong>n <strong>the</strong> University’s response to glocalization.
Through social network and historical analysis, stronger community links can be facilitated, however,
<strong>the</strong>se links alone do not provide a complete solution to FH-CMU’s requirement to raise <strong>the</strong> pr<strong>of</strong>ile <strong>of</strong>
its research. While community links are central to <strong>the</strong> aims and philosophies <strong>of</strong> FH-CMU and to wider
University and societal changes, in order to maximize <strong>the</strong> potential <strong>of</strong> <strong>the</strong> community links, <strong>the</strong>re is a
need for FH-CMU researchers to possess <strong>the</strong> necessary skills to take advantage <strong>of</strong> such links.
1.2 Problem two: Knowledge workers without <strong>the</strong> appropriate research skill
The previous section discussed FH-CMU’s community links. Building stronger community links can
provide research opportunities, but without knowledge workers with <strong>the</strong> appropriate skill, such
research opportunities are lost. This brings to <strong>the</strong> fore two key questions associated with raising FH-
CMU’s research pr<strong>of</strong>ile.
How can FH-CMU contribute to CMU’s ultimate aim <strong>of</strong> becoming a national research university?
How can FH-CMU manage talented researchers and empower knowledge workers to improve
<strong>the</strong>ir skills in conducting research?
The second part <strong>of</strong> this paper considers generating a shared vision and an empowerment framework
via knowledge management tools to provide answers to <strong>the</strong>se questions. A shared vision is a sense
<strong>of</strong> belonging, which is created by combining personal visions towards organizational outcomes. While
empowerment motivates individuals to share knowledge with o<strong>the</strong>rs, clear objectives and a selfmanaged
team are required to achieve <strong>the</strong> desired outcomes.
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To apply a shared vision to balance both personal and organizational goals and to generate an
empowerment framework requires five main steps, as shown in Figure 4.
Figure 4: The five main steps required to generate an empowerment framework for FH-CMU’s
knowledge workers
The first step is to establish an organizational goal. This is completed via stakeholder analysis to
investigate stakeholder requirements. Stakeholder analysis is used to investigate key stakeholder
needs (initially with regards to glocalization), so FH-CMU can ascertain <strong>the</strong> genuine needs <strong>of</strong>
knowledge workers.
The second step is to identify and select group members who are involved in research (particularly
glocalization) to share <strong>the</strong>ir knowledge as well as experience. A database from <strong>the</strong> research <strong>of</strong>fice will
be developed to identify qualified researchers.
The third step is to identify <strong>the</strong> <strong>the</strong>me <strong>of</strong> empowerment via focus groups and discussions based on
KPIs, which are set as requirements to assist CMU in becoming a first-class national research
university. The assumption is that building a shared vision is an effective solution to balance <strong>the</strong> aim
<strong>of</strong> both FH-CMU management and its knowledge workers.
The fourth step is to design <strong>the</strong> solution by adopting inter-project learning to create an empowerment
framework for FH-CMU. Inter-project learning is closely related to <strong>the</strong> knowledge management
approach and focuses on how individuals share <strong>the</strong>ir knowledge and experience to create
organizational knowledge.
The fifth step will verify <strong>the</strong> empowerment framework by implementing it into a quick win project to
assess and subsequently improve it. A quick win project is well suited to measure <strong>the</strong> effectiveness <strong>of</strong>
<strong>the</strong> framework in <strong>the</strong> presence <strong>of</strong> time limitations. This step focuses on how much knowledge workers
improve <strong>the</strong>ir research skills and how to internationalize local practices or wisdom.
FH-CMU strongly intends to utilize its own academic strengths to serve local communities in order to
meet CMU’s mission <strong>of</strong> community-based research and respond to <strong>the</strong> glocalization trend.
Community-based research will be based on leveraging local knowledge to produce internationally
relevant knowledge. Potential exists to create new social actors and structures that are essentially
“local in spirit but global in character.” To reach its ultimate goal, FH-CMU should use its intellectual
capital, especially human capital from various programs to develop local communities, for example,
economy, wisdom, quality <strong>of</strong> life, and social capital. It is necessary that knowledge management be
applied to manage FH-CMU research through an inter-project learning process in order to improve
<strong>the</strong> research capacity <strong>of</strong> FH-CMU knowledge workers’ skills should be improved to conduct research
and reach <strong>the</strong> KPI requirements related to becoming a national research university. Most importantly,
a win-win situation between FH-CMU management and FH-CMU knowledge workers will be
generated, by building a shared vision for sustainable cooperation. Once a shared vision has been
created, steps can be taken to move towards an empowerment framework. Finally, testing and
verification <strong>of</strong> this framework will take place via a quick win research project in order to assess <strong>the</strong>
effectiveness <strong>of</strong> <strong>the</strong> shared vision and empowerment framework.
2. Discussion and conclusion
As a part <strong>of</strong> Chiang Mai University, FH-CMU has an obligation to contribute to <strong>the</strong> vision <strong>of</strong> <strong>the</strong>
University in order to become an internationally recognized research-oriented organization. Currently
<strong>the</strong>re are two main problems hindering FH-CMU’s research output, which were identified as lack <strong>of</strong>
community links (which are essential to humanities research) and knowledge workers with insufficient
skills. Knowledge management tools were flagged as potential solutions and each <strong>of</strong> <strong>the</strong> two main
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Krith Karnjanakitti et al.
problems were considered in turn with reference to social network analysis, historical analysis and <strong>the</strong>
building <strong>of</strong> a shared vision and empowerment framework.
Following <strong>the</strong> 1997 economic crisis, <strong>the</strong> Thai government called on and supported public universities
to become engaged with rural grass roots development in a number <strong>of</strong> ways and <strong>the</strong> Commission on
Higher Education continues to provide such support. Individual universities, such as Ubon Rajathanee
University in nor<strong>the</strong>ast Thailand, have taken a number <strong>of</strong> interesting initiatives to promote
participatory development and sufficiency economy. Despite this, Thai universities and FH-CMU are
continuously pressured to interpret <strong>the</strong>ir mission in ways that do not support ei<strong>the</strong>r participatory
development or sufficiency economy. Although CMU has a statement within its remit to “develop <strong>the</strong>
University’s administration systems and management under <strong>the</strong> Sufficiency Economy Philosophy
while aiming at Sustainable Development”, it seems that <strong>the</strong> aims are subjective. FH-CMU does not
appear receptive enough to <strong>the</strong> Sufficiency Economy Philosophy to initiate any program to engage
<strong>the</strong> community. Most universities are likely to state that <strong>the</strong> three elements <strong>of</strong> <strong>the</strong>ir missions are
teaching, research and service to <strong>the</strong> community, but <strong>the</strong>re is little sign <strong>of</strong> greater engagement with
communities except for an interest in conducting action research with <strong>the</strong>m.
The intent <strong>of</strong> this research has been to consider how to raise <strong>the</strong> research pr<strong>of</strong>ile <strong>of</strong> FH-CMU by
investigating two main research inhibitors. With regards to community links, <strong>the</strong> role <strong>of</strong> FH-CMU is to
provide capacity building community services to local people, and local partner institutions in Nan
province. Results show a network-based partnership could transfer its intellectual capital to Nan
province and <strong>the</strong> accumulation <strong>of</strong> knowledge and experience will form effective and sustainable
networks. Apart from <strong>the</strong> ideological domination <strong>of</strong> mainstream economics and politics within <strong>the</strong>
organization, bureaucratic practices, as well as characteristics <strong>of</strong> Faculty members and organizational
culture appear to be major obstacles to organizational change. Therefore, <strong>the</strong> research suggests a
knowledge management approach, especially a consideration <strong>of</strong> a learning organization framework
as a solution to <strong>the</strong> problems <strong>of</strong> FH-CMU and knowledge workers’ behavior in order to build
pr<strong>of</strong>essional researchers and streng<strong>the</strong>n community-based research.
After assessing community links, and designing an empowerment framework to maximize research
potential <strong>of</strong> such links, <strong>the</strong>re is finally a need to test <strong>the</strong> effectiveness <strong>of</strong> research skill and community
links by assessing <strong>the</strong> research KPI <strong>of</strong> FH-CMU. Designing an effective empowerment framework for
knowledge workers and testing this framework through community links are future steps in this
research.
Acknowledgements
The authors gratefully acknowledge Dr. Paul Goldsmith for understanding, patience and dedication to
improve language, sequence, and completeness <strong>of</strong> this paper.
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730

Systems Archetypes and Learning Templates for
Enhancing Environmental Security
Marissara Kummool, Pitipong Yodmongkon, Nopasit Chakpitak, Paul
Goldsmith and Walaiporn Tantikanangkul
Chiang Mai University, Chiang Mai, Thailand
marissara_k@hotmail.com
pitipong@camt.info
nopasit@camt.info
p.goldsmith@dsl.pipex.com
uan777@gmail.com
Abstract: This paper presents a series <strong>of</strong> knowledge management research results under <strong>the</strong> concept <strong>of</strong> <strong>the</strong>
learning organisation. Coincident with rapid world changes, leaders are now required to play a key role as
designers in building organisations. In this study, systems thinking provides templates that help <strong>the</strong> Thai
government understand <strong>the</strong> dynamic complexity <strong>of</strong> environmental problems in nor<strong>the</strong>rn Thailand using a holistic
framework. The methodology is designed to capture knowledge from experts in Huai Hong Khrai Royal
Development Study Centre, Chiang Mai, Thailand. Knowledge was captured from forestry pr<strong>of</strong>essionals with up
to 30 years’ experience. This knowledge was modeled by applying systems archetypes as tools to identify
environmental problems, business processes for dealing with <strong>the</strong>se problems, and indicators for success. The
resulting behaviour models are beneficial to <strong>the</strong> Thai government, who can learn about techniques, appropriate
technologies, and ways <strong>of</strong> thinking, to speed up learning processes in o<strong>the</strong>r areas <strong>of</strong> <strong>the</strong> country, where similar
environmental issues arise. The research suggests an understanding <strong>of</strong> dynamic problems can help <strong>the</strong>
government’s decision making, enabling <strong>the</strong>m to <strong>of</strong>fer a basic structure or foundation upon which <strong>the</strong> models can
be fur<strong>the</strong>r developed and constructed. Results also indicate that financial capital from <strong>the</strong> government is one <strong>of</strong>
<strong>the</strong> key resources needed to effectively run environmental conservation activities in nor<strong>the</strong>rn Thailand. The
research proposes a series <strong>of</strong> environmental conservation systems, which require governmental financial
support. Without such support, <strong>the</strong>se systems may cease and prevent <strong>the</strong> sustainability <strong>of</strong> environmental
conservation in nor<strong>the</strong>rn Thailand, or <strong>the</strong> rest <strong>of</strong> <strong>the</strong> country, where <strong>the</strong>re is potential to use <strong>the</strong>se systems
archetypes as learning templates. The paper concludes by considering <strong>the</strong> application <strong>of</strong> learning templates to
o<strong>the</strong>r areas in <strong>the</strong> nor<strong>the</strong>rn region <strong>of</strong> Thailand. Fundamentally, <strong>the</strong> main aim <strong>of</strong> <strong>the</strong> research is to study <strong>the</strong> Thai
government’s role in utilising its intellectual and social capital to reduce financial aid, streng<strong>the</strong>n communities
from <strong>the</strong> bottom-up and create sustainable development.
Keywords: systems thinking, systems archetypes, learning templates, systems dynamics, sustainable
development, environmental conservation
1. Introduction
Rapid growth <strong>of</strong> industrial development has <strong>of</strong>ten resulted in an overuse <strong>of</strong> natural resources, without
a consideration <strong>of</strong> sustainability. Focusing only on economic development, without considering social
and environmental dimensions leads to deterioration in quality <strong>of</strong> life (UN 1987). As a result, many
world organisations, government agencies, and business sectors have increased interest in <strong>the</strong>
concept <strong>of</strong> “sustainable development”. The United Nations (UN 1987) and The World Conservation
Union (IUCN 2006) agree that sustainable thinking should combine three perspectives, which are
environmental, social, and economic sustainability.
Responding to <strong>the</strong> UN and IUCN declarations, <strong>the</strong> Thai government has adopted a sustainable
framework by implementing <strong>the</strong> 10th National Economic and Social Development Plan (2007-2010),
which aims to eliminate poverty by streng<strong>the</strong>ning local communities to work more closely with state
<strong>of</strong>ficials and promotes a “green and happiness society”, particularly focussing on economic and
environmental sustainability. As a result, <strong>the</strong>re are a significant number <strong>of</strong> projects with direct support
from <strong>the</strong> Thai government. One example is <strong>the</strong> Huai Hong Khrai Royal Development Study Centre
(HRDC), in Chiang Mai province, nor<strong>the</strong>rn Thailand.
This Royal Initiative Project has been successful in <strong>the</strong> promotion <strong>of</strong> sustainable concepts, mainly due
to <strong>the</strong> knowledge <strong>of</strong> <strong>the</strong> people involved. The knowledge created since HRDC’s conception is mainly
tacit knowledge with a danger <strong>of</strong> being lost if it is not properly captured and stored. This paper applies
systems archetypes and learning templates with <strong>the</strong> aim <strong>of</strong> capturing this tacit knowledge to promote
environmental security. The specific objective <strong>of</strong> this research is to capture HRDC knowledge by
applying systems thinking to design an archetype as a template, which is derived from on-site
research conducted at HRDC over a period <strong>of</strong> three months. This template has <strong>the</strong> potential to
illustrate how environmental, economic, and social sectors can become sustainable. The systems
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archetypes and learning templates generated by this research have <strong>the</strong> prospect for dissemination to
o<strong>the</strong>r organizations, ei<strong>the</strong>r from private or public sectors who could use or adopt <strong>the</strong> templates as a
model.
This paper is based on a case study from Huai Hong Khrai Royal Development Study Centre
(HRDC), which has undergone organisational changes and achieved success in natural resource
management. The research captures specific knowledge that has been used to solve environmental
problems during <strong>the</strong> last 30 years, and presents a learning template from <strong>the</strong> common behaviour <strong>of</strong>
forestry pr<strong>of</strong>essionals. The research applies knowledge management <strong>the</strong>ory in <strong>the</strong> form <strong>of</strong> systems
thinking to extract and structure tacit knowledge in danger <strong>of</strong> being lost. Prior to a consideration <strong>of</strong> <strong>the</strong>
research methodology, <strong>the</strong> HRDC is introduced, as well as <strong>the</strong> <strong>the</strong>oretical knowledge management
and systems thinking framework that underpins this research.
1.1 Huai Hong Khrai Royal Development Centre (HRDC)
As part <strong>of</strong> <strong>the</strong> King <strong>of</strong> Thailand’s vision <strong>of</strong> environmental sustainability, <strong>the</strong> HRDC is <strong>the</strong> first project to
conduct research to find <strong>the</strong> most effective methods, tools and technologies, to suit <strong>the</strong> needs <strong>of</strong>
communities in <strong>the</strong> nor<strong>the</strong>rn region <strong>of</strong> Thailand. HRDC covers approximately 8,500 rai (1,360
hectares) and was once non-vegetated land, with only bare soil and sandstone. It was established in
1982 in <strong>the</strong> area <strong>of</strong> Doi Saket district, Chiang Mai province, Thailand. HRDC’s emphasis is on
improving watersheds, promoting reforestation and developing sustainable agriculture. The centre
also aims to be a one-stop service, where local communities can learn and be trained to acquire skills
and knowledge related to <strong>the</strong> environment, livestock, and agriculture.
Government agencies, such as <strong>the</strong> Royal Irrigation Department, Royal Forest Department,
Department <strong>of</strong> Fisheries, Department <strong>of</strong> Livestock Development, Land Development Department, and
Department <strong>of</strong> Agriculture, have been involved with HRDC, along with two academic universities
(Chulalongkorn University and Chiang Mai University). HRDC has its own unique management style
that has facilitated its success. Each agency involved in HRDC has learned from each o<strong>the</strong>r via
shared goals and <strong>the</strong> same infrastructure, to create a platform for research, experimentation, and
publication. HRDC is thus considered a learning organisation, with a sense <strong>of</strong> shared knowledge and
vision.
The success <strong>of</strong> HRDC has significant impacts and tangible outcomes. The forest and <strong>the</strong> surrounding
areas within <strong>the</strong> centre have been changed from dry dipterocrap forest to mixed deciduous forest.
Tree density rate has increased from 100 to 240 per 1,600 sq. meters. Wildfire has cessated as <strong>the</strong>
forest remains moist and fertile, and in turn, <strong>the</strong> quality <strong>of</strong> soil has improved from sandstone to black
nutrient-rich humus soil. Additionally, <strong>the</strong>re are increasing rates <strong>of</strong> biodiversity as more than 45
species <strong>of</strong> plants and various types <strong>of</strong> wildlife have reappeared.
2. Conceptual framework and methodology
Senge (Senge 1990) presented how knowledge is moved through an organization by identifying <strong>the</strong>
notion <strong>of</strong> <strong>the</strong> “Learning Organisation”. The tools <strong>of</strong> learning organisations were considered as systems
thinking, personal mastery, mental models, building a shared vision, and team learning.
Learning is to find out what should be known, and to become confident in adapting to knowledge in a
new and unique way. Success by learning is assessed by <strong>the</strong> true understanding <strong>of</strong> <strong>the</strong> sense and
logic <strong>of</strong> experience. According to Senge et al. (1994), learning organisations can be considered as
continuously testing experience and transforming that experience into knowledge which is accessible
to <strong>the</strong> whole organisation, and relevant to its core purpose. To enhance an organisation’s capacity for
generative and adaptive learning, a leader must master an understanding <strong>of</strong> how information travels
through an organisation and be able to coalesce people around knowledge (Ewest 2010).
In light <strong>of</strong> <strong>the</strong> learning organisation concept, <strong>the</strong> success <strong>of</strong> HRDC has, to a considerable extent, <strong>of</strong>ten
come from leaders who are “systems thinkers”. According to Senge (1990), systems thinkers focus
more on underlying trends and forces for change and do it almost completely intuitively. Many <strong>of</strong> <strong>the</strong>m
cannot explain those intuitions to o<strong>the</strong>rs. In order to understand <strong>the</strong> problems that an organisation
faces, systems thinking has potential as a suitable tool to discover <strong>the</strong> governing processes that
underline such problems. It is also considered as a tool to extract tacit knowledge into explicit
knowledge to prevent <strong>the</strong> loss <strong>of</strong> expert knowledge. At HRDC, systems thinking and learning
organisation <strong>the</strong>ory could be used to understand environmental problems as well as <strong>the</strong> methods to
solve <strong>the</strong>m, while also preventing <strong>the</strong> loss <strong>of</strong> expert knowledge.
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The conceptual framework for <strong>the</strong> development <strong>of</strong> knowledge archetypes, and learning templates for
enhancing environmental security is illustrated in Figure 1. The methodology is adapted from Senge
et al. (1994), who proposed <strong>the</strong> concept <strong>of</strong> systems thinking, arguing that thinking in a causal loop is
more natural than a linear process. Loops and links are <strong>the</strong>refore regarded as <strong>the</strong> language <strong>of</strong>
systems thinking. Each loop represents a system and its dependencies. These representations help
shape cognitive processes from a wider perspective, which are used to develop <strong>the</strong> knowledge
archetypes <strong>of</strong> success at HRDC. The archetypes as a learning template could potentially be applied
where similar problems exist.
Figure 1: Conceptual framework for development <strong>of</strong> knowledge archetypes and learning templates
for enhancing environmental security (Adapted from Chakpitak, Khuntonthong and
Wibolpong 2009)
Having discussed <strong>the</strong> conceptual framework, Figure 2 shows an overview <strong>of</strong> <strong>the</strong> methodological steps
followed in this research.
Figure 2: An overview <strong>of</strong> <strong>the</strong> methodological steps followed in this research at <strong>the</strong> HRDC
In order to capture specific knowledge <strong>of</strong> <strong>the</strong> HRDC, a qualitative research method was adopted for
this study, since it allows an emphasis on individual process and meanings (Denzin and Lincole
1994). In-depth interviews were conducted with HRDC forestry pr<strong>of</strong>essionals with up to 30 years <strong>of</strong>
experience. Task observations were used to increase <strong>the</strong> richness <strong>of</strong> data and validate or elucidate
some <strong>of</strong> <strong>the</strong> interview responses. Questions were designed in order to learn what HRDC does
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effectively and what action it takes to prevent mistakes. Table 1 shows a sample <strong>of</strong> question types
used in <strong>the</strong> research.
Table 1: Samples <strong>of</strong> question types for in-depth interview
Topic Types <strong>of</strong> Questions
Tasks/ processes to generate <strong>the</strong> mixed deciduous forest
General background
Number <strong>of</strong> tasks/ processes involved
Persons responsible for each activity
Objectives Objectives <strong>of</strong> each task
Anticipative learning Sources <strong>of</strong> knowledge
How task can be achieved and <strong>the</strong> associated logic
How and why
Techniques/ tools to activate task
What next Next step after one task is finished
Risks that prevent or slow down success
Capacity and risk management
How to manage risks
How to manage capacity
Balancing Factors to be controlled to make <strong>the</strong> task/ process successful
Timing Best time to start a task
Resources Types <strong>of</strong> resource needed
O<strong>the</strong>r suggestions Suggestions to improve performance
The collection <strong>of</strong> data was conducted with recording media and a digital video camera. Data analysis
was completed in a stepwise fashion, crosschecking where appropriate. Detailed survey information
is shown in Appendix 1. All survey results were sent back to forestry pr<strong>of</strong>essionals at HRDC for
evaluation and verification. This was to check data collected from <strong>the</strong> forestry pr<strong>of</strong>essionals was
representative <strong>of</strong> <strong>the</strong>ir knowledge and to eliminate any errors. Results from data analysis were
checked with senior staff at <strong>the</strong> centre.
Following data analysis, a systems thinking approach was used to describe behaviour <strong>of</strong> forestry
pr<strong>of</strong>essionals at HRDC and systems archetypes were applied as a tool to design learning templates.
Each loop <strong>of</strong> learning template represents a one year period. Learning templates contain critical tasks
(T) and business parameters (P) <strong>of</strong> each system. From <strong>the</strong>se systems archetypes, by this knowledge
workers can learn ideas about how to get each task started and how to measure <strong>the</strong> success <strong>of</strong> each
process. When an organisation starts to learn, it will be able to design a new suitable pattern <strong>of</strong>
behaviour to cope with unexpected situations that may occur in <strong>the</strong> future. The resulting systems
archetypes are presented in <strong>the</strong> next section.
3. Results
The archetypes proposed by Senge (Senge et al.1994) were designed with three variants: reinforcing
loops, balancing loops, and delays, which can be explained as follows:
Reinforcing loops can ei<strong>the</strong>r increase or inhibit <strong>the</strong> core archetypes; and when <strong>the</strong>y promote or
inhabit growth <strong>of</strong> knowledge in a system, a positive feedback loop can occur. A reinforcing loop
will emerge once it is set against one balancing loop.
Balancing loops illustrate variables which limit knowledge growth and are set by <strong>the</strong> force <strong>of</strong> <strong>the</strong>
system (Clinton et al. 2006) and in essence, represent system equilibrium
Delays can occur in both reinforcing and balancing loops, which have significant impacts on <strong>the</strong>
system in terms <strong>of</strong> efficiency. In o<strong>the</strong>r words, removing delays is necessary if <strong>the</strong> cycle needs to
speed up (Senge et al. 1994).
Systems thinking, once in place, allows creation <strong>of</strong> an “archetype”. As loops and links are <strong>the</strong>
semantics <strong>of</strong> <strong>the</strong> structure, individually, <strong>the</strong>y reveal a surface structure, but once combined, a holistic
overview becomes apparant. This reveals <strong>the</strong> underlying <strong>the</strong>mes <strong>of</strong> <strong>the</strong> process. These are powerful
tools for coping with details that can be difficult to critically assess (Senge et al. 1994).
Figure 3 shows <strong>the</strong> overall systems archetype at HRDC. The systems archetype shows how
sandstone and non-vegetated land has been transformed into a mixed deciduous forest. The centre
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believes that by its very essence, thick and dense forest can create a positive feedback loop by
delaying flash flooding in <strong>the</strong> rainy season (May-September). This results in a decrease in landslides,
soil erosion, and retention <strong>of</strong> nutrients. Expert knowledge displayed within <strong>the</strong> systems archetype
shows how HRDC has successfuly responded to problems and this information could be shared with
o<strong>the</strong>r organisations in Thailand.
Figure 3: An overarching systems archetype at HRDC
When deciding to solve an environmental problem, HRDC must commit to a protection <strong>of</strong> <strong>the</strong> forest,
as <strong>the</strong> systems archetype shows thick and dense forest can create positive feedback loops, which
delay flash floods in <strong>the</strong> rainy season and decrease <strong>the</strong> rate <strong>of</strong> landslides. Soil erosion at HRDC has
gradually decreased, which promotes nutrients and moisture retention, that subsequently encourage
strong stabilising roots. Toge<strong>the</strong>r, when <strong>the</strong>se factors are integrated into system archetypes, forest
recovery will speed up.
Knowledge collected from experts shows that to increase <strong>the</strong> forest survival rate, <strong>the</strong> centre has
established a nursery in order to support afforestation. The main activity is to propagate traditional
seeds that are indigenous to nor<strong>the</strong>rn Thailand. More than 100,000 seeds are planted each year, and
can also be distributed to local communities for reforestation. At <strong>the</strong> same time, wildfire protection
campaigns are regularly introduced to local communities to raise <strong>the</strong>ir awareness. Additionally, soil
humidity is increased, where water stored in a reservoir is supplied through a tubing system and
sprayed on <strong>the</strong> forest. Check dams are constructed in dry creeks to bring back water resources, and
to slow down flash flooding and landslides in <strong>the</strong> rainy season. Delays occur at this stage as <strong>the</strong>
check dam takes 3-6 years to retain enough water to stabilise <strong>the</strong> water supply in <strong>the</strong> dry season.
Following this, fish bone irrigation ditches are implemented to distribute water into o<strong>the</strong>r areas.
As noted earlier, <strong>the</strong> Thai government has provided <strong>the</strong> budget for 30 years, but it is important to note
that HRDC has a strategic plan to prioritise requirements according to this budget. Budget
management is <strong>the</strong>refore key to maintaining project sustainability and this research suggests <strong>the</strong>
HRDC project can leverage systems archetypes to move towards financial autonomy in <strong>the</strong> future.
Figures 4-7 explain <strong>the</strong> process and business parameters <strong>of</strong> four systems; water spray tubing, check
dams, wildfire prevention, and seed propagation systems.
Figure 4 demonstrates Tasks (T1-T3) and business parameters (P1-P3) <strong>of</strong> <strong>the</strong> water spray tubing
system.
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Figure 4: Tasks (T1-T3) and business parameters (P1-P3) <strong>of</strong> a water spray tubing system
The first critical task (T1) is to survey <strong>the</strong> target area and discover whe<strong>the</strong>r it is possible to implement
this system. Business parameter (P1) indicates that this system is most beneficial for a very dry
mountainous area, sloping no more than 45 degrees. The second task (T2) indicates that two inches
<strong>of</strong> PVC is selected as <strong>the</strong> material. Business parameter P2 shows <strong>the</strong> best way to spray water is by
making two opposite holes on both sides <strong>of</strong> <strong>the</strong> tube to reduce <strong>the</strong> water pressure, hence keeping
nutrients in <strong>the</strong> soil. The third task (T3) is <strong>the</strong> supply <strong>of</strong> water. This depends on <strong>the</strong> fixed budget from
<strong>the</strong> government. In <strong>the</strong> first ten years, water has been supplied for 24 hours a day, seven days a
week. However, <strong>the</strong> water requirement gradually decreases. At present, this system is in use during
<strong>the</strong> dry season (October – April) for one day per week. Figure 5 illustrates and describes <strong>the</strong> systems
archetype for a check dam system.
The first critical task <strong>of</strong> <strong>the</strong> check dam (T1) is to streng<strong>the</strong>n <strong>the</strong> communities with <strong>the</strong> aim <strong>of</strong> increasing
<strong>the</strong>ir awareness, and educating <strong>the</strong>m in how to accomplish resource management. Business
parameter one (P1) indicates that, at least one environmental conservation group should be
established each year. To ensure success, natural conservation activities should be based on group
needs. The second task (T2) indicates that surveys must be undertaken with <strong>the</strong> involvement <strong>of</strong>
people in local communities, as this creates a sense <strong>of</strong> ownership and <strong>the</strong>y are, to some extent,
experts in <strong>the</strong> area. Business parameter two (P2) shows that <strong>the</strong> survey team must consider factors
concerning suitability <strong>of</strong> <strong>the</strong> location for <strong>the</strong> building <strong>of</strong> a check dam. For example, it should be built in
dry creeks, with a length not over 3-5 metres and depth not over 1.2 metres. The third task (T3) is
about how to build <strong>the</strong> check dam. To get <strong>the</strong> best outcomes, business parameter three (P3)
demonstrates that <strong>the</strong> check dams must be built by covering <strong>the</strong> whole basin area, starting from <strong>the</strong>
top <strong>of</strong> <strong>the</strong> mountain. According to <strong>the</strong> fourth task (T4), fish bone irrigation ditches are dug when <strong>the</strong>
check dam contains enough water. The main ditch is normally located in <strong>the</strong> direction <strong>of</strong> <strong>the</strong> slope
gradient and <strong>the</strong> lateral ditches are located in a fishbone pattern that helps achieve widespread soil
humidity. The size <strong>of</strong> fish bone ditches should not be over 15-20 cms.
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Figure 5: Tasks (T1-T4) and business parameters (P1-P4) <strong>of</strong> a check dam system
Building <strong>the</strong> check dam is best accomplished during <strong>the</strong> dry season (September- April) and must be
completed before <strong>the</strong> rainy season starts (May- August). Learning speed and attitudes <strong>of</strong> <strong>the</strong> villagers
towards water resource management should be monitored, as it can affect <strong>the</strong> growth <strong>of</strong> <strong>the</strong> system.
Equally important is <strong>the</strong> Buddhist ceremony (Leang Pee Khun Nam) as a strategy to streng<strong>the</strong>n <strong>the</strong>
collaboration, praying for <strong>the</strong> forest and asking for forgiveness for historical forest exploitation.
According to Figure 6, timing plays a crucial role in a wildfire prevention system, as wildfire normally
occurs during <strong>the</strong> summer (February – April).
The first critical task (T1) starts in October in order to prepare for coping with wildfire. The first
business parameter <strong>of</strong> this task (P1) indicates that HRDC’s <strong>of</strong>ficers must be trained to use <strong>the</strong> fire
fighting equipment. All equipment must be in working order. The second task (T2) also starts in
October. HRDC’s <strong>of</strong>ficers educate villagers on causes and effects <strong>of</strong> wildfire. The second business
parameter (P2) indicates that awareness among villagers can be monitored using <strong>the</strong> fire fighting
groups formed by villagers. At this stage, delays can occur, as attitudes take time to shift. Hence, <strong>the</strong>
Buddhist ceremony can increase <strong>the</strong>ir awareness and collaboration. The third task (T3) concerns
making a strip <strong>of</strong> fire break in February. With collaboration between HRDC <strong>of</strong>ficers and villagers, <strong>the</strong>
third business parameter (P3) can be achieved, with at least 200 kilometers <strong>of</strong> firebreak around <strong>the</strong>
centre. The last task <strong>of</strong> <strong>the</strong> system (T4) is implementing <strong>the</strong> rule for controlled burning around <strong>the</strong>
centre. To achieve <strong>the</strong> outcome, wildfire must not occur within <strong>the</strong> designated area.
To streng<strong>the</strong>n <strong>the</strong> communities and to facilitate <strong>the</strong>m to be aware <strong>of</strong> <strong>the</strong> natural resources in <strong>the</strong>ir own
area are <strong>the</strong> key factors <strong>of</strong> <strong>the</strong>se systems archetypes. As a result, <strong>the</strong> HRDC encourages villagers to
form a forest community group so that <strong>the</strong>re is a sense <strong>of</strong> ownership. Figure 7 illustrates <strong>the</strong> seed
propagation system archetype and how it can be processed within one fiscal year.
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Figure 6: Tasks (T1-T4) and business parameters (P1-P4) <strong>of</strong> a wildfire prevention system
The first task (T1) concerns seed collection. Business parameter one (P1) indicates <strong>the</strong> outcome <strong>of</strong>
this task. Good quality seeds can be selected from <strong>the</strong> parent plants with <strong>the</strong> correct maturity. The
second task (T2) is <strong>the</strong> process <strong>of</strong> seed propagation. Seeds must be sown in <strong>the</strong> seedbeds, which are
made from sand. The second business parameter (P2) indicates that no less than 80 percent <strong>of</strong>
seeds must be sprouting. Several months afterwards, small plants from <strong>the</strong> propagation nursery are
transferred to a small black bag containing one plant per bag (T3). The business parameter <strong>of</strong> <strong>the</strong>
third task (P3) clarifies that at least 100,000 two-year-old plants are required for afforestation activities
each year. After afforestation (T4), business parameter four (P4) indicates that <strong>the</strong> tree density rate
should increase every year.
During T2-T4, delays can occur because plants may not grow as quickly as expected. The centre
uses a scheduling plan to effectively manage <strong>the</strong> system. According to interviews, <strong>the</strong>re are
approximately 150 plant species which need to be propagated each year. The challenge is that each
species <strong>of</strong> plant normally yields seeds at different times and also requires different propagation
methods. The location <strong>of</strong> good parent plants also varies across <strong>the</strong> nor<strong>the</strong>rn region <strong>of</strong> Thailand.
4. Conclusion
Most organisations, especially in Thailand, have problems in implementing best practice due to
difficulty in capturing tacit knowledge. Many academics believe that tacit knowledge cannot be
extracted explicitly. This research has used systems thinking to create a systems archetype as a
learning template. Results show this archetype does not impart a full solution, but does provide a
useful framework to consider and implement solutions.
One <strong>of</strong> <strong>the</strong> key factors in determining HRDC’s success, is <strong>the</strong> continuity <strong>of</strong> monetary support over a
thirty-year period. It could be argued that financial aid plays an important role, and is perhaps, <strong>the</strong> key
mechanism in HRDC’s success. It should not be <strong>the</strong> sole responsibility for its success, as <strong>the</strong> people
involved, who believe in <strong>the</strong> same vision as <strong>the</strong> King <strong>of</strong> Thailand, implement <strong>the</strong> vision with <strong>the</strong>
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appropriate strategies and infrastructure. There is wide and deep collaboration from academics, civil
servants, and communities. The results <strong>of</strong> <strong>the</strong> thirty years development <strong>of</strong> HRDC can be leveraged to
yield tacit knowledge that could be effective in learning and applying lessons elsewhere in Thailand.
The resulting behaviour models are beneficial to <strong>the</strong> Thai government who can learn about
techniques, appropriate technologies and ways <strong>of</strong> thinking, to speed up learning processes in o<strong>the</strong>r
areas <strong>of</strong> <strong>the</strong> country, where similar environmental issues arise. The research suggests an
understanding <strong>of</strong> dynamic problems can help <strong>the</strong> government’s decision making, enabling <strong>the</strong>m to
<strong>of</strong>fer a basic structure or foundation upon which <strong>the</strong> models could be fur<strong>the</strong>r developed and
constructed. During budgetory constraints, <strong>the</strong> models may also aid decision-makers in channelling
funds in <strong>the</strong> most effective way, thus leading towards financial and environmental sustainability.
Figure 7: Tasks (T1-T4) and business parameters (P1-P4) <strong>of</strong> a seed propagation system
This research has some limitations, particularly that it was a three-month project with potential for
expansion. A key question remains: will HRDC be able to sustain <strong>the</strong> centre without aid from <strong>the</strong> Thai
government? This question promotes fur<strong>the</strong>r research on how to utilise intellectual and social capital
to create effective collaboration between academics, communities and HRDC staff to bring about
effective and sustainable development.
Acknowledgements
The authors gratefully acknowledge <strong>the</strong> cooperation <strong>of</strong> <strong>the</strong> Huay Hong Khrai Royal Development
Centre (HRDC), which provided data used in this study. The authors would also like to acknowledge
<strong>the</strong> College <strong>of</strong> Arts, Media and Technology, and <strong>the</strong> Graduate School, Chiang Mai University, for
supporting <strong>the</strong> lead author’s work through a scholarship.
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5. Appendix 1: Detailed questionnaire information: questions asked <strong>of</strong>
forestry pr<strong>of</strong>essionals to extract tacit knowledge
Synergy Systems Objectives How-Why
Environmental
Conservation
References
Water spray
tubing in
forest
Add
moisture in
soil
Reduce
damage
from forest
fires
Check dam Delay flash
floods and
landslides
Trap
sediment
Contain
moisture in
soil
2” PVC tubes
are piped
along <strong>the</strong>
contour <strong>of</strong> <strong>the</strong>
mountain
Make two
opposite
holes on side
<strong>of</strong> <strong>the</strong> tube
(not only one
on top) to
slow drainage
Cooperate
with villagers
to obtain
accurate
information
Size <strong>of</strong> canal
for building
traditional
check dam:
wide 3-5 m. /
depth < 1.2
m.
Canalised by
digging deep
across canal
until new level
is found
(changed in
soil colour)
Build two lines
<strong>of</strong> bamboo
wall by hitting
bamboo pillar
into ground as
deep as
possible
Systems Objectives
Use soil
mixed with
cement to
fulfil <strong>the</strong> pit
between
bamboo wall
How-Why
Wildfire
prevention
Prevent
wildfire
Meet villagers
in personal to
build
awareness <strong>of</strong>
forest fire
prevention
campaign
Prepare
equipments
and train
staffs to be
ready to fight
<strong>the</strong> wildfire
Sweep <strong>the</strong>
ground in <strong>the</strong>
centre where
are covered
What Next
Wildfire
prevention
program
Afforestation
Repair
damage to
edge <strong>of</strong>
check dam
Fishbone
irrigation
ditch
Making wet
fire break by
planting
banana
plant
What Next
Afforestation
Prepare fire
observation
station
fertiliser
from dry
leaves
Capacity &
Risk
Management
Financial
management
is needed
due to its
high cost <strong>of</strong>
material, and
labour.
Project
management
is needed
due to
inflexible
time chart
Start building
check dam
from top <strong>of</strong>
<strong>the</strong> mountain
to prevent
damage
Target area
<strong>of</strong> building
check dam
must cover
<strong>the</strong> whole
river basin.
Educate
people about
relationship
between
human,
water, and
forest
Arranging
Buddhist
ceremony
Capacity &
Risk
Management
Building
sense <strong>of</strong>
ownership
among
villagers by
arranging
and
supporting
community
forest
Arranging
Buddhist
ceremony
Sweep <strong>the</strong>
ground
Balancing
Controlled
length <strong>of</strong>
time when
sprayed
water
Previous:
24 hr.
10 th yr:
every 4
days
Now: 1 day
a week in
dry season
Amount <strong>of</strong>
budget
received
Attitude
and
motivation
<strong>of</strong> villagers
in building
check dam
Learning
speed <strong>of</strong>
villagers
Balancing
Attitude
and
motivation
<strong>of</strong> villagers
in
prevention
<strong>of</strong> wildfire
Timing
Piping
system
must finish
before dry
season
(before
October <strong>of</strong>
each year)
Building <strong>of</strong>
check dam
must finish
before
raining
reason
(before May
<strong>of</strong> each
year)
Target:
during dry
season, dry
creek
Timing
October:
Visit
villagers,
educate and
campaign to
prevent
forest fire
Prepare
equipment
and train
staff start in
October
February:
Sweep <strong>the</strong>
ground
covered by
Resource
Budget
from
government
Staff in
irrigation
department
Budget
from
government
(THB 5,000
per check
dam)
Staff in
Forest
department
Villagers
who join
<strong>the</strong> project
Resource
Budget
from
government
All staffs in
<strong>the</strong> centre
Villagers
who live
around <strong>the</strong>
centre (17
villages)
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United Nations (2005) "2005 World Summit Outcome", presented at <strong>the</strong> 2005 World Summit, New York.
741

Critical Success Factors in KM-Based Innovative
Business: Evidence From Systematic Reviews
Chaiyatorn Limapornvanich 1, 2 , Mark Gannon 1 and Margaret Lumbers 1
School <strong>of</strong> Management, University <strong>of</strong> Surrey, UK
National Innovation Agency (Public Organization), Thailand
c.limapornvanich@surrey.ac.uk
m.gannon@surrey.ac.uk
m.lumbers@surrey.ac.uk
Abstract: Innovation has long been recognised as <strong>the</strong> engine <strong>of</strong> growth. Companies that have established
<strong>the</strong>mselves as technical and market leaders have shown <strong>the</strong> ability to manage <strong>the</strong>ir resources over time and
develop capabilities that influence <strong>the</strong>ir innovation performance. As a core competitive element, knowledge is a
crucial asset towards innovation achievement. Consequently, broad activities <strong>of</strong> knowledge management (KM)
are initiated and implemented. Being able to identify a wide range <strong>of</strong> factors that influence <strong>the</strong> success <strong>of</strong>
innovation can allow companies to consider whe<strong>the</strong>r <strong>the</strong>y already have <strong>the</strong> required capabilities or whe<strong>the</strong>r <strong>the</strong>y
need to put some effort into building <strong>the</strong>m. Multiple studies in <strong>the</strong> areas <strong>of</strong> innovation management and
knowledge management have been conducted previously to determine <strong>the</strong>ir critical success factors (CSFs) with
<strong>the</strong> purpose <strong>of</strong> attaining greater understanding and improving <strong>the</strong> possibility <strong>of</strong> accomplishment. Although
knowledge management is not <strong>the</strong> same as innovation management, <strong>the</strong>re is a huge area <strong>of</strong> interaction and
overlap between <strong>the</strong>m. Moreover, no study has yet investigated <strong>the</strong> relationship between <strong>the</strong> CSFs <strong>of</strong> <strong>the</strong>se two
areas. Therefore, common factors and o<strong>the</strong>r featured factors within <strong>the</strong>se two areas may possibly be found from
<strong>the</strong> extant studies. Based on <strong>the</strong> idea <strong>of</strong> evidence-based practice, systematic review is an approach with rigorous
and transparent processes to identify and syn<strong>the</strong>sise useful information from existing research evidence. This
approach <strong>of</strong>fers an opportunity to take <strong>the</strong> quality <strong>of</strong> literature into <strong>the</strong> reviewing process and provides <strong>the</strong> ability
to handle large and complex bodies <strong>of</strong> research literature, especially when multi-disciplinary in scope; as a result
findings with a higher degree <strong>of</strong> quality and more comprehensive coverage can be revealed. The aim <strong>of</strong> this
literature-based study is to examine any consistency and interrelationship between <strong>the</strong> CSFs <strong>of</strong> innovation
management and knowledge management by using only <strong>the</strong> rigorous process <strong>of</strong> systematic review. Additionally,
<strong>the</strong> list <strong>of</strong> CSFs along with <strong>the</strong> conceptual framework from <strong>the</strong> study can enhance <strong>the</strong> possibility <strong>of</strong> being
successful in implementing knowledge management in KM-based innovative companies.
Keywords: knowledge management, innovation management, critical success factors, systematic review
1. Introduction
The future direction <strong>of</strong> a company is recognised to result from its own capabilities: level <strong>of</strong> technology,
skills developed, intellectual property, managerial processes and its routines (Teece and Pisano,
1994). This means <strong>the</strong> future activities <strong>of</strong> a company are constrained by its previous activities and
what it has learnt (Tidd, 2000). In o<strong>the</strong>r words, <strong>the</strong> current position and knowledge base <strong>of</strong> a company
strongly influence its future opportunities. An organisation’s knowledge base is made up <strong>of</strong> five
dimensions, which are individual assets, technological assets, administration assets, external assets
and projects (Adler and Shenhar, 1990). The effective assimilation and application <strong>of</strong> this
accumulated knowledge serve to distinguish innovative companies from <strong>the</strong>ir less successful
counterparts. Practically, companies focus on building <strong>the</strong>ir knowledge bases cumulatively, sharing
knowledge and learning from past experience, while at <strong>the</strong> same time generating a new and diverse
knowledge base as <strong>the</strong> source <strong>of</strong> new developments. Managing <strong>the</strong>se activities effectively is a prime
objective for companies seeking to be innovative (Quintas, 2002).
The recognition <strong>of</strong> knowledge as a crucial asset towards competitiveness and innovation obviously
stands out in industry (Nonaka et al., 2000; Darroch, 2005). Indeed, <strong>the</strong> value <strong>of</strong> knowledge could be
actually claimed by its movement, flow, or growth. This leads to activities <strong>of</strong> knowledge sharing,
acquiring and exchanging, which consequently generate new knowledge. Additionally, <strong>the</strong> conversion
process between explicit and tacit knowledge can enhance knowledge creation within an organisation
and knowledge expansion across organisations (Nonaka and Takeuchi, 1995). To consolidate <strong>the</strong>
knowledge-creating process and allow knowledge flow through <strong>the</strong> conversion process effectively, it
seems that knowledge management should be employed as a facilitating tool. As <strong>the</strong> supportive tool,
knowledge management enables a company to gain and retain greater value from its core
competencies or even create new competencies. Consequently, multiple studies have been
conducted to investigate <strong>the</strong> influential factors accounting for accomplishment in knowledge
management and innovation management. Despite significant research having prescribed <strong>the</strong>
742

Chaiyatorn Limapornvanich et al.
success path in each area, no studies have yet investigated <strong>the</strong> relationship between <strong>the</strong> key success
factors <strong>of</strong> <strong>the</strong>se two coherent areas. For this reason, this paper aims to review and determine
common critical success factors and o<strong>the</strong>r featured factors within <strong>the</strong>se two areas suggested by
different scholars in <strong>the</strong> literature by using only <strong>the</strong> rigorous process <strong>of</strong> systematic review.
2. Literature review
Innovation can be viewed as a ‘creative destruction’ wave; <strong>the</strong> term ‘creative destruction‘ was used to
describe <strong>the</strong> process <strong>of</strong> setting up <strong>of</strong> new markets which in parallel illustrates <strong>the</strong> process <strong>of</strong> industrial
mutation – incessantly destroying old industries and creating new ones (Schumpeter, 1976). Many
<strong>the</strong>ories have been proposed to shed light onto <strong>the</strong> different aspects <strong>of</strong> organisational management
which might be regarded as influential factors for a company to innovate. However <strong>the</strong>re is no
dominant <strong>the</strong>ory on <strong>the</strong> field and it might be supposed to be an ‘immature science’ (Forsman, 2010).
Innovation is a product <strong>of</strong> <strong>the</strong> bundling <strong>of</strong> an organisation’s resources and competencies in order to
sustain competitive advantage. Specifically, only valuable, rare, imperfectly tradable and inimitable
resources/competencies can deliver such advantages (Teece et al., 1997). Indeed it should be seen
as a management process <strong>of</strong> a series <strong>of</strong> activities ra<strong>the</strong>r than a singular event; in o<strong>the</strong>r words it is <strong>the</strong>
result <strong>of</strong> a combination <strong>of</strong> various inputs, processes and occurrences (Trott, 2008). Different
organisations are likely to be comprised <strong>of</strong> different organisational functions, depending on <strong>the</strong> nature
<strong>of</strong> <strong>the</strong>ir business. Consequently, innovation management is likely to be more complicated because <strong>of</strong>
<strong>the</strong> necessity <strong>of</strong> interactions between various business activities and its orientation in an
organisation’s context.
Due to <strong>the</strong> fact that knowledge is considered as an invaluable and manageable asset, knowledge
creation and application have been universally recognised as <strong>the</strong> basis for innovative businesses. In
o<strong>the</strong>r words, innovation management is substantially about managing an organisation’s knowledge.
Being considered as a strategy to make knowledge available, at anytime, anywhere, and in any form,
to those who need it (Nonaka and Takeuchi, 1995; Davenport and Prusak, 1998), knowledge
management <strong>the</strong>refore stimulates <strong>the</strong> greatest interest in and is influential over innovation (Grant,
2000). However, managing knowledge in organisations has become more complicated because <strong>of</strong>
increasing growth in <strong>the</strong> availability <strong>of</strong> knowledge to organisations (Du Plessis, 2007).
With <strong>the</strong> nature <strong>of</strong> interdisciplinary science, both innovation management and knowledge
management are considered a socio-technical challenge for organisations. An integration <strong>of</strong> various
perspectives is indispensable, along with synergy with local context. Even though <strong>the</strong>re have been
some beneficial suggestions proposed by <strong>the</strong>oretical studies, little field research has been done as
guidance to successful implementation. For this reason, <strong>the</strong> principle <strong>of</strong> CSFs has been adopted in
<strong>the</strong>se two areas by many researchers. A CSF approach is one that helps a company to determine
precisely a group <strong>of</strong> key factors required for its future success. The identification <strong>of</strong> CSFs pushes <strong>the</strong>
manager forward to scrutinise <strong>the</strong>se factors carefully and measure <strong>the</strong>m (Rockart, 1979). Being
dominated by a company’s environment, CSFs need to be oriented to <strong>the</strong> particular situation <strong>of</strong> an
organisation. Different situations, e.g., industry, division and individual, can lead to different critical
success factors.
Regarding <strong>the</strong> CSFs in <strong>the</strong>se two multi-disciplinary areas, many existing studies have been conducted
that provide useful information and insights for practitioners. On one side, an ability to identify <strong>the</strong>
crucial factors that influence <strong>the</strong> success <strong>of</strong> innovation can allow companies to consider whe<strong>the</strong>r <strong>the</strong>y
already have <strong>the</strong> required capabilities or whe<strong>the</strong>r <strong>the</strong>y need to put some effort into building <strong>the</strong>m. For
instance, one study indicates that companies which would like to improve innovation performance
firstly need to place <strong>the</strong>ir focus on <strong>the</strong> development <strong>of</strong> factors stimulating innovation; growth <strong>of</strong> <strong>the</strong>se
stimulating factors <strong>the</strong>n builds up an environment for nurturing innovation capacity (Prajogo and
Ahmed, 2006). Whilst human factors, such as leadership role, people management, knowledge
management and creativity management, are considered to be factors influencing innovation
stimulus, technological factors, such as technology management and R&D management, govern
innovation capacity. Therefore integration <strong>of</strong> <strong>the</strong> human factors and technological factors is a key
component to determine innovation performance. On <strong>the</strong> o<strong>the</strong>r side, deployment <strong>of</strong> KM with an
absence <strong>of</strong> <strong>the</strong> ability to discern contributing factors to success may lead to failure <strong>of</strong> <strong>the</strong> KM initiative
or require more effort from <strong>the</strong> organisation (Chan and Chau, 2005). Various kinds <strong>of</strong> factors
reckoned as helpful elements in KM implementation are mentioned by scholars. For instance, factors
such as organisational culture, infrastructure and resource; technological infrastructure; KM strategy
743

Chaiyatorn Limapornvanich et al.
and process; and human resource development have been commonly stated as key success factors.
These success factors should be kept in mind as <strong>the</strong> critical issues that organisations have to deal
with when implementing KM initiatives.
To handle <strong>the</strong> large and complex body <strong>of</strong> research literature <strong>of</strong> <strong>the</strong>se two areas, a systematic review
can be considered a rigorous and prudent approach providing an ability to build coherent structure
from existing studies (Oakley et al., 2005; Dixon-Woods et al., 2006).
3. Methodology
Systematic review has been developed by deploying rigorous and transparent processes to <strong>the</strong>
traditional process <strong>of</strong> literature review, with <strong>the</strong> objective to identifying and syn<strong>the</strong>sising useful
information from research evidence (Petticrew and Roberts, 2006; Victor, 2008). Through a
systematic approach, findings with a higher degree <strong>of</strong> quality and more comprehensive coverage can
be syn<strong>the</strong>sised from <strong>the</strong> review process and greater validity and reliability in <strong>the</strong> findings will be
attained as a result. In comparison with <strong>the</strong> traditional review, <strong>the</strong> systematic review is usually
concentrated on answering a specific question or testing a specific hypo<strong>the</strong>sis, ra<strong>the</strong>r than simply
exploring all relevant knowledge about a particular issue (Petticrew and Roberts, 2006). By rigorously
examining a range <strong>of</strong> research, <strong>the</strong> answer fitting to <strong>the</strong> purposive questions can be unfolded with
supportive evidence. The systematic review generally consists <strong>of</strong> some distinctive stages required for
outlining structural and reproducible methods <strong>of</strong> <strong>the</strong> review process. There are a few nuances in
recommended procedures amongst different researchers (Greenhalgh et al., 2005; Dixon-Woods et
al., 2006; Victor, 2008); however <strong>the</strong>y all share some common essential stages which are planning,
search, appraisal and syn<strong>the</strong>sis.
Firstly, in <strong>the</strong> planning phase, a strictly focused question needs to be defined, following which
pertinent and significant parameters can be identified as selection criteria; this in turn helps to limit <strong>the</strong>
amount <strong>of</strong> evidence needed. In this paper, <strong>the</strong> question is to find influential factors <strong>of</strong> and
relationships between knowledge management and innovation management. For practical reasons,
this paper was designed by combining two main strategies in <strong>the</strong> search phase: manual search and
electronic search. The manual search deployed reference chaining from <strong>the</strong> literature reviewed.
Conversely, <strong>the</strong> electronic search adopted three main keywords - ‘critical success factor’, ‘success
factor’ and ‘best practice’ - as search terms for searching an electronic database. A range <strong>of</strong>
comprehensive strategies is <strong>the</strong>n developed in order to locate relevant evidence as well as make <strong>the</strong>
search process practicable and reproducible. The main objective <strong>of</strong> deploying <strong>the</strong>se two approaches
toge<strong>the</strong>r is to strike a balance between <strong>the</strong> recentness <strong>of</strong> <strong>the</strong> results and <strong>the</strong>ir relevance to <strong>the</strong>
question, and at <strong>the</strong> same time confine <strong>the</strong> number <strong>of</strong> papers to a manageable level. With regard to
<strong>the</strong> deployed approaches, <strong>the</strong>re were 17 articles found from <strong>the</strong> electronic search (11 knowledge
management articles and 6 innovation management articles) and 18 articles from <strong>the</strong> manual search
(14 knowledge management articles and 4 innovation management articles).
The appraisal phase is a crucial stage making <strong>the</strong> systematic review more trustworthy; it aims to
determine whe<strong>the</strong>r <strong>the</strong> evidence is adequately appropriate for answering a specific question. An
assessment in each study in terms <strong>of</strong> <strong>the</strong> methods and results is hence required to prioritise <strong>the</strong>
evidence that appears to be more credible. There are three main quality issues that need to be
covered when appraising qualitative research: <strong>the</strong> reporting <strong>of</strong> a study, <strong>the</strong> employed strategies and
<strong>the</strong> appropriateness <strong>of</strong> <strong>the</strong> methods (Thomas and Harden, 2008). However, under <strong>the</strong> scope <strong>of</strong> this
paper, <strong>the</strong> objective <strong>of</strong> conducting <strong>the</strong> systematic review is to discover new ideas from papers
appearing likely to be relevant, in o<strong>the</strong>r words aiming for qualitative achievement. It might <strong>the</strong>refore be
inferred that an importance is placed on <strong>the</strong> relevance to <strong>the</strong> question ra<strong>the</strong>r than <strong>the</strong> satisfaction <strong>of</strong>
particular methodological standards.
Finally, <strong>the</strong> syn<strong>the</strong>sis phase aims to build a rich picture <strong>of</strong> multiple studies from various traditions and
characteristics by drawing on and interpreting all relevant data, including <strong>the</strong> details <strong>of</strong> context,
methodologies and findings. The syn<strong>the</strong>sis method will be varied according to <strong>the</strong> type <strong>of</strong> evidence
included (Victor, 2008). Two types <strong>of</strong> data generally appear in studies: quantitative data and
qualitative data. This has to be taken into consideration when selecting <strong>the</strong> method <strong>of</strong> syn<strong>the</strong>sis. On
one hand, a set <strong>of</strong> quantitative studies with a similarity in research questions, methods and findings is
mainly syn<strong>the</strong>sised by statistical meta-analysis. On <strong>the</strong> o<strong>the</strong>r hand, qualitative studies generally use a
narrative form <strong>of</strong> syn<strong>the</strong>sis, such as meta-ethnography and <strong>the</strong>matic syn<strong>the</strong>sis (Thomas and Harden,
2008; Victor, 2008). With regard to <strong>the</strong> objective <strong>of</strong> this paper, <strong>the</strong> <strong>the</strong>matic syn<strong>the</strong>sis was
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Chaiyatorn Limapornvanich et al.
appropriately adopted due to its ability to extract <strong>the</strong>mes as well as draw up models from different
types <strong>of</strong> data.
4. Findings and discussion
In <strong>the</strong> syn<strong>the</strong>sis process, each included article was reviewed to explore its results and extract its ideas
by capturing words, sentences or even paragraphs being relevant to <strong>the</strong> defined question (known as
‘initial codes’). At <strong>the</strong> end <strong>of</strong> each review, <strong>the</strong> initial codes were developed by eliminating less-relevant
codes and merging similar-meaning codes toge<strong>the</strong>r (hereafter referred to ‘codes’). The codes from all
inclusions were syn<strong>the</strong>sised at <strong>the</strong> same time for developing descriptive <strong>the</strong>mes in which a group <strong>of</strong>
similarities was put toge<strong>the</strong>r as a category. Any code is likely to be promoted as a category as it could
represent <strong>the</strong> meaning <strong>of</strong> <strong>the</strong> underlying codes; in <strong>the</strong> same manner a new category is likely to be
coined as well if it could represent a group <strong>of</strong> categories. To combine <strong>the</strong>se categories with
congruence to <strong>the</strong> specific concerns <strong>of</strong> <strong>the</strong> review, <strong>the</strong>mes were finally developed. Of 35 articles, 231
codes were extracted under 26 categories, and 9 <strong>the</strong>mes were generated as key areas enhancing <strong>the</strong>
possibility <strong>of</strong> being successful in implementing knowledge management and innovation management.
From an organisational perspective, <strong>the</strong>se developed <strong>the</strong>mes can be presented in four dimensions <strong>of</strong>
managerial, environmental, process and infrastructure influences, as illustrated in Figure 1. Fur<strong>the</strong>r
descriptive details <strong>of</strong> <strong>the</strong> syn<strong>the</strong>sis <strong>of</strong> <strong>the</strong>se four dimensions are presented as follows.
Environmental influence
Managerial
influence
Process
influence
Infrastructure
influence
1) Management
support
3) Measurement
5) Organisational culture
8) Information
technology
7) Managing process
2) Strategy
6) Organisational structure
4) Reward and
recognition
9) Resource
management
Figure 1: Model <strong>of</strong> enhancing influences on <strong>the</strong> success <strong>of</strong> knowledge and innovation management
Managerial influence
As expected, activities leading to changes in organisations, management support is an instrumental
factor to overcome resistance within <strong>the</strong> organisation. Support and commitment from top-level
management serve as a driving force to encourage individual staff or groups to innovative thinking
and risk taking (Davenport et al., 1998; Dooley et al., 2000; Alazmi and Zairi, 2003; Wong and
Aspinwall, 2005). Long-term commitment <strong>of</strong> top management and determination to adopt changes
should be obviously expressed at all levels, as <strong>the</strong>y can underpin <strong>the</strong> success <strong>of</strong> o<strong>the</strong>r success
factors (Van der Panne et al., 2003; Chong, 2006). Moreover, management personality and style help
to direct innovative changes and mobilise employees’ ability to innovate (Dooley et al., 2000; Smith et
al., 2008), as well as directly contribute to KM success (Forcadell and Guadamillas, 2002).
In terms <strong>of</strong> strategy, an appropriate alignment with business strategy is vital for <strong>the</strong> success <strong>of</strong>
innovation management and knowledge management (Egbu, 2004; Haider, 2009; Rehman et al.,
2010). Proactive, synergy and risk taking strategies are highlighted in innovative business and new
745

Chaiyatorn Limapornvanich et al.
product/service development needs to be a part <strong>of</strong> business strategy and highly correlated with
corporate vision and goals (Jensen and Harmsen, 2001). Product and market related factors, such as
innovativeness, development process, quality, price, market competition and market introduction, are
suggested to be involved in innovation strategy, as <strong>the</strong>y are acknowledged as success factors. (Van
der Panne et al., 2003).
Measurement <strong>of</strong> performance should be adapted to foster changes and current developments as well
as examine any emergent changes (Dooley et al., 2000; Chong and Choi, 2005). Additionally,
recognition <strong>of</strong> <strong>the</strong> ownership <strong>of</strong> initiative ideas/knowledge or <strong>the</strong> contribution to achievements, along
with an effective reward process, should be extensively promoted and communicated company-wide
in order to motivate employees to innovate (McDonough III, 2000; Du Plessis, 2007; Bishop et al.,
2008). An argument regarding preference between short-term and long-term, direct and indirect, or
financial and non-financial rewards is raised with concerns as to suitability. However, long-term
incentives have been advised as <strong>the</strong> most effective means <strong>of</strong> employee motivation (Oliver and
Kandadi, 2006; Bishop et al., 2008).
Environmental influence
Changes in organisational culture are crucial for success in innovation management as <strong>the</strong>y are in
knowledge management. An open and sharing culture has been recognised as a key supportive
element; hence communication, collaboration, cooperation and opportunities for networking are
advised to be implemented organisation-wide (Hung et al., 2005; Bishop et al., 2008; Smith et al.,
2008). Openness and transparency are imperative to establish trust among staff (Hung et al., 2005;
Akhavan et al., 2006; Forsman, 2009). Additionally, employee empowerment and involvement should
be promoted alongside developing <strong>the</strong>ir attitude to risk and innovation.
Changes in organisational structure have also been highlighted by scholars. Delegation <strong>of</strong> authorities
and key staff members should be stated clearly and open cross-functional teams should be
established (Liebowitz, 1999; Armbrecht et al., 2001; Forsman, 2009). Various supportive
environments are suggested and most <strong>of</strong> <strong>the</strong>m stress cross-functional and cross-departmental
synergy for well-prepared adaptation to changes in <strong>the</strong> business environment. In addition, provision <strong>of</strong>
a physical environment for idea creation is mentioned in many articles (Dooley et al., 2000; Jensen
and Harmsen, 2001; Trott and Hoecht, 2004; Bechina and Ndlela, 2009).
Process influence
Most <strong>of</strong> <strong>the</strong> innovation management articles stress <strong>the</strong> need for an effective innovation process – idea
generation, selection and evaluation techniques, and implementation mechanism – as a key engine to
drive innovation in an organisation (Van der Panne et al., 2003; Smith et al., 2008). Apart from this
process, recognition <strong>of</strong> crucial contributions <strong>of</strong> information and knowledge processes to <strong>the</strong>
organisational learning and knowledge-repository utilisation was mentioned (Dooley et al., 2000;
Smith et al., 2008). Lying at <strong>the</strong> heart <strong>of</strong> all KM initiatives, <strong>the</strong> knowledge process, e.g. knowledge
creation, capture, transfer and exploitation, should be appropriately designed to <strong>the</strong> specific needs
and unique structure <strong>of</strong> organisational knowledge (Liebowitz, 1999; Egbu, 2004). The KM process
should be integrated into organisational processes and staffs’ daily processes for avoiding distraction
from <strong>the</strong>ir actual jobs and increasing <strong>the</strong>ir willingness in cooperation (Bishop et al., 2008). In addition,
<strong>the</strong> use <strong>of</strong> various knowledge channels (e.g. work groups, suppliers and customers) and knowledge
practices (e.g. networking, CoP, storytelling and mentoring) are claimed to be supportive elements for
collaboration and coordination in <strong>the</strong> KM process (Davenport et al., 1998; Armbrecht et al., 2001).
Infrastructure influence
Human, knowledge and financial resources are three main resources that have been mentioned by,
and have attracted significant attention from scholars (Forcadell and Guadamillas, 2002; Smith et al.,
2008; Rehman et al., 2010). Providing employees with training and learning opportunities and
encouraging <strong>the</strong>m to participate can help to advance and replenish organisational knowledge (Skyrme
and Amidon, 1997; Dooley et al., 2000; McDonough III, 2000; Smith et al., 2008). Retaining
knowledgeable staff and seeking new talent are crucial responsibilities <strong>of</strong> HR departments for
managing personnel who possesses invaluable knowledge <strong>of</strong> organisations (Rehman et al., 2010).
Above all, sufficient budget and financial support should be allocated and committed to relevant
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Chaiyatorn Limapornvanich et al.
functions, such as knowledge acquisition, research and development, and employee development
programmes. In addition, information technology has also been recognised as an enabler <strong>of</strong> <strong>the</strong>
effective management <strong>of</strong> <strong>the</strong>se resources. Therefore, availability and accessibility <strong>of</strong> <strong>the</strong>se resources
are a critical issue for innovative businesses.
5. Conclusion
The aim <strong>of</strong> <strong>the</strong> paper was to examine any consistency and interrelationship between <strong>the</strong> CSFs <strong>of</strong>
innovation management and knowledge management by relying on <strong>the</strong> systematic review process.
Indeed both knowledge management and innovation management rely heavily on an open and
sharing culture, in which <strong>the</strong> significance <strong>of</strong> social relationships, communication, cooperation,
teamwork and interaction should be promoted broadly across all levels <strong>of</strong> an organisation. Capable
staff with legitimate authority need to be appointed as key personnel to direct, drive and support all
relevant activities. Tangible and intangible supports for new ideas creation or knowledge generation,
such as physical space, money, time, specialists, support teams and information technology, need to
be adequately provided in <strong>the</strong> working environment. Good management <strong>of</strong> resources, including
human, financial and knowledge resources, is hence considered as one <strong>of</strong> <strong>the</strong> most critical success
factors.
Support and commitment from senior management and <strong>the</strong>ir characteristics can affect <strong>the</strong> confidence
<strong>of</strong> employees to dedicate <strong>the</strong>mselves to organisational changes. However, in innovation
management, management characteristics are highly associated with business strategy as <strong>the</strong>y have
a direct influence over <strong>the</strong> adoption <strong>of</strong> a strategy; for instance, inventor-based entrepreneurs are likely
to go for radical innovations with intensive technology. Business strategy is at <strong>the</strong> centre <strong>of</strong> strategic
concerns which innovation and KM strategies should be aligned with; indeed, innovation strategy is
generally reckoned as part <strong>of</strong> <strong>the</strong> business strategy, whilst KM strategy serves beneath as a substrategy
to achieve <strong>the</strong> business strategy. Also business-process adjustment should conform to <strong>the</strong>
adopted strategy. Being a means towards strategic goals, performance measurement and reward
systems are required to indicate impressive benefits and motivate employees’ morale respectively.
In conclusion, due to <strong>the</strong> nature <strong>of</strong> innovation management, in which an organisation’s knowledge
assets serve to accentuate successful innovation, <strong>the</strong> capability to manage relevant knowledge
activities effectively is a fundamental success element for companies to be innovative. As a result, a
significant number <strong>of</strong> factors in <strong>the</strong>se two areas, considered as critical success factors by many
scholars and practitioners, share common aspects; additionally evidence <strong>of</strong> relationship amongst
<strong>the</strong>m was also sensed in this study. Effective and efficient manipulation <strong>of</strong> <strong>the</strong>se factors can be
conducive to success in both knowledge management and innovation management. The results <strong>of</strong>
<strong>the</strong> systematic review study have extended <strong>the</strong> comprehension on <strong>the</strong> relationship between
knowledge management and innovation management to a greater extent; however an empirical study
in an industrial context is additionally required as <strong>the</strong> level <strong>of</strong> significance <strong>of</strong> each disclosed factor
might be distinct from one to ano<strong>the</strong>r.
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749

Voluntary Intellectual Capital Disclosure Patterns:
Empirical Evidence From <strong>the</strong> United Arab Emirates
George Majdalany 1 , Armond Manassian 2 and Ramzi Nekhili 1
1 Department <strong>of</strong> Business Administration, Faculty <strong>of</strong> Finance and Accounting,
University <strong>of</strong> Wollongong in Dubai, Dubai, United Arab Emirates
2 Department <strong>of</strong> Business Administration, Faculty <strong>of</strong> Finance and Accounting,
American University <strong>of</strong> Beirut, Beirut, Lebanon
gm379@uowmail.edu.au
am47@aub.edu.lb
ramzinekhili@uowdubai.ac.ae
Abstract: The economical shift into knowledge and information management can explain <strong>the</strong> increased
importance <strong>of</strong> intellectual capital as a research and business topic. Research on intellectual capital has been
mainly centred on intellectual assets. Most researchers have overlooked intellectual liabilities. To balance <strong>the</strong>
intellectual capital disclosure, organizations must recognize <strong>the</strong>ir intangible liabilities. Therefore, <strong>the</strong> purpose <strong>of</strong>
this study is to explore <strong>the</strong> voluntary intellectual capital (intellectual assets and intellectual liabilities) disclosure in
<strong>the</strong> United Arab Emirates (UAE), and <strong>the</strong> effects <strong>of</strong> industry, size, and time. The results and findings <strong>of</strong> our study
indicate that disclosure levels are high in <strong>the</strong> UAE, and are positively related with firm size. There’s also a strong
relationship between disclosure and industry type. Disclosure <strong>of</strong> intellectual liabilities is quite low, and is mainly
related to external liabilities. Regarding <strong>the</strong> methodology employed, we conduct an empirical study by using
content analysis method and statistical measures to examine <strong>the</strong> annual reports <strong>of</strong> publicly listed companies in
<strong>the</strong> UAE for <strong>the</strong> period from 2007 to 2009. As our study is exploratory in nature, it has some limitations, such as
<strong>the</strong> restrictions <strong>of</strong> content analysis, <strong>the</strong> specificity <strong>of</strong> annual reports, and <strong>the</strong> specific terms used to measure
intellectual capital disclosure. In terms <strong>of</strong> practical implications, <strong>the</strong> findings <strong>of</strong> this study serve as a guide for <strong>the</strong>
various stakeholders involved in <strong>the</strong> intellectual capital aspects <strong>of</strong> publicly listed companies in <strong>the</strong> UAE. Our
research is <strong>the</strong> first study that examines <strong>the</strong> patterns and determinants <strong>of</strong> voluntary disclosure <strong>of</strong> intellectual
assets and intellectual liabilities in a longitudinal setting in <strong>the</strong> annual reports <strong>of</strong> publicly listed companies in <strong>the</strong>
UAE. In conclusion, this study is important for several reasons. First, many researchers have identified <strong>the</strong>
strategic, pivotal role <strong>of</strong> intellectual capital. Second, <strong>the</strong>re has been little progress by firms in disclosing <strong>the</strong>ir
intellectual capital. Finally, existing literature has overlooked <strong>the</strong> component <strong>of</strong> intellectual liabilities. This calls for
original research that can fill <strong>the</strong>se gaps.
Keywords: intellectual capital, intellectual liabilities, disclosure, annual reports, United Arab Emirates, content
analysis
1. Introduction
Knowledge, innovation, and information management have driven <strong>the</strong> rise <strong>of</strong> <strong>the</strong> knowledge economy.
This economical shift can explain <strong>the</strong> increased importance <strong>of</strong> intellectual capital as a research and
business topic. Since Galbraith first introduced <strong>the</strong> term “intellectual capital” in 1969 (Bontis et al.,
1999), research on intellectual capital has been mainly centred on intellectual assets, which have
been analyzed from multiple perspectives. Researchers have found that <strong>the</strong>re is a gap between <strong>the</strong>
<strong>of</strong>ficial declared values <strong>of</strong> companies, and between what <strong>the</strong> companies’ real worth is. This finding
has shed <strong>the</strong> light on <strong>the</strong> field <strong>of</strong> intellectual capital, which proves to be something valuable (or
invaluable), but cannot be measured using conventional methods. Most researchers have overlooked
<strong>the</strong> negative (invaluable) side <strong>of</strong> intellectual capital, which is referred to as intellectual liabilities
(Harvey and Lush, 1999). As per Harvey and Lush (1999), to balance <strong>the</strong> intellectual capital books,
organizations must recognize <strong>the</strong>ir intangible liabilities. Thus, intellectual capital is <strong>the</strong> net intellectual
worth, which equals intellectual assets minus intellectual liabilities.
However, conventional accounting methods, <strong>of</strong>ten fail to disclose <strong>the</strong> value <strong>of</strong> a firm’s intellectual
capital and to meet stakeholders’ expectations. This has created <strong>the</strong> need for unconventional
reporting. Many companies have adopted voluntary disclosure for several reasons, including closure
<strong>of</strong> information gap, increased transparency, market liquidity, decreased cost <strong>of</strong> debt (Healey et al.,
1999), decreased cost <strong>of</strong> equity (Sengupta, 1998), increased share performance, higher earnings,
higher stock prices (Gelb and Zarowin, 2000), increased employees’ confidence, and o<strong>the</strong>rs.
We conduct an exploratory study that measures voluntary intellectual capital (intellectual assets and
intellectual liabilities) disclosure in <strong>the</strong> annual reports <strong>of</strong> publicly listed companies in <strong>the</strong> United Arab
Emirates (UAE).
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George Majdalany et al.
The originality and value <strong>of</strong> our research lie in incorporating intellectual liabilities in <strong>the</strong> framework,
and in adding to <strong>the</strong> existing literature empirical evidence from a new country. This study poses two
research questions in relation to voluntary disclosure <strong>of</strong> intellectual capital. First, what is <strong>the</strong> amount <strong>of</strong>
intellectual capital (assets and liabilities) disclosure in publicly listed companies in <strong>the</strong> UAE? Second,
what are <strong>the</strong> reasons that can explain <strong>the</strong> variations in intellectual capital disclosure patterns?
Using content analysis and descriptive statistical analysis, we conduct a longitudinal empirical study
on <strong>the</strong> annual reports for <strong>the</strong> years 2007, 2008, and 2009 <strong>of</strong> 100 companies out <strong>of</strong> a total population
<strong>of</strong> 165 (as <strong>of</strong> January 2011) publicly listed companies in <strong>the</strong> UAE stock exchanges, which are: Dubai
<strong>International</strong> Financial Exchange (DIFX), Dubai Financial Market (DFM), and Abu Dhabi Securities
Exchange (ADIX).
2. Literature review and hypo<strong>the</strong>ses development
2.1 Intellectual capital definition and research streams
There are various definitions <strong>of</strong> intellectual capital. The difference in <strong>the</strong> various definitions <strong>of</strong>
intellectual capital is <strong>the</strong> fact that <strong>the</strong>y make different compilations <strong>of</strong> intellectual capital components.
According to Wright et al. (2001), intellectual capital consists <strong>of</strong> social capital, human capital, and
organizational capital. According to Herremans and Isaac (2004), intellectual capital components are
linked to employees. According to Kannan and Aulbur (2004), intellectual capital refers to “knowledge,
information, intellectual property and experience that can be used to create wealth”. Organisational
and individual variables are found in <strong>the</strong>se non-physical assets. As per Sveiby (2001), human capital
includes talents, learning skills, knowledge, and <strong>the</strong> worth <strong>of</strong> <strong>the</strong> employees. Roos et al. (2001) have
classified intellectual capital into human capital, relationship capital, and organisational capital. The
components <strong>of</strong> human capital are capabilities, talents, experiences, knowledge, and mental abilities <strong>of</strong>
<strong>the</strong> employees (Tallarigo, 2000). Relationship capital comprises <strong>of</strong> relations with clients, suppliers,
and o<strong>the</strong>r related stakeholders. Organisational capital is made <strong>of</strong> procedures, systems, configurations,
trademarks, and copyrights. Seetharaman et al. (2004) provide ano<strong>the</strong>r categorization <strong>of</strong> intellectual
capital. The main variation to <strong>the</strong> previous ones is <strong>the</strong> existence <strong>of</strong> structural capital instead <strong>of</strong>
organisational capital. The categorization <strong>of</strong> Seetharaman et al. (2004) can be drawn below in Figure
1.
Figure 1: Types <strong>of</strong> intellectual capital (Seetharaman et al., 2004).
There are three streams in <strong>the</strong> field <strong>of</strong> intellectual capital research: accounting stream, measurement
stream, and management stream. Our research on intellectual assets and intellectual liabilities deals
mainly with <strong>the</strong> disclosure in <strong>the</strong> UAE, and <strong>the</strong>refore falls under <strong>the</strong> first research stream.
2.2 Intellectual capital reporting and disclosure
There are no legal or statutory requirements for intellectual capital disclosure. The measurement,
reporting, and disclosure efforts are based on voluntary initiatives. Most frequently, information on
intellectual capital is disclosed in <strong>the</strong> annual reports <strong>of</strong> <strong>the</strong> companies (Guthrie et al., 2004).
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Disclosure can take several forms, such as numbers, ratios, matrices, appendices to annual reports,
and comprehensive narrative documents (Mouritsen et al., 2001).
Voluntary disclosure has been studied by many researchers, such as Brennan (2001) in Ireland,
Bontis (2002) in Canada, Bozzolan et al. (2003) in Italy, April et al. (2003) in South Africa, Goh & Lim
(2004) in Malaysia, Guthrie et al. (2004) in Hong Kong and Australia, Vergauwen and Van Alem
(2005) in Ne<strong>the</strong>rlands, France, and Germany, Abdolmohammadi (2005) in <strong>the</strong> United States,
Abeysekera and Guthrie (2005) in Sri Lanka, Vergauwen and Van Alem (2005) in France, Germany,
and Ne<strong>the</strong>rlands, Sujan and Abeysekera (2007) in Australia, Guthrie et al. (2006) in Australia and
Hong Kong, Dumay and Tull (2007) in Australia, Espinosa and Trombetta (2007) in Spain, and o<strong>the</strong>rs.
However, to date, no study has been done in <strong>the</strong> UAE, which among <strong>the</strong> Arab and Gulf countries, is a
leading state in technology, innovation, and knowledge-based opportunities.
The development in research has led researchers to examine <strong>the</strong> correlation <strong>of</strong> intellectual capital
disclosure with several factors, <strong>the</strong> most relevant <strong>of</strong> which are firm size and industry.
A positive relationship is detected between firm size and intellectual capital disclosure. The major
studies that verify <strong>the</strong>se findings are Bozzolan et al. (2003), Guthrie et al. (2004), Petty and
Cuganesan (2005), Guthrie et al. (2006), and Bruggen et al. (2009). These studies used a different
operational definition for <strong>the</strong> construct <strong>of</strong> firm size. Some studies use sales volume as <strong>the</strong> base,
whereas o<strong>the</strong>rs use market capitalization, total assets, or number <strong>of</strong> employees
Several studies were also conducted on <strong>the</strong> relationship between a firm’s industry and its level <strong>of</strong>
voluntary intellectual capital disclosure. The major ones in this stream are Bozzolan et al. (2003), and
Petty and Cuganesan (2005). Bozzolan et al. (2003) found an interesting relationship in which high
technology companies had a higher reporting level <strong>of</strong> intellectual capital than standard traditional
companies.
2.3 Intellectual liabilities
Although some studies demonstrate <strong>the</strong> possibility <strong>of</strong> <strong>the</strong> existence <strong>of</strong> intellectual liabilities (Harvey
and Lusch, 1999; Caddy, 2000; Garcia-Parra et al., 2009), <strong>the</strong> importance still seems to be
underestimated (Abeysekera and Guthrie, 2005). Although several recent research projects take
liabilities into account (Tsai and Hua, 2006; Garcia-Parra et al., 2009; Stam, 2009), this is certainly not
(yet) mainstream intellectual capital research.
Harvey and Lusch (1999) <strong>of</strong>fered <strong>the</strong> first definition <strong>of</strong> intangible liabilities, toge<strong>the</strong>r with a
classification system and a six step managerial framework for assessing <strong>the</strong> magnitude <strong>of</strong> <strong>the</strong>se
liabilities. They developed conceptual frameworks by classifying intangible liabilities and assessing
<strong>the</strong>ir impact. According to Caddy (2000), intangible liabilities are <strong>the</strong> result <strong>of</strong> inappropriate decisions
made in <strong>the</strong> past. What happens when human decisions are continuously inappropriate, or when
intelligence is wrongly used, or when work is inefficient? In his work, <strong>the</strong>re was an implicit assumption
that <strong>the</strong> meaning <strong>of</strong> intellectual capital is <strong>the</strong> difference between intellectual asset and intellectual
liabilities. He stated that if accounting capital is <strong>the</strong> difference between assets and liabilities <strong>the</strong>n
intellectual capital should not be treated differently. In <strong>the</strong>ir study on intellectual liabilities, Garcia-
Parra et al. (2009) built a research structure with a combination <strong>of</strong> mixed qualitative and quantitative
methods
Thus, in conclusion, <strong>the</strong> review <strong>of</strong> literature on intellectual liabilities reveals that very little work has
been done, and what has been done was mostly conceptual; hence, <strong>the</strong> need for researchers to
fur<strong>the</strong>r conceptualize intellectual liabilities into intellectual capital models, and to test <strong>the</strong>m empirically.
2.4 Intellectual capital in <strong>the</strong> United Arab Emirates
Nsour (2001) recommends in his study that for Arab countries to be successful in <strong>the</strong> realm <strong>of</strong> <strong>the</strong>
economical changes, <strong>the</strong>y must replace <strong>the</strong> existing processes, mindsets, and methods by shifting
from <strong>the</strong> industrial mentality to <strong>the</strong> human capital mentality. Doraid (2000) claims that <strong>the</strong> real wealth
<strong>of</strong> <strong>the</strong> Arab nations is not in <strong>the</strong>ir oil, but ra<strong>the</strong>r in <strong>the</strong> capacities <strong>of</strong> <strong>the</strong> people who live and work in
<strong>the</strong>se countries, and whom in <strong>the</strong> long run, will form <strong>the</strong> human capital <strong>of</strong> <strong>the</strong>se nations. There have
been several efforts to develop knowledge in <strong>the</strong> gulf region in general, and in <strong>the</strong> UAE in particular.
Several universities have hosted international conferences in attempt to promote this concept. One <strong>of</strong>
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George Majdalany et al.
<strong>the</strong>se events was <strong>the</strong> <strong>International</strong> <strong>Conference</strong> on Intellectual Capital and Knowledge Management
that was held in 2005, and was hosted by <strong>the</strong> American University <strong>of</strong> Dubai. In addition, <strong>the</strong> Research
and Development arm <strong>of</strong> Economic Zones World, in partnership with Fraunh<strong>of</strong>er IPK, a German
applied research organization, announced <strong>the</strong> establishment <strong>of</strong> a framework for intellectual capital
within <strong>the</strong> science and technology park in 2009. Despite <strong>the</strong>se attempts, <strong>the</strong>re is little research
conducted on intellectual capital in <strong>the</strong> UAE. This provides both a challenge, and an opportunity to
explore this field using <strong>the</strong> UAE as <strong>the</strong> field for empirically testing <strong>the</strong> extent <strong>of</strong> voluntary intellectual
capital disclosure and its determinants.
2.5 Hypo<strong>the</strong>ses development
Based on <strong>the</strong> review <strong>of</strong> existing literature, we conclude that <strong>the</strong> practice <strong>of</strong> intellectual capital
disclosure is more common amongst firms that are larger, and that are in industries that are <strong>of</strong>
intellectual and knowledge-base. This fact is common across countries. Therefore, we propose that
industry type is an important factor in <strong>the</strong> disclosure <strong>of</strong> intellectual capital, because intellectual capital
is more important in some industries than in o<strong>the</strong>rs, and as result, more relevant to <strong>the</strong> various
stakeholders. This leads to <strong>the</strong> first hypo<strong>the</strong>sis:
H1: The type <strong>of</strong> industry is relevant to intellectual capital disclosure
We also propose that firm size is a determinant <strong>of</strong> intellectual capital disclosure. This leads to <strong>the</strong>
second hypo<strong>the</strong>sis:
H2: Firm size is relevant to intellectual capital disclosure
In addition, and based on <strong>the</strong> disclosure levels <strong>of</strong> intellectual capital in countries which are more
developed than <strong>the</strong> UAE, such as Australia and Italy, we propose that <strong>the</strong> level <strong>of</strong> intellectual capital
disclosure in <strong>the</strong> UAE is low. This leads to <strong>the</strong> third hypo<strong>the</strong>sis:
H3: Intellectual capital disclosure in publicly listed companies <strong>of</strong> <strong>the</strong> UAE is low
3. Research design and methodology
3.1 Content analysis method
Content analysis is a widely used research method by many researchers to assess <strong>the</strong> frequency and
type <strong>of</strong> intellectual capital disclosure (Beattie, 2004). Content analysis <strong>of</strong> <strong>the</strong> annual reporting <strong>of</strong>
intellectual capital was pioneered by Abeysekera (2000), Guthrie and Petty (2000), and Brennan
(2001). This method <strong>of</strong> analysis is held to be empirically valid (Gray et al., 1995; Guthrie and Parker,
1990).
3.2 Reliability and validity
According to Krippendorff (1980), <strong>the</strong>re are three different kinds <strong>of</strong> reliability for content analysis:
stability, reproducibility, and accuracy. These criteria can be met by selecting disclosure criteria from
relevant literature, creating a reliable coding instrument, and training <strong>the</strong> coders.
Computer-assisted content analysis is <strong>the</strong> topic <strong>of</strong> substantial technological development
(Krippendorff, 2004). In our study, we utilize QDA Miner (version 3.2) for coding and Wordstat (version
6.1) for content analysis. These two packages were used by several researchers, such as Gray et al.
(2004), and Sonnier et al. (2008). The use <strong>of</strong> <strong>the</strong>se two packages, coupled with <strong>the</strong> use <strong>of</strong> two coders,
ensure that our study meet <strong>the</strong> effectiveness, reliability, and coding criteria <strong>of</strong> Krippendorff (1980).
3.3 Annual reports and intellectual capital framework
The review <strong>of</strong> literature shows that <strong>the</strong> intellectual capital reporting studies in different countries have
used corporate annual reports as <strong>the</strong> main source <strong>of</strong> data and have employed content analysis as <strong>the</strong>
method <strong>of</strong> investigating intellectual reporting trends and practices. Annual reports were chosen for
three reasons. First, <strong>the</strong>y are considered an important source <strong>of</strong> company information (Lang and
Lundholm, 1993); second, disclosure level in annual reports is positively correlated with <strong>the</strong> amount <strong>of</strong>
corporate information communicated to <strong>the</strong> market and to stakeholders (April et al., 2003; Guthrie and
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Petty, 2000). Third, annual reports are produced on a regular basis, and as such, <strong>the</strong>y provide an
opportunity for meaningful comparisons and analysis (Niemark, 1995).
To ensure full representation <strong>of</strong> all intellectual capital indicators (assets and liabilities), we apply a
framework based on a combination <strong>of</strong> frameworks used by Harvey and Lush (1999), Guthrie and
Petty (2000), Bozzolan et al., (2003), Beattie (2004), Guthrie et al. (2004), Abeysekera and Guthrie
(2005), Abdolmohammadi (2005), Bruggen et al. (2009), Stam (2009), and Yi and Davey (2010).
We classify intellectual capital terms into 8 categories, with a total <strong>of</strong> 542 terms. Consistent with <strong>the</strong>
work <strong>of</strong> Bruggen et al. (2009), we identify <strong>the</strong> existence <strong>of</strong> general intellectual capital terms, and
<strong>the</strong>refore, place <strong>the</strong>m under a separate category called general IC terms. The categories <strong>of</strong>
intellectual liabilities are consistent with <strong>the</strong> frameworks <strong>of</strong> Harvey and Lush (1999) and Stam (2009).
We use <strong>the</strong> count <strong>of</strong> intellectual capital related words as <strong>the</strong> unit <strong>of</strong> <strong>the</strong> content analysis (Gao et al.,
2005). We <strong>the</strong>n aggregate <strong>the</strong> disclosure frequencies <strong>of</strong> occurrence to determine <strong>the</strong> quantity <strong>of</strong>
intellectual capital disclosure. To lower subjectivity, which is usually associated with <strong>the</strong> allocation <strong>of</strong>
different weights to various intellectual capital categories, we follow a 0 - 1 coding scheme following
<strong>the</strong> set <strong>of</strong> coding rules. The categories and <strong>the</strong> number <strong>of</strong> terms under each category are as per table
1.
Table 1: Categories and <strong>the</strong> number <strong>of</strong> terms
Category Number <strong>of</strong> Terms
General IC Terms 11
Human Capital 158
Relational Capital 133
Structural Capital 146
External Liabilities 33
Human Liabilities 13
Relational Liabilities 17
Structural Liabilities 31
Total 542
3.4 Population, sample selection, and independent variables
This study focuses on publicly listed companies in <strong>the</strong> UAE. To study <strong>the</strong> industry effect on intellectual
capital disclosure, we use <strong>the</strong> industrial classification <strong>of</strong> <strong>the</strong> Emirates Security and Commodities
Authority (ESCA), which is made <strong>of</strong> four categories: Industrial, Banking, Service and Insurance. The
number <strong>of</strong> companies in each sector is as per table 2
Table 2: Number <strong>of</strong> companies
Industry No. <strong>of</strong> Companies
Industrial 42
Banking 29
Service 66
Insurance 28
Total 165
The sources <strong>of</strong> <strong>the</strong> data are <strong>the</strong> annual reports <strong>of</strong> <strong>the</strong> years 2007, 2008, and 2009. We do not include
<strong>the</strong> 2010 reports, because at <strong>the</strong> date <strong>of</strong> <strong>the</strong> preparation <strong>of</strong> <strong>the</strong> study a large <strong>of</strong> number <strong>of</strong> companies
had not yet published <strong>the</strong>ir annual reports. The number <strong>of</strong> listed companies in <strong>the</strong> UAE is only 56
companies in 2006, and <strong>the</strong>refore, we use <strong>the</strong> annual reports starting from year 2007.
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Based on <strong>the</strong> selected time period, 134 companies have full sets <strong>of</strong> annual reports for <strong>the</strong> three years
period. Distribution by industry is as per table 3.
Table 3: Industry
Industry No. <strong>of</strong> Companies
Service 49
Industrial 35
Insurance 25
Banking 25
Total 134
We utilize a stratified sampling procedure. All companies falling under <strong>the</strong> same industry are classified
as a stratum. The lowest number <strong>of</strong> companies found in a stratum is 25 companies in each <strong>of</strong> <strong>the</strong>
Insurance and <strong>the</strong> Banking Industry. We perform a random selection process to select 25 companies
from each <strong>of</strong> <strong>the</strong> Service and Industrial sectors. In total, our sample is 100 companies. Based on <strong>the</strong>
preceding literature review, we use total assets as proxy <strong>of</strong> firm size, and we classify <strong>the</strong> companies
into four categories: Micro, Small, Medium, and Large. Distribution <strong>of</strong> <strong>the</strong> sample by industry and by
firm size is as per table 4.
Table 4: Four categories
Banking Insurance Service Industrial Total
Micro 1 15 5 13 34
Small 2 8 5 10 25
Medium 11 2 14 2 29
Large 11 - 1 - 12
Total 25 25 25 25 100
4. Results and discussion
4.1 General disclosure
In total, <strong>the</strong> disclosure frequency <strong>of</strong> all categories is 37,202 hits as recorded by <strong>the</strong> content analysis
s<strong>of</strong>tware. The highest disclosure is under human capital, with 15,913 hits. The following is relational
capital, with 12,323 hits. Structural capital has 8,684 hits. We notice a lack <strong>of</strong> disclosure on human
liabilities and relational liabilities and very low disclosure on general IC terms and structural liabilities.
We also notice a relatively small, but interesting amount <strong>of</strong> disclosure on external liabilities. These
findings prove that disclosure <strong>of</strong> intellectual capital in <strong>the</strong> UAE is significant, leading us to reject our
third hypo<strong>the</strong>sis. Disclosure frequency <strong>of</strong> each category and its relative weight are as per table 5.
Table 5: Disclosure frequency
Category Total Frequency Percentage <strong>of</strong> Total
General IC Terms 2 0.01%
Human Capital 15,913 42.77%
Relational Capital 12,323 33.12%
Structural Capital 8,684 23.34%
External Liabilities 273 0.73%
Human Liabilities - 0.00%
Relational Liabilities - 0.00%
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Category Total Frequency Percentage <strong>of</strong> Total
Structural Liabilities 7 0.02%
Total 37,202 100%
4.2 Intellectual capital disclosure by industry
Findings show that <strong>the</strong> disclosure in <strong>the</strong> Banking industry is <strong>the</strong> highest, with 14,775 hits. The next
highest frequency is in <strong>the</strong> Service industry, with 12,898 hits. The third level <strong>of</strong> disclosure frequency is
in <strong>the</strong> Industrial companies with 5,574 hits. Finally, <strong>the</strong> frequency in <strong>the</strong> Insurance industry is 3,955
hits. Disclosure frequency by industry type is as per table 6
Table 6: Insurance industry
Category Banking Insurance Service Industrial Total Frequency
General IC Terms 1 - 1 - 2
Human Capital 5,837 2,133 5,259 2,684 15,913
Relational Capital 5,100 926 4,496 1,801 12,323
Structural Capital 3,680 868 3,062 1,074 8,684
External Liabilities 153 27 78 15 273
Human Liabilities - - - - -
Relational Liabilities - - - - -
Structural Liabilities 4 1 2 - 7
Total 14,775 3,955 12,898 5,574 37,202
Percentage <strong>of</strong> Total 39.72% 10.63% 34.67% 14.98% 100.00%
4.3 Intellectual capital disclosure by firm size
We analyze <strong>the</strong> disclosure by size categories on a per company basis due to <strong>the</strong> difference in <strong>the</strong>
number <strong>of</strong> companies in each size category. Disclosure by firm size is highest in large companies and
lowest in micro companies. Disclosure frequency <strong>of</strong> each category by firm size is as per table 7.
Table 7: Firm size
Category Micro Small Medium Large Total
General IC Terms - 1 - 1 2
Human Capital 3,571 3,384 5,372 3,586 15,913
Relational Capital 2,066 2,371 4,377 3,509 12,323
Structural Capital 2,062 2,071 2,254 2,297 8,684
External Liabilities 25 68 105 75 273
Human Liabilities - - - - -
Relational Liabilities - - - - -
Structural Liabilities - 6 1 7
Total 7,724 7,901 12,109 9,468 37,202
Companies in each Category 34 25 29 12 100
Frequency by Company 227 316 418 789 372
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4.4 Intellectual capital disclosure by date
George Majdalany et al.
We analyze <strong>the</strong> disclosure frequency by date, and we notice an increase <strong>of</strong> disclosure from 2007 to
2009. In 2007, <strong>the</strong> total frequency hits are 9,850. The frequency increases by 31.25% and reaches
12,928 hits in 2008. Then, it increases by 11.57% and reaches 14,424 hits in 2009. Disclosure
frequency <strong>of</strong> each category by date is as per table 8
Table 8: Date
Category 2007 2008 2009 Total Frequency
General IC Terms - 1 1 2
Human Capital 4,413 5,497 6,003 15,913
Relational Capital 3,259 4,273 4,791 12,323
Structural Capital 2,172 3,006 3,506 8,684
External Liabilities 4 148 121 273
Human Liabilities - - - -
Relational Liabilities - - - -
Structural Liabilities 2 3 2 7
Total 9,850 12,928 14,424 37,202
4.5 Intellectual liabilities disclosure by industry
Our analysis shows that <strong>the</strong>re is no disclosure <strong>of</strong> human or relational liabilities, whereas external
liabilities and structural liabilities show a frequency <strong>of</strong> 273 and 7 hits respectively. Therefore, we will
focus only on external liabilities. Out <strong>of</strong> <strong>the</strong> 273 hits recorded for intellectual liabilities, we notice that
256 hits are related to <strong>the</strong> economic and financial crisis. We also notice that <strong>the</strong> highest disclosures
are in <strong>the</strong> Banking and Service industries. Details <strong>of</strong> <strong>the</strong> disclosure <strong>of</strong> external liabilities by industry
are as per table 9
Table 9: External liabilities
Terms Banking Insurance Service Industrial Total
Acts <strong>of</strong> Terrorism 4 - - - 4
Ageing Population - - - 1 1
Economic Crisis 18 4 19 2 43
Financial Crisis 125 23 53 12 213
Force Majeure - - 2 - 2
Global Warming 5 - - - 5
Political Instability 1 - 4 - 5
Total 153 27 78 15 273
4.6 Intellectual liabilities disclosure by firm size
We notice that medium companies show <strong>the</strong> highest disclosure <strong>of</strong> external liabilities with 105 hits,
followed by large companies with 75 hits, whereas small and micro companies show 68 and 25 hits
respectively. The dominance <strong>of</strong> disclosure <strong>of</strong> external liabilities by medium companies is not clear, but
may be attributed to <strong>the</strong> larger effects that <strong>the</strong> financial crisis had on medium companies. Details <strong>of</strong>
<strong>the</strong> disclosure <strong>of</strong> external liabilities by firm size are as per table 10
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Table 10: Firm size
George Majdalany et al.
Terms Micro Small Medium Large Total
Acts <strong>of</strong> Terrorism - - - 4 4
Ageing Population - 1 - - 1
Economic Crisis 4 7 23 9 43
Financial Crisis 19 59 78 57 213
Force Majeure 1 - 1 - 2
Global Warming - - - 5 5
Political Instability 1 1 3 - 5
Total 25 68 105 75 273
4.7 Intellectual liabilities disclosure by date
The disclosure frequency <strong>of</strong> external liabilities increases from 4 hits in 2007 to 148 hits in 2008 with an
obvious dominance <strong>of</strong> disclosures on <strong>the</strong> economic and financial crisis. However, <strong>the</strong> disclosure
decreases in 2009 to reach 121 hits. This supports our earlier explanation that <strong>the</strong> disclosure <strong>of</strong>
intellectual liabilities in 2008 was due to <strong>the</strong> financial crisis. Disclosure frequency by date is as per
table 11.
Table 11: Date
Terms 2007 2008 2009 Total
Acts <strong>of</strong> Terrorism - 2 2 4
Ageing Population - 1 - 1
Economic Crisis - 21 22 43
Financial Crisis - 122 91 213
Force Majeure 1 - 1 2
Global Warming 1 1 3 5
Political Instability 2 1 2 5
Total 4 148 121 273
5. Conclusions
The purpose <strong>of</strong> our study is to examine <strong>the</strong> degree <strong>of</strong> awareness <strong>of</strong> scope <strong>of</strong> voluntary intellectual
capital disclosure <strong>of</strong> publicly listed companies in <strong>the</strong> UAE. We propose three hypo<strong>the</strong>ses and we
attempt to test <strong>the</strong>m. Our first and second hypo<strong>the</strong>ses are that firm size and industry are relevant
determinants <strong>of</strong> intellectual capital disclosure. Our third hypo<strong>the</strong>sis is that intellectual capital
disclosure is low. We conduct a longitudinal study over a period <strong>of</strong> three years (2007, 2008, and
2009), and we examine <strong>the</strong> annual reports <strong>of</strong> 100 companies. Using automated content analysis, we
measure <strong>the</strong> frequency <strong>of</strong> disclosure according to 3 independent variables (Industry, Firm Size, and
Date) across several categories, which are: general IC terms, human capital, relational capital,
structural capital, external liabilities, human liabilities, relational liabilities, and structural liabilities.
We notice that <strong>the</strong> variation among industries is significant, where <strong>the</strong> frequency <strong>of</strong> disclosure in <strong>the</strong>
Banking and Service industries is <strong>the</strong> highest, even when we calculate <strong>the</strong> ratio <strong>of</strong> disclosed terms to
<strong>the</strong> total number <strong>of</strong> words found in <strong>the</strong> reports <strong>of</strong> <strong>the</strong> companies in each industry. In addition, we
conclude that variation among companies <strong>of</strong> different sizes is also large but not as significant as <strong>the</strong>
variation by industry. As for time, we conclude that <strong>the</strong> frequency <strong>of</strong> disclosure has significantly
increased from 2007 to 2008, but has shown a modest increase from 2008 to 2009. This is an area for
fur<strong>the</strong>r investigation. A preliminary explanation is <strong>the</strong> attribution <strong>of</strong> <strong>the</strong> increased disclosure in 2008 to
<strong>the</strong> financial crisis, and its detrimental effects, which led companies to increase transparency. This
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George Majdalany et al.
explanation is streng<strong>the</strong>ned by our study on intellectual liabilities, where we conclude that <strong>the</strong> only
significant disclosure is related to external liabilities, and specifically to <strong>the</strong> terms related to <strong>the</strong>
financial and economic crisis, which increased significantly from 2007 to 2008, but <strong>the</strong>n decreased in
2009.
The main findings <strong>of</strong> our study are as follows. First, <strong>the</strong> highest disclosure frequency is found in <strong>the</strong>
banking industry, followed by <strong>the</strong> service, industrial, and service industries. This supports our first
hypo<strong>the</strong>sis. Second, <strong>the</strong> highest disclosure frequency is found in large companies, followed by
medium, small, and micro companies. This supports our second hypo<strong>the</strong>sis. Third, although <strong>the</strong>
frequency <strong>of</strong> disclosure on a per word basis increases over time, we notice a decrease <strong>of</strong> <strong>the</strong>
disclosure between 2008 and 2009, when measured as a percentage <strong>of</strong> <strong>the</strong> disclosed intellectual
capital terms over <strong>the</strong> total number <strong>of</strong> words found in <strong>the</strong> reports each year. Fourth, intellectual capital
disclosure, and especially intellectual assets, is quite significant in <strong>the</strong> UAE, when compared to o<strong>the</strong>r
countries. This disproves our third hypo<strong>the</strong>sis. Fifth, disclosure <strong>of</strong> intellectual liabilities is relatively low,
and is related only to external liabilities.
6. Limitations
This study is exploratory in nature, as it is <strong>the</strong> first attempt to investigate intellectual capital disclosure
practices in <strong>the</strong> UAE. Therefore, our study is subject to a number <strong>of</strong> limitations. The first limitation
refers to <strong>the</strong> use <strong>of</strong> <strong>the</strong> content analysis method. Analyzing <strong>the</strong> annual reports based on <strong>the</strong> specified
list <strong>of</strong> intellectual related terms may not provide <strong>the</strong> whole picture as well as <strong>the</strong> intellectual capital
disclosure practices. A second limitation is <strong>the</strong> use <strong>of</strong> annual reports to measure intellectual capital
disclosure. The third limitation is subject to <strong>the</strong> proxies used to count <strong>the</strong> frequency hits <strong>of</strong> intellectual
assets and intellectual liabilities. Using o<strong>the</strong>r terms may yield different results.
In spite <strong>of</strong> <strong>the</strong> limitations, our study contributes to <strong>the</strong> literature in many ways. First, we confirm earlier
findings on <strong>the</strong> determinants <strong>of</strong> intellectual capital disclosure, which are industry and firm size.
Second, our study is one <strong>of</strong> <strong>the</strong> first studies to measure <strong>the</strong> disclosure <strong>of</strong> intellectual liabilities. Third,
in our choice <strong>of</strong> a large sample relative to <strong>the</strong> population, we overcome some problems <strong>of</strong> earlier
studies on <strong>the</strong> determinants <strong>of</strong> intellectual capital. Finally, our study is <strong>the</strong> first study to examine
intellectual capital disclosure in <strong>the</strong> UAE.
7. Future research
Our study is exploratory in nature. There is a scope to extend this work in several ways. First, <strong>the</strong>
obvious next step is to study o<strong>the</strong>r determinants <strong>of</strong> intellectual capital disclosure, such as company
age, listing status, market capitalization, nationality, financial performance, information asymmetry,
size <strong>of</strong> board <strong>of</strong> directors, number <strong>of</strong> shareholders, and o<strong>the</strong>rs. Second, <strong>the</strong> future research will
include a multi-regression analysis to study correlations between independent and dependent
variables. Third, intellectual liabilities should be studied in more depth, to determine if <strong>the</strong>ir disclosure
is related only to <strong>the</strong> financial crisis, or if it is motivated by o<strong>the</strong>r factors. Fourth, future research
should use a mix <strong>of</strong> methodologies, in order to overcome <strong>the</strong> limitations <strong>of</strong> content analysis. Finally,
future research should yield a common accepted set <strong>of</strong> terms for <strong>the</strong> measurement <strong>of</strong> intellectual
capital disclosure.
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761

A KM Perspective on <strong>the</strong> Progression Towards an
Electronic Patient Record Within an NHS Hospital
Sara McCracken and John Edwards
Aston Business School, Operations and Information Management, Aston
University, Birmingham, UK
mccrass@aston.ac.uk
j.s.edwards@aston.ac.uk
Abstract: The vision for <strong>the</strong> future <strong>of</strong> healthcare is based around a patient centric approach to service design
with <strong>the</strong> provision <strong>of</strong> technology supporting this. Recent trends within government strategies for health signal a
need to infuse knowledge into basic services in order to provide ‘patient centred’ care. An Electronic Patient
Record (EPR) is being developed by many healthcare organisations in <strong>the</strong> UK National Health Service (NHS). An
EPR system can be classed as a type <strong>of</strong> Knowledge Management (KM) system that is a technological tool
developed to support <strong>the</strong> process <strong>of</strong> KM. The aim <strong>of</strong> this EPR is to provide essential knowledge in a patient
centric fashion by following a patient along care pathways, in a holistic approach to care provision. The Business
Process approach to KM advocates <strong>the</strong> importance <strong>of</strong> taking into account all organisational activities/business
processes in conjunction with any KM initiatives. Approaching KM through business processes allows for a more
holistic view <strong>of</strong> <strong>the</strong> requirements across <strong>the</strong> processes within an organisation. The aim <strong>of</strong> this research is to use
<strong>the</strong> concept <strong>of</strong> <strong>the</strong> Business Process route to implementing KM as a <strong>the</strong>oretical lens, to analyse and explore <strong>the</strong>
development, execution and implementation <strong>of</strong> a KM system, i.e. <strong>the</strong> EPR system. The case study organisation
will provide an example <strong>of</strong> a large complex NHS hospital which will allow us to explore how people, processes
and technology fit toge<strong>the</strong>r for effective KM across healthcare organisational functions.
Keywords: knowledge management, knowledge management systems, health, hospitals, business processes
1. Introduction
Healthcare organisations are increasingly leveraging technology to shape <strong>the</strong>ir strategy in order to
deal with <strong>the</strong> vast challenges <strong>the</strong>y face and to create a competitive advantage. Recent trends indicate
a need to Infuse knowledge into services to provide truly ‘patient centred’ care. The EPR is being
developed both centrally by <strong>the</strong> UK Governments National Programme for IT and by many individual
NHS healthcare organisations to provide round-<strong>the</strong>-clock access to essential patient related data. The
patient record is an essential requirement for all healthcare workers but particularly for clinicians and
facilitates improved clinical decision making, enhanced efficiencies and ultimately better patient care
for <strong>the</strong> patient.
An EPR can be thought <strong>of</strong> as a type <strong>of</strong> sophisticated clinical KM system in that it is more than merely
a detailed longitudinal health record. It is a system which can also support clinical actions such as
ordering tests, scheduling investigations and procedures, prescribing and communication. The aim is
to integrate clinical and patient information across <strong>the</strong> whole clinical care process allowing <strong>the</strong>
patients to pass seamlessly through care pathways whilst knowledge and information flow with <strong>the</strong>
patient. Ultimately it is patient related knowledge toge<strong>the</strong>r with information and data which are
essential for clinical decision making. Hence, expectations <strong>of</strong> <strong>the</strong> EPR are high, introduction and
integration difficult and, success unpredictable.
There has been relatively little research about how to actually carry out KM within a health care
organisation. Hansen et al (1999) argue that this could be due to a gap between <strong>the</strong> <strong>the</strong>ories,
strategies and frameworks <strong>of</strong> KM that are presented and <strong>the</strong> approaches for <strong>the</strong>ir practical
application. Additionally, Maier and Remus (2003) concur that uncertainty towards KM is fuelled by
<strong>the</strong> lack <strong>of</strong> a commonly agreed method or procedure for implementing KM. This remains <strong>the</strong> case in
2011. Ultimately deciding to ‘do’ KM is not <strong>the</strong> same as actually ‘doing it’. The Business Process
Approach to KM provides a method for ‘doing’ or implementing KM and has been explored by a
number <strong>of</strong> authors and practitioners such as (Edwards et al., 2005), (Maier and Remus, 2003), (Kwan
and Balasubram, 2003), (Bou and Sauquet, 2004). The majority <strong>of</strong> studies exploring this approach
have however not been in healthcare. This study <strong>the</strong>refore attempts to fill this gap and contribute to
<strong>the</strong> <strong>the</strong>ory on KM implementation in health, by focusing on <strong>the</strong> process <strong>of</strong> KM systems implementation
from <strong>the</strong> <strong>the</strong>oretical lens <strong>of</strong> Business Process <strong>the</strong>ory.
This research is thus exploratory in nature. According to Collis and Hussey (2003), exploratory
research focuses on gaining familiarity and insights with <strong>the</strong> subject area for more rigorous
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investigation at a later stage. Phillips and Pugh (2000) define exploratory research as <strong>the</strong> type <strong>of</strong>
research that is involved in tackling a new topic about which little is known. Fur<strong>the</strong>rmore, as a study
specifically exploring <strong>the</strong> implementation <strong>of</strong> a KM system (EPR) from <strong>the</strong> perspectives <strong>of</strong> <strong>the</strong> various
‘customers’ (i.e. clinicians and ‘patient’) it is unique.
This paper is structured as follows: <strong>the</strong> next section provides a brief review <strong>of</strong> related literature on KM
and KM systems implementation in health and <strong>the</strong> Business Process approach to KM and <strong>the</strong>
subsequent sections provide a description <strong>of</strong> <strong>the</strong> research methodology and <strong>the</strong>n <strong>the</strong> planned
approach to data collection and analysis.
2. Related research
This section will focus specifically on KM in health and <strong>the</strong> Business Process approach to
implementing KM.
2.1 KM in health
The concept <strong>of</strong> KM within healthcare organisations is not novel (Bontis and Serenko, 2009). In fact
<strong>the</strong> complete February 2001 issue <strong>of</strong> <strong>the</strong> ‘journal Topics in Health Information Management (Volume
21, issue 3)’ was dedicated to KM. However, many <strong>of</strong> <strong>the</strong> papers emphasised <strong>the</strong>ir vision for <strong>the</strong>
future, issues and possibilities ra<strong>the</strong>r than descriptions <strong>of</strong> concluded projects.
There are numerous definitions <strong>of</strong> knowledge and KM from <strong>the</strong> narrow to <strong>the</strong> broad and from <strong>the</strong>
practical to <strong>the</strong> conceptual. Space does not permit a thorough discussion on <strong>the</strong> concepts <strong>of</strong> both
knowledge and KM and so for <strong>the</strong> purposes <strong>of</strong> this research we take <strong>the</strong> pragmatic approach that we
regard something in an organisational context as being knowledge or KM if people in that organisation
say it is. Definitions <strong>of</strong> KM in health mirror more generalised definitions <strong>of</strong> KM, but in addition
acknowledge <strong>the</strong> benefits associated with managing knowledge for <strong>the</strong> delivery <strong>of</strong> and <strong>the</strong> quality <strong>of</strong>
patient care. For instance Brailer (1999) describes KM in health as any “systemic process designed to
acquire, conserve, organise, retrieve, display and distribute what is known” (Brailer, 1999, P6). The
Healthcare Information & Management Systems Society in <strong>the</strong> UK defines KM as <strong>the</strong> “aligning <strong>of</strong>
people, processes, data and technologies to optimise information, collaboration, expertise, and
experience in order to drive organisational performance and growth.
Specific factors influence KM in health. Healthcare organisations and in particular hospitals are large
and complex in <strong>the</strong> way in which <strong>the</strong>y are structured. Patient care is delivered through a collection <strong>of</strong>
pr<strong>of</strong>essional specialists who operate in distinct, hierarchical arrangements across organisational units.
The delivery <strong>of</strong> care is thus thought said to be fragmented (Van Beveren, 2003). This unique
operational arrangement has a pr<strong>of</strong>ound effect on <strong>the</strong> ability <strong>of</strong> <strong>the</strong>se organisations to create,
distribute and share knowledge. For example Van Beveren (2003) highlights issues such as
hierarchical structures, resistance to change and divisional structures <strong>of</strong> <strong>the</strong> pr<strong>of</strong>essional workers as
<strong>the</strong> key inhibitors to KM in health and Cegarra-Navarro and Cepeda-Carrion (2010) demonstrate <strong>the</strong>
need for customised KM programs such as reward sharing to support KM in health. O<strong>the</strong>r examples
<strong>of</strong> studies <strong>of</strong> KM in health include; Ford and Anglermeier’s (2004), Bontis and Serenko’s (2009),
Orzano et al (2008), and Zigan et al (2010).
Strategies for <strong>the</strong> implementation <strong>of</strong> KM that is how ideas and <strong>the</strong>ories <strong>of</strong> KM are made relevant to an
organisation are numerous (Hansen et al., 1999, Earl, 2001, Alavi and Leidner, 2001). However
although <strong>the</strong>se strategies present <strong>the</strong>ories on how to approach KM, <strong>the</strong>re remains a gap between
<strong>the</strong>se <strong>the</strong>ories and <strong>the</strong>ir practical application (Edwards and Kidd, 2003). That is how <strong>the</strong>se strategies,
<strong>the</strong>ories and frameworks for KM can be applied, ‘carried out’ or executed.
2.2 The business process approach to KM
The business process route to KM stresses <strong>the</strong> importance <strong>of</strong> ‘processes’ in approaching KM.
Barcelo-Vaalenzuela et al (2008), claim that over 90% <strong>of</strong> organisational activities can be described in
terms <strong>of</strong> processes. Hammer and Champy (1993) “state that a business process takes an input or
inputs and generates an output which is <strong>of</strong> value to <strong>the</strong> customer”. A business process can <strong>the</strong>n be
described as “a collection <strong>of</strong> interdependent activities or tasks organised to achieve specific business
goals” (Barcelo-Vaalenzuela et al., 2008, p324). Edwards (2009 ) proposes that business processes
display a number <strong>of</strong> key characteristics which substantiate why <strong>the</strong>y should be used as <strong>the</strong> foundation
for KM: They comprise a set <strong>of</strong> structured actions (<strong>the</strong>y flow), <strong>the</strong>y have identifiable customers (<strong>the</strong>y
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do things for people), <strong>the</strong>y cut across organisational boundaries and <strong>the</strong>y can be measured.
Ultimately, ‘thinking ‘process’ enables <strong>the</strong> visualisation <strong>of</strong> an organisation as a whole. This holistic
view <strong>of</strong> KM allows emphasis to be placed not only on what <strong>the</strong> organisation actually does but also on
how it does it (Edwards, 2009 ), something that does not appear on a typical organisational chart.
Therefore each business process within <strong>the</strong> organisation can be seen to represent an element <strong>of</strong> that
organisations activity <strong>the</strong>refore by focussing on <strong>the</strong> provision <strong>of</strong> knowledge across all such activities
allowing knowledge to be integrated and embedded into <strong>the</strong> underlying procedures and practices <strong>of</strong>
that organisation.
Additionally, Braganza (2001) highlights <strong>the</strong> importance <strong>of</strong> <strong>the</strong> process view in assisting with thinking
about <strong>the</strong> demand for knowledge, not just <strong>the</strong> supply. The process approach also provides a number
<strong>of</strong> additional benefits; Maier and Remus (2003) advocate that from a strategic perspective it proposes
to provide <strong>the</strong> missing link between KM and business strategy, as process knowledge can be
considered to be a source <strong>of</strong> core competence <strong>the</strong> management <strong>of</strong> process knowledge can be <strong>of</strong>
strategic contribution (Kwan and Balasubram, 2003, Hammer, 1990) and Fung (2006) identify ‘silo
thinking’ to be a recognised weakness within many organisations. As business processes cut across
hierarchies and <strong>the</strong> functional boundaries within an organisation, thinking process can assist in
reducing silo mentality in a naturalistic way (Edwards, 2011). Essentially <strong>the</strong> design <strong>of</strong> KM initiatives
to enhance <strong>the</strong> effective scaffolding <strong>of</strong> each business process (that is thinking about what knowledge
is needed, where it is needed, how it will be used and for what purpose) can allow knowledge to be
used to continuously improve <strong>the</strong> efficiency, effectiveness, productivity, and quality <strong>of</strong> each business
process and so <strong>of</strong>fer a greater opportunity for implementation success (Edwards, 2009 ).
Studies focusing on a combination <strong>of</strong> process orientation and KM have been discussed by many
authors such as Barcelo-Valenzuela et al (2008), Maier and Remus (2003), Bou and Sauquet (2004),
Kwan & Balasubram (2003), Spies et al (2005), and Apostolou et al (2007). The importance <strong>of</strong>
thinking process has also been extensively discussed by Edwards (2003, 2005, 2009, and 2011).
2.3 Business process approach to KM in Healthcare
KM projects within healthcare have typically tended to be ei<strong>the</strong>r technology or people driven, however
<strong>the</strong> consideration <strong>of</strong> processes is also <strong>of</strong> importance.
Provides
support for
PEOPLE
Help design
and <strong>the</strong>n use
TECHNOLOGY
Help design and
<strong>the</strong>n operate
Makes
possible new
kinds <strong>of</strong>
Define <strong>the</strong> roles <strong>of</strong>,
and knowledge
needed by
Determine <strong>the</strong>
need for
PROCESSES
Figure 1: People, processes and technology (Edwards, 2009)
Edwards et al (2005) argues that <strong>the</strong> application <strong>of</strong> a process view <strong>of</strong> KM within healthcare, would
allow for a more ‘holistic view’ <strong>of</strong> <strong>the</strong> whole care process to be envisaged. This in turn would allow <strong>the</strong>
knowledge needs <strong>of</strong> <strong>the</strong> various stakeholders along <strong>the</strong> care pathway to be met. Rothschild et al
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(2005), also advocate a system-oriented perspective to assist in <strong>the</strong> improvement <strong>of</strong> <strong>the</strong> delivery <strong>of</strong>
health information systems particularly within Acute Care.
Healthcare organisations are complex and unique both in <strong>the</strong> way in which <strong>the</strong>y are structured and
how <strong>the</strong>y operate. For instance, a typical hospital tends to be structured departmentally according to
medical specialities with <strong>the</strong> focus internal ra<strong>the</strong>r than across functional silos (Edwards, 2011).
Clinicians however need to be able to share knowledge regarding patients across various speciality
departments and processes, following a patient along a care pathway. Business processes typically
cut across organisational boundaries and thus organisational silos, consequently boundary spanning
knowledge can be provided across <strong>the</strong> organisational silos (Edwards, 2011). Thus process thinking
allows those involved in “adjacent” or connecting activities within a process to share knowledge
(Edwards, 2011) which is <strong>of</strong> particular importance in health.
Studies focussing on <strong>the</strong> process approach to KM in health include Reu<strong>the</strong> and Allee (1999) who
argue for <strong>the</strong> arrangement <strong>of</strong> knowledge through an entire clinical care process as opposed to around
what <strong>the</strong>y term an ‘episode’ <strong>of</strong> care. Batalden and Splaine (2002) advocate a process view <strong>of</strong> health
care provision with an emphasis on what <strong>the</strong>y describe as microsystems (a group <strong>of</strong> people that are
actually involved in <strong>the</strong> care <strong>of</strong> an individual patient). O<strong>the</strong>rs include Desouza (2002) and Berg and
Toussaint (2003).
2.4 KM systems
Definitions <strong>of</strong> KM systems can be said to be dependent on <strong>the</strong> perspective <strong>of</strong> knowledge that is taken,
that is what is termed as knowledge, how knowledge is created and held and its relationship with
information and data (Moteleb and Woodman, 2007). Alavi and Leidner (1999) describe a KM system
as a “system designed specifically to facilitate <strong>the</strong> sharing and integration <strong>of</strong> knowledge” that is a way
<strong>of</strong> creating, capturing, accessing and reusing knowledge throughout <strong>the</strong> organisation. Chalmeta and
Grangel (2008) propose a step by step methodology for directing <strong>the</strong> development and
implementation <strong>of</strong> an IT based KM system which <strong>the</strong>y, advocate can be applied to any type <strong>of</strong>
organisation. However, since healthcare organisations are unique in structure and in how <strong>the</strong>y
operate such methodologies are difficult to apply. Ghosh and Scott (2007) investigate KM processes
and organisational enablers associated with effective KM systems within <strong>the</strong> clinical nursing setting.
Fahey (2008) uses <strong>the</strong> development and implementation <strong>of</strong> a KM system within a hospital to illustrate
<strong>the</strong> diffusion <strong>of</strong> innovation processes and why <strong>the</strong> implementation <strong>of</strong> some KM systems fail. O<strong>the</strong>r
studies <strong>of</strong> IT based KM systems in health include: Davenport and Glaser’s (2002), Pedersen and
Larsen (2001), and McNulty’s (2002).
Looking at IT-based healthcare systems more generally than just KM systems <strong>the</strong> literature on <strong>the</strong>
development and implementation <strong>of</strong> such systems reflects a strong emphasis on <strong>the</strong> view <strong>of</strong> <strong>the</strong>
clinician as <strong>the</strong> primary ‘Customer’ <strong>of</strong> such systems. For example, Andersen (1997) focuses on <strong>the</strong>
physician in building physician friendly clinical information systems and <strong>the</strong> benefits <strong>of</strong> involving
clinicians for successful implementation; while Jensen and Aanestad (2007) explore how healthcare
pr<strong>of</strong>essionals interpret and respond to an EPR, <strong>the</strong>ir conceptions <strong>of</strong> technology and how it relates to
<strong>the</strong>ir pr<strong>of</strong>essional roles from a sense making perspective.
The NHS mission statement asserts that “<strong>the</strong> patients' needs and experiences are <strong>the</strong> first and
uppermost consideration and <strong>the</strong> best outcomes result when patients, <strong>the</strong>ir carers and relatives and
staff are active parties in decision taking“. Hence, <strong>the</strong> ‘patient’ could be defined as <strong>the</strong> ultimate
‘customer’ <strong>of</strong> a health information system. Studies exploring <strong>the</strong> ‘patient’ perspective generally evolve
from clinically orientated work conducted in <strong>the</strong> medical and health informatics field, focusing on
clinician performance and patient outcomes (Hunt et al., 1998), (Garg et al., 2005), (Johnston et al.,
2003). O<strong>the</strong>r relevant studies focus on <strong>the</strong> use <strong>of</strong> systems to assist in patient education and <strong>the</strong>
acceptance <strong>of</strong> technology by patients in relation to <strong>the</strong> management <strong>of</strong> chronic diseases (Osher<strong>of</strong>f et
al, 1995), patient-clinician communication (Shachak and Reis, 2009) and <strong>the</strong> quantitative
measurement <strong>of</strong> patient perception following a clinical consultation (Haddad et al., 1999).
The health information systems literature tends to neglect <strong>the</strong> significance <strong>of</strong> <strong>the</strong> ‘patient’, ultimately
both ‘customer’ groups ‘clinicians’ and ‘patients’ should be given consideration in <strong>the</strong> design and
development <strong>of</strong> KM systems in health. Leonard (2004) does draw attention to <strong>the</strong> importance <strong>of</strong> <strong>the</strong>
role <strong>of</strong> patients in <strong>the</strong> design <strong>of</strong> health information systems, and <strong>the</strong> importance <strong>of</strong> patient in having
access to information to assist and enhance <strong>the</strong> process <strong>of</strong> joint decision making in chronic disease.
Apart from this <strong>the</strong>re is a dearth in <strong>the</strong> literature reflecting <strong>the</strong> ‘patient’ perspective. This research aims
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at closing this disconcerting gap by presenting an analysis <strong>of</strong> <strong>the</strong> different perspectives <strong>of</strong> both
‘customer’ groups. Additionally, an in depth case study exploring <strong>the</strong> implementation <strong>of</strong> a KM system
through <strong>the</strong> lens <strong>of</strong> process <strong>the</strong>ory will allow <strong>the</strong> exploration <strong>of</strong> how people, processes and technology
fit toge<strong>the</strong>r for effective KM across healthcare organisational functions.
3. Research methodology
This section presents an overview <strong>of</strong> <strong>the</strong> intended research approach, <strong>the</strong> data ga<strong>the</strong>ring instruments
that will be employed and <strong>the</strong> research design. An interpretivist approach to research will be taken to
conduct an in-depth longitudinal study across a hospital. Qualitative methods (Silverman, 2005) will
be used based around case study research (Eisenhardt, 1989). It is believed that due to <strong>the</strong> nature
and structuring <strong>of</strong> <strong>the</strong> NHS all NHS hospitals have a certain similarity. Thus <strong>the</strong> case chosen for this
research is a typical large NHS Foundation Trust hospital, and it is hoped that this will provide an indepth
understanding <strong>of</strong> <strong>the</strong> process <strong>of</strong> implementation and adoption <strong>of</strong> <strong>the</strong> KM system. The primarily
focus will be on <strong>the</strong> whole hospital however <strong>the</strong> intention is to contrast five specialty departments as
sub-cases within <strong>the</strong> hospital as case unit. These sub units will be chosen to reflect and represent
units with differing levels <strong>of</strong> complexity and experience with KM systems technology.
Different methods <strong>of</strong> generating knowledge have <strong>the</strong>ir foundation in opposing philosophical traditions,
each having a justifiable way <strong>of</strong> conducting research and creating knowledge. The Interpretive
perspective argues that <strong>the</strong>re are o<strong>the</strong>r means <strong>of</strong> knowing about reality and <strong>the</strong> world through
observation. Epistemologically, knowledge <strong>of</strong> <strong>the</strong> world is created and interpreted through an
individual’s own experiences it is <strong>the</strong>refore subjective. Knowledge in this approach is constructed
through inductive methods <strong>of</strong> understanding <strong>the</strong> social phenomena such as <strong>the</strong>ory building descriptive
studies. The research <strong>the</strong>mes for this study strongly indicate <strong>the</strong> need for a qualitative approach to be
taken. This approach is appropriate as it will allow <strong>the</strong> exploration and understanding <strong>of</strong> social and
cultural context <strong>of</strong> <strong>the</strong> KM system, <strong>the</strong> meaning individuals ascribe to <strong>the</strong> system and a detailed
understanding <strong>of</strong> <strong>the</strong> adoption process. A <strong>the</strong>ory testing approach would provide a picture <strong>of</strong> trends,
associations, and relationships, but it would not tell us about why people respond as <strong>the</strong>y did, <strong>the</strong>
context in which <strong>the</strong>y responded, and <strong>the</strong>ir deeper thoughts and behaviours that governed <strong>the</strong>ir
responses. Providing measures and statistical analyses would simply not fit <strong>the</strong> objectives <strong>of</strong> <strong>the</strong>
study. Interactions among people, for example, are difficult to capture with measures, <strong>the</strong>se measures
may not also be sensitive to certain issues and to level all individuals to a statistical mean overlooks
<strong>the</strong> uniqueness <strong>of</strong> individuals in a study. The qualitative approach will also assist in examining <strong>the</strong>
complexity <strong>of</strong> KM systems providing fur<strong>the</strong>r insights into KM and business process <strong>the</strong>ory. Research
objectives are appropriate as understanding comes as <strong>the</strong> answer to questions such as how? and
why? Accordingly, this study is not defined by a hypo<strong>the</strong>sis or a research question ala positivist
research; instead <strong>the</strong> intention is to examine three exploratory research objectives or questions:
To explore <strong>the</strong> overall strategic goals and objectives <strong>of</strong> <strong>the</strong> Trust, <strong>the</strong> vision and objectives for KM
and how <strong>the</strong> strategy for KM systems will be implemented around <strong>the</strong> organisational structure;
To investigate and examine a number <strong>of</strong> business processes, identify <strong>the</strong> local and global
information and knowledge requirements across each, understand <strong>the</strong> process boundaries and
<strong>the</strong> interaction between <strong>the</strong>se local processes and <strong>the</strong> KM system;
To understand <strong>the</strong> effects <strong>of</strong> <strong>the</strong> KM system on <strong>the</strong> ‘customer’, patient care and <strong>the</strong> delivery <strong>of</strong>
global clinical knowledge across <strong>the</strong> whole care process.
3.1 Research design
Research strategy can be defined as “a general plan <strong>of</strong> how <strong>the</strong> researcher will go about answering
<strong>the</strong> research questions” (Saunders et al., 2003, p90). Robson (2002) defines it as <strong>the</strong> general
approach taken in an enquiry and distinguishes between three types <strong>of</strong> research design fixed, flexible
and multiple. A fixed design or experimental strategy requires a tight pre-specification before <strong>the</strong> data
collection stage, data is typically in <strong>the</strong> form <strong>of</strong> numbers and is usually related to <strong>the</strong> natural sciences
– quantitative research strategy. With a flexible design data evolves during <strong>the</strong> data collection phase
and data is typically non-numerical – qualitative strategy. A multiple design is a hybrid strategy
incorporating both fixed and flexible elements - (Robson, 2002). For this study a flexible qualitative
strategy is appropriate as <strong>the</strong> work is exploratory ra<strong>the</strong>r than explanatory in nature. The proposed
design comprises primary data collection from semi-structured interviews and direct observation, and
secondary data collection based on document analysis. This will <strong>of</strong>fer an opportunity to cross check
findings and provide greater confidence and validity.
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Sara McCracken and John Edwards
Interviews are a widely employed method for data collection in qualitative research providing rich,
detailed information on what people think or believe about an issue, <strong>the</strong>ir accounts <strong>of</strong> particular
experiences or narratives. Semi structured interviews which are widely used for flexible exploratory
studies will be used to us <strong>the</strong> opportunity to obtain responses to a preset list <strong>of</strong> topics, provide
flexibility in <strong>the</strong> wording <strong>of</strong> specific questions, and allow varying amounts <strong>of</strong> time and attention to be
given to different topics or <strong>the</strong>mes (Bryman and Bell, 2003). This type <strong>of</strong> interview will also permit <strong>the</strong>
follow up <strong>of</strong> interesting ideas from analysis and uncovering <strong>of</strong> new areas or ideas that were not
anticipated at <strong>the</strong> outset <strong>of</strong> <strong>the</strong> research. One to one, semi-structured interviews will be conducted
with two types <strong>of</strong> participant group. Firstly, interviews with all members <strong>of</strong> <strong>the</strong> EPR Programme board,
comprising members <strong>of</strong> <strong>the</strong> executive management team, <strong>the</strong>se interviews will be used to explore in
depth <strong>the</strong> overall strategy and decision making process for <strong>the</strong> KM system. A second and third set <strong>of</strong>
interviews will be conducted with <strong>the</strong> clinical users <strong>of</strong> <strong>the</strong> system and <strong>the</strong> patient group <strong>the</strong>se will
explore in-depth <strong>the</strong> ways in which <strong>the</strong> system is being used, individual views and experiences with
<strong>the</strong> system. Identification and recruitment <strong>of</strong> interviewees will be selected at random and conducted
across <strong>the</strong> five specific speciality departments. Similarly <strong>the</strong> third set <strong>of</strong> interviews will be conducted
with <strong>the</strong> patient group aligned to each <strong>of</strong> <strong>the</strong>se departments to capture <strong>the</strong> views <strong>of</strong> <strong>the</strong> ultimate
customer for <strong>the</strong> EPR or KM system.
Structured observations provide a method for systematically observing <strong>the</strong> behaviour <strong>of</strong> individuals in
terms <strong>of</strong> a specific schedule <strong>of</strong> categories (Bryman and Bell, 2003). Un-structured observations do not
require <strong>the</strong> use <strong>of</strong> an observation schedule, <strong>the</strong> aim here is to record as much detail as possible about
<strong>the</strong> behaviour <strong>of</strong> participants (Bryman and Bell (2003), (Gold, 1958). In this study <strong>the</strong> role <strong>of</strong> observer
will be non-participatory, i.e. that <strong>of</strong> ‘complete observer’. A series <strong>of</strong> monthly EPR executive board
meetings will be observed in a non-participatory manner over <strong>the</strong> data collection period. The intention
is to maintain a distance from <strong>the</strong> observed events in order to avoid influencing <strong>the</strong>m. These meetings
will provide additional information on <strong>the</strong> case and secondary data for triangulation. Additional
secondary data will be collected from internal documents such as reports, meeting minutes, policy
documentation, promotional literature and stakeholder websites. These documents will assist with
analysis and will also allow <strong>the</strong> triangulation <strong>of</strong> evidence gained from primary data collection.
Within qualitative research <strong>the</strong> concept <strong>of</strong> validity has to do with explanations and descriptions, and
whe<strong>the</strong>r or not a given explanation fits a given description. A number <strong>of</strong> strategies will be employed to
streng<strong>the</strong>n validity in addition to data triangulation. Firstly, an audit trail (Robson, 2002) or research
diary will be kept aimed at reducing researcher bias. The diary will include thoughts and ideas
relevant to all aspects <strong>of</strong> <strong>the</strong> project: filed notes outlining <strong>the</strong> development <strong>of</strong> <strong>the</strong> research process
and research design, data collection, and data analysis. This, toge<strong>the</strong>r with raw data and details <strong>of</strong>
data coding and analysis will constitute a full record <strong>of</strong> activities whilst carrying out <strong>the</strong> study.
Essentially, this will provide documentation on <strong>the</strong> development <strong>of</strong> <strong>the</strong> project should <strong>the</strong> project be
required to be replicated. Secondly, 'Peer debriefing, ' where <strong>the</strong> researcher discusses interpretations
and findings with <strong>the</strong> study supervisor and with research colleagues who are carrying out studies
similar in design, will be introduced to fur<strong>the</strong>r reduce <strong>the</strong> possibility <strong>of</strong> researcher bias by providing an
opportunity for alternative interpretations and explanations to be suggested to <strong>the</strong> researcher.
The concept <strong>of</strong> reliability is all about carrying out research in a consistent fashion, showing that you
have been thorough, careful and honest in carrying out <strong>the</strong> research (Robson, 2002). This study will
employ <strong>the</strong> following actions in respect to reliability. Firstly, all meeting observations and interviews
will be recorded, <strong>the</strong>se interviews will be transcribed to take into account vocal expression, pauses
and overlaps. Consistency and standardisation will be observed with note taking and documentation.
Silverman (2005) also suggests inter-coder agreements, that is <strong>the</strong> use <strong>of</strong> multiple coders to analyse
transcripts data to check <strong>the</strong> reliability <strong>of</strong> <strong>the</strong>mes and coding.
Generalisability relates to whe<strong>the</strong>r <strong>the</strong> findings are likely to have broader applicability beyond <strong>the</strong>
focus <strong>of</strong> <strong>the</strong> study. There much debate amongst authors from within <strong>the</strong> case study tradition and
externally as to <strong>the</strong> generalisability <strong>of</strong> case study findings. Although it could be argued that one NHS
hospital is much <strong>the</strong> same as ano<strong>the</strong>r, this research will provide an in-depth study <strong>of</strong> one particular
case. The emphasis is not on how this case differs from o<strong>the</strong>rs but on providing an understanding <strong>of</strong>
this individual case. However <strong>the</strong> study <strong>of</strong> several sub departments may provide some internal
findings that may be generalisable. With regards to ethical considerations, full ethical approval and
access has been obtained from <strong>the</strong> participating NHS organisation. Each interviewee will be provided
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Sara McCracken and John Edwards
with a participant information sheet incorporating an informed consent form prior to each interview.
With regards to meeting observations, consent for audio recording and <strong>the</strong> collection <strong>of</strong> meeting notes
will be obtained prior to each meeting.
3.2 Data analysis strategy
The <strong>the</strong>oretical propositions strategy, which is <strong>of</strong>ten used for qualitative data analysis will be used as
<strong>the</strong> overriding approach in this study. Initial <strong>the</strong>oretical research <strong>the</strong>mes and propositions are used to
help shape and organise <strong>the</strong> case study analysis. An advantage <strong>of</strong> this strategy is that it allows <strong>the</strong>
definition <strong>of</strong> alternative explanations for <strong>the</strong> case to be defined and examined (Yin, 2009). Fig 2 shows
Creswell’s (2007) model showing <strong>the</strong> data analysis process. Analysis proceeds by moving in
analytical circles or spiralling ra<strong>the</strong>r than moving through a fixed linear approach which is typical <strong>of</strong>
quantitative enquiry (Creswell, 2007).
Figure 2: Cresswell’s model
Data management precedes data analysis, here data is organised into files or folders. Analysis begins
with <strong>the</strong> commonly known process <strong>of</strong> ‘coding. Data is converted or reducing down into meaningful
segments, <strong>the</strong>mes or text units each being assigned an appropriate name. To assist in <strong>the</strong>
identification <strong>of</strong> codes <strong>the</strong> reading and memoing loop is an important initial element <strong>of</strong> <strong>the</strong> process.
Here a sense <strong>of</strong> <strong>the</strong> whole database is obtained, by “immersing oneself in <strong>the</strong> data”. For example
interview transcripts in <strong>the</strong>ir entirety will be read several times to try and get a sense <strong>of</strong> <strong>the</strong> interview
as a whole before segmenting it into parts. Notes will be written in <strong>the</strong> margins <strong>of</strong> transcripts and field
notes for ideas and key concepts that may occur.
The following spiral <strong>of</strong> describing, classifying, and interpreting allows <strong>the</strong> codes developed to be
represented as detailed descriptions, individual words or texts, <strong>the</strong>mes or dimensions. In this case
<strong>the</strong>se codes will be contextualised from <strong>the</strong> <strong>the</strong>oretical literature i.e. <strong>the</strong> Business Process approach.
Codes will <strong>the</strong>n be sorted, categorised or classified, Creswell (2007, pp152) describes this process as
<strong>the</strong> ‘winnowing’ <strong>of</strong> <strong>the</strong> data, in that it allows unwanted data can be discarded. Classification involves
fur<strong>the</strong>r analysis <strong>of</strong> <strong>the</strong> developed codes by taking <strong>the</strong> text or qualitative information apart, and looking
for categories, <strong>the</strong>mes, or dimensions <strong>of</strong> information. For example a ‘family’ <strong>of</strong> <strong>the</strong>mes with children,
or sub<strong>the</strong>mes (Creswell, 2007, pp153) may be identified from <strong>the</strong> data. These categories will
represent <strong>the</strong> patterns in <strong>the</strong> data. Fur<strong>the</strong>r detailed description, <strong>the</strong>me generation and classification
will be conducted to provide an interpretation <strong>of</strong> <strong>the</strong> data from <strong>the</strong> perspective <strong>of</strong> <strong>the</strong> analyser and
from <strong>the</strong> views from <strong>the</strong> literature. Data analysis, coding and <strong>the</strong>me development will be supported by
<strong>the</strong> s<strong>of</strong>tware tool NVivo.
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4. Progress thus far
Sara McCracken and John Edwards
The aim <strong>of</strong> this research is to use <strong>the</strong> concept <strong>of</strong> <strong>the</strong> Business Process route to implementing KM as a
<strong>the</strong>oretical lens, to analyse and explore <strong>the</strong> development, execution and implementation <strong>of</strong> a KM
system, i.e. <strong>the</strong> EPR system. The outcome will be a better understanding <strong>of</strong> EPR as a KM system and
its effect on <strong>the</strong> hospital, users and patients. So far, 18 months <strong>of</strong> EPR programme board meetings
have been observed and 8 interviews have been conducted with senior managers on <strong>the</strong> EPR
executive board producing a total <strong>of</strong> 51 hours <strong>of</strong> recordings. In addition some documentary evidence
has also been collected. We are currently at <strong>the</strong> preliminary stages <strong>of</strong> data analysis.
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770

Organisational Learning Capabilities (OLC) Toward
Knowledge Performance <strong>of</strong> Librarians: A Research Model
Mohd Shamsul Mohd Shoid, Norliya Ahmad Kassim, Mohd Idzwan Mohd Salleh
Faculty <strong>of</strong> Information Management, Universiti Teknologi MARA, Shah Alam,
Selangor Darul Ehsan, Malaysia
shamsul_shoid@yahoo.com
drnorliya@yahoo.com
mdidzwan@yahoo.co.uk
Abstract: The effect <strong>of</strong> organisational learning on knowledge performance is contingent upon various firm and
organisational level. This conceptual paper provides a brief review <strong>of</strong> related research and literature on
organisational learning capability (OLC) dimensions and knowledge performance. These two topics,
organisational learning capabilities and knowledge performance are both explained toge<strong>the</strong>r through various
views <strong>of</strong> experts on <strong>the</strong> knowledge management discipline. The paper also attempts to capture and to improve
<strong>the</strong> perceptions and understandings <strong>of</strong> information pr<strong>of</strong>essionals, specifically librarians, on this field <strong>of</strong> study.
Apart from that, a novel research model is developed and proposed to assess <strong>the</strong> knowledge performance
among librarians in Malaysian institutions <strong>of</strong> higher education (IHE) university libraries. The main independent
variable <strong>of</strong> this model is organisational learning capabilities with eight dimensions namely systems thinking,
organisational culture, leadership, Information Communication Technology (ICT), transfer <strong>of</strong> knowledge,
teamwork cooperation, shared mission and vision and employees’ skills and competencies; while <strong>the</strong> dependent
variable is knowledge performance. By adapting <strong>the</strong> model, it is beneficial for librarians and management <strong>of</strong>
academic libraries to improve <strong>the</strong> skill <strong>of</strong> acquiring knowledge and to enhance <strong>the</strong> learning capabilities among
<strong>the</strong>ir stakeholders. Apart from bridging <strong>the</strong> knowledge gap, it will also certainly assist academic libraries and
Ministry <strong>of</strong> Higher Education to collaborate and to review <strong>the</strong> traditional system by incorporating organisational
learning capability elements into <strong>the</strong> entire system <strong>of</strong> higher education institutions.
Keywords: organisational learning capabilities (OLC); knowledge performance; librarians; research model;
university libraries
1. Introduction
Information pr<strong>of</strong>essionals in <strong>the</strong> context <strong>of</strong> librarians in <strong>the</strong> higher education institutions are
specialised in knowledge management processes. They work in three areas which are user services,
<strong>the</strong> task <strong>of</strong> administrative services and technical services. However, nowadays, <strong>the</strong>ir tasks have been
challenged by increasingly complex and constant change in <strong>the</strong> organisational, technological and
informational environment. Information pr<strong>of</strong>essionals need to stay updated with new technologies and
systems, new forms <strong>of</strong> information, information media and information sources, tasks and roles.
Indeed, <strong>the</strong> main role <strong>of</strong> libraries in higher learning institutions is to nurture and instil necessary higher
learning skills and knowledge capabilities among individuals or groups by presenting existing or
creating new knowledge. Libraries in higher learning institutions are now connected to <strong>the</strong> knowledge
society which tries to make clear on how to use <strong>the</strong> knowledge in order to achieve its interests as well
as to manage <strong>the</strong> streams <strong>of</strong> information. Besides, both learning and knowledge are <strong>the</strong> most
important resources <strong>of</strong> an organisation by endowing it competitive advantages. The existence <strong>of</strong>
learning and knowledge will create and define <strong>the</strong> true concept <strong>of</strong> Knowledge Management (KM)
process through knowledge acquisition and organisational learning capabilities at libraries in higher
learning institutions.
The increased capacity <strong>of</strong> identifying, distilling, harnessing and using information will help to construct
knowledge for organisational learning (OL) practices to become indispensable objective for any
organisation, thus, streng<strong>the</strong>ning <strong>the</strong> organisational learning process as <strong>the</strong> organisational learning
mechanism. According to Bauman (2005) organisational learning would have been promoted in a
community <strong>of</strong> institutions when four main conditions, namely existence <strong>of</strong> new ideas, cultivation <strong>of</strong>
doubt in existing knowledge and practices and expanding as well as transferring <strong>of</strong> knowledge among
<strong>the</strong> institutional community, exist. Organisational learning is also defined as organisational learning
capability (OLC) which enables <strong>the</strong> organisation to practice <strong>the</strong> most appropriate and accurate
management practices, structures and procedures that facilitate and encourage learning. Goh (2003)
believes <strong>the</strong>se management practices are widespread throughout <strong>the</strong> organisation. However, most
academicians believe that <strong>the</strong>y are only responsible in managing knowledge which is already involved
with a particular level <strong>of</strong> knowledge management. In institutions <strong>of</strong> higher learning, faculties, staff and
administrations have different views on how organisations have been structured and operated. The
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different unique perspectives or views will affect <strong>the</strong> organisation’s ability to acquire knowledge, to
create <strong>the</strong> shared attitude, shared vision and common goals. In order to make <strong>the</strong> knowledge
acquisition process and learning capabilities possible within an organisation, <strong>the</strong> organisation needs
to focus on <strong>the</strong> ability <strong>of</strong> “learning”. Hence, it is important for an organisation to focus on human
resource and to provide and facilitate personnel’s learning endeavours in order to acquire competitive
advantage <strong>of</strong> a learning environment by identifying learning capabilities.
The quality <strong>of</strong> members <strong>of</strong> staff <strong>of</strong> an organisation depends on <strong>the</strong>ir efforts to learn and upgrade <strong>the</strong>ir
skills. Hence, it is important to be familiar with <strong>the</strong> complex social, political and cultural environment <strong>of</strong>
<strong>the</strong> institutions especially higher learning institutions. Information pr<strong>of</strong>essionals are responsible to
assist <strong>the</strong> library patrons with <strong>the</strong> loan and return <strong>of</strong> library materials, searching for quality information
through internet usage, planning and management <strong>of</strong> libraries, technical services; acquisitions and
cataloguing, indexing and abstracting and so forth. The competencies <strong>of</strong> an information pr<strong>of</strong>essional
can be defined as his or her knowledge, skills and abilities that contribute to <strong>the</strong> particular pr<strong>of</strong>ession
e.g. librarian. Since <strong>the</strong> librarians have <strong>the</strong> vital authority to manage <strong>the</strong> selection, organisation,
preservation and dissemination <strong>of</strong> information, <strong>the</strong>refore, <strong>the</strong>y are responsible in providing <strong>the</strong>ir
clientele <strong>the</strong> access to all <strong>the</strong> information available in <strong>the</strong>ir organisation. The success <strong>of</strong> organisational
learning is based on <strong>the</strong> culture, leadership and <strong>the</strong> value <strong>of</strong> <strong>the</strong> organisation’s learning capabilities.
Learning capabilities have been designed to encourage <strong>the</strong> process <strong>of</strong> acquiring, creating, sharing <strong>of</strong>
knowledge among <strong>the</strong> institutions <strong>of</strong> higher education community. The features <strong>of</strong> organisational
learning capabilities such as consciousness, systematic mechanism, activities and practices
throughout <strong>the</strong> organisation help in facilitating <strong>the</strong> acquisition and dissemination <strong>of</strong> knowledge.
2. Literature Review
2.1 Organisational learning and Organisational Learning Capability (OLC)
Organisational learning, which is also referred to as organisational learning capability, has been
described as having four facets or aspects, which are: existent, breadth, elaborateness and
thoroughness. Organisational learning capability is about <strong>the</strong> ability <strong>of</strong> one organisation to apply
accurate and appropriate management practices, <strong>the</strong> structures, as well as <strong>the</strong> procedures which
enhance, facilitate and encourage learning. Goh (2003) believes that, <strong>the</strong> growth <strong>of</strong> this practice will
result in stronger learning capability throughout <strong>the</strong> organisation. It has been assumed that, every
learning organisation will be involved with <strong>the</strong> process <strong>of</strong> acquiring knowledge or organisational
learning. As a result, an organisation is still learning even if only a few units <strong>of</strong> <strong>the</strong> organisation are
learning, and it is possible for organisational learning to happen whe<strong>the</strong>r <strong>the</strong> organisation’s units or
departments are having or acquiring knowledge relevant to <strong>the</strong>m or not, and whe<strong>the</strong>r <strong>the</strong>y realise <strong>the</strong>
impending benefits involved or not. This certainly is an advantage for <strong>the</strong> organisation in <strong>the</strong> present,
as well as in <strong>the</strong> future. It will also fix <strong>the</strong> breadth <strong>of</strong> organisational learning, constructing <strong>the</strong> four
learning-related structures in organisational learning, which involve <strong>the</strong> knowledge acquisition
process, information distribution, information interpretation and organisational memory (Huber, 1991).
Knowledge acquisition is <strong>the</strong> process <strong>of</strong> obtaining and accumulating knowledge, while information
distribution is <strong>the</strong> process <strong>of</strong> sharing information or knowledge. Both will potentially lead to <strong>the</strong>
emergence <strong>of</strong> new information or perceptions. Information interpretation occurs when <strong>the</strong> distributed
information is accepted and understood. Organisational memory is <strong>the</strong> process <strong>of</strong> storing information
for future use. Some <strong>of</strong> <strong>the</strong> storing involves technology with advanced applications such as coding, efiling
and o<strong>the</strong>rs.
Day (1994) had determined that organisational learning capabilities are a complex skill that combines
<strong>the</strong> learning, practiced inside and among organisations (through organisational processes), in order to
ensure <strong>the</strong> greater organisation <strong>of</strong> functional activities. According to Popper and Lipshitz (1998)
organisational learning methods lay <strong>the</strong> foundation for <strong>the</strong> understanding <strong>of</strong> what is learning in an
organisation, what are <strong>the</strong> structures, strategies and procedures that allow <strong>the</strong> whole staff <strong>of</strong> <strong>the</strong>
organisation (library) to continue learning. Accessing and identifying <strong>the</strong> impact <strong>of</strong> organisational
practices and internal environment <strong>of</strong> one organisation help in accessing <strong>the</strong> organisational learning
capabilities. The success and development <strong>of</strong> a knowledge-based organisation is based on capturing
and acquiring knowledge. According to Khasiah and Norliya (2010) noted that academic library,
learning and research are always connected with each o<strong>the</strong>r. The library is a vital component for <strong>the</strong>
researcher, as well as for <strong>the</strong> teachers and students, as it provides <strong>the</strong> services such as acquiring,
storing and retrieving. Moreover, researches give <strong>the</strong> best result to <strong>the</strong> field <strong>of</strong> teaching and learning
<strong>of</strong> university towards being a world class university. Besides, research will be declared as <strong>the</strong> centre
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<strong>of</strong> university activities. On o<strong>the</strong>r hand, Allameh, Abbasi and Shokrani (2010) stated OLC is <strong>the</strong>
organisational and managerial factors which contribute to <strong>the</strong> enhancement <strong>of</strong> organisational learning
process in organisation. Later, by listed down <strong>the</strong> failures, organisation will examine <strong>the</strong> beneficial and
non-beneficial success and also errors for future use.
3. Dimensions <strong>of</strong> Organisational Learning Capabilities
There are eight dimensions <strong>of</strong> organisational learning capabilities identified as to determine <strong>the</strong>
knowledge performance among librarians in academic libraries as adopted from <strong>the</strong> previous
literature review. Each <strong>of</strong> <strong>the</strong> elements <strong>of</strong> <strong>the</strong> organisational learning capabilities has been cited by
previous researchers (Goh and Richards, 1997, 2003; Neefe 2001; Hishamuddin et al, 2010). These
dimensions are:
3.1 Systems thinking
Systems thinking is a system that provides not only <strong>the</strong> apparent understanding <strong>of</strong> an organisation’s
original business, but also <strong>the</strong> problems caused to <strong>the</strong> organisation’s business. By viewing and
understanding <strong>the</strong> organisation’s original business and determining <strong>the</strong> causes <strong>of</strong> problems, leaders
and o<strong>the</strong>r members <strong>of</strong> staff can collaborate with each o<strong>the</strong>r to find <strong>the</strong> best solution for <strong>the</strong>
organisation (Senge, 1990). In addition, systems thinking is a structure that gives a view <strong>of</strong>
interrelationships <strong>of</strong> patterns <strong>of</strong> change in an organisation instead <strong>of</strong> a static “snapshot” (HEFCE,
2003). Additionally, systems thinking provides specific language in order to train people through
systematic thinking. According to Poon and Kamarul Zaman, (1998) systems thinking framework
builds <strong>the</strong> understanding among <strong>the</strong> employees regarding <strong>the</strong> interrelationships <strong>of</strong> key components <strong>of</strong>
systems that run in <strong>the</strong> organisation. It gears <strong>the</strong> organisation toward a paradigm shift, from seeing a
‘static snapshot’ view <strong>of</strong> change as a linear chain <strong>of</strong> causes and effects to seeing change as an interrelationship
<strong>of</strong> a variety <strong>of</strong> factors. Besides that, systems thinking has also established its own
language <strong>of</strong> circular back loops as it entails non-linear language (Senge, 1990; Fedderson, 1999).
3.2 Organisational culture
Organisational culture refers to a set <strong>of</strong> shared values that induces <strong>the</strong> organisational community to
understand <strong>the</strong> functionality <strong>of</strong> <strong>the</strong> organisation itself. At <strong>the</strong> same time, it also helps in guiding <strong>the</strong>
way <strong>of</strong> thinking as well as <strong>the</strong> behaviour <strong>of</strong> members. There are four types <strong>of</strong> cultures listed by
McKenna (2000); power culture, role culture, support culture and achievement culture. The cultures
are totally different from one country to <strong>the</strong> next. A set <strong>of</strong> organisation’s vision should acknowledge
<strong>the</strong> organisational structures and communication system as it helps in facilitating decision making
process among members <strong>of</strong> staff through mutual dependent learning (Howard and Sommerville,
2008). Based on this perspective, culture in organisation provides elements <strong>of</strong> appreciation and
growth <strong>of</strong> positive action within organisational system (Checkland, 1994; Jenlink and Banathy, 2005).
Fur<strong>the</strong>rmore, though employees come and go and organisational leaderships and policies may
change, organisation’s memoirs preserve <strong>the</strong> particular organisational behaviours, values and mental
maps over time. The organisation builds a culture that serves as a repository for each lesson learned
(Gephart and Marsick, 1996).
3.3 Leadership
Shaw and Perkins (1991) stressed that leaders have <strong>the</strong> vital role <strong>of</strong> promoting effective learning
capabilities inside <strong>the</strong> organisation. Hence, <strong>the</strong> managers need to develop strategic action and
specific involvement to ensure that learning takes place. They give examples by introducing
mechanism that will encourage and make possible for <strong>the</strong> transfer <strong>of</strong> knowledge between teams and
developing shared vision among employees. In addition, committed leadership is vital in fostering
learning in organisations. Therefore, high conviction is needed as to approach <strong>the</strong> employees while
mistakes are openly accepted as it is part <strong>of</strong> a learning process (Theriou, Theriou and Chatzogluo,
2006). Slocum et al (1994) stated that leaders should be able to encourage innovation and initiatives
in each individual through development <strong>of</strong> competencies centred on learning and open
communications that support <strong>the</strong> minimal costs <strong>of</strong> internal change and creation <strong>of</strong> teamwork. The
presence <strong>of</strong> leaderships promotes <strong>the</strong> close linkages to learning, mutual trusts with each o<strong>the</strong>r, risk
taking and sharing organisation’s vision and mission (Levitt and March, 1988).
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3.4 Information Communication Technology (ICT)
The effectiveness <strong>of</strong> information technology to organisational learning cannot be denied and has been
widely accepted. Consequently, <strong>the</strong> existence <strong>of</strong> organisational learning computer systems (OLCSs)
endows positive impact on organisational learning process. Moreover, OLCSs is a system that is
enriched with knowledge acquisition, knowledge distribution, broadcasting, updating and memory
features (Chou, 2003). On <strong>the</strong> o<strong>the</strong>r hand, librarians and information pr<strong>of</strong>essionals are facing complex
tasks and exciting future as a result <strong>of</strong> <strong>the</strong> rapid change <strong>of</strong> technologies. Developments <strong>of</strong> new
products <strong>of</strong> ICT require information specialists to be knowledgeable on how to incorporate <strong>the</strong>
technologies and products in <strong>the</strong>ir services. Therefore, librarians should ensure that <strong>the</strong>y keep
abreast with technologies, systems, new forms <strong>of</strong> information, information media and information
sources. Alavi and Leidner (2001) stated in <strong>the</strong> literature review <strong>of</strong> knowledge management systems
that ICT serves a significant role in various knowledge processes such as knowledge creation,
storage, retrieval, transfer and application. A knowledge management technology such as
collaboration support is a good example <strong>of</strong> ICT that enables knowledge creation. According to Bhatt
et al (2005) collaboration support systems is an integrated information and communication
technologies that facilitate communication and connectivity among individuals in supporting
organisation collaboration during performance.
3.5 Transfer <strong>of</strong> knowledge
According to Goh (1998) learning from past failures and talking to o<strong>the</strong>r staff members regarding
successful practices or experiences are considered as informal networks <strong>of</strong> knowledge transfer. It is
also believed that having benchmarking activities will help <strong>the</strong> employees to continuously learn and
improve <strong>the</strong> process <strong>of</strong> management as well as <strong>the</strong> products and services. This may also help in
promoting <strong>the</strong> process <strong>of</strong> knowledge transfer. Human cognitive processes are limited to storing and
processing information inside <strong>the</strong> human brain and this information or knowledge can be easily
transferred from one person to ano<strong>the</strong>r, creating mobility and retention <strong>of</strong> knowledge and possibly an
accumulation <strong>of</strong> potential problems. Skills and acquisition become very valuable as <strong>the</strong>y help in
solving problems (Simon, 1957). The growth <strong>of</strong> teamwork learning and guidelines <strong>of</strong> handling future
problems can be promoted by knowledge sharing (Lim et al, 2006). Although solving problems can be
quite difficult, <strong>the</strong> sharing and exchanging <strong>of</strong> knowledge, ideas and experiences among individuals
from different departments or sections can help in enhancing organisational output (Barker and
Neailey, 1999; Senge, 1992). Alameida et al (2003) proposed that organisations should be able to
develop linkages to <strong>the</strong> sources <strong>of</strong> knowledge that can serve as conduits for knowledge transfer.
There are three important elements that create <strong>the</strong> conduits to <strong>the</strong> sources <strong>of</strong> knowledge. These are
alliances, mobility <strong>of</strong> people and appropriate informal networks.
3.6 Teamwork cooperation
A powerful working team can enhance <strong>the</strong> employee’s skills and knowledge in order to more
effectively bear problems as well as to develop innovative ideas for <strong>the</strong> organisation. Employees from
various ‘functional areas’ will be grouped toge<strong>the</strong>r to improve team’s spirit. In addition, <strong>the</strong>
environment <strong>of</strong> cross-functional teamwork helps in reducing <strong>the</strong> “stove-pipe syndrome” each time
when <strong>the</strong> employees are rotated inside <strong>the</strong> different teams as part <strong>of</strong> a deliberate career development
program and human resource management policy (Goh, 1998). General Linear Modelling (GLM)
promotes teamwork in learning within and/or out <strong>of</strong> organisation as it is in alignment with shared
vision, learning and open mindness (Lim et al, 2006). According to Easterby (1997) and Goh (1998)
research has shown that teamwork is negatively related to formalisation and hierarchies in an
organisation, but positively related to <strong>the</strong> diminishing boundaries between functions, informal
networking and dialogue (Nevis et al. 1995; Schein, 1993). Empirical viewpoint, teamwork or team
learning serves as strategies which help to enhance organisational performance (Tucker et al, 2002;
Jones et al, 2003).
3.7 Shared vision and mission
According to Senge et al (1994) shared vision is concerned about developing sense <strong>of</strong> commitment in
organisation by designing <strong>the</strong> future images <strong>of</strong> principle and ambition as a guide to be successful.
Therefore, determining <strong>the</strong> clarity <strong>of</strong> vision and mission in an organisation is important in order to
prevent inconsistencies <strong>of</strong> performance (Montouri, 2000; Goh, 2002; Goh and Richards, 1997;
Harvey, 1998; Hishamuddin et al, 2010). In order to promote knowledge sharing among employees,
employers should set up goals <strong>of</strong> achievements <strong>of</strong> each project as well as share <strong>the</strong> visions <strong>of</strong> <strong>the</strong>
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organisation. Consequently, <strong>the</strong> products and services provided are at <strong>the</strong> higher level and <strong>the</strong>
organisation business can expand (Lopez et al, 2005). Moreover, shared vision and mission can help
in generating an optimistic financial performance <strong>of</strong> <strong>the</strong> organisation, including sales and pr<strong>of</strong>its.
Shared vision is a well-accepted mission in library context. It helps in encouraging <strong>the</strong> librarians to
generate and contribute <strong>the</strong> aspiration in satisfying and fulfilling <strong>the</strong> information needs among <strong>the</strong>
users (Pearce and David, 1987; Calantone et al, 2002; Hishamuddin et al, 2010). Whilst Stacey
(1993) and Harvey (1998), stated that lack <strong>of</strong> clear and/or non-widely accepted organisation vision
and mission could lead to <strong>the</strong> weakness <strong>of</strong> cohesiveness and resistance toward successful strategy
implementations (Hamel, 1997; de Waal, 2007). Consequently, studies have shown that shared vision
and mission help in developing organisational performance as it is being measured in terms <strong>of</strong>
organisational competitiveness (Pearce and David, 1987).
3.8 Employees’ skills and competencies
Neefe (2001) stated that in order to maintain <strong>the</strong> working skills among members <strong>of</strong> staff in an
organisation, <strong>the</strong> shifting approach is applied. If employees, who have been located in <strong>the</strong> same
department for a certain period <strong>of</strong> time, fail to increase or develop <strong>the</strong>ir skills or competencies,
practising shifting work in all departments will generate <strong>the</strong> new capabilities, ideas as well as
improving <strong>the</strong> existing skills among members <strong>of</strong> staff in order to reach <strong>the</strong> organisation’s vision and
mission. Ga<strong>the</strong>ring and practising <strong>the</strong> skills and processing <strong>the</strong> input among employees provide a link
to information sources with <strong>the</strong> learning transfer. This consequently helps in individual’s view
exchange and promoting competencies in problem solving situations (Howard and Somerville, 2008).
4. Knowledge performance
Knowledge performance can be defined as <strong>the</strong> ability <strong>of</strong> individuals, teams and organisations to
understand what <strong>the</strong>y have learned (Selden, 1998). Knowledge performance can be measured ei<strong>the</strong>r
by looking at individual’s performance or <strong>the</strong> performance <strong>of</strong> <strong>the</strong> whole organisation. Marquardt
(1996), on <strong>the</strong> o<strong>the</strong>r hand, insisted traditions, culture, technology, operations, systems and
procedures <strong>of</strong> one organisation are always based on <strong>the</strong> knowledge and expertise it has. Knowledge
is sustainable and it has been divided into four subsystems; acquisition, creation, storage and
transfer. The management <strong>of</strong> knowledge is vital as it is <strong>the</strong> centre or <strong>the</strong> heart <strong>of</strong> organisational
learning. Marsick and Watkinson (1999) in <strong>the</strong>ir study mentioned that humans are <strong>the</strong> vital carriers or
agents <strong>of</strong> knowledge awareness or knowledge understanding. It has been agreed that an organisation
that is engaged in <strong>the</strong> pursuit <strong>of</strong> knowledge is always growing and developing. This growth or
development does not undermine any organisational capital; on <strong>the</strong> o<strong>the</strong>r hand it enhances <strong>the</strong>m.
Consequently, <strong>the</strong> existing culture <strong>of</strong> an organisation that puts knowledge development as a top
priority would be very much different to <strong>the</strong> organisational culture <strong>of</strong> one that focuses on short-term
competence and productivity.
Moreover, Tienne et al (2004) and Stinson et al (2006) added that leaders, who are responsible in
encouraging <strong>the</strong>ir members <strong>of</strong> staff to involve in knowledge acquisition and knowledge sharing, are
considered <strong>the</strong> role model <strong>of</strong> proactive-learning. Proactive learning enhances <strong>the</strong> organisational
performance as well as knowledge performance. In addition, combination <strong>of</strong> ‘cultural and structural’
approach to organisational learning as well as <strong>the</strong> ‘structural and procedural’ arrangements which are
<strong>the</strong> mechanism for learning, allow <strong>the</strong> organisation to collect, analyse, store, disseminate and
systematically use <strong>the</strong> relevant information for performance upgrading (Pooper and Lipshitz, 2000).
Organisational learning capabilities are expected to improve and enhance <strong>the</strong> organisational
performance. The large number <strong>of</strong> literatures examined <strong>the</strong> process, systems and factors that
facilitate <strong>the</strong> performance <strong>of</strong> <strong>the</strong> organisation. Most <strong>of</strong> <strong>the</strong> literatures are likely to be rigid, appear with
multiple formats and exist with an ideal set <strong>of</strong> learning environment (Marshall, Smith and Buxton,
2009).
5. Proposed research model
The research model, Organisational Learning Survey (OLS) Model, is adopted and modified from Goh
and Richards (1997) with revised edition by Neefe (2001). Previous study revealed that <strong>the</strong>re is a
positive relationship between organisational learning capability (OLC) elements and organisational
performance (Goh and Richards, 1997; Chiva et al, 2007; Hishamuddin, 2010). The tools focused on
systems thinking, organisational culture, leadership, Information Communication Technology (ICT),
transfer <strong>of</strong> knowledge, teamwork cooperation, shared mission and vision and employees’ skills and
competencies as well as knowledge performance among <strong>the</strong> librarians. The dependent variable
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indicates knowledge performance while <strong>the</strong> independent variables are identified by organisational
learning capabilities items. The model is illustrated below:
Figure 1: Proposed research model
6. Conclusion
Studies on organisational learning capabilities (OLC) have received a great deal <strong>of</strong> interest from
scholars and academics. OLC have been <strong>the</strong> subject <strong>of</strong> attention <strong>of</strong> research because <strong>of</strong> <strong>the</strong>ir role in
facilitating maintenance and adaptation <strong>of</strong> knowledge within an organisation. Indeed, organisational
learning capabilities and <strong>the</strong>ir dimensions can help members <strong>of</strong> library-staff in higher learning
institution libraries to understand <strong>the</strong> tasks <strong>of</strong> o<strong>the</strong>r members <strong>of</strong> staff from o<strong>the</strong>r departments. In
addition, focused learning and knowledge sharing among librarians help in experiential learning and
facilitate problem solving systematically. Besides, <strong>the</strong> elements <strong>of</strong> organisational learning capabilities
can also serve as <strong>the</strong> benchmarks to measure knowledge performance and levels <strong>of</strong> learning, not
only in <strong>the</strong> library but also in o<strong>the</strong>r industries ei<strong>the</strong>r nationally or internationally. Ano<strong>the</strong>r positive
impact is paving <strong>the</strong> path to greater performance leading to fur<strong>the</strong>r research in <strong>the</strong> library and
information science field. Organisational learning capabilities also help in sustaining commitment <strong>of</strong>
leadership and knowledge transfer among librarians. Apart from that, organisations that engage
organisational learning capability can successfully accomplish <strong>the</strong>ir management processes. Instead
<strong>of</strong> bridging <strong>the</strong> knowledge gap, <strong>the</strong> proposed model can be adapted, modified and implemented by
librarians, management <strong>of</strong> academic libraries as well as in o<strong>the</strong>r respective areas relating to <strong>the</strong>ir
specific work environments. Future research can expand this model to measure <strong>the</strong> skill improvement
<strong>of</strong> acquiring knowledge and enhancing <strong>the</strong> learning capabilities not only among librarians and library
staffs in <strong>the</strong> higher education institutions but also among information pr<strong>of</strong>essionals in o<strong>the</strong>r types <strong>of</strong>
information agencies such as archives, museums, art galleries and information centers.
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778

The Role <strong>of</strong> key Intangible Performance Indicators for
Organisational Success
Hee Song Ng 1 , Daisy Mui Hung Kee 1 and Mat<strong>the</strong>w Brannan 2
1 Universiti Sains Malaysia, Penang, Malaysia,
2 Keele Management School, Keele University, UK
nhs123_man10@student.usm.my
daisy@usm.my
m.brannan@mngt.keele.ac.uk
Abstract: This paper reviews <strong>the</strong> trend toward <strong>the</strong> increasing use Key Intangible Performance indicators (KIPIs)
as explanatory factors <strong>of</strong> organisational success. Recent research findings reveals a significant shift <strong>of</strong> emphasis
in terms <strong>of</strong> measuring key performance factors toward <strong>the</strong> measurement and quantification <strong>of</strong> intangible
performance measures as a way <strong>of</strong> acknowledging <strong>the</strong> potential <strong>of</strong> intangible resources to contribute to
organizational outcomes. The argument presented in this paper is that <strong>the</strong>re is a need for organisations to pay
attention to KIPIs (which measure intangible drivers) in order to generate a more complete picture <strong>of</strong>
organisations’ overall performance. Such KIPIs measurement will not only help organisations gauge whe<strong>the</strong>r
management and employees fulfil <strong>the</strong>ir potential and live up to <strong>the</strong>ir expectations, but also provides a resource to
overcome imperfections en route to higher organisational success. The development and deployment <strong>of</strong> KIPIs is
also likely to prove strategically significant for organizations to provide fur<strong>the</strong>r insights for operational excellence
and an impetus for continual improvement. From <strong>the</strong> available literature review, it is evident that <strong>the</strong>re are many
diverse KIPIs drivers which impact organisational success such, this papers identifies <strong>the</strong> key drivers that emerge
from a detailed consideration <strong>of</strong> <strong>the</strong> literature. Our meta analysis <strong>the</strong>n identifies what we consider to be four most
important intangible drivers, namely leadership, organisational innovation, image and reputation, and employee
satisfaction. Indeed, to move forward as successful organisations, forward thinking organisations require strong
leadership, effective innovation, positive corporate image and reputation, and high employee satisfaction. The
paper <strong>the</strong>n outlines an operational model for KIPIs assessment. We conclude by arguing that <strong>the</strong> relentless
pursuit <strong>of</strong> operational excellence in such areas will go a long way to streng<strong>the</strong>n <strong>the</strong> organisations to meet future
challenges <strong>of</strong> customer expectations amidst an uncertain and dynamic global economy.
Keywords: key intangible performance indicators, leadership, innovation, image and reputation, satisfaction,
organisational success
1. Introduction
The paper reviews <strong>the</strong> concept <strong>of</strong> Key Intangible Performance Indicators (KIPIs) and <strong>the</strong> trend toward
<strong>the</strong>ir growing utilisation as an explanatory factor in understanding and accounting for organisational
success. The literature on Key Performance Indicators(KPIs) is well established, KPIs work to
measure ‘hard’ or tangible factors; in contrast <strong>the</strong> notion <strong>of</strong> KIPIs is designed to account for ‘s<strong>of</strong>t’ or
intangible factors (Williams, 1998, Lönnqvist, 2002) that still might be relevant to organization
success. Until recently, organisational analysis has tended to reply on KPIs to predict organisational
success. Increasingly, however, it is becoming clear that such hard-and-fast KPIs tell only part <strong>of</strong> <strong>the</strong>
story, and a fuller understanding <strong>of</strong> key success factors can be gained through a consideration <strong>of</strong> both
KPIs and KIPIs, organisations <strong>the</strong>refore need to look toward KIPIs to explain why companies fail or
success in business.
The collapse <strong>of</strong> world-leading organisations such as Enron and WorldCom, has drawn increasing
attention to <strong>the</strong> role that intangible factors play in organisational outcomes, in driving values, toge<strong>the</strong>r
with emphasising <strong>the</strong> need for transparency and accountability (Baron, 2003). Similarly, Lehman
Bro<strong>the</strong>rs were considered ‘too big to fail’ but collapsed under <strong>the</strong> weight <strong>of</strong> heavy losses (Lockyer,
2008). In contrast, Wickham (Jun 08, 2010) highlights <strong>the</strong> huge success <strong>of</strong> Apple Inc. and pays
particular attention to <strong>the</strong> strong leadership <strong>of</strong> Steve Jobs as Apple as has become <strong>the</strong> most valuable
technology US$30 billion company with only around 30 innovative product lines including iPad,
iPhone, iPod, iTunes and Mac. In Malaysia, AirAsia is an exemplar <strong>of</strong> corporate success by being one
<strong>of</strong> <strong>the</strong> biggest and most celebrated low-cost couriers in <strong>the</strong> Asia-Pacific. Under <strong>the</strong> charismatic
leadership <strong>of</strong> Tony Fernandes, AirAsia has successfully restructured resulting in phenomenal growth
and success (Shuk-Ching Poon and Waring, 2010, Lawton and Doh, 2010, Ricart and Wang, 2005,
Ko and Woo, 2009). Indeed, in <strong>the</strong> cases outlined above intangible factors like leadership,
relationships with employees, customers, suppliers, and o<strong>the</strong>r stakeholders have significant effect on
organisational success (Atkinson et al., 1997).
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At present, <strong>the</strong>re is a significant shift <strong>of</strong> emphasis from developing tangible to intangible performance
factors in an attempt to fully realise <strong>the</strong> tremendous potential <strong>of</strong> an organisation’s intangible resources
(Hall, 1992, Zigan and Zeglat, 2010) and <strong>the</strong> effective management <strong>of</strong> intangible capabilities is clearly
crucial for achieving competitive advantage (Turner, 2007). In new business ventures, <strong>the</strong>re is an
increasing tendency to include intangible factors into business plans in order to fully assess pr<strong>of</strong>itable
potential (Diaz De Leo and Guild, 2003). Most organisations now leverage KIPIs in an efforts to build
core competencies and lay a formable foundations for future success(Prahalad and Hamel, 1990).
2. Drawbacks <strong>of</strong> balanced scorecard and KPIs
In developing specific KPIs, organisations tend to deploy a ‘one-size-fits-all’ approach. One <strong>of</strong> <strong>the</strong>
difficulties <strong>of</strong> this approach is that it tends to result in problems in terms <strong>of</strong> achieving bottom-line
results; every organisation is unique with different level <strong>of</strong> competencies and <strong>the</strong>re is no single way to
design a performance management system (Jones, 1997) that fits every organisation perfectly. There
is also a lack <strong>of</strong> consensus as to what a Balanced Scorecard’s KPIs should be, and many
organisations develop a Balanced Scorecard without first developing a strategy map. Indeed, in spite
<strong>of</strong> <strong>the</strong> wide usage <strong>of</strong> <strong>the</strong> Balance Scorecard approach, it has been shown to be inadequate in various
circumstances and across differing firm types (Maltz et al., 2003). Balanced Scorecard’s KPIs have
failed because non-financial variables may be incorrectly identified as <strong>the</strong> primary drivers <strong>of</strong> future
stakeholder satisfaction. Specific metrics are <strong>of</strong>ten poorly defined and improvement goals are
negotiated ra<strong>the</strong>r than based on stakeholder requirements (Schneiderman, 1999). Spitzer (2007)
observes that intangibles such as partnerships, suppliers, collaborations, skills, knowledge,
innovation, patents and o<strong>the</strong>r intellectual property, leadership, reputation, and culture, are given little
attention in <strong>the</strong> ‘Learning and Growth’ perspective <strong>of</strong> Kaplan and Norton’s Balanced Scorecards and
strategy maps.
When organisations grow in size, and customer demands become more sophisticated, non-financial
performance tends to become significant (Pamela Cohen and Jonathan, 2001). One argument that
explains this is that that intangible measures are critical drivers to <strong>the</strong> overall organisational success
and <strong>the</strong>refore should be reported as part <strong>of</strong> <strong>the</strong> overall evaluation (Roulstone and Phillips, 2008).
Indeed, more organisations have understood <strong>the</strong> importance <strong>of</strong> intangibles as performance drivers
that ensure <strong>the</strong> transformation <strong>of</strong> measurement results into action (Johanson et al., 2001). It is crucial
<strong>the</strong>refore to develop KIPIs so that such Intangible value driver indicators can be used to guide
management decision-making and strategic learning (Marr, 2007).
3. Literature review
A careful analysis <strong>of</strong> <strong>the</strong> literature relating to intangible performance indicates a wide variety <strong>of</strong>
measures. An overview <strong>of</strong> <strong>the</strong> key studies is provided in <strong>the</strong> table below. The following authors
highlight diverse key tangible and intangible performance indicators to drive future organisational
success and performance excellence:
Leadership, management credibility, innovativeness, brand
Funk (2003)
identify, and ability to attract talents employees.
Leadership. Salahuddin (2010)
Leadership, strategic planning, customer focus, markets;
DeJong (2009)
measurement, analysis, and knowledge management;
workforce focus, process management as listed in <strong>the</strong> Baldrige
award.
Management capabilities, innovation, quality, customer
Cohen and Low (2001)
relations, alliances, technology, brand value, employee
relations, environmental and community.
Innovation, quality, productivity, and customer satisfaction. Buckmaster (2000)
Innovation, quality, productivity, and customer satisfaction. Kelly (2007)
Innovation, productivity, customer satisfaction, and operating
Ndlovu (2010)
efficiency.
Innovation, health and safety, quality <strong>of</strong> working conditions, von Geiblerm, Liedtke, Wallbaum & Schaller
impact on employment, education and training, knowledge
(2006).
management, customer acceptance and societal product
benefits, and social dialogue.
Innovation, investor, employee, supplier, social and
Kumar.(2008)
environmental, internal processes, and organisational learning.
Innovation, employment involvement, Customer services, Tze San and Boon Heng (2009).
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Hee Song Ng et al.
market performance, goal achievement and operations
performance.
Innovation, employee satisfaction, customer satisfaction and
quality.
Employee satisfaction, customer satisfaction, productivity,
quality, market growth, and control effectiveness.
Brand commitment, customer satisfaction, customer loyalty
index, quality, training, and research and development,
customer, intangible assets and intellectual capital.
Brand image, employee satisfaction, competencies, brand
image, trust, corporate reputation and customer loyalty.
Leadership style, organisational size (assets) and size <strong>of</strong>
administrative component on organisation efficiency.
Customer and employee satisfaction, quality, market share,
productivity, and innovation.
Enlightened HR practices, charismatic leadership and
management innovation.
Stakeholder, strategies, processes, capabilities and
stakeholder contribution based on performance prism.
Customer service, satisfaction and quality/ process-related,
time/ agility, innovation, demographics, and supplier
measures.
Eleven intangible assets for organisational success are talent,
speed, shared mind-set and coherent brand identity,
accountability, collaboration, learning, leadership, customer
connectivity, strategic unity, innovation, and efficiency.
Customer capital (namely brands, customer relations,
company name/image, structure <strong>of</strong> sales & distribution, cooperation,
franchise partnerships), Human capital (namely
technological know-how, education, process know-how,
experience, innovations, adaptability, corporate
culture),Innovation capital (namely patents copyrights,
technological know-how, brands protected labels, licenses),
and Process& structural capital (namely information systems,
corporate culture, networks, locations, investor relations,
process know-how.
Relationships, Knowledge, Leadership and Communication,
Culture and Values, Reputation and Trust, Skills and
Competencies, and Processes and Systems for success.
Latent capabilities, leadership, workforce calibre,
organisational assets (including networks), market or
reputational opportunities, innovation/ R&D in-process and
corporate renewal.
Highlight that <strong>the</strong> Italian Associate <strong>of</strong> Financial Analysis (AIAF)
publishes information on intangibles into six dimensions i.e.
strategy, customer and market, human resources,
organisation, innovation and intellectual property rights, and
corporate governance.
Ittner and Larcker (1998)
Milgate (2004)
Crosby and Johnson (2002)
Marr (2008)
Becker and Staffod (1967)
Said (2003)
Birkinshaw (2007)
Neely, Adams and Crowe (2001)
Frigo (2002)
Ulrich (2004)
Gun<strong>the</strong>r, Beyer & Menninger (2005)
The Department <strong>of</strong> Trade and Industry (DTI)
(May 2001)
Eustace (2003)
Zambon and Bergamini (2007)
After a review <strong>of</strong> <strong>the</strong> above literature, <strong>the</strong> results show that <strong>the</strong>re are many diverse intangible
performance drivers which impact organisational success such as leadership, management
capabilities, creditability, innovation management, technology and research and development,
intellectual property rights, workforce innovation, employee satisfaction, employee involvement and
relations, customer service satisfaction, customer loyalty and alliance, market opportunities and
network, communication, reputation and trust, brand values, identity, image, and commitment, HR
practices, training and education, employee talent and calibre, organisational learning, renewal
capability, culture and values, health and safety, quality <strong>of</strong> working conditions, society benefits, social
and environmental, intangible assets and intellectual capital, knowledge management, strategy and
strategic planning and corporate governance. Based on <strong>the</strong> frequencies <strong>of</strong> <strong>the</strong> literature and authority
<strong>of</strong> <strong>the</strong> authors, and a meta-analysis <strong>of</strong> <strong>the</strong> literature, this research proposes to that <strong>the</strong> most important
and reoccurring <strong>the</strong>mes are: leadership, organisational innovation, company image and reputation,
and employee satisfaction. This paper <strong>the</strong>refore now moves to consider <strong>the</strong>se key factors as <strong>the</strong> key
intangible factors that drive organisational success and <strong>the</strong> paper will now consider <strong>the</strong>se factors in
more detail. These variables will be fur<strong>the</strong>r discussed and evaluated in <strong>the</strong> following section.
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4. Leadership
Hee Song Ng et al.
The success <strong>of</strong> any organisation relies upon having <strong>the</strong> right resources to achieve <strong>the</strong> desired goals
and one <strong>of</strong> <strong>the</strong> important resources is <strong>the</strong> workforce that makes up <strong>the</strong> organisation. Having <strong>the</strong> right
leaders to lead and mobilise <strong>the</strong> organisation and its workforce in <strong>the</strong> right direction and manner can
make or break <strong>the</strong> performance <strong>of</strong> an organisation. Leadership is critical in <strong>the</strong> development <strong>of</strong> such a
workforce since various factors such as motivation, trust, support and guidance are all known to be
crucial facets <strong>of</strong> leadership. Moreover leaders help to encourage innovation at <strong>the</strong> individual, and
subsequently at team-levels, and <strong>the</strong>refore it is clear that leadership must be viewed as one <strong>of</strong> <strong>the</strong> key
factors to organisational success.
Organisations need leaders who have ability to inspire confidence, to motivate, and to convince
o<strong>the</strong>rs to follow (Mansbridge, 2004). Organisations need strong leaders who can build winning teams
and <strong>the</strong> most productive, innovative teams are consistently led by leaders who are both task, and
relationship, oriented; <strong>the</strong>se leaders can change <strong>the</strong>ir style in contingency to environment (Gratton
and Erickson, 2007), and adapt ability and resilience are key elements <strong>of</strong> successful leadership style.
The success <strong>of</strong> organisations such as Google and Facebook reveals that leadership can bring about
enormous gains for <strong>the</strong> organisations in leveraging <strong>the</strong> creativity and passion <strong>of</strong> <strong>the</strong> people to perform
better. Wickham (Jun 08, 2010) highlights that Apple’s achievements are closely associated with
Steve Jobs’ strong leadership, business ideas and innovation in managing corporate direction.
Leadership is considered to be <strong>of</strong> greater importance than management as <strong>the</strong> current business world
become more competitive and more volatile due to changes in technologies, international competition
and deregulation <strong>of</strong> markets (Kotter, 2001). In summary organisations need to align business strategy
with company goals, revise KIPIs continuously by considering key intangible factors such as
leadership in order to embrace and enable change to face competition.
5. Organisational innovation
Besides leadership, innovative behaviour is also heavily implicated in <strong>the</strong> success <strong>of</strong> <strong>the</strong> organisation.
Innovation is necessary to ensure that <strong>the</strong> people and organisations are able to continually adapt to
<strong>the</strong> dynamic changes that occur in environments. Eccles (1991) for example argues that innovation is
a leading factors in explaining business performance; innovation however is seldom found in financial
data and quantitative metrics. Sustaining innovation is crucial for a company's long-term success
(Cohn et al., 2008) and this realisation is meaning that innovation is slowly making its way back onto
<strong>the</strong> ‘to-do’ lists <strong>of</strong> corporate leaders(Prahalad and Mashelkar, 2010). In <strong>the</strong> Cap Gemini Ernst and
Young ‘Value Creation’ index for non-financial performance, innovation is considered a key to value
creation. In <strong>the</strong> digital media era, <strong>the</strong> widespread adoption <strong>of</strong> social media such as Facebook, Twitter
and YouTube has posed both major challenges and opportunities to business leaders. Web 2.0has
<strong>the</strong> potential to become an significantly revenue-generating stream, especially through innovative viral
marketing, if properly harnessed (McColl and Gerber, 2010). Business leaders need new business
models to capitalise on such new social media capabilities and herein lay one possible example <strong>of</strong> <strong>the</strong>
way in which innovative organizational practices will continue to have a massive impact on <strong>the</strong> bottom
line.
Multinational corporations (MNCs) like Toyota and Nokia thrive on flexible management strategies
that have traditionally fostered both ‘hard’ and ‘s<strong>of</strong>t’ innovation (Doz and Kosonen, 2008, Takeuchi et
al., 2008). Dell for example is well know for <strong>the</strong> application <strong>of</strong> an innovative approaches to <strong>the</strong>
management <strong>of</strong> ‘just-in-time’ inventory processes to improve pr<strong>of</strong>itability (Byrnes, 2003). The
European Foundation for Quality Management (EFQM) Excellence Model deploys innovation and
learning as a way to challenge <strong>the</strong> status quo and effect change for improved results (Simon et al.,
2004). In <strong>the</strong> Malaysian context, <strong>the</strong> Malaysian government has setup <strong>the</strong> Malaysian Innovation
Agency, and Special Innovation Unit to promote and coordinate <strong>the</strong> commercialisation <strong>of</strong> innovation
ideas and activities for economic growth, especially <strong>the</strong> development and expansion <strong>of</strong> small and
medium-sized enterprises both at domestic and global levels.
6. Image and reputation
We argue that <strong>the</strong> third significant intangible factor is company image and reputation. Organisations
need to position <strong>the</strong>ir image as pr<strong>of</strong>essional and striving for perfection to consistently win brand
loyalty. Dowling (2002) reveals that corporate reputations are a valuable strategic asset for every
company. Good reputations have been shown to help firms attain and sustain superior financial
performance in comparison to competitors within <strong>the</strong>ir industry. Helm (2007) suggests that <strong>the</strong> role <strong>of</strong>
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corporate reputation in determining investor satisfaction and loyalty is highly significant. In <strong>the</strong> online
Business Strategy Games (BSG), image rating is factored into <strong>the</strong> simulated games. O<strong>the</strong>r
performance variables are earning per share, return on equity, credit rating and stock price that BSG
companies must achieve and sustain to win <strong>the</strong> competition in <strong>the</strong> global marketplace (Thompson and
Stappenbeck, 1992). The example <strong>of</strong>, Pelikan <strong>International</strong> Corp, <strong>the</strong> stationery maker that secured
<strong>the</strong> right to use <strong>the</strong> ‘Porsche Design’ brand in <strong>the</strong>ir product provides a useful example. This certainly
enhanced <strong>the</strong> image <strong>of</strong> Pelikan (2010). Moreover, company image and reputation are also important
determinants in, influencing successful recovery, particularly in a product harm or crisis
situation(Siomkos and Shrivastava, 1993). The general public witnessed a diminishing <strong>of</strong> Japan
Incorporated’s image with massive recalls <strong>of</strong> Toyota cars over faulty gas pedals in <strong>the</strong> U.S. and
Europe and Japan Airlines, a once proud flag carrier, filed for bankruptcy, saddled with billion in debt.
(The Star Online, 2010).
7. Employee satisfaction
We argue that employee satisfaction is <strong>the</strong> fourth crucial intangible factor for organisational success.
Google for example is consistently ranking within <strong>the</strong> 5 five, <strong>of</strong> <strong>the</strong> fortune 500 companies to work for.
This legacy <strong>of</strong> employee satisfaction from 2008 to 2011 is largely due to its organisational culture <strong>of</strong>
perks, fun, conducive working conditions, appreciation, share options, and reward for its employees.
Google actively look for intellect, dedication and innovation capabilities in an individual while recruiting
and <strong>of</strong>fering creative opportunities for employees to excel in <strong>the</strong>ir respective field. As a result, highly
satisfied employees are aligned with management goals to drive <strong>the</strong> value chain and optimise
company performance (Walters, 2009, Benady, 2008).
In <strong>the</strong>ir book “Cracking <strong>the</strong> Value Code”, Boulton, Likert and Samek (2000) find that 85 percent <strong>of</strong>
executives recognised <strong>the</strong> importance <strong>of</strong> investment in intangibles like employees and customers but
yet, less than 35 percent <strong>of</strong> executives acted accordingly. Therefore, it is considered time for
managers to take seriously <strong>the</strong> <strong>of</strong>ten heard, yet frequently ignored, adage that ‘people are our most
important asset’ (Pfeffer and Veiga, 1999). The most successful organisations tend to adopt
‘enlightened’ HR practices (Birkinshaw, 2007) as this enables organisations to attract, train, develop,
and retain talented employees because it is <strong>the</strong> sheer human intellect and willpower that make
organisations flourish (López, 2003). From this perspective continuity in leadership and employee
retentions is important to assure for growth, corporate governance, organisational memory,
stakeholder relationships and organisational development (Reid and Gilmour, 2009). Organisations
may <strong>the</strong>refore actively consider ways in which <strong>the</strong>y can satisfactorily equip employees with key
competencies and skills required for high performance. Forward-thinking companies know that
grooming <strong>the</strong> next generation <strong>of</strong> workforce is a vital part in ensuring roaring business success in years
to come (Minter, 2010).
8. Organisational success
Dynamic organisations are concerned with long term strategic plans for success in terms <strong>of</strong>
competitiveness and pr<strong>of</strong>itability (Fitzgerald et al., 1991). Maltz (2003) for example states that
measuring organisational success is a continuous challenge due to <strong>the</strong> selection <strong>of</strong> ei<strong>the</strong>r traditional
financial measures and non-traditional financial measures and proposes five major success
dimensions i.e. financial, market, process, people, and future to assess organisational success
depending on industry type and industries. In addition, Friedman (1988) proposes a framework <strong>of</strong>
organisational success which encompasses value added marketing concepts, good management
approaches and organisational ethics to satisfy <strong>the</strong> needs and wants <strong>of</strong> <strong>the</strong> various organisational
stakeholders and, in <strong>the</strong> long run, ensure <strong>the</strong> satisfaction <strong>of</strong> <strong>the</strong> needs <strong>of</strong> <strong>the</strong> organisation itself.
Moreover, Flamholtz and Aksehirli (2000) find that <strong>the</strong>re is a statistically significant relationship
between <strong>the</strong> development <strong>of</strong> <strong>the</strong> six critical success factors i.e. markets, product and services,
resource management, operations systems, management systems and corporate culture, and overall
financial success <strong>of</strong> organisations. Vaughan (1999) deploys business performance as a variable to
measure business success. Among <strong>the</strong> questions in <strong>the</strong> questionnaire are concerned changes in
cash flow, gross pr<strong>of</strong>it, sales growth, return on sales, market share, return on investment and return
on equity.
9. Theoretical framework
Based on <strong>the</strong> literature review, we invoke and integrate concepts to develop and test a new model <strong>of</strong>
organisational success. According to our model (depicted in Figure 1), <strong>the</strong> main Key Intangible
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Hee Song Ng et al.
Performance Indicators (KIPIs) such as leadership, organisational innovation, image and reputation,
and employee satisfaction are associated with <strong>the</strong> future organisational success. The model also
specifies that firm size and year in business will moderate this relationship. The model that we
propose contributes to management <strong>the</strong>ory by developing and testing a model <strong>of</strong> organisational
success that incorporates intangibles factors that have been identified in <strong>the</strong> literature review. In
addition, <strong>the</strong> usefulness <strong>of</strong> using KIPIs concepts to predict organisational success and better
organisational performance is demonstrated in <strong>the</strong> paper.
Leadership
Organisational
Image and Reputation
Employee Satisfaction
Figure 1: Hypo<strong>the</strong>sised model
10. Discussion
Firm Size and Year in Business
Organisational Success
As our arguments suggests, <strong>the</strong>re are a lot <strong>of</strong> sustainable value creation factors which are suggested
as panaceas to address some <strong>of</strong> <strong>the</strong> weakness <strong>of</strong> <strong>the</strong> traditional financial measures, streng<strong>the</strong>n
customer performance and also to accelerate business growth. Organisations are increasingly
focusing on <strong>the</strong> importance <strong>of</strong> KIPIs that really drive <strong>the</strong> performance and competitiveness.
Organisations are increasingly placing emphasis on non-financial measures and intangible factors as
drivers <strong>of</strong> organisational performance and value creation. Yet despite this, it is well known that most
organisations still focus <strong>the</strong>ir attention on <strong>the</strong> tangible and financial performance to monitor
organisation performance. And <strong>the</strong> key issues <strong>of</strong> performance centre on effectiveness, efficiency,
relevance that organisations need to improve its performance, which is an integral part <strong>of</strong>
management process.
<strong>International</strong> institutions like European Commission (EC), Organisation for Economic Cooperation
Development (OECD), United Nations and <strong>the</strong> Brooking Institute are promoting <strong>the</strong> role <strong>of</strong> intangibles
in organisational success and wealth creation (Zambon and Marzo, 2007). The preliminary results <strong>of</strong>
<strong>the</strong> Policy making, Reporting and measuring, Intangibles, Skills development and Management
(PRISM) research initiative finds that <strong>the</strong>re is a clear shift from tangible to intangible factors in order to
create, maintain or invade monopolies founded on intangibles (Eustace, 2003).
In Malaysian context, Malaysia Government is committed to expanding international business, and is
concerned with trend, as indicated in <strong>the</strong> global standing in Ernst & Young globalisation index, where
Malaysia improves its ranking from 33 rd in 2009 to 27 th 2010 along with global emerging economies
(The Star Online, 2011). Malaysian government through Ministry <strong>of</strong> <strong>International</strong> Trade and Industries
(MITI) spares no efforts to fur<strong>the</strong>r improve its ranking as a way to boost investor confidence and
attract foreign direct investment. The <strong>International</strong> Institute for Management Development’s World
Competitiveness Yearbook, 2010 ranked Malaysia at 10th place compared with 1<strong>8th</strong> in 2009. In <strong>the</strong>
2009 Global Competitiveness Report and Global Innovation Index, Malaysia was ranked 24th and
2<strong>8th</strong> place respectively (Madinah, 2010). By determining key KIPIs drivers, organisation can
concentrate <strong>the</strong> improvement initiatives on intangible areas so that organisations can enhance core
competence and core products to face <strong>the</strong> challenges <strong>of</strong> <strong>the</strong> globalisation (Prahalad and Hamel,
1990). It is imperative for organisations to identify, develop and apply KIPIs to boost <strong>the</strong>ir
effectiveness through performance measurement. In <strong>the</strong> public sector, <strong>the</strong> Government <strong>of</strong> Malaysia is
remodelling its economy through <strong>the</strong> New Economic Model with Government Transformation
Program/ Economic Transformation Programme roadmap to become a high income and innovationled
economy by 2020.
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11. Conclusion
Hee Song Ng et al.
In a significantly changed business environment, every organisation needs to think differently and
transform itself into a highly competitive and vibrant organisation ready to face ever-increasing
business competition. Dynamic organisations focus both on KIPIs and also KPIs as drivers to achieve
excellence in <strong>the</strong> overall performance. With such a seamless integration <strong>of</strong> all drivers, organisations
will have better knowledge and control to effectively and efficiently manage organisations via
improvement, thus making possible sustainable organisational success. It is, <strong>the</strong>refore, essential in
our view that organisations identify and leverage <strong>the</strong> right KIPIs drivers especially leadership,
organisational innovation, image and reputation and employee satisfaction to realise <strong>the</strong> full potentials
<strong>of</strong> intangibles. Going forward, organisations should continue to develop core competence, stretch
resources, innovate new ways <strong>of</strong> doing things, engage highly satisfied and motivated workforce to realign
common goals for organisational success in today’s challenging globalised economy.
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787

Intellectual Capital Efficiency, Innovation Capital and
Performance in Malaysian Technology Firm’s
Azlina Rahim 1 , Ruhaya Atan 2 and Amrizah Kamaluddin 2
1
Universiti Teknologi MARA, Kampus Bandaraya Melaka, Malaysia
2
Universiti Teknologi MARA, Selangor, Malaysia
azlina@bdrmelaka.uitm.edu.my
ruhaya@salam.uitm.edu.my
amrizah@salam.uitm.edu.my
Abstract: In <strong>the</strong> era <strong>of</strong> knowledge-based economy, intellectual capital has been considered as an important
factor for <strong>the</strong> competitiveness <strong>of</strong> many companies. Previous studies have proved that intellectual capital plays an
important role in creating corporate sustainable competitive advantages. Intellectual capital which consists <strong>of</strong> a
set <strong>of</strong> intangibles drives <strong>the</strong> organizational performance and value creation. Therefore, it is important to
understand whe<strong>the</strong>r <strong>the</strong> resource is being efficiently utilized by <strong>the</strong> companies to <strong>the</strong>ir advantage, especially in
creating <strong>the</strong> value over time. The purpose <strong>of</strong> this study is to empirically examine <strong>the</strong> relationship between
intellectual capital efficiency and its components namely human capital efficiency, capital employed efficiency
and structural capital efficiency. Value Added Intellectual Coefficient called VAIC TM developed by Ante Pulic will
be used to measure <strong>the</strong> intellectual capital efficiency. This study also investigates <strong>the</strong> moderating effect <strong>of</strong>
innovation capital on <strong>the</strong> intellectual capital efficiency and firms’ performance. Using <strong>the</strong> accounting data, it
reviews <strong>the</strong> annual reports <strong>of</strong> all technology companies listed under Main Market and Ace Market <strong>of</strong> Bursa
Malaysia in year 2009.Due to <strong>the</strong> mix results in previous studies, it encourages <strong>the</strong> researchers to conduct such
study and conclude <strong>the</strong>se relationships. Correlation and regression analysis have been conducted on <strong>the</strong>
collected data. The results indicate that intellectual capital efficiency has significant and positive relationships with
firm’s performance measured by Return on Assets (ROA). The results will extend <strong>the</strong> understanding <strong>of</strong> <strong>the</strong> role <strong>of</strong>
intellectual capital efficiency and innovation capital in enhancing <strong>the</strong> performance <strong>of</strong> companies in <strong>the</strong> developing
countries. Additionally, <strong>the</strong> findings from this study may serve as a useful input for companies, investors, scholars
and managers to better understand <strong>the</strong> implication <strong>of</strong> intellectual capital efficiency and innovation capital to <strong>the</strong>
firm’s performance. As a result, it will enhance <strong>the</strong> concept <strong>of</strong> intellectual capital efficiency in emerging
economies such as Malaysia.
Keywords: intellectual capital efficiency, innovation capital, VAIC TM , firm performance, Malaysia
1. Introduction
Intellectual capital has been defined and classified in several ways by several researchers since <strong>the</strong>
concept gained importance. Itami (1987), <strong>the</strong> pioneers, who published works on intellectual capital,
defined intellectual capital as intangible assets which include particular technology, customer
information, brand name, reputation and corporate culture that are invaluable to a firm’s competitive
power. Ano<strong>the</strong>r definition was given by Edvinsson and Malone (1997), where from <strong>the</strong>ir perspective
intellectual capital includes human capital and structural capital wrapped up in customers, processes,
databases, brands and systems.
In recent times, researchers have been trying to define a feasible and reliable path to measure
intangible assets and intellectual capital. Several models and link between intellectual capital and
business performance have been developed. According to Seetharaman and Saravanan (2002) <strong>the</strong>re
are four schools <strong>of</strong> thought for intellectual capital valuation such as cost, share, cash flow and market
orientation. However, according to Mavridis and Kyrmizoglou (2005) only two groups exist.
One group asks for costs or expenses (process oriented) and <strong>the</strong> o<strong>the</strong>r for pr<strong>of</strong>it or investment returns
and its driver (value oriented). Thus, <strong>the</strong> main research approaches for intellectual capital
measurement also follow <strong>the</strong>se two main orientations. The cost group <strong>of</strong> researchers tries to capture
<strong>the</strong> intellectual capital essence through <strong>the</strong> difference between market and book value. Ano<strong>the</strong>r
promising approach – related to <strong>the</strong> second value group which has been develop by <strong>the</strong> Australian
Intellectual Capital Research Center (AICRS) named Value Added Intellectual Capital (VAIC TM ).
The Value Added Intellectual Coefficient (VAIC TM ) has been introduced by Ante Pulic which can be
used to measure <strong>the</strong> efficiency <strong>of</strong> intellectual capital within a company. The introduction <strong>of</strong> <strong>the</strong>se
monetary intellectual capital measurement methods provides new opportunities for companies and
<strong>the</strong>ir stakeholders. This is because it provides a concrete basis for comparing <strong>the</strong> intellectual capital <strong>of</strong>
different companies. (Kujansivu and Lonnqvist, 2005).
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Azlina Rahim et al.
Even though <strong>the</strong> term intellectual capital is widely used in recent times by <strong>the</strong> research community in
<strong>the</strong> developed countries, <strong>the</strong>re have been very few studies that have used emerging economies for
evaluating <strong>the</strong> implications <strong>of</strong> intellectual capital for <strong>the</strong> industries. Therefore, it becomes necessary to
understand whe<strong>the</strong>r this resource is being efficiently utilized by <strong>the</strong> industries in <strong>the</strong> emerging
economy to <strong>the</strong>ir advantage in creating value over time. (Kamath, 2007).
The aim <strong>of</strong> this study is to measure <strong>the</strong> utilization <strong>of</strong> intellectual capital efficiency in Malaysian
technology companies. This paper investigates <strong>the</strong> relationship between intellectual capital efficiency
and firm’s performance. This paper also investigates <strong>the</strong> moderating effect <strong>of</strong> innovation capital on <strong>the</strong>
intellectual capital efficiency and firms’ performance.
This paper differs from o<strong>the</strong>r Malaysian studies since it uses a sample <strong>of</strong> specific industry i.e.
technology industry. Therefore, it contributes in <strong>the</strong> selection <strong>of</strong> sample size. Fur<strong>the</strong>rmore, <strong>the</strong> study
also investigates <strong>the</strong> moderating effect <strong>of</strong> innovation capital on <strong>the</strong> intellectual capital efficiency and
firms’ performance.
The remainder <strong>of</strong> this article is structured in <strong>the</strong> following manner. The next section reviews <strong>the</strong>
empirical background <strong>of</strong> <strong>the</strong> issue addressed in this study, followed by data and methodology. Then,
<strong>the</strong> results <strong>of</strong> <strong>the</strong> study. The final section presents <strong>the</strong> conclusion and implications <strong>of</strong> <strong>the</strong> study.
2. Literature review
2.1 Intellectual capital efficiency
Various methods have been developed to measure <strong>the</strong> valuation <strong>of</strong> intellectual capital, ranging from
<strong>the</strong> traditional Tobin’s Q method to <strong>the</strong> Balance Scorecard approach (Kaplan and Norton, 1996),
Intangible Asset Score Sheet (Sveiby, 1997) and <strong>the</strong> latest being <strong>the</strong> Value Added Intellectual
Coefficient (VAIC TM ), by Pulic (1998). Even though <strong>the</strong>re are several measurement methodologies,
<strong>the</strong> most suitable method to measure <strong>the</strong> intellectual capital efficiency and relate it to <strong>the</strong> value <strong>of</strong> <strong>the</strong>
organization is VAIC TM created by Pulic and classified under ROA group method. (Jurczak, 2008).
The introduction <strong>of</strong> <strong>the</strong>se monetary intellectual capital measurement methods provides new
opportunities for companies and <strong>the</strong>ir stakeholders. This is because it provides a concrete basis for
comparing <strong>the</strong> intellectual capital <strong>of</strong> different companies. (Kujansivu and Lonnqvist, 2007).The main
logic for using VAIC TM as a tool for performance measurement is as follows: (Chan, 2009; Ghosh and
Mondal, 2009; Kamath, 2007; Chen et al, 2005)
Intellectual potential is <strong>the</strong> most important resource <strong>of</strong> corporate success, especially in <strong>the</strong>
knowledge economy;
Raising <strong>the</strong> efficiency <strong>of</strong> intellectual potential is <strong>the</strong> simplest, cheapest and most secure way to
ensure sustainable business success;
VAIC TM has proved its suitability as a tool for <strong>the</strong> measurement <strong>of</strong> intellectual capital
VAIC TM is a tool that measures <strong>the</strong> efficiency <strong>of</strong> <strong>the</strong> allocation <strong>of</strong> <strong>the</strong> firms’ resources; using three
important components namely <strong>the</strong> Capital Employed Efficiency (CEE) – indicator <strong>of</strong> VA efficiency <strong>of</strong>
capital employed, <strong>the</strong> Human Capital Efficiency (HCE) – indicator <strong>of</strong> VA efficiency <strong>of</strong> human capital,
and <strong>the</strong> Structural Capital Efficiency (SCE) – <strong>the</strong> indicator <strong>of</strong> VA efficiency <strong>of</strong> structural capital. VAIC TM
is <strong>the</strong> sum <strong>of</strong> <strong>the</strong> three measures.
The main ideas <strong>of</strong> <strong>the</strong> VAIC TM concept conclude that <strong>the</strong> human and knowledge potential is
responsible for <strong>the</strong> success and <strong>the</strong> performance <strong>of</strong> any firm. VAIC TM measures <strong>the</strong> total value
creation efficiency in <strong>the</strong> company. Therefore, <strong>the</strong> intellectual capital efficiency describes <strong>the</strong> efficient
use <strong>of</strong> intellectual capital within a company. The better a company’s resources are utilized, <strong>the</strong> higher
<strong>the</strong> company’s value creation efficiency will be (Van der Zahn et al., 2004).
2.2 Intellectual capital and firm performance
There have been several studies using VAIC TM model as <strong>the</strong> primary measurement <strong>of</strong> intellectual
capital. The work <strong>of</strong> Pulic (2002) used Croatian banks for <strong>the</strong> period <strong>of</strong> 1996-2000 revealed significant
differences in bank ranking based on efficiency and performance.
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Firer and Williams (2003) studied <strong>the</strong> relationship between <strong>the</strong> efficiency <strong>of</strong> value added and
corporate performance. The results <strong>of</strong> <strong>the</strong>ir study indicated that <strong>the</strong> relationship between <strong>the</strong> efficiency
<strong>of</strong> intellectual capital and corporate performance is limited and mixed. Mavridis (2004) applied <strong>the</strong>
same method to analyze <strong>the</strong> data from Japanese banks and confirmed <strong>the</strong> existence <strong>of</strong> significant
performance differences among <strong>the</strong> various groups.
Shiu (2006) examined 80 annual reports from Taiwan listed technologies firms. Based on <strong>the</strong> 2003
annual reports,<strong>the</strong> results showed that <strong>the</strong> VAIC has significantly positive correlation to pr<strong>of</strong>itability
and market valuation.
Kamath (2007) also adapted <strong>the</strong> same model for measuring <strong>the</strong> value-based performance <strong>of</strong> <strong>the</strong>
Indian banking sector for a period <strong>of</strong> five years from 2000 to 2004. The study confirms <strong>the</strong> existence
<strong>of</strong> vast differences in <strong>the</strong> performance <strong>of</strong> Indian banks. There is an evident bias in favour <strong>of</strong> <strong>the</strong>
performance <strong>of</strong> foreign banks compared with domestic banks. Tan et al. (2007) analyzed 150 publicly
listed companies in Singapore Exchange between 2000 to 2002. The findings showed that intellectual
capital and company performance are positively related.
In Malaysia, studies on intellectual capital and performance were conducted by Goh (2005) where he
measured <strong>the</strong> intellectual capital performance <strong>of</strong> commercial banks for <strong>the</strong> period 2001 to 2003. The
results found that, all banks have relatively higher human capital efficiency than structural and capital
efficiencies. As expected, foreign banks are intellectually more efficient than <strong>the</strong> domestic banks. The
results revealed that <strong>the</strong>re were significant differences between rankings <strong>of</strong> bank according to
efficiency and traditional accounting measures.
Hazlina and Zubaidah (2008) examined <strong>the</strong> intellectual capital and performance for companies listed
in <strong>the</strong> Bursa Malaysia Main Board for <strong>the</strong> year 2005-2006.They found significant positive relationship
to firms’ pr<strong>of</strong>itability. However, <strong>the</strong>re is no significant relationship between intellectual capital value
and firms’ market valuation for companies listed in Main and Second Boards.
Nik Maheran and Md Khairu (2009) investigates <strong>the</strong> intellectual capital efficiency and its performance
in Malaysian financial sector. The data were taken from 18 companies under financial sector for <strong>the</strong>
year 2007.It was found that intellectual capital has significant and positive relationships with
company’s performance measured by pr<strong>of</strong>itability and Return on Assets.
As on <strong>of</strong> <strong>the</strong> emerging market in Asia, <strong>the</strong>re is a practical need for Malaysia to determine <strong>the</strong>
intellectual capital efficiency and understand <strong>the</strong> impact <strong>of</strong> intellectual capital efficiency on <strong>the</strong>
innovation capital and firms’ performance. Thus, <strong>the</strong> firms will get to know <strong>the</strong> utilization <strong>of</strong> <strong>the</strong>ir
resources, so that <strong>the</strong>y can decide on <strong>the</strong>ir future resource allocation decisions.
2.3 Innovation capital and firm performance
Innovation is widely agreed to be a fundamental determinant <strong>of</strong> firm performance. Understanding <strong>the</strong>
nature and role <strong>of</strong> innovation requires analysis <strong>of</strong> <strong>the</strong> various types <strong>of</strong> innovative activities. The
innovation type has a significant impact on business performance, especially incremental innovation
(Oke et al., 2004).
Most <strong>of</strong> <strong>the</strong> empirical studies on <strong>the</strong> relation between innovation and performance provide evidence
that this relation is positive (Damanpour, 1991; Schulz and Jobe, 2001; Thornhill, 2006;
Weerawardenaa et al., 2006). Calantone et al. (2002) found a positive relationship between firm’s
innovativeness and overall pr<strong>of</strong>itability. They adopted ROI, ROA and ROS as objective measures <strong>of</strong>
performance.
Previous studies investigating <strong>the</strong> relationship between innovation and organization performance
indicated mixed result, some positive, some negative and some showed no relationship at all (Lin and
Chen, 2007). For example studies on innovation intensity by Lo<strong>of</strong> et al. (2001) found that <strong>the</strong> result
different within country. For example in Finland, <strong>the</strong> firm size has a negative effect on innovation
investment, whereas in Norway <strong>the</strong> effect is positive. However, in Sweden <strong>the</strong> effect is not significant.
These results show that <strong>the</strong> relationship between innovation and performance is complex and
requires more research. Innovation also has demonstrated a strong and influential relationship with
SMEs performance (Wolff and Pett, 2006; Montequin, 2006).
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Azlina Rahim et al.
Schoenecker and Swanson (2002) have pointed out that innovation is <strong>the</strong> key to <strong>the</strong> success <strong>of</strong> many
industries and <strong>the</strong> source <strong>of</strong> competitive advantage. Therefore, to sustain a leading position, a
company must focus on R&D investment to accumulate innovation outputs. The more intensive <strong>the</strong>
innovation activity, as measured by inputs and outputs, <strong>the</strong> better <strong>the</strong> performance <strong>of</strong> a company.
3. Data and methodology
3.1 Sample selection and data collection
The study examined <strong>the</strong> annual reports <strong>of</strong> all technology companies listed under Main Market and
Ace Market <strong>of</strong> Bursa Malaysia in year 2009. The technology industry was selected because <strong>the</strong>se
companies rely on intellectual capital in <strong>the</strong> operation <strong>of</strong> <strong>the</strong>ir business as compared to o<strong>the</strong>r
traditional sector companies. All <strong>the</strong> annual reports were downloaded from <strong>the</strong> Bursa Malaysia
website. Based on Bursa Malaysia web site, <strong>the</strong>re is a total <strong>of</strong> 93 companies listed under Technology
industry. However, due to some missing data and negative value added, <strong>the</strong>re are some companies
were eliminated. Therefore, <strong>the</strong> final data consists <strong>of</strong> 19 companies from <strong>the</strong> Main market and 36
were from Ace market. The details were tabulated in Table 1.
Table 1: Descriptive analysis <strong>of</strong> <strong>the</strong> sample
Original data Final data
Frequency Percentage Frequency Percentage
Main market 22 23.7 19 34.5
Ace market 71 76.3 36 65.5
Total 93 100 55 100
3.2 Research framework
The framework for this study as shown in Figure 1, measure <strong>the</strong> intellectual capital efficiency and its
relationship with innovation capital and firms’ performance.
Intellectual Capital
Efficiency
(VAIC TM )
• Human capital
efficiency(HCE)
• Capital employed
efficiency (CEE)
• Structural capital
efficiency (SCE)
Figure 1: The conceptual framework
3.3 The hypo<strong>the</strong>ses
Moderating variable
• Innovation capital
Firms’ performance
• Return on asset (ROA)
If intellectual capital is a valuable resource for firms’ competitive advantages, it will contribute to firms’
performance. Therefore, it is expected that intellectual capital will play an important role in enhancing
<strong>the</strong> firms’ performance. The first hypo<strong>the</strong>ses as follows:
H1 There is a positive association between <strong>the</strong> intellectual capital efficiency and firms’
performance.
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Azlina Rahim et al.
It is argued that innovation capital has impact on firms’ performance. Therefore, this study proposes
<strong>the</strong> next hypo<strong>the</strong>ses as follows:
H2 There is a positive association between <strong>the</strong> innovation capital and firms’ performance.
3.4 Variables measurement
3.4.1 Dependent variable
The dependent variable, firms’ performance is measured by return on asset (ROA). It is <strong>the</strong> ratio <strong>of</strong>
operating income to book value <strong>of</strong> total assets. The ratio is commonly used in financial reporting
(Chen et al, 2005; Tseng and Goo, 2005; Williams, 2000) and as proxy measures related to <strong>the</strong>
dimensions <strong>of</strong> corporate performance such as pr<strong>of</strong>itability (Firer & Williams, 2003; Kamath, 2008;
Ghosh and Mondal, 2009).
3.4.2 Independent variables
The VAIC model will be use to measure <strong>the</strong> intellectual capital efficiency and its components
namely human capital efficiency, capital employed efficiency and structural capital efficiency The
amount <strong>of</strong> value added and <strong>the</strong> efficiency in utilizing intellectual capital can be quantitatively
measured, using <strong>the</strong> above formula. As a performance indicator, <strong>the</strong> higher <strong>the</strong> VAIC; <strong>the</strong> better is
<strong>the</strong> efficiency level <strong>of</strong> <strong>the</strong> firm. If VAIC rises over time, than efficiency level improves and more
value is created. On <strong>the</strong> o<strong>the</strong>r hand, when VAIC falls, efficiency deteriorates and value is destroyed.
(Goh,2005).
The computation <strong>of</strong> VAIC involves five steps, each <strong>of</strong> which has its associated assumptions (Chan,
2009; Kujansivu & Lönnqvist, 2005; Pulic, 2000; Shiu, 2006; Firer and Williams, 2003), which are as
follows:
Firstly,
Compute <strong>the</strong> company’s value added:
VA = Output – Input,
Where VA = valued added; Output = total income; Input = cost <strong>of</strong> bought-in material, components and
services.
Secondly,
Compute <strong>the</strong> human capital efficiency (HCE).
HCE = VA / HC,
Where HCE = human capital efficiency; VA = value added; HC = human capital, which is calculated
from total employee expenditure for <strong>the</strong> company.
The third step:
Compute <strong>the</strong> structural capital efficiency (SCE).
SC = VA – HC,
Where SC = structural capital; VA = value added; HC = human capital. Note that SC and HC are in
reverse proportion with respect to VA. That is, <strong>the</strong> more HC participates in value creation, <strong>the</strong> less SC
is involved. Structural capital efficiency (SCE) is reflected by <strong>the</strong> share <strong>of</strong> SC in <strong>the</strong> total value
created, which is:
SCE = SC/VA,
Where SCE = structural capital efficiency; SC = structural capital; VA = value added.
The fourth step:
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Compute <strong>the</strong> IC efficiency.
Azlina Rahim et al.
In <strong>the</strong> context <strong>of</strong> VAIC, intellectual capital is assumed to consist <strong>of</strong> human capital and structural
capital. Therefore, intellectual capital efficiency is obtained by <strong>the</strong> summing <strong>of</strong> <strong>the</strong> two partial
efficiencies <strong>of</strong> human and structural capital:
ICE = HCE + SCE,
The final step in computing VAIC involves first calculating <strong>the</strong> capital employed efficiency (CEE).
According to <strong>the</strong> methodology, IC cannot operate independently and so needs to function in concert
with financial and physical capital in order to create value for a company. CEE can be obtained by:
CEE = VA/CE,
Where CEE = capital employed efficiency; VA = value added; CE = book value <strong>of</strong> <strong>the</strong> net tangible
assets <strong>of</strong> company.
Finally, VAIC is <strong>the</strong> composite sum <strong>of</strong> ICE and CEE:
VAIC = ICE (HCE +SCE) + CEE,
A higher coefficient indicates that more value is created using <strong>the</strong> company resources <strong>of</strong> physical and
intellectual capital (Pulic, 2004).
3.4.3 Moderating variable
Previous research measures innovation in a variety <strong>of</strong> ways. A number <strong>of</strong> quantitative measures <strong>of</strong>
innovation are possible including R&D, patents, as well as expenditure on training, investment and
new technology. This study will use R&D expenditure as <strong>the</strong> proxy for innovation capital.
4. Findings and discussion
4.1 Descriptive statistics
Table 2 presents <strong>the</strong> mean, standard deviation, minimum and maximum values <strong>of</strong> all dependent,
independent and moderating variables for <strong>the</strong> year 2009. The mean <strong>of</strong> VAIC is 3.36 with a range from
1.36 to 11.19. On average, <strong>the</strong> Malaysian technology companies created RM 3.36 for every one
ringgit employed. The major contribution <strong>of</strong> VAIC is from human capital efficiency with a mean <strong>of</strong>
2.6411. This result is consistent with Kamath (2008) and Firer and William (2003).
Table 2: Descriptive statistics for selected variables
Variable Mean Std deviation Minimum Maximum
HCE 2.6411 2.04851 1.01 10.08
SCE 0.4751 0.23234 0.01 0.90
CEE 0.2431 0.13949 0.04 0.67
VAIC 3.3600 2.22398 1.36 11.19
R&D 1,046,826 2,446,773 16,414 14,644,000
4.2 Correlation analysis
The secondary data was checked for normality and <strong>the</strong> data was not normally distributed. Therefore,
<strong>the</strong> non-parametric tests Spearman’s rank-order correlation was applied to test <strong>the</strong> relationship
between <strong>the</strong> variables. The findings indicate that HCE (r=0.539, p< 0.01), SCE (r=0.537, p< 0.01) and
VAIC (r=0.582, p< 0.01) are significantly and positively correlated to ROA. However CEE and RD are
not significantly associated with ROA.
The correlation implies that human capital efficiency and structural capital efficiency are <strong>the</strong> most
significant factor in <strong>the</strong> technology industry; companies with higher human capital and structural
capital would be more pr<strong>of</strong>itable than o<strong>the</strong>rs.
793

Table 3: Correlation analysis <strong>of</strong> selected variables
Azlina Rahim et al.
Variable VAIC HCE SCE CEE RD ROA
VAIC 1.000
HCE 0.986* 1.000
SCE 0.985* 1.000* 1.000
CEE 0.029 -0.101 -0.105 1.000
RD 0.142 0.158 0.162 -0.121 1.00
ROA 0.582* 0.539* 0.537* 0.305 0.167 1.000
Note: * indicates correlation is significant at <strong>the</strong> 0.01 level in <strong>the</strong> two-tailed test
4.3 Multiple regression analysis results
Multiple regression analysis was employ to identify <strong>the</strong> variables that significantly contribute to <strong>the</strong>
firm’s performance. First, <strong>the</strong> multicollinearity was checked among <strong>the</strong> variables. The estimated
variance inflator factor (VIF) <strong>of</strong> each variable in <strong>the</strong> regression model was between 1.016 and 3.256.
According to Shiu (2006), using a cut-<strong>of</strong>f value <strong>of</strong> VIF less than 5, no multicollinearity among <strong>the</strong>
variables was found. Table 4 presents <strong>the</strong> results <strong>of</strong> <strong>the</strong> multiple regression analysis based on <strong>the</strong>
following research models:
ROA = β0 + β1HCE + β2SCE + β3CEE + β4RD + εi
The regression produces an adjusted R 2 <strong>of</strong> 0.509 which indicate that <strong>the</strong> model is able to explain 50.9
percent <strong>of</strong> <strong>the</strong> variance in <strong>the</strong> dependent variable for <strong>the</strong> whole sample. The results are quite
satisfactory since it is higher than <strong>the</strong> study by Firer and William (2003) who found R 2 up to 30 percent
in identifying <strong>the</strong> relationship between IC and corporate performance. Both CEE and SCE have a
significant association with <strong>the</strong> firms’ performance. It is significant at 1% significant level.
For moderating variable; research and development expenditure shows <strong>the</strong> β <strong>of</strong> 0.131 which indicate
that an increase in one ringgit <strong>of</strong> research and development expenditure can bring 0.131 rise in
pr<strong>of</strong>itability.
Table 4: Multiple regression results for overall index
Dependent variable
VIF β t p-value
Overall index
Independent variables
Intercept
HCE 3.184 -0.074 -0.363 0.719
SCE 3.256 0.714 3.484 0.001*
CEE 1.061 0.532 4.544 0.000*
R&D 1.016 -0.131 -1.140 0.262
Model summary
R 2 0.561
Adjusted R 2 0.509
F-statistic 10.853
p-value <strong>of</strong> F-statistic 0.000
* significant at <strong>the</strong> 0.01 level
5. Conclusions and implications
The purpose <strong>of</strong> this study is to empirically examine <strong>the</strong> relationship between intellectual capital
efficiency and its components namely human capital efficiency, capital employed efficiency and
structural capital efficiency <strong>of</strong> Malaysian listed companies in technology industry. This study also
investigates <strong>the</strong> moderating effect <strong>of</strong> innovation capital on <strong>the</strong> intellectual capital efficiency and firms’
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Azlina Rahim et al.
performance. Using <strong>the</strong> accounting data, it reviews <strong>the</strong> annual reports <strong>of</strong> all technology companies
listed under Main Market and Ace Market <strong>of</strong> Bursa Malaysia in year 2009.
The study reveals that <strong>the</strong> mean <strong>of</strong> VAIC is 3.36 with a range from 1.36 to 11.19. The major
contribution <strong>of</strong> VAIC is from human capital efficiency with a mean <strong>of</strong> 2.6411. Spearman’s rank-order
correlation was applied to test <strong>the</strong> relationship between <strong>the</strong> variables. The empirical findings revealed
that <strong>the</strong>re is a significant positive relationship between VAIC and ROA. The two components <strong>of</strong> VAIC;
HCE and SCE have significant effect on pr<strong>of</strong>itability.
Findings from this study are subject to some limitations that provide initiatives for future research. The
study was limited to one year sample. By having one year sample it is unable to monitor <strong>the</strong> progress
and development <strong>of</strong> intellectual capital efficiency and innovation capital. Therefore, <strong>the</strong> avenues for
fur<strong>the</strong>r research will include more data from more sample companies covering longer periods <strong>of</strong> time.
In addition, it could be useful to fur<strong>the</strong>r investigate <strong>the</strong> relationship <strong>of</strong> IC efficiency and o<strong>the</strong>r firms’
characteristics such market valuation, return on investment and o<strong>the</strong>rs.
In spite <strong>of</strong> some existing limitations, this study contributes to <strong>the</strong> intellectual capital literature in several
ways. First, IC efficiency is industry specific. Second, this study provides <strong>the</strong> empirical understanding
on <strong>the</strong> intellectual capital efficiency for both Malaysian markets; Main Market and Ace Market. Fur<strong>the</strong>r,
<strong>the</strong> study include <strong>the</strong> moderating variables; innovation capital in <strong>the</strong> model.
The results <strong>of</strong> this study may serve as a useful input for companies, investors, scholars and managers
to better understand <strong>the</strong> implication <strong>of</strong> intellectual capital efficiency and innovation capital to <strong>the</strong> firm’s
performance.
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796

GRC: An Intellectual Capital Model for <strong>the</strong> Faculty <strong>of</strong>
Affiliated Universities in Thailand
Paipan Thanalerdsopit, Napat Harnpornchai, Pitipong Yodmongkol and
Komsak Meksamoot
Department <strong>of</strong> Knowledge Management, College <strong>of</strong> Arts, Media, and
Technology, Chiang Mai University, Thailand
jeabpaipan@hotmail.com
piti602@yahoo.com
tom_napat@yahoo.com
komsak@ieee.org
Abstract: This paper investigates how government universities can use Knowledge Management (KM)
techniques to adapt to consequences <strong>of</strong> <strong>the</strong> 1997 economic crisis in Thailand. Since this crisis, <strong>the</strong> Thai
government has embarked on a programme to allow government universities to become more autonomous,
reducing government expense and minimizing bureaucracy within Thailand’s higher education system. This has
resulted in government universities being encouraged to transform into affiliated public universities, managed by
University Councils under government supervision. Out <strong>of</strong> 92 public universities in Thailand, 14 are now affiliated
universities, with an aim to increase this number in <strong>the</strong> future. To meet requirements <strong>of</strong> <strong>the</strong> Thai government and
achieve <strong>the</strong> full potential <strong>of</strong> affiliated status, universities need to streng<strong>the</strong>n <strong>the</strong>ir management and governance.
This research aims to raise awareness <strong>of</strong> <strong>the</strong> importance and necessity <strong>of</strong> attaining affiliated status and to
motivate relevant stakeholders to create sustainable, independent universities. Within <strong>the</strong> remit <strong>of</strong> Intellectual
Capital (IC), <strong>the</strong> research proposes Governance, Risk Management and Compliance (GRC) as a framework to
facilitate sustainability within Thailand’s affiliated universities. The development <strong>of</strong> an appropriate GRC model is
challenging and this paper focuses on how to develop a GRC framework to enhance university policies and
decisions as well as encourage collaborative working. In particular, <strong>the</strong> GRC framework is developed with
regards to improving <strong>the</strong> efficiency and effectiveness <strong>of</strong> management in order to realize <strong>the</strong> full potential <strong>of</strong>
affiliated status. College <strong>of</strong> Arts, Media and Technology (CAMT) at Chiang Mai University was chosen as a case
study, acting as a microcosm <strong>of</strong> <strong>the</strong> wider university structure. Fieldwork and data collection were conducted to
perform a gap analysis to identify <strong>the</strong> steps needed to integrate principles <strong>of</strong> GRC. This analysis is presented as
<strong>the</strong> first step in creating a conceptual GRC model. The paper concludes by discussing how this model will be
designed to improve management in o<strong>the</strong>r faculties <strong>of</strong> affiliated public universities.
Keywords: governance, risk management and compliance (GRC); intellectual capital (IC); affiliated public
universities
1. Introduction and background
In recent years, <strong>the</strong>re has been a globalization <strong>of</strong> education, which has resulted in impacts on
Thailand’s public universities. With this process <strong>of</strong> globalization, <strong>the</strong>re have been changes requiring
previously public Thai universities to become autonomous organizations with limited government
supervision. Prior to <strong>the</strong>se changes, <strong>the</strong> government <strong>of</strong> Thailand provided centralized budgets to
public universities and university staff were employed as civil servants. This <strong>of</strong>ten meant staff felt
secure and safe in <strong>the</strong>ir jobs and as a result <strong>the</strong>re was no motivation or encouragement for
imagination or ingenuity in <strong>the</strong>ir work. Ultimately, this led to stagnation within <strong>the</strong> higher education
sector and <strong>the</strong> quality <strong>of</strong> education suffered (Kirtikara 2002). In 1997, an economic crisis in Thailand
led to a crisis <strong>of</strong> education, resulting in <strong>the</strong> Thai government applying for financial assistance from <strong>the</strong>
Asian Development Bank (ADB). One suggestion from <strong>the</strong> ADB was to let public universities manage
<strong>the</strong>mselves to reduce governmental spending, while at <strong>the</strong> same time minimizing bureaucracy within
Thai higher education. Bureaucracy in particular, was shown by Nitikraipot (1999) to be reducing <strong>the</strong>
effectiveness and global competitiveness <strong>of</strong> Thai universities. As <strong>of</strong> 2011, 14 universities have been
encouraged to change into affiliated public universities in Thailand. Among <strong>the</strong>m, ten have finished
<strong>the</strong>ir evolution from public university to affiliated public university and four are new universities, which
were conceptualized as affiliated public universities. This research investigates how <strong>the</strong>se affiliated
universities can maximize <strong>the</strong> potential <strong>of</strong> <strong>the</strong>ir new autonomy through <strong>the</strong> lens <strong>of</strong> Knowledge
Management (KM) and in particular, via <strong>the</strong> Public Management Quality Award (PMQA) and a
framework <strong>of</strong> Governance, Risk Management and Compliance (GRC).
Currently Thailand has 92 public universities and as noted above, 14 have so far been encouraged to
change into affiliated public universities (The Office <strong>of</strong> <strong>the</strong> Higher Education Commission 2010). The
process <strong>of</strong> transforming from a public to an affiliated public university, results in two main challenges.
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Firstly, some lecturers and staff are afraid <strong>of</strong> losing <strong>the</strong>ir perceived permanent employment status due
to new infrastructures and systems. Secondly, <strong>the</strong> existence <strong>of</strong> a bureaucratic mentality exists, where
<strong>the</strong>re is a habit to blindly follow leaders ra<strong>the</strong>r than being creative and productive at work. In
attempting to overcome <strong>the</strong>se challenges, a variety <strong>of</strong> management tools have been applied to <strong>the</strong>
affiliated universities <strong>of</strong> Thailand. These tools are mainly concerned with increasing and improving
quality management for stakeholders <strong>of</strong> <strong>the</strong> universities, for example <strong>the</strong> PMQA, Thailand Quality
Award (TQA), Results Based Management (RBM), and Balanced Scorecard (BSC). One framework,
which attempts to integrate organizational ethos and allows universities to successfully meet <strong>the</strong>ir
objectives is GRC (Suvanasarn 2010; PricewaterhouseCoopers 2004; Tarantino 2008). The
advantage <strong>of</strong> GRC is that People, Process and Technology (PPT) are aspects <strong>of</strong> <strong>the</strong> framework as
well as intellectual capital, which utilizes KM to maintain stakeholder’s satisfaction as well as
successful management. GRC embraces <strong>the</strong> notion that organizations who possess more intellectual
capital than finance should be more pr<strong>of</strong>itable in <strong>the</strong> future (Edvinsson and Malone 1997). The
framework <strong>of</strong> GRC is thus inextricably linked to organizational sustainability. Therefore, if Thai
affiliated universities can successfully implement and maximize <strong>the</strong> potential <strong>of</strong> GRC, it will secure
<strong>the</strong>ir future as higher education institutes in Thailand, and beyond.
GRC is an integrated management tool, which is “…an integrated, holistic approach to organizationwide
governance, risk and compliance ensuring that an organization acts ethically correct and in
accordance with its risk appetite, internal policies and external regulations though <strong>the</strong> alignment <strong>of</strong>
strategy, processes, technology and people, <strong>the</strong>reby improving efficiency and effectiveness.” (Racz,
Weippl and Seufert 2010 p.112-113). However, <strong>the</strong> components <strong>of</strong> GRC are difficult to define and are
also based on individual circumstances and subtle nuances associated with a particular organization.
With this in mind, GRC is not unlike <strong>the</strong> concept <strong>of</strong> tacit knowledge, which is also difficult to define and
has a strong component <strong>of</strong> individuality. Knowledge Management tools have been used successfully
for a number <strong>of</strong> years to structure and classify tacit knowledge and could <strong>the</strong>refore be utilized in
defining and structuring a suitable GRC framework for <strong>the</strong> College <strong>of</strong> Arts, Media and Technology
(CAMT), Chiang Mai University (CMU) (Thanalerdsopit, Meksamoot and Chakpitak 2011).
Chiang Mai University (CMU) was <strong>the</strong> first higher education institute in <strong>the</strong> north <strong>of</strong> Thailand. In 2008,
CMU began its transformation to become an affiliated public university, governed by <strong>the</strong> University
Council. The vision <strong>of</strong> CMU is, “to be an affiliated public research-oriented university, maintaining
international standards <strong>of</strong> quality assurance and academic excellence”. In 2011, CAMT, one <strong>of</strong> 21
faculties in CMU, volunteered to study <strong>the</strong> development and application <strong>of</strong> GRC as applied to
organizational management. The first step in this process was to conduct a gap analysis between <strong>the</strong>
present state <strong>of</strong> faculty management, (termed “as-is”), and compare this scenario with <strong>the</strong> desired
GRC framework. The second stage was to design a GRC model, which could be applied and tested
at CAMT and <strong>the</strong>n compared with Thai and international GRC standards to create <strong>the</strong> desired “to-be”
scenario. This research attempts to justify and exemplify why GRC should be used as an integrated
management tool by investigating <strong>the</strong> “as-is” and “to-be” organizational scenarios at CAMT, CMU.
2. Methodology
There were five main stages in this research and <strong>the</strong> methodology is organized accordingly. These
stages are shown in Figure 1 and are justified and explained in <strong>the</strong> corresponding sub-sections.
1
Data
Collection
2
Benchmarking
3
CAMT PMQA
as-is scenario
Figure 1: The five stages employed in <strong>the</strong> methodology
2.1 Stage one: Data collection
4
CAMT GRC
gap analysis
5
CAMT GRC
kick-<strong>of</strong>f
This stage <strong>of</strong> <strong>the</strong> research was concerned with collecting data in order to proceed with a
benchmarking exercise to determine <strong>the</strong> “as-is” situation <strong>of</strong> CAMT management strategies. Data was
required in order to understand <strong>the</strong> current management situation <strong>of</strong> CAMT. These data were used to
design CAMT’s strategy to develop GRC management within <strong>the</strong> organization. During September
2009 to January 2010, this research applied <strong>the</strong> 2009-2010 Education Criteria <strong>of</strong> <strong>the</strong> Thai
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Paipan Thanalerdsopit et al.
Performance Excellence Framework to collect data in CAMT. The data collection process determined
<strong>the</strong> current situation <strong>of</strong> administration and management at CAMT using <strong>the</strong> self-assessment
processes described in this framework. The framework is shown in Figure 2 and focuses on
assessing performance, specifically within educational institutions and was generated by <strong>the</strong> Office <strong>of</strong>
<strong>the</strong> Higher Education Commission, Thailand. To meet <strong>the</strong> aim <strong>of</strong> this project and achieve
sustainability through GRC, <strong>the</strong>re is firstly a need to assess <strong>the</strong> “as-is” situation <strong>of</strong> CAMT.
Determination <strong>of</strong> <strong>the</strong> “as-is” situation was completed in two stages; data collection and benchmarking.
These two steps were conducted using existing management frameworks as a guide. In particular,
PMQA and Learning Organization <strong>the</strong>ory were used to establish how CAMT is currently managed and
where GRC could be implemented to foster improvements in <strong>the</strong> organization’s performance. The
Office <strong>of</strong> Public Sector Development Commission Thailand (OPDC) has promoted knowledge
management by creating change management teams who utilize knowledge management within <strong>the</strong>
public sector. The OPDC suggests change cannot be successful if those responsible for driving <strong>the</strong>
change do not coordinate with stakeholders. Consequently, creating change management teams is a
vital process to produce knowledge resources, which <strong>the</strong> change managers can <strong>the</strong>m use as a tool to
drive intended change. Additionally, The Royal Decree on Good Governance Article II stated that
government agencies should regularly develop knowledge within <strong>the</strong>ir organization by following
patterns associated with a learning organization. Data and information should be organized to create
faster, more accurate and up to date work methods. They must also promote and develop
capabilities, build visions and change <strong>the</strong> established paradigms <strong>of</strong> <strong>the</strong> <strong>of</strong>ficials within <strong>the</strong>ir
organization, encouraging efficiency and mutual learning to positively affect performance
(Thanalerdsopit and Chakpitak 2010).
1
Leadership
Organization Pr<strong>of</strong>ile: Environments,
Relationships and Challenges
2
Strategic
Planning
3
Customer
Focus
5
Workforce
Focus
6
Process
Management
4
Measurement, Analysis and Knowledge Management
7
Results
Figure 2: Thai education criteria for performance excellence framework (The Office <strong>of</strong> <strong>the</strong> Higher
Education Commission 2010)
The framework shown in Figure 2 is a variation <strong>of</strong> <strong>the</strong> PMQA management tool, but with adaptations
for Thai education and depicts interrelationships among seven categories as well as an eighth section
known as <strong>the</strong> organizational pr<strong>of</strong>ile. The diagram presents <strong>the</strong> Leadership triad, which is comprised <strong>of</strong>
three interrelated categories (Leadership, Strategic Planning, and Customer Focus), as well as <strong>the</strong>
Results triad, which is also comprised <strong>of</strong> three interrelated categories (Workforce Focus, Process
Management, and Results). These six categories are supported by Measurement, Analysis, and
Knowledge Management, which supply <strong>the</strong> measurement and analysis tools needed to evaluate <strong>the</strong>
triads and <strong>the</strong>ir individual categories. The Organizational Pr<strong>of</strong>ile aids an organization in analyzing its
environment, business relationships, and challenges (The Commission on Higher Education Ministry
<strong>of</strong> Education 2009). The framework was adapted and changed to suit CAMT and was <strong>the</strong>n used to
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Paipan Thanalerdsopit et al.
inform data collection. The Dean, as facilitator, setup <strong>the</strong> CAMT PMQA model to help CAMT staff
answer questions. This model was based on CAMT staff responsibility within <strong>the</strong>ir work roles. Figure 3
describes <strong>the</strong> adapted framework, where <strong>the</strong>re are three organizational levels (Operational, Middle,
Executive), which formed <strong>the</strong> data collection strategy in this study.
0
1 7
2
4
3
5
6
Figure 3: The CAMT criteria model: numbers one to seven correspond to <strong>the</strong> categories described in
Figure 2
At <strong>the</strong> Executive Level, <strong>the</strong> Dean answered self-assessment questions from category 7 (Results) as
this category shows how organizations design Key Performance Indicators (KPIs) and can help
CAMT staff realize <strong>the</strong> goal <strong>of</strong> <strong>the</strong> framework. After designing KPIs from category 7 (Results), <strong>the</strong>
next step moved to answer questions regarding <strong>the</strong> organizational pr<strong>of</strong>ile, which presents <strong>the</strong> whole
organizational environment, relationships, challenges and questions <strong>the</strong> management within an
organization to help <strong>the</strong> PMQA committee understand <strong>the</strong> overall picture <strong>of</strong> management in CAMT.
The next step is to answer questions from Category 1 (Leadership). The middle level answered
questions from Category 2 (Strategic Planning), Category 3 (Customer Focus) and Category 4
(Measurement, Analysis, and Knowledge Management). The Last category was <strong>the</strong> operational level,
which aimed to answer questions from Category 5 (Workforce Focus) and Category 6 (Process
Management). Throughout <strong>the</strong>se processes <strong>the</strong> Dean <strong>of</strong> CAMT acted as a facilitator within a team <strong>of</strong>
CAMT staff and appraised staff answers. This method encouraged staff to follow <strong>the</strong> process and
maintain consistency.
Research tools for data collection were in-depth interviews and group discussions with <strong>the</strong> Dean
(Executive level). These discussions and interviews also extended to middle and operational levels.
At <strong>the</strong> middle level, <strong>the</strong> Vice Dean and Assistant Deans were interviewed. Data collection at <strong>the</strong>
operational level included heads <strong>of</strong> administrative departments, supporting departments and staff in
CAMT. In addition to primary data collection, literature reviews in quality management and knowledge
management (especially pertaining to higher education) were conducted to fully inform and facilitate
<strong>the</strong> benchmarking exercise (Thanalerdsopit and Chakpitak 2010).
2.2 Stage two: Benchmarking
There was a need to assess current CAMT practice against PMQA <strong>the</strong>ory to ascertain <strong>the</strong> degree to
which CAMT could be considered a learning organization. The fundamental objectives <strong>of</strong> knowledge
management and quality management are <strong>the</strong> same; to create organizational knowledge so that
improvement can occur. Organizations maintaining a set <strong>of</strong> quality management practices that
support <strong>the</strong> knowledge creation process should be more effective at deploying quality management.
Quality frameworks like <strong>the</strong> Malcolm Baldrige National Quality Award (MBNQA) increasingly
recognize <strong>the</strong> importance <strong>of</strong> knowledge as ‘‘Information and Analysis’’ and recently changed to
include ‘‘Measurement, Analysis, and Knowledge Management”, but do not incorporate knowledge
into <strong>the</strong> logic <strong>of</strong> deploying quality management practices. This knowledge perspective presents an
opportunity for future refinements <strong>of</strong> <strong>the</strong> MBNQA. In addition, deploying quality from a knowledgebased
view seems more consistent with <strong>the</strong> underlying philosophy <strong>of</strong> quality thought leaders
(Linderman, Schroeder, Laheer, Liedtke and Choo, 2004). Gavin (1991) discussed why <strong>the</strong> MBNQA
has been widely acknowledged as one <strong>of</strong> <strong>the</strong> benchmarks <strong>of</strong> Total Quality Management (TQM). He
found <strong>the</strong> award clearly codifies and makes accessible <strong>the</strong> principles <strong>of</strong> language in quality
management. It is well known and adopted by organizations as a means <strong>of</strong> self-assessment to
embrace quality management practices. It also acknowledges goals <strong>of</strong> customer satisfaction and
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increased employee participation. The MBNQA has reshaped leaders' thinking and behavior.
According to Senge’s LO <strong>the</strong>ory, managers should lay down <strong>the</strong>ir old ways <strong>of</strong> thinking (mental
models) and learn to be open with o<strong>the</strong>r people (personal mastery). They should also understand how
<strong>the</strong>ir organization really works (systems thinking) and form a plan everyone can agree on (shared
vision) and <strong>the</strong>n work toge<strong>the</strong>r to achieve <strong>the</strong> shared vision (team learning). For <strong>the</strong>se reasons,
Garvin (1991) and Senge’s <strong>the</strong>ories (Senge 1990) were used to compare MBNQA categories with
principles <strong>of</strong> Senge’s Learning Organization, as shown in Table 1. This allowed CAMT to assess its
current organizational values and principles with those suggested as important in <strong>the</strong> literature.
Table 1: Learning organization requirements and MBNQA principles (Terziovski et al. 2002)
MBNQA, Garvin (1991)
Learning Organization <strong>of</strong> Senge (1992)
<strong>International</strong> Organizational Requirements
Organizational Requirements
Leadership Building Shared Vision
Human Resource Development Team Learning and Personal Mastery
Information and Analysis
Process Improvement
Working with Mental Models
Customer Focus
Organizational Pr<strong>of</strong>iles
Strategic Planning
Systems Thinking
CAMT benchmarked PMQA, a strategic tool <strong>of</strong> CMU against o<strong>the</strong>r faculties by interviewing staff
working in Quality Management sections and attending CMU Quality Management meetings. While
benchmarking could be considered similar to a determination <strong>of</strong> CAMT’s “as-is” situation, <strong>the</strong>re is a
subtle difference. Benchmarking was used as a reality-check to assess CAMT practice against KM
<strong>the</strong>ory, whereas determining <strong>the</strong> “as-is” situation assessed CAMT’s current situation with regards to
PMQA.
2.3 Stage three: The “as-is” situation: CAMT PMQA
Without determination <strong>of</strong> <strong>the</strong> “as-is” situation requirements for change cannot be ascertained.
Understanding <strong>the</strong>se requirements acts as an anchor while constructing future plans. To determine
<strong>the</strong> “as-is” situation <strong>of</strong> CAMT in terms <strong>of</strong> its application <strong>of</strong> PMQA, regular meetings were held
alongside in-depth interviews and a continual consideration <strong>of</strong> <strong>the</strong> PMQA and Learning Organization
Frameworks. The focus on PMQA is due to <strong>the</strong> Thai government’s support <strong>of</strong> all government
organizations to implement PMQA. In addition, <strong>the</strong> Thai National Education Act (1999) encourages
educational organizations to become Learning Organizations so CAMT utilized both PMQA and
Learning Organization <strong>the</strong>ory to assess <strong>the</strong> current situation within <strong>the</strong> organization.
2.4 Stage four: CAMT GRC gap analysis
In this stage, <strong>the</strong> researcher studied GRC philosophies in <strong>the</strong> literature. Research showed that
organizations are interested in GRC and see it as relevant to <strong>the</strong>ir work, but believe various
challenges must be overcome before <strong>the</strong>y can develop fully mature GRC programs (Miller 2010). In
response to this, firms such as PricewaterhouseCoopers (2004), Deloitte Touche Tohmatsu (2007)
and SAP (2011) developed GRC models to help organizations visualise what an exemplary GRC
capability might look like within <strong>the</strong> context <strong>of</strong> its own operating environment. A GRC capability <strong>of</strong> this
caliber would require board and management to determine that <strong>the</strong> organization has an effective
operating model.
In addition to <strong>the</strong>se attributes, boards and management must be secure in <strong>the</strong> knowledge that <strong>the</strong>ir
organization has a disciplined approach for ensuring <strong>the</strong>se capabilities are in place and fully
operational across <strong>the</strong> enterprise. Fur<strong>the</strong>r, boards and management need to feel confident that <strong>the</strong>
organization has an approach to meeting changing GRC requirements, and that changes do not
negatively impact existing value and risk management capabilities. The GRC operating model helps
business leaders visualize success and understand how such an approach could be realized within
<strong>the</strong>ir own organizations.
As well as GRC literature, in-depth interviews were used to ascertain trends and benefits from GRC
experts in Thailand. To fur<strong>the</strong>r assess <strong>the</strong> gap between <strong>the</strong> “as-is” situation and future GRC
implementation, CAMT invited a GRC expert to a CAMT GRC meeting, which was attended by CAMT
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Paipan Thanalerdsopit et al.
administrators and staff. After <strong>the</strong> meeting, researchers assessed understanding <strong>of</strong> CAMT with
regards to GRC via interviews. Selected interviewees were administrators and o<strong>the</strong>r staff.
2.5 Stage five: CAMT GRC “kick-<strong>of</strong>f”
To begin <strong>the</strong> implementation <strong>of</strong> GRC at CAMT, a “kick-<strong>of</strong>f” meeting was held to inform CAMT staff
about <strong>the</strong> new GRC project. At this meeting, a GRC expert was once again present to emphasise <strong>the</strong>
importance <strong>of</strong> GRC in Thailand’s education system. Following <strong>the</strong> meeting, CAMT staff were given a
copy <strong>of</strong> <strong>the</strong> draft GRC policy.
3. Results
3.1 Benchmarking
Benchmarking is <strong>the</strong> result <strong>of</strong> data collection and CAMT demonstrated its PMQA in relation to against
LO requirements. The result illustrates that <strong>the</strong>re is a mutual independence between learning
organizations and <strong>the</strong> framework <strong>of</strong> MBNQA that is corroborated by Terziovski el al. (2002), based on
<strong>the</strong> <strong>the</strong>oretical framework <strong>of</strong> Senge’s principles and <strong>the</strong> MBNQA criteria. The results comparing <strong>the</strong>
LO steps with CAMT PMQA are shown in Table 2.
Table 2: Comparing CAMT PMQA with LO steps
LO Design Step CAMT PMQA
Step 1: Establishing <strong>the</strong> groups CAMT set a group <strong>of</strong> people to apply PMQA in an organization called
a CAMT PMQA team
Step 2: Divergent thinking The Dean worked as a facilitator to help people in <strong>the</strong> PMQA team
answer PMQA questions. A Computer and projector acted as a flip
chart to show answers. Each staff member gave his or her answers
Step 3: Clarity The PMQA team answered PMQA questions
Step 4: Convergent thinking Everyone had an opportunity to explain and challenge answers.
Step 5: Presentations and priorities A PMQA team selected <strong>the</strong> best answer with all in agreement and
presented <strong>the</strong>se answers to <strong>the</strong> team for validation.
Step 6: Implementation CAMT can implement <strong>the</strong> first step <strong>of</strong> LO in a PMQA team
Source: Adapted from Senge (1994)
The LO is a concept introduced by Senge (1990) which has five components, namely, systems
thinking, personal mastery, mental models, shared vision, and team learning. CAMT completed <strong>the</strong>
first stage <strong>of</strong> PMQA before o<strong>the</strong>r faculties within CMU. CAMT is also <strong>the</strong> first faculty to apply and
finish PMQA based on <strong>the</strong> LO method. CAMT plans to revise PMQA from <strong>the</strong> bottom up in order to
strive for continuous improvement with regards to PMQA.
3.2 “As-is” scenario
Results from benchmarking feed into <strong>the</strong> CAMT PMQA “as-is” scenario and shows that after finishing
CAMT PMQA, <strong>the</strong> Dean <strong>of</strong> CAMT specified challenges on how CAMT could ensure <strong>the</strong> quality and
availability <strong>of</strong> required data, information, s<strong>of</strong>tware, and hardware for workforce, students, partners,
collaborators and o<strong>the</strong>r stakeholders. Quality <strong>of</strong> data, information, and knowledge were ensured
through accuracy, integrity, reliability, timeliness, security and confidentiality using <strong>the</strong> following
methods:
The leader acted to design CAMT PMQA strategies utilizing all information
The CAMT committee and administrators used PMQA information in <strong>the</strong>ir day-to-day work, for
example conference, management practices and activities in CAMT
CAMT used information under CMU regulations
Information was audited by corresponding sections, for example, financial information was
checked by <strong>the</strong> financial section
All staff in CAMT were allocated personal computers
There were two Quality Assurance (QA) meetings per year
Fur<strong>the</strong>rmore, an uploaded PMQA document was disseminated via a Knowledge Management System
(KMS) in CAMT, so CAMT staff could learn about PMQA. Some lecturers applied PMQA in teaching
Knowledge Management masters students. CAMT will also apply results <strong>of</strong> Category 4, which
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Paipan Thanalerdsopit et al.
focuses on Risk management to <strong>the</strong> Committee <strong>of</strong> Sponsoring Organizations <strong>of</strong> <strong>the</strong> Treadway
Commission-Enterprise Risk management (COSO - ERM), with a view to reduce organizational risks
(Chakpitak 2010). Risk Management experts in Thailand described a new trend in risk management
for private and state enterprise which uses a GRC model. CAMT’s next step is to integrate a GRC
model to go beyond PMQA towards <strong>the</strong> “as-is” scenario (section 3.2).
Prior to achieving GRC, <strong>the</strong> Balanced Scorecard (BSC) management tool was used as an interim
step because it helps <strong>the</strong> chief executive <strong>of</strong>ficers to set appropriated strategic <strong>of</strong> management in
organization (Mitchell 2007). The BSC is a tool to highlight strategy and management and was
suggested by Johnson and Kaplan (1987). The BSC is widely utilized in business and within public
management (Johnsen 2001).
The results <strong>of</strong> <strong>the</strong> BSC tool are shown in Figure 3.
Financial
Internal business
process
CMU QA/TQA
Budget
Academic
growth
Student affairs
and
Research, contests, visiting pr<strong>of</strong>essors,
projects, cooperative education
Lectures
FTES Learning
5S
Academic utilization
Office utilization
Office inventory
Building and place
IT
Utility cost
Customer
KM
Strategic planning
Manpower planning
Evaluation
HRD HR Scorecard
MIS
Risk management
CRM
PR/marketing/
Up/cross selling
Retention/loyalty program
KM
Province
Animation
Figure 3: CAMT BSC management windows
The BSC can be split into four management windows (Figure 3), with each BSC variable described in
detail below.
Financial window: The CAMT budget will be managed based on CMU Quality Assurance (QA)
and TQA Activities. Focus will also be placed on student affairs, research, contests, visiting
pr<strong>of</strong>essors, projects, and cooperative education. Lecturers in CAMT should be full-time and
matched with Full-Time Equivalent Students (FTES) to support academic quality.
Learning and Growth: CAMT uses KM as <strong>the</strong> key driver when executing Strategic Planning,
Manpower Planning, Evaluation, Human Resource Development (HRD), Human Resource (HR)
Scorecard, Management Information System (MIS) and Risk Management
Internal Business Process: The five “S” processes are, sorting, straightening, systematic cleaning,
standardizing, and sustaining academic utilization to allow staff to understand how to work in
CAMT. In addition, CAMT has to satisfy <strong>of</strong>fice utilization, <strong>of</strong>fice inventory, buildings and utility
costs. CAMT also uses Information Technology (IT) to manage its organization, for instance, MIS,
Knowledge Management Systems (KMS), e-<strong>of</strong>fice.
Customer: CAMT uses Customer Relationship Management (CRM) to support and encourage
customers. This facilitates CAMT in supporting customers via public relations (PR), marketing and
information. Additionally, up and cross selling and retention as well as a loyalty program on KM
and animation for <strong>the</strong> Government Office <strong>of</strong> Chiang Mai are <strong>the</strong> main services by CAMT
provieded.
3.3 Gap analysis
Results shown in Table 3 illustrate <strong>the</strong> gap between current CAMT PMQA status and <strong>the</strong>
requirements <strong>of</strong> GRC
After CAMT identified its “as-is” situation, a meeting was setup to initiate <strong>the</strong> GRC project known as
CAMT GRC “kick-<strong>of</strong>f”, <strong>the</strong> results <strong>of</strong> which are shown in <strong>the</strong> next step.
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Paipan Thanalerdsopit et al.
Table 3: Analyzing <strong>the</strong> gap between CAMT PMQA “as-is” and GRC
GRC context Gap analysis
People CAMT focuses on requirements <strong>of</strong> stakeholders and although similar to GRC, CAMT
must link stakeholders with quality internal processes and technology.
Process
CAMT sets vision, mission and values, but has to think about its strategic vision,
which is <strong>the</strong> long-term perspective for CAMT’s future.
CAMT uses COSO-ERM to manage risks, but COSO-ERM is only one part <strong>of</strong> GRC.
Also, it does not cover Risk <strong>of</strong> IT. From this Gap, CAMT has to show how to manage
risks to cover all requirements <strong>of</strong> GRC which includes Cooperated Governance (CG),
COSO, Enterprise Risk Management (ERM), Information Technology Governance
(ITG) and Audit.
CAMT focuses on PMQA which in turn focuses on lagging indicators by measuring
processes in <strong>the</strong> past, whereas GRC focuses on current internal processes and
leading indicators which are proactive processes. GRC integrates process
management ra<strong>the</strong>r than PMQA’s consideration <strong>of</strong> processes in silos. This gap leads
CAMT to set more indicators.
CAMT uses BSC to manage <strong>the</strong> organization. BSC is an important tool to plan GRC
because <strong>of</strong> four dimensions <strong>of</strong> BSC, namely Financial, Customer, Internal Process
and Organizational Capability which help organizations to set performance measures
for SMART Objectives which are more precise than traditional business objectives.
CAMT conducts risk management by using COSO-ERM. COSO-ERM is one part <strong>of</strong>
GRC. In addition, CAMT links risk management with KM.
Technology CAMT uses technology to manage <strong>the</strong> organization. For example, Internet Data
Center (IDC), Wide Area Network (WAN) & Wireless Server Network, e–Learning,
intranet, Management Information System (MIS), Knowledge Management System
(KMS), Business Intelligence (BI), S<strong>of</strong>tware Rational Suit, Library Program by using
Radio-Frequency Identification (RFID) and CAMT Student Risk Management
Program. Also, Information Technology (IT) is part <strong>of</strong> GRC, but CAMT has concern
about Risk in IT and follows <strong>the</strong> Thai Act <strong>of</strong> Computer Related Crime (2007) and ISO
27000 for information related to security matters.
3.4 GRC “kick-<strong>of</strong>f”
CAMT focuses on sustainability, which is characterized by <strong>the</strong> Intellectual Capital (IC) <strong>of</strong> an
organization. IC supports ideas associated with GRC because CAMT analyzed <strong>the</strong> Gap <strong>of</strong> GRC
compared with <strong>the</strong> CAMT “as-is” situation. The first phase <strong>of</strong> GRC in CAMT was initiated at <strong>the</strong> top
level by <strong>the</strong> Dean. A GRC expert discussed that this project is <strong>the</strong> first GRC project within <strong>the</strong>
education sector <strong>of</strong> Thailand. It has significant potential to add value to management in public
universities, especially affiliated universities, which are new and have complex management. CMU
should start to develop GRC and while GRC usually comes from <strong>the</strong> top levels <strong>of</strong> an organization,
CAMT found that no GRC policy exists in CMU’s strategy. With global educational change, CAMT
needs to improve quality management in <strong>the</strong> organization. Despite being a small part <strong>of</strong> CMU, CAMT
is attempting to achieve best practice to meet its objectives (Suvanasarn 2011).
4. Conclusion
This study has shown five steps <strong>of</strong> research, starting with data collection and benchmarking against
o<strong>the</strong>r organizations using Knowledge Management <strong>the</strong>ory. Data was <strong>the</strong>n analyzed to ascertain <strong>the</strong>
current situation <strong>of</strong> CAMT PMQA, termed <strong>the</strong> "as-is" scenario. CAMT discovered a contemporary
management ethos called “GRC” with potential to meet <strong>the</strong> sustainability needs <strong>of</strong> affiliated
universities and benchmarked itself against GRC requirements. The current PMQA allowed a
determination <strong>of</strong> requirements in order to maximize <strong>the</strong> potential <strong>of</strong> <strong>the</strong> affiliated status and fully
integrate GRC. CAMT conducted a gap analysis between <strong>the</strong> “as-is” situation and <strong>the</strong> “GRC”
framework. The results led to <strong>the</strong> CAMT GRC “kick-<strong>of</strong>f” meeting. CAMT is <strong>the</strong> first educational faculty
within <strong>the</strong> public university sector in Thailand to develop a GRC process within <strong>the</strong> organization. GRC
has been shown as a useful management strategy, which is key to transforming into an effective
organization within <strong>the</strong> affiliated university sector. CAMT is a microcosm within a larger organization,
but faculty management in CAMT fully support <strong>the</strong> organization to effectively implement GRC.
Developing a large project in a short time poses challenges, but <strong>the</strong> starting point analyzed in this
research, provides a useful step for management in a complex organization as part <strong>of</strong> a new Thai
affiliated university, which has passed from <strong>the</strong> bureaucratic civil servant generation to become fully
autonomous.
804

Acknowledgements
Paipan Thanalerdsopit et al.
Acknowledgements go to <strong>the</strong> lead author’s PhD supervisors; Mr.Metha Suvanasarn, Assistant
Pr<strong>of</strong>.Dr.Anchalee Jengjarern, Associate Pr<strong>of</strong>.Dr.Sermkiat Jomjunyong, Dr.Paul Goldsmith and
Dr.Nopasit Chakpitak. CAMT and <strong>the</strong> Graduate School <strong>of</strong> Chiang Mai University are gratefully
acknowledged for supporting <strong>the</strong> lead author’s work through a scholarship.
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805

Using Ontologies for Knowledge Management: The
Chaipattana Aerator Project
Jirawit Yanchinda, Pitipong Yodmongkon, Nopasit Chakpitak and Paul
Goldsmith
College <strong>of</strong> Arts, Media, and Technology, Chiang Mai University, Thailand
Jirawit_y@hotmail.com
pitipong@camt.info
nopasit@camt.info
p.goldsmith@dsl.pipex.com
Abstract: There are over 4,000 Royal Initiative Projects, reflecting His Majesty King Bhumibol <strong>of</strong> Thailand’s
concern over <strong>the</strong> well being <strong>of</strong> his people. The Royal Projects create valuable knowledge and <strong>the</strong>re is a
requirement to structure, store, share and reuse this knowledge effectively. This research aims to analyze,
syn<strong>the</strong>size, and formulate structural knowledge <strong>of</strong> one Royal Project using CommonKADS and ontological-based
knowledge management. The paper proposes three broad ontological categories, which deal with <strong>the</strong> principle,
essence, and practice concepts <strong>of</strong> <strong>the</strong> Chaipattana Aerator Project. The Chaipattana Aerator is a patented
invention known worldwide for its effectiveness in increasing oxygenation to reduce water pollution and is
particularly useful in rural areas. This study constructs a knowledge representation <strong>of</strong> <strong>the</strong> Chaipattana Aerator
Project by extracting key concepts from <strong>the</strong> King <strong>of</strong> Thailand’s principle, essence and practice concepts.
Ontological development was based on information from <strong>the</strong> Royal Project repository, which was translated from
freely available text into a formal representation using CommonKADS. The requirement that knowledge gained
from <strong>the</strong> project should be ga<strong>the</strong>red, stored, maintained and reused effectively means <strong>the</strong>re is a need to share
and reuse ontology when building or modifying <strong>the</strong> Chaipattana Aerator. In turn, this requires an effective and
suitable knowledge support system. The ontology developed in this research provides such a support system and
may be used by students in remote areas <strong>of</strong> Thailand to effectively navigate and utilize <strong>the</strong> knowledge <strong>of</strong> <strong>the</strong>
Chaipattana Aerator Project. In addition, <strong>the</strong> research findings suggest that <strong>the</strong> Internet could be used to share
and generate data, information and knowledge in <strong>the</strong> Royal Initiative Project domain. This study concludes by
emphasizing <strong>the</strong> benefits <strong>of</strong> ontologies in supporting knowledge for students. Ultimately, <strong>the</strong> ontologies provide a
methodology for knowledge acquisition and modeling which will facilitate more effective use <strong>of</strong> <strong>the</strong> Chaipattana
Aerator.
Keywords: knowledge management, structural knowledge formulation, community <strong>of</strong> practice, ontologies,
CommonKADS
1. Introduction and background
Knowledge is a valuable community resource and community strength is a critical foundation in <strong>the</strong>
provision <strong>of</strong> a sustainable economic and cultural development process. Knowledge management is a
concept that can <strong>the</strong>refore be applied to communities in order to facilitate sustainability in <strong>the</strong>ir
development. The use <strong>of</strong> knowledge, local resources, skills and wisdom can be used to reduce <strong>of</strong>
poverty as well as help to solve environmental and resource management issues. This is particularly
so for <strong>the</strong> social landscape in Thailand, where <strong>the</strong>re is a relatively high inequality <strong>of</strong> income
distribution (CIA, 2006). To counter this inequality, <strong>the</strong> Royal Projects were setup in 1951. Despite this
heritage, <strong>the</strong>re is currently no formal knowledge management process within <strong>the</strong> Royal Project
framework and <strong>the</strong> projects are <strong>the</strong>refore not maximizing <strong>the</strong>ir potential. The result is that <strong>the</strong>re is a
need to effectively structure, store, share and reuse knowledge generated by <strong>the</strong> Royal Projects. This
paper aims to develop a data ontology to effectively meet <strong>the</strong> needs <strong>of</strong> one Royal Project in
structuring, storing, sharing and reusing knowledge. If successful, such an ontology may be applied to
o<strong>the</strong>r Royal Projects across Thailand.
1.1 The Royal Projects
There are more than 4,000 Royal Initiative Projects. The knowledge and practical experience from
<strong>the</strong>se projects is implemented across different geographic areas <strong>of</strong> Thailand, to promote local
development. The objectives <strong>of</strong> <strong>the</strong> Royal Initiative Projects focus on self-sufficiency and
environmentally friendly farming. Knowledge gained from <strong>the</strong> projects can be divided into six
dimensions: land, water, forestry, agriculture, environment and alternative energy. The Royal Initiative
Projects create substantial amounts <strong>of</strong> valuable knowledge and individual practical experience, which
is crucial in streng<strong>the</strong>ning communities. This knowledge can be applied to <strong>the</strong> various social
landscapes <strong>of</strong> Thailand; for example, knowledge from Huai Hong Krai Royal Development Study
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Jirawit Yanchinda et al.
Center, has been used to increase agricultural output and in turn reduce poverty for local
communities. Knowledge from <strong>the</strong> Royal Projects has encouraged grass roots development, which
has in turn promoted sustainable and successful community development. Traditionally, knowledge
from <strong>the</strong> Royal Projects has been utilized in a piecemeal way at local geographic scales. This has led
to duplication in effort and <strong>the</strong> full potential <strong>of</strong> project knowledge not being realized.
The requirement to store, reuse, and share knowledge means a method is needed to structure
knowledge from multiple projects via a knowledge management system (KMS), so that ultimately,
Royal Project knowledge can be effectively shared and reused in order to solve rural community
problems. Fur<strong>the</strong>rmore, local communities can learn from collaborative and expert experience to
create new solutions to problems. Accordingly, <strong>the</strong> research question addressed by this work is, how
can Royal Project knowledge be managed and extended to o<strong>the</strong>r social landscapes across Thailand?
This research introduces an ontological based-knowledge management framework with <strong>the</strong> objective
<strong>of</strong> using a knowledge engineering approach to provide information and knowledge management to
support <strong>the</strong> Royal Initiative Project. This study utilizes a case study focusing on <strong>the</strong> Chaipattana
Aerator Project. The Chaipattana Aerator is a patented invention known worldwide for its
effectiveness in increasing oxygenation to reduce water pollution and is particularly useful in rural
areas and communities. This research constructs knowledge <strong>of</strong> <strong>the</strong> Chaipattana Aerator Project by
extracting key ideas from <strong>the</strong> King <strong>of</strong> Thailand’s principle, essence and practice concepts as
ontological categories. These three concepts relate to <strong>the</strong> central philosophies <strong>of</strong> <strong>the</strong> Royal Project
and in parallel to <strong>the</strong>se philosophies, three formal ontological categories are developed using
CommonKADS. The principle, essence, and practice concepts as well as <strong>the</strong> corresponding
ontological domains are explained in more detail in <strong>the</strong> methodology section <strong>of</strong> this paper. Before
considering ontological development in this research, it is necessary to outline and describe fur<strong>the</strong>r
what is meant by <strong>the</strong> term ‘knowledge’, particularly as it applies to <strong>the</strong> Royal Initiative Projects.
1.2 Knowledge management
There are two types <strong>of</strong> knowledge, namely tacit and explicit knowledge (Nonaka 1994). Tacit
knowledge is latent knowledge stored in human beings, which is essentially knowledge gained
through experience, while explicit knowledge is in <strong>the</strong> form <strong>of</strong> documentation, for example technical
papers, textbooks, or operations manuals. With <strong>the</strong> right knowledge management system (KMS) this
knowledge could be shared, applied and used among communities via collaborative technology at
anytime and anywhere.
Knowledge management is <strong>the</strong> practice <strong>of</strong> using concepts and processes that are important to
knowledge identification, acquisition, storage, and retrieval, including knowledge utilization,
knowledge transfer/distribution/sharing, and new knowledge creation (Somnuk et al. 2010). Figure 1
shows a cycle <strong>of</strong> knowledge management processes and illustrates that knowledge management is a
toolset or framework, which is used in a variety <strong>of</strong> applications to improve an organization’s
knowledge.
Figure 1: Effectiveness <strong>of</strong> <strong>the</strong> knowledge management process in a Community <strong>of</strong> Practice (CoP)
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Jirawit Yanchinda et al.
In <strong>the</strong> knowledge management process, knowledge acquisition is <strong>the</strong> initial step, which emphasizes
expert human knowledge capability in organizations (Nonaka 1994; Birkinshaw and Shechan 2002).
Knowledge acquisition is a method <strong>of</strong> learning, which involves complex cognitive processes,
perception, learning and reasoning. The acquisition <strong>of</strong> knowledge can be derived from human
experts, books, work practices, documentation <strong>of</strong> various knowledge and external knowledge
resources, i.e. environmental data, clients’ data, competitors’ data and o<strong>the</strong>r resources including
external benchmarking (Marquarde 1996; Zack 1999). Organizations require knowledge acquisition
that is useful in <strong>the</strong>ir organizational vision and strategies (Probst et al. 2000).The Royal Initiative
Projects acquire comprehensive knowledge but do not currently share and reuse knowledge
effectively, meaning tacit knowledge from <strong>the</strong> Royal Project Officers could be harnessed to reduce
project costs and improve project quality. Both quantitative and qualitative measurements <strong>of</strong>
knowledge affect <strong>the</strong> knowledge acquisition capability (Freeze 2006). Information technology and
organizational structure, including leadership and existing organizational culture, are considered as
vital organizational resources to support and make knowledge acquisition and accessibility efficient
(Hendriks 2001; Gold et al. 2001; Vouros 2003; Peachey 2006). Fur<strong>the</strong>rmore, best practices or
benchmarking are utilized to make knowledge acquisition effective (Davenport et al. 1998). The
knowledge acquisition process aims to elicit knowledge, analyze concepts and formalize domain
knowledge via appropriate structures known as ontologies. The Royal Initiative Projects require a
suitable ontology to successfully store, share and reuse knowledge.
1.3 Ontology
Recently, ontology has been used in a wide variety <strong>of</strong> research (e.g. Anumba et al. 2008; Chou et al.
2008; Saito et al. 2007). Ontology is a shared common language or vocabulary which describes how
things are organized in a particular domain and provides a shared common understanding <strong>of</strong> <strong>the</strong>
relationship between people and computer (Uschold et al. 1996). Additionally, ontology eliminates <strong>the</strong>
problems <strong>of</strong> conflicting meanings and terms during content retrieval. The role <strong>of</strong> ontology is to
promote <strong>the</strong> reuse <strong>of</strong> knowledge structures in <strong>the</strong> form <strong>of</strong> ontological libraries. The main objective <strong>of</strong>
an ontological library is <strong>the</strong> description <strong>of</strong> knowledge conceptualization related to large amounts <strong>of</strong>
domain knowledge. This study develops ontologies <strong>of</strong> knowledge gained from <strong>the</strong> Chaipattana
Aerator project for high school students in remote areas <strong>of</strong> Thailand. Structured knowledge could be
more useful and effective for students to learn from and apply to develop <strong>the</strong>ir communities. In this
context, a formal ontology is used to provide benefits, by sharing and reusing knowledge <strong>of</strong> <strong>the</strong>
Chaipattana Aerator among Royal Project Officers and high school students. The knowledge from <strong>the</strong>
Royal Project Officers’ experience, which is scattered in different areas <strong>of</strong> Thailand, could be
ga<strong>the</strong>red, shared and reused via appropriate ontological knowledge management tools. This could
improve management performance in multiple Royal Initiative Projects. The methodology in this
research utilized ontology-based knowledge management to capture, share and apply Royal Project
knowledge from <strong>the</strong> Chaipattana Aerator Royal Project.
2. Methodology
Ontological development in this study relies on expert opinions in <strong>the</strong> form <strong>of</strong> <strong>the</strong> principle, essence,
and practice components <strong>of</strong> <strong>the</strong> Chaipattana Aerator project based on <strong>the</strong> King <strong>of</strong> Thailand’s working
concepts. Ontological development was conceptualized through <strong>the</strong> process <strong>of</strong> knowledge
engineering. Knowledge engineering is a means <strong>of</strong> mining and extracting knowledge from experts and
can be seen as encompassing methods and techniques for knowledge use, acquisition, modeling and
representation (Schreiber et al. 2000). Many knowledge engineering methodologies have been
developed over <strong>the</strong> years e.g. CommonKADS (Schreiber et al. 2000), Protégé (Gennari et al. 2003),
MIKE (Angele et al. 1998), and MOKA (Martine 1999). This research focuses on CommonKADS,
which is one <strong>of</strong> <strong>the</strong> most widely used knowledge engineering methodologies. Before considering <strong>the</strong>
methodological detail <strong>of</strong> this research, CommonKADS is introduced in order to provide <strong>the</strong> necessary
context.
CommonKADS enables opportunities and recognizes bottlenecks in how organizations develop,
distribute, and apply <strong>the</strong>ir knowledge resources and is an approach <strong>of</strong>ten used in corporate
knowledge management. Fur<strong>the</strong>rmore, CommonKADS provides <strong>the</strong> methods to perform detailed
analyses <strong>of</strong> knowledge-intensive tasks and processes. One <strong>of</strong> <strong>the</strong> main criticisms associated with
existing knowledge engineering methodologies is <strong>the</strong> steep learning curve due to complexities
associated with <strong>the</strong> methodology, and language used for knowledge representation. Ontologies are
well understood by <strong>the</strong> knowledge engineering community and used in all methodologies to represent
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domain knowledge. CommonKADS uses ontologies only for <strong>the</strong> representation <strong>of</strong> such domain
knowledge. In this study, ontologies are created that contain template models proposed by
CommonKADS, so that <strong>the</strong>y can be easily shared and used.
Ontology can be considered as a method to classify domain knowledge for facilitating knowledge
retrieval, storage, sharing, and dissemination within a Knowledge Management System (KMS), but
<strong>the</strong>re is still a need for <strong>the</strong> KMS to enable knowledge workers to have ready access to <strong>the</strong>
organization's documented base, or repository <strong>of</strong> facts, information, and solutions. Not every Royal
Project has Internet access and <strong>the</strong>refore structuring knowledge before designing and delivering a
relevant knowledge package can be considered more important than those projects where an
electronically-based KMS system allow frequent and easy updating <strong>of</strong> <strong>the</strong> knowledge package.
Ontology creation and representation in this research, uses a CommonKADS approach to syn<strong>the</strong>size
knowledge and utilizes ontology as <strong>the</strong> main mechanism to represent this information and knowledge,
with <strong>the</strong> ultimate aim <strong>of</strong> producing a knowledge package for dissemination to remote communities.
Figure 2 conceptualizes <strong>the</strong> methodology used in <strong>the</strong> research and outlines <strong>the</strong> four main stages in
creating an ontology for <strong>the</strong> Chaipattana Aerator Royal Project. These stages, along with
methodological detail are <strong>the</strong>n described below.
Figure 2: The framework <strong>of</strong> <strong>the</strong> methodology involves four main steps, with <strong>the</strong> ultimate stage being
creation <strong>of</strong> a knowledge package, this research focuses on <strong>the</strong> first three stages, with stage
four representing a future part <strong>of</strong> <strong>the</strong> work
2.1 Stage one: Knowledge capture
This stage involved <strong>the</strong> review and collection <strong>of</strong> existing knowledge <strong>of</strong> <strong>the</strong> Chaipattana Aerator. All
documents currently available on <strong>the</strong> Royal Project Foundation website were collected and reviewed
prior to categorization. Documents included manuals, scientific documents and patents.
2.2 Stage two: Knowledge classification
In this stage, <strong>the</strong> knowledge collected in stage one was classified according to <strong>the</strong> King <strong>of</strong> Thailand’s
working concepts <strong>of</strong> principle, essence, and practice. The principle working concept is for <strong>the</strong>oretical
and general knowledge generated by <strong>the</strong> Royal Projects. The essence working concept’s main idea is
to apply knowledge to solve problems for Thai citizens. The practice working concept is to understand
problems and access requirements <strong>of</strong> people and <strong>the</strong>n provide a solution, so that people can create
knowledge in order to develop <strong>the</strong>ir community. These working concepts were used as categories to
develop <strong>the</strong> ontologies in this research to store and share knowledge for high school students in order
to reach a common understanding about <strong>the</strong> Royal Projects. The principle, essence and practice
concepts have specific meaning when applied to this project and are described as follows:
Principle defines conceptualization <strong>of</strong> <strong>the</strong> Chaipattana Aerator construction.
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Essence defines reusable knowledge and <strong>the</strong> advantages <strong>of</strong> <strong>the</strong> Chaipattana Aerator through
particular domain knowledge e.g. oxygenation.
Practice describes solving problems associated with <strong>the</strong> structure <strong>of</strong> <strong>the</strong> King <strong>of</strong> Thailand’s
working concepts.
2.3 Stage three: Ontological development
This step <strong>of</strong> <strong>the</strong> methodology developed an ontology and knowledge model using CommonKADS.
The CommonKADS model has variety <strong>of</strong> components such as <strong>the</strong> organization model, task model,
agent model, knowledge model, communication model and design model. This research focuses on
<strong>the</strong> knowledge model to structure <strong>the</strong> Chaipattana Aerator knowledge based on three main ontologies
derived from <strong>the</strong> principle, essence and practice concepts.
Each <strong>of</strong> <strong>the</strong> main categories was modeled by CommonKADS into three corresponding parts, task
knowledge, inference knowledge and domain knowledge. The three main parts are linked to task
knowledge, which describes <strong>the</strong> knowledge-intensive tasks <strong>of</strong> <strong>the</strong> Chaipattana Aerator, inference
knowledge, which describes using knowledge to carry out <strong>the</strong> reasoning process, and domain
knowledge, which refers to knowledge <strong>of</strong> human experts based on <strong>the</strong>ir experiences.
2.4 Stage four: Creating a knowledge package
This stage is <strong>the</strong> final step in <strong>the</strong> process but is beyond <strong>the</strong> remit <strong>of</strong> this paper and is limited to a
discussion <strong>of</strong> potential research in creating such knowledge packages.
3. Results
After following stages one, two, and three in <strong>the</strong> methodology, <strong>the</strong> knowledge model was created from
<strong>the</strong> task, inference and domain template <strong>of</strong> CommonKADS (As shown in Figure 3). The results follow
<strong>the</strong> principle, essence and practice concepts <strong>of</strong> <strong>the</strong> Royal Project.
Knowledge Model
Task
Inference
Domain
Figure 3: Knowledge model
The first defined category in <strong>the</strong> knowledge model was principle, which conceptualized <strong>the</strong>
Chaipattana Aerator construction. Second, <strong>the</strong> essence concept defined reusable knowledge and <strong>the</strong>
advantages <strong>of</strong> <strong>the</strong> Chaipattana Aerator in particular knowledge domains (e.g. oxygenation). Lastly,
<strong>the</strong> practice concept describes problem solving structures <strong>of</strong> His Majesty <strong>the</strong> King <strong>of</strong> Thailand’s
working concepts. (Figure 4)
3.1 Principle concept
The principle concept was set as a knowledge intensive-task for conceptualizing <strong>the</strong> Chaipattana
Aerator construction. The principle defined four key inferences <strong>of</strong> knowledge, which are oxygenation,
interfacial area, calculation <strong>of</strong> parameters and finally, performance <strong>of</strong> <strong>the</strong> aerator (Figure 5). These
four inferences are useful for high school students to understand which <strong>the</strong>ory (principle, essence,
practice) <strong>the</strong> King <strong>of</strong> Thailand used to construct <strong>the</strong> Chaipattana Aerator. While many inferences may
have been used in constructing <strong>the</strong> Aerator, <strong>the</strong> four shown in Figure 5 are <strong>the</strong> key components. The
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ontology <strong>the</strong>refore makes it easier for high school students to learn about <strong>the</strong> Aerator as <strong>the</strong>
knowledge has been clearly separated into four distinct areas.
Figure 4: The three main categories <strong>of</strong> <strong>the</strong> Chaipattana Aerator project
Figure 5: Principle concept as it relates to <strong>the</strong> knowledge model
Regarding <strong>the</strong> knowledge modeling results, Figure 6, illustrates domain knowledge or ontology related
to <strong>the</strong> oxygenation principle <strong>of</strong> <strong>the</strong> Chaipattana Aerator. In this figure, <strong>the</strong> class hierarchy <strong>of</strong>
oxygenation is explained. The oxygenation domain knowledge defined <strong>the</strong> “adding air” to polluted
water processes <strong>of</strong> <strong>the</strong> Chaipattana Aerator in order to increase <strong>the</strong> effectiveness in transferring
oxygen. This knowledge structure facilitates sharing and reuse <strong>of</strong> knowledge for Royal Officers and
high school students so <strong>the</strong>y can modify and develop <strong>the</strong> aerator.
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Figure 6: Domain knowledge regarding <strong>the</strong> oxygenation principle from <strong>the</strong> “Oxygenation or Aeration”
inference
Figure 7, illustrates domain knowledge related to <strong>the</strong> interfacial area inference <strong>of</strong> <strong>the</strong> Chaipattana
Aerator. The Chaipattana water buckets are uniquely designed with <strong>the</strong> front surface open to allow
water into <strong>the</strong> aerator. The device’s bucket has two back surfaces, with one <strong>of</strong> <strong>the</strong>se back surfaces
fully closed while <strong>the</strong> bottom side has a rear surface which is punched with numerous holes so water
can drop back down and mix with air. This principle is defined as domain knowledge <strong>of</strong> <strong>the</strong> interfacial
area <strong>of</strong> <strong>the</strong> Chaipattana Aerator, which identifies <strong>the</strong> significance <strong>of</strong> <strong>the</strong> King <strong>of</strong> Thailand’s idea in
designing <strong>the</strong> aerator bucket. The Royal Officers and high school students can share this domain
knowledge to develop and enhance <strong>the</strong> aerator bucket design for <strong>the</strong>ir community.
Figure 7: Domain knowledge <strong>of</strong> <strong>the</strong> interfacial principle
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The calculation parameter values are shown in Figure 8. All parameter values <strong>of</strong> qualifying waste
water should be calculated before <strong>the</strong> Chaipattana Aerator is installed into waste water in order to
appropriately design aerator construction and to determine <strong>the</strong> number <strong>of</strong> constructed aerators
required in specific waste water. The decision to set up a Chaipattana Aerator system for a particular
community depends on a primary investigation <strong>of</strong> <strong>the</strong> water quality with Biological Oxygen Demand
(BOD) requirements <strong>of</strong> more than 20 milligrams/liter and not less than 150 milligrams/liter, while total
nitrogen should be less than 20 milligrams/liter. From this domain knowledge, <strong>the</strong> school students
learn that when <strong>the</strong>y want to install any instruments or equipment, <strong>the</strong>y should first study
environmental parameters so that <strong>the</strong>y can compare conditions before and after in order to determine
<strong>the</strong> effectiveness <strong>of</strong> <strong>the</strong> aerator.
Figure 8: Domain knowledge on <strong>the</strong> calculation <strong>of</strong> environmental parameters
A set <strong>of</strong> testing and installation methods and installation used by experts in constructing <strong>the</strong>
Chaipattana Aerator is shown in Figure 9. The Chaipattana Foundation provides a planning system
and technology for water development projects in <strong>the</strong> public and private sectors and disseminates this
in order to solve environmental problems (<strong>the</strong> expenses being borne by <strong>the</strong> public and private
sectors). The aerator was first designed to treat and study polluted water, as well as research and
develop waste treatment systems. In addition, <strong>the</strong> aerator is effective in improving <strong>the</strong> quality <strong>of</strong> water,
being easy to install and transport from one location to ano<strong>the</strong>r. It is suitable for treating waste water
in natural water such as ponds, swamps, creeks or canals in which <strong>the</strong> depth is more than one meter
and <strong>the</strong> width more than three meters.
There is a significant amount <strong>of</strong> knowledge in <strong>the</strong> essence concept that is appropriate for high school
students. The students can learn more about <strong>the</strong> oxygenation processes from this concept to improve
<strong>the</strong> aerator. The Chaipattana Aerator is unique in holding a patent for its four-step process in
oxygenation. O<strong>the</strong>r similar aerators usually have only one or two steps in <strong>the</strong> oxygenation process.
The essence concept defines this reusable knowledge and <strong>the</strong> advantages <strong>of</strong> <strong>the</strong> Chaipattana Aerator
with regards to particular domain knowledge (e.g. oxygenation). The Chaipattana Aerator has four
oxygenation steps (Figures 10 and 11) that are:
The Chaipattana Aerator can spray waste water above <strong>the</strong> water surface at a height <strong>of</strong> one
meter, where <strong>the</strong> first oxygenation occurs.
The second oxygenation occurs in compressing <strong>the</strong> bucket under <strong>the</strong> water surface when <strong>the</strong>
bucket contains oxygen from <strong>the</strong> air. When <strong>the</strong> bucket completely submerges
oxygen molecule diffuse into <strong>the</strong> water.
<strong>the</strong> vapor
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Propelling water is <strong>the</strong> third oxygenation step where this model pushes <strong>the</strong> dissolved oxygen
water away from <strong>the</strong> aerator at a distance <strong>of</strong> 10 meters which increases <strong>the</strong> effectiveness in
transferring oxygen to water.
The fourth step involves scooping waste water at a depth <strong>of</strong> 0.50 meters below <strong>the</strong> surface
water. At a depth <strong>of</strong> 0.50 meters, this level is lower than <strong>the</strong> water surface. Thus, this scoops
waste water at 0.50 meters depth in order to add oxygen to <strong>the</strong> water effectively.
Figure 9: Domain knowledge on <strong>the</strong> interfacial principle
3.2 Essence concept
Figure 10: Essence concept knowledge model
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Figure 11: The four oxygenation steps <strong>of</strong> <strong>the</strong> Chaipattana Aerator
3.3 Practice concept
Practice describes a problem solving structure based on <strong>the</strong> King <strong>of</strong> Thailand’s working concepts.
(Figure 12)
Figure 12: Practice concept knowledge model
For <strong>the</strong> initiation and implementation <strong>of</strong> <strong>the</strong> Chaipattana Aerator, this study found that <strong>the</strong> King <strong>of</strong>
Thailand started with a systematic study, which included local problems, oxidation <strong>the</strong>ory, waste water
parameters, and construction <strong>of</strong> <strong>the</strong> aerator. To solve <strong>the</strong>se problems, <strong>the</strong> King needed to understand
local people and problems, before accessing <strong>the</strong> community in order to develop local areas and solve
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problems. The most important <strong>of</strong> <strong>the</strong> King’s working concepts promotes cost-saving, simple ra<strong>the</strong>r
than complex tools and utilizing <strong>the</strong> most effective methodology for problem-solving. Consequently,
<strong>the</strong> Chaipattana Aerator model was modified from <strong>the</strong> functionality <strong>of</strong> “Luk” which is a device made
from local wisdom used for scooping water into rice paddy fields. This initiative reflects <strong>the</strong> King’s
strong desire to solve problems in a simple and cost-saving way.
4. Discussion and conclusion
In this framework, ontology-based knowledge management focuses on providing knowledge support
for construction <strong>of</strong> <strong>the</strong> Chaipattana Aerator. The framework focuses on integration <strong>of</strong> two forms <strong>of</strong>
knowledge, firstly, <strong>the</strong> principle, essence, and practice concepts, and secondly, ontologies. The
ontological categories were based on <strong>the</strong> King <strong>of</strong> Thailand’s working concepts in order to effectively
structure knowledge <strong>of</strong> <strong>the</strong> Chaipattana Aerator.
This study has focused on capturing and representing knowledge found in <strong>the</strong> logic and structure <strong>of</strong>
Chaipattana Aerator knowledge through ontology-based knowledge management. This research aims
at capturing domain knowledge in a generic way and through a commonly agreed understanding <strong>of</strong>
domain, which can be shared, reused, and operationalized across communities. The ontologies
contain ideas within <strong>the</strong> principle, essence and practice concepts and <strong>the</strong> relations between <strong>the</strong>m.
This study has developed ontology enabled annotation and knowledge management with a
perspective on provision <strong>of</strong> a knowledge package. In this paper, ontologies provide a means for
knowledge acquisition and modeling <strong>of</strong> <strong>the</strong> relevant Chaipattana Aerator oxygenation knowledge.
Specifically, ontologies are developed based on existing Chaipattana Aerator construction
documents.
Although ontologies can be advantageous in numerous ways, this study emphasized <strong>the</strong> benefits <strong>of</strong>
ontologies in supporting knowledge for high school students and Royal Project Officers. The resulting
knowledge package should relate <strong>the</strong> basic entities defined in <strong>the</strong> ontologies with text and images
which support enhanced understanding <strong>of</strong> <strong>the</strong> ontology construction.
The most important role <strong>of</strong> ontology based knowledge management is to enable and to enhance
knowledge sharing and reusing. This study has focused on ontology creation by using a
CommonKADS methodology, which provides tools to support <strong>the</strong> structuring <strong>of</strong> knowledge. This
knowledge structure will facilitate storage, sharing and reuse <strong>of</strong> knowledge for Royal Project Officers
and high school students in order to understand <strong>the</strong> Chaipattana Aerator and Royal Project
knowledge, through <strong>the</strong> lens <strong>of</strong> <strong>the</strong> King <strong>of</strong> Thailand’s working concepts. Structuring knowledge
acquisition and sharing this knowledge between <strong>the</strong> Royal Initiative Projects will solve <strong>the</strong> problem <strong>of</strong>
knowledge loss and misunderstanding between different local areas and different Royal Projects.
High school students can learn from this knowledge structure to improve and develop <strong>the</strong>ir
communities.
Ultimately, while this research has shown that <strong>the</strong>re is potential for an ontology to enable effective
storage, sharing and reuse <strong>of</strong> Chaipattana Aerator knowledge, <strong>the</strong>re is still a requirement to package
this knowledge in a suitable way for key knowledge stakeholders, such as <strong>the</strong> high-school students or
Royal Project Officers. While knowledge packages are beyond <strong>the</strong> remit set out in this paper, <strong>the</strong>
ontology that has been suggested and described facilitates <strong>the</strong> design and development <strong>of</strong> such a
package. Future research will focus more closely on linking ontologies with suitable knowledge
delivery packages.
Acknowledgements
The authors would like to acknowledge Chiang Mai University and College <strong>of</strong> Arts, Media, and
Technology as well as <strong>the</strong> Graduate School <strong>of</strong> Chiang Mai University who supported <strong>the</strong> lead author’s
work through a scholarship.
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817

Knowledge Management in <strong>the</strong> East: A Chinese
Manufacturing Case Study
Lei Ye, David Tweed and Paul Toulson
Massey University, Palmerston North, New Zealand
L.Ye1@massey.ac.nz
D.M.Tweed@massey.ac.nz
P.Toulson@massey.ac.nz
Abstract: In recent years knowledge management (KM) importance has been recognised, but studies have
focused on its impact in large, ra<strong>the</strong>r than in small and medium enterprises (SMEs). SMEs in China are now a
major factor in <strong>the</strong> Chinese economy. Since 99.8% <strong>of</strong> Chinese enterprises are SMEs providing 75% <strong>of</strong> job
opportunities, so KM’s impact on <strong>the</strong>m is important. The unique Chinese culture <strong>of</strong> Confucianism results in
Chinese and Western people’s perceptions <strong>of</strong> <strong>the</strong> world as different, which affects <strong>the</strong> ways that business is
conducted. Some management practices (like social networks and oral agreements with employees or business
partners) are unique to Chinese businesses. The concept <strong>of</strong> social capital in KM suggests that it can provide
SMEs access to knowledge. Guanxi (<strong>the</strong> Chinese term for social networks with government <strong>of</strong>ficials, business
partners, or employees) is part <strong>of</strong> an SME’s intangible assets, which o<strong>the</strong>rs cannot imitate. How <strong>the</strong>se intangible
assets are used by Chinese SME owners’ is an essential component in <strong>the</strong>ir businesses’ growth. Previous SME
research suggests that most owners use traditional culture as informal KM, but <strong>the</strong>y fail to pass this knowledge
on to <strong>the</strong>ir employees. This case study provides an example <strong>of</strong> how an SME business has utilised Confucianism,
as KM. This owner dedicates himself to traditional culture by adopting formal KM tools and techniques to bring
this knowledge to his employees. Since establishing this, <strong>the</strong> firm has become <strong>the</strong> largest world supplier <strong>of</strong> steel
shovels. Employee quality has improved and turnover is now very low. The owner has successfully shared,
transferred, and applied this knowledge to <strong>the</strong> entire business. This case study shows that KM can bring benefits
to both knowledge and labour-intensive SMEs, where employee quality and turnover have a direct impact on
business operating costs. The case study explains why KM in Chinese SMEs is implemented only by <strong>the</strong> top
level, ra<strong>the</strong>r than all levels. First, Chinese SME owners do not recognise that <strong>the</strong> assimilation <strong>of</strong> traditional culture
is part <strong>of</strong> <strong>the</strong> firm’s intangible assets. In SMEs, <strong>the</strong> degree <strong>of</strong> business owners’ knowledge assimilation impacts
on <strong>the</strong>ir intention to bring KM techniques into <strong>the</strong> businesses. Second, <strong>the</strong>re is no transformation process to bring
knowledge to <strong>the</strong> employees, since owners do not realise that KM is an intangible asset bringing benefit to <strong>the</strong>ir
businesses. Consequently, knowledge sharing between owners and employees is very limited in Chinese SMEs,
especially in <strong>the</strong> manufacturing industry.
Keywords: confucianism; Chinese SMEs; knowledge management
1. Introduction
China’s development over <strong>the</strong> last 30 years has been called <strong>the</strong> China miracle. The government’s
open door policy, outcomes <strong>of</strong> <strong>the</strong> 1970’s reforms have resulted in economic, social, and cultural
changes to <strong>the</strong> Chinese people. China’s gross domestic product (GDP) has grown from 10 th to 2 nd in
international ranking during <strong>the</strong> 1978 and 2010 period. The average GDP growth rate from 1979 to
2010 was around 9.8% percent (Li, 2011; “NBS”, 2008). Chinese small to medium enterprises (SMEs)
have also experienced growth in numbers and are now a major player in <strong>the</strong> Chinese economy.
According to H<strong>of</strong>stede (1991), Chinese culture is collectivistic and long-term oriented. Culture reflects
<strong>the</strong> life and thought <strong>of</strong> people in a country. Chinese culture is recognised for its unique characteristics.
Liu (2009) suggests that, in China, Confucianism has been <strong>the</strong> most important influence in Chinese
civilisation over <strong>the</strong> past 2,000 years and it has become <strong>the</strong> dominant social, political, commercial,
and educational way <strong>of</strong> thinking since <strong>the</strong> Han Dynasty (206 BC to AD 220). Although traditional
Chinese culture was forbidden and replaced by <strong>the</strong> Communist ideology in <strong>the</strong> Cultural Revolution <strong>of</strong>
<strong>the</strong> 1970s, <strong>the</strong> fourth generation <strong>of</strong> Chinese leadership has changed its attitude towards Confucianism
and has re-embraced its philosophy. The government has declared its priority as building a
harmonious society, which is fundamental to Confucianism. The growth <strong>of</strong> globalisation and <strong>the</strong>
increase in <strong>the</strong> number <strong>of</strong> Chinese children educated in <strong>the</strong> West has helped Chinese business
owners to bring Western management techniques into <strong>the</strong>ir businesses. The value <strong>of</strong> human capital is
also recognised by Chinese businesses. Although Chinese business owners use traditional Confucian
thinking like treating employees as family members, none have transformed and used Confucianism
as a formal KM mechanism. The question is how can Confucianism help Chinese SMEs reduce
human capital costs and improve competitive advantage.
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To describe <strong>the</strong> impact <strong>of</strong> Confucianism on Chinese SMEs, <strong>the</strong> YN Company is analysed as a case
study. This represents a new way <strong>of</strong> thinking for Chinese business owners by combining both
traditional Chinese values and Western management ideas. It also illustrates <strong>the</strong> benefits for Chinese
businesses in so doing.
1.1 The growth <strong>of</strong> Chinese businesses and Chinese SMEs
The economic development <strong>of</strong> China was marked by a dramatic change since <strong>the</strong> Third Plenary
Session <strong>of</strong> <strong>the</strong> 1978 11 th Central Committee <strong>of</strong> Communist Party <strong>of</strong> China (CCCPC). This has
involved <strong>the</strong> gradual replacement <strong>of</strong> a centrally-controlled economy by a market-oriented system.
China’s economic growth is credited to <strong>the</strong> development <strong>of</strong> <strong>the</strong> non state-controlled sector. Wu (2009)
suggests two important steps have been adopted by <strong>the</strong> government to support <strong>the</strong> growth <strong>of</strong> non
state-owned and controlled businesses. First, in 1983 <strong>the</strong> Chinese government recognised privatelyowned
business as a legitimate economic component, resulting in dramatic growth in private
business sector. Second, <strong>the</strong> open-door policy adopted under Deng Xiaoping’s leadership has seen
<strong>the</strong> establishment <strong>of</strong> special economic zones. These have helped China re-connect with <strong>the</strong> outside
world with <strong>the</strong> importation <strong>of</strong> advanced technologies and knowledge. Along with government policies
that have increasingly emphasised <strong>the</strong> non state sector, both <strong>the</strong> number and status <strong>of</strong> SMEs has
risen dramatically. By <strong>the</strong> end <strong>of</strong> 2009, 99.8 percent <strong>of</strong> all Chinese businesses were SMEs. The
number <strong>of</strong> SMEs went from 2.2 million in 1980 (Wang, 2004) to more than 42 million in 2009 (Li,
2010). State-owned SMEs in 1980s accounted for 40 percent <strong>of</strong> all businesses. This percentage had
reduced to three percent by <strong>the</strong> end <strong>of</strong> 2009. SMEs accounted for at least 96 percent <strong>of</strong> businesses
and absorbed at least 80 percent <strong>of</strong> employment in all seven sectors in 2009 (Li, 2010). For <strong>the</strong>
definition <strong>of</strong> SMEs, China adopts industry-specific criteria summarised in Table 1.
Table 1: Industry-specific criteria for Chinese SMEs
Sector Employment Annual revenue (million) Total assets (million)
Manufacturing Medium: 300 - 2,000 3,000 – 30,000 4,000 – 40,000
Construction
Wholesale
Retail
Transportation
Post
Hotel and restaurant
Small: < 30 < 3,000 < 4,000
Medium: 600 – 3,000 3,000 – 30,000 4,000 – 40,000
Small: < 600 < 3,000 < 4,000
Medium: 100 – 500 3,000 – 30,000 Non specified (N/S)
Small: < 100 < 3,000 N/S
Medium: < 100 – 500 1,000 – 15,000 N/S
Small: < 100 < 1,000 N/S
Medium: 500 – 3,000 3,000 – 30,000 N/S
Small: < 500 < 3,000 N/S
Medium: 400 – 1,000 3,000 – 30,000 N/S
Small: < 400 < 3,000 N/S
Medium: 400 – 800 3,000 – 15,000 N/S
Small: < 400 < 3,000 N/S
1.2 Traditional Chinese culture and its implications for Chinese businesses
Boisot & Liang (1992) suggest that management in China is an ‘art’, intertwined with specific Chinese
ideology and governance. So it is important to look at <strong>the</strong> impact <strong>of</strong> traditional Chinese culture on
Chinese businesses. In Confucianism, <strong>the</strong> only rational and true basis <strong>of</strong> a society and civilisation is
<strong>the</strong> way <strong>of</strong> <strong>the</strong> superior man. It is translated literally in English as <strong>the</strong> law <strong>of</strong> <strong>the</strong> gentleman. The
nearest equivalent English meaning <strong>of</strong> this is moral law (Ku, 1915). Thus, under Confucianism, <strong>the</strong>
conduct <strong>of</strong> people’s affairs is based on morality or <strong>the</strong> law <strong>of</strong> <strong>the</strong> gentleman Enacted laws and
regulations are not necessary. However, a gentleman requires five virtues: benevolence,
righteousness, politeness, wisdom, and trustworthiness. These virtues apply in all social relationships,
and Confucianism categorises all human relationships into five cardinal relationships: fa<strong>the</strong>r – son,
ruler – ruled, husband – wife, bro<strong>the</strong>r – bro<strong>the</strong>r, and friend – friend. H<strong>of</strong>stede and Bond (1988)
suggest that an ideal Confucian society is harmonious and stable through established hierarchy
where each individual fulfils duties corresponding to his/her familial or societal position. Therefore,
Confucianism in Chinese society today is expresses in both explicit and implicit ways.
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Compared to <strong>the</strong> West, Chinese businessmen have different ways <strong>of</strong> conducting business. This
includes paying attention to Guanxi (social networks, or interpersonal relationships) and kinship, and
having oral agreements between business partners. Chinese business culture and social behaviour
are influenced by <strong>the</strong> concept <strong>of</strong> <strong>the</strong> five virtues and five relationships in Confucianism (Liu, 2009).
Guanxi has been a concept studied since <strong>the</strong> 1990s, and can be found in every spectrum in China.
While social networks exist in <strong>the</strong> West, <strong>the</strong> influence and importance <strong>of</strong> Guanxi in China has an
impact in all aspects <strong>of</strong> life. Guanxi is built into connections through informal/formal ways. The most
distinctive difference in interpersonal relationships between China and <strong>the</strong> West is <strong>the</strong> importance <strong>of</strong>
reciprocity. This is <strong>the</strong> giving and repaying <strong>of</strong> favours between parties. This ensures <strong>the</strong> maintenance
<strong>of</strong> long-term relationships built on trust (Yeung & Tung, 1996). Guanxi can be seen as a second
currency in China, and <strong>the</strong>re is a Chinese saying that expresses <strong>the</strong> importance <strong>of</strong> Guanxi in Chinese
businesses: who you know is more important than what you know (Wall, 1990). The establishment <strong>of</strong>
<strong>the</strong> connection with appropriate individuals or authorities means businesses are better <strong>of</strong>f as <strong>the</strong>se
are important sources <strong>of</strong> contract with o<strong>the</strong>r business partners or support from <strong>the</strong> government. Any
legal hurdles can be surmounted by <strong>of</strong>ficials (Liu, 2009). Although, SMEs are now a major force in
Chinese economic development, <strong>the</strong>ir small size and contribution to <strong>the</strong> local economy has limited
<strong>the</strong>ir attraction to local government. Therefore, SMEs have to make efforts to build Guanxi ei<strong>the</strong>r with
local government <strong>of</strong>ficials or business partners (Yeung & Tung, 1996).
1.3 Comparison <strong>of</strong> Chinese and Western (Anglo-American) management
Like <strong>the</strong> impact <strong>of</strong> traditional Confucian principles on Chinese businesses, <strong>the</strong> Greek philosopher
Aristotle’s world-view has impacted on <strong>the</strong> development <strong>of</strong> Western management principles. Aristotle
studied nature through rational classification and categorisation <strong>of</strong> natural knowledge to understand
<strong>the</strong> world (Warner, 2003). Western management <strong>the</strong>ory and practice as a knowledge discipline has
developed since 1910. The management discipline encompasses a range <strong>of</strong> subject areas
categorised by <strong>the</strong>ir differences in <strong>the</strong> natural world, like human resource management and risk
management. Comparing Chinese and Western management, key differences are shown in Table 2.
Table 2: Differences between Chinese and Western management
Area Chinese approach:
Western approach:
Relationship-based management
Rule-based management
Toward pr<strong>of</strong>its Frown upon pr<strong>of</strong>it Desire for wealth
Legal system Public law Rights-based system
Power relationships Centralisation Decentralisation
Personal relationships Trust; family kinship Formal regulations and procedures
The Chinese organisational management approach (Table 2) is relationship-focused. To have a
harmonious and stable long-term relationship internally (with employees) and externally (with
suppliers, business partners or government <strong>of</strong>ficials), Chinese businessmen see Guanxi as a critical
asset <strong>the</strong>y can use. Therefore, while <strong>the</strong> decision making in Chinese SMEs, is highly centralised by
owner/managers, <strong>the</strong> working environment is like an extended family. Western businesses, on <strong>the</strong>
o<strong>the</strong>r hand, are managed by <strong>the</strong> application <strong>of</strong> formal rules and targets; with each level <strong>of</strong> <strong>the</strong>
organisation making its own decisions based on <strong>the</strong> business strategy formulated by top
management.
1.4 Knowledge management and SMEs
Knowledge management in <strong>the</strong> West is now recognised as a key element in organisations’ value
creation and success. Knowledge-based resources are not readily copied by business competitors
because <strong>the</strong>y are tacit in nature. The impact <strong>of</strong> Western management practices on Chinese
businesses depends on <strong>the</strong>ir ownership, size, and history (Ding, Goodall, & Warner, 2000). Ding, Ge,
and Warner (2004) suggest that <strong>the</strong> size <strong>of</strong> a business is <strong>the</strong> key factor for <strong>the</strong> adoption and
implementation <strong>of</strong> HRM practices. Most large companies in China have an HRM department and use
HRM practices that are copied from those <strong>of</strong> foreign partners. However Chinese SMEs focus more on
adopting Western systems to improve <strong>the</strong>ir products’ quality standards, ra<strong>the</strong>r than Western HRM
practices. Western quality management systems have been adopted widely by SMEs to improve <strong>the</strong>ir
products’ market competitiveness. SMEs tend to use informal approaches to HRM because <strong>of</strong> time
limitations and resource constraints (Gray & Mabey, 2005).
The knowledge management (KM) process is part <strong>of</strong> SMEs’ business process (Zhou & Fink, 2003). In
SMEs this includes knowledge acquisition, conversion and application. Knowledge in SMEs tends to
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be passed on without any written documentation because <strong>of</strong> <strong>the</strong>ir informal communication culture
(Daud & Yus<strong>of</strong>f, 2010). Many SME owners believe that it is not necessary to establish a formal
system to codify, organise and store knowledge because <strong>of</strong> <strong>the</strong> limited time and resources (Wong &
Aspinwall, 2004). Compared with large businesses, <strong>the</strong>re are two advantages that SMEs have in KM.
First, due to <strong>the</strong>ir small size and simple structure, knowledge is easier to transfer and disseminate.
Second, <strong>the</strong> amount <strong>of</strong> knowledge that needs to be managed in SMEs is less than in large
businesses, so it is easier for <strong>the</strong>m to manage knowledge (Daud & Yus<strong>of</strong>f, 2010).
2. Case study method
A single case study was adopted in this paper because <strong>the</strong> YN Company is a unique example <strong>of</strong> how
Confucianism can bring positive impacts to Chinese SMEs. Four methods were employed for data
collection. These included: a face-to-face interview with <strong>the</strong> owner, a factory tour, an informal
interview with <strong>the</strong> local government <strong>of</strong>ficial, and a visit to YN’s website. After <strong>the</strong> interview with <strong>the</strong>
owner, <strong>the</strong> factory tour included a visit to YN’s production lines, its showroom, and <strong>the</strong> traditional
cultural training centre. The website <strong>of</strong> <strong>the</strong> company also represents Confucian values that are
embraced by <strong>the</strong> company. Slogans such as ‘Making friends from all over <strong>the</strong> world’ and ‘Harmonious
society starts with myself’ are shown on <strong>the</strong> home page.
The owner <strong>of</strong> <strong>the</strong> YN Company was a participant for <strong>the</strong> researcher’s PhD study, involving structured
interviews with 210 Chinese SME owners/managers. YN was founded in 1995 and currently has 300
employees. It is located in <strong>the</strong> Luannan County, which has been called <strong>the</strong> ‘hometown <strong>of</strong> <strong>the</strong> steel
shovel’ as it is <strong>the</strong> biggest steel shovel manufacturing base in China. 70 percent <strong>of</strong> steel shovels in
<strong>the</strong> Chinese and world markets are manufactured in <strong>the</strong> Luannan County. The local government
<strong>of</strong>ficial suggested that YN is one <strong>of</strong> <strong>the</strong> most successful companies in <strong>the</strong> County and unlike o<strong>the</strong>r
business owners, its owner also actively co-operates with local government in participating in public
welfare. Based on <strong>the</strong> personal interviews with o<strong>the</strong>r 209 SMEs owners, this single case has unique
characteristics, since YN is <strong>the</strong> only organisation in which <strong>the</strong> owner adopted formal KM tools to bring
Confucian values to his business. As a result <strong>of</strong> <strong>the</strong> creation <strong>of</strong> a harmonious working environment,
<strong>the</strong> company has improved its business outcomes.
3. Knowledge management in a manufacturing business
Being a farmer’s son, <strong>the</strong> owner was unable to have a good education. After finishing his studies at
primary school, he helped his parents on <strong>the</strong> farm and also worked part-time for o<strong>the</strong>r businesses.
The shovel making industry experienced an upturn in <strong>the</strong> 1980s given <strong>the</strong> great demand for its
products. With limited financial resources, <strong>the</strong> owner started a small family workshop. His business
expanded in <strong>the</strong> 1990s due to rapid growth <strong>of</strong> this industry. In 1995, <strong>the</strong> YN Company was
established and produces a variety <strong>of</strong> hand tools.
Confucian philosophies, under <strong>the</strong> owner’s leadership, have permeated every activity in this company.
Instead <strong>of</strong> advertising and branding its products, a slogan on a banner hangs from <strong>the</strong> <strong>of</strong>fice building,
which says ‘harmonious society starts with myself’. This emphasises <strong>the</strong> company’s unique culture.
The owner explained why he decided to bring Confucianism into his business:
Before 2008, <strong>the</strong> only thing I cared about was making money. Since 2008, I started
learning about Confucianism through a television programme: Baijia Luntan (a popular
TV programme where famous scholars are invited to give lectures on traditional Chinese
philosophies or classical books). As I only had a primary education, I really wanted to
learn more and increase my knowledge. I benefited much from watching <strong>the</strong> programme.
I found that traditional Chinese culture can not only teach you how to be a man, but can
also bring benefits to business. Since <strong>the</strong>n I have started to look for books and DVDs to
study traditional culture. I thought if I could learn a lot from it, so could my employees.
Most <strong>of</strong> my employees come from poor families and do not have opportunities to enjoy a
good education. Teaching <strong>the</strong>m traditional values might not only improve <strong>the</strong>ir qualities <strong>of</strong>
life but also bring benefits to <strong>the</strong> business. So I looked for training centres in traditional
culture and business management. With <strong>the</strong>ir help, I gradually brought traditional culture
into my business and made it a key ideology in developing <strong>the</strong> business and training
employees. (Personal communication, December 18, 2010)
The company has received many benefits by introducing traditional culture into <strong>the</strong> business. While
most businesses have tried hard to survive in <strong>the</strong> current financial crisis, <strong>the</strong> owner noticed <strong>the</strong> major
obstacle <strong>the</strong> company faces is being too busy, with production unable to meet demand. The
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traditional culture has played a key role in this business growth as both he and <strong>the</strong> employees have
changed attitudes towards o<strong>the</strong>r people and <strong>the</strong> way <strong>of</strong> doing business.
The major change for <strong>the</strong> employees is that <strong>the</strong>ir qualities have improved a lot. Using
Confucianism philosophy to teach <strong>the</strong> employees has helped <strong>the</strong>m to see <strong>the</strong> company
as a big family. Only when <strong>the</strong> family becomes prosperous can <strong>the</strong>y, as family members,
enjoy <strong>the</strong> honour. The mentality <strong>of</strong> selfishness has been replaced by caring for each
o<strong>the</strong>r. For myself, I found that money is not everything. Many business owners have paid
too much attention to making money. My understanding <strong>of</strong> <strong>the</strong> concept <strong>of</strong> harmony is that
first you should have a pain, <strong>the</strong>n you can have a gain. As a business owner, you must
follow <strong>the</strong> business norms and moral principles for being a man in order to attain wealth
and pr<strong>of</strong>its. Nowadays, people are too impetuous and morality is disappearing. Only
traditional culture can teach people <strong>the</strong> importance <strong>of</strong> being righteous men and also help
to create a harmonious society, which will help businesses to have fur<strong>the</strong>r growth and
society to make progress. (Personal communication, December 18, 2010)
By bringing traditional culture into <strong>the</strong> business, <strong>the</strong> owner believes that employee turnover has
reduced. To create a family-like environment, <strong>the</strong> company has turned its unused workshop into a
classroom, which <strong>of</strong>fers traditional culture classes for employees’ children and children from <strong>the</strong>
County during <strong>the</strong> weekends. Confucian philosophy has improved <strong>the</strong> relationships among employees
and with <strong>the</strong> owner. The relationships with <strong>the</strong> government and customers have also improved. When
talking about <strong>the</strong> relationships with <strong>the</strong> government, <strong>the</strong> owner said:
Keeping a good relationship with <strong>the</strong> government is very important for businesses in
China. Businesses can only develop with <strong>the</strong> help <strong>of</strong> <strong>the</strong> government. The Chinese and
Western business culture is quite different. As ei<strong>the</strong>r a Chinese person or business, you
cannot live without guanxi. You have to understand that <strong>the</strong> government departments
also have <strong>the</strong>ir duties that need to be fulfilled. So, as a business owner, you should not
get so involved with money. Whenever <strong>the</strong> government <strong>of</strong>ficials come to ask me make
donations or participate in any activities, I will try my best to cooperate with <strong>the</strong>m and
help <strong>the</strong>m. You have to be nice to people, <strong>the</strong>n <strong>the</strong>y can be nice to you. So, in turn, <strong>the</strong>
government always keeps me informed if <strong>the</strong>re are any activities or new policies which
relate to my business. (Personal communication, December 18, 2010)
In summary, <strong>the</strong> interview with <strong>the</strong> owner underlines that Confucian values play a vital role in
managing both internal and external relationships. Both <strong>the</strong> business management mode and <strong>the</strong>
business owner’s managing ideas interlink with Confucian concepts reflected in <strong>the</strong> company’s
slogan: ‘Harmonious society starts with myself’.
4. Discussion
Our discussion <strong>of</strong> this case is drawn from Sveiby’s intangible assets model (Sveiby, 1997. The notion
<strong>of</strong> intangible assets is <strong>the</strong> same as that <strong>of</strong> intellectual capital (Edvinsson & Malone, 1997)). From a
knowledge-based perspective, a business has three intangible assets: external structure, internal
structure, and employee competence. These intangibles need to work toge<strong>the</strong>r to maximise <strong>the</strong>
leveraging that each one has on <strong>the</strong> o<strong>the</strong>r (Sveiby, 2001). Figure 1 shows <strong>the</strong> interconnectedness
between <strong>the</strong>se three assets.
Figure 1: Three assets <strong>of</strong> Knowledge Management (Sveiby, 2001)
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As shown in Figure 1 tangible business values will increase if <strong>the</strong> knowledge can be shared within
and between each asset. The internal structure is <strong>the</strong> system and culture <strong>of</strong> <strong>the</strong> business. YN, with its
emphasis on Confucianism, has built an internal structure to reinforce this business culture.
Employees working in a manufacturing firm like YN, have different individual competencies from
employees working at highly technical companies. The jobs are mainly labour-intensive and are
readily taught on <strong>the</strong> job without <strong>the</strong> need for external qualifications. What is important is that job
performance is correct and efficient. In order to improve employees’ performance, KM tools such as
regular culture training activities and monthly newsletters have now become important features <strong>of</strong> <strong>the</strong>
YN business system. To help employees to work attentively and reduce worries, such as <strong>the</strong>ir
children’s after-school caring services, are also a part <strong>of</strong> <strong>the</strong> business system. These measures have
helped to improve both internal relationships and internal knowledge communication between <strong>the</strong>
owner and employees. A reciprocal relationship between <strong>the</strong> business and employees has been
established as both parties give and gain favours from each o<strong>the</strong>r.
The external structure focuses on <strong>the</strong> image (branding) <strong>the</strong> company has through building
relationships with external resources. Roxas (2008) suggests that <strong>the</strong>re is a direct relationship
between social capital and knowledge absorption capacity for SMEs. In China, keeping a good
relationship with <strong>the</strong> government can bring benefits to a business. In this case study, <strong>the</strong> owner has
built a good relationship with government <strong>of</strong>ficials. and also participates and organises activities in <strong>the</strong>
County, ra<strong>the</strong>r than keeping a distance from <strong>the</strong> local government like most SME owners in China. In
turn, <strong>the</strong> government pays more attention to <strong>the</strong> development <strong>of</strong> <strong>the</strong> business by keeping it informed
about policies and business related activities. Thus, guanxi with <strong>the</strong> local government and a good
reputation in <strong>the</strong> local community have become important sources <strong>of</strong> social capital for <strong>the</strong> business. A
lot <strong>of</strong> useful information is obtained through <strong>the</strong>se channels. Good guanxi and reputation have also
reduced obstacles when dealing with <strong>the</strong> government departments. Thus, in <strong>the</strong> YN company, <strong>the</strong>
Confucian concept <strong>of</strong> harmony keeps both <strong>the</strong> internal and external relationships running smoothly.
Ano<strong>the</strong>r important lesson <strong>the</strong> business shows is <strong>the</strong> ability <strong>of</strong> <strong>the</strong> owner to transfer knowledge to <strong>the</strong>
business. For Chinese SMEs, <strong>the</strong> owners are also <strong>the</strong> decision makers who create a business system
or environment that allows <strong>the</strong> knowledge <strong>the</strong>y have to be transferred to <strong>the</strong>ir employees, and to help
<strong>the</strong> employees to exercise and cultivate <strong>the</strong> knowledge that is passed on to <strong>the</strong>m. Therefore, it is
important that Chinese SME owners realise that <strong>the</strong> knowledge <strong>the</strong>y learn is a valuable asset, not
only to <strong>the</strong>mselves, but also to <strong>the</strong>ir businesses. Many Chinese SMEs see <strong>the</strong>ir employees as <strong>the</strong>ir
family members. However, <strong>the</strong>y lack fur<strong>the</strong>r knowledge acquisition and assimilation <strong>of</strong> <strong>the</strong> value this
thinking may bring to <strong>the</strong> business. Thus, <strong>the</strong> knowledge can only become an asset to <strong>the</strong> owners,
and <strong>the</strong> knowledge communication between <strong>the</strong> owners and <strong>the</strong> employees is not established. For
this case study, <strong>the</strong> owner has transformed his knowledge through formal systems and procedures
(e.g. weekly workshops, and monthly newsletters). Therefore, <strong>the</strong> status <strong>of</strong> Confucian philosophy is
established and also valued by <strong>the</strong> employees. The manifestation <strong>of</strong> Confucian principles is cemented
by <strong>the</strong> naming <strong>of</strong> all <strong>the</strong> walkways within <strong>the</strong> factory compound using words from Confucian concepts,
like Harmonious Street. Famous scholars in Confucianism are invited to give lectures at irregular
intervals on traditional ethics and values. At <strong>the</strong> same time, <strong>the</strong> company has developed its own
teaching material and organise studies every week.
It is also important to note that, for SMEs, <strong>the</strong> degree <strong>of</strong> owner assimilation <strong>of</strong> <strong>the</strong> knowledge may
decide whe<strong>the</strong>r <strong>the</strong> knowledge can bring a systemic change to <strong>the</strong> business or not. From this case
study, it can be concluded that <strong>the</strong> owner has gained benefits from learning Confucianism because
his attitudes towards people and society have changed. He now realises that Confucianism enables
people to become less selfish and more caring for o<strong>the</strong>rs. He believes that one <strong>of</strong> <strong>the</strong> key reasons for
his success is that by learning Confucian values, his worldview has changed from pursuing money to
being people-oriented which, in turn, has helped him improve his relations with his employees,
customers, local <strong>of</strong>ficials and o<strong>the</strong>r relationships. Thus, <strong>the</strong> owner has already assimilated <strong>the</strong>
knowledge before bringing it into <strong>the</strong> business. Figure 2 summarises <strong>the</strong> knowledge transformation
process for <strong>the</strong> Chinese SMEs based on <strong>the</strong> case study.
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Social Capital to
<strong>the</strong> Owner
• Participation in
<strong>the</strong> local
community
• Family and
friends
connections
• Government
connections
Lei Ye et al.
The Owner’s
Absorptive Capacity
• Knowledge
Acquisition
• Knowledge
Assimilation
Realised Absorptive
Capacity by <strong>the</strong> Owner
• Transfer knowledge
to <strong>the</strong> business
• Knowledge shared
within <strong>the</strong> business
Figure 2: Knowledge transformation in Chinese SMEs.
5. Conclusion
Improved Firm
performance
• Improvement in
employee
relationships
• Improvement in
<strong>the</strong> relationship
between <strong>the</strong> owner
and employees
• Less employee
turnover
We conclude from this case study that traditional Chinese culture can be combined with modern
management systems to run businesses successfully. Although it is just a single case, it provides an
example to Chinese SME owners how guanxi can be an important source to build up <strong>the</strong>ir social
capital because it provides useful information to <strong>the</strong> businesses and also improves <strong>the</strong>ir external
relationships. This study shows that <strong>the</strong> development <strong>of</strong> SMEs largely relies on <strong>the</strong> business owners’
strategic decision making. Employee competence not only means <strong>the</strong> competence <strong>the</strong> employees
have, but also <strong>the</strong> competence <strong>the</strong> owner has. It is important to make sure <strong>the</strong> knowledge that SME
owners have is shared with <strong>the</strong>ir employees, ei<strong>the</strong>r through formal or informal procedures. The case
study shows how traditional culture, which Chinese business owners are very familiar with, can be
used as a management mechanism to improve internal relationships with employees. Nobody can live
in isolation in this world, so one <strong>of</strong> <strong>the</strong> Confucian concepts to bear in mind for everybody involved in
relationships is to treat o<strong>the</strong>rs in a way that you yourself would want to be treated.
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Papers
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828

Knowledge Sharing for <strong>the</strong> Public Sector: Cross- Border
Cooperation Between Hungarian and Romanian Academics
in <strong>the</strong> Field <strong>of</strong> new Public Management
Madela Abrudan 1 , Mária Ujhelyi 2 , Anca Dodescu 1 and Enikő Szilágyi 2
1
University <strong>of</strong> Oradea, Faculty <strong>of</strong> Economic Sciences, Oradea, Romania
2
University <strong>of</strong> Debrecen, Faculty <strong>of</strong> Economics and Business Administration,
Debrecen, Hungary
mabrudan@uoradea.ro
maria.ujhelyi@econ.unideb.hu
adodescu@uoradea.ro
eniko.szilagyi@econ.unideb.hu
Abstract: The present work in progress paper is based on <strong>the</strong> project entitled: Establishment <strong>of</strong> R&D
programmes in <strong>the</strong> field <strong>of</strong> new public management between economic faculties <strong>of</strong> higher education in Hajdu-
Bihar and Bihor counties – HURO/0901/277/2.2.2, financed by <strong>the</strong> European Regional Development Fund as part
<strong>of</strong> Hungary-Romania Cross Border Co-operation Programme 2007-2013. The general objective <strong>of</strong> <strong>the</strong> project is
<strong>the</strong> cooperation between Hungarian and Romanian academics in <strong>the</strong> R&D field related to organizational
development in public administration in order to contribute to knowledge sharing for <strong>the</strong> public sector. This
initiative comes for meeting <strong>the</strong> demands addressed to <strong>the</strong> educational and research institutions by <strong>the</strong>
Romanian and Hungarian local public administrations, for getting involved in: analyzing issues regarding
knowledge sharing for <strong>the</strong> public sector, recommending and developing methods to increase effectiveness,
training specialists for implementing reforms in public institutions, and also preparation <strong>of</strong> specialists who know
<strong>the</strong> characteristics <strong>of</strong> Hungarian and Romanian public administration and <strong>the</strong> main characteristics <strong>of</strong> its
functioning, capable <strong>of</strong> developing and maintaining cross-border partnerships. The target groups (direct
beneficiaries) <strong>of</strong> this project will include 60 institutions <strong>of</strong> public administration - 30 Hungarian and 30 Romanian.
Joint research team activities and programmed results are: analyzing successful models and methods in KM, as
well as <strong>the</strong> EU best practices; defining <strong>the</strong> organizational structures, functions and organizational problems <strong>of</strong>
Hungarian and Romanian local governments; comparing <strong>the</strong>ir threats and opportunities in order to discover real
problems and find solutions; transferring results to public administration in order to increase <strong>the</strong>ir effectiveness;
publishing a multilingual manual and website with research results; development <strong>of</strong> common educational <strong>the</strong>mes,
special courses, internships, inter-university trainings etc. in public sector KM. The most valuable future result <strong>of</strong>
<strong>the</strong> project is developing cross-border communication networks in <strong>the</strong> fields <strong>of</strong> research, education/instruction
that will work as a source <strong>of</strong> innovation and knowledge sharing for <strong>the</strong> public sector.
Keywords: knowledge management, public management, knowledge sharing, public sector, crossborder
cooperation
1. Introduction
The “new public management” concept has imposed in <strong>the</strong> 90s, <strong>the</strong> new approach dramatically
changing <strong>the</strong> way public institutions work and also <strong>the</strong> role <strong>of</strong> <strong>the</strong> public manager and <strong>of</strong> <strong>the</strong> public
execution <strong>of</strong>ficers. In this view, <strong>the</strong> specific routine and traditionalism <strong>of</strong> <strong>the</strong> administrative activities
are outran, <strong>the</strong> new coordinates <strong>of</strong> <strong>the</strong> public management being <strong>the</strong> following: emphasis on a solid
base <strong>of</strong> <strong>the</strong> objectives, results, responsability for <strong>the</strong> level <strong>of</strong> performance, creativity and innovation.
In this context, <strong>the</strong> role <strong>of</strong> management based on knowledge (Knowledge Management) is
overwhelming.
The researches done in <strong>the</strong> field highlighted <strong>the</strong> fact that <strong>the</strong> need for introducing knowledge
management in <strong>the</strong> public area is based on <strong>the</strong> following: <strong>the</strong>re is no clear perception in <strong>the</strong> public
institutions regarding own knowledge, a great amount <strong>of</strong> <strong>the</strong> available knowledge is not used
correspondingly, it is not always systematized and is not known with enough time before, <strong>the</strong>re is a
need for updating <strong>the</strong> knowledge and also a variety <strong>of</strong> customers with different expectations (Marcel
Veenswijk, 2005). The public sector KM is proposed to involve <strong>the</strong> three major dimensions <strong>of</strong>
information and communication - knowledge, work and people. The main benefit <strong>of</strong> KM is to maximize
productivity in <strong>the</strong> public sector, while enhancing public service delivery (Yum Hui Yuen, 2007).
Given <strong>the</strong>se, <strong>the</strong> Establishment <strong>of</strong> R&D programmes in <strong>the</strong> field <strong>of</strong> new public management between
economic faculties <strong>of</strong> higher education in Hajdu-Bihar and Bihor Counties – HURO/0901/277/2.2.2,
829

Madela Abrudan et al.
financed by <strong>the</strong> European Regional Development Fund as part <strong>of</strong> Hungary-Romania Cross Border
Co-operation Programme 2007-2013 project started based on <strong>the</strong> desire to develop a lasting
partnership in order to promote in <strong>the</strong> public administration <strong>of</strong> <strong>the</strong> two regions a management based
on knowledge, having as a main objective <strong>the</strong> creation <strong>of</strong> organisations where <strong>the</strong> employees are
encouraged to use <strong>the</strong>ir knowledge efficiently and effectively.
The major topics assumed by <strong>the</strong> romanian-hungarian research team are: basic information – focused
on collecting <strong>the</strong> basic information regarding financial aspects, organizational structure, informational
system, performance management system; strategy and human resources management – focused on
describing <strong>the</strong> details <strong>of</strong> strategical thinking, <strong>the</strong> way people (both leaders and employees) see <strong>the</strong>
present and future <strong>of</strong> <strong>the</strong> organization, <strong>the</strong> communication system, <strong>the</strong> way <strong>the</strong>y solve ethical
problems; services and general functions - focused on what kind <strong>of</strong> services <strong>the</strong>y provide and how,
are <strong>the</strong>y flexible enough to adapt to <strong>the</strong> ever-changing demands <strong>of</strong> <strong>the</strong> environment?
2. Methodology <strong>of</strong> implementation
The project was initiated by <strong>the</strong> members <strong>of</strong> <strong>the</strong> teaching staff <strong>of</strong> <strong>the</strong> University <strong>of</strong> Debrecen, Hungary
and University <strong>of</strong> Oradea, Romania, institutions <strong>of</strong> two counties at <strong>the</strong> border <strong>of</strong> <strong>the</strong> two countries and
it is carried out between 01.03.2011-28.02.2012, having a total allocated budget <strong>of</strong> 80 818 Euro.
In fact, <strong>the</strong> covering area <strong>of</strong> <strong>the</strong> project is <strong>the</strong> Nor<strong>the</strong>rn Great Plain Region in Hungary and North West
Region in Romania. Binding to <strong>the</strong> Lisbon Strategy and European Security and Defence Policy, <strong>the</strong>
project contributes to volatilize borders, streng<strong>the</strong>n cross-border networks between cities, by
upgrading management <strong>of</strong> public administration, improve <strong>the</strong> competitiveness <strong>of</strong> underdeveloped
border regions from peripheral regions <strong>of</strong> <strong>the</strong> European Union.
The target groups (direct beneficiaries) <strong>of</strong> this project will include 60 institutions <strong>of</strong> public
administration - 30 Hungarian and 30 Romanian. Also, <strong>the</strong> direct beneficiaries are those researchers
from both universities who will acquire new knowledge <strong>of</strong> organizational development in public
administration. Indirect beneficiaries <strong>of</strong> this project will be <strong>the</strong> 130 government institutions in <strong>the</strong>
counties <strong>of</strong> Hajdú-Bihar and Bihar which will acquire, indirectly, or entering in connection with <strong>the</strong>
research team directly, new methods, innovative for <strong>the</strong>ir effective functioning.
This initiative comes for meeting <strong>the</strong> demands addressed to <strong>the</strong> educational and research institutions
by <strong>the</strong> Romanian and Hungarian local public administrations, for getting involved in: analyzing issues
regarding knowledge sharing for <strong>the</strong> public sector, recommending and developing methods to
increase effectiveness, training specialists for implementing reforms in public institutions, and also
preparation <strong>of</strong> specialists who know <strong>the</strong> characteristics <strong>of</strong> Hungarian and Romanian public
administration and <strong>the</strong> main characteristics <strong>of</strong> its functioning, capable <strong>of</strong> developing and maintaining
cross-border partnerships.
There are several general hypo<strong>the</strong>sis which <strong>the</strong> project are based on: lack <strong>of</strong> managerial culture
regarding KM in public administration, lack <strong>of</strong> critical analysis, weak system <strong>of</strong> horizontal relationships
developed, political – administrative interference, low importance given to human resource
management, poor quality <strong>of</strong> financial information, low responsibility for <strong>the</strong> level <strong>of</strong> performance,
reduced domestic capacity to learn, <strong>the</strong> fact that a great amount <strong>of</strong> <strong>the</strong> available knowledge is not
used correspondingly.
The research methodology consisting in two directions: a quantitative one, based on <strong>the</strong> survey
applied to <strong>the</strong> institutions from target groups <strong>of</strong> <strong>the</strong> most significant aspects concerning organizational
development with impact on KM process according to different models <strong>of</strong> Public Sector KM, and a
qualitative one based on an open structured interview applied to policy-makers and public managers.
We are going to focus on significant aspects concerning organizational development, considering
different models - for example, expanded pattern <strong>of</strong> Public Sector KM (Abdullah, Hema, D., 2009)
which involves parameters with impact on KM process: information and communication technology,
knowledge work, people – which generates outcomes like: efficiency, innovation, learning and quality
<strong>of</strong> <strong>the</strong> project’s target groups.
3. Results and future developments
The main results <strong>of</strong> <strong>the</strong> activities carried out by <strong>the</strong> research team are: creating a common research
team to function as an innovation source and a transfer centre <strong>of</strong> <strong>the</strong> knowledge for <strong>the</strong> public
830

Madela Abrudan et al.
administration; analysing and taking over <strong>the</strong> best practices in this field from <strong>the</strong> European
Community; scientifically proven analysis regarding <strong>the</strong> structure, functioning and organisational
problems <strong>of</strong> <strong>the</strong> Hungarian and Romanian public administration; publishing <strong>of</strong> <strong>the</strong> results in a
multilingual manual, developing a multilingual website where <strong>the</strong> results <strong>of</strong> <strong>the</strong> research are going to
be published and updated; development <strong>of</strong> a common educational <strong>the</strong>me which is going to ground <strong>the</strong>
establishment <strong>of</strong> certain training modules in this field.
The results <strong>of</strong> <strong>the</strong> research consist in analysis, interpretation and correlation <strong>of</strong>: size <strong>of</strong> local
governments, <strong>the</strong>ir structure, community development, public accountability, managerial style,
strategic thinking <strong>of</strong> institution leaders, existence <strong>of</strong> development plans, financial aspects: revenues
and expenditures, perception <strong>of</strong> manager’s behaviour by <strong>the</strong> employees and vice-versa, performance
and performance measurement, motivation, informational system, attitudes towards e-government on
behalf <strong>of</strong> employees and beneficiaries, flexibility <strong>of</strong> <strong>the</strong> institution and services <strong>of</strong>fered, openness
towards <strong>the</strong> public, ethics in public relations, public services provided and level <strong>of</strong> externalization <strong>of</strong>
services, <strong>the</strong> perception in <strong>the</strong> public institutions regarding own knowledge.
All <strong>the</strong>se results are going to be <strong>the</strong> basis <strong>of</strong> elaborating an implementation methodology <strong>of</strong> <strong>the</strong>
knowledge management (KM) in <strong>the</strong> public area, taking into consideration <strong>the</strong> cultural characteristics
and particularities <strong>of</strong> <strong>the</strong> economical and social background <strong>of</strong> <strong>the</strong> two regions. Mainly, <strong>the</strong>se are
going to be a value support for: identifying <strong>the</strong> knowledge potential in <strong>the</strong> public institutions, preparing
<strong>the</strong>ir strategy in which knowledge management (KM) becomes <strong>the</strong> main strategic option, development
<strong>of</strong> <strong>the</strong> strategic action plan, identifying, disseminating and using <strong>the</strong> necessary knowledge, redefining
<strong>the</strong> organisational culture and management style.
The most valuable future result <strong>of</strong> <strong>the</strong> project is developing cross-border communication networks in
<strong>the</strong> fields <strong>of</strong> research, education/instruction that will work as a source <strong>of</strong> innovation and knowledge
sharing for <strong>the</strong> public sector and which contributes, on a long term, to <strong>the</strong> enforcement <strong>of</strong> <strong>the</strong>
economical and social cohesion <strong>of</strong> <strong>the</strong> Romanian-Hungarian border areas.
Acknowledgments
The project Establishment <strong>of</strong> R&D programmes in <strong>the</strong> field <strong>of</strong> new public management between
economic faculties <strong>of</strong> higher education in Hajdu-Bihar and Bihor Counties – HURO/0901/277/2.2.2, is
financed by <strong>the</strong> European Regional Development Fund as part <strong>of</strong> Hungary-Romania Cross Border
Co-operation Programme 2007-2013, Value: 80 818 Euro), Duration: 1 year (2011-2012),
Coordinator: Faculty <strong>of</strong> Economics and Business Administration, University <strong>of</strong> Debrecen, Hungary,
Project partner: Faculty <strong>of</strong> Economic Sciences, University <strong>of</strong> Oradea, Romania.
References
Abdullah, Hema, D. (2009), „Public sector Knowledge: A general Framework”, Public sector ICT Management
Review, January-June 2009, Vol.3, No.1, pp.7-8
Abrudan Maria-Madela (2004), Managementul resurselor umane în contextul globalizării, Universitaria Craiova,
Craiova
Brown, C.W., Jackson, P.M. (1990), Public Sector Economics, Bassil Blackwell, Cambridge
Black, Steenkamp, and Calitz (2010), Public Economics, Oxford University Press, Oxford
Dodescu, Anca (2000), Statul şi economia de piaţă, Economica, Bucureşti
Ewan Ferlie, Laurence E. Lynn Jr., and Christopher Pollitt (2007), The Oxford Handbook <strong>of</strong> Public Management,
Oxford University Press, Oxford
Marcel Veenswijk, editor (2005), Organizing Innovation. New approach to cultural change and intervetions in
public sector organizations, IOS Press, Amsterdam
Moran, M., Rein, M. and Goodin, R. E. (2010), The Oxford Handbook <strong>of</strong> Public Policy, Oxford
University Press, Oxford
Parker, R., Bradley, L. (2000), „Organizational culture in <strong>the</strong> public sector: evidence from six organisations”,
<strong>International</strong> Journal <strong>of</strong> Public Sector Management, Vol.13, No.2, pp.125 – 141
Yuen, Y.H. (2007), “Overview <strong>of</strong> knowledge management in <strong>the</strong> public sector”, [online], 7th Global Forum on
Reinventing Government: Building Trust in Government, Workshop on Managing Knowledge to Build Trust
in Government
http://unpan1.un.org/intradoc/groups/public/documents/unpan/unpan026041.pdf
831

Creating Computational Support for <strong>the</strong> Decision Making <strong>of</strong>
<strong>the</strong> Cross-Border: SMEs as key Driver For Sustainable
Regional Development
Elena Botezat 1 , Anca Dodescu 1 , Veronika Fenyves 2 , and Andras Nabradi 2
1 University <strong>of</strong> Oradea, Faculty <strong>of</strong> Economic Sciences, Oradea, Romania
2 University <strong>of</strong> Debrecen, Faculty <strong>of</strong> Applied Economics and Rural
Development, Debrecen, Hungary
ebotezat@uoradea.ro
adodescu@uoradea.ro
fenyves@agr.unideb.hu
nabradi@agr.unideb.hu
Abstract: The new era opened by <strong>the</strong> knowledge-based society forced individuals, organizations, communities,
regions to find new solutions in <strong>the</strong>ir daily battles for clients, competitiveness, future. The fundamental problem
that occurs is related though by <strong>the</strong> extent to which new solutions based on information and communication
technologies clearly give birth to micro-and macroeconomic performance. All research carried out shows that <strong>the</strong>
simple usage <strong>of</strong> information and communication technologies is not sufficient to ensure performance and
competitiveness. It takes something more, namely an increase in employees' competence, a performance
management, an efficient processes management and support for stimulating creativity and innovation. We tried
to pull toge<strong>the</strong>r all <strong>the</strong>se goals within <strong>the</strong> project named “Computational support for <strong>the</strong> decision making <strong>of</strong> <strong>the</strong>
cross-border SMEs”, financing from <strong>the</strong> European Regional Development Fund under <strong>the</strong> Hungary-Romania
Cross-border Cooperation Programme 2007- 2013. The main objective <strong>of</strong> <strong>the</strong> project is to support small and
medium enterprises <strong>of</strong> <strong>the</strong> two regions located on <strong>the</strong> two sides <strong>of</strong> <strong>the</strong> border for acquiring knowledge to
implement performant informational systems in decision-making in order to increase regional competitiveness.
The successful implementation by <strong>the</strong> project team containing members <strong>of</strong> <strong>the</strong> academic community at <strong>the</strong>
University <strong>of</strong> Debrecen, Hungary in partnership with University <strong>of</strong> Oradea, Romania, will support regional
economic competitiveness, human capital development to achieve <strong>the</strong> necessary level <strong>of</strong> capacity and
performance, bidirectional transfer <strong>of</strong> knowledge between academics and practitioners as well as an increased
international regional cooperation. These specific objectives will be attainable through <strong>the</strong> activities carried out
during 2011, namely: 1. a study on identifying support needs for information and communication technologies <strong>of</strong>
cross-border SMEs, 2. meetings with stakeholders <strong>of</strong> <strong>the</strong> two sides <strong>of</strong> <strong>the</strong> border regarding suitability for a high
degree <strong>of</strong> training and support needs, 3. developing a training package especially adapted to <strong>the</strong> requirements /
needs identified, 4. conducting training sessions focusing on applications for staff in cross-border SMEs, 5.
organising a final conference presenting <strong>the</strong> results obtained and to ensure sustainability with <strong>the</strong> <strong>the</strong>me:
"Support for assisted computer decision making in cross-border SMEs. " The various activities <strong>of</strong> <strong>the</strong> project will
involve about 300 small and medium enterprises <strong>of</strong> which 80 small and medium enterprises will be included in
training programs and we estimate that about 400 participants will attend joint events. Actions and exposure to
<strong>the</strong> learning process named Learning by Doing will increase by 5% <strong>the</strong> level <strong>of</strong> cooperation between <strong>the</strong> border
communities, a goal favoured also by developing a web portal in Hungarian and Romanian.
Keywords: knowledge management, computational support, decision making, cross-border SMEs, sustainable
regional development
1. Introduction
The project entitled: “Computational support for <strong>the</strong> decision making <strong>of</strong> <strong>the</strong> crossborder SMEs” is
financed from <strong>the</strong> European Regional Development Fund under <strong>the</strong> Hungary-Romania Cross-border
Cooperation Programme 2007-2013. The main objective is to support <strong>the</strong> regional economy in order
to assure competitiveness, helping human capital development to achieve <strong>the</strong> necessary level <strong>of</strong>
capacity and performance in <strong>the</strong> knowledge-based economy. The covering area <strong>of</strong> <strong>the</strong> project is <strong>the</strong>
Western part <strong>of</strong> Romania, and includes Bihor county from Romania and Hajdu- Bihar county from
Hungary. The project’s relevance and contribution is situated in <strong>the</strong> field <strong>of</strong> understanding <strong>the</strong>
permanent need <strong>of</strong> increasing employee skills, <strong>the</strong> development <strong>of</strong> an efficient management, <strong>of</strong> an
efficient and effective processes and creating mechanisms aimed to provide support for stimulating
creativity and innovation in cross-border SMEs and regional development.
The project responds to specific challenges faced by today's SMEs in Hungary and Romania namely
to efficiently produce quality products and services taking into account <strong>the</strong> technical and material
resources available, to attract and retain capable and performant employees, to implement
appropriate management system based on which to develop.
832

2. Methodology <strong>of</strong> implementation
Elena Botezat et al.
Our project aims to provide practical instruments to beneficiaries that can be used for decision making
in SMEs in <strong>the</strong> border area in order to adapt <strong>the</strong>ir operating environment, validated by <strong>the</strong> literature
(Babeau O. and Obana P., 2009; Blewitt J., 2008; Clayton B., 2002). The economic intelligence and
knowledge management faced as management practices are encountering considerable
development. In contemporary conditions <strong>the</strong> company has become a genuine process <strong>of</strong> knowledge,
<strong>the</strong> two types <strong>of</strong> practices are entered in <strong>the</strong> race for a top place to ensure market success (Drucker,
P., 2004; Hepworth, M. (2208); Cristureanu, C., 2009).
Knowledge Management, as an instrument aimed at structuring, capitalization and dissemination <strong>of</strong>
knowledge products in <strong>the</strong> internal environment <strong>of</strong> <strong>the</strong> organization must find a balance between
intangible knowledge - which can provide a durable competitive advantage and <strong>the</strong>refore that cannot
be imitated and adopted by competition and tangible or explicit knowledge - that is available to
everyone because it is encoded and stored in <strong>the</strong> computer environment. Of course, each economic
actor can take as much as he can, having regard to ”absorption power” due to <strong>the</strong> level that
represents him (Blewitt, J., 2008; Cristureanu, C., 2009, Botezat E., 2011).
The starting point in <strong>the</strong> successful implementation <strong>of</strong> our project is <strong>the</strong> knowledge <strong>of</strong> <strong>the</strong> variables <strong>of</strong>
which <strong>the</strong> quality <strong>of</strong> decision based and developed depends. The analysis is aimed at all management
processes as decision-making processes are closely related to organizational processes and
organizational divisions <strong>of</strong> labour, design processes, design and operation <strong>of</strong> <strong>the</strong> circulation <strong>of</strong>
information, with o<strong>the</strong>r motivational processes, <strong>the</strong> type <strong>of</strong> management and o<strong>the</strong>r system
components management <strong>of</strong> <strong>the</strong> organization.
The data base <strong>of</strong> <strong>the</strong> research is collected through questionnaire by non-directed interviews and <strong>the</strong>
study <strong>of</strong> <strong>the</strong> documents drawn up within <strong>the</strong> project mentioned above. The first step is to obtain <strong>the</strong>
primary data base <strong>of</strong> <strong>the</strong> research through questionnaire administered below 1000 cross-border
SMEs (below 500 in each country). After processing we get relevant and useful information relating to
decisions taken at SMEs in <strong>the</strong> border area at all hierarchical levels in order to identify strengths and
weaknesses in <strong>the</strong> authority structure within <strong>the</strong> company, <strong>the</strong> composition <strong>of</strong> participatory
management bodies, knowledge, skills and qualities <strong>of</strong> managers, observing <strong>the</strong> foundation and
development stages <strong>of</strong> <strong>the</strong> strategic and tactical decisions, <strong>the</strong> methods used to substantiate
decisions and o<strong>the</strong>r aspects <strong>of</strong> <strong>the</strong> development process and substantiating decisions in that
organization.
Based on all <strong>the</strong> deficiencies noted in <strong>the</strong> analysis <strong>of</strong> decision-making system will be designed training
materials focused on improvement measures by which to remove <strong>the</strong> causes that have generated
<strong>the</strong>se deficiencies. Herein lies <strong>the</strong> importance <strong>of</strong> our project as a solution rooted in regional realities
and daily management. The prime objective <strong>of</strong> <strong>the</strong> training program aimed at ensuring a better quality
<strong>of</strong> SME management in <strong>the</strong> border area between Romania and Hungary, in particular underlying <strong>the</strong>
decision process using <strong>the</strong> most appropriate computer methods. The probability that practical
problems can be solved with <strong>the</strong> methods established in <strong>the</strong> literature is very large. Among <strong>the</strong>
methods <strong>of</strong> operational research, in our opinion, <strong>the</strong> most appropriate operating context are:
ma<strong>the</strong>matical programming, inventory <strong>the</strong>ory, graph <strong>the</strong>ory, <strong>the</strong>ory <strong>of</strong> waiting threads, game <strong>the</strong>ory
and decision-making simulation. Each student will develop a project that involves designing, planning
and implementation <strong>of</strong> all decision system components after following several stages: identification <strong>of</strong>
circuits and information flow, <strong>the</strong> study procedures used in processing information, determining points
/ areas <strong>of</strong> information processing support decisions, identifying <strong>the</strong> most appropriate methods and
techniques for making decisions, design information support, including <strong>the</strong> arrangements for handling
<strong>the</strong> information necessary to make decisions, learning how to use computer s<strong>of</strong>tware in making
decisions. Special attention will be paid to communication in business, knowing specifically how <strong>the</strong>se
processes will be possible following <strong>the</strong> interview using semistructured interviews <strong>of</strong> employees <strong>of</strong> <strong>the</strong>
80 SMEs included in <strong>the</strong> training program. Management issue is not whe<strong>the</strong>r or not to communicate,
but how and with what results <strong>the</strong> communication takes place. Organizational communication, as a
specific mode <strong>of</strong> manifestation <strong>of</strong> <strong>the</strong> management process takes over <strong>the</strong> individual elements <strong>of</strong> <strong>the</strong>
enterprise and accompanies <strong>the</strong> development <strong>of</strong> <strong>the</strong> organization. Thus, reworking <strong>the</strong> decision
process represents a direct impact on <strong>the</strong> volume and structure <strong>of</strong> <strong>the</strong> messages conveyed through
formal channels.
833

Elena Botezat et al.
Being aware that <strong>the</strong> change is conditioned by <strong>the</strong> mode <strong>of</strong> perception and acceptance from staff, our
project aims at training staff to accept change and to promote new models along with appropriate use
<strong>of</strong> motivational factors (McGuinness M., 2007; Warnez B. and Dillon J., 2009).
3. Results and future developments
As initial result <strong>of</strong> <strong>the</strong> project, a curricula Computational support for <strong>the</strong> decision making, consisting <strong>of</strong>
4 courses, was set up. Besides <strong>the</strong> particular training, <strong>the</strong> project develops a number <strong>of</strong> innovative
activities such as: <strong>the</strong> elaboration <strong>of</strong> four packages <strong>of</strong> didactic supports especially designed,
elaborated in both printed and in e-learning format; <strong>the</strong> elaboration <strong>of</strong> <strong>the</strong> SMEs diagnoses <strong>of</strong> <strong>the</strong>
counties involved, and <strong>the</strong>reafter, <strong>the</strong>ir integration in <strong>the</strong> training process, in order to facilitate <strong>the</strong>
identification <strong>of</strong> improvement ideas according to <strong>the</strong> local development potential; <strong>the</strong> development <strong>of</strong>
some specific methods designed to create <strong>the</strong> data base selection, and to monitor <strong>the</strong> project’s target
groups, including a set <strong>of</strong> semidirected interviews conducted with <strong>the</strong> employees <strong>of</strong> <strong>the</strong> 80 small and
medium size enterprises in training; <strong>the</strong> development <strong>of</strong> a specific research activity, having decision
making in <strong>the</strong> border area Romania-Hungary as main subject.
The success <strong>of</strong> <strong>the</strong> project will be measured with a system <strong>of</strong> key indicators registered in <strong>the</strong>
beneficiary SMEs. Specifically it is about relevant indicators such as growth rate in sales, volume <strong>of</strong>
assets, pr<strong>of</strong>it, rate <strong>of</strong> return etc. Analysis <strong>of</strong> <strong>the</strong>se indicators will be made in conjunction with each
o<strong>the</strong>r, such as: sales growth rate must be considered in connection with break-even point (for <strong>the</strong> risk
<strong>of</strong> exploitation to be low, <strong>the</strong> turnover should exceed at least 10 % breakeven point), <strong>the</strong> duration for
collection from customers must be less than <strong>the</strong> duration <strong>of</strong> payment <strong>of</strong> suppliers, rates <strong>of</strong> return
should register an increasing trend and should be higher than interest rates and inflation.
The project development results in: creating an inter-regional educational research, training and
communication network and an inter-regional data base on SMEs entreprises <strong>of</strong> Bihor and Hajdu-
Bihar counties that pave <strong>the</strong> way for future research projects (generating an inter-regional model <strong>of</strong>
Computational support for <strong>the</strong> decision making in SMEs; elaborating 80 projects and putting into
practice in order to promote <strong>the</strong> values <strong>of</strong> knowledge-based management and to determine <strong>the</strong>
regional development.
Future open research direction relates to a new approach to <strong>the</strong> immaterial, which should accompany
any strategic approach and a new culture <strong>of</strong> information related to intimate behaviour <strong>of</strong> each
economic actor (Cristureanu, C., 2009; McGuinness, M., 2007; Warnez B., Dillon J. 2008).
Acknowledgments:
The project “Computational support for <strong>the</strong> decision making <strong>of</strong> <strong>the</strong> cross-border SMEs” is financing
from <strong>the</strong> European Regional Development Fund under <strong>the</strong> Hungary-Romania Cross-border
Cooperation Programme 2007-2013, nr. ref. HURO 0901/255, acronim CADS-SmsE, Value: 155
160,36 euro, Duration: 1 year (4th January 2011 – 31st December 2011), Coordinator: University <strong>of</strong>
Debrecen, Faculty <strong>of</strong> Applied Economics and Rural Development, Debrecen, Hungary, Partener:
Faculty <strong>of</strong> Economics, University <strong>of</strong> Oradea, Romania.
References
Babeau Olivier and Obana Paul (2009) Les échecs du consultant – Les comprendre et les éviter, Editions ESKA,
Paris.
Blewitt, J. (2008) Understanding Sustainable Development, Earthscan, Londra. Botezat, E. (2011) „Learning
Women from Western Part <strong>of</strong> Romania Business. An Empirical Aproach”, <strong>International</strong> Journal <strong>of</strong> Education
and Information, Issue 2, Volume 5.
Bolchover, D. (2006) Morþii vii – Rupþi de lume, duºi dintre noi: crudul adevãr despre viaþa de birou, Editura
Codecs, Bucureºti.
Clayton, B. (2002) Sustainable Development Strategies, Eartscan, Londra.
Cristureanu, C. (2009) Tranzacþiile internaþionale în lumea imaterialui, Editura CH Beck, Bucureºti.
Drucker, P. F. (2004) Managementul viitorului, Editura ASAB, Bucureºti.
Gautron, J. (2003) Le guide du benchmarking, Edition d’Organisation, Paris.
Hepworth, M. (2008) Measuring Needs Skills Needs in a Knowledge Economy :
Key, Tools and Methods, OECD Seminar on Designing and Delivering Skills Strategies for Cities, 11-13 June,
[online].
McGuinness, M. (2007) Time Management for Creative People, Manage <strong>the</strong> mundane - create <strong>the</strong> extraordinary,
London.
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Warnez, B. and Dillon, J. (2009) Réussir le défi du Changement en 7 étapes, «Quand les ours écoutent les
lapins», A2C Medias, Editeur, Paris.
*** Education at a Glance (2005), OECD Briefing Note for United States, [online].
*** Cranfield University School <strong>of</strong> Management, Understanding corporate value : managing and reporting
intelectual capital, Publisher Chartered Institute <strong>of</strong> Management Accountants
www.edrc.ro
www.edu.ro
www.insse.ro
www.universitybusiness.com
835

Evaluating <strong>the</strong> Impact <strong>of</strong> a new Technology Within a
Business Environment: A Methodology Supporting
Strategic Choices
Angelo Corallo and Fabrizio Errico
Centro Cultura Innovativa di Impresa – University <strong>of</strong> Salento, Via per
Monteroni, Italy
angelo.corallo@unisalento.it
fabrizio.errico@unisalento.it
Abstract: Globalization and new technologies are forcing firms to adopt continuous processes <strong>of</strong> change.
Change Management has become a widespread discipline within firms because it allows to manage change in
<strong>the</strong> best possible way and to prevent drastic consequences that could lead <strong>the</strong> company into failures. Within
change management, knowledge management and impact analysis allow managers from one side to find and
extract information and from <strong>the</strong> o<strong>the</strong>r-one to make ex-ante evaluations by identifying critical factors <strong>of</strong> failure,
formulating recovery plans, and estimating potential benefits deriving from technological investments,
organizational changes or future strategic choices. Starting from <strong>the</strong>se consideration our research aims to create
a methodology and a dashboard <strong>of</strong> analysis in order to support managers in making an accurate and realistic
impact analysis with specific reference to <strong>the</strong> introduction <strong>of</strong> new ICTs within a business environment. This paper
shows <strong>the</strong> preliminary results <strong>of</strong> a work-in-progress research. The research has been conducted through a mixed
approach: a desk study (analysis and systematization <strong>of</strong> state <strong>of</strong> <strong>the</strong> art) and a field analysis through four case
studies identified by a pool <strong>of</strong> experts (Community <strong>of</strong> practice) in order to define <strong>the</strong> methodology and <strong>the</strong> tools
for <strong>the</strong> dashboard <strong>of</strong> analysis.
Keywords: impact analysis; knowledge management; change management; ICTs;
1. Introduction
Nowadays companies, in order to remain competitive, have to face a continuous process <strong>of</strong> change:
globalization and new technologies are <strong>the</strong> main responsible (Miller and Morris,1999; Tushman et
al.,1997). But a change, especially when it's drastic, may cause strong repercussions not only at <strong>the</strong>
strategic or organizational level but most <strong>of</strong> all on <strong>the</strong> entire Enterprise Business Model (Osterwalder,
2005).
For many years, <strong>the</strong> Change Management has become a widespread discipline within firms because
it allows, through lean methodologies to manage change in <strong>the</strong> best possible way and <strong>of</strong>ten to prevent
drastic consequences that could lead <strong>the</strong> company into failures.
Within change management, Impact Analysis is a crucial component because it allows to make ex
ante evaluations by identifying first <strong>of</strong> all critical points that could be cause <strong>of</strong> failure, and also to
formulate plans aiming to overcome criticalities, and to estimate how potential economic and social
benefits justify technological investments, organizational changes or future strategic choices.
The paper reports a work in progress activity included within a research project conducted by <strong>the</strong>
University <strong>of</strong> Salento within <strong>the</strong> framework <strong>of</strong> a public-private partnership with Italian companies in <strong>the</strong>
Aerospace, Naval and IT Service sectors.
The paper is organized as follows: <strong>the</strong> first section consists <strong>of</strong> <strong>the</strong> research question and <strong>the</strong> objective
<strong>of</strong> our research, <strong>the</strong> second section is dedicated to <strong>the</strong> state <strong>of</strong> <strong>the</strong> art <strong>of</strong> <strong>the</strong> three main fields <strong>of</strong>
research that guide our project, <strong>the</strong>n <strong>the</strong> methodological approach with its four pillars is described
and in <strong>the</strong> last section <strong>the</strong> results achieved and next steps are described.
2. Objective and research question
The aims <strong>of</strong> <strong>the</strong> paper is to create a methodology and a dashboard <strong>of</strong> analysis in order to support
managers in making accurate and realistic impact assessments with specific reference to <strong>the</strong>
introduction <strong>of</strong> new ICTs into <strong>the</strong>ir organizations. It seeks to answer <strong>the</strong> following questions:
What steps managers have to follow in order to have a realistic and accurate impact evaluation?
What models and technological tools need to be used and integrated within an Impact Analysis
methodology?
836

Angelo Corallo and Fabrizio Errico
The key element <strong>of</strong> our research is that an accurate Impact Analysis cannot be based only on
previous best practices or case studies <strong>of</strong> similar firms but mainly on a realistic simulation; this is
because all <strong>the</strong> information and data for <strong>the</strong> evaluation are dispersed within <strong>the</strong> specific context <strong>of</strong>
analysis in term <strong>of</strong> tacit and explict knowledge.
Our methodology aims to extract, aggregate and interpret this information and data making use <strong>of</strong>
analytical tools from different research areas (business process management, social network
analysis, financial analysis, statistical analysis, business architecture analysis, etc.) to provide an
overall and realistic impact evaluation.
3. Literature review
The literature review was conducted by examining <strong>the</strong> three fields <strong>of</strong> research that guide our project:
Change Management; Impact Analysis; Knowledge Management.
Figure 1: The three fields <strong>of</strong> research
Every time a change is in progress, Change Management is a crucial approach for a firm
(Kanter,2001). The Change management practices include a variety <strong>of</strong> organizational interventions
that, when executed properly and in consistency with internal and external organizational events,
facilitate <strong>the</strong> enactment <strong>of</strong> organizational change processes.
Academic and pr<strong>of</strong>essional literature proposes a set <strong>of</strong> managerial practices that better support <strong>the</strong>
enactment <strong>of</strong> organizational change processes (Armenakis and Bedeian, 1999; Buchanan et al.,
2005; Casio, 2002; Jones et al., 2004; Kanter, 2001; Kotter, 1996; Meyer and Stensaker, 2006;
Nadler, 1998; Whelan-Berry et al., 2003, among o<strong>the</strong>rs).
Within Change Management a crucial facet is <strong>the</strong> evaluation <strong>of</strong> <strong>the</strong> direct/indirect impacts related to a
process <strong>of</strong> change. An Ex-ante evaluation is defined as <strong>the</strong> predictive evaluation which is performed
in order to estimate and evaluate <strong>the</strong> impact <strong>of</strong> future situations (Remenyi, 1999). In general, <strong>the</strong> main
contributions in this field are largely from <strong>the</strong> s<strong>of</strong>tware maintenance (Bohner and Arnold, 1996; Linvall,
1997; Pfleeger, 1998), even if Impact Analysis plays also an undoubtedly crucial role throughout <strong>the</strong>
life cycle <strong>of</strong> a product/service. Moreover, it has changed over time many facets as it has been used in
different application contexts: Business Impact Analysis (Moyle,2006; Kirvan,2009), Economic Impact
Analysis (Moore,1994; Vogelsong, 2011), Change Impact Analysis (Lee, 1998;), Cross Impact
Analysis, etc.
In order to analyze <strong>the</strong> impacts <strong>of</strong> a change, it is necessary to extract information directly from <strong>the</strong>
application context in which it operates (Nonaka and Takaeuchi, 1995). These information are <strong>of</strong>ten
scattered among various departments or included within different information systems (Spender and
Grant, 1996; Dias, 2001). Knowledge Management practices becomes essential to identify sources
where tacit and explicit knowledge is placed and to make information available for a more strategic
use.
837

4. Methodological approach
Angelo Corallo and Fabrizio Errico
The research is carried out through several pillars as shown in <strong>the</strong> figure below.
Figure 2: The methodological architecture
4.1 The desk study
It is related to <strong>the</strong> Analysis and systematization <strong>of</strong> existing methodologies in <strong>the</strong> field <strong>of</strong> Impact
Analysis, Knowledge Management and Change Management; <strong>the</strong> aims <strong>of</strong> this step is to analyse and
systematize existing methodologies exploring <strong>the</strong> State <strong>of</strong> <strong>the</strong> art <strong>of</strong> <strong>the</strong>se three domains in order to
create a common knowledge base and to produce, as result, a taxonomy <strong>of</strong> methodologies and a set
<strong>of</strong> best practices.
4.2 The Community <strong>of</strong> Practice
The second step concerns <strong>the</strong> identification <strong>of</strong> a pool <strong>of</strong> experts conceived as a bridge between <strong>the</strong>
business environment (firms) and <strong>the</strong> research group. In this phase several Case Studies and <strong>the</strong>
respective technologies are defined.
This pool <strong>of</strong> experts operates as a Community <strong>of</strong> Practice in which each person (responsible for a
specific case study) interacts directly with <strong>the</strong> firm and acquires information/data about <strong>the</strong> technology
and <strong>the</strong> business environment. The four case studies are:
Table 1: The four case studies
N° Case study Technology Domain
Case Study 1 A Knowledge-Based Engineering (KBE) tool to
automatize <strong>the</strong> design <strong>of</strong> gears
Aeronautic Sector
Case Study 2 A Platform for <strong>the</strong> automation and tracking <strong>of</strong> <strong>the</strong>
Maintenance, Repair and Overhaul process
Aeronautic Sector
Case Study 3 A Damage Control System Naval Sector
Case Study 4 An On board Stability System Naval Sector
4.3 Validation phase
“Ex-post Evaluation” on <strong>the</strong> above-mentioned case studies. The aim is to conduct <strong>the</strong> impact analysis
on <strong>the</strong> four case studies (ex-post Impact Analysis).Evaluations <strong>of</strong> a new technology introduction are
traditionally based mainly on financial estimates, such as NPV but our scope is to give managers an
838

Angelo Corallo and Fabrizio Errico
overview <strong>of</strong> all possible direct and indirect impacts. As result <strong>of</strong> this phase a draft version <strong>of</strong> <strong>the</strong>
Impact Analysis Methodology is presented, in which are defined:
The main methodology steps;
Impact Analysis Tools and Models;
A set <strong>of</strong> indicators categorized in relation with <strong>the</strong> typology <strong>of</strong> impact analyzed;
4.4 Simulation phase
“Ex-ante Impact Analysis” on new case studies. The aims is to streng<strong>the</strong>n <strong>the</strong> methodology directly
applying it on new technologies and new business environments.
5. Current results and next steps
The first result was <strong>the</strong> systematization <strong>of</strong> <strong>the</strong> state <strong>of</strong> <strong>the</strong> Art in <strong>the</strong> field <strong>of</strong> Impact Analysis,
Knowledge Management and Change Management. In particular:
Table 2: Results from <strong>the</strong> desk study
Field Results
Impact Analysis Taxonomy related to:
Business Impact Analysis
Technology Impact Analysis
Change Impact Analysis
Regulatory Impact Analysis
Analysis <strong>of</strong>:
Impact on processes
Impact on competences
Impact on activities
Impact on legacy systems
Knowledge Management Tools and Models for:
data modeling;
data extracting;
data ga<strong>the</strong>ring;
Identification <strong>of</strong> Key Performance Indicators (KPIs)
Change Management Taxonomy and Methodology structure
Tools and Models to manage changes
The second result was <strong>the</strong> creation <strong>of</strong> <strong>the</strong> Community <strong>of</strong> Practice and <strong>the</strong> case studies identified: The
community consists <strong>of</strong> ten people operating in complex domains (aeronautics, naval) and with
different backgrounds (economics, engineering, statistics); <strong>the</strong> case studies identified are four (see
section methodological approach).
Ano<strong>the</strong>r partial result is a first draft <strong>of</strong> <strong>the</strong> Impact Analysis Methodology. It has been created thanks to
<strong>the</strong> interaction <strong>of</strong> <strong>the</strong> experts with <strong>the</strong> different business environments. The main steps and <strong>the</strong>
relative tools <strong>of</strong> analysis have been defined. Next steps are:
Fulfillment <strong>of</strong> <strong>the</strong> Evaluation Phase: final version <strong>of</strong> <strong>the</strong> methodology and ex post evaluation <strong>of</strong>
<strong>the</strong> impacts produced by <strong>the</strong> four different technologies considered within <strong>the</strong> case studies;
Simulation Phase: extended application <strong>of</strong> <strong>the</strong> methodology in several business contexts;
6. Conclusion
Results from this first phase <strong>of</strong> research demonstrate that information and data for our analysis are
dispersed within firms. Our methodology will give <strong>the</strong> possibility to extract, aggregate and interpret this
information and data making use <strong>of</strong> analytical tools from different research areas (business process
management, social network analysis, financial analysis, statistic analysis, business architecture
analysis, etc.) so as to provide an overall and accurate impact evaluation. But starting from <strong>the</strong> data
and information extracted and <strong>the</strong> expertise <strong>of</strong> <strong>the</strong> Community <strong>of</strong> Practice member, <strong>the</strong> idea is to
develop a technological platform ables to automatically extract and elaborate information from <strong>the</strong>
business environment in a real-time manner.
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840

Requirements <strong>of</strong> Knowledge-Management in Industrial
Organisations and <strong>the</strong> Sector <strong>of</strong> Public Safety and
Security: Same or Different?
Christian Lindemann, Christina Schäfer and Rainer Koch
University <strong>of</strong> Paderborn (C.I.K.), Paderborn, Germany
lindemann@cik.upb.de
c.schaefer@cik.upb.de
r.koch@cik.upb.de
Abstract: In times <strong>of</strong> globalisation and digital revolution information has become one <strong>of</strong> <strong>the</strong> most important
(production-) factors in many companies and domains. As <strong>the</strong> worth <strong>of</strong> information nowadays still is hard to
quantify, nobody will argue that having <strong>the</strong> right information at <strong>the</strong> right time has a significant influence to <strong>the</strong>
success and productiveness <strong>of</strong> any organisation. As many organisations have figured about <strong>the</strong> relevance <strong>of</strong>
information, <strong>the</strong>y still only use a small part <strong>of</strong> <strong>the</strong> existing knowledge. This phenomenon is independent <strong>of</strong> <strong>the</strong>
characterisation <strong>of</strong> <strong>the</strong> organisation. Studies show that only 30% <strong>of</strong> <strong>the</strong> existing knowledge in an organisation is
actually used (Lehner 2008), while <strong>the</strong> respective knowledge is owned by individual knowledge carrier. The
demographic development <strong>of</strong> <strong>the</strong> society in most industrial countries, where knowledge is a main production
factor will change rapidly in <strong>the</strong> next years (Pack 2000), many <strong>of</strong> <strong>the</strong>se knowledge carriers will leave <strong>the</strong>
companies cause <strong>of</strong> retirement. In this case, valuable knowledge carriers leave <strong>the</strong> company without ensuring an
adequate knowledge transfer; which can mean a substantial loss for <strong>the</strong> organisation especially as <strong>the</strong> amount <strong>of</strong>
qualified employees will decrease. That fosters <strong>the</strong> need <strong>of</strong> <strong>the</strong> organisation to embody <strong>the</strong> knowledge <strong>of</strong> <strong>the</strong>ir
employees to face <strong>the</strong> raising complexity <strong>of</strong> technology and environment in a production The presence <strong>of</strong>
structured, reliable and reusable information is in case <strong>of</strong> industrial production and also in <strong>the</strong> sector <strong>of</strong> public
safety and security (PSS) <strong>the</strong> key for an efficient problem-solving. Dividing implicit and explicit knowledge <strong>the</strong>
chosen domains and <strong>the</strong>refore problem-solving in <strong>the</strong>se domains is mostly based on implicit, practical
knowledge. This makes it hard to ga<strong>the</strong>r and appropriate aggregate <strong>the</strong> knowledge <strong>of</strong> <strong>the</strong> employees. During
research activities <strong>of</strong> <strong>the</strong> working group experiences in several projects (AirShield: Airborne Remote Sensing for
Hazard Inspection by Network Enabled Lightweight Drones and LAGE, Integration <strong>of</strong> existing information
systems for joint crisis management, funded by BMBF “Research for civil security“ HighTech-Strategy;
MobisPro: Process oriented integration <strong>of</strong> fire prevention and protection by semantic data aggregation for
interorganisational collaboration, funded by BMWI under <strong>the</strong> scope <strong>of</strong> SimoBIT Program; SIS, Knowledge
Distribution and Information Provision for <strong>the</strong> technical Service, funded by Industrial Partners) in <strong>the</strong> sector <strong>of</strong>
PSS and industrial production especially <strong>of</strong> small and medium sized enterprises (SME) could be gain, <strong>the</strong>refore
this paper compares <strong>the</strong> existing business conditions <strong>of</strong> <strong>the</strong> domains concerning demographic change.
Fur<strong>the</strong>rmore <strong>the</strong> requirements for a knowledge management solution will be derived.
Keywords: knowledge-management, requirements, industrial production, public safety and security,
demographic change
1. Context conditions in industrial organisations and <strong>the</strong> sector <strong>of</strong> public
safety and security
For discussing <strong>the</strong> explicit requirements to a knowledge-management-system (KM-system) in <strong>the</strong>
mentioned domains, general conditions and <strong>the</strong> context <strong>of</strong> <strong>the</strong> operating range have to be figured out.
A crisis situation is characterized for organisations in <strong>the</strong> civil defence with a high physical and
psychical pressure. This on <strong>the</strong> one hand due to conditions <strong>of</strong> <strong>the</strong> environment, for example blistering
heat, smoke development or difficult terrain and on <strong>the</strong> o<strong>the</strong>r hand <strong>the</strong> potential loss <strong>of</strong> human life
and expected material damage (Plass 2010). This is caused by <strong>the</strong> fact that crisis situations are
generally a variance <strong>of</strong> <strong>the</strong> normal state what (Tur<strong>of</strong>f 2004) describe as “Exceptions as Norms”.
Comparing <strong>the</strong> cited conditions with <strong>the</strong> working context <strong>of</strong> technical service similarities can be
noticed. Hence <strong>the</strong> work starts in case <strong>of</strong> disturbance or a necessary maintenance process which
determinate <strong>the</strong> ordinary production flow. In this relation <strong>the</strong> raising complexity <strong>of</strong> product increase <strong>the</strong>
need <strong>of</strong> connecting information to provide costumer an adequate service in appropriate time. This
might e.g. caused by <strong>the</strong> requirements <strong>of</strong> “just-in-time”-manufacturing and <strong>the</strong> potential economic loss
triggered by machine stoppage.
Likewise civil defence organisations are subject to time-critical decisions to successfully overcome a
respective crisis situation. It should be clear that both examples are based on knowledge intense
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Christian Lindemann et al.
processes and can be characterized as high performance systems which indeed have knowledge
intense processes. Therefore in both domain processes are barely repeatable but have a high
demand for special knowledge and produce efficient results (Mistele 2008).
The meaning <strong>of</strong> a reminding system which recognizes and documents events, procedures and
solutions before, during and after an incident with <strong>the</strong> purpose to provide this information for
upcoming crisis is especially important for organisations in <strong>the</strong> sector <strong>of</strong> PSS (Tur<strong>of</strong>f 2004). That
indicates <strong>the</strong> importance <strong>of</strong> <strong>the</strong> implicit, practical knowledge to accomplish a disaster. Also <strong>the</strong>
knowledge <strong>of</strong> single processes within <strong>the</strong> scope <strong>of</strong> technical service especially for SME is anchored in
<strong>the</strong> respective employee. In SME’s, Managers have figured out, that <strong>the</strong> value <strong>of</strong> <strong>the</strong>ir company’s is
mainly based on <strong>the</strong>ir employees special knowledge (North 05). Under <strong>the</strong>se circumstances <strong>the</strong>
demographic change or <strong>the</strong> staff fluctuation are important threats to <strong>the</strong> long term business success.
The problem <strong>of</strong> actors in both domains is based on <strong>the</strong> non-existent <strong>of</strong> sufficient structured and
quantify knowledge. The search for reliable information is <strong>the</strong>n time consuming or depends directly on
<strong>the</strong> foreknowledge <strong>of</strong> ano<strong>the</strong>r actor. Free exchange <strong>of</strong> knowledge or required information between
actors within an organisation or between organisations is necessary to fulfil a particular goal and will
improve <strong>the</strong> respective approach.
2. Requirements <strong>of</strong> knowledge-management in <strong>the</strong> respective domains
Designing a KM- system a holistic view <strong>of</strong> <strong>the</strong> expected user and his context is inevitable. During an
operation <strong>the</strong> role and <strong>the</strong>refore <strong>the</strong> tasks and responsibilities <strong>of</strong> responders may change. In this case
<strong>the</strong> user needs o<strong>the</strong>r information to accomplish his duty and <strong>the</strong> system has to represent <strong>the</strong> dynamic
role changing. In contrast to that assigning one role is sufficient for an employee in technical service,
because even if his task varies his rights and responsibilities don´t change during run time.
In this regard <strong>the</strong> context <strong>of</strong> <strong>the</strong> user is influenced by changes in <strong>the</strong> environment, is <strong>the</strong>re any
detection <strong>of</strong> a machine stoppage or does <strong>the</strong> situation go worth and more staff is required? A KMsystem
must noticed and publish such alerts to <strong>the</strong> user to help him understand <strong>the</strong> current
development (Tur<strong>of</strong>f 2004).
Machine stoppage caused by an incident requires a structured course <strong>of</strong> action to get <strong>the</strong> “bug” fixed.
In most cases <strong>the</strong> chosen method is “trial and error” which is time consuming and cost <strong>the</strong> enterprise
a lot <strong>of</strong> money. Support with <strong>the</strong> right situation- and location-based information can advance <strong>the</strong>
troubleshooting process. Fur<strong>the</strong>rmore enriching <strong>the</strong> <strong>of</strong>fer with graphical illustrations will achieve <strong>the</strong>
intelligibility. Enterprises with an international orientation go beyond and have to ensure <strong>the</strong>
usefulness <strong>of</strong> information in o<strong>the</strong>r countries. Therefore overcoming linguistic and cultural barriers is a
requirement for industrial technical service. In <strong>the</strong> domain <strong>of</strong> PSS some aspects are <strong>the</strong> same and
some are different. Of course responders have <strong>the</strong> demand for situation- and location-based
information and an inter- and intra-organisational knowledge sharing.
But <strong>the</strong> deviating hierarchies <strong>of</strong> <strong>the</strong> respective organisation between various countries make it hard to
simply transfer <strong>the</strong> KM. The need <strong>of</strong> a graphical representation is indeed essential to have an
overview and <strong>the</strong> awareness <strong>of</strong> <strong>the</strong> situation. Information in this background are <strong>of</strong>ten geo-referenced,
even it is indirect because <strong>the</strong>y are coupled with affected objects. The position <strong>of</strong> responders, vehicles
or noticed dangerous hazards is important to present <strong>the</strong> current problem in its entirety (Schäfer
2010).
In addition <strong>the</strong> documentation <strong>of</strong> <strong>the</strong> operation history is necessary. While civil defense organisations
have a certain reporting duty (Lindemann 2010) <strong>the</strong> level <strong>of</strong> detail for <strong>the</strong> documentation in technical
service belongs to <strong>the</strong> convention <strong>of</strong> <strong>the</strong> respective enterprise. Especially by capturing that kind <strong>of</strong>
implicit knowledge a foundation can be realise to have useful solutions for upcoming events, that’s
why a KM- system has to face <strong>the</strong> requirement for operation reporting.
Table 1 above lists <strong>the</strong> described requirements which are clustered in functional, visual, data- and
information-oriented and usage-oriented categories. The relevance for <strong>the</strong> respective domain can be
obtained from <strong>the</strong> table.
Overall both field <strong>of</strong> application needs a KM- system with a high usability. The integration in everyday
working flows or <strong>the</strong> possibility for training scenarios is required to get along with <strong>the</strong> system in case
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Christian Lindemann et al.
<strong>of</strong> emergency. If <strong>the</strong> navigation or options are not clear to <strong>the</strong> user he will not use <strong>the</strong> system under
difficult conditions.
Table 1: Relevance <strong>of</strong> <strong>the</strong> requirements for <strong>the</strong> respective domain
Requirements Domains PSS Industrial Production
functional functional
visual
data‐ and and information‐
information‐
based
usage‐oriented
usage‐oriented
dynamic role based concept
Alerts: some kind <strong>of</strong>
notification by changing status
<strong>of</strong> <strong>the</strong> environment
need <strong>of</strong> graphical illustrations
situation‐ and location‐based
visualisation and information
posibility <strong>of</strong> language
modification
high information quality quality
reducing information overload
intergration <strong>of</strong> external data
dcumentation <strong>of</strong> <strong>the</strong>
operation
intergation in everyday
workflow
education and training
opportunities
self‐explanatory and intuitive
handling
3. Conclusion and future work
The need for KM-Solutions grows in both domains according to a rapid increase <strong>of</strong> necessary
information (North 2005) (Lindemann 2010) and <strong>the</strong> demographic development in <strong>the</strong> society. Both
domains have related conditions and similar requirements. Therefore detailed knowledge about
processes <strong>of</strong> both domains is necessary. On <strong>the</strong> one hand KM-systems <strong>the</strong>mselves need to allow <strong>the</strong>
user some degrees <strong>of</strong> freedom according to <strong>the</strong> fact that processes are knowledge intense and barely
repeatable. On <strong>the</strong> o<strong>the</strong>r hand <strong>the</strong> fact <strong>of</strong> time critical processes requires <strong>the</strong> systems to prevent an
information overload. Requirements <strong>of</strong> <strong>the</strong> considered domains for a holistic KM-solution are on many
levels very similar. Main differences are additional requirements in <strong>the</strong> PSS domain concerning
differing context conditions and different consequences <strong>of</strong> actions, as decisions may directly affect
survival human beings. In both cases <strong>the</strong> processes and <strong>the</strong> knowledge objects have to be well
known in order to create a KM-system. Therefore <strong>the</strong> knowledge intense processes have to be
studied and modeled carefully (Lindemann 2010) in order to obtain a knowledge base. As an
approach a KM-system developed for <strong>the</strong> PSS-domain is supposed to work with minor changes as
well for <strong>the</strong> industrial domain. Therefore <strong>the</strong> process models and knowledge bases as well as <strong>the</strong>
existing roles have to be exchanged, which still means some major effort.
So far only concepts were compared and different requirement techniques have been proven to work
with minor changes in both domains. In <strong>the</strong> next step we try to transfer directly solutions from <strong>the</strong> PSS
domain to new approaches in industrial technical service systems. Therefore a KM-system is
supposed to be transferred from <strong>the</strong> domain <strong>of</strong> PSS to <strong>the</strong> industrial domain.
The implementation <strong>of</strong> KM-systems in both domains is, due to <strong>the</strong> demographic change a crucial
need and a strategic success factor. For SME’s, where <strong>the</strong> knowledge <strong>of</strong> <strong>the</strong> employees is especially
important, is still a big issue. The introduction <strong>of</strong> KM solutions for <strong>the</strong>se company’s would be
supported by a holistic and adoptable system which would reduce costs and introduction costs.
843

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844

Measuring Knowledge
Víctor Reyes-Alcázar 1 , Antonio Romero-Tabares 2 and Antonio Torres-Olivera 1
1
Andalusian Agency for Healthcare Quality, Seville, Spain
2
Andalusian Agency for Health Technologies Assessment, Seville, Spain
victor.reyes@juntadeandalucia.es
antonio.romero.tabares@juntadeandalucia.es
antonio.torres@juntadeandalucia.es
Abstract: Today, <strong>the</strong> main asset <strong>of</strong> organizations no longer resides only in its tangible value, but also in
intellectual capital. This asset is a new value that cannot be recorded on <strong>the</strong> company balance sheet; however, it
does grant a competitive advantage over o<strong>the</strong>r organizations. Thus, <strong>the</strong> management <strong>of</strong> intangible assets
(organizational and strategic processes based on knowledge) now characterizes organizations focused on
excellence. This article presents a syn<strong>the</strong>tic index <strong>of</strong> scientific knowledge production that has been incorporated
into <strong>the</strong> strategic management system <strong>of</strong> a public organization with <strong>the</strong> mission <strong>of</strong> improving healthcare quality.
The syn<strong>the</strong>tic index <strong>of</strong> scientific production (SPI – Scientific Production Index) is made up <strong>of</strong> three specific
variables, two weighting factors and one independent variable. There are three specific variables: (1) Number <strong>of</strong>
Articles published in scientific journals, (2) Number <strong>of</strong> Abstracts accepted for conferences and (3) Number <strong>of</strong>
Research Projects financed. The weighting factor that affects <strong>the</strong> authorship attempts to encourage collaborative
work. The geographical weighting factor is aligned with <strong>the</strong> strategic vision <strong>of</strong> becoming a leader organization and
a model for o<strong>the</strong>r institutions. The incorporation <strong>of</strong> a syn<strong>the</strong>tic indicator <strong>of</strong> scientific production in <strong>the</strong> Balanced
Scorecard reinforces <strong>the</strong> link <strong>of</strong> <strong>the</strong> Learning and Growth perspective under <strong>the</strong> knowledge management
approach.
Keywords: quality, knowledge management, balanced scorecard, syn<strong>the</strong>tic index <strong>of</strong> scientific production
1. Background
Traditionally, tangible assets (physical & financial capital) were <strong>the</strong> organizations most valuable asset.
However, in <strong>the</strong> latter years <strong>of</strong> <strong>the</strong> twentieth century, <strong>the</strong>re was increasing consideration <strong>of</strong> intangible
assets (know-how, relationships with stakeholders, high quality operational process, etc.) as a key to
competing in dynamic and competitive environments, and organizational knowledge has become <strong>the</strong>
most important organizational resource (Drucker, 1992). Today, this is why <strong>the</strong> main asset <strong>of</strong> an
organization not only resides in its tangible value, but also in its intellectual capital, which is a new
value that cannot be recorded in <strong>the</strong> company balance sheets, but that gives it a competitive
advantage over o<strong>the</strong>r organizations. Thus, <strong>the</strong> management <strong>of</strong> intangible assets (organizational and
strategic processes based on knowledge) now characterizes organizations focused on excellence.
The value <strong>of</strong> intangible assets depends on <strong>the</strong> organizational context. Intangible assets differ from
one organization to ano<strong>the</strong>r. The value <strong>of</strong> an intangible asset can only be determined in <strong>the</strong> context <strong>of</strong>
<strong>the</strong> strategy that creates <strong>the</strong> value for a particular organization. The measurement <strong>of</strong> intangible assets
firstly requires <strong>the</strong> determination <strong>of</strong> which variables should be measured. Secondly, indicators must
be defined that can reflect <strong>the</strong> value <strong>of</strong> <strong>the</strong>se variables and, thirdly, <strong>the</strong> difficult task <strong>of</strong> determining
how such indicators will be presented, both internally and externally.
Academic organizations and scientific research institutions have an added goal among intangible
objectives. This objective is to increase <strong>the</strong> general body <strong>of</strong> knowledge on <strong>the</strong> subjects investigated.
The fulfilment <strong>of</strong> this goal also ensures <strong>the</strong> continuance and growth <strong>of</strong> <strong>the</strong> organization itself, and <strong>of</strong> its
components. Therefore, <strong>the</strong>se organizations need indicators to monitor compliance with <strong>the</strong>se
objectives, and to determine to what degree <strong>the</strong>y are met.
The health sector is complex. It includes politically diverse institutions and organizations
(governmental, public, and private) with a variety <strong>of</strong> purposes (biomedical research, drug
manufacturing, healthcare, public health, health administration, etc.). Research institutions and
universities use indicators that primarily reflect <strong>the</strong> scientific production <strong>of</strong> <strong>the</strong>se organizations and <strong>of</strong>
<strong>the</strong>ir members. These indicators provide insight into <strong>the</strong> quality <strong>of</strong> <strong>the</strong> research, its importance and <strong>the</strong>
relationships established with o<strong>the</strong>r research groups and different scientific sectors. Fur<strong>the</strong>rmore,
<strong>the</strong>se indicators are based on <strong>the</strong> number <strong>of</strong> items <strong>of</strong> citable literature and <strong>the</strong> number <strong>of</strong> citations
received and can be used on a large scale (King, 2004) and in organizational strategic planning
(Ismail, 2009).
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Víctor Reyes-Alcázar et al.
Impact factor is <strong>the</strong> most widely used bibliometric indicator because it is easy to use and its
calculation is easy to understand (Garfield, 1996; 1999). None<strong>the</strong>less, Impact Factor suffers
limitations stemming from its calculation, from <strong>the</strong> publications selection done and from <strong>the</strong> evaluated
citation period. All <strong>the</strong>se factors suggest that this indicator should not be used as <strong>the</strong> unique
bibliometric indicator (Seglen, 1997) at least when <strong>the</strong> research must be measured at a small scale.
It should be remembered that, due to <strong>the</strong> Impact Factor calculaton formula, in a strict sense, only
publications (not individual articles or authors) have Impact Factor. O<strong>the</strong>r indicators can be used and
<strong>the</strong>y can help to make a better judge <strong>of</strong> <strong>the</strong> scientific production, <strong>the</strong> authors impact (h-index) and <strong>the</strong>
journals impact (Eigenfactor) but documentalists must, and <strong>the</strong>y actually do, build bibliometric
indicators adapted to its own institutions (Hirsch, 2007) (Bergstrom et al, 2008) (Stegmann, 1999).
The Balanced Scorecard (BSC) is a management model that translates strategy into related
objectives, as measured by indicators linked to action plans that align <strong>the</strong> behaviour <strong>of</strong> <strong>the</strong> members
<strong>of</strong> <strong>the</strong> organization. There are four basic balanced scorecard perspectives. They are <strong>the</strong> learning and
growth perspective, <strong>the</strong> internal business perspective, <strong>the</strong> customer perspective and <strong>the</strong> financial
perspective. The BSC, especially through <strong>the</strong> learning and growth perspective, monitors and controls
those intangible activities that add value to <strong>the</strong> organization. However, <strong>the</strong> BSC concept has evolved
over time. Originally, it was essentially a measurement tool (Kaplan and Norton, 1992). It later
evolved into a strategic implementation tool (Kaplan and Norton, 1996). Today, it is part <strong>of</strong> <strong>the</strong> socalled
comprehensive strategic management, being closer to <strong>the</strong> measurement <strong>of</strong> intangible assets
(Kaplan and Norton, 2004). This paper presents a syn<strong>the</strong>tic indicator <strong>of</strong> scientific knowledge
production that has been incorporated into <strong>the</strong> strategic management system <strong>of</strong> a public organization
with <strong>the</strong> mission <strong>of</strong> improving healthcare quality. This paper has been developed by <strong>the</strong> Andalusian
Agency for Health Care Quality (AAHQ), a public foundation, attached to <strong>the</strong> Regional Ministry <strong>of</strong>
Health, which promotes quality and continuous improvement in <strong>the</strong> regional healthcare system
through different quality accreditation programs, and through <strong>the</strong> generation and dissemination <strong>of</strong>
knowledge.
2. Objective
The main objectives <strong>of</strong> this paper are to connect Learning and Growth under <strong>the</strong> Knowledge
Management approach with Balanced Scorecard, in an organization focused on health care quality,
and to establish <strong>the</strong> fact that <strong>the</strong> success <strong>of</strong> knowledge management can be measured by <strong>the</strong>
Balanced Scorecard.
3. Methodology
The methodological phases were:
(1) Review <strong>of</strong> <strong>the</strong> key success factors (KSFs) defined by <strong>the</strong> organization in its Strategic Plan.
(2) Identification <strong>of</strong> knowledge transfer as a key resource <strong>of</strong> strategic value. (3) Design <strong>of</strong> a syn<strong>the</strong>tic
indicator to monitor knowledge as a KSF.
(4) Selection <strong>of</strong> <strong>the</strong> variables that compose <strong>the</strong> indicator. (5) Ma<strong>the</strong>matical formulation <strong>of</strong> <strong>the</strong> equation
that will allow <strong>the</strong> integral calculation <strong>of</strong> each variable and <strong>the</strong> indicator. (6) Contextualization <strong>of</strong> <strong>the</strong>
indicator within <strong>the</strong> BSC.
Context: The project was carried out in <strong>the</strong> AAHQ, during 2010.
4. Results
1). The AAHQ has defined seven KSFs in <strong>the</strong>ir BSC. The KSF referring to knowledge was entitled
“knowledge as a key resource”.
2) An indicator associated to this KSF was defined: <strong>the</strong> syn<strong>the</strong>tic index <strong>of</strong> scientific production (SPI –
Scientific Production Index).
The SPI is made up <strong>of</strong> three specific variables, two weighting factors and one independent variable.
[2a] The three specific variables are:
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Number <strong>of</strong> Articles published in scientific journals (Varticle)
Number <strong>of</strong> Abstracts accepted for conferences (Vabstract)
Number <strong>of</strong> Research Projects financed (Vproject)
[2b] The two weighting factors (WF) are:
* Number <strong>of</strong> different authors who participate in a project, article or abstract (WF1)
WF1= Papers with internal authors (authors within AAHQ) < Papers with collaborative authorship
(authors external to AAHQ)
* Geographic criterion <strong>of</strong> <strong>the</strong> project, article or abstract (WF2)
WF2= Regional < National< <strong>International</strong>
[2c] An independent variable was defined, <strong>the</strong> Impact Factor <strong>of</strong> <strong>the</strong> journal where <strong>the</strong> articles are
published (IF - impact factor, published by <strong>the</strong> Journal Citation Reports)
3) Finally, <strong>the</strong> syn<strong>the</strong>tic index <strong>of</strong> scientific production (SPI) is defined by <strong>the</strong> expression:
In <strong>the</strong> BSC <strong>of</strong> <strong>the</strong> AAHQ, <strong>the</strong> SPI is measured each semester. The primary data are recorded in <strong>the</strong>
Data Warehouse <strong>of</strong> <strong>the</strong> organization and are exploited by means <strong>of</strong> <strong>the</strong> QlikView tool.
5. Discussion
Many individuals have stated that if you can't measure, you can't manage. This statement is also true
in <strong>the</strong> field <strong>of</strong> knowledge management. Metrics are needed, but are especially valuable when focusing
on <strong>the</strong> strategic or central elements <strong>of</strong> <strong>the</strong> organization.
The Scientific Production Index (SPI) is a scale indicator that minimizes <strong>the</strong> constituent factors <strong>of</strong>
scientific production prior to publication, in favour <strong>of</strong> <strong>the</strong> number <strong>of</strong> publications and <strong>the</strong>ir quality as
measured by a simple but understandable and reproducible operation. Our indicator, although based
on scientific production, gives a broader perspective <strong>of</strong> <strong>the</strong> characteristics <strong>of</strong> <strong>the</strong> organization in which
it is implemented. The SPI, as well as those indicators based on bibliometrics, is used to assess <strong>the</strong>
scientific quality <strong>of</strong> <strong>the</strong> organization, but additionally reports on strategic planning with respect to <strong>the</strong>
scientific production. This is why <strong>the</strong> SPI is included in <strong>the</strong> BSC <strong>of</strong> our organization with <strong>the</strong> same
weighting as <strong>the</strong> financial and production indicators.
Although <strong>the</strong> main activity <strong>of</strong> <strong>the</strong> AAHQ is associated with <strong>the</strong> different accreditation programmes, it is
not <strong>the</strong> only way in which <strong>the</strong> organization is visible. Hence <strong>the</strong> importance <strong>of</strong> knowledge
management (Nonaka, 1996; 2001). In fact, scientific publishing is not only necessary and essential,
but is incorporated into <strong>the</strong> strategic objectives <strong>of</strong> each <strong>of</strong> <strong>the</strong> departments that make up <strong>the</strong>
organization. Moreover, <strong>the</strong>se objectives are moving towards Employee Performance Goals for each
<strong>of</strong> <strong>the</strong> pr<strong>of</strong>essionals in <strong>the</strong> organization.
Therefore, knowledge <strong>of</strong> <strong>the</strong> weighting factors by <strong>the</strong> departments and pr<strong>of</strong>essionals in <strong>the</strong>
organization serves to emphasize <strong>the</strong> essential elements <strong>of</strong> scientific production: <strong>the</strong> focusing on
collaborative work and <strong>the</strong> importance <strong>of</strong> <strong>the</strong> visibility <strong>of</strong> <strong>the</strong> outcomes.
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Víctor Reyes-Alcázar et al.
The weighting factor that affects <strong>the</strong> authorship <strong>of</strong> <strong>the</strong> various outcomes <strong>of</strong> scientific production
attempts to encourage collaborative work. Therefore, it assigns greater value to joint work with
authors external to <strong>the</strong> organization than to those who are inter-departmental and less to <strong>the</strong> intradepartmental.
This weighting factor has two objectives. On <strong>the</strong> one hand, it recognizes <strong>the</strong> social
component <strong>of</strong> intellectual capital, and on <strong>the</strong> o<strong>the</strong>r, it embodies <strong>the</strong> essence <strong>of</strong> <strong>the</strong> indicator "number
<strong>of</strong> new colleague-to-colleague and member relationships spawned" (Liebowitz & Suen, 2000). The
geographical weighting factor is aligned with <strong>the</strong> strategic vision <strong>of</strong> becoming a leader organization
and a model for o<strong>the</strong>r institutions.
6. Conclusion
The incorporation <strong>of</strong> a syn<strong>the</strong>tic indicator <strong>of</strong> scientific production in <strong>the</strong> BSC reflects <strong>the</strong> strategic
importance that <strong>the</strong> scientific production has in <strong>the</strong> AAHQ, and reinforces <strong>the</strong> link <strong>of</strong> <strong>the</strong> Learning and
Growth under <strong>the</strong> Knowledge Management approach with BSC. The BSC, as a strategic performance
measurement tool helps in strategic management by linking some strategic indicators with
organizational emphasis on knowledge and learning initiatives.
The aim <strong>of</strong> <strong>the</strong> weighting factors is to reflect <strong>the</strong> direction <strong>of</strong> <strong>the</strong> organization towards collaborative
work and support enterprise strategy by facilitating effective communication to all pr<strong>of</strong>essionals <strong>of</strong>
goals and objectives related to scientific production.
Acknowledgments
We would like to acknowledge <strong>the</strong> research's support team <strong>of</strong> <strong>the</strong> Andalusian Agency for Health Care
Quality. This includes our research's technicians, Manuel Herrera-Usagre and Ángela Aguilar-de-
Leyva, PhD, as well as <strong>the</strong> contributions <strong>of</strong> Marta Reyes Corral, a researcher in training.
References
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Drucker, P.F. (1992) "The new society <strong>of</strong> organizations", Harvard Business Review, Vol. 70, No. 5, pp. 95-104.
Garfield E. How can impact factors be improved? BMJ. 1996; 313:411-3.
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Hirsch, JE. (2007) "Does <strong>the</strong> h index have predictive power?", <strong>Proceedings</strong> <strong>of</strong> <strong>the</strong> National Academy <strong>of</strong> Sciences
<strong>of</strong> <strong>the</strong> United States <strong>of</strong> America, Vol. 104, No. 49, pp. 19193-19198.
Ismail, S., Nason, E., Marjanovic, S. and Grant, J. (2009) Bibliometrics as a tool for supporting prospective R&D
decision making in <strong>the</strong> health sciences. Strengths, weakness and options for future development, RAND
Corporation, Santa Monica.
Kaplan R.S. and Norton D.P. (1996) The Balanced Scorecard: Translating strategy into action, Harvard Business
School Press, Boston.
Kaplan R.S. and Norton D.P. (2004) "Measuring <strong>the</strong> Strategic Readiness <strong>of</strong> Intangible Assets", Harvard Business
Review, Vol. 82, No. 2, pp 52-63.
Kaplan, R.S. and Norton D.P. (1992) "The balanced scorecard - Measures that drive performance", Harvard
Business Review, Vol. 70, No. 1, pp 71-79.
King, D.A. (2004) “The scientific impact <strong>of</strong> nations”. Nature, Vol. 430, No. 6997, pp. 311-316.
Liebowitz, J. and Suen, C.Y. (2000) "Developing knowledge management metrics for measuring intellectual
capital", Journal <strong>of</strong> Intellectual Capital, Vol. 1, No. 1, pp. 54-67.
Nonaka, I., Takeuchi, H. and Umemoto, K. (1996) “A <strong>the</strong>ory <strong>of</strong> organizational knowledge creation”, <strong>International</strong>
Journal <strong>of</strong> Technology Management, Vol. 11, No. 7-8, pp. 833-845.
Nonaka, I., Toyama, R. and Byosière, P. (2001) A <strong>the</strong>ory <strong>of</strong> organizational knowledge creation: understanding <strong>the</strong>
dynamic process <strong>of</strong> creating knowledge, Meinolf Dierkes, ed. Handbook <strong>of</strong> organizational learning and
knowledge, Oxford University Press, New York, NY. pp. 491-517.
Seglen PO. Why <strong>the</strong> impact factor <strong>of</strong> journals should not be used for evaluating research. BMJ. 1997;314:497-
502.
Stegmann, J. (1999). "Why not use Journal Impact Factors?" [online], EAHIL Newsletter to European Health
Librarians , No. 47, http://www.eahil.net/newsletter/47/impact.htm
849

Tracking Online Learning Communities Using Ontologies
José Braga de Vasconcelos 1 , Sónia Sousa 2 , David Ribeiro Lamas 2 and Ilya
Shmorgun 2
1
Faculdade de Ciência e Tecnologia, Universidade Fernando Pessoa, Porto,
Portugal
2
Institute <strong>of</strong> Informatics, Tallinn University, Estonia
jvasco@ufp.edu.pt
sonia.sousa@tlu.ee
david.lamas@tlu.ee
ilya.shmorgun@gmail.com
Abstract: This paper describes an ongoing project to develop a knowledge architecture that is being specified
and developed to support collaboration tasks as well as design and model online learning communities. The
primary goal <strong>of</strong> this research is to create an architecture suitable for use, initially, in online collaborative
procedures, but also scalable for later use in more generic forms <strong>of</strong> ontology-driven knowledge management
systems. The designed architecture and functionalities aim to create coherent web data layers for online learning
communities, defining <strong>the</strong> vocabulary and semantics for knowledge sharing and reuse projects. The relevance <strong>of</strong>
this research is grounded in <strong>the</strong> changes that are taking place in today’s learning and teaching contexts, and is to
provide a perspective on possible potential effects that those changes can have in our daily relationships, in <strong>the</strong>
way we seek and acquire information, or even in <strong>the</strong> way we teach and learn. This paper provides an
understanding <strong>of</strong> how learning communities are developed online. The investigation <strong>of</strong> online learning
communities lead to <strong>the</strong> development <strong>of</strong> an ontology that aims to facilitate a systematic recording <strong>of</strong> online
learning community manifestations as an effort to understand <strong>the</strong>ir life cycle. In this context we aim to understand
<strong>the</strong> life cycle <strong>of</strong> those online learning communities to better foster <strong>the</strong>ir inherent formal and informal learning
processes in a number <strong>of</strong> contexts. This paper describes and discusses <strong>the</strong> development and implementation <strong>of</strong>
an ontology that aims to facilitate a systematic recording <strong>of</strong> online learning community manifestations as an effort
to understand <strong>the</strong>ir life cycle.
Keywords: online learning communities, knowledge management and engineering, concept maps, ontologies
1. Introduction
The development <strong>of</strong> communities has been an aspect <strong>of</strong> <strong>the</strong> Internet since it beginning, and it has
ever since enabled <strong>the</strong> connection <strong>of</strong> people with corresponding interests, regardless <strong>of</strong> time and
space restrictions. And, in spite <strong>of</strong> in <strong>the</strong> beginning <strong>the</strong> Internet was known or seen as a mere
repository <strong>of</strong> information and data where online community members do not necessarily implied a
strong bond among <strong>the</strong> community, that has changed with <strong>the</strong> increased availability <strong>of</strong> user-generated
content mechanisms and with <strong>the</strong> growth <strong>of</strong> social networking services.
The Internet became <strong>the</strong> hub <strong>of</strong> socialization; became <strong>the</strong> logical extension <strong>of</strong> our human tendencies
toward toge<strong>the</strong>rness, that have been tailored our society and our cultures. Those reflected tendencies
towards an individual-centered approach whereas group-centered activities, creating context where
each individual contributes to <strong>the</strong> intellectual climate and technological infrastructure <strong>of</strong> society, ra<strong>the</strong>r
than <strong>the</strong> effects <strong>of</strong> media itself. Online learning communities are one <strong>of</strong> <strong>the</strong> examples <strong>of</strong> such
phenomena usually built upon multidisciplinary and innovative collaborative communities.
The following section describes <strong>the</strong> knowledge management and engineering approach, including <strong>the</strong>
knowledge elicitation and acquisition techniques used to describe <strong>the</strong> domain (online learning
communities, described in section 3). The following sections present <strong>the</strong> ontology design and
development method, and <strong>the</strong> design approach to model online learning communities using concept
maps and ontologies.
2. Knowledge Management and engineering approach
Knowledge management (KM) focuses on techniques <strong>of</strong> managing a common base <strong>of</strong> organizational
knowledge that allows heterogeneous organizational groups, functions and communities to coordinate
<strong>the</strong>ir efforts and share knowledge across time, function, discipline and task specific boundaries
(D'Adderio 2003). In addition, knowledge may be geographically distributed and stored in a variety <strong>of</strong>
different representations, e.g. tacit knowledge in researchers’ minds and structured information in
databases.
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José Braga de Vasconcelos et al.
In <strong>the</strong> knowledge-based economy universities are facing systematic changes. New research topics
and courses have been developed in different knowledge domains and curriculums. In general, <strong>the</strong>se
changes are transforming and revitalizing higher education. Academic functions are changed
because <strong>of</strong> emerging new expectations, new needs, competing markets for innovative knowledge and
technology production and <strong>the</strong> assimilation <strong>of</strong> information technology into <strong>the</strong> university environment
(Farsi and Talebi 2009). The dynamics <strong>of</strong> university research projects have become more sensitive to
industry collaboration opportunities, commercial exploitation, and are increasingly cross-disciplinary.
This project aims to contribute in this direction: to design an ontology-driven KM tool to support
research cooperation. The collaborative approach includes two distinct participatory design sessions:
one session includes eLearning expertise and ano<strong>the</strong>r session includes eLearning practitioners. Both
participants were given a focus question: what are online learning communities – and both were
asked to design a concept map to answer that question.
This concept maps provides preliminary exploratory insights that lead to <strong>the</strong> development <strong>of</strong> ontology
on online learning communities. The resulting ontology is based on <strong>the</strong> online learning domain
description and perspective using concept maps. Input ga<strong>the</strong>red aims to facilitate a systematic
recording <strong>of</strong> online learning community manifestations as an effort to understand <strong>the</strong>ir life cycle.
3. Online learning communities
Our social relations with online media in general or any technological medium ever since enabled <strong>the</strong>
connection <strong>of</strong> people with corresponding interests, regardless <strong>of</strong> time or space restrictions and always
allowed alternative forms <strong>of</strong> communication for people who already know each o<strong>the</strong>r primarily in real
life, also served as support to a variety <strong>of</strong> social and pr<strong>of</strong>essional goals, set a ground for flourishing
social networking and collaboration.
In addition, as <strong>the</strong> Internet afforded a proliferation <strong>of</strong> community building tools and organizations,
communities assumed <strong>the</strong> participation factor for granted, leading some online community initiatives
to emptiness and dissent. This points to <strong>the</strong> fact that although firmly rooted into Internet’s tradition,
online communities are inherently fragile. There is, tough a need to provide better understand this
changes and what role <strong>the</strong>y might have in our daily activities, especially from a learning interaction
point <strong>of</strong> view. As according to Swan, K and Shea (2005), learning outcomes in a virtual context
depends strongly on <strong>the</strong> online learning environment ability to support a sense <strong>of</strong> community.
This sense <strong>of</strong> community is what helps to foster <strong>the</strong> process <strong>of</strong> participation online needed so that <strong>the</strong>
learning process occurs. As according to Lave (2008) <strong>the</strong>re is no such thing as "learning" suis
generis, but only changing participation in culturally design settings <strong>of</strong> everyday life. And this
participation process occurs as a process <strong>of</strong> changing understanding in practice that is learning.
An online community <strong>the</strong>n can be seen as a facilitator <strong>of</strong> <strong>the</strong> knowledge construction process. Those
online communities and <strong>the</strong>ir environments can provide <strong>the</strong> needed resources for <strong>the</strong>ir members to
learn. The online community can be seen <strong>the</strong>n, as a facilitator process <strong>of</strong> learning as in this virtual
spaces learning occurs as part <strong>of</strong> each individual network and <strong>the</strong>ir shared relations and interactions
(i.e. results within a specific social context and results from <strong>the</strong>ir interactions with <strong>the</strong>ir media
artifacts).
According to Henri and Pudelko (2003) <strong>the</strong>re are three main points that define a virtual community: (1)
community goals, associated with <strong>the</strong> activity that will involve <strong>the</strong> construction <strong>of</strong> knowledge, (2) <strong>the</strong>ir
level <strong>of</strong> engagement and (3) <strong>the</strong>ir evolution and sustainability through time.
In sum, a virtual community beside provide members a space for participation also provide <strong>the</strong>
necessary tools and support for knowledge construction environment, and that is what shapes
individual development and learning (Paavola et.al., 2004; Lave and Wenger, 1991; Brown and
Duguid 2000).
4. Ontology design and development
4.1 Ontological design approach
The term “ontology” has its origins in metaphysics and philosophical sciences. In its most general
meaning, ontology is used to explain <strong>the</strong> nature <strong>of</strong> reality. There are at least a dozen <strong>of</strong> definitions <strong>of</strong>
ontologies in computer science literature, but <strong>the</strong> most widely cited is that provided by Gruber (1993).
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An ontology is a high-level formal specification <strong>of</strong> a knowledge domain: it is a formal and explicit
specification <strong>of</strong> a shared conceptualization.
A conceptualization is an abstract view <strong>of</strong> particular real-world entities, events and relationships
between <strong>the</strong>m. Formal refers to <strong>the</strong> fact that an ontology is a form <strong>of</strong> knowledge representation and
has a formal s<strong>of</strong>tware specification to represent such conceptualizations, for example, an ontology
has to be machine-readable. Explicit means that all types <strong>of</strong> primitives, concepts and constraints used
in <strong>the</strong> ontology specification must be explicitly defined. Finally, shared means that <strong>the</strong> knowledge
embedded in ontologies is a form <strong>of</strong> consensual knowledge, that is, it is not related to an individual,
but is accepted by a group.
4.2 Ontology driven methodology
Ontology design and development can be approached from several different perspectives:
inspirational, inductive, deductive, syn<strong>the</strong>tic and collaborative (Holsaple and Joshi 2002). In recent
years, <strong>the</strong>re has been a move towards integration <strong>of</strong> <strong>the</strong>se different styles (Edgington et al. 2004).
The underlying ontology-driven s<strong>of</strong>tware design method (figure 1) also attempts to integrate <strong>the</strong>se
different styles by focusing on a collaborative approach and building on existing ontology research,
such as <strong>the</strong> Enterprise Ontology (Uschold et al. 1997), ontology design (Swartout and Tate 1999),
and ontology development, a guide to create an ontology (Noy and McGuinness 2001).
Figure 1: Ontology development method
5. Modelling online learning communities
5.1 Knowledge elicitation and acquisition
The framework design and development was focused on a collaborative approach built on top <strong>of</strong> a
literature review and analysis. The collaborative approach included two distinct participatory design
sessions: one session includes eLearning expertise and ano<strong>the</strong>r session includes eLearning
practitioners. All participants were given a focus question: what are online learning communities?
Based on this key question, each were asked to design concept maps that answer that question.
These concept maps provide preliminary exploratory insights that leads to <strong>the</strong> development <strong>of</strong> <strong>the</strong>
overall concept maps and related ontology that defines an online learning community.
Results ga<strong>the</strong>red indicate similarities between expert and non-expert views <strong>of</strong> online learning
communities, especially when representing <strong>the</strong> teacher, learner and technology role within <strong>the</strong>
community space. However, <strong>the</strong>re were divergent views as well in regards to how <strong>the</strong>se roles
interconnect with each o<strong>the</strong>r and how <strong>the</strong>y are represented within <strong>the</strong> concept map structure.
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José Braga de Vasconcelos et al.
Input ga<strong>the</strong>red from <strong>the</strong> present research approach provides preliminary exploratory insights that help
on <strong>the</strong> design <strong>of</strong> a survey questions that relates trust with <strong>the</strong> online learners activity patterns. Same
regards with <strong>the</strong> development and implementation <strong>of</strong> ontology on online learning communities that
aims to facilitate a systematic recording <strong>of</strong> online learning community manifestations as an effort to
understand <strong>the</strong>ir life cycle.
5.2 Domain description using concept maps
Figure 2: A high-level OLC view using a concept map
Figure 3: A sketch <strong>of</strong> <strong>the</strong> OLC complete concept map
5.3 Domain specification using ontologies
The underlying s<strong>of</strong>tware architecture using formal ontologies is suitable for use in collaborative online
learning communities (OLC). This work also includes <strong>the</strong> aforementioned ontology specification
method. The ontology design and specification method follows <strong>the</strong> usual steps for <strong>the</strong> development <strong>of</strong>
an ontology: (a) <strong>the</strong> domain and scope definition <strong>of</strong> online leaning communities; (b) <strong>the</strong> definition <strong>of</strong> a
comprehensive list <strong>of</strong> terms (c) <strong>the</strong> class definition and related hierarchy; (d) <strong>the</strong> class properties; (e)
<strong>the</strong> role restrictions, and (f) a set <strong>of</strong> individuals (or instances) to illustrate and validate our approach.
The OLC ontology was developed using Protégé ontology tool (figure 4) and <strong>the</strong> related Web
Ontology Language (OWL) in order to make it possible to generate <strong>the</strong> programming language
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José Braga de Vasconcelos et al.
classes for specific learning application's data core. The idea is to facilitate <strong>the</strong> development <strong>of</strong>
ontology-driven OLC applications to develop reasoning mechanisms, context-based queries and
tracking procedures concerning online learning practices.
Figure 4: OLC Ontology using Protégé OWL
6. Conclusions and future work
The main rationale <strong>of</strong> this research is built on <strong>the</strong> belief that by understanding online learning
communities we will be able to better foster <strong>the</strong>ir inherent formal and informal learning processes in a
number <strong>of</strong> contexts. This paper presents <strong>the</strong> development <strong>of</strong> an ontology-driven research framework
designed towards an understanding and conceptualization <strong>of</strong> what online learning communities are
and how <strong>the</strong>y are seen nowadays within <strong>the</strong> education community.
The innovative nature <strong>of</strong> this research can be characterized by this systematic recording <strong>of</strong> online
learning community manifestations, recording that eventually will provide structural, social behavioral
or morphological patterns or some o<strong>the</strong>r connections that eventually help eliciting ways <strong>of</strong> support <strong>of</strong>
different learning and working life contexts. The relevance <strong>of</strong> this work is grounded in <strong>the</strong> idea <strong>of</strong>
developing an ontology for online learning communities. This ontology aims to facilitate a systematic
recording <strong>of</strong> online learning community manifestations as an effort to understand <strong>the</strong>ir life cycle and
<strong>the</strong>refore to provide mechanisms, which improve inherent formal and informal learning processes in a
number <strong>of</strong> contexts.
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Legitimate peripheral participation. New York: Cambridge University Press, 1991 (16th. printing).
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Development and Implementation <strong>of</strong> an Intellectual Capital
Model from a Balanced Scorecard: Practical Experience
from ECOPETROL S.A.
Martha López, Oscar Guerra and Sonia Castro
The Colombian Petroleum Institute (ICP) – ECOPETROL S.A., Piedecuesta,
Colombia
Martha.lopezcas@ecopetrol.com.co
Oscar.Guerra@ecopetrol.com.co
soniahelenacastro@gmail.com
Abstract: ECOPETROL S.A, <strong>the</strong> Colombian state oil company, is currently ranked at <strong>the</strong> 13 th place among <strong>the</strong>
world major energy companies, according to <strong>the</strong> PFC Energy (01/05/2011). An important part <strong>of</strong> <strong>the</strong> company’s
organization is <strong>the</strong> Colombian Petroleum Institute (ICP), a center for research, development and innovation that
has, among o<strong>the</strong>r tasks, <strong>the</strong> leadership in <strong>the</strong> formulation and implementation <strong>of</strong> strategies for knowledge
management and technology directed towards <strong>the</strong> streng<strong>the</strong>ning <strong>of</strong> its intellectual capital. The Intellectual Capital
(IC) model developed by ICP in 2005 is placed within <strong>the</strong> framework <strong>of</strong> <strong>the</strong> 7th Principle <strong>of</strong> ECOPETROL’s
Integral Policy for Knowledge and Innovation, which confers to technology, knowledge and innovation <strong>the</strong>
category <strong>of</strong> strategic resources that contribute to <strong>the</strong> generation <strong>of</strong> value and to <strong>the</strong> building and maintaining <strong>of</strong>
<strong>the</strong> company’s competitive edges. The IC model at ICP encompasses: (1) <strong>the</strong> employees (human capital), (2) <strong>the</strong>
interaction with customers (customer capital), (3) <strong>the</strong> structure and internal processes (process capital), and (4)
<strong>the</strong> results in innovation (innovation capital). The interrelation among <strong>the</strong>se components is visualized in <strong>the</strong> ICP
strategic map in order to guarantee its continuity. In order to verify <strong>the</strong> effectiveness <strong>of</strong> <strong>the</strong> IC model’s worth, a
part <strong>of</strong> <strong>the</strong> model is monitored and revised through ICP´s balanced scorecard. Such monitoring is aimed at
adjusting <strong>the</strong> ICP’s strategies for alignment and adaptability that ensure <strong>the</strong> organization’s future sustainability
and competitiveness. The development <strong>of</strong> an IC Model at ICP-ECOPETROL has allowed identifying fundamental
aspects in each <strong>of</strong> <strong>the</strong> model constituents, as well as has enabled to implement strategies to maximize <strong>the</strong>
intellectual capital and to better monitor and verify results. This has resulted in a sustained increase in most <strong>of</strong>
<strong>the</strong> company’s performance indicators monitored since 2005. Such advances include improvements in <strong>the</strong>
employees’ skills, in <strong>the</strong> relations with stakeholders and <strong>the</strong> company’s generation <strong>of</strong> value for <strong>the</strong>m, as well as
<strong>the</strong> increase in <strong>the</strong> generation <strong>of</strong> technologic solutions to leverage <strong>the</strong> accomplishment <strong>of</strong> business goals and
generate advantages to ECOPETROL S.A. Our paper will appeal <strong>the</strong> workshop attendees since it shows a case
study <strong>of</strong> <strong>the</strong> design, implementation and maintaining <strong>of</strong> an IC model within a regional player in <strong>the</strong> energy
business.
Keywords: intellectual capital, balanced scorecard, ECOPETROL
1. Introduction
In <strong>the</strong> age <strong>of</strong> <strong>the</strong> knowledge and innovation, <strong>the</strong> market value <strong>of</strong> companies is intimately linked to a
series <strong>of</strong> <strong>the</strong> intangible assets that provide organizations with competitive edges, and which have
been grouped under <strong>the</strong> term Intellectual Capital (e.g. Edvinsson and Malone, 1997). “Intellectual
capital”, says Hugh McDonald, “'is <strong>the</strong> knowledge that exists in an organization and can be used to
create differential advantage”.
Over <strong>the</strong> sixty years elapsed since its creation, ECOPETROL S.A has faced <strong>the</strong> mission <strong>of</strong> finding
energy sources and transforming <strong>the</strong>m into value for its customers and stakeholders, while ensuring
<strong>the</strong> persons’ integrity and <strong>the</strong> safety in <strong>the</strong> processes, and carefully handling <strong>the</strong> environment. Such a
challenge has necessarily involved <strong>the</strong> effective management <strong>of</strong> its intellectual capital, such that an
optimal and systematic use <strong>of</strong> <strong>the</strong> knowledge gained in both <strong>the</strong> technical and managerial tasks, as
well as its effective communication across <strong>the</strong> organization, can be guaranteed. Following this need,
since <strong>the</strong> mid-80s <strong>the</strong> company took <strong>the</strong> first steps towards managing its Intellectual Capital, an effort
that a decade later gave rise to <strong>the</strong> implementation <strong>of</strong> <strong>the</strong> Balanced Scorecard at <strong>the</strong> Colombian
Petroleum Institute (ICP).
In 2004, <strong>the</strong> company saw <strong>the</strong> formalization <strong>of</strong> a Business Policy for Knowledge Management and
Technology, guided to favor <strong>the</strong> streng<strong>the</strong>ning <strong>of</strong> ECOPETROL’s Intellectual Capital. Such policy
promoted <strong>the</strong> initiative <strong>of</strong> building a formal model <strong>of</strong> Intellectual Capital at ICP as a fundamental action
that assure that <strong>the</strong> company’s research center remains active and competitive.
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Here, we present <strong>the</strong> elements that constitute <strong>the</strong> IC model developed at ECOPETROL S.A for its
research center. They include <strong>the</strong> human capital, <strong>the</strong> customer capital, <strong>the</strong> process capital, and <strong>the</strong>
innovation capital. We show <strong>the</strong> way in which such elements are identified and how <strong>the</strong> company has
achieved <strong>the</strong>ir growth, as well as present schemes for <strong>the</strong> measurement and verification <strong>of</strong> results
obtained from <strong>the</strong> implementation <strong>of</strong> <strong>the</strong> model. Finally, we show historical indicators <strong>of</strong> ICP that
demonstrate <strong>the</strong> effectiveness <strong>of</strong> undertaking an adequate management <strong>of</strong> <strong>the</strong> firm’s intellectual
capital.
2. Theoretical framework
Due to its industrial character, ECOPETROL S.A continuously utilizes technology and knowledge in
<strong>the</strong> achievement <strong>of</strong> its goals and thus requires keeping an outstanding excellence level <strong>of</strong> human
talent and business management in order to be able to bring <strong>the</strong> benefits expected by its
shareholders.
The management <strong>of</strong> <strong>the</strong> intellectual capital at ECOPETROL S.A goes back to <strong>the</strong> mid 80’s, when <strong>the</strong>
company started facing a stage <strong>of</strong> self-sufficiency in <strong>the</strong> hydrocarbon production that provided <strong>the</strong>
opportunity to, among o<strong>the</strong>rs, build an own technologic capability for assisting <strong>the</strong> hydrocarbon
exploration, exploitation, refining, and transport activities. Up to this moment, <strong>the</strong> company had
behaved as a consumer <strong>of</strong> specialized technical services ra<strong>the</strong>r than as a developer <strong>of</strong> its own
technologic solutions.
It was in that context that <strong>the</strong> Colombian Petroleum Institute (ICP) was created in 1985 as a modern
center for research, development, and innovation, aimed at adding technologic value to <strong>the</strong> company
due to its back <strong>the</strong>n limited research capacity. Since <strong>the</strong> very beginning, ICP has pursued a sustained
and integral formation and development <strong>of</strong> its human capital as a fundamental result <strong>of</strong> <strong>the</strong> institute
(Aristizabal, 1995), including <strong>the</strong> management <strong>of</strong> technical and scientific information along with <strong>the</strong>
preservation <strong>of</strong> <strong>the</strong> national and international interinstitutional relations. The ultimate goal <strong>of</strong> this
undertaking was to enhance <strong>the</strong> company’s response capacity to <strong>the</strong> demands <strong>of</strong> <strong>the</strong> ongoing
business programs and projects. At that time, <strong>the</strong> concept <strong>of</strong> Intellectual Capital had only started to be
considered in a few companies, yet Ecopetrol was already conducting important initial efforts to
manage its intangible assets.
The intellectual capital <strong>of</strong> Ecopetrol S.A and <strong>of</strong> its research center, ICP, is constituted by <strong>the</strong>
knowledge, skills, and expertise <strong>of</strong> its employees, <strong>the</strong> research programs, <strong>the</strong> developed
technological products, <strong>the</strong> conferred patents, <strong>the</strong> company’s capability in information technologies,
<strong>the</strong> scientific spreading accomplishments, <strong>the</strong> systems for quality management, and <strong>the</strong> relationships
with customers.
Since <strong>the</strong> 90’s, <strong>the</strong> company has been monitoring results on Intellectual Capital as an integral part <strong>of</strong>
its annual management report. At <strong>the</strong> beginning, such monitoring was initially carried out at ICP, but
now it has expanded throughout <strong>the</strong> company and is evaluated through <strong>the</strong> company’s balanced
scorecard, whose results constitute a fundamental part <strong>of</strong> <strong>the</strong> company’s market value.
3. Intellectual capital
3.1 Balanced scorecard <strong>of</strong> ECOPETROL S.A.
By mid 1997 <strong>the</strong> “Tree diagram” methodology, until <strong>the</strong>n used for monitoring results, advances and
tendencies <strong>of</strong> products, operational processes and in general <strong>of</strong> all services and support processes,
was replaced by <strong>the</strong> Balanced Scorecard - BSC (Kaplan & Norton, 1996), a method still actively used
as an efficient management tool.
The BSC enables looking at <strong>the</strong> organization from various perspectives, such as Financial, Customer,
Internal and Learning, <strong>the</strong>reby transforming <strong>the</strong> vision and strategies <strong>of</strong> <strong>the</strong> company in strategic
goals and indicators. The individual goals <strong>of</strong> <strong>the</strong> four different perspectives merge toge<strong>the</strong>r in <strong>the</strong> way
<strong>of</strong> a chain <strong>of</strong> cause-and-effect relationships. The streng<strong>the</strong>ning and <strong>the</strong> alignment <strong>of</strong> intangible assets
results in an enhanced performance which ultimately conduces to <strong>the</strong> success with customers and
shareholders.
The ECOPETROL Balanced Scorecard considers <strong>the</strong> intangible assets as a key element to meet <strong>the</strong>
company’s business goals. By means <strong>of</strong> this tool, <strong>the</strong> company monitors and examines <strong>the</strong>
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effectiveness <strong>of</strong> its value proposition and <strong>the</strong> growth <strong>of</strong> <strong>the</strong> intellectual capital, with a view to adjusting
its alignment and adaptability in order to assure <strong>the</strong> future sustainability and competitivity. The
relationship between Intellectual Capital and BSC is shown in Figure 1.
Figure 1: Intellectual capital model within <strong>the</strong> balanced scorecard <strong>of</strong> ECOPETROL S.A.
Table 1 shows ICP’ Balance Scorecard for 2010. Here, most <strong>of</strong> <strong>the</strong> indicators shown correspond to
measurements <strong>of</strong> Intellectual Capital that resulted from <strong>the</strong> IC model presented in this paper.
Table 1: Balanced scorecard <strong>of</strong> ICP 2010
Financial
Customers and Interest Groups
Internal
Objective Indicator Measure Target Weight
Unit 2010
F.1 To guarantee providing F.1.1 Total Cost ICP US/BBL Confidential 5%
services at a competitive cost
and making an efficient use <strong>of</strong>
resources
equivalent
F.2 To yield verifiable pr<strong>of</strong>its by F.2.1 Verifiable pr<strong>of</strong>its <strong>of</strong> USD Millions Confidential 8%
implementing technology in
business
ICP projects
C1 To guarantee <strong>the</strong> customer
satisfaction as <strong>the</strong> best solution
in services and technology
C.2 To assure <strong>the</strong> technological
development to leverage growth.
C.3 To ensure <strong>the</strong> adoption <strong>of</strong>
socially responsible practices by
ICP Interest Groups.
I.1 To assure knowledge,
information, innovation and
technological development
C.1.1 Customer
satisfaction Index
C.2.1 Number <strong>of</strong> ECP
technological strengths
C.2.1 Number <strong>of</strong>
technological products
developed within
cooperation agreements
I.1.1 Number <strong>of</strong> Patent
applications filed.
I.1.2 Assurance degree <strong>of</strong>
ECP-Key Practices
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% Confidential 10%
No. Confidential 10%
No. Confidential 4%
No. Confidential 6%
% Confidential 10%

Learning
Martha López et al.
Objective Indicator Measure Target Weight
Unit 2010
I.2 To consolidate a
1.2.1 Compliance with % Confidential 6%
comprehensive model for <strong>the</strong>
provision and delivery <strong>of</strong> a
portfolio <strong>of</strong> services and
products
ICP-Service Agreements
I.3 To warrant a comprehensive I.3.1 Compliance with ICP % Confidential 6%
and efficient management project indicators
I.4 To achieve HSE international
standards
A.1 To assure <strong>the</strong> human talent
and <strong>the</strong> appropriate work
environment to leverage
strategy.
A.2 To assure knowledge,
information and technology
I.3.2 Efficiency in <strong>the</strong>
Internal Control System
I.3.3 ICP Budget
Execution.
I.3.4 Efficiency in <strong>the</strong>
Attention to Interest
Groups.
I.4.1 Rate <strong>of</strong> recurrence <strong>of</strong>
time-costing accidents at
ICP
I.4.2 Observance <strong>of</strong>
environmental activities.
A.1.1. Fulfillment <strong>of</strong> human
talent goals
I.1.2 Assurance degree <strong>of</strong>
ICP-key practices
3.2 Intellectual capital model developed by ICP – ECOPETROL S.A.
% Confidential 5%
% Confidential 5%
% Confidential 5%
Number <strong>of</strong>
Injured
persons
/million manhours
Confidential 5%
% Confidential 5%
% Confidential 5%
% Confidential 5%
There exist multiple models for measuring intellectual capital developed at companies and academic
institutions, being some <strong>of</strong> <strong>the</strong> widely known <strong>the</strong> Skandia AFS model, <strong>the</strong> Intelect model developed by
<strong>the</strong> Escorial Eur<strong>of</strong>orum Institute, <strong>the</strong> PLS-Consult in Denmark, and <strong>the</strong> Celemi and WM-Data in
Sweden (Pereda & Berrocal, 2010). The IC Model developed at ICP included elements <strong>of</strong> <strong>the</strong> Skandia
model, as described by Leif Edvinsson and Michael Malone (see Figure 2), but incorporates a
particular route to identify CI elements, how to make <strong>the</strong>m grow, <strong>the</strong>ir measurement, and what are <strong>the</strong>
expected results in each component <strong>of</strong> IC.
3.3 Human capital
Comprise <strong>the</strong> knowledge, skills and attitudes that <strong>the</strong> organization’s employees possess and use for
<strong>the</strong> fulfillment <strong>the</strong>ir strategic goals. The human capital is preserved by applying guidelines and policies
for knowledge assurance, with mutual learning, and by facilitating <strong>the</strong> improvement in <strong>the</strong> employees’
skills while promoting an adequate work environment for <strong>the</strong>ir personal and pr<strong>of</strong>essional
development.
The human talent management at ECOPETROL S.A, implemented also at ICP, is based on optimal
selection, development, performance, succession, and leadership processes designed to build and
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maintain trust relationships with <strong>the</strong> employees, to improve <strong>the</strong>ir skills, to assure wage
competitiveness, and to streng<strong>the</strong>n <strong>the</strong> company’s culture and values.
Figure 2: Components <strong>of</strong> intellectual capital according to Leif Edvinsson and Michael Malone
Along <strong>the</strong>se lines, measurements and programs aimed at improving <strong>the</strong> work environment and
streng<strong>the</strong>ning <strong>the</strong> organizational culture are conducted on a yearly basis. For instance, <strong>the</strong> survey
“Great Place to Work Institute” allow to identify gaps in <strong>the</strong> work environment that need to be closed
by implementing improvement plans within specific areas <strong>of</strong> <strong>the</strong> company.
ECOPETROL S.A has developed a model for competence assessment based on a functional model
accredited by <strong>the</strong> <strong>International</strong> Labour Organization (ILO). It includes <strong>the</strong> construction <strong>of</strong> functional
maps and competence standards, followed by <strong>the</strong> identification and assessment <strong>of</strong> key competences
for each position, from which a development plan, aimed at closing <strong>the</strong> gaps, results. Such
assessments are conducted for technical, organizational, and leadership competences.
3.3.1 Implementation
Table 2: Implementation <strong>of</strong> <strong>the</strong> capital human model at ICP
Identification Growth Measurement
Planning <strong>of</strong> competences
required at specific areas <strong>of</strong> <strong>the</strong>
company
Systematic evaluation <strong>of</strong>
competences and performance.
Level <strong>of</strong> Specialization.
Identification <strong>of</strong> future needs
and existing gaps
Use <strong>of</strong> information systems that
promote identification e.g., <strong>the</strong>
Human Resource Management
System, Yellow Pages, Practice
Communities.
Identification <strong>of</strong> key positions
Appropriated selection <strong>of</strong>
staff.
Enduring adjustment and
observance <strong>of</strong> <strong>the</strong> staff
development plans.
Assignation <strong>of</strong> proper
activities to <strong>the</strong> appropriated
staff (person-position
adjustment).
Encouragement to <strong>the</strong>
creation and operation <strong>of</strong>
Practice Communities.
Succession and
replacement processes.
Programs for staff incentive,
acknowledgement and
compensation.
Medium- and long-term
planning
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Level <strong>of</strong> Specialization.
BSC indicators regarding <strong>the</strong> development
<strong>of</strong> required competences to achieve <strong>the</strong>
desired performance (work environment,
observance <strong>of</strong> development plans,
performance management results)
Investment in training
Level <strong>of</strong> usage and recommendation <strong>of</strong>
personal and yellow pages contents.

3.3.2 Results
Performance results
Variation in number <strong>of</strong> employees (see Fig. 3)
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Investment in employee development (see Fig. 4)
Level <strong>of</strong> specialization <strong>of</strong> employees.
Work environment results..
Compliance with <strong>the</strong> development plans.
Creation <strong>of</strong> Practice Communities that assure <strong>the</strong> critical knowledge.
Level <strong>of</strong> usage and recommendation <strong>of</strong> Yellow Pages contents.
Figure 3 illustrates <strong>the</strong> variation over <strong>the</strong> last six years in <strong>the</strong> number <strong>of</strong> ICP employees available per
year to conduct <strong>the</strong> activities <strong>of</strong> <strong>the</strong> institute.
Figure 3: Variation in number <strong>of</strong> employees indicator
Figure 4 shows <strong>the</strong> investments in employee development made by ECOPETROL S.A during <strong>the</strong> last
5 years.
Figure 4: Investment in employee development indicator
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Figure 5 shows <strong>the</strong> temporal evolution in <strong>the</strong> period 2001-2010 <strong>of</strong> <strong>the</strong> level <strong>of</strong> specialization <strong>of</strong> ICP
employees, as a measure <strong>of</strong> <strong>the</strong> education level <strong>of</strong> ICP staff. The index represents <strong>the</strong> average <strong>of</strong> an
assigned value to <strong>the</strong> employee’s highest educational degree earned, as follows: PhD=6; MSc=5;
BSc with post-graduate education (Specialist)=4, BSc=3; Technologist=2; Technician=1;, High School
and o<strong>the</strong>rs = 0.
Figure 5: Level <strong>of</strong> specialization indicator
3.4 Customer capital
The ICP customer perspective is directed towards maintaining an enduring communication and
interaction with customers by identifying new business opportunities and continuously monitoring <strong>the</strong>
accomplishment <strong>of</strong> <strong>the</strong> fundamental activities that lead to a successful relation with <strong>the</strong> business units.
Along <strong>the</strong> same lines, special care is given to deviations that may hamper <strong>the</strong> normal course <strong>of</strong>
projects and <strong>the</strong> procurement <strong>of</strong> expected results, in order to seek customer satisfaction and loyalty.
3.4.1 Implementation
The implementation <strong>of</strong> <strong>the</strong> Customer Capital element within ICP’s Intellectual Capital model is
described in Table 3.
Table 3: Implementation <strong>of</strong> <strong>the</strong> customer capital model at ICP
Identification Growth Measurement
Systematic evaluation <strong>of</strong> customer satisfaction
and loyalty (through surveys)
Customer Characterization: corporate image
and positioning, billing and service frequency.
Implementation <strong>of</strong> information systems for
bolstering identification: Project Management
System, Customer Information System,
Complaints and Claims System
3.4.2 Results
Compliance <strong>of</strong> Service Agreements (Fig. 6).
Customer Satisfaction Index (Fig. 7)
Innovation in <strong>the</strong> portfolio
<strong>of</strong> services and
improvement <strong>of</strong>
processes
Improvement in <strong>the</strong>
Customer Service
System.
Systematic monitoring <strong>of</strong>
potential customers
(marketing)
Abiding contact (visits,
meetings).
Normalization <strong>of</strong> fees for
service and products.
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Customer Satisfaction Index
(BSC indicator, Project
surveys)
Compliance <strong>of</strong> Service
Agreements (BSC indicator)
Result <strong>of</strong> <strong>the</strong> customer
satisfaction corporate Survey.
Elements <strong>of</strong> <strong>the</strong> Customer
Information Service (billing,
frequency <strong>of</strong> applications, ..)
New customers per year
(Increase in <strong>the</strong> number <strong>of</strong>
Customers)
Customers per area <strong>of</strong>
technical support (internal
and external)

Tariff competitiveness.
New Customers per Year
Portfolio <strong>of</strong> Customers (internal and external)
Customers per area <strong>of</strong> technical support
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Figure 6 depicts <strong>the</strong> evolution in <strong>the</strong> compliance <strong>of</strong> service agreements between ICP and
ECOPETROL’s business units. The shared responsibilities and <strong>the</strong> product delivery times are
generally specified in <strong>the</strong>se agreements. In general, <strong>the</strong> agreement includes <strong>the</strong> expected result for
<strong>the</strong> timely delivery <strong>of</strong> <strong>the</strong> product or initiative, <strong>the</strong> man-hours employed, and <strong>the</strong> total costs incurred in
carrying out <strong>the</strong> project.
Figure 6: Compliance <strong>of</strong> services agreement indicator
Figure 7 shows <strong>the</strong> behavior over <strong>the</strong> last 8 years <strong>of</strong> <strong>the</strong> Level <strong>of</strong> Customer Satisfaction Index, which
is aimed at maintaining customer’s loyalty. The index portraits <strong>the</strong> level <strong>of</strong> customer satisfaction with
<strong>the</strong> delivered services and products, obtained from a survey conducted by <strong>the</strong> National Survey
Center. Its results are used to design and implement improvement actions.
Figure 7: Level <strong>of</strong> customer satisfaction indicator
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3.5 Process capital
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It consist <strong>of</strong> <strong>the</strong> strategies and guidelines, work processes, systems, structures, tools and
improvement programs that facilitate <strong>the</strong> management to obtain better results.
3.5.1 Implementation
The implementation <strong>of</strong> <strong>the</strong> Process Capital element within ICP’s Intellectual Capital model is
described in Table 4
Table 4: Implementation <strong>of</strong> <strong>the</strong> process capital model at ICP
Identification Growth Measurement
Strategic planning
Customer Value Proposition
Systems / documents that support <strong>the</strong>
identification: Quality Manual, Asset <strong>of</strong>
knowledge <strong>of</strong> <strong>the</strong> technological solutions
process, and management control
structure.
Inventory <strong>of</strong> information systems
Corporate normative
Audit reports
3.5.2 Results
Compliance <strong>of</strong> BSC´s objectives
Policies and guidelines <strong>of</strong> ECOPETROL S.A.
Documentation (system or tool)
Improvement <strong>of</strong> database and
information systems
Implementation <strong>of</strong>
recommendations from audits
and benchmarking (regular
confrontation)
Review, analysis and
improvement <strong>of</strong> processes as a
systematic activity
Process management
Program <strong>of</strong> divulgation at all
levels.
Review and systematic adjust <strong>of</strong>
<strong>the</strong> strategic planning
Permanent improvement plans
Technology solutions process (including sub-processes)
Management Control Structure
ISO Certification: Set <strong>of</strong> standards about quality and management
Laboratory Accreditation
Quality manual (managerial, technological solutions and support processes)
Compliance <strong>of</strong> improvement plans.
Referencing results.
Accredited laboratories
ISO 9000 Quality
Certification
Quality audits results
Level <strong>of</strong> implantation <strong>of</strong> <strong>the</strong>
Management Control
Structure through audit.
Referencing results (tariffs,
services, quality testing,
processes and systems)
Compliance and
effectiveness <strong>of</strong> improvement
and assurance plans.
Closing <strong>of</strong> quality findings
and gaps in <strong>the</strong> period.
Institutional Memory /
Communities <strong>of</strong> Practice
portals/ Lessons Learned /
Yellow Pages
Satisfaction level <strong>of</strong> internal
processes (according to
survey)
Knowledge Management portals: published Yellow Pages (see Figure 8), published Lessons
Learned (see Figure 9)
Figure 8 illustrates <strong>the</strong> amount <strong>of</strong> Yellow Pages published in <strong>the</strong> last seven years. This indicator is
cumulative and is used to monitor <strong>the</strong> number <strong>of</strong> personal pages available. Yellow pages hold
information about <strong>the</strong> skills, knowledge and interests <strong>of</strong> each employee and are used to find contacts
for specific issues within <strong>the</strong> company.
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Figure 8: Number <strong>of</strong> Yellow Pages published
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Figure 9 shows <strong>the</strong> number <strong>of</strong> lessons learned published in <strong>the</strong> last seven years. This indicator is
cumulative and is used to monitor <strong>the</strong> number <strong>of</strong> records available for consult. Lessons learned can
result from projects, activities, incidents or accidents.
Figure 9: Number <strong>of</strong> lessons learned published
At ICP different mechanisms are used to evaluate management, such as ISO 9001 audits, audit <strong>of</strong> <strong>the</strong>
Comptroller General’s <strong>of</strong>fice, among o<strong>the</strong>rs, in order to continually assess <strong>the</strong> adequacy, adaptability
and validity <strong>of</strong> documents and thus ensure <strong>the</strong> improvement <strong>of</strong> processes
3.6 Innovation capital
Consist <strong>of</strong> knowledge products that result <strong>of</strong> <strong>the</strong> technological solutions process and add value and
benefits to business and interest groups. Creative and innovative thinking, <strong>the</strong> driving force for ICP
management, is encouraged through <strong>the</strong> systematic use <strong>of</strong> challenge sessions in technical issues,
work sessions by <strong>the</strong> organization experts and by promoting <strong>the</strong> formation <strong>of</strong> high-performance
teams.
3.6.1 Implementation
The implementation <strong>of</strong> <strong>the</strong> Innovation Capital element within ICP’s Intellectual Capital model is
described in Table 5.
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Table 5: Implementation <strong>of</strong> <strong>the</strong> innovation capital model at ICP
Identification Growth Measurement
Portfolio <strong>of</strong> business opportunities
Documentary record <strong>of</strong> projects.
Implementation <strong>of</strong> technological
appropriation phase, which is an
integral part <strong>of</strong> technology valorization
Use <strong>of</strong> systems / tools that support <strong>the</strong>
identification step: project
management systems, system for
registration <strong>of</strong> technologic products
and patents.
3.6.2 Results
R&D Investment (see figure 10)
R&D budget versus company budget.
Number <strong>of</strong> structured ideas for research
Challenging Sessions
Ensuring and optimizing <strong>the</strong>
investment in research and
development (R & D).
Increasing <strong>of</strong> Company’s
portfolio <strong>of</strong> business
opportunities.
Sustainability <strong>of</strong> strategies
<strong>of</strong> knowledge assurance
and intellectual property
management
Verifiable pr<strong>of</strong>its <strong>of</strong> ICP projects implemented in ECOPETROL (see figure 11)
Intellectual property portfolio (see figure 12)
R&D results incorporated by applied projects
ICP's investment in R&D approved by COLCIENCIAS (see figure 13)
Publications (see figure 14)
Technology products declared
Business Licenses
R&D Investment
R&D budget versus company
budget.
Verifiable pr<strong>of</strong>its <strong>of</strong> ICP projects
implemented in ECOPETROL´s
businesses units
R&D results incorporated by applied
projects
Publications
Copyright registration
Patents
Technology products declared
Trade secrets
Business Licenses
ICP's investment in R&D approved
by COLCIENCIAS (The National
Science, Technology and Innovation
Office in Colombia)
Figure 10 illustrates <strong>the</strong> growth in <strong>the</strong> last six years <strong>of</strong> <strong>the</strong> annual R&D budget approved by
ECOPETROL, which is used by ICP.
Figure 10: Investment budget for research and development
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Martha López et al.
Figure 11 shows growth in <strong>the</strong> pr<strong>of</strong>its associated to ICP projects implemented in ECOPETROL´s
business units versus <strong>the</strong> investment budget and costs assigned to ICP by ECOPETROL S.A. The
unit <strong>of</strong> measurement is millions <strong>of</strong> U.S dollars.
Figure 11: Verifiable pr<strong>of</strong>its <strong>of</strong> ICP projects versus ICP's budget
Figure 12 shows <strong>the</strong> number <strong>of</strong> Patent applications filed by ECOPETROL from ICP. This process
responds to a strategy designed to ensure that all pending or granted patents correspond to
technologies already implemented in <strong>the</strong> company’s business. In this way, it is granted that <strong>the</strong>
company only file patents when it needs to defends innovation rights that streng<strong>the</strong>n its businesses. It
is important to emphasize that if <strong>the</strong> patents are not used or integrated into <strong>the</strong> business, <strong>the</strong>se will fail
to generate <strong>the</strong> expected value.
Figure 12: Number <strong>of</strong> patent applications submitted
Figure 13 shows <strong>the</strong> amount approved and recognized annually by COLCIENCIAS for ICP’s R&D
investment
Figure 14 illustrates <strong>the</strong> number <strong>of</strong> publications (papers published and posters presented in national
and international <strong>Conference</strong>s) by <strong>the</strong> ICP employees.
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Martha López et al.
Figure 13: ICP's investment in R&D approved by COLCIENCIAS
Figure 14: Publication <strong>of</strong> papers and posters by ICP
3.7 Current status <strong>of</strong> IC model Implementation in ECOPETROL S.A.
At present, most <strong>of</strong> <strong>the</strong> elements <strong>of</strong> <strong>the</strong> IC model presented in this paper have been implemented at
ECOPETROL S.A, being <strong>the</strong> Innovation Capital component almost exclusively handled by ICP
At <strong>the</strong> level <strong>of</strong> <strong>the</strong> company, <strong>the</strong> IC model has not been formalized yet. It still remains as a proposal
presented in 2005 by <strong>the</strong> team <strong>of</strong> <strong>the</strong> Technologic Management Division at ICP, currently belonging to
<strong>the</strong> Technology and Knowledge Management Unit.
Following <strong>the</strong> formal establishment <strong>of</strong> <strong>the</strong> company’s Program <strong>of</strong> Technology and Knowledge
Management in 2005, <strong>the</strong> efforts <strong>of</strong> <strong>the</strong> work team have been focused towards <strong>the</strong> spreading <strong>of</strong> <strong>the</strong>
program throughout <strong>the</strong> company by means <strong>of</strong> initiatives aimed at assuring <strong>the</strong> business knowledge,
in particular regarding culture, processes, and tools that contribute to <strong>the</strong> knowledge strategy.
Having raised awareness within <strong>the</strong> company about <strong>the</strong> importance <strong>of</strong> managing knowledge, many <strong>of</strong>
<strong>the</strong> indicators <strong>of</strong> <strong>the</strong> IC model have continued to be monitored through ICP’s and ECOPETROL’s
BSC. However, <strong>the</strong> IC model has not been revisited to validate <strong>the</strong> effectiveness <strong>of</strong> its implementation
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Martha López et al.
and to seek for improvements that can potentially be incorporated into <strong>the</strong> company’s BSC, as well as
into <strong>the</strong> planning <strong>of</strong> ECOPETROL’s divisions.
4. Conclusions
ICP results during <strong>the</strong> last years have contributed to build up <strong>the</strong> company’s trust in its research
center, which has resulted in a sustained increase in <strong>the</strong> R&D investment budgets. In <strong>the</strong> period
2004-2009, for instance, a net increase <strong>of</strong> 677% in <strong>the</strong> investment budget has been used to bolster
and define new research lines. A great deal <strong>of</strong> this investment assigned by ECOPETROL is a
consequence <strong>of</strong> <strong>the</strong> acknowledgement to <strong>the</strong> IC supplied by ICP.
We highlight <strong>the</strong> importance <strong>of</strong> assuring IC indicators in <strong>the</strong> BSC <strong>of</strong> different divisions. Being such
indicators a measure <strong>of</strong> <strong>the</strong> organization’s strategic goals, this ensures long-term sustainability <strong>of</strong> <strong>the</strong>
actions towards increasing ECOPETROL’s IC. A pro<strong>of</strong> <strong>of</strong> <strong>the</strong> benefits <strong>of</strong> this measure is observed in
<strong>the</strong> growth through time <strong>of</strong> IC indicators presented in this paper.
It is expected that this paper constitutes <strong>the</strong> first step towards resuming <strong>the</strong> implementation <strong>of</strong> <strong>the</strong> IC
model at ECOPETROL S.A, improving it on <strong>the</strong> basis <strong>of</strong> <strong>the</strong> results obtained in <strong>the</strong> last years, and
also allowing <strong>the</strong> model to be evaluated by o<strong>the</strong>r companies actively working on development <strong>of</strong> its
intellectual capital
We conclude that an IC model like <strong>the</strong> one we have presented here greatly contributes to <strong>the</strong> strategy
<strong>of</strong> Technology and Knowledge Management <strong>of</strong> a company, and have to be formalized and tested in
order to make an optimal utilization <strong>of</strong> <strong>the</strong> company’s Intellectual Capital.
As a demonstration <strong>of</strong> <strong>the</strong> achievements obtained in this process, in which streng<strong>the</strong>ning <strong>the</strong>
intellectual capital has played a fundamental role, ECOPETROL S.A. was nominated to <strong>the</strong> MAKE
(Most admired Knowledge Enterprises) GLOBAL 2010 award. This distinction is awarded to leading
companies in Knowledge Management. In this case, this recognition was awarded for <strong>the</strong> actions <strong>of</strong>
assurance and transfer on knowledge that ICP initiated in 2004. In Latin America, only Petrobras and
Ecopetrol were nominated to this recognition, along with 48 companies around <strong>the</strong> world.
Acknowledgements
The authors recognize <strong>the</strong> essential contribution <strong>of</strong> <strong>the</strong> Knowledge and Technology Management
Team at ICP led by Sonia Castro for its valuable work in developing <strong>the</strong> IC model presented in this
paper. We are grateful to Gustavo Arbeláez, Maria C. Serrano, Edgar Ramírez, and Claudia García.
References
Aristizábal, J. (1994) ICP, Diez Años de Progreso Tecnológico, ECOPETROL S.A., Bogotá.
ECOPETROL S.A. (2001-2010) Informe Anual de Actividades: Instituto Colombiano del Petróleo –ICP- 2001-
2010, Colombia.
ECOPETROL S.A. (2004) Informe de Postulación – Premio a la Calidad ECOPETROL S.A.: Instituto Colombiano
del Petróleo 2004, ECOPETROL S.A., Colombia.
ECOPETROL S.A. (2009) Gestión Empresarial y Finanzas ECOPETROL 2009, ECOPETROL S.A., Bogotá.
ECOPETROL S.A. (2011) Vademecum - Asamblea General de Accionistas 2011: Resultados ICP AÑO 2010,
ECOPETROL S.A., Colombia.
Edvinsson, L. and Malone, M. (1997) Intellectual Capital: Realizing your Company’s True Value by Finding its
Hidden Brainpower, HarperCollins Publishers, Inc., New York.
Kaplan, R. and Norton, D. (1996) The Balanced Scorecard: Translating Strategy into Action, Harvard Business
School Press, Boston.
Pereda, S. and Berrocal, F. (2010) Bases Conceptuales de Gestión del Conocimiento y del Capital Intelectual,
CEPADE-Universidad Politécnica de Madrid, Madrid.
Pereda, S. and Berrocal, F. (2010) Dirección y Gestión de Recursos Humanos, CEPADE-Universidad Politécnica
de Madrid, Madrid.
Puentes, N. (1988) Planificación Institucional de la Investigación y el Desarrollo: La Experiencia del ICP,
ECOPETROL S.A., Colombia.
Stewart, T. (1997) Intellectual Capital: The New Wealth <strong>of</strong> Organizations, Currency Doubleday, New York.
Stewart, T. (2001) The Wealth <strong>of</strong> Knowledge: Intellectual Capital and <strong>the</strong> Twenty-First-Century Organization,
Currency Doubleday, New York.
872

The Challenges <strong>of</strong> Locating Experts in a Global Research
and Development Organization
Mohamed Rabhi
Saudi Basic Industries Corporation - R&D, Riyadh, Kingdom <strong>of</strong> Saudi Arabia
errebhi@sabic.com
Abstract: Common thought <strong>of</strong>ten crosses scientist’s mind: <strong>the</strong>re must be someone in <strong>the</strong> company who knows
more about what I need. Researchers have always wished for a “magic people button” to locate fellow
researchers and developers with specific skills and expertise who can resolve and answer <strong>the</strong>ir questions.
Conceivably, and given <strong>the</strong> technological advances, it seems easy to build a tool in which, with <strong>the</strong> click <strong>of</strong> a
button, it is possible to find <strong>the</strong> right persons with <strong>the</strong> precise attributes. However, in global Research and
Development (R&D) organizations, <strong>the</strong>re is a real challenge around building <strong>the</strong> harmonized infrastructure,
granting <strong>the</strong> proper access, feeding <strong>the</strong> accurate data, and finding <strong>the</strong> experts. The staff number is high; <strong>the</strong>ir skill
sets are diverse; scientists do not know each o<strong>the</strong>r given <strong>the</strong> geographic and time-zones barriers; additionally,
regional and local laws and regulations can make it very difficult to upload and share personal information. More
importantly, scientists do not see tangible motivation, whe<strong>the</strong>r in terms <strong>of</strong> personal rewards or overall benefit to
<strong>the</strong> organization, to upload <strong>the</strong>ir personal and pr<strong>of</strong>essional data. Despite <strong>the</strong>se difficulties, we were able to build
an innovative tool to connect technologists across R&D, namely, <strong>the</strong> Expert Locator (EL); a proprietary solution
that potentially can make <strong>the</strong> knowledge locked in <strong>the</strong> heads <strong>of</strong> people accessible and available to <strong>the</strong> entire
organization. It consisted <strong>of</strong> an opt-in module where information and expertise can be shared to tap into <strong>the</strong>
organization collective intelligence and “Brain Power”. Critical content and required skill sets were pre-agreed
upon with <strong>the</strong> scientists. Data as affected by geographic boundaries, regional and local regulations, pro-active
participation, benefits to <strong>the</strong> organization, and evolution with time was successfully recorded and published; it is
important to report that initial enthusiasm and momentum always drive <strong>the</strong> participants numbers up; however,
with time data tend to show a slow down, and sometimes a plateau shape. New initiatives need to be put in place
to restart and revive <strong>the</strong> EL in order to redress <strong>the</strong> curve upward. One key success factor <strong>of</strong> <strong>the</strong> EL was <strong>the</strong>
usefulness <strong>of</strong> <strong>the</strong> “SEARCH” tool to find and collaborate among scientists. At <strong>the</strong> beginning <strong>of</strong> <strong>the</strong> project launch,
initial data indicates a modest use <strong>of</strong> <strong>the</strong> “Search” feature. With time, search hits increased due to added value <strong>of</strong>
<strong>the</strong> search outputs.
Keywords: expert, locate, find, tacit knowledge, global R&D
1. Introduction
Since <strong>the</strong> 1990s, with <strong>the</strong> shift in <strong>the</strong> economic views from an emphasis on tangible physical assets to
intellectual assets, it became obvious that companies without a strategic approach to corporate
Knowledge Management (KM) were unable to compete in this new economic environment. With <strong>the</strong>
onset <strong>of</strong> knowledge economy, scientific research and technical innovation are growing in power and
velocity as <strong>the</strong> ability <strong>of</strong> collective/mass knowledge drives technological progress to newer heights
(Halal, 2008). Although KM is a relatively young discipline, significant advances were made;
conceptual as well as practical designs, implementation, and use <strong>of</strong> knowledge repositories saw rapid
growth in recent years (Abecker and Decker, 1999; Rabhi and Twala, 2009; Rabhi, 2010; Rabhi 2011;
Cross et al., 2001, Nonaka, 1998).
Captured knowledge is usually referred to as codified, stored, explicit, or documented knowledge; it is
archived in pre-designed knowledge bases; explicit knowledge is expressed and stored in various
forms, including words, symbols and numbers, allowing knowledge flow conventionally and easily
within <strong>the</strong> organization; it is widely accepted that this type <strong>of</strong> knowledge is critical for <strong>the</strong> organization
growth and sustainability (Cross et al., 2001; Collison and Parcell, 2004).
On <strong>the</strong> o<strong>the</strong>r hand, knowledge locked in <strong>the</strong> heads <strong>of</strong> people (tacit knowledge), which is difficult to
express and codify, comes from experience, and depends on <strong>the</strong> context in which it was generated
(Haldin-Herrgard, 2000; Leonard and Sensiper, 1998). Therefore, tacit knowledge has been viewed
as an important asset for competition (Joia, 2007; Leonard and Sensiper, 1998). There is prevalent
belief that <strong>the</strong> highest value-knowledge is <strong>the</strong> tacit knowledge stored in heads <strong>of</strong> employees (Horvath
2000; Foos et al., 2006). Indeed, tacit knowledge is considered a very valuable resource, as it fosters
innovation and creates a sustainable competitive advantage for <strong>the</strong> organization (Leonard and
Sensiper, 1998).
Despite technological advances to find, apply, and use stored content, most <strong>of</strong>ten, <strong>the</strong> needed
knowledge resides in <strong>the</strong> heads <strong>of</strong> people (Joia, 2007; Jones, 2008; Vaiman and Vance, 2008).
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Mohamed Rabhi
Therefore, <strong>the</strong> need for traditional one-to-one, one-to-many, and many-to-many human interactions
become necessary (Ambrosini and Bowman, 2001; Stewart, 1998). That person or group may be
somewhere in <strong>the</strong> company, but, in global R&D environments, it is very difficult to find out accurately,
and in a timely manner. Typically, researchers know next door fellow colleagues, and at best <strong>the</strong>ir
personal networks; this is already good but not sufficient to achieve <strong>the</strong>ir objectives satisfactorily. In a
large global R&D organization, <strong>the</strong> need for a more comprehensive tool to timely locate <strong>the</strong> right
person with <strong>the</strong> right set <strong>of</strong> skills and expertise is becoming an absolute necessity.
As reported by many KM researchers, employees learn more effectively by interacting with each o<strong>the</strong>r
because <strong>the</strong> tacit knowledge and expertise are difficult to codify and store in a knowledge repositories
(Ackerman and Halverson 1998; Bennis 1997; Bishop 2000; Cross and Baird 2000; Gibson 1996;
Stewart 1997; Wellins et al. 1993; Yimam-Seid 1999). Fur<strong>the</strong>rmore, in <strong>the</strong> R&D environment, <strong>the</strong>
effect <strong>of</strong> cumulative interactive brain-power is not mere addition; ra<strong>the</strong>r it has been shown it can be
exponential multiplication (Rabhi, 2011). Consequently, organizations are multiplying <strong>the</strong>ir searches
for creative ways to transfer knowledge among <strong>the</strong>ir employees (Bou-Llusar and Segarra-Cipre, 2006;
Murray and Peyrefitte, 2007).
Previous research work has decisively established <strong>the</strong> important role <strong>of</strong> personal networks in
facilitating knowledge flow (Leonard and Sensiper, 1998; Birkinshaw and Sheehan, 2002; Cross and
Parker, 2004). This is particularly significant in R&D environment where knowledge flows have been
stressed and clearly linked to <strong>the</strong> innovation process (Allen et al, 1979; Katz and Tushman, 1981;
Tushman and Scanlan, 1981; Macdonald and Williams, 1993; Assimakopoulos and Yan, 2006; Allen
et al., 2007; Doak and Assimakopoulos, 2007).
A new kind <strong>of</strong> retrieval, people retrieval, is taking priority for knowledge intensive R&D organizations
(Whelan et al., 2009). The process <strong>of</strong> finding relevant individuals who have special attributes is also
called, among o<strong>the</strong>r names, expertise matching, expert locator, and people finder. The need to be
able to quickly and efficiently locate experts within <strong>the</strong> massive and heterogeneous data sources
stored in <strong>the</strong> organization’s databases has been recognized by many researchers. The major
challenge is to semantically integrate multiple expertise indications from diverse data sources stored
in <strong>the</strong> organization memory in order to facilitate and help users to locate <strong>the</strong> right experts (Liu et al.,
2005; Miller, 2004).
Liu et al. (2005) examined <strong>the</strong> advantages <strong>of</strong> using Resource Description Framework (RDF) for
expertise matching—<strong>the</strong> process <strong>of</strong> finding an individual with <strong>the</strong> required knowledge and skills, and
reported measurable success. They built an RDF-based expertise tool that helped Ph.D. applicants
locate <strong>the</strong> right supervisors. Expertise is not entered by <strong>the</strong> individual academics <strong>the</strong>mselves but
derived from <strong>the</strong>ir associated work outputs, including publications and projects; this information has
already been stored in University memory in dedicated databases. The system relies on information
stored in various technical, and non-technical databases, as <strong>the</strong> pr<strong>of</strong>essors carry on <strong>the</strong>ir daily work –
a watch-dog approach. The advantage is that as a <strong>the</strong> expertise changes over time <strong>the</strong>re is no need
to rely on <strong>the</strong> individuals to report and updates developments to <strong>the</strong>ir expertise pr<strong>of</strong>ile, thus avoiding
<strong>the</strong> tedious task <strong>of</strong> database maintenance.
Similar works were reported whereby, ra<strong>the</strong>r than creating a new databases to store <strong>the</strong> duplicate
information, some systems were developed to find up-to-date expertise data by monitoring emails
(Foner, 1997), browsing behavior (Cohen et al., 1998), and electronic repositories (Mattox et al.,
1999; McDonald and Ackerman, 2000). The issue with such approach is that data is not checked or
validated by <strong>the</strong> experts <strong>the</strong>mselves; worse, working on subjects unrelated to one’s expertise, a
random occurrence with high probability, can be mistakenly logged as expertise in <strong>the</strong> databases.
Moreover, using email as an implicit source for expertise may raise privacy and security issues; also,
browsing behaviors may reflect users interests and hobbies ra<strong>the</strong>r than <strong>the</strong>ir expertise.
In our work, we describe a very simple user-friendly system, whereby experts are responsible for <strong>the</strong>
accuracy <strong>of</strong> <strong>the</strong>ir scientific and technical data, Human Resources (HR) is responsible for personnel
information, and Information Technology (IT) is responsible for integration and harmonization.
The objective <strong>of</strong> our work is connect scientists across <strong>the</strong> globe so <strong>the</strong>y can “join or multiply brains”
and collaborate to turn ideas into technological innovation and business success.
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2. Methodology
Mohamed Rabhi
In our approach, we devise a simple system based on <strong>the</strong> fundamentals <strong>of</strong> finding <strong>the</strong> right expertise,
allocating <strong>the</strong> right “brain” resources to achieve organization objectives (Figure 1). System
development, deployment, and maintenance involved <strong>the</strong> cooperation <strong>of</strong> three major units: <strong>the</strong>
experts and management (R&D), Human Resources (HR), and Information technology (IT). The
experts were asked to enter <strong>the</strong>ir technical expertise; HR ensured that employee basic data is
accurate and up to date, and IT took on <strong>the</strong> critical task <strong>of</strong> taping into <strong>the</strong> right databases, integrate
among <strong>the</strong>m, and harmonize across geographic zones.
Figure 1: System basic fundamentals
When <strong>the</strong> experts log on to <strong>the</strong> system <strong>the</strong>ir basic data is automatically uploaded/retrieved (Figure 2);
<strong>the</strong>se include names, titles/positions, e-mails, phones, departments, degrees, etc. They can confirm
or request from HR an update to <strong>the</strong> basic page. They will <strong>the</strong>n navigate to pages <strong>of</strong> expertise and
special skills, where <strong>the</strong>y freely enter key words that clearly identify <strong>the</strong>m as experts in <strong>the</strong>ir fields.
The most important interface is <strong>the</strong> page where experts enter <strong>the</strong> technical and scientific projects <strong>the</strong>y
conducted and concluded as project leaders or members. In <strong>the</strong> last page, <strong>the</strong>y enter an important set
<strong>of</strong> data related to <strong>the</strong>ir publications in forms <strong>of</strong> refereed papers or patents.
Once <strong>the</strong> data is entered and saved it becomes “publicly” available to <strong>the</strong> global R&D organization
users. A powerful “Search” tool was overlaid to tap into all <strong>the</strong> databases; scientists use it to look and
find fellow experts based on key words and a variety <strong>of</strong> filters (Figure 3). The “search” results page
allows for instant direct contact with <strong>the</strong> expert <strong>of</strong> interest via a variety <strong>of</strong> embedded communication
tools. Depending <strong>of</strong> <strong>the</strong> nature <strong>of</strong> <strong>the</strong> request, <strong>the</strong> enquiry may be as simple as a quick consultation or
as demanding as a heavy involvement in a major research or technical project.
The advantages <strong>of</strong> this approach include <strong>the</strong> quality and accuracy <strong>of</strong> <strong>the</strong> data since each unit in <strong>the</strong>
organization is responsible for its side, a shared but clearly delineated burden. Experts can go as
<strong>of</strong>ten as needed to update <strong>the</strong>ir uploaded skills and expertise; HR data is being maintained at <strong>the</strong>
organization level, and cross-checked by <strong>the</strong> various users. IT is overseeing <strong>the</strong> various database and
platforms, and introducing any technology that contributes to <strong>the</strong> overall data quality and integrity
The main disadvantage is <strong>the</strong> burden on <strong>the</strong> experts to not only enter data but also ensure it is
updated and accurate as <strong>the</strong>ir expertise change over time. However, in our case, <strong>the</strong> organization is
aware <strong>of</strong> <strong>the</strong> load and associated direct and indirect cost, and is willing to accommodate this need,
provided continuous improvement is set to alleviate and minimize experts input and automate data
capture and storage from <strong>the</strong> various workspaces, databases, and relevant systems.
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Mohamed Rabhi
Figure 2: Basic expert’s information auto-uploaded from HR databases
Figure 3: The “SEARCH” tool based on key words and associated filters
3. Results and discussion
The Expert Locator (EL), a web-based application, provides for self-identified areas <strong>of</strong> expertise and
excellence around R&D products and technologies. The primary objective <strong>of</strong> <strong>the</strong> Expert Locator is to
help scientific and technical experts connect, network, and share knowledge within disciplines and
across communities <strong>of</strong> excellence (Whelan and Donnellan, 2008). The ultimate goal <strong>of</strong> <strong>the</strong> application
is to facilitate collaboration and <strong>the</strong> transformation <strong>of</strong> innovative ideas into business success. Often
we do not know what we know; <strong>the</strong> Global Expert Locator will enable us to fully leverage R&D’s
collective knowledge so that we do not reinvent <strong>the</strong> wheel (Von Heimburg, 2011)
In addition to basic contact information, <strong>the</strong> searchable directory includes areas <strong>of</strong> expertise, special
skills, patents, publications and completed projects. The advantages <strong>of</strong> such a directory are
countless, and include leveraging R&D’s collective intelligence and know-how; cost savings by faster
project completion; creating a fertile environment for brilliance, innovation, and performance. The
value is in <strong>the</strong> speed <strong>of</strong> solutions (Kuijpers, 2011). The Global Expert Locator truly creates a
boundless community where everyone, from East to West, can get connected to accelerate programs
for <strong>the</strong> business and <strong>the</strong> corporation (Kuijpers, 2011).
Although it took significant resources and full executive management support to roll out <strong>the</strong> Expert
Locator system, much more effort was still needed with <strong>the</strong> experts <strong>the</strong>mselves; a lot <strong>of</strong> convincing,
benefits showing, and sometimes targeted campaigns were also necessary for <strong>the</strong> population <strong>of</strong> <strong>the</strong>
needed databases. One strategic principle was made clear to all stakeholders <strong>of</strong> <strong>the</strong> Expert Locator,
<strong>the</strong> experts are fully aware <strong>of</strong> what <strong>the</strong> systems record about <strong>the</strong>m; moreover, <strong>the</strong>y have <strong>the</strong>
overriding authority to amend and update <strong>the</strong> stored information. Compared to o<strong>the</strong>r solutions
(McDonald and Ackerman, 2000; Liu et al, 2005), our approach requires more resources, but ensures
better data quality. Many o<strong>the</strong>r hurdles related to <strong>the</strong> personal privacy laws and <strong>the</strong> technology trade
compliance regulations in some countries needed to be addressed to minimize risks and maximize
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Mohamed Rabhi
benefits. Moreover, data consistency across <strong>the</strong> various geographic sites was a real challenge to HR,
IT, and <strong>the</strong> Experts.
The success <strong>of</strong> any expert locator solution depends largely on two factors, (i) <strong>the</strong> size and quality <strong>of</strong>
<strong>the</strong> data, and (ii) <strong>the</strong> usage <strong>of</strong> <strong>the</strong> solution. Some <strong>of</strong> <strong>the</strong> ways to evaluate <strong>the</strong>se factors would be <strong>the</strong>
development <strong>of</strong> appropriate metrics. In a first phase, we strived to input data and populate <strong>the</strong> solution
with <strong>the</strong> maximum <strong>of</strong> available expertise in our R&D community (potential being 100%). At <strong>the</strong>
deployment <strong>of</strong> <strong>the</strong> EL, and for <strong>the</strong> first four data collection periods, numbers <strong>of</strong> experts validating <strong>the</strong>ir
data increased steadily (Table 1). This can be explained by <strong>the</strong> enthusiasm and well thought
campaign; senior management support and role model also played a major role. As time went by,
figures started to slow down, level <strong>of</strong>f, and ending up in a plateau shape (figure 4). Once data starts to
plateau, we are at <strong>the</strong> cross-road <strong>of</strong> needing an innovative solution to redress <strong>the</strong> curve (see Table 1
and Fig 5, Period 7) and strive for new heights, hoping to achieve to set goal <strong>of</strong> 100%. It is worth
reporting that some units with <strong>the</strong> R&D organization did an excellent job and quickly reached levels
close to meeting <strong>the</strong> full potential numbers (Figure 5). Their positive experience may serve as
examples to learn from and apply to <strong>the</strong> remaining units to reach our objectives.
Table 1: Fast response followed by slow, <strong>the</strong>n level <strong>of</strong>f behavior
Phase Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7
% Achieved 20 30 40 45 45 45 49
Figure 4: Experts response in logging in and validating <strong>the</strong>ir data during a 7 period time
Figure 5: Data showing some R&D units near reaching <strong>the</strong> full potential; good examples to learn from
877

4. Conclusions and future work
Mohamed Rabhi
The Expert Locator Solution is an important step in <strong>the</strong> overall KM initiative in <strong>the</strong> R&D organization. It
showed that team work and involvement <strong>of</strong> all stakeholders, mainly <strong>the</strong> experts, R&D management,
HR, and IT are critical for <strong>the</strong> success <strong>of</strong> <strong>the</strong> solution. The EL Solution was developed and deployed.
The mission <strong>of</strong> data input and interlinking is nearly 50% complete. There is a need for innovative
ideas to attain higher numbers. More importantly, it is now time to start using and documenting <strong>the</strong>
system at <strong>the</strong> full global scale.
5. Future improvement work
Our immediate next step work will be <strong>the</strong> automatic links between all research and technical report
databases, HR unified base, and <strong>the</strong> EL Solution. This will simplify and reduce intervention by <strong>the</strong>
experts, saving time due to limited need for content quality control. Every time a paper or patent is
published, or a project is closed and report submitted, <strong>the</strong> data is automatically taken care <strong>of</strong> by <strong>the</strong>
Enterprise Content Management platform.
More metrics on <strong>the</strong> use <strong>of</strong> <strong>the</strong> solution and resulting collaboration among <strong>the</strong> global R&D experts will
be captured and reported to users and management. We will attempt to accurately evaluate <strong>the</strong> effect
on <strong>the</strong> business and hopefully report <strong>the</strong> return on investment.
We believe <strong>the</strong>se measures will contribute to <strong>the</strong> overall sustainability <strong>of</strong> <strong>the</strong> Expert Locator Solution
within <strong>the</strong> R&D Organization.
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