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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS<br />

JUNE 2011<br />

VOL 3, NO 2<br />

Allee (2003) and McElroy (2003) argued that the new foundation of the new knowledge<br />

economy is its people and their intelligences. They also highlighted the importance of technology<br />

to connect people and processes. Similarly, Cross and Parker (2004) defined this connectivity<br />

process as a social network, which will be the centre of execution strategy and performance and<br />

can have a substantial impact on performance, learning and innovation. This social web will<br />

keep the knowledge flow and will hold the organization together. Mendelson & Ziegler (1999)<br />

developed the Organizational IQ model. This model measures a company’s ability to quickly<br />

process information and make effective decisions. It provides strong results that have both<br />

economically and statistically significance, providing confidence on the development of the<br />

organizational IQ concept.<br />

Matheson and Matheson’s (1998) nine-principle model correlates IQ with performance, with<br />

smarter organizations significantly getting a high IQ score. These organizations not only perform<br />

better but more consistently. Organizations in which the principles are strongly rooted are better<br />

able to adopt decision-making best practices and to achieve superior results. The model fits very<br />

well with the purpose of this research as it allows the researcher to examine the processes<br />

through which Hispanic entrepreneurs make strategic decisions and make them as effective as<br />

their operational process.<br />

Literature review<br />

In an empirical study in the Ministry of Entrepreneurial Development in Malaysia, the<br />

relationship between human resources, related issues, responsibilities and technological aspects<br />

and knowledge management was investigated. This study concludes that the said ministry does<br />

not have any particular knowledge management strategy. Of course, this study explains that<br />

knowledge exists in this ministry and it is projected in the processes and guidelines of the<br />

ministry and also the functional processes and databases. The results from this study show that<br />

the staff members of this ministry still feel that the head of the department or heads of the<br />

divisions are responsible for knowledge management in the department. Only 48.3 percent of the<br />

staff members feel that all staff members are responsible for knowledge management. To<br />

succeed in managing public services, all staff members should be responsible for various types<br />

of knowledge management which exist in their organizations (Rooney and Hearn, 2002, 26).<br />

Another study on knowledge management in the governmental organizations investigates how to<br />

develop knowledge management and also how to determine the nature of the culture of<br />

knowledge sharing in an organization. The results of the study suggest that sharing knowledge in<br />

governmental organizations is a unique and very important challenge and government<br />

organizations are typically hierarchal or bureaucratic and that precludes the smooth sharing of<br />

knowledge. The authors state that most people are disinclined to share their knowledge with<br />

others. They keep their knowledge to themselves so as to get a promotion by virtue of the power<br />

of their knowledge (Lee and Choi, 2003, 260).<br />

The results from another study on knowledge management in governmental organizations in the<br />

Carlton University in Canada showed that initiatives that are undertaken with relation to<br />

knowledge management in governmental organizations are profoundly political and have a great<br />

effect on the agents in the public sector and the group of clients in the public sector (Schein,<br />

1988, 51).<br />

COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 211

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