THE INTERPLAY BETWEEN KNOWLEDGE TRANSFER COMPONENTS AND PHASES IN SMALL AND MEDIUM-SCALE ENTERPRISES: A DEVELOPING NATIONS PERSPECTIVE

INTRODUCTION In recent times, great attention has been given to the role SMEs play in relation to the economic development of a nation. The general consensus is that their role is strategic (Hill, 2001), and hence the myriad of policies, seminars, white papers, agencies, and government bodies created to address issue(s) pertinent to them. While there may seem to be a bias or undue attention towards them, the real business environment has no favorites. The dynamism existent within a given domain has the same potential effect on all entities within it irrespective of business type. At the core of survival or growth, irrespective of environmental dynamics, knowledge is fundamental (Ichijo and Nonaka, 2007; Prusak and Matson, 2006; Zheng et al., 2010). An organization must ensure that it acquires and effectively manages its knowledge resources (Probst et al., 2000; Prusak and Matson, 2006; Sumita, 2008), renewing or reconfiguring them to ensure fit with present realities (Boccardelli and Magnusson, 2006; Raisch et al., 2009; Teece et al., 1997). This could be done outside or inside its boundary (Lichtenthaler and Lichtenthaler, 2009) or outside or inside a given unit and it therefore needs to develop the ability to effectively and efficiently transfer knowledge in a timely manner, from a given point (or entity) to another where it is needed (Argote and Ingram, 2000; Bae and Koo, 2008). Considering the components involved in knowledge transfer, (hereafter referred to as KT), potential bottlenecks may arise. A typical KT process would involve the knowledge to be transferred, the source and the recipients of the knowledge, the context from which it is coming from and that to which it is going to and the medium/channel that connects the process (Argote and Ingram, 2000; Spraggon and Bodolica, 2012). The success of any KT process is however contingent to any of the characteristics of these components (Brookes, 2014) and more importantly the interplay between them and the perceived outcome at each stage of the process (Szulanski, 2000). The extant literature that identifies the implication of the intrinsic attributes of the individual components of KT on the transfer process did so without considering the potential effect of their interrelationship. They also failed in helping to understand the role that the outcome of each phase of the KT process plays in changing the direction of the flow of the process (Szulanski et al., 2004), in bringing it to a halt or in informing decisions as regards when to proceed or terminate a phase (Figure 1). The likelihood of the identified gaps were slightly hinted on in Argote and Ingrams (2000, pg 152) work on knowledge repositories when in explaining the dual role repositories play, they said they are changed when knowledge transfer occurs on one

hand, and their current state affects the processes and outcomes of knowledge transfer on the other. The majority of the studies in the field likewise were carried out from a developed nation context. When a developing nation context is used, it is mostly an Asian perspective (majorly China). While there may be similarities across cultures or context in developing nations, there still exist potential differences with strategic implication on KT assumptions. As regards to Africa, the continent of focus for this study, the knowledge-related challenges that firms in the continent face would include brain-drain, infrastructure inadequacies, low regards for intellectual property rights, corruption, poor educational facilities and falling education standards among others. Following that knowledge is argued to be context dependent or a social contextual construction (Paulin and Suneson, 2012), the implication of these factors on the KT process would be expected to vary significantly from that experienced in China. As such, to improve the existent literature on knowledge transfer, it is imperative to look into the African perspective to identify areas of similarity and differences in regards to KT challenges so as to be able to ascertain the universality of the application of present research findings. Also, by looking into the peculiarities of the interrelationship among constituent parts of the process under prevailing conditions, there is the possibility of capturing entrepreneurial actions taken by firms operating in the domain in their bid to ensure successful KT and which individual attribute or combination would most likely determine the success of the KT process under given conditions. A perfect understanding of the interconnections and the nature of their complexities is the only by which firms can anticipate to further develop their capabilities (Easterby-Smith et al., 2008). Adopting a Critical Realist tradition, this study endeavors to examine KT opportunities and processes in relation to SMEs to identify the underlying mechanisms that inhibit or enable the success of the process, with a view of determining which one(s) is/are significant or prevalent in the African context. The study intends to see how the firms take advantage of the KT opportunities within their reach, how they manage and balance internal and external KT, and how it explains their growth path or present state. While contributing to literature in the field, the findings from this research hopes to also be able to help inform policy drafting and strategic actions needed to ensure that the sustainability and economic benefit of SMEs to the growth of the region is realized. The study therefore tries to answer the following questions; 1. What are the factors that make firms take advantage of (or ignore) opportunities for KT? (Motivation) 2. How do they undergo KT? - Internal KT challenges (Push) and External KT challenges (Pull). (Process) 3. What role has KT played in the development and make-up of the firm? (Effect)

4. Which interactions between KT constituent components are existent and most prevalent? 5. How do they progress across each process phase and determine when to stop the process? All this would be looked at in relation to how the firms undergo value exploration, value creation and value delivery.

LITERATURE REVIEW Knowledge has been termed as a unique source of competitive advantage for a firm and the ability for a firm to transfer it represents yet a distinct source of competitive advantage [for it] over other institutional arrangements such as markets (Reagans and McEvily, 2003, pg 240; word in parenthesis added). Since SMEs inherent liabilities such as size and financial constraints impacts their potential for strategic market control (Thorpe et al., 2005), it is imperative that they thrive well in transferring knowledge from outside and within the firm. However, irrespective of promised benefit, transferring knowledge comes with its own difficulty (Argote et al., 2000; Easterby-Smith et al., 2008; Szulanski, 1996). This difficulty hinges on the cost implication of the process which results from the role played by each individual component that makes up the KT process. The cost of transferring knowledge, simply known as transfer cost (Bae and Koo, 2008) is of great concern to SMEs due to the liabilities peculiar to them in comparison to larger firms. These liabilities would moderate the nature or degree to which KT would be possible due to the anticipated potential benefit in relation to the transfer cost which directly affects the motivation to pursue a particular route or mechanism. SMEs liability of smallness and newness results in financial and human resource constraints, limited market power and customer base, trust issues arising from limited trading history, dominance of owner(s) in strategic decisions, lack of established routines, among others (Kraus et al., 2010). These liabilities whose impact may vary across regions or industry make SMEs more prone to survival (Levy et al., 2001) particularly at inception than to growth. Subsequently, they determine the necessity or attractiveness of any given KT opportunity and route to the firm. Whatever the KT route embarked upon and its proven potential benefit, firms, irrespective of size are still faced with the problems which mitigate against their efforts to either start the process, maintain it, complete it or successfully apply the proceeds of the process to realize the potential benefits of the process. Several factors along this chain have been identified and researched. This has been examined from single level or from a multi-level perspective (Zhao and Anand, 2009), intra-firm or inter-firm (Tsai, 2001, Letmathe et al., 2012; Spraggon and Bodolica, 2012), among others.

Considering that an organization is not immune to forces inherent in any of the identified factors, the effectiveness of a KT process is not dependent on the eradication of the inhibiting forces in a single factor alone (Prez-Nordtvedt et al., 2008). Following that certain structures in the real world could be enduring than others (Norrie, 2010), that is, a particular pattern of event may exist relatively longer than another, the most probable combination, interplay and resultant influence of the identified factors on KT within a given domain per time may differ. There may also be differences across regions though that doesnt imply that elements in a given region differ from that in another. What it simply implies is that certain factors may be prone to go unconstrained in one domain while suppressed in another due to differences in contextual peculiarities, thus heterogeneity of effects is observed (Jashapara, 2004; Sayer, 1998). For every KT process, individual characteristics of five major components, that is, the knowledge, source, recipient, channel and context needs to be considered (Minbaeva, 2007; Spraggon and Bodolica, 2012; Szulanski, 1996, 2000). For example, if the knowledges merit cant be ascertained by the recipient, s/he would not be willing to acquire such knowledge (Kane, 2010). If the merits are acknowledged, the source may be unwilling to release what s/he knows (Heliot and Riley, 2010; Reagans and McEvily, 2003; Watson and Hewett, 2006). If s/he does, the channels for transfer present in the environment of both parties may hinder the recipient from accessing the knowledge (Minbaeva, 2007). If the knowledge gets through to the recipient, s/he may not have the cognitive capacity to effectively assimilate and apply the knowledge (Letmathe et al., 2012), consequently constraining the final lap of the process. An initial evaluation of the perceived total cost in relation to the perceived benefit of the outcome may altogether hinder the initiation of the process (Bae and Koo, 2008). In real life practice, the above description is a simplistic simulation of what obtains. Hypothetically, and from the perspective of a practitioner, one begins to ponder on the question that if equal numbers of constraining and enabling characteristics exist, how can the KT process outcome be predetermined? This is a strategic question that managers need to be able to think through with little error tolerance as they try to apportion resources and choose a route to KT in the face of competing options, resource constraint and bounded rationality (Szulanski, 1996). Therefore, though the independent effect of the various components is of importance, the resultant effect of their context-dependent interaction is of greater significance (Minbaeva, 2007). There would be no knowledge transfer without knowledge at first. One can then state that knowledge itself and its characteristics are extremely vital in the KT process. In exemplifying knowledges significance, Kane (2010), Kang et al. (2010), among other authors have conducted research work that showed that knowledge characteristics had a significant impact (negative) on KT. This impact is however short-lived until other factors are factored in (Minbaeva, 2007). Since knowledge is generated, transferred and received by social beings, they determine to a large extent the outcome of any KT. Minbaeva (2007) in his work on multinational companies

discovered that characteristics of recipient (prior knowledge and intensity of effort) amidst other factors had the strongest effect, followed by that of the channel (relationship between both parties) and then that of the source. This sequence or superiority of recipients characteristics was however not corroborated by Mu et al. (2010) whose study on intra-organization KT showed that characteristics of both the first and last component in Minbaevas arrangement (absorptive capacity and disseminative capacity respectively) were of equal significance. In a scenario which seem almost totally awkward or unexpected from rational beings, though a caution against a rather simplistic deduction that when knowledge characteristics are positive and social beings involved have the necessary knowledge-related capacities, KT would occur unhindered, it showed contrariwise. Recipients were reported to reject acknowledging knowledge with obvious performance merits from a source on the grounds that the channel (relationship) was plagued with lack of shared social identity (Kane et al., 2005). This implies that knowledge from a source that is further away may successfully be transferred than that from a source very close by if the shared social identity, termed as superordinate social identity by Kane et al. is lacking. While that seems to be in tandem with the literature on valuing internal and external knowledge by Menon and Pfeffer (2003), which claims that knowledge external to a recipient firm seems to be revered as having more value than that within it, it however proves that the benefit of a shorter distance between source and recipient as reflected in reduced transfer effort (Kang et al., 2010) may be constrained and not realized even though present in a KT process. A probable alternative to address the problem of bias in relation to human knowledge sources to avoid the scenario stated earlier above would be to codify knowledge such that the source is unknown and consequently any potential bias orientated towards him from the recipient is removed (Argote and Ingram, 2000). Codification has been prescribed even as an option for firms to leverage existent knowledge (Jasimuddin, 2007) particularly with the hegemonic presence of ICTs which have been acknowledged to permit quick and easy access to knowledge and discouraging the need for spatial proximity (Gray, 2006). The challenge with codification of knowledge, however, when context idiosyncrasies are factored in, using the context of the intended study is the presence of a multiplicity of language. It should first be stated that irrespective of type of knowledge (tacit or explicit), language is the fundamental medium of symbolizing knowledge. Consequently, for knowledge to be meaningful, the language in which it is embodied must be shared and make sense to both parties involved (Welch and Welch, 2008). In the African context, as this study intends to explore, the history of colonialism holds the baggage of language of the colonial masters. The colonial masters language is adopted as the national language due to the amalgamation of different tribes into a single nation. However, level of education determines to a large extent an individuals ability to read and comprehend text written in the language. As is the norm in most nations, the higher the education level, the

higher the wage of such worker. Unfortunately, SMEs financial constraint exposes them to the use of cheaper labour. This option translates to workers with little or no education and depending on the location within the country, a heterogeneity of languages is inevitable. The little or no education means there is difficulty in comprehending knowledge codified in the national language and consequently no single common language. So, in cases where which all other factors are put in place, and codifying knowledge is agreed to be the best or the only way of transferring available knowledge, the language peculiarity of the context makes such option ineffective or impossible. It should be bore in mind that SMEs inherent liabilities are not always of negative consequence to the firm, sometimes they constitute a source of competitive advantage for them (Hill, 2005). Aside the flexibility and responsiveness that their size limitations permit (Gray, 2006), in regards to knowledge, it also means little effort is needed in developing an effective transactive memory system, that is a system where which who knows what or has what or needs what can be quickly identified and accessed (Su et al., 2010) thus reducing the time and effort needed to begin a KT process. Size thus reduces the cost of search and access to potential knowledge sources. In conclusion, putting together the reflections from the literature on KT as they affect SMEs, the evident contradictions in the findings of respective studies that plague the domain makes it difficult for managers or practitioners to make meaningful use of them. Having said that, the contradictions does not necessarily invalidate the legitimacy of the varied research findings. It only calls for an integrative perspective, a synergistic work that takes into account the significance, under certain given contextual peculiarities, of the interplay of the characteristics of the individual components of the KT process and their outcome implications. Figure 1 below gives an overview of the conceptual framework intended for this research study.

Methodology This research study would adopt a mixed method approach due to the anticipated complexity of the KT construct using quantitative (structured questionnaire) and qualitative tools (semistructured interview) (Bryman and Bell, 2007). The choice of the approach hinges on the

realization that paradigm lenses have set limits inevitably imposed on them by their major underpinnings which constrain their reach in terms of what they can discover or acknowledge to be reality (Dobson, 2001). The myriad of elements at work at different levels in an organization thus makes it difficult for a single paradigmatic approach to provide an adequate overview that effectively captures the workings of complex phenomena like KT in an organization as this study intends to look into (Astley and Van de Ven, 1983; Deshpande, 1983; Gioia and Pitre, 1990). Space constraints would not permit going into the details of the perceived complexities of KT. However, the aspects of it that are characterized by regularity would be captured using quantitative methods (Fleetwood and Ackroyd, 2004) while aspects that vary due to contextual differences would be captured with the use of qualitative methods. The quantitative methods would permit comparison across sample to examine and identify the frequency of occurrence, associations or patterns in regards to relevant aspects of the KT construct while the qualitative methods greater flexibility would be used for unraveling and gaining deeper understanding of any event or occurrence that may either be complex, unanticipated or completely new (McEvoy and Richards, 2006). The adoption of the research methods used reflects the positivist and interpretivist stance of the study. The intention to undergo this study hinges on the acceptance that reality exists and access can be made into it. Unlike the social constructionist stance that rebuffs any attempt to classify anything as objective reality, this study employs a Critical Realist (CR) position which accommodates the existence of both an objective and a subjective reality. In relation to KT, CR acknowledges that the experience of actors in regards to the phenomena irrespective of how they arrive at the conclusions they cite in delineating it does not disprove it as an objective reality but rather only points to its influence and existence in the real world (Norrie, 2010). This simply put means that reality precedes and exists independently of actors perception or interpretation of it (Easton, 2002) although that does not mean it is immune from changes which may result from contextual elements or the actions of social beings (Archer, 2003; Norrie, 2010). Accepting these

facts puts CR in a better position than its most compared counterpart, the social constructionism, to be used for this research work (Alvesson and Skoldberg, 2010; Peters et al., 2013). The mere thought of undertaking a study into an organizational phenomenon implicitly reflects the recognition that out there lies a reality that can be discovered (Hales, 2007). Therefore, KT implications and challenges in an organization irrespective of intensity or lifespan are accepted to be realities that exist. How long their observed form endure varies from organization to organization, though as CR argues, all elements that underlay them are present and the same across all organizations, the difference then being that some of the elements may exist in their absent form in others (Norrie, 2010). However, concluding from Norries explanation of Roy Bhaskars new critical realism disposition, whether in the present, visible form or in the absent form, whichever form obtains has causal implications in regards to how KT would be carried out in an organization. Considering the dynamics of an organization, one can expect that the reality of KT within it is open to a variety of interpretations. This is dependent on who across management levels is consulted, the type of knowledge one is addressing, what KT measurement indicator is used or what time period in the lifecycle of a firm is the focus or is the research carried out (Kostova, 1999; Paulin and Suneson, 2012). These various pathways to the KT phenomenon would produce outcomes which can be regarded as objective and those that can be regarded as subjective. The human aspects of the phenomenon would likewise be more skewed to the subjective continuum than the technical aspects like the technology utilised, instructional guidelines, among others which could be regarded as residing in the objective circle. Hence, as highlighted earlier, the positivist position would be used to capture the objective elements and the interpretivist position would be used to capture the subjective aspect. For the former

position, a questionnaire instrument with structured questions, a five-point likert scale for quick and easy comparison using statistical analysis and tool and constructs commonly used by authors within the field would be used while the latter would involve the use of a semi-structured interview. One should bear in mind however that using the two adopted research paradigms in their purest forms would absolutely be impossible as the use of CR as the metatheory for the study with its own fundamental ontological underpinnings would conflict with certain truths claimed by such forms. This thus leads to embracing Carpendale and Mullers (2004) prescription, where which

CR would thus be used as the metatheory for ascertaining and categorizing the research findings from both paradigm lenses into what is meaningful, meaningless, acceptable or not and that which can be regarded as vital or tangential to the intended study. Findings from the instruments employed would be analyzed using SPSS and Nvivo for the quantitative and qualitative data respectively. Due to difficulty in obtaining an all-inclusive database of potential respondents and cost implication of their dispersal across the intended national context, a non-probability sampling method would be adopted for this work. This method permits an appropriate level of latitude in deciding which respondent to include or not (Parasuraman et al., 2004).

ETHICAL CONSIDERATIONS This research study carries potential ethical dilemma innate to every phase in the research continuum which may not be completely envisaged prior to the commencement of the study (Guillemin and Gillam, 2004). Dealing with social beings and considering the relevance and importance of their cooperation, the research study would endeavour to ensure that all pertinent issues such as informed consent, confidentiality, anonymity, right to withdraw at whatever point in the research process and avoidance of harm in whatsoever form are explicitly and appropriately addressed. The structured questionnaire would have printed on it the intention of the study as declaring this on a one-on-one basis due to the intended large sample size in comparison to the qualitative method is seen as both impossible and ineffective due to time constraints. A feminist disposition that emphasizes care and frowns at power domination and marginalization would be taken. The research participants would be seen as equals and thus the research study takes the position that it involves two knowing-subjects as Gunzenhauser (2006) stresses. This understanding makes it imperative to ensure that the research participants can likewise benefit from the process (Peled and Leichtentritt, 2002). Therefore, a summary of research findings written in a format that would be useful for practitioners would be communicated to be made available to participants who request for results from the research. The Universitys Code of Ethics would be adhered to, however, as advocates of ethics in practice, ecological, situational or relational ethics emphasize, this would be to the extent that it effectively addresses contextual nuances (Ellis, 2007; Robertson et al., 2002; Stutchbury and Fox, 2009). Under scenarios with emerging ethical dilemmas that the guideline does not provide practical steps in addressing, such issues would be addressed through reflexivity on the part of the researcher (Guillemin and Gillam, 2004). By virtue of the inevitability of crossing national borders, all efforts would be made to ensure that no form of imposition of rules obtainable in one region is engaged in on people in another, particularly when they obviously conflict. Failure to avoid this is regarded as a form of imposing harm on others or a form of colonization (Christians, 2007: Sikes and Piper, 2010) and thus would negatively affect the ethicality of the study.

PLAN OF WORK Due to space constraints, a Gantt chart indicating necessary milestones for the proposed research work is presented below.