Professional Documents
Culture Documents
Abstract
Purpose – The main purpose of this paper is to investigate the effects of knowledge management (KM)
infrastructure and KM processes on the performance of KM practices.
Design/methodology/approach – The paper is based on personal interviews, data were collected
from 83 managers from a single case study of a Global System for Mobile Communications (GSM)
operator in Turkey.
Findings – The paper finds that hypotheses were tested using structural equation modeling. Test of
hypotheses revealed that both KM processes and KM infrastructure positively and significantly
influenced the performance of KM practices. These findings tend to corroborate our conceptual model
and are also in line with the existing literature. KM infrastructure was found to be more significantly
affecting KM performance than KM processes, indicating that the context and background of KM is
more important than the application aspects of KM.
Research limitations/implications – The findings in this paper cannot be generalized due to the case
Halil Zaim is based at Fatih study approach. It may not be claimed that both KM processes and KM infrastructure solely determine
University, Faculty of the performance of KM practices. Instead, there are many other factors that may influence KM
Economics and performance, which are somewhat beyond the scope of this research.
Administrative Sciences, Practical implications – The paper shows that the evaluation of KM performance is expected to
Buyukcekmece, Istanbul, increase the effectiveness, efficiency and adaptability of KM efforts so as to add more value to the
Turkey, Ekrem Tatoglu is overall performance of the organization.
based at Bahcesehir Originality/value – In this paper there is little or no empirical evidence investigating the influence of KM
University, Faculty of infrastructure and KM processes on KM performance. This paper rectifies this imbalance by clarifying
Business Administration, the link between KM infrastructure, processes and performance.
Besiktas, Istanbul, Turkey, Keywords Knowledge management, Intellectual capital, Turkey
and Selim Zaim is also Paper type Research paper
based at Fatih University,
Faculty of Economics and
Administrative Sciences, Introduction
Buyukcekmece, Istanbul,
Turkey. Knowledge and intellectual capital (IC) are considered as organizations’ primary sources of
production and value, while tangible assets such as land, machinery and equipment are
rarely their most valuable competitive assets (Nonaka and Takeuchi, 1995; Davenport and
Prusak, 1998). Knowledge management (KM) has recently emerged as a discrete area in
the study of organizations and frequently cited as an antecedent of organizational
performance. With successful implementation of KM practices that organizations are able to
perform intelligently to sustain their competitive advantage by developing their knowledge
assets (Wiig, 1999).
There is a wide range of studies on the process-related issues such as creation,
development, codification, storage, distribution, sharing and utilization of knowledge. A
great deal of research attention has been given to the efforts for developing a
comprehensive model of KM in recent years. There exist, however, relatively rare
empirical evidences investigating the influences of KM infrastructure and KM processes on
PAGE 54 j JOURNAL OF KNOWLEDGE MANAGEMENT j VOL. 11 NO. 6 2007, pp. 54-67, Q Emerald Group Publishing Limited, ISSN 1367-3270 DOI 10.1108/13673270710832163
KM performance. Relying on a case study, this paper attempts to rectify this imbalance by
clarifying the link between KM infrastructure, processes and performance.
The paper is organized into five sections. The next section provides a brief review of the
relevant literature and sets out the research model. The third section presents the
methodology followed by the analyses and results. Conclusions are in the final section.
Literature review
The area of knowledge management is still in its early stages in terms of developing its
theoretical base with contemporary KM approaches representing largely extensions of
either organizational learning or business information systems. It has been widely accepted
among scholars and practitioners that KM infrastructure and processes have considerable
influences on the performance of KM practices. There is a rich array of research on the
technological, cultural and organizational issues, which can be considered as the
components of KM infrastructure. IC has also a unique place in the KM literature where it can
be viewed as the most valuable competitive asset in contemporary business world (Wang
and Chang, 2005).
While the existing literature defines KM in a number of ways (see, for example, Wiig, 1997;
Cortada and Woods, 2000; Scarbrough et al., 1999; Malhotra, 2000a; Darroch, 2005), the
focus of KM is on the integration and coordination of individuals’ knowledge, i.e. the
appropriate management of current organizational knowledge and the creation of
knowledge (Diakoulakis et al., 2004). The following subsections briefly review the previous
literature on the related issues including KM infrastructure, KM processes and KM
performance.
KM Infrastructure
Knowledge management infrastructure is considered as the backbone of KM (Davenport
and Völpel, 2001). Almost every successful organization that applies KM realizes the need
and importance of an explicit and supportive infrastructure to assist KM practices (O’Dell
and Grayson, 1998). Hence, it is acknowledged that the efficient and effective application of
KM requires a strong and appropriate KM infrastructure (Tiwana, 2000), which is composed
of four components: technology, organizational culture, organizational structure and
intellectual capital.
Apparently, KM is more than a technological toolkit, though technology is clearly an
integrated part of KM (Thierauf, 1999) and availability of certain technologies plays an
instrumental role in catalyzing the KM movement (Davenport and Prusak, 1998). Indeed the
phenomenal growth of new technologies makes it easier to implement KM systems (Binney,
2001). Accordingly, the technological issues are cited as one of the most exciting and
promising aspects of KM projects (Gottschalk and Khandelwal, 2003; Reyes and
Raisinghani, 2002).
KM practices take advantage of a large spectrum of technologies (Lindvall et al., 2003).
Nevertheless KM technologies in general can be classified into two main categories, namely
‘‘the core technologies’’ and ‘‘the supporting technologies’’. The core technologies are the
ones, which are specifically designed and developed for sophisticated KM requirements,
whereas the supporting technologies are those, which are not specifically designed for KM
but are useful for KM implementations.
One of the most important and challenging aspects of KM is to enhance the development of
a collaborative, trustworthy, emphatic and helpful organizational culture. The executives and
scholars agree on the importance of a knowledge-friendly culture for the success of KM
(Hauschild et al., 2002; Skyrme, 1999). It is because knowledge is a context-dependent
social concept (Lang, 2001) and a large part of organizational knowledge is embodied in
social processes, institutional practices, traditions and values (Fayard, 2003; Boisot, 1998).
Therefore, no matter how powerful the tools and functions of KM are, it is of no use without
willing participants and a supportive social and cultural environment (Koulopoulos and
Frappaolo, 1999).
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VOL. 11 NO. 6 2007 JOURNAL OF KNOWLEDGE MANAGEMENT PAGE 55
While the cultural resistance is generally cited as one of the most important barriers to an
effective implementation of KM (Sveiby and Simons, 2002), it is still contemplated as the
neglected or underestimated side of KM applications. Therefore, it is strictly recommended
for organizations to place a special emphasis on the social and cultural issues for the
successful implementation of KM practices (Bhatt, 2001).
The dimensions discussed in this paper pose some specific organizational design
challenges if knowledge is to be managed effectively (Narasimha, 2001). The appropriate
organizational structures and guidelines as well as technical and non-technical expedients
of which the organization has disposal constitute another building blocks of KM
infrastructure (Beijerse, 1999). Nonetheless, there is no single appropriate organizational
structure for KM. Some scholars suggest a radical re-design for KM (Malhotra, 2000b), while
others think that it is not necessary. However, instead of highly centralized, control-based
and rigid hierarchies, more flexible, decentralized and trust-based organizational structures
with empowered workers are highly recommended in the KM literature (Maier and Hadrich,
2006; Malhotra, 2005).
Finally, the KM literature clearly exposes that knowledge resources have been increasingly
seen as an integral part of organizations’ value creating processes. In a similar vein,
companies have become aware of the importance of IC of their own (Guthrie et al., 2003). IC
can be defined as ‘the sum of all the intellectual material of a company’’ – knowledge,
information, intellectual property including trademarks, patents and licenses, experience
and integrity, personnel competencies, collective brainpower, etc. – that is captured and
leveraged to create value and that can be converted to wealth and profit (Stewart, 2001;
Harrison and Sullivan, 2000; Bontis et al., 2000). Though there are a variety of different
components that constitute IC, an increasingly popular classification divides intellectual
assets into three categories: human capital, structural capital and customer capital (Skyrme,
2002).
KM process
In our conceptual framework, KM is composed of four main processes, which are namely:
knowledge generation and development; knowledge codification and storage; knowledge
transfer and sharing; and knowledge utilization.
The ability to generate knowledge and diffuse it throughout the organization has been
recognized as a major strategic capability for gaining sustainable competitive advantage
(Roth, 2003; Beveren, 2002). Thus, knowledge generation that is considered as the major
focus of KM includes all the activities that aim to originate novel and useful ideas and
solutions by which new knowledge is generated for the organization’s benefit (Abou-Seid,
2002). It can be defined as the process of conscious and intentional generation of
knowledge under specific activities and initiatives firms undertake to increase their stock of
corporate knowledge (Davenport and Prusak, 1998).
Knowledge development, on the other hand, is the process of either converting the
innovative and creative ideas into actions, goods and services or the development of goods
and services for a higher customer value (Shani et al., 2003).
Knowledge is meaningful when it is codified, classified, given a shape, put in a useful format
and stored. Only then, it can be used by the right person, at the right time, in the right way
(Nemati and Barko, 2002). That is why one of the core processes of KM is the codification of
knowledge according to the type, purpose of knowledge – in favor of the organizational
objectives and priorities – and storage of knowledge for the access of the employees at
present and in the future (Davenport and Prusak, 1998). However, it is also vital to remember
that organizational knowledge is dispersed and scattered throughout the organization. It is
found in different locations, in people’s mind, in organizational processes, in corporate
culture; embedded into different artifacts and procedures and stored into different mediums
such as print, disks and optical media (Bhatt, 2001). Therefore capturing, codifying and
storing of knowledge are suggested as the most challenging aspects of KM.
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‘‘ One of the most important and challenging aspects of KM is to
enhance the development of collaborative, trustworthy,
emphatic and help organizational culture. ’’
Transfer of knowledge and benefits of sharing it effectively within the organization have been
given a great deal of attention among the scholars and practitioners (Kwok and Gao, 2004).
Therefore, one of the most important objectives of KM is to bring together intellectual
resources and make them available across organizational boundaries (Robertson, 2002). It
has been argued that only those organizations that methodically, passionately and
proactively find out how to organize generation of new knowledge and transfer of existing
knowledge in the organization will not only survive but also excel (O’Dell and Grayson, 1998).
One of the most important objectives of KM is to create value from organization’s knowledge
resources so that the knowledge held by the company will be transformed to fields of
application and action (Ordaz et al., 2004). Thus, KM activities should lead to changes in
behavior, changes in practices and policies and the development of new ideas, processes,
practices and policies (Bender and Fish, 2000). This implies the effective and efficient use of
knowledge for the organization’s competitive edge. For that reason, it has been argued that
the success of KM activities mostly depends on how efficient and effective the knowledge
has been used and the level of action based on it (Wilhelmij and Schmidt, 2000).
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VOL. 11 NO. 6 2007 JOURNAL OF KNOWLEDGE MANAGEMENT PAGE 57
determining the gap between the desired and actual performance (Carpenter and Rudge,
2003). At this stage the management decides what has to be done for the future.
KM performance can be evaluated at three different levels, which involve strategic level,
functional/operational level and employee/performer level. KM performance evaluation at
the strategic level seeks to measure the contribution of KM solutions to overall performance
and also involves gauging the results from a top management point of view according to the
mission and the strategic objectives of the organization (del-Rey-Chamorro et al., 2003). In
contrast, KM performance evaluation at functional or operational level aims to assess the
contribution of KM applications on functional departments, working groups, operational
processes and daily routines (del-Rey-Chamorro et al., 2003).
The evaluation at the performer level focuses on assessing the contribution of KM
applications on employees’ decisions, actions and behaviors. In fact, KM performance
depends heavily on the workers’ performance and improving the knowledge worker’s
performance constitutes one of the main objectives of KM applications. There is already a
substantial body of research on the evaluation of the knowledge workers’ performance; the
models and criteria of this evaluation; and the role of human resource management on this
issue (Gooijer, 2000; Hislop, 2003).
Based on the discussion of the above constructs, we propose a conceptual model of KM,
which is composed of two main dimensions: the KM infrastructure and the KM processes.
As noted earlier, each underlying dimension of KM is in turn explained by four
sub-dimensions. We suggest that these factors have direct and indirect effects on the
performance of KM practices and are also likely to determine to a great extent the success
or the failure of KM applications. Another important point is that the elements of both KM
infrastructure and KM processes are all interrelated so it is not easy to visualize the effects
of these factors on KM performance as independent from each other. The research model
adopted in this study is shown in Figure 1. The following two hypotheses are then proposed
to more formally state the underlying impact of KM infrastructure and KM processes on the
performance of KM practices.
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PAGE 58 JOURNAL OF KNOWLEDGE MANAGEMENT VOL. 11 NO. 6 2007
H1. Knowledge management process directly and positively affects performance of
knowledge management practices.
H2. Knowledge management infrastructure directly and positively affects performance
of knowledge management practices.
Research methodology
Survey setting
A case study method was used to collect the required data on the underlying dimensions of
the research model. The GSM industry was chosen as an ideal research setting in Turkey.
The main rationale for selecting GSM industry is that the GSM operators are relatively large
and they require the existence of some processes to facilitate knowledge management and
are also heavily involved in KM applications. There are at present three GSM operators in
Turkey. All three companies with some experience in KM applications were initially
contacted. Of these companies, AVEA was identified to be the most successful and
experienced in KM practices as well as being the most cooperative in securing the required
data.
AVEA (TT&TIM Iletisim Hizmetleri A.S) is Turkey’s fast growing mobile communications
company and was officially formed in 2004 with the merger of Turk Telekom’s GSM operator
Aycell with Aria (Is-TIM), joint venture of Is Bank (51 per cent) and Telecom Italia and Mobile
(TIM) (49 per cent). The merger of Aycell and Aria gave birth to a new and strong entity that
contributes to the development of the Turkish telecommunications sector. The integration of
the experience and the know-how of the two companies created operational and financial
strength. Being the youngest, dynamic and the alternative operator, AVEA has triggered the
competition in the Turkish GSM sector.
With approximately 7 million customers AVEA represents 17 per cent of the total GSM
subscriptions in Turkey. In a relatively short span of time it reached 315 international roaming
partners in 150 countries and 102 GPRS roaming partners in 64 countries. Having 6,610
base stations scattered throughout the country and employing more than 1200 personnel
AVEA keeps on its investments. Cuneyt Turkkan, the CEO of AVEA states that their
investment plan for 2006 is not going to be less than 300 million dollars (AVEA, 2006).
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VOL. 11 NO. 6 2007 JOURNAL OF KNOWLEDGE MANAGEMENT PAGE 59
identified to be the most knowledgeable in KM applications and have some capacity to
comment on the flow of knowledge within the organization.
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Table II EFA of the KM infrastructure
Factors
Variables CUL TECH ORG IC
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Structural equation modeling
In order to avoid the multi-collinearity and measurement errors, while addressing the
cause-effect relationships among the research constructs, we utilized partial least squares
(PLS) method, which is a variance-based structural equation modeling approach. The PLS
procedure, developed by Wold (1985), uses two stage estimation algorithms to obtain
weights, loadings and path estimates. In the first stage, an iterative scheme of simple and/or
multiple regressions contingent on the particular model was performed until a solution
converges on a set of weights used for estimating the latent variables scores. The second
stage involves the non-iterative application of PLS regression for obtaining loadings, path
coefficients, mean scores and location parameters for the latent and manifest variables. For
calculating the PLS procedure Spad Decisia V56 statistical data analysis software was
employed (Fornell and Cha, 1994; Tenenhaus et al., 2005).
h1 ¼ 0:1565 þ 0:2573 j1
þ 0:6080j2 þ z1 0.68 1.9479 (for j1 ) 4.6024 (for j2 ) 0.05 (for j1 ) 0.000 (for j2 ) 0.2834 (for j1 ) 0.6344 (for j2 )
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results for bootstrapping were provided in the last column of Table V. The bootstrap
estimated coefficients of inner model are very close to those estimated by PLS.
Figure 2 presents the results of the structural model related to both hypotheses. The model
has one endogenous variable (dependent variable), which is labeled as KM performance
and two exogenous variables (independent variables), which are labeled as KM process
and KM infrastructure. This model evaluates the impact of KM process and KM infrastructure
on KM performance. Based on the test results of the overall model, KM process and KM
infrastructure explain approximately 68 percent of the variation in KM performance.
Of the KM process factors, knowledge transfer and sharing was found to be the most
important criterion with the value of its standardized regression weight being 0.45 (p , 0:01)
followed by knowledge generation that has also a significant effect (b ¼ 0:42; p , 0:01) on
KM process. In contrast, knowledge utilization (b ¼ 0:28; p , 0:05) and knowledge
codification and storage (b ¼ 0:21; p , 0:05) have comparatively less impact on KM
process. This finding is not particularly surprising in that KM studies and applications have
been primarily focused on knowledge generation and sharing rather than knowledge
codification and utilization. However, it should be recognized that the factors comprising the
KM process are interrelated. That is, in order to improve KM process the constituent factors
should be considered as a whole.
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Test of H1 indicated that KM process had a positive impact on KM performance. The
standardized regression weight for KM process was found to be significant (p , 0:05),
which tends to support H1 that KM process has a positive and moderate direct effect on KM
performance.
A good deal of support has been found for H2 that KM infrastructure had a positive and
significant impact on KM performance (b ¼ 0:608; p , 0:01), indicating that KM
infrastructure has a direct and strong impact on KM performance.
Conclusion
Despite lack of confirming empirical evidence, it has been widely accepted in the KM
literature that KM processes and infrastructure have significant influences on the
performance of KM applications. This study aims to rectify this imbalance by investigating
the relationship among KM infrastructure, processes and performance.
Exploratory factor analysis was employed to identify the underlying dimensions of KM
processes and KM infrastructure. EFA yielded four distinct and non-overlapping factors of
KM process, which explained 84.4 per cent of the observed variance in the sample data.
Similarly, EFA produced four non-overlapping factors of KM infrastructure, which explained
almost 81 per cent of the observed variance.
Test of hypotheses H1 and H2 revealed that both KM processes and KM infrastructure
positively and significantly influenced the performance of KM practices. These findings tend
to corroborate our conceptual model and are also in line with the existing literature.
Somewhat surprisingly, KM infrastructure was found to be more significantly affecting KM
performance than KM processes, which indicates that the context and background of KM is
more important than the application aspects of KM.
The study, however, is subject to some limitations. While the findings of this study confirm the
direct and positive relationships among KM processes, infrastructure and performance,
they cannot be generalized to the whole population of GSM companies in Turkey due to the
case study approach. The sensitive nature of the subject and the availability of personal
connections, however, have made the selection of case study methodology mandatory over
other large-scale quantitative surveys. Another limitation is that while there is a general
assent on the likely impacts of KM infrastructure and KM processes on KM performance in
the extant literature, it may not be claimed that these two factors solely determine the
performance of KM practices. Instead, there are several other factors that may influence KM
performance, which is beyond the scope of this research. Also, future research is called for
to firmly establish a link between the KM performance and the firm performance.
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Chua, A. (2002), ‘‘The influence of social interaction on knowledge creation’’, Journal of Intellectual
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