Chapter 5

Factors Influencing
Knowledge Management
Chapter Objectives
„ Examine why KM solutions might have
different impacts on performance,
depending on the circumstances
„ Recognize some of the factors affecting
the suitability of alternative KM
solutions, and understand the nature of
their impacts
Contingency View of KM
„ Contingency view suggests that no one
approach is best under all
circumstances
„ Contingency perspective considers the
path to success to include multiple
alternative paths, with success achieved
only when the appropriate path is
selected
Universalistic View of KM
„ There is a single best approach of
managing knowledge, which should be
adopted by all organizations in all
circumstances
„ Knowledge sharing is recommended as
useful to all organizations, although
direction may sometimes represent an
equally effective but more efficient
alternative.
 Contingency Factors and KM
Solutions
Contingency
Factors
3
KM Solutions 2 1

KM Infrastructure KM Systems KM Processes

• Organization Culture • Knowledge Discovery Systems • Knowledge Discovery
• Communities Of Practice KM Mechanisms • Knowledge Capture Systems • Knowledge Capture
4 KM Technologies
• Organization Structure • Knowledge Sharing Systems • Knowledge Sharing
• IT Infrastructure
5 • Knowledge Application Systems
6 • Knowledge Application
• Organizing Knowledge

7
Categories of Contingency
Factors
Environmental Characteristics

Organizational Characteristics

Task Characteristics

Knowledge Management

Knowledge Characteristics
Task Characteristics
„ KM processes that are appropriate for
an organizational subunit depend on
the nature of its tasks
„ Task Uncertainty
„ Task Interdependence
Task Uncertainty
1. Task uncertainty is argued to reduce the
organization’s ability to develop routines, and
hence knowledge application would depend on
direction
2. When task uncertainty is high, externalization and
internalization would be more costly due to
changing problems and tasks
3. Under high uncertainty, direction or socialisation
would be recommended.
Task Interdependence

1. Indicates the extent to which the subunit’s

achievement of its goals depends on the
efforts of other subunits
2. Performance of interdependent tasks relies
mainly on dynamic interaction in which
individual units of knowledge are combined
and transformed through communication
and coordination across different functional
groups
Effects of task characteristics on KM processes
Exchange High
Combination Exchange

Task Interdependence
Direction
Socialization Combination
Socialization
Direction Routines
Routines

Internalization
Externalization Direction
Internalization Routines
Externalization
Low
Direction
Routines Low High
Task Uncertainty

Routines Direction
Internalization Socialization
Externalization
Exchange
Combination
Effects on Knowledge Characteristics

„ Explicit vs. tacit

„ Procedural vs. declarative
„ General vs. specific
Procedural and Declarative
Knowledge
„ Procedural knowledge, know-how, focuses
on the processes or means that should be
used to perform the required tasks, such as
how to perform the processes needed to
achieve the specific product design
„ Declarative knowledge, know-what, focuses
on beliefs about relationships among
variables
 Effects of Knowledge
Characteristics on KM Processes
Procedural or Declarative Procedural

Discovery
• Explicit: Combination
• Tacit: Socialization

Sharing Application
• Tacit: Socialization • Tacit/Explicit: Direction
• Explicit: Exchange • Tacit/Explicit: Routines

Capture
• Tacit: Externalization
• Explicit: Internalization
Organisational size and KM
process
1. Organization size affects KM processes by
influencing the choice between the two processes
supporting knowledge application (direction,
routines) and the two processes supporting
knowledge sharing (socialization, exchange).
2. However, small and large organizations do not
differ in terms of the suitability of the alternative
knowledge capture processes (externalization,
internalization).
Environmental uncertainty
„ Environmental uncertainty also affects the
suitability of various KM processes
„ Low levels of uncertainty: K sharing and
capture recommended
„ Under higher uncertainty, knowledge
application and discovery recommended
Identification of Appropriate
KM Solutions: methodology
1. Assess the contingency factors.
2. Identify the KM processes based on each
contingency factor.
3. Prioritize the needed KM processes.
4. Identify the existing KM processes.
5. Identify the additional needed KM processes.
6. Assess the KM infrastructure.
7. Develop additional needed KM systems,
mechanisms, and technologies.
Conclusions
„ Distinguished between universalistic
and contingency views
„ Examined a variety of contingency
factors, and the effects they have on
the suitability of alternative KM
processes