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Measuring Employee Readiness For Knowledge Management Using Intention To Be Involved With KM SECI Processes
Measuring Employee Readiness For Knowledge Management Using Intention To Be Involved With KM SECI Processes
www.emeraldinsight.com/1463-7154.htm
Measuring
Measuring employee readiness employee
for knowledge management using readiness for KM
intention to be involved with KM
777
SECI processes
Nor Shahriza Abdul Karim
International Business School, Universiti Teknologi Malaysia,
Kuala Lumpur, Malaysia
Mohamed Jalaldeen Mohamed Razi
International Islamic University Malaysia, Kuala Lumpur, Malaysia, and
Norshidah Mohamed
International Business School, Universiti Teknologi Malaysia,
Kuala Lumpur, Malaysia
Abstract
Purpose – The purpose of this study is to investigate the concept of knowledge management (KM)
readiness using intention to be involved in the KM processes concept. These processes comprised of
socialisation, externalisation, combination, and internalisation (SECI processes). The research also
attempts to measure and validate the concept using data collected from the Sri Lankan
telecommunication industry.
Design/methodology/approach – Based on the established KM SECI process measures adopted
and adapted, instruments were administered using a survey research methodology approach on 313
executives working in the selected organizations in the Sri Lankan telecommunication industry.
A confirmatory factor analysis technique was performed to verify and validate the measurement
model of the intention to be involved in KM processes model. Based on the revised measurement
model, the level of intention to be involved in the KM SECI processes within the industry was then
reported.
Findings – The research finding provides the revised measurement model for employees’ intention
to be involved in KM SECI processes. All four variables of the intention to be involved in KM SECI
processes emerged as significant and reliable measures for KM readiness. The finding also indicates
the positive level of intention among the employees in the Sri Lankan telecommunication industry to
be involved in KM processes.
Originality/value – The research provides a unique perspective of KM readiness, which is not much
covered in the KM literature. The measurement produced can be used as a research tool for more
exploratory and explanatory research in KM and, as an evaluative tool for employee readiness in
ensuring the success of KM initiatives in organizations. The confirmed and validated set of
measurement items can be used to measure the extent to which employees are ready to be involved
with KM processes. Through the validated tool, more research can be conducted to explore the
antecedents of such readiness perception.
Keywords Knowledge management readiness, Knowledge management acceptance,
Knowledge management process, SECI process, Knowledge management research, Business Process Management
Journal
Knowledge management, Sri Lanka, Organizational behaviour Vol. 18 No. 5, 2012
pp. 777-791
Paper type Research paper q Emerald Group Publishing Limited
1463-7154
DOI 10.1108/14637151211270153
BPMJ 1. Introduction
18,5 The importance of knowledge management (KM) has been well documented
as businesses are beginning to accept the notion that knowledge and innovation as
significant contributors to organizational success and competitiveness (Omerzel, 2010).
As a result, many researchers are found engaging in research in various different areas
of KM involving technological, infrastructural, financial or human perspectives within
778 the organizations. Some research can also be found giving focus on organizational
readiness for KM (KM readiness) (Mamaghani et al., 2011; Shirazi et al., 2011;
Mohammadi et al., 2009; Wei et al., 2009; Holt et al., 2007; Siemieniuch and Sinclair, 2004;
Razi and Karim, 2010, 2011) in organizations, as embarking in KM requires intense
preparation and significant amount of resource investment.
Organizations need to understand the degree of acceptance or preparedness among
the employees before making commitment to providing the necessary policy supports
and infrastructures to be involved with KM activities and initiatives. Acceptance from
the user perspective has been long seen as highly crucial in the organizational and
human behavioural perspective (Fishbein and Ajzen, 1975; Davis, 1989; Venkatesh et al.,
2003). Such acceptance would indicate the degree of readiness of the organization
to further embark on various KM initiatives and resource allocations. Though, studies
on KM readiness can be found available in the literature (Mamaghani et al., 2011;
Shirazi et al., 2011; Mohammadi et al., 2009; Wei et al., 2009; Holt et al., 2007; Siemieniuch
and Sinclair, 2004; Razi and Karim, 2010, 2011), not much is available in providing good
measurement assessment using the behavioural intention perspective. Such perspective
is commonly applied in the technology acceptance model (TAM) to indicate success
and readiness in technology use and implementation (Davis, 1989).
KM implementation in organizations requires significant amount of change to
its strategies, processes, and initiatives. These changes can take many forms ranging
from organizational strategies, human attitudes, and physical infrastructures.
It is therefore, highly important that an evaluation on organizational readiness to
implement KM can be done prior to any attempt to embark on various KM initiatives
(Holt et al., 2007; Siemieniuch and Sinclair, 2004). Indeed, not many attempts have been
made among researchers to investigate this area of KM, though such knowledge and
understanding could have provided organizations with more effective and efficient
means of implementing various KM initiatives and programmes (Wei et al., 2009).
KM readiness is a concept that has been constantly investigated using various
different means and perspectives. Authors, such as Holt et al. (2007), Keith et al. (2006),
Wei et el. (2009), Siemieniuch and Sinclair (2004), Taylor and Schellenberg (2008) and
Rowley (2000), have made attempts to work on this focus area of KM. Still, the concept of
KM readiness remains indecisive and requires more research works to further
strengthening its concept, methodological, and measurement approaches. Among
research attempts made on KM readiness are those conducted by Wei et al. (2009),
Taylor and Schellenberg (2008), Rowley (2000) and Razi and Karim (2010, 2011).
KM readiness (organizational readiness for KM) has been measured in the past by
measuring gaps between the perceived KM effectiveness and its perceived importance to
the related organizational practices (Taylor and Schellenberg, 2008), and by measuring the
gaps between perceived importance and actual implementation of selected KM related
organizational practices (Wei et al., 2009). Arguably, these existing approaches using gap
analyses may not necessarily reflect the notion of readiness as claimed by the authors.
Indeed, the gaps identified were mere indicators of the status of KM implementation Measuring
success and performance as evaluated from the employees’ perspective. Therefore, the employee
alternative concept of KM readiness as proposed by the authors needs to reflect the notion
of organization being ready through employee acceptance. readiness for KM
Other more prevalent theories in behavioural science such as readiness theory
(Pruitt, 2007), community readiness model (Kelly et al., 2003), readiness for
organizational change (Lehman et al., 2002; Armenakis et al., 1993), and individual 779
acceptance models (Fishbein and Ajzen, 1975; Davis, 1989; Venkatesh et al., 2003), are
found relevant in this pursuit. Therefore, KM readiness can be translated into receptive
attitudes of organizational members to be involved in KM process through the
availability of resources and various other organizational internal and external factors.
In an attempt to provide readiness measures from the behavioural intention perspective,
KM readiness has, therefore, been defined in this research as the intention to be involved
in the KM processes by the organizational individuals (executives) within the prevailing
organizational context. The KM processes, which are commonly known as the SECI
processes of socialization, externalization, combination, and internalization are the key
indicators of KM existence in organizations (Becerra-Fernandez et al., 2004). Willingness
to be involved in part or in whole of these KM SECI processes is arguably a good
indicator of KM readiness in the organization.
This research seeks to provide an analysis of KM readiness in organizations from
the proposed behavioural intention measures. In this regards, readiness is perceived
when the employees collectively give high level of intention in getting involved with
the KM SECI processes. The KM processes measures from SECI are comprised of four
variables namely socialization, externalization, combination, and internalization.
This measurement model is expected to contribute significantly in our pursuit to
understand and measure KM readiness, and in our future understanding of a full KM
readiness model that may comprised of other contributors such as KM enablers
(organizational structures, cultures, IT infrastructure) and individual expectation and
acceptance (performance expectancy and effort expectancy).
2. KM process
KM, in a nutshell, has been defined as doing what is needed to get the most out of
knowledge resources (Becerra-Fernandez et al., 2004). In other organizational context,
KM is defined as any intentional and systematic process or practice of acquiring,
capturing, sharing, and using productive knowledge, wherever it resides, to enhance
learning and performance in organizations (Bozbura, 2007). Although there are
discrepancies in the literature regarding the processes involved in KM, there are four
basic processes of KM commonly known in the literature. These are creating,
storing/retrieving, transferring, and applying knowledge (Alavi and Leinder, 2001).
However, among the KM processes, the processes of knowledge creation and sharing
have been given much importance (Lee and Choi, 2003). As such, only the process
of knowledge creation and sharing would be considered as KM process in this work.
3. Methodology
3.1 Data collection and measurement
782 A questionnaire was developed based on items adopted from Lee and Choi (2003) and
Choi and Lee (2001), in order to measure the intention to be involved in the SECI processes.
Their studies were developed based on the original work of Nonaka et al. (1994). Lee and
Choi (2003) and Choi and Lee (2001) have reported the following Cronbach’s a values for
the measures based on their studies, respectively; socialization 0.84, 0.86; externalization
0.91, 0.88; combination 0.86; 0.85; internalization 0.89, 0.88, respectively. The
questionnaire was comprised of 19 items. See the Appendix for questionnaire items.
Respondents were asked to indicate (on a seven-point Likert scale ranging from “strongly
disagree” to “strongly agree”) their level of agreements on the statements.
Data were collected from 313 executives in the Sri Lankan telecommunication
industry. This sector was chosen because it was considered as knowledge intensive
industry (Wei et al., 2009). In addition, the current market hi-tech companies such as
telecommunication firms must implement innovative business strategies, and invest vast
resources in research and development in order to remain competitive in the market
(Reychav and Weisberg, 2010). This makes KM as important concept for these firms to
succeed.
3.2 Analysis
In validating and confirming the measurement used, confirmatory factor analysis (CFA)
was performed using AMOS version 16. This analysis technique was used as a process
of refining the measurement items to achieve reliability and validity for a confirmed
readiness model. Once the results have shown the confirmed model, statistical analysis
was applied to demonstrate the assessment status of KM readiness in the Sri Lankan
telecommunication industry.
4. Findings
4.1 The revised measurement model
The first and second-order CFAs model were performed using AMOS version 16, for
confirming the measurement used. In the first-order CFA, the four constructs were
represented as correlated first-order factors. Convergent validity is established if the
loadings of the measures to their respective constructs are at least 0.60 (Bagozzi and
Yi, 1988). In structural equation models, the reliability of parameters is defined as the
magnitude of the direct effects that the latent variables exert on the indicators. This is
determined by means of the square multiple correlations (also referred to as R 2) of each
indicator and the total coefficient of determination (Bollen, 1989). Further, all squared
multiple correlations (SMCs) must be at least 0.40 (Bollen, 1989). Based on the analysis
result, the observed variables with factor loading less than 0.60 and SMCs less than
0.40 were removed. Accordingly, only ten observed variables (Table I) were considered
for further analysis. Table I provides the summary of the revised measurement items from
the analysis with the reports on mean score, standard deviation, factor loadings, and
SMCs.
Measuring
Item name Item description M SD Factor loadings SMC
employee
Socialization readiness for KM
SOC_1 I intend to be involved in gathering information and 5.61 0.887 0.73 0.54
experiences from others within my organization
SOC_2 I intend to be involved in sharing information and 5.67 0.833 0.83 0.69
experiences with others within my organization 783
Externalization
EXT_2 I intend to use deductive (top down) and inductive 5.13 1.196 0.70 0.49
(bottom up) thinking for strategy formulation
EXT_3 I intend to use metaphors (images/description) in 5.12 1.194 0.76 0.58
dialogue for concept creation
Combination
COM_1 I intend to use published literature, computer 5.24 1.171 0.69 0.47
simulation and forecasting to formulate strategies
COM_2 I intend to create documents on product and services 5.14 1.253 0.75 0.56
COM_3 I intend to create databases on products and services 5.11 1.297 0.81 0.65
COM_4 I intend to build up materials by gathering literature 5.08 1.283 0.74 0.55
and technical information
Internalization
INT_3 I intend to be involved in searching and sharing new 5.60 0.874 0.76 0.57
values and thoughts with colleagues Table I.
INT_4 I intend to share and try to understand management 5.72 0.882 0.66 0.43 Properties of the SECI
vision through communications with colleagues process measurement
The average variance extracted (AVE) scores, which measure the convergent validity, are
found above the minimum suggested value of 0.5 for all constructs (Hair et al., 2010).
Accordingly, the values are 0.614 for socialization, 0.533 for externalization, 0.56 for
combination, and 0.503 for internalization. Indeed, the AVE value score below 0.5 would
indicate high remaining errors (on average) in the items, which is more likely to result in low
convergent validity of the constructs (Hair et al., 2010). The composite reliability (CR),
another indicator of convergent validity, is also found relatively high for most constructs
with values above 0.7, except for internalization construct (Table II). The high construct
validity is important to indicate that all measures are consistent representation of the
same latent construct (i.e. socialization, externalization, combination, internalization).
However, CR values between 0.6 and 0.7 can be acceptable for internalization since values
for other indicators such as AVE and factor loadings are found considerably high (Hair et al.,
2010). The discriminant and convergent validities are also achieved with AVE scores above
0.5 and correlation values below 0.84 as suggested by Sekaran and Bougie (2009).
SECI M SD CR 1 2 3 4
785
Figure 1.
Second-order factor
analysis model
average mean score (which is above 5.0) for each of the KM SECI process construct.
It is therefore, implies that the industry is somewhat ready, with the collectively high
inclination of the employees to adopt the process. This readiness means, the industry can
formulate efforts and strategies to maximize benefits from KM by introducing
new culture, structure, reward system, and infrastructure needed to improve knowledge
sharing and creation within the organization.
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BPMJ
Table AI.
Questionnaire items
Appendix
Variable Description
Social_1 I intend to be involved in gathering information and experiences from others within my organization
Social_2 I intend to be involved in sharing information and experiences with others within my organization
Social_3 I intend to be engaged in dialogue with competitors
Social_4 I intend to be involved in finding new strategies and opportunities inside the organization
Social_5 I intend to be involved in creating a work environment that allows colleagues to understand the craftsmanship and expertise
Extern_1 I intend to be involved in creative dialogues with colleagues
Extern_2 I intend to use deductive (top down) and inductive (bottom up) thinking for strategy formulation
Extern_3 I intend to use metaphors (images/description) in dialogue for concept creation
Extern_4 I intend to exchange various ideas with colleagues
Extern_5 I intend to provide subjective opinions in dialogues
Comb_1 I intend to use published literature, computer simulation, and forecasting to formulate strategies
Comb_2 I intend to create documents on product and services
Comb_3 I intend to create databases on product and services
Comb_4 I intend to build up materials by gathering literature and technical information
Comb_5 I do not intend to transfer newly created concepts to my colleagues
Intern_1 I intend to be involved in liaisoning activities with other departments by developing cross functional teams
Intern_2 I intend to be involved in setting teams as a model for conducting experiments, and sharing results with entire departments
Intern_3 I intend to be involved in searching and sharing new values and thoughts with colleagues
Intern_4 I intend to share and try to understand management vision through communications with colleagues
About the authors Measuring
Professor Dr Nor Shahriza Abdul Karim obtained her PhD in Information Science and
Technology from Syracuse University School of Information Studies, NY, and is currently employee
a Professor at the International Business School (IBS) Universiti Teknologi Malaysia. readiness for KM
Her areas of research and teaching interest have expanded into the field of information
system, information technology management and knowledge management. Throughout
her career, she has conducted many academic and applied research for both private
and government sectors and published in many international indexed journals such as 791
Computers & Education, Journal of Information Management & Computer Security,
International Journal of Information Management, Campus-Wide Information Systems, etc.
Her current research topics are on knowledge management readiness, electronic health
record implementation impact on performance, and information technology adoption and
appropriation. Nor Shahriza Abdul Karim is the corresponding author and can be contacted at:
nshahriza@ic.utm.my
Dr Mohamed Jalaldeen Mohamed Razi is a Lecturer from the University of Colombo and
acquired a PhD degree from the International Islamic University Malaysia. He acquired his MBA
from the University of Colombo and has been a lecturer ever since. He has been an active
researcher in the area of knowledge management and information systems and has published
many research papers in various conferences and refereed journals.
Dr Norshidah Mohamed is an Associate Professor of Management Information Systems at the
International Business School Universiti Teknologi Malaysia. Prior to joining academia, she spent
more than ten years in the financial and information technology industries. She has worked in
various consulting engagements in private and public organizations. She holds a Doctor of
Philosophy in Management Information Systems from the International Islamic University
Malaysia, Master of Business Administration from Ohio University (USA), Bachelor of Science in
Mathematics from University of Utah (USA) and Graduate Certificate in Management
Consultancy from the Institute of Management Consultants Singapore. Her research interests
include performance issues and adoption of information systems in organizations and knowledge
management.