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Abstract
Purpose – This paper aims to examine how organizational culture, structure and technology
infrastructure influence knowledge sharing.
Design/methodology/approach – This study is based on quantitative research, administered on 90
managerial staff in multinational corporations (MNCs) based in Malaysia.
Findings – The paper explains the role of organizational cultural and structure on
knowledge-sharing processes in MNCs, with the moderating effect of technology infrastructure.
Learning and development, top management support and centralization are positively related to
knowledge sharing, using technology infrastructure as a moderator.
Research limitations/implications – The findings will help MNCs to create an appropriate
environment of knowledge sharing. However, the research is limited to MNC’s in Penang, Malaysia,
only. Furthermore, similar research can be extended to MNCs in other Asian countries with a larger
sample which may bring more statistical power and, thereby, increases generalizability.
Practical implications – The outcome of this research provides useful indications of how
organizations can work to ensure knowledge sharing within their work place.
Originality/value – While the links between organizational culture and knowledge sharing and
between organizational structure and knowledge sharing have been examined independently, few
studies have investigated the association between the three concepts. This paper examines the
nature of this relationship and presents empirical evidence, which suggests that the relationship
between organizational culture, organizational structure and knowledge sharing is moderated by
the technology infrastructure.
VINE
Keywords Knowledge sharing, Organisational culture, Applied knowledge management, Vol. 45 No. 1, 2015
pp. 67-88
IT architecture © Emerald Group Publishing Limited
0305-5728
Paper type Research paper DOI 10.1108/VINE-05-2014-0037
VINE 1. Introduction
45,1 In today’s knowledge-driven economy, organizations acknowledge knowledge as a
strategic resource which is shared and created to ensure a sustainable competitive
advantage (Zhang and Jasimuddin, 2008; Howell and Annansingh, 2013;
Jasimuddin, 2007). Knowledge management is an integrated process that collects,
stores and disseminates knowledge in an organization. Although sharing of
68 knowledge among organizational employees is encouraged (Jasimuddin and Zhang,
2011), knowledge sharing is not straightforward. For example, tacit knowledge is
more difficult to share than explicit knowledge which can be easily disseminated to
a large number of people (Ling et al., 2009; Jasimuddin et al., 2005a, 2005b). In this
regard, Gold et al. (2001) identify several key factors (e.g. culture, structure and
technology) that enable smooth and efficient sharing of knowledge.
The topics surrounding organizational culture and structure have attracted
considerable interest among both academics and practitioners within knowledge
management field (Zheng et al., 2010; Liao et al., 2011; Wiewiora et al., 2013; Islam
et al., 2012; Jasimuddin et al., 2005a, 2005b). Zheng et al.’s (2010) study, for example,
examines the mediating role of knowledge management in the relationship between
organizational culture, structure, strategy and organizational effectiveness,
suggesting that knowledge management fully mediates the impact of organizational
culture on organizational effectiveness, and partially mediates the impact of
organizational structure and strategy on organizational effectiveness. Similarly, the
use of technological infrastructure within an organization impacts upon the design
of the business, its economic performance and the working conditions of
organizational members (Doherty et al., 2010).
However, the notions of organizational culture and structure have been
frequently discussed independently in the existing literature. But the previous
studies rarely combine them. Liao et al. (2011), for example, examine the relationship
between environment and organization culture with the mediating role of
knowledge management. We know very little about how organization culture and
structure jointly influence knowledge sharing. It is argued that technology can be
moderated to test the relationship of organizational culture and structure with
knowledge sharing. The present paper intends to fill in the gap in the current
literature by adding technological infrastructure as a moderating factor in the
relationship between organizational culture, structure and knowledge sharing and
quantifying the relationship. Most specifically, the paper will focus on the influence
of organizational culture and organizational structure, moderated by technological
infrastructure, on knowledge sharing.
The primary aim of this paper is to present a theoretical model and empirical analysis
of the relationship between organizational culture, organizational structure and
knowledge sharing. It also contributes to our understanding about the mediating effect
of technological infrastructure in this relationship. Hence, the rest of the paper is
organized as follows. In the next section, we review the relevant literature and develop
the hypotheses. We then describe the methodology adopted in this research, followed by
an analysis of the findings. The subsequent section discusses the empirical results.
Finally, we conclude with the directions for future research and theoretical and
managerial implications.
2. Literature review MNCs based
This section rigorously reviews the relevant literature to propose a research model in Malaysia
which posits that the characteristics of organizational culture and structure influence
knowledge sharing in the context of multinational corporations (MNCs) based in
Malaysia. In addition, potential causal relationships between them are explored using
the moderation effect of technological infrastructure.
69
2.1 Knowledge sharing
Knowledge sharing among employees in an organization is widely regarded as a crucial
component in business (Szulanski, 2000; Jasimuddin et al., 2012). Jasimuddin (2006), for
instance, contends that knowledge sharing is important for enhancing the competitive
advantage of an organization. Jasimuddin’s (2006) argument is developed by Cohen and
Levinthal (1990) who suggest that knowledge transfer is a critical factor for a firm’s
ability to respond to changes, innovate and achieve competitive success.
Drawing on the social capital theory, it can be argued that knowledge sharing
between individuals is contingent upon social interaction which is vital for making
any successful decision (Adler and Kwon, 2002; Nahapiet and Ghoshal, 1998;
Kostova and Roth, 2003). In line with this, Teh and Sun (2012) argue that knowledge
sharing is a process of exchanging knowledge, experiences and skills through social
interaction within a department or organization. Parallel to this, Dyer and Nobeoka
(2000) define knowledge sharing as the activities of how organizational members
exchange their knowledge to improve organizational learning capacity, stimulate
the creation of new knowledge and, eventually, enhance its competitiveness. An
attempt can be made to provide a working definition of knowledge transfer for the
purpose of the present research: knowledge sharing within an organization is an act
of transmission of organizational knowledge among employees so that they can take
purposeful actions and involve in innovation.
However, the motivation of knowledge sharing is not straightforward (Jasimuddin
et al., 2006). Wang et al. (2014) investigate how to motivate knowledge sharing in an
organization, arguing that knowledge sharing will be greater for employees who are
encouraged, evaluated and rewarded. Keong and Al-Hawamdeh (2002) observe that
knowledge is power and no one is willing to give it away freely. In this regard, others
(Davenport and Prusak, 1998; Liao et al., 2011; Gibbert et al., 2002) contend that
leadership, organizational structure and organizational culture are critical success
factors for knowledge sharing. These issues will be elaborated in turn.
3. Research methodology
A hierarchical multiple regression analysis is used to test the hypotheses, using
statistical software SPSS version 15. The hierarchical procedure allows us to examine
whether adding predicator variables and interaction terms increased the statistical
power of the model (Kotabe et al., 2011). The source of data collection was MNC which is
an effective vehicle for knowledge transfer (Inkpen, 2008; Hong et al., 2009). A
questionnaire survey was developed using the previous work and utilized for data
collection. The questionnaire consisted of seven sections having measurement scale for
collaboration, learning and development, top management support, formalization,
centralization, technological infrastructure and knowledge sharing (Appendix). A draft
questionnaire was pilot tested on few academics and professionals to validate these
measures prior to finalizing it. The primary means of distributing the survey
questionnaire was via e-mail with a cover letter explaining the objectives of the study.
Culture
Collaboration
Learning and Development orientation
Top management support
H1-H5 Knowledge
Sharing
Structure
Formalization
Centralization
Figure 1. H6-H10
A conceptual model
of knowledge sharing Technology Infrastructure
The 35 global high-tech MNCs operating in Malaysia were selected randomly. It is MNCs based
widely believed that global MNCs apply more knowledge management tools than local in Malaysia
companies. The respondents of this study were managerial staffs who were also selected
randomly from the MNC based in Penang, Malaysia. A total of 150 questionnaires were
distributed, 90 were returned showing a response rate of 60 per cent. The respondents
were appropriate in terms of sharing knowledge, and were associated with mentoring
and leading a team which is essential for knowledge sharing. 75
To ensure content validity, the items of the questionnaire were selected from the
previous research, adopted particularly from the constructs used by other scholars
(Gold et al., 2001; Yang, 2007; Hedlund, 1999; Hurley and Hult, 1998). Cronbach’s alpha
was used to evaluate the internal consistency of the items. All questionnaire items were
assessed on a 5-point Likert-type scale ranging from (1) to (5) representing (1) as
“strongly disagree” to (5) as “strongly agree”.
4. Results
The profile of the respondents include: university educated (91.1 per cent), male (56.7 per
cent) and in the above 30-years age group (74.4 per cent). The study particularly targeted
the middle- and the top-management personnel. In total, the majority of the companies
were in the electronics/electrical sector (83.3 per cent). In term of years of their operation
in Malaysia, 63.3 per cent of the MNCs under the study were operating in Malaysia for
more than 20 years. Demographic information is demonstrated in Table I.
The internal reliability can be tested using Cronbach’s alpha (Fornell and Larcker,
1981). Hence, Cronbach’s alpha (␣) reliability estimates were used to measure the
internal consistency of these multivariate scales (Nunnally, 1978). Table II shows the
reliability assessments for independent variables, moderating variable and dependent
variable to test the internal consistency. The reliability analysis indicates the degree to
Variable  Significance
Table IV.
77
in Malaysia
MNCs based
regression summary
Hierarchical
VINE substantial fraction of total variance of successful knowledge sharing was, indeed,
45,1 predicted by the variables considered.
From the hierarchical regression, it was found that moderator TECH was not
significant enough to be considered as an independent variable. However, as proposed
in the study, TECH plays a role as a moderator. The hypothesized relationship between
centralization and knowledge sharing which was rejected in Model 1 is positively
78 moderated by TECH in Model 3. This indicates that TECH moderates the relationship
between centralization and knowledge sharing (Significance ⫽ 0.00). Therefore, from
the findings of hierarchical regression, we can accept the following hypotheses:
• Technology infrastructure moderates the relationship between learning and
development and knowledge sharing (H7).
• Technology infrastructure moderates the relationship between leadership
commitment and knowledge sharing (H8).
• Technology infrastructure moderates the relationship between centralization and
knowledge sharing (H10).
5. Discussion
This study attempts to extend our understanding of the relationship between
organizational culture, structure and knowledge sharing by adding technology
infrastructure as a moderator in their relationship. We propose and test an integrated
framework in which organizational culture and structure are treated as the key factors
that influence knowledge sharing, and technology moderates such relationship.
The study reveals that collaboration plays an important role in organizational
knowledge sharing. Collaboration is found to be positive but insignificant among
the factors contributing to knowledge share in this study. This result partially
supports the work of Ryan et al. (2010) and Rivera-Vazquez et al. (2009). The
outcome regarding the relationship between collaboration and knowledge sharing
found in MNCs based in Malaysia could be interpreted from different angle. It is
possible that people within an organization believe in the principle of knowledge
hoarding, what Hansen (1999) identifies the fear of losing power. The notion
explains individuals’ unwillingness to share knowledge with others as they believe
their acquired knowledge is valuable and necessary for their personal benefits (e.g.
job security, career progression). This is quite a normal tendency of individuals and
the opposite may be true when they perceive that their colleagues and managers are
supportive what Jasimuddin et al. (2006) term it as “reciprocity”. The insignificant
moderating role of technology infrastructure, as evidenced in the relationship
between collaboration and knowledge sharing, confirms that employees are
reluctant to share information despite the technological orientation their
organizations have toward knowledge-sharing process.
Learning and development orientation is found to have a significant relationship
with knowledge sharing. This result also confirms the previous studies (Islam et al.,
2008; Yang, 2007). From the organizational perspective, learning and development
orientation is a prerequisite for long-term success in knowledge cultivation. Learning
through sharing knowledge among organizational members can bring in benefits for an
organization (Yang, 2007; Jones et al., 2003). First, it enables employees to reflect on the
consequences of their behaviors and actions. Second, it augments the ability to approach
to organizational problem more accurately by understanding the environment, MNCs based
obtaining insights from the place where they operate. That is why organizations rely in Malaysia
largely on its employee skills and knowledge so as to produce a breakthrough in its
products and services through continued learning (Tidd et al., 1998). Because learning is
vital for knowledge flow, technology helps bridging the gap between knowledge
sharing and learning. In addition, technology infrastructure can be explained as an
enabler to the knowledge-based organization, especially in the area of learning and 79
development. Moreover, technology infrastructure plays a positive and significant role
between learning and development and knowledge sharing.
The research also reveals that leaders as role models play an important role in
organizational knowledge sharing, arguing positive and significant relationship
between top management support and knowledge sharing. The finding of this paper
also supports the previous work (Islam et al., 2011; Kerr and Clegg, 2007). In fact, they
can influence subordinates to involve in knowledge-sharing activities (Islam et al., 2011).
Technology, however, is shown here to play an important positive role in contributing to
the relationship between leadership and knowledge sharing, as leaders’ vision, attitude
and behavior are critical for the employees’ perceptions (Ke and Wei, 2008). A possible
explanation of this finding can be urged that managers of the MNCs operating in
Malaysia are committed toward their effort to promote knowledge-sharing activities as
knowledge bearers, and connecting themselves with other people within the
organization using technological platform.
Formalization has been found to have a significant negative relationship with the
knowledge-sharing process. This finding fully complies with the prior studies (Islam
et al., 2010). The existing literature also supports the notion that formally structured
organizations cannot ensure full flow of knowledge, as these organizations are driven by
set goals which do not create culture for effective knowledge sharing to take place. In
fact, formalization can impede the generation of new ideas. Whereas, informal setting or
structure with fewer rules and regulations makes people feel less stressed, thereby
creating opportunities to knowledge sharing with each other in respect to their work
which creates greater flexibility and creativity. Therefore, for MNC’s based in Malaysia,
it is important to develop an informal environment where employees consider their
organizational members as family, and share knowledge among themselves.
Previous studies (Islam et al., 2010; Chen et al., 2010; Willema and Buelensa, 2009
Islam et al., 2008) support the findings of this study. It is to be noted that technology
infrastructure was not shown to have a favorable moderating effect in establishing the
relationship between formalization and knowledge sharing in MNC’s operations. This
further explains the importance of informal organizational setting for knowledge
sharing irrespective of the working environment that is facilitated with or without good
technological infrastructure. Thus, organizations with insufficient technical platform
cannot escape the need of creating less formal environment, pointing to the idea that it is
perhaps more needed for organizations with appropriate technical infrastructure.
Rigid hierarchical arrangement within the workplace is thought to hinder knowledge
sharing and creation (Tsai, 2002). MNCs operating in Malaysia demonstrate the same trend
in relation to the possible relationship between centralization and knowledge sharing. The
less hierarchical organization structure enhances greater instances of knowledge sharing
(Sharratt and Usoro, 2003). It is possible that people in Asia are more comfortable working
under close supervision and well-defined chain of command. Again, this interpretation could
VINE be further questioned given the fact that, formalization, being as an important aspect of
45,1 organizational structure, is found to have a significant negative impact in the current study.
In general, knowledge sharing through relatively flat hierarchy (horizontal) induces more
flow of knowledge than a hierarchy that incorporates too many layers empowering people at
the top (vertical). This paper confirms others’ work (Chen et al., 2010; Nonaka and Takeuchi,
1995) who argue that centralization affects knowledge sharing. The introduction of
80 technology infrastructure as a moderator in the relationship, however, sheds some new light.
A positive and significant relationship is observed to affect the relationship between
centralization and knowledge sharing in the presence of technology infrastructure. In the
absence of technology infrastructure, no significant relationship has been found. This
prompts us to infer that centralization affects knowledge sharing, and technology plays a
vital role in such relationship.
Interestingly, the paper confirms the previous work (Zheng et al., 2010; Liao et al.,
2011; Wiewiora et al., 2013; Islam et al., 2012) which also shows that organizational
culture and organizational structure as a whole play an active role in knowledge
sharing. Additionally, the results of this study suggest that technology infrastructure
mediates the impact of organizational culture and organizational structure on
knowledge sharing, as they extend the scope of research.
This paper makes several contributions to the literature. The contribution of this paper is
twofold. First, we contribute to the conceptualization of the organizational culture and
organizational structure as the important aspects of knowledge sharing. Prior work has
typically studied the effect of organizational culture and organizational structure on
knowledge sharing, which this study confirms. While many studies have focused isolatedly
on the importance of organizational culture (Sackmann and Friesl, 2007; Rivera-Vazquez
et al., 2009) and organizational culture and organizational structure (Chen et al., 2010;
Willema and Buelensa, 2009) for knowledge transfer, this paper brings them together to
explain their linkage and quantify the relationship.
Second, we extend these studies by exploring technological infrastructure that
moderates the relationship of organizational culture and organizational structure with
knowledge sharing. Hence, the paper goes beyond the conventional finding to provide
new insights. Although the paper does not develop a new theory, it will motivate
scholars and practitioners to engage with the issues in different ways than they have in
the past.
7. Conclusion
In today’s business world, knowledge is considered as a vital resource in formulating
appropriate competitive strategies so as to ensure successful performance of MNCs. As
knowledge sharing is thought to be a powerful source of gathering knowledge and
creating competitive advantage, it is desirable for companies to adopt an environment
where proper knowledge flow can be assured. Generally speaking, knowledge-sharing
activities are dependent on organizational culture and structure. The current study
explains the role of organizational cultural and structure on knowledge-sharing process
in MNCs based in Malaysia, with the moderating effect of technology infrastructure.
Given its results, this study provides some useful suggestions for managers. The
outcome of this research provides useful indications of how organizations can work to
ensure knowledge sharing within their work place. This study helps MNCs to be aware
of the issues related to knowledge sharing. Most specifically, the finding will help the
MNCs to create appropriate environment within their surrounding knowledge to share.
As mentioned earlier, the research framework postulated in this study contributes to the
knowledge management practice, particularly knowledge sharing, in several ways. As
mentioned earlier, this study has some contributions towards the literature, as it
examined the relationship between organizational culture, structure and
knowledge-sharing practices in the MNC context. The incorporation of the moderating
variable (i.e. technology infrastructure) is an important addition to the literature because
the current body of knowledge lacks the empirical evidence on the moderation of
technology infrastructure in the knowledge-sharing process within the MNC
environment in an emerging economy (i.e. Malaysia). More specifically, this has been
reflected and evidenced in the study revealing the relationships between learning and
development, top management support, formalization, centralization and
knowledge-sharing behavior with the moderating role of technology infrastructure.
With a set of guidelines on technological infrastructure, organizations can pick up an
appropriate technology to share knowledge more efficiently.
Because various organizations require distinct types of approaches to knowledge
sharing because of the size, people, financial capability, etc., knowledge sharing requires
a major change in organizational culture and commitment at all levels of employees,
especially from the top management (Gupta and Govindarajan, 1991). The findings of
VINE this study will help MNCs to better understand the need for creating a better knowledge
45,1 sharing culture. Furthermore, managers may also utilize the findings of this study in
formulating and reviewing knowledge-sharing strategies.
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Appendix MNCs based
Please assess each of the following factors in terms of its importance in determining
knowledge-sharing process in organizations:
in Malaysia
I. ORGANIZATION CULTURE
A. Items on collaboration
In my organization […]
1. Employees are supportive and helpful.
2. Adequate organizational resources are available to the employees. 87
3. There is willingness to collaborate across organizational unit.
4. Employees are encouraged by their superiors to express and exchange their opinions and
ideas regarding work-related matters.
5. Employees are encouraged by their work group to express and exchange their opinions and
ideas regarding work.
B. Items on learning and development orientation
In my organization […]
1. Opportunities are provided for individual development, other than formal training (e.g. work
assignments and job rotation).
2. Employee are encouraged to attend formal development activities (e.g. training, professional
seminars, symposium).
3. There are people who provide guidance and counsel regarding one’s career.
4. Employees are rewarded for ideas on improvement.
5. Employees are encouraged to analyze mistakes made and learn from them.
C. Items on top management support
In my organization, management […]
1. Supports the role of knowledge in the firms’ success.
2. Provides adequate budgeting to support knowledge exchange or knowledge management
projects.
3. Reformulates any rules (e.g. personnel policies) that obstruct the knowledge sharing.
4. Encourages team members to experiment to improve work processes.
5. Rewards innovative ideas that work.
6. Does not treat new ideas from employees seriously.
II. ORGANIZATIONAL STRUCTURE
A. Items on formalization
In my organization […]
1. The employee feels that “I am my own boss” in most matters.
2. How things are done is left to the person doing the work.
3. Most people make their own rules on the job.
4. The employees are constantly being checked for rule violations.
B. Items on centralization
Using the scale above, which level of management is usually responsible for APPROVING the
following decisions?
1. Commitment of resources into new products.
2. Commitment of resources into new markets.
3. Initiating changes in the strategic direction of the firm.
4. Approving entry into new markets/businesses.
5. Strategic planning.
III. TECHNOLOGY INFRASTRUCTURE
Items on technology
My organization uses technology that allows […]
1. It to monitor its competition and business partners.
2. Employees to collaborate with other persons inside the organization.
3. Employees to collaborate with other persons outside the organization.
VINE 4. People in multiple locations to learn as a group from a single source.
5. People in multiple locations to learn as a group from multiple sources.
45,1 6. It to retrieve and use knowledge about its markets and competition.
7. Generate new opportunities in conjunction with its partners.
IV. KNOWLEDGE SHARING
Items on knowledge-sharing process
In my organization […]
88 1. There are processes for exchanging knowledge between individuals.
2. There are processes for distributing knowledge throughout the organization.
3. There are processes for exchanging knowledge with my business partners.
4. Knowledge is made accessible to all who need it.
5. Interdepartmental knowledge sharing occurs as a matter of course.
6. Employees fear that sharing their knowledge with others might reduce their influence within
the firm.
Notes: Organization Culture, Structure (Formalization), Technology and Knowledge Sharing
scale item: 1 Strongly Disagree, 5 Strongly Agree. Centralization scale item: 1 Top Executive, 2
Senior or corporate management, 3 Division managers or functional managers if there is no
divisional structure, 4 Functional managers if there is divisional structure and 5 ⫽ Middle-level
manager.
Corresponding author
Sajjid M. Jasimuddin can be contacted at: sajjad.jasimuddin@kedgebs.com
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