Xem mẫu
- INTERNATIONAL JOURNAL OF MANAGEMENT (IJM)
ISSN 0976-6502 (Print)
ISSN 0976-6510 (Online)
IJM
Volume 7, Issue 2, February (2016), pp. 191-199
http://www.iaeme.com/ijm/index.asp ©IAEME
Journal Impact Factor (2016): 8.1920 (Calculated by GISI)
www.jifactor.com
THE IMPACT OF KNOWLEDGE MANAGEMENT ON ORGANISATIONAL
PERFORMANCE
Dr. M.A Shakila Banu
Assistant Professor, Jamal Institute of Management,
Jamal Mohamed College, Trichy 20
K. Kalaivani
Research Scholar, Jamal Institute of Management,
Jamal Mohamed College, Trichy 20
ABSTRACT
Knowledge Management is a process that transforms individual knowledge into
organisational knowledge. The main aim of the project is to show that through creating,
accumulating, organising and utilising knowledge, oraganisation can enhance organisational
performance. The impact of knowledge Management practices on performance was
emprically tested through structural equation modelling. The sample included 52 employees
from HCL .The result shows that knowledge management practices measured through
information technology, organisation and knowledge positively affect organisational
performance
Key words: Knowledge Management, Organisational Performance, Impact of Knowledge
Management.
Cite this Article: Dr. M.A Shakila Banu and K. Kalaivani. The Impact of Knowledge
Management on Organisational Performance. International Journal of Management, 7(2),
2016, pp. 191-199, http://www.iaeme.com/ijm/index.asp
1. BACKGROUND
For many companies, the time of rapid technological change is also the time of incessant struggle for
maintaining a competitive advantage. It is obvious that knowledge is slowly becoming the most
important factor of production, next to labour, land and capital.
KM is a process that through creating, accumulating, organising and utilising knowledge helps
achieve objectives and enhance organisational performance. KM also consists of strategy, cultural
values and workflow. In order to maximize its value a change in strategies, processes, organisational
structures and technologies needs to be made.
The literature review shows there is a great number of critical success factors for KM. This paper
contributes to the knowledge management research field through understanding those factors, their
interrelation and the role of information technology in achieving a better business performance.
Researchers often imply this positive effect of knowledge management on organisational
performance. However, the researches that empirically prove the existing link are very rare. The aim
of this paper is to present a different knowledge management maturity model and to explain and
191
Dr. M.A Shakila Banu and K. Kalaivani "The Impact of Knowledge Management on Organisational
Performance"- (ICAM 2016)
- International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 191-199 © IAEME Publication
test the hypothesis about impact of knowledge management practices on organisational
performance. The model was empirically tested through structural equation modelling on a sample
of 52 employees from HCL.
2. INTRODUCTION
For many companies, the time of rapid technological change is also the time of incessant struggle for
maintaining a competitive advantage. It is obvious that knowledge is slowly becoming the most
important factor of production, next to labour, land and capital. Even though some forms of intellectual
capital are transferable, internal knowledge is not easily copied. This means that the knowledge
anchored in employees’ minds can get lost if they decide to leave the organisation. Therefore, the key
objective of management is to improve the processes of acquisition, integration and usage of
knowledge, which is exactly what knowledge management (KM) is all about.
KM is a process that through creating, accumulating, organising and utilising knowl-edge helps
achieve objectives and enhance organisational performance. KM also consists of strategy, cultural
values and workflow. In order to maximise its value a change in strategies, processes, organisational
structures and technologies needs to be made. One of the key benefits of introducing KM practices in
organisations is its positive impact on organisational performance.
The research conducted in Croatia suggests that KM positively affects organisational outcomes of
company innovation, product improvement and employee improvement. According to Fugate et al.,
results collected in a logistics operations context prove the existence of a strong positive relationship
between a KM process and operational and organisational performance. Still, it is not well understood
how different KM strategies affect organisational performance. Choi et al show that combining the
tacit-internal-oriented and explicit-external-oriented KM strategies indicates a complementary
relationship, which implies synergistic effects of KM strategies on performance. The results of the
study conducted by Zheng et al. suggest that KM fully mediates the impact of organisational culture on
organisational effectiveness, and partially mediates the impact of organisational structure and strategy
on organisational effectiveness. Finally, the results of numerous researches show that KM affects
organisational performance in a positive manner, but this relationship is very difficult to prove.
Researchers often imply this positive effect of knowledge management on organisational
performance. However, the researches that empirically prove the existing link are very rare. The aim of
this paper is to present a different knowledge management maturity model and to explain and test the
hypothesis about impact of knowledge management practices on organisational performance. The
literature review shows there is a great number of critical success factors for KM. This paper
contributes to the knowledge management research field through understanding those factors, their
interrelation and the role of information technology in achieving a better business performance.
3. LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT
The methodology of measuring knowledge management maturity is complex. By combining a set of
critical success factors with a set of measurable knowledge management factors, an intersection was
made to define a new set of measurable key elements of KM. Those elements were united into three
categories:
1. Information technology (the ability of technology to capture knowledge and usage of
information systems),
2. Organisation (people, organisational climate and processes) and
3. Knowledge (knowledge accumulation, utilisation, sharing practices and knowledge ownership
identification).
The understanding of these knowledge management factors, acts as a basis in determining the type
of knowledge management strategies and initiatives for an organisation. The review of literature used
to develop the questionnaire is stated below:
4. INFORMATION TECHNOLOGY
The value that knowledge management adds lies in increasing individual, team and or-ganisational
efficiency through the use of knowledge management tools (information technology).
192
Dr. M.A Shakila Banu and K. Kalaivani "The Impact of Knowledge Management on Organisational
Performance"- (ICAM 2016)
- International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 191-199 © IAEME Publication
Capturing Knowledge: the higher the level of capturing knowledge (explicit or tacit) with
information technology tools, the better the KM result;
Usage of IT Tools: the higher the quality of tools, quality of information, user satisfaction,
usage and accessibility, the greater the KM effect on organisational performance.
5. ORGANISATION
Organizational culture has a great contribution to knowledge management due to the fact that culture
determines the basic beliefs, values, and norms regarding the why and how of knowledge generation,
sharing, and utilization in an organisation. An organization can achieve a competitive edge by creating
and using knowledge about its’ processes and by integrating its’ knowledge into business processes.
People and Organisational Climate: the KM success relies heavily upon the trust, creativity,
team work and collaboration among employees
Processes: the integration of the KM activities into organisational processes has a positive
effect on KM results.
6. KNOWLEDGE
Successful knowledge management applies a set of approaches to organisational knowledge including
its accumulation, utilisation, sharing and ownership.
Accumulation: the higher the effectiveness of knowledge accumulation (internal, external;
through internalisation or externalisation) in an organisation, the greater the KM effect.
Utilisation: the higher the effectiveness of utilising the (existing) knowledge in an
organisation, the better the KM result;
Sharing: the improvement of sharing of knowledge (formal or informal) effects the KM
positively;
Ownership: the better the accessibility of knowledge, the greater the KM success.
7. ELEMENTS OF ORGANISATIONAL PERFORMANCE
When assessing the relationship between knowledge management and organisational performance, it is
important to know that the results depend on the used research methodology. Organisational
performance alone could be gauged in many different ways, with financial or non-financial indicators.
There are several approaches to organisational performance measurement which include different
stakeholders’ perspectives. The Balanced Scorecard (BSC) is a performance management tool for
measuring whether small-scale operational activities of a company are aligned with its large-scale
objectives in terms of vision and strategy and includes four perspectives: financial, customer, internal
process and innovation and learning perspective.
The financial perspective examines if company’s implementation and execution of its strategy
contributes to bottom-line improvement. Some of the commonly used financial measures are economic
value added, revenue growth, costs, profit margins, cash flow, net operating income etc. The customer
perspective defines the value proposition that an organisation will apply to satisfy customers and
generate more sales to the most desired customer groups.
The measures should cover both the value that is de-livered to the customer which may involve
time, quality, performance and service, and the outcomes that arise as a result of this value proposition,
such as customer satisfaction and market share. The internal process perspective focuses on all the
activities and key processes required in order for the company to excel at providing the value expected
by the customers. The clusters for the internal process perspective are operations management (by
improving asset utilisation, supply chain management), customer management (by expanding and
deepening relations), innovation (by new products and services) and regulatory & social (by
establishing good relations with external stakeholders). The innovation and learning perspective
focuses on the intangible assets of an organisation, mainly on the internal skills and capabilities that are
required to support the value-creating internal processes. In addition to these four perspectives, some
researchers include the supplier perspective, which is also important in assessing non-financial
performance.
193
Dr. M.A Shakila Banu and K. Kalaivani "The Impact of Knowledge Management on Organisational
Performance"- (ICAM 2016)
- International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 191-199 © IAEME Publication
8. RESEARCH PROBLEM
The Problem of the study is to ascertain the advantages obtained by implementing KM and to study the
effectiveness of KM implemented. Further the study tries to measure any bottlenecks that may exists
and suggest measures for improvement.
8.1. Research Objectives
To investigate and prove the existence of a positive impact of knowledge management on
organisational performance.
To critically evaluate the impact of KM implementation in selected organization.
To identify the benefits obtained after implementation of KM.
To identify any specific areas of concerns and suggest solutions for the same.
Conceptual Research Model
9. RESEARCH HYPOTHESIS
According to literature and our experience from business practice, we believe that strong
relations between organisational elements, information technology and knowledge management
can be established. Findings from literature and our assumptions are systemized and structured
in a form of hypotheses and examined by the empirical research.
Therefore, we propose the following hypothesis
H1: Higher the External information more will be the knowledge management.
H2: More in relay of information price more will be the knowledge management.
H3: Higher t he s ha r e of information more will be the kno wledge management.
H4: Higher t he s t o r e of information more will be the infor mat io n technology.
H5: Higher t he support of information mo r e will be the info r mat io n technology.
H6: Higher t he in no va t io n and reward mo r e will be the organizational performance.
H7: Higher the motivation for formal an informal education more will be the organizational
performance.
H8: Higher the unit of organization more will be the organizational performance.
H9: Higher the knowledge management more will be the information technology.
H10: Higher the information technology more will be the organizational performance.
H11: Higher the knowledge management more will be the organizational performance.
194
Dr. M.A Shakila Banu and K. Kalaivani "The Impact of Knowledge Management on Organisational
Performance"- (ICAM 2016)
- International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 191-199 © IAEME Publication
10. RESEARCH METHODOLGY
10.1. Research Design
A research design is considered as the framework or plan for the study that guides as well as helps the
data collection and analysis of data. The research design may exploratory, descriptive and experimental
for the view of the consumer were collected so as to some strategies. A descriptive study is to obtain a
complete and accurate description of the situation. Descriptive research for the study was based on
clear cut objectives and formal questionnaire.
10.2. Nature of Data
The sources of primary and secondary data were used for the collection of information for the study.
Primary data was collected through questionnaire and secondary data from Articles have been sourced
from magazines and journals dealing with current issues in KM. Internet resources, research
publications & text books related to KM have been a major secondary source for the extraction of
the expert’s opinion.
10.3. Research Instrument
The questionnaire was based on previous findings reported in literature that is reviewed in section
2. It included 23 questions on knowledge management and 16 questions on organisational
performance. Questions about knowledge management are divided into 3 parts knowledge,
information technology and organisation.
10.4. Variables Measured
The methodology of measuring knowledge management maturity is complex. By combining a set of
critical success factors with a set of measurable knowledge management factors, an intersection was
made to define a new set of measurable key elements of KM. Those elements were united into three
categories:
1. Information technology (the ability of technology to capture knowledge and usage of
information systems),
2. Organisation (people, organisational climate and processes)
3. Knowledge (knowledge accumulation, utilisation, sharing practices and knowledge
ownership identification).
4. Organisational Performance When assessing the relationship between knowledge
management and organisational performance, it is important to know that the results depend
on the used research. Organisational performance alone could be gauged in many different
ways, with financial or non-financial indicators.
10.5. Population and Sample Size
The total populations of the study in the selected organisation are the 200. A Sample of 52 employees
was drawn. Simple random sampling was adopted. Besides, the study had employed Partial Least
Square – Path Modelling. (PLS-PM).
10.6. Limitations
It is possible that this research may not have captured all those factors even though an extensive
literature review was conducted and experts in the area were consulted for inputs. This study is limited
to the users of ERP in selected organisation. Some of the benefits of KM implementation cannot be
directly measured and are visible only in the long run
10.7. Model Construction
Four constructs were formed in the research: First, information technology (IT), which
determines the usage, qualit y and benefits of IT tools for knowledge management. Second,
organisation (OR) that represents a human perspective of organisation and processes. Third,
knowledge (KN) that covers accumulation, utilisation, sharing practices, and knowledge
195
Dr. M.A Shakila Banu and K. Kalaivani "The Impact of Knowledge Management on Organisational
Performance"- (ICAM 2016)
- International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 191-199 © IAEME Publication
ownership identification. Fourth, organisational performance (OP) is defined as a construct
composed of financial and non-financial indicators.
11. DATA ANALYSIS AND RESULTS
Table 1: Reliability
Construct Composite Reliability Cronbach Alpha
KM 0.502973 0.635442
EXTERNAL 0.504874 0.728045
RELAY 0.706128 0.548610
SHARE 0.670020 0.480000
IT 0.702606 0.556955
SUPPORT 0.731523 0.513587
STORE 0.706686 0.535586
ORG 0.507070 0.544614
INNOVATE 0.502973 0.548610
MOTIVE 0.504874 0.648530
UNIT 0.504718 0.490500
From the above table it is found that the collected sample have achieved reliability and cronbach Alpha
at 5% significant level and more respectively.
Table 3: Construct Level correlation of Research Model
Shar supp Inno
Km external Relay It Store Org motive Unit
e ort vate
Km 1.000
External 0.113 1.000
Relay 0.323 0.165 1.000
Share 0.303 0.175 0.240 1.000
It 0.928 0.076 0.100 0.022 1.000
Support 0.365 0.172 0.067 0.235 0.468 1.000
Store 0.496 0.047 0.284 0.602 0.335 0.041 1.000
Org 0.792 0.063 0.017 0.158 0.915 0.299 0.005 1.000
1.00
Innovate 0.675 0.184 0.034 0.126 0.809 0.467 0.224 0.736
0
0.44
Motive 0.527 0.144 0.140 0.258 0.627 0.380 0.029 0.626 1.000
6
0.11
Unit 0.277 0.183 0.078 0.029 0.279 0.236 0.268 0.501 0.045 1.000
8
From the above table, it is very clear that the selected company had shown the highly positive
correlation between the Knowledge Management with Information technology, Organitational Unit,
Innovation and Motives and share of information with store of information. It shows moderate positive
correlation between Knowledge Management with relay, share, and support, store of Information and
Information technology with support of Information. It also shows low positive correlation between
196
Dr. M.A Shakila Banu and K. Kalaivani "The Impact of Knowledge Management on Organisational
Performance"- (ICAM 2016)
- International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 191-199 © IAEME Publication
external of information with relay, knowledge management, share, Information technology, support,
store of information, organitational unit, innovation, motivation and organitational unit with knowledge
management, motivation.
Structural Model - Bootstrap
Entire Mean
Standard
Sample of T-Statistic
error
estimate Subsamples
external->km 0.1250 0.1568 0.0969 1.2906
Relay->km 0.2930 0.3142 0.1052 2.7859
Share->km 0.2110 0.2008 0.1141 1.8491
support->it 0.1150 0.1220 0.0494 2.3280
Store->it -0.1330 -0.1358 0.0477 -2.7858
km->it 0.9520 0.9482 0.0468 20.3216
km->Org -0.0010 -0.0010 0.0000 0.0000
it->Org 0.0010 0.0011 0.0003 3.4768
innovate->Org 0.6430 0.6533 0.0629 10.2223
motive->Org 0.3660 0.3663 0.0380 9.6417
Unit->Org 0.5930 0.6027 0.0530 11.1988
12. HYPOTHESIS RESULTS
Since the path linking external information to Knowledge Management was found to be significant at
0.05 level (beta=0.125, t=1.291), external information has significant effect on Knowledge
Management (km). This provided support for H1. Also, this finding did support literature review.
Since the path linking relay to Knowledge Management was found to be significant at 0.05 level
(beta=0.293, t=2.786), relay on information has significant effect on Knowledge Management (km).
This provided support for H2. Also, this finding did support literature review.
Since the path linking share to Knowledge Management was found to be significant at 0.05 level
(beta=0.211, t=1.849), indicating share has significant effect on Knowledge Management (km). This
provided support for H3. Also, this finding did support literature review.
Since the path linking support to IT was found to be significant at 0.05 level (beta=0.115, t=2.328),
support of information has significant effect on Information Technology (IT). This provided support
for H4. Also, this finding did support literature review.
197
Dr. M.A Shakila Banu and K. Kalaivani "The Impact of Knowledge Management on Organisational
Performance"- (ICAM 2016)
- International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 191-199 © IAEME Publication
Figure 2: PLS-Path Analysis of Research Model
Since the path linking store to IT was found to be significant at 0.05 level (beta=-0.133, t=-2.786),
indicating store of information has no significant effect on Information Technology). This provided
support for H5. Also, this finding did support literature review.
Since the path linking Innovation to organitional performance was found to be significant at 0.05
level (beta=0.643, t=2.223), indicating Organitional Performance (org) has significant effect on
Innovation. This provided support for H6. Also, this finding did support literature review.
Since the path linking Motive to education to Organizational Performance was found to be
significant at 0.05 level (beta=0.366, t=3.326), indicating Organizational Performance has significant
effect on Motive to education. This provided support for H7. Also, this finding did support literature
review.
Since the path linking Organizational unit to Organizational performance was found to be
significant at 0.05 level (beta=0.593, t=0.561), indicating Organizational unit has significant effect on
Organizational performance. This provided support for H8. Also, this finding did support literature
review.
Since the path linking Knowledge Management to Information Technology was found to be
significant at 0.05 level (beta=0.952, t=0.472), Knowledge Management (km) has significant effect on
Information Technology (IT). This provided support for H9. Also, this finding did support literature
review.
Since the path linking Information Technology to organitional performance was found to be
significant at 0.05 level (beta=0.001, t=3.477), indicating Information Technology has significant effect
on organitional performance. This provided support for H10. Also, this finding did support literature
review.
Since the path linking Knowledge Management to organitional performance was found to be
significant at 0.05 level (beta=-0.001, t=3.493), indicating Knowledge Management has significant
effect on organitional performance. This provided support for H11. Also, this finding did support
literature review.
13. FINDINGS
A direct result of this research is also a newly defined knowledge management maturity model that
consists of three empirically tested constructs. The new conceptual model consists of information
technology, organisational elements and knowledge.Second, this empirical research proved that KM
heavily relies on technology. However, business practice shows that many organisations have
experienced difficulties in effectively using KM technologies. In order to have a positive impact on
elements of knowledge, information technology needs to be introduced through a set of
organisational changes. In practice it means that introducing information technology is successful and
198
Dr. M.A Shakila Banu and K. Kalaivani "The Impact of Knowledge Management on Organisational
Performance"- (ICAM 2016)
- International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 191-199 © IAEME Publication
has a positive impact on knowledge management practices only if it is backed up by changes in
people, organisational climate and organisational processes.
Organisational change helps an organisation to optimise processes and define process oriented
struc- ture; in that case KM can be adopted correctly within the organisation. Effective KM cannot
be implemented without a significant behavioural and cultural change. There should be a strong
culture, trust and transparency in all areas of the organisation. Besides, the cultural elements, which
distinguish organisations from each other, are found to be related to KM efficiency. It was also
discovered that knowledge management practices have a positive impact on organisational
performance.
14. CONCLUSION
We conclude that this paper presents three main components important lights some of the issues
raised by IT implementation to improve KM. The codification of knowledge in information systems,
databases and knowledge repositories does not guarantee efficient KM, but has a potential to
influence it in a positive way. It is important to notice that IT does not have a direct influence on
knowledge, but an indirect one through organisational elements as an enabler of a better collaboration
among people in the organisation, motivation of people in the organisation and the process view of
the organisation.
REFERENCES
[1] Anantatmula, V. & Kanungo, S. (2006). Structuring the underlying relations among the
knowledge manage- ment outcomes. Journal of Knowledge Management, 10 (4), 25–42.
[2] Artail, H. A. (2006). Application of KM measures to the impact of a specialized
groupware system on corpo- rate productivity and operations. Information &
Management, 43 (4), 551–564.
[3] Bagozzi, R. P. & Yi, Y. (1988). On the Evaluation of Structural Equation Models.
Journal of the Academy of Marketing Science, 16 (1), 74–94.
[4] Benbya, H., Passiante, G. & Belbaly, N.A. (2004). Corporate portal: a tool for
knowledge management syn- chronization. International Journal of Information
Management, 24, 201-220.
[5] Carmeli & Tishler, A. (2004). The Relationships between Intangible Organizational
Elements and Organiza- tional Performance. Strategic Management Journal, 25, 1257–
1278.
[6] Chen, C. & Huang, J. (2007). How organizational climate and structure affect knowledge
management – The social interaction perspective. International Journal of Information
Management, 27, 104-118.
[7] Chen, M., Huang, M. & Cheng, Y. (2009). Measuring knowledge management
performance using a competi- tive perspective: An empirical study. Expert Systems with
Applications, (36), 8449–8459.
199
Dr. M.A Shakila Banu and K. Kalaivani "The Impact of Knowledge Management on Organisational
Performance"- (ICAM 2016)
nguon tai.lieu . vn