«Published Annually Vol. 6, No. 1 ISBN 978-0-979-7593-3-8 CONFERENCE PROCEEDINGS Sawyer School of Business, Suffolk University, Boston, Massachusetts ...»
Williamson, OE (2000). The New Intitutional Economics: Taking Stock, Looking Ahead.Journal of Economic Literature, 38 (3), 595-613.
Wright, MI (2005). Strategy in Emerging Economies research: Challenging conventional wisdom. Journal of Management Studies, 42, 1-33.
Conference papers © Knowledge Globalization Institute, Pune, India, 2012 Appendix Tables Table 1. Fuente: (Forbes Staff, 2011).
Table 2. Fuente: (Forbes Staff, 2011).
Conference papers © Knowledge Globalization Institute, Pune, India, 2012 GRAPHICS CHART 1. Source: (América Economía, 2010).
FIGURE 2. Source: (Forbes Staff, 2011).
Conference papers © Knowledge Globalization Institute, Pune, India, 2012 Level of Knowledge Management Practices Adoption in Auto component Small & Medium Sized Enterprises
PURPOSE: Knowledge is an intellectual asset for each organization. The organization must know how to utilize this intellectual asset which should play a crucial role in the current ever-challenging and aggressive business environment. Knowledge Management (KM), the systematic management of organizational knowledge - a strategic corporate asset not to be taken lightly; can thus be created, transferred, shared and, utilized for greater organizational competitiveness, innovativeness and, productivity. The discipline of such knowledge management is now a well-established discipline in many large organizations and has attracted amongst Small & Medium Enterprises (SMEs). Therefore, the reason behind this research is to understand extent of KM practices followed among managerial & non-managerial levels in Auto Component SMEs of Pune Region. The KM dimensions such as Culture; Leadership; Employee participation; Rewarding Schemes and Information and Communications Technology (ICT) are investigated with knowledge creation; knowledge storage & knowledge sharing of KM processes among SMEs.
MEHODOLOGY / APPROACH: The research method is an expost facto based on the two hypotheses. Among 325 Auto component SMEs 20% that is 66 SMEs were taken as a random sample for the study and two different questionnaires were distributed to managerial and nonmanagerial levels.
RESULTS & FINDINGS: SMEs with the help of this study could apply the KM dimensions and KM processes as a guideline in achieving successful KM implementation. It is anticipated that these dimensions could help SMEs to better organize their KM initiatives, as well as to assist in producing a better responsiveness and highly praised knowledgeable society. At managerial level it aims to understand the strategic initiatives of KM. At Non-managerial level, this research aims to examine the extent of KM Infrastructure dimensions such as culture, leadership, employee participation, Information and Communications Technology (ICT) and KM processes such as knowledge acquisition & creation, knowledge storage & preservation and knowledge sharing followed in SMEs of Pune Region.
These findings appear that SMEs do practice knowledge management both in managerial and non-managerial level but in an unstructured and informal way because they do not have a proper strategy for KM implementation. Extent to such practices is seen limited in this sector. In managerial level, if the top priority is given to KM and if there is a clear and strong commitment to KM initiatives by the executives then those will be significantly different from others. In non-managerial level, role of leadership and knowledge sharing activities are more influenced in KM Practice. The influence of KM dimensions on the KM process and its responsiveness of knowledge entities could further drive for future research.
Keywords - Knowledge Management dimensions, Knowledge Management Process, Small and Medium Enterprises,
‘We are entering (or have entered) the knowledge society in which the basic economic resource … is knowledge … and where the knowledge worker will play a central role …’ (Drucker 1993).
Knowledge is an intellectual asset for each organization. The organization must know how to utilize this intellectual asset to improve their business productivity and reduce costs. To get the most value from a company's intellectual assets, KM practitioners maintain that knowledge must be shared and serve as the foundation for collaboration. Leveraging this knowledge within the organization gives a competitive edge.
Intellectual capital, or employee knowledge and experience, is a vital corporate asset. KM seeks to best use that asset through knowledge sharing and documentation. An increasing amount of studies are being conducted and published examining primary issues in relation to knowledge management practice and the element of human resource that connected to it (Polanyi, 1966; Nonaka & Takeuchi, 1995;
Davenport, 1998, Zack, 1999; Prusak, 2000; Darrow, 2002). Consequently, the role of knowledge in organizational survival is considered as crucial factor in many organizations who understood the demand of knowledge economy. In the same way (Davenport and Prusak 1998) research study found that knowledge is the only source of sustainable competitive advantage and (Senge 1998) states that an enterprise market value is increasingly dictated by its intellectual capital.
Conference papers © Knowledge Globalization Institute, Pune, India, 2012 Knowledge management is a key concept in today’s business world. Evidence of this fact is apparent if one only peruses the current business, management, and organization literature. On the surface, it looks as if knowledge management just appeared toward the end of the 1990’s.
Some regard knowledge management as a business fad or craze (Swan, Newell, Scarbrough, and Hislop, 1999, p. 275), but a closer examination of the concept reveals that there has been considerable thought and research into it, and many of the world’s mos t successful corporations, businesses, and organizations are investing considerable resources in this enterprise (Alvesson and Karreman, 2001, p. 995).
Knowledge is increasing recognized as a key business imperative and has positive impacts for organizations in terms of efficiencies, effectiveness and competitiveness (Alavi & Leidner 2001, Grover & Davenport 2001). While there are many reasons for pursuing knowledge management (KM), many organizations contend that KM can lead to significant improvements in current operational performance, future capacity and adaptability to changing customers’ needs and market conditions (Beckman 1997, Cross & Baird 2000, Earl 2001). Many of the practices set up in organizations can be broadly construed as contributing to the knowledge agenda. Knowledge teams and knowledge leaders are emerging, but very few organizations are applying knowledge management throughout their organizations (Skyrme, 1999, p. 109).
Small and Medium-Size Enterprises (SMEs) are often regarded as the backbone of industrial development and important source of economic growth in India. The Indian auto component industry is very small by global standards and heavily depends on foreign sources of technology (Singh et al 2007). The turnover of India’s auto component industry is lesser than the individual annual turnover o f a number of global auto component manufacturers (Visteon had global revenue of US$11.7 bn in 2007 as compared to the India’s overall US$10 bn in 2007). SMEs are often regarded as important innovators in the economy. It is increasingly important for small business to manage their collective intellectual asset (Frey 2001). Therefore, KM is extremely important for the Indian economy. In today’s knowledge era it becomes not only for larger organizations but it is a need also for Small & medium Enterprises to practice knowledge management process and the knowledge that is available within the organization are to be managed to improve organization efficiency. Such an environment and culture will deliberately and systematically help to share information and knowledge with each other which will reduce error, save valuable planning time, and better individual and organizational performance.
This research explores the above question to understand the level of Knowledge Management followed in SMEs. It makes a study of how the Knowledge Management process and practices is being adopted in the managerial & non-managerial levels of SMEs. At managerial level it aims to understand the strategic initiatives of KM. At Non-managerial level, this research aims to examine the extent of the above said KM Infrastructure dimensions such as culture, leadership, employee participation, Information and Communications Technology (ICT) and KM processes such as knowledge acquisition & creation, knowledge storage & preservation and knowledge sharing followed.
Knowledge management and knowledge is difficult to describe as concepts and practices evolved quickly through the I990s. Two main issues are evident in this evolving pathway i) knowledge is a critical resource, rather than land, machines, or capital (Drucker, 1993), and ii) organizations generally poorly managed it due to lack of understanding. If more attention were paid to creating, providing, sharing, using, and protecting knowledge, then organizational performance would improve (Earle, 2001).
According to (Ouintas et al. 1997), “Through an appropriate management process, KM is to discover, develop, utilize, deliver, and absorb knowledge in and out the organization to meet current and future needs”. (Allee 1997, Davenport 1998), Alavi and Leidner 2001) defines knowledge management as “KM is managing the corporation’s knowledge through a systematically and organizationally specified process for acquiring, organizing, sustaining, applying, sharing and renewing both the tacit and explicit knowledge of employees to enhance organizational performance and create value”. KM is predominantly becoming an essential and significant component in business strategy (Iyer and Ravindran, 2009) since the value of workers and organizational data have become more critical to the organization’s outcomes and competitiveness. As postulated by (Choong and Wong 2010), KM acts as a means by which the organization’s core competencies can be focused and developed. Therefore, KM should not be viewed as just a management ‘fad’ since researchers like (Chen and Hatzakis 2008) interpreted KM as layers of assortment that can be broken down into norms, practices and, technology that covers most of the aspect of enterprise’s core business process in increasing organizational effectiveness.
KM in organizations should be seen as the process of critically managing knowledge to meet existing needs, to identify and exploit existing and acquired knowledge assets and artifacts and to develop new knowledge in order to take advantage of new opportunities and challenges (Quintas et al., 1997). In holistic terms, KM must be seen as a strategy to manage organizational knowledge assets to support management decision making to enhance competitiveness, and to increase capacity for creativity and innovation (Zyngier et al., 2004).
Like large, SMEs have a set of distinctive needs that call for the deployment of a KM system for generating, sharing, and refining organizational knowledge. On the other hand, in practice, SMEs are still very reluctant to take KM principles into their strategic thinking and daily routines (McAdam & Reid, (2001); Nunes et al., (2006). SMEs usually lack resources such as land, manpower, and capital. Therefore, SMEs must do more with fewer resources (Desouza & Awazu, (2006)). SMEs need to be innovative in working in order to manage knowledge with limited resources (Zanjani et al., (2008)). Even though SMEs in developing countries, in comparison with large enterprises are on back pace for the accessibility of resources to manage knowledge, SMEs do have certain advantages in KM practice.
Conference papers © Knowledge Globalization Institute, Pune, India, 2012 KM Dimensions Culture An essential element of success in knowledge management is creating an organizational culture that can motivate, support and encourage capture, create, share, codify and reuse of knowledge at an individual, group and organizational levels. An organization’s culture provides order and structure for knowledge management activities. It has been identified that the biggest challenge in knowledge management is not a technical one but a cultural one (Forbes, 1997; Koudsi, 2000). Knowledge management is a radical innovation or changes to an organization’s operations, and thus, is to be regarded as an intervention on the organization’s culture (Gooijer, 2000). Larson (1999) insisted that it is important to first consider the company’s cultural environment before implementing knowledge management. Hence, the significance of a culture is thereby recognized as a major contributor to KM as it represents a major source of competitive advantage for organizations especially SMEs in improving their business performance (Wong, 2005), thereby increasing innovation, creativity and providing more opportunities for SMEs to compete.
Effective employee participation brings promising employee satisfaction, quality improvement and productivity enhancement in SMEs (Pun et al., 2001). Hence, it is unquestionable that employee participation does play crucial in achieving KM initiative. By functioning in a knowledgeintensive enterprise, employees are able to apply their diverse skills and experiences in work processes and problem solving matters. With this, it is essential for all employees within an organization, especially SME whereby agility and responsiveness at all levels are to be considered as sources for competitive advantage (McAdam and Reid, 2001). Therefore, encouraging participation is important in fostering the spirit of teamwork among employees to ensure that accurate information is able to reach the right individual at the exact time, which is the true goal of any KM initiative within SMEs. This will inevitably promote employee participation in promoting a culture of sharing (Chin et al., 2008), not only knowledge but essentially crucial knowledge to further increase organizational performance.