knowledge worker (Drucker, 1999; Drucker, 2014). ⢠However, the decision-making process among knowledge workers in SMEs is not well researched as ...
2016 International Conference on Social Sciences and Humanities (SOSHUM 2016)
Decision Centric Knowledge Management System for Manufacturing SMEs: A Conceptual Framework
Presenter:
Nurshahida Binti Muhamad Razali GRA, Faculty of Business and Entrepreneurship, Universiti Malaysia Kelantan Abdullah Al Mamun Senior Lecturer, Faculty of Business and Entrepreneurship, Universiti Malaysia Kelantan Mohd Nazri Bin Zakaria Senior Lecturer, Faculty of Business and Entrepreneurship, Universiti Malaysia Kelantan C. A. Malarvizhi Senior Lecturer, Faculty of Management, Multimedia University, Malaysia Noorshella Bt Che Nawi Senior Lecturer, Faculty of Business and Entrepreneurship, Universiti Malaysia Kelantan
Background • Small and medium enterprises (SMEs) are the big contributor towards economic growth in developing countries including Malaysian SMEs (Aziz & Samad, 2016) • Today’s compeEEve global business environment has forced Malaysian SMEs to build an innovaEve and producEve workforce. • However, as menEoned in the 11th Malaysian Plan, SMEs are sEll faced with barriers in growing their organizaEons, which consists of low producEvity, low skilled workers, lack of innovaEon and compeEEveness as well as problem solving(Muhammad et al., 2010; Eleventh Malaysia Plan, 2015).
• It is therefore crucial to examine the decision-making process to enhance producEvity among Malaysian manufacturing SMEs.
Introduction • Knowledge workers and their producEvity has become the most valuable asset in the 21st century in both business and non-business enEEes. • Decision-making is an integral part of the business process and one of the main responsibiliEes of the knowledge worker (Drucker, 1999; Drucker, 2014). • However, the decision-making process among knowledge workers in SMEs is not well researched as studies are mostly concerned with the decision-making process of large companies (Chield & Hsieh, 2014).
Introduction • This study therefore intends to design a framework to improve our knowledge and understanding of the decision-making process among knowledge workers in manufacturing SMEs in Malaysia. • Moreover, this study also intends to idenEfy the relaEonship between the knowledge worker and the knowledge management system, and the way they interact to influence decision-making. • Knowledge management system(KMS) is a tool or technology used in knowledge management acEviEes in organizaEons and it is needed to facilitate creaEng, sharing, and transferring of knowledge (Alavi & Leidner, 2005). By using KMS, knowledge workers can access the informaEon that they need from anywhere. • Knowledge management creates the interacEon between technologies, techniques, and people (BhaY, 2001).
Decision Making • Decision-making is one of the most important acEviEes engaged in by an owner or manager in all types of organizaEons at any level of making a decision (Kormaz et al., 2006). • Decision-making is related to a set of values or possible alternaEve acEons. Decision-making is the acEvity of choosing issues that need aYenEon, seZng goals, defining appropriate courses of acEon, and choosing the right alternaEve(MalakooE, 2012). • Davenport, Long, and Beers (1998), knowledge is a valuable form of informaEon that can be accessed when making a decision. Aligned with the 11th Malaysia Plan, the government has taken iniEaEves such as to increase funds for SMEs to expand their business to internaEonal markets. • It is important for Malaysian SMEs to accomplish the 11th Malaysia Plan by managing their decisions effecEvely, since the strategy process is involved in decisions, which affect the organizaEon’s strategic posiEon.
Knowledge Management • Knowledge is vital to success in the global knowledge economy. • Knowledge can be defined from different perspecEves, which include the state of mind, an object, a process, a condiEon of having access to informaEon or capabiliEes (Alavi & Leidner, 2005). • Excellent organizaEons can acquire knowledge contained in their organizaEons and use it in their operaEons; producEon and services will have more advantage compared to their compeEtors (Wong & Aspinwall (2005).
• Obviously, a company that has good knowledge capabiliEes is more innovaEve and has beYer performance (Darroch, 2005). • This process is very important for SMEs to enhance new knowledge, disseminate, and uElize it effecEvely. Thus, with effecEve knowledge, SMEs will be able to generate new ideas to create innovaEve products, to get ahead of other compeEtors, and to be more producEve.
Knowledge Worker • A knowledge worker is someone who works with either tacit or explicit knowledge. Knowledge workers conceive products, plan markeEng programs, and generate strategies. • The output of a knowledge worker does not only depend on his/ her ability to create, disseminate, and share knowledge but it also depends on how knowledge is organized within the organizaEon and whether he/she has the right environment (Amar, 2000). • Hence, in order for an organizaEon to achieve good decisionmaking, it needs to create a system to support interacEon and knowledge sharing among the knowledge workers.
Knowledge Worker • The knowledge worker can be measured based on his/her tacit knowledge. § Tacit knowledge is an important component in managing knowledge that includes the knowledge worker and results in the achievement of higher than average returns (Harlow, 2008)
§ In addiEon, Harlow (2008) also found that there is a posiEve relaEonship between tacit knowledge and firm outcome. • Given these reasons, this study has focused on the tacit knowledge of a knowledge worker including cogniEve, technical, and social skills.
Knowledge Worker • The finding by Harlow (2008) noted that cogni(ve skills play an integral role in the context of strategic decision-making. Cogni(ve • The cogni(ve aspect of tacit knowledge is a sort of self-concep(on that employees use to perform a specific task. The dimensions of cogni(ve skills include self-mo(va(on and self-organiza(on Skill (Leonard & Insch, 2005). • Technical knowledge is necessary in performing a par(cular job. Technical • Research by Holtshouse (2010) found that the technical skill is the second point of interest and a major path for workers to immediately add value to their companies. Skill • Andreeva and Kianto (2012) clarified that the technical characteris(c is the main element of knowledge. Social Skill
• Leonard and Insch (2005) defined social skills as how people interact with one another in an organiza(on about advice or informa(on needed to perform specific tasks. • Stronger task-related social interac(ons can be a source of higher performance (Leonard & Insch, 2005).
Knowledge Management System • Knowledge management systems are tools that funcEon to simplify the flow of knowledge. • Alavi and Leidner (2005), which noted that the objecEve of knowledge management systems is to build, share, and use knowledge in an organizaEon. • Lin and Huang (2008) knowledge management systems are tools that maintain organizaEon history, experience, and experEse of the people in an organizaEon. • Indeed, Manufacturing SMEs need to adopt knowledge management systems to avoid valuable knowledge loss. • This study focused on three key factors of knowledge management systems, which are informaEon technology, human resources, and knowledge sharing.
Knowledge Management System Informa(on Technology
• The role of technology is a knowledge enabler. Informa(on Technology supports employees in fast searching, assessing, and finding informa(on (Wong & Aspinwall, 2005). • In this digital era, it is crucial for organiza(ons to adopt new technology to become more compe((ve. As stated by Carneiro (2000), this system will ease the knowledge management implementa(on within an organiza(on.
• Human Resource Management is the process of acquiring, training, appraising, and compensa(ng employees and aUending to their labor rela(on, health and safety, and fairness concerns. Human Resource Management • Mohammed and Jalal (2011) argued that human beings are the most valuable asset to the organiza(on and their skills and exper(se enable the full u(liza(on of all the available tools, assets, and informa(on system to create knowledge.
Knowledge Management System
Knowledge Sharing
• Essen(ally, knowledge sharing is the process when a person is willing to convert his or her knowledge into an understandable form and make it available to be assessed by other people within the organiza(on. • The fulfillment of the importance of knowledge sharing encourages every person in the organiza(on to share his/her knowledge without any barriers (Alavi & Leidner, 2005).
Proposition 1 Ø It is the responsibility of knowledge worker to make or at least involve in decision-making process in appropriate situaEon in terms of quality and quanEty considering the Eme and respect of cost (Drucker, 2014) Ø The study by Milkman, Chugh and Bazerman (2009) which pointed out that knowledge worker primarily delivered a good decision. Ø Besides, knowledge workers also play crucial roles because their unique skills are able to fit strategies in making a decision (Kappes & Thomas, 1993). Ø By employing tacit knowledge during strategy session, it will result in a beYer decision (Brockmann & Anthony, 2002).
Proposition 1 previous study by Kach, Azadegan and Wagner (2015) have shown that highlevel knowledge worker have a posiEve relaEonship between new product development. Therefore, the first proposiEon is: P1: Knowledge worker has a significant rela(onship with decision-making.
Knowledge worker
Decision Making
Proposition 2 Ø As traces by Lin and Huang (2008), knowledge management systems are the tools that maintain organizaEon history, experience and experEse term people in organizaEon. Ø By implemenEng knowledge management system, knowledge workers are able to store their knowledge or informaEon in knowledge management system at the same Eme can retrieved it back (Alavi & Leidner, 2001) Ø Empirical study by Reinhardt, Schmidt, Sloep and Drachsler (2011) have shown that the knowledge worker roles helps to differenEate between the different roles that people play in creaEng, sharing, and managing knowledge in and between organizaEons. Thus: P2: Knowledge worker have significant rela(onship with knowledge management system. Knowledge Worker
Knowledge Management System
Proposition 3 Ø By updaEng the current technology to effecEve and efficient technology, organizaEon will keep success and compeEEve as well as improved decision-making (Mohammed & Jalal, 2011). Ø Alavi and Leidner (2005) also pointed that the usage of knowledge management systems is the highest rate in decision-making. Ø Koh and Gunasekaran (2006) also argued that the role of technology is converts data to informaEon and transforms informaEon to knowledge so that it can be devised and used in the decision-making process. Ø Moreover, the usage of knowledge management system to find and retrieve appropriate knowledge also enhances decision maker to improve decision-making process (Wang & Yang, 2016)
Proposition 3 Ø Mohammed and Jalal (2011) has found that informaEon technology is posiEvely related to the decision-making process. Thus: P3: Knowledge management system have significant rela(onship with decision making.
Knowledge Management System
Decision Making
Proposition 4 Ø Knowledge management system is needed to facilitate the knowledge management process within organizaEon (Alavi & Leidner, 2005; Salina & Fadzilah, 2011) Ø Moreover, Boulesnane and Bouzidi (2013) have menEoned that the informaEon technology or knowledge management system has been found as a mediator toward decision making. Ø This is also supported by BhaY (2001) who menEoned that the successful of knowledge management is the combinaEon of people, technology and technique.Thus: P4: Knowledge management system mediates the rela(onship between knowledge worker and decision-making. Knowledge Worker
Knowledge Management System
Decision Making
Research Framework Knowledge Management System
Knowledge
Decision
Worker
Making Figure 1: Conceptual Framework
Conclusion • Earlier studies, as noted above, have highlighted the crucial role of knowledge workers in making effecEve business decisions for SMEs. • This study therefore hypothesized that knowledge management system is a significant mediator between knowledge worker and decision-making among Malaysian manufacturing SMEs. • The purposed model will have an impact on future research and managerial pracEce.
Certificate of Presentation This is to certify that
Nurshahida Binti Mohamad Razali ............................................................................................................ had presented a paper in the 2016 International Conference on Social Sciences and Humanities (SOSHUM 2016) held on 19th – 21st April 2016 Kota Kinabalu, Sabah, Malaysia
Assoc. Prof. Dr. Zuwairie bin Ibrahim Conference Chair
Dr Mohd Azlishah bin Othman President MALTESAS
THANK YOU
