An Emperical Analysis of KM Application

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    An empirical analysis of

    KM application

    M9401004 M9401006 M9401013 M9401304

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    Outline

    Introduction

    Theory building research methodology

    Factor analysis

    Regression analysis

    Conclusion

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    Introduction

    Tensions exit between knowledge-

    orientated applications and the progression

    of organizational change.

    An overemphasis on technology

    Inadequate enabling technologies

    A need for a rigorous theory-building/testing

    research program

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    Introduction

    Theory-building Based on exploratory investigation Using methodological approaches

    Theory-testing Using large survey empirical analysis

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    Key factors for knowledge management

    Macro-environment Organizational culture

    People

    Technology

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    Macro-environment

    External to the organization influences the

    internal operation of organization Takeovers, changes in legislation, competition, joint

    ventures and pressure groups

    KM offers a framework for systematicorganizational change

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    Organizational culture

    A key element of managing organizational

    change and renewal

    Human elements comprised in culture are

    key determinants

    Knowledge-oriented culture challenges

    people to share knowledge throughout theorganization

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    People

    Within the field of organizational changeresulting from KM, human issues must

    be considered as a key factor Knowledge worker

    Very few organizations have

    systematically defined this role Less formal meetings and a more effective

    flow of dialog in organizations

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    Technology

    A well-designed, standardized, fully

    implemented technical infrastructure for KMcan improve information processing

    capabilities, knowledge discovery, project

    collaboration and rapid decision makingwith organizations

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    Theory building research methodology

    Exploratory survey-based, ethnographic,and social constructionist research studies

    Investigate questionnaire to survey the

    scope of KM in regard to key trends

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    Theory building research methodology

    The questionnaire was based on the

    key areas of interests in KM identified

    from the literature study, namely: defining KM

    business benefits and KM

    knowledge capture people development and KM

    technology, tools and techniques

    future trends

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    MeCTIP Model

    The model aims to portray the transformation oforganizations by prescribing source-level improvementsthat will contribute to knowledge-based activities.

    The model not only describes current organization

    standing but predicts how organizations can optimizebusiness performance through KM implementation.

    Me macro environment

    C culture

    T technology

    I information

    P people

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    The MeCTIP model is beneficial to KM researchas it clearly outlines key components of the fieldand the relationships that exist between theseelements.

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    Theory testing research methodology

    This paper-based tool, entitled Benchmarkingknowledge management took the form of apostal questionnaire.

    This study undertook a traditional, cross-sectional approach to survey implementation.

    To gain an understanding of how empiricalresearch had previously been applied within theKM field, an extensive literature review wasconducted, along with secondary exploratoryresearch.

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    Each industrial sector must operate within its own

    unique environment. Thus, cross-sectional results

    on a broad scale KM study would not be valid. To overcome this limitation the survey population

    was reduced to a more controlled group.

    Concentration was awarded to three industrial

    sectors, namely, engineering, retailing andtechnology.

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    1. Organizations were contacted by telephone to

    confirm contact details and to introduce thesurvey.

    2. The survey was then sent via the postal

    service; each package was marked for theattention of the managing director to bedistributed as appropriate.

    3. If questionnaires were not completed andreturned by the specified deadline follow upaction was taken. Telephone contact and a second mailing to non-

    respondents.

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    In an attempt to further increase the response

    rate, the small incentive of a copy of the research

    findings was promised to the candidates on

    receipt of their completed questionnaire. Each organization can benchmark their original

    answers against industrial peers.

    In addition each respondent was entered into araffle for a free electronic commerce short

    course courtesy of the University of Ulster.

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    Survey response

    42 non-respondents stated that it was company policy

    not to complete surveys. 14 organizations no longer existed when contacted by

    telephone follow up. Others offered vague promises to complete the

    questionnaires but failed to do.

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    Data analysis descriptive statistics

    39

    18

    32

    1131

    34

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    To analyze and interpret data derived from the

    empirical survey, factor analysis was conducted

    on five main areas of data, namely, organizational

    climate, technical climate, information, technologyand people factors.

    Before conducting factor analysis, the variables

    contained within each were subjected to reliability

    and appropriateness testing this ensuredquality of measurement.

    Factor Analysis (2/7)

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    Factor Analysis (3/7)

    Computation of factor scoresFactor scores were calculated using two

    different methods.

    To ensure that the process for calculating a

    value awarded to KM is accurate. The two

    values obtained for KM were compared usingboth graphical and statistical applications.

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    Factor Analysis (4/7)

    The scatter graph indicates that the values attributed to the

    variable KM are closely related, independent of which

    technique is employed.

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    Factor Analysis (5/7)

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    Factor Analysis (6/7)

    Interpretation of factor scores The factor scores for KM were interpreted in two ways.

    The respondent organizations were classifiedinto poor, average and good categories.

    -22 ~ -8 poor at KM

    -7.99 ~ 6.30 having potential for KM

    6.31 ~ 21 showed most development withinKM

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    Factor Analysis (7/7)

    To gain further comprehension of organization interest in KM, the same information was

    used to classify the organizations according to component structure.

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    Regression analysis (1/4)

    It is a technique aimed at proportionate

    reduction in error .

    It is designed to simplify and summarizecomplex information , and ascertain underlying

    patterns in the data.

    It informs how strongly related a pair of variable

    is , via a measure of correlation.

    It also measures the extent of the effect .

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    Regression analysis (2/4)

    It is used in this research to establish statistical

    model fit of the MeCTIP.

    First , regression analysis was performed to

    ascertain if any relationship exist between KM

    and internal organizational factors , namely

    organizational climate and technicalinfrastructure.

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    Regression analysis (3/4)

    Second , regression analysis was employed to

    ascertain if an indirect is made to KM by external

    factors ; all elements external to KM wereevaluated. In this instance the dependent

    variable , KM , is assessed against the

    independent variables , organizational climate ,

    internal technical climate , organization size ,market stage and type of respondent .

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    Figure 9 presents the findings of statistical

    investigation to establish a relationship between

    KM and internal organization factors.

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    The result of this multiple regression analysisindicates a highly significant relationshipbetween the dependent variable and

    independent variables. Overall model fitindicates that almost 48% of variability in thedependent variable is explained by theindependent variables.

    Model fit supports the hypothesis that changesin organization climate and changes in theinternal technical climate will have a direct effecton KM.

    Regression analysis (4/4)

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    The results from the second multiple regression

    analysis performed , conducted using the five

    elements external to KM , are shown below in

    Figure 10.

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    The regression analysis reports that a highlysignificant relationship exists between thedependent and the independent variables.Overall model fit testifies that the independentvariables contribute to just over half thevariability of the dependent variable .

    However . From the multiple regressioncoefficient table only internal organizationalfactors , namely organizational climate andtechnical infrastructure , have a direct effect onKM. While other macro-environment factors tendto influence KM in an indirect manner , thisrelationship is not strong .

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    Interpretation of statistical data

    Having obtained a complete set of statisticalresults in relation to the MeCTIP model , it ispossible to draw some conclusions on the

    respondent organizations were classifiedaccording to their current KM position. Furtherinsight to these organizations can be obtainedthrough the analysis of organizational

    approaches to KM. This is achieved byanalyzing internal organizational factors.

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    Conclusion(1/3)

    The MeCTIP model characterizes the keyelements of KM. It is concerned with theimpact that external and internal factors

    have on organizational KM implementation,development and maintenance. In the firstinstance, emphasize is place on elementsexternal to the organization. These are

    labeled macro-environmental issues.Although these elements are beyondorganizational control ,they still impact onthe organizations business environment.

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    Conclusion(2/3)

    Although these organizations realize theimportance of KM, they do not understand howto establish a successful KM environment.

    Those who show most commitment to KM haveused technology as the key driver for KMimplementation and development. While thisapproach is fine for short-time reward , the

    technological stance on its own will not offerlong-time benefit to the organization.

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    Conclusion(3/3)

    Very few of the respondent organizations haveadopted a culturally led change program for KM.Although changing the organization climate hasbeen outlined as the most difficult aspect of KM ,

    it is one that must be embraced for KM success.Thus , managers must avoid the perception ofKM as overriding cultural barriers. Organizationthat fail to shift cultural attitudes will not remain

    knowledge focused ; again efforts will be shortlived. The conclusion exists that the journey yetto be travelled by many organizations to achievesuccessful KM is not one to be embarked upon

    lightly.

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