Mahmoud AIy Ghanemopenaccess.aast.edu/PDFs/Thesis/partial/74548_c.pdfArab Academy for Science &...

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ARAB ACADEMY FOR SCIENCE, TECHNOLOGY AND MARITIME TRANSPORT COLLEGE OF COMPUTING AND INFORMATION TECHNOLOGY Establishing Relationship between Knowledge Management and Innovation in SmaU and Medium Enterprises A thesis submitted in partial fulfillment of the requirements for the degree of Master of Science in Information systems By Mahmoud AIy Ghanem Supervisors: Dr. Nader Nada Associate Prof. of Information Tecbnology CoUege of Computing and Information Technology, AASTMT Dr. Mobamed Kbollef Bead of Educational Departments CoUege of Computing and Information Tecbnology, AASTMT August 2012

Transcript of Mahmoud AIy Ghanemopenaccess.aast.edu/PDFs/Thesis/partial/74548_c.pdfArab Academy for Science &...

Page 1: Mahmoud AIy Ghanemopenaccess.aast.edu/PDFs/Thesis/partial/74548_c.pdfArab Academy for Science & Technology ~ ~J College of Computing and Information Technology L;'.1 Post Graduate

ARAB ACADEMY FOR SCIENCE, TECHNOLOGY AND MARITIME TRANSPORT

COLLEGE OF COMPUTING AND INFORMATION TECHNOLOGY

Establishing Relationship between Knowledge Management and Innovation in SmaU and Medium Enterprises

A thesis submitted in partial fulfillment of the requirements for the degree of

Master of Science in

Information systems

By

Mahmoud AIy Ghanem

Supervisors:

Dr. Nader Nada Associate Prof. of Information

Tecbnology CoUege of Computing and

Information Technology, AASTMT

Dr. Mobamed Kbollef Bead of Educational

Departments CoUege of Computing and

Information Tecbnology, AASTMT

August 2012

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Dedication

To my parents,

Thank you for being the best parents a son could ever wish

To my brothers

Eng. Ashraf, Ahmed, Mohamed, Amany, and Osama Ghanem

To my wife: Eng. Asmaa Abdelaziz

And to my daughters: Sarah, Mariam, and Yara Ghanem

I love you all with all my heart

Asking Allah to sustain all of you all your health and wellness

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Abstract

Knowledge management and innovation are two key activities for companies. This thesis

examines the relationship between knowledge management and innovation which developed a

distinct and specific focus on knowledge management practices and the various activities which

are explicitly intended or utilized for creating and processing knowledge. This thesis provides a

practical knowledge management framework for improving the various forms of Knowledge

Management within the innovation processes of companies. It also examines the relationship

between knowledge management and innovation to create a working model that will assist small

and medium enterprises in building innovative qualities and knowledge management practices

into their business processes.

Following a description of the five mam groups of knowledge management practices for

innovation, the main operational element of the audit tool is in the form of a detailed

questionnaire which aims to act as both a discovery mechanism and as a prompt to further

reflection on the specific knowledge management activities within innovation processes. This is

complemented by a format for specifying action plans for improving knowledge management

practice for Innovation. A number of interviews are conducted with 40 SMEs to capture and

validate best practice techniques. The goals of the analysis are (a) to understand the SMEs current

capabilities and innovation management practices in each organization and (b) to identify a set of

recommendations that may facilitate and enhance innovation management in all participated

SMEs. Results show that the majority of the SMEs have apparent lacking of innovation strategic

plan, culture, and formal process and assessment approach to measure impact of innovation

project. These factors impact the overall success of the organization.

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Arab Academy for Science & Technology ~ ~J College of Computing and Information Technology ~,. L;'.1 Post Graduate Studies ·.~or

DECLARATION

We certify that we have read the present work and that in our opinion it is fully adequate in scope and quality as a dissertation towards the partial fulfillment of the master degree requirements in

Name: Mahmoud Aly Mahmoud Aly Ghanem Specialization: Computer Information Systems Date: August, 14,2012 From College of: Computing & Information Technology, Arab Academy for Science, Technology & Maritime Transport.

Supervisors:

Name: Dr. Nader Nada

Position: Associate Professor CoIleAe of Co~utin~)nformation Technology, AAST

Signature: ~~.J Name: Dr. Mohamed Kholief J

Position: Associate Professor Coll~f Computing and Information Technology, AAST

Signature: (-~ Name:

Position:

Sig~ature:

Examiners:

Name: Dr. Isam Kosba

Position: Vice Dean College of Computing and Information Technology, AAST

Sigrzpture: ...pI ...l.

Name: Dr. Shawkat Kamal Gui~is

Position: Professor Institute of Graduate Studies and Research (IGSR)

Signature: 1// :2

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~~J Arab Academy for Science & Technology ~~t College of Computing and Information Technology ~;;;";'»tt-' Post Graduate Studies

DECLARATION

I Certify that all the material in this thesis that is not my own work

has been identified, and that no material is included for which a

degree has previously been conferred on me.

The contents of this thesis reflect my own personal views, and are not

necessarily endorsed by the University.

Name: Mahmoud Aly Ghanem

(Signature)

(Date) August, 14,2012

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Acknowledgements

I would like to express my deep and sincere appreciation to my advisors Dr. Nader Nada and Dr.

Mohamed Kholief. It was Dr. Nader who led me to this wonderful world of research thank you

for giving me this opportunity to work with you and I am really thankful to Dr. Kholief for his

keenness to support me and guide me and for providing me with all kinds of help whenever I

needed during my research and even before.

I am really thankful to both of you for providing the freedom in conducting research and

providing me the various opportunities to participate in this interesting topic. I am extremely

grateful to you for your guidance and assistance in all matters, and for your infinite wisdom and

patience. I am indeed fortunate to have two such advisors like Drs. Nada and Kholief.

I am grateful for the support provided by participants that have played a key role in making this

research possible. I would like to thank all key persons who played imperative roles to guarantee

a successful study, Special thank you to Dr. Saleh Mesbah; I could never thank him enough for

the effort he put and valuable time he gave me. Dr. Ayman Adel Abd-Elhamid, Eng. Ehab

Ahmed and all my colleagues at Arab Academy for Science, Technology and Maritime Transport

Computer Network and Data Center (CNDC).

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Table of Contents

Abstract .......................................................................................................................................... .iii

Declaration ........................ " ............................ " .............. " ............................ .iv

Acknowledgements ....................................................................................................................... viii

List of Tables ..................................................................................................... v

List of Figures .................................................................................................. vi

List of Abbreviations ......................................................................................... vii

CHAPTER ONE: INTRODUCTION ........................................................................................... xiii 1.1 Introduction ............................................................................................................................ 1

1.2 Research Problem ................................................................................................................... 1

1.3 Research Motivation ............................................................................................................... 2

1.4 Research Objectives ............................................................................................................... 3

1.5 Research Questions ................................................................................................................ 3

1.6 Research Methodology ........................................................................................................... 3

1.7 Thesis Structure ...................................................................................................................... 4

CHAPTER TWO: LITERATURE REVIEW .................................................................................. 5

2.1 Related Concepts .................................................................................................................... 6

2.2 Knowledge Management (KM) .............................................................................................. 8

2.2.1 Sources of Knowledge .......................................................................... '" ........................ 9

2.4 Importance and Benefits of KM for Organizations .............................................................. 12

2.5 Infrastructure for Knowledge Management ......................................................................... 13

2.6 Knowledge Management Frameworks ................................................................................. 15

2.7 Knowledge Management in SMEs and Large Organizations .............................................. 16

2.7.1. Management. ................................................................................................................. 16

2.7.2. Structure ........................................................................................................................ 18

2.7.3. Culture .......................................................................................................................... 18

2.7.4. Human Resources ......................................................................................................... 18

2.8 Barriers for Knowledge Sharing in SMEs ............................................................................ 19

2.9 Innovation ............................................................................................................................. 20

2.9.1 Innovation Drivers ......................................................................................................... 21

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2.9.2 Types of Innovation ....................................................................................................... 21

2.10 Classification of Innovation ..................................................... '" ....................................... 22

2.11 Innovation Process Models ................................................................................................. 23

2.12 Relationship between Knowledge Management and Innovation in SMEs ........................ 29

CHAPTER THREE: INVESTIGATION OF RELATIONSHIP BETWEEN KM PRACTICE

AND INNOVATION IN SMES .................................................................................................... 31

3.1 Introduction .......................................................................................................................... 32

3.2 Research Questions .............................................................................................................. 33

3.3 Research Approach ............................................................................................................... 34

3.4 Potential Data Gathering Methods ....................................................................................... 34

3.5 Research Strategy & Data Gathering Method ...................................................................... 35

3.6 Description of the Chosen Research Method ....................................................................... 36

3.7 Sampling Considerations ...................................................................................................... 36

3.8 Limitations of the Research .................................................................................................. 37

3.9 Data Gathering Surveys ........................................................................................................ 38

CHAPTER FOUR: ANALYSIS OF THE FILED WORK ........................................................... 39

4.1 Introduction .......................................................................................................................... 40

4.2 Overall Survey Results ......................................................................................................... 40

4.2.1 Overall Result ................................................................................................................ 40

4.2.2 Results from Innovation Area 1: Strategy .................................................................... .42

4.2.3 Results from Innovation Area2: Innovation Processes ................................................. .43

4.2.4 Results from Innovation Area3: Innovative Organization ............................................ .44

4.2.5 Results from Innovation Area4: Linkages and Networking .......................................... 45

4.2.6 Results from Innovation AreaS: KM and Learning ...................................................... .46

4.3 SurveylInterviews - Detailed Results Analysis ................................................................... 47

4.3.1 Innovation Management Area 1- Strategy .................................................................. .47

4.3.2 Innovation Management Area 2 - Innovation Processes .............................................. .49

4.3.3 Innovation Management Area 3 - Innovative Organization ......................................... 52

4.3.4 Innovation Management Area 4 - Linkages and Networking ....................................... 54

4.3.5 Innovation Management Area 5 - Knowledge Management and Learning .................. 57

4.3.6 Results Summary ........................................................................................................... 59

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CHAPTER FIVE: INNOVA nON DRIVEN KNOWLEDGE MANAGEMENT FRAMEWORK FORSMEs ..................................................................................................................................... 62

5.1 KMF Implementation Strategy ............................................................................................. 64

5.1.1 Formulate Measurable Business Objectives .................................................................. 64

5.1.2 Secure Appropriate & Ongoing Executive Sponsorship ............................................... 65

5.1.3 StaffKM Team with the Right People .......................................................................... 66

5.1.4 Identify & Tackle Resistance to Knowledge Sharing .................................................... 67

5.2 Implementing KM Framework: Planning ............................................................................ 68

5.2.1 Identify Key Target Consumers and Subject Matter Experts ........................................ 68

5.2.2 Invest in Detailed Business Needs Assessment.. ........................................................... 70

5.2.3 Identify a Small, But Critical First Phase KM Implementation .................................... 70

5.2.4 Select and Create Relevant & Adequate Knowledge Content ....................................... 71

5.2.5 Design Simple & Effective Knowledge Workflow Processes ....................................... 72

5.3 Implementing KM Framework: Execution .......................................................................... 73

5.3.1 Execute to a Detailed and Meticulous Project Plan ....................................................... 74

5.3.2 Effectively Manage a Flexible Project Scope ................................................................ 74

5.3.3 Keep the User Community Involved at all Times ......................................................... 76

5.3.4 Obsess About Knowledge Quality ................................................................................. 76

5.3.5 Market the KM Implementation .................................................................................... 77

6.KM Framework Implementation ................................................................................................. 78

Feedback ........................................................................................................................................ 79

CHAPTER SIX: CONCLUSION AND RECOMMENDA nONS ............................................... 81

6.1 Conclusion ............................................................................................................................ 82

6.2 Recommendations for Further Research .............................................................................. 84

References .... : ................................................................................................................................. 86

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List of Figures

Figure (2.1) Primary repositories of organization's knowledge 10

Figure (2.2) Knowledge Management Infrastructure 14

Figure (2.3): Operational management of market strategy 17

Figure (2.4): Strategic management of market strategy 17

Figure (4.1) Overall innovation management capability rating 41

Figure (4.2) Innovation Area 1: Strategy - SMEs Mean Ratings 42

Figure (4.3) Innovation Area 2: Innovation processes - SMEs Mean Ratings 43

Figure (4.4) Innovation Area 3: Innovative organization - SMEs Mean Ratings 44

Figure (4.S) Innovation Area 4: Linkages and networking - SMEs Mean Ratings 45

Figure (4.6) Innovation Area S: Knowledge management and learning - SMEs

Mean Ratings 46

Figure (4.7) Innovation Management Area 1 - Innovation strategy: Results 47

Figure (4.8) Innovation Management Area 2 - Innovation processes: Results 50

Figure (4.9) Innovation Management Area 3 - Innovative organization: Results 52

Figure (4.10) Innovation management area 4 - Linkages & networking: Results 5S

Figure (4.11) Innovation Management Area 5 - Learning: Results 57

Figure (S.l) Three Stage Knowledge Management Framework 63

Figure (5.2) Strategy Phase of Proposed Knowledge Management Framework 64

Figure (S.3) Planning Phase of Proposed Knowledge Management Framework 69

Figure (S.4) Execution Phase of Proposed Knowledge Management framework 75

Figure (S.S) copy of the letter sent to SMEs inviting them to participate on the study 79

Figure (6.1) analysis finding, Correlation between knowledge management and

Innovation 83

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List of Tables

Table (2.1) Definitions of knowledge

Table (2.2) important research contributions to knowledge management

Table (2.3) Definitions of knowledge management

Table (2.4) Benefits of Knowledge Management

Table (2.5) Critical comparison of knowledge management frameworks

Table (2.7) Historic overview of innovation management models

Table (2.8) Characteristics of innovation management models

Table (2.9) Main activities of innovation process

7

9

11

12

15

24

25

27

Table (2.10) Main contextual components, subroutines, organizational influences, strategy

elements 28

Table (2.11) Organizational dominants of innovation 30

Table (4.1) Innovation Management Area 1 - Innovation strategy: Detailed Results 48

Table (4.2) Innovation Management Area 2 - Innovation processes: Detailed Results 50

Table (4.3) Innovation Management Area 3 - Innovative organization: Detailed Results 53

Table (4.4) Innovation management area 4 - Linkages & networking: Detailed Results 55

Table (4.5) Innovation management area 5- KM & learning detailed results 58

Table (4.6) Summary of research results 60

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CMMI

DFD

msc

IC

IFIM

IP

IPMC

KlTO

KM

KPI

NPD

OlIN

OAI

R&D

RFID

SMEs

SP

TQM

QA

WES

WIMS

List of Abbreviations

Capability Maturity Model Integrated

Data Flow Diagram

Innovation Balanced Score Card

Intellectual Capital

Integrated Framework for Innovation Management

Intellectual Property

Intellectual Property Management and Commercialization

Knowledge Intensive Technology Organization

Knowledge Management

Key Performance Indicators

New Product Development

Open Innovation and Innovation Network

Organization Assessment Instrument

Research and Development

Radio Frequency Identification

Small, Medium Enterprises

Strategic Planning

Total Quality Management

Quality Assurance

Work Environment Scale

Web-based Innovation Management System

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DIS 74548

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