Knowledge Management

Considering the essence of the term knowledge, it is difficult not to refer to knowledge management. It can be guessed that since information is different from knowledge, then information management should be different from knowledge management. In the first case, the focus is primarily on searching and finding objects (facts, events, etc.). On the other hand, knowledge management encompasses a broader spectrum of issues mainly related to the creation and use of knowledge, communication, and knowledge sharing (Nonaka & Takeuchi, 1995; Sirmon et ah, 2011). It is assumed that knowledge management is a discipline which addresses various means used by people to create and share knowledge and to provide it a social context to implement various organizational and business activities properly. Due to the globalization and development of various information technologies, knowledge management is an important alternative for firms in creating and maintaining a competitive advantage.

At present, three main trends in the development of the concept of knowledge management can be distinguished. These are (a) the Japanese approach, (b) the resource approach, and (c) the process approach.

The Japanese approach, which is the result of the work of Nonaka and Takeuchi (2000), focuses on the issue of knowledge conversion, the so-called “spiral of knowledge” model that reflects four knowledge conversion processes. They include

■ adaptation, involving the conversion of implicit knowledge into implicit knowledge;

■ externalization, involving the conversion of implicit knowledge into explicit knowledge;

■ combination, consisting in the conversion of explicit knowledge into explicit knowledge; and

■ internalization, involving the conversion of explicit knowledge into implicit knowledge.

According to the Japanese concept, knowledge management is a repetitive cycle involving the four processes mentioned.

In the resource approach, special importance is attached to the “sources of knowledge” model (Leonard-Barton, 1995). In this model, created as a result of research into the innovativeness of industrial enterprises, it is assumed that for effective knowledge management, the following five elements are necessary: (1) key skills, (2) joint problem solving, (3) implementation and integration of new tools and technologies, (4) experimenting, and (5) importing knowledge. It is not difficult to notice that the individual elements of the above model refer both to the inside of the organization (implementation and integration of new tools and technologies) and its environment (knowledge import), include the present (joint problem solving), and also look into the future (experimenting). Key competences and skills perform the function of an integrating factor into one coherent and efficient system.

The process approach is a trend based on the experience and solutions developed in large consulting companies. Knowledge management is assumed to be all processes that enable the creation, dissemination, and use of knowledge to achieve the organization’s goals (Drucker, 2002; Evenport & Prusak, 1998; Sanchez & Heene, 1997). Tire knowledge creation process includes a set of specific actions and initiatives that enterprises take to increase the amount and quality of organizational knowledge. The process of knowledge transfer concerns its transfer and sharing with others. The use of knowledge means the use of this resource to create new products, services, and business practices, and to develop original relationships with customers and suppliers.

To explain the mechanism of effective knowledge management in organizations, it is impossible not to refer to the theory of Critical Success Factors (CSFs), described in the literature by many authors (Daniel, 1961; Rockart, 1979; Wong, 2005).

D. Skyrme and D. Amidon (1997), researching knowledge management systems, identified seven key factors that determine their success, such as (1) a strong connection between the concept of knowledge management and the business imperative, (2) a convincing vision of knowledge management, (3) management support, (4) culture of knowledge creation and sharing, (5) continuous learning, (6) properly developed technological infrastructure, and (7) systematic process of knowledge organization. In turn, C. W. Holsapple and K. D. Joshi (2000), after analyzing various case studies and conducting research using the Delhi method, indicated three types of impacts on knowledge management: managerial, resource, and environment. Managerial impact consists of factors such as coordination, control, measurement of knowledge, and management support. Resource impact refers in particular to knowledge, human, and financial resources. On the other hand, factors related to the environment are primarily competition, markets, time, and economic factors.

T. H. Davenport (1998) and colleagues conducted knowledge management research that covered 31 projects in 24 firms. The purpose of this research was to identify the factors affecting the success of knowledge management. Eighteen projects have been recognized as successful projects. Eight common success factors were identified in these projects. They referred to the economic efficiency or value of the industry, clear business goals, standard and flexible knowledge structure, multi-channel knowledge transfer, knowledge-oriented culture, technical and organizational infrastructure, changes in motivational practices, and support of top management. In turn, the work of P. Chourides, D. Longbottom, and W. Murphy (2003) on the issue of knowledge management contributed to the identification of five areas important from the point of organizational success. These include strategy, human resources management, information technology, quality, and marketing. Whereas J. Liebowitz and Suen (2000), after conducting research into CSFs, proposed six key components that determine the success of knowledge management in organizations. They distinguished (1) knowledge management strategy and support from top management, (2) knowledge management infrastructure, (3) knowledge ontologies and knowledge repositories, (4) knowledge management systems and tools, (5) incentives (stimuli) to share knowledge, and (6) organizational culture. According to the research carried out by F. Hasanali (2003), success in knowledge management depends on factors such as management support, organizational culture, its structure, employee roles and responsibilities, technological infrastructure, and the ability to measure knowledge.

In addition, research in Polish small and medium-size organizations (Olszak, 2012) allowed to state that the management plays a key role in knowledge management. The management is responsible for the dissemination of knowledge sharing, learning, and search for new ideas. It significantly affects the behavior of other employees. Other competencies of the management, important from the point of knowledge management and organizational success are the ability to manage change in the firm and trust as well as creating a climate for the development of creative and innovative work. Research findings have highlighted the important role of work culture in SMEs and its direct impact on knowledge management. Culture should be understood as key beliefs, values, norms, and social behaviors that imply the way employees work in the organization. Knowledge-oriented culture encourages the creation of knowledge, development of various forms of cooperation, and knowledge sharing and its use. In the light of the conducted research, the importance of Information Communication Technology (ICT) in knowledge management also proved to be indisputable. ICTs allow firms to quickly identify and search for a variety of information, discover previously unknown relationships between data, as well as support cooperation and communication between individual employees, customers, and suppliers. It was recognized that the most important technologies supporting knowledge management in the organization include business intelligence, knowledge bases, management of cooperation, content and documentation, group work systems, knowledge portals, customer relationship management, and e-learning. The research also showed that one of the measures that guarantee success in knowledge management is a clear and well- developed strategy. It is the basis for enabling SMEs to develop their capabilities and resources in line with their objectives. It was emphasized that this strategy should correspond strictly with the business strategy and be understood by all employees.

To sum up the issue of the role of intangible resources (especially information and knowledge) for organizations, it should be recognized that the coordination of three important elements facilitates their efficient use:

■ People - who create individual and collective knowledge through learning, sharing knowledge, solving problems, integrating it with the culture of the organization with the ultimate aim to market, e.g., better products and services.

■ Processes - which should be regularly updated with current information, knowledge and improved respectively.

■ Technology, especially information technology - the use of which should be correlated with the needs of the market, competitors’ activities, and firm’s resources.