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APJEM
Arth Prabandh: A Journal of Economics and Management
Vol. 3 Issue 4 April 2014, ISSN 2278-0629 , 109-123
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ASSESSING ORGANIZATIONAL READINESS FOR KNOWLEDGE
MANAGEMENT SYSTEM IMPLEMENTATION (CASE STUDY:
DEPARTMENT OF INFORMATION TECHNOLOGY DEVELOPMENT
AT THE MINISTRY OF INDUSTRY, MINE AND TRADE)
ROOHOLAH RAFIEYZADEH*, SEYYED ALI AKBAR AHMADI **, DAVOOD
VAHDAT***
*MA Student of IT Management, School of Management, Payam Noor University, Tehran, Iran
**Professor, School of Management, Payam Noor University, Tehran, Iran
***Assistant Professor, School of Management, Payam Noor University, Tehran, Iran
ABSTRACT
To effectively implementation of knowledge management, initial evaluation of its
establishment is very important. Therefore, this study tends to deal with assessing
organizational readiness of effective factors in knowledge management establishment
(Organizational, technological and knowledge management processes factors) and ranking
these factors in terms of their significance in Department of IT at the Ministry of Industry,
Mine and Trade. The present paper aims at investigating the readiness for establishment of
knowledge management in Department of IT at the Ministry of Industry, Mine and Trade.
Statistical universe of the study includes all experts and managers of Department of IT at the
Ministry of Industry, Mine and Trade. The sample mass has been determined based on
Cochran formula. In this study, a questionnaire was used to measure the variables. Validity was established using a panel of experts in the field. Reliability was calculated as
0.882 using Cronbach's alpha coefficient. Descriptive statistics and inferential statistics
such as T-test and Friedman test were utilized to analyze data. The research finding
demonstrate that the eight variable of organizational culture, organizational leadership,
organizational strategy, information technology, knowledge acquisition, knowledge
conversion, storage and utilization are in appropriate position in settlement of knowledge
management in Department of Information Technology at the Ministry of Industry, Mine and Trade. Among three main factors, Information Technology has the highest rank and
organizational factors have the lowest rank. Also among organizational factors,
organizational culture factor is placed in the lowest position for establishment of knowledge
management. In addition, knowledge storage has the greatest effect among knowledge
management processes.
KEYWORDS: Knowledge management establishment, organizational factors,
information technology, knowledge management processes
________ _________________________________________________________________
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INTRODUCTION
According to the importance of knowledge as the most important competitive advantage for
present organizations, there is no doubt for managers about knowledge management
establishment as obligatory strategy. Nowadays, organizations' greatest wish is to define as
appropriate knowledge management system and handle it successfully. Doubtlessly,
governmental organizations should be appeared as leading organizations in designing and setting
appropriate knowledge management systems over various stages of designing and knowledge
management system establishment. Present research has engaged in evaluation of organizational
readiness for knowledge management systems establishment in department of information
technology development at the ministry of industry, mine and trade in order to assess the
readiness of this department.
Research theoretical foundations:
Present organizations have many differences with the past due to time situation they are in. The
basic characteristics of intelligent organizations in 21 century are emphasis on knowledge and
information. Against previous organizations, present organizations have advanced technology
and need capturing, managing and exploiting knowledge and information for improving
efficiency, management and following infinite changes. Knowledge is a powerful instrument that
can generate changes in the world and make innovations possible and causes present
organizations t pay attention to it (Mohamadifateh et al, 2008: 9(
Knowledge as an organization assets and a competitive advantage, enables organizations to step
in competition area with more confidence and stay in this field through the strategic resource.
Knowledge importance and its apply in various areas is discussed by social experts for
comprehensive fulfillment and justly income distribution as a key to survival, success and stable
competitive advantage in organization and management and as a strategic assets in economic
(Hasanzadeh et al, 2009) so that nowadays, economic has turned to a knowledge-based
economic. In this economic, knowledge has been mooted as a main resource in knowledge-based
economic instead of natural resources and capital in industrial economic. Intangible assets,
services and brands are factors more important than tangible assets for success of present
companies. Worls is as a network that is supported by advanced communication technologies
maked knowledge passing over boundaries and distances with no limits (Cantner et al, 2009).
To exploit high value of knowledge, some solutions have been presented. Here, it is knowledge
management that is introduced as the most important duty of organizations for management and
utilizing the vital resource and also as a modern approach for exploiting and developing
intangible assets. Knowledge management emphasizes more on activities of recognizing,
acquiring, saving and applying knowledge by people and groups in organization (Sun, 2010). In
this case, Wen (2009) defines knowledge management as a set of procedures for creating,
acquiring, sharingand applying knowledge for promoting organizational performance.
Since measuring is prerequisites of performance improvement, it is necessary to have an
appropriate framework for evaluating organization situation in terms of readiness at area of
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knowledge management. Knowledge management readiness in organization means readiness in
all fields of recognizing, gathering, organizing, saving, distributing and sharing knowledge in
organization (Dastrang et al, 2011). Therefore, evaluation of knowledge management readiness
in organization includes recognizing present situation of knowledge management in mentioned
areas and recognizing required changes to increase knowledge management abilities in
organization. In addition, evaluation of a system before its setting is a basic step in decreasing
plan risk and employees resistance to changes.
According to the researches and statement of researchers and experts of knowledge management,
it seems that among various factors that plays a role in implementation of knowledge
management, it is more necessary to pay attention to three factors of technology, organization
culture and organizational structure. Mills and Smith (2011) stated that "these infrastructures
play an important role in organizational performance and innovations".
Information technology as an effective factor on knowledge management makes facilitation in
creating, sharing, saving and applying knowledge in the organization (Lee and Lee, 2007). In
addition, technology influences knowledge management in two ways:
It should be utilized an appropriate technology for effective knowledge management
Technology makes organizational structures to be flat that this issue causes an increase in
knowledge management effectiveness (Aujirapongpan et al, 2010) and also lays the
groundwork for facilitation of knowledge conversion and generating the culture of
sharing knowledge in the organization. Organizational structure plays a role in forming
knowledge management team. Therefore choosing suitable strategies in line of
knowledge management goals and planning proportionate organizational structure is
effective on achieving success at knowledge management plan.
Research background:
Mohayidin et al dealt with investigating the impact of knowledge management utilization on
enhancement of efficiency at Malaysia universities and also investigation of effective factors on
achieving knowledge management in efficiency increase at Malaysia universities. In this respect,
researchers accomplished a survey research at eight public and private universities of Malaysia.
The obtained results have shown that infrastructure support, information culture, ingathering,
production, knowledge saving and dissemination are basic elements of forming primary
initiatives of knowledge management. Information culture is known as the most important
variable. In addition, results demonstrated that it is difficult to change culture and human factors
but these changes have had remarkable impacts on success of knowledge management projects.
Abdullah et al (2008) have completed a research titled as empiric study on implementation of
knowledge management system at public high education institutes in Malaysia. The research has
been done in a survey type and by distributing questionnaires in six public universities at Klang
Valley district of Malaysia. Analysis of the results showed that implementation of knowledge
management system is accepted at public high education institutes of Malaysia. Although the
culture of knowledge sharing is not in appropriate level in these institutes, the situation of
organizational structure for implementing this system was not suitable at public high education
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institutes of Klang Valley district. However, results on information technology readiness
situation for implementing knowledge management at mentioned high education institutes state
appropriate readiness of this infrastructure.
Fathiollahi et al (2009) in a research titled as the feasibility of knowledge management
establishment at Isfahan university in viewpoint of research plans executives, concluded that
Isfahan university enjoys of relatively desirable readiness for knowledge management
implementation at dimension of culture but at two dimensions of structure and processes and
information technology infrastructure, there is not this kind of readiness.
In another research that has been accomplished by Garabigloo et al (2012) titled as the role of
effective factors on knowledge management implementation at all municipalities of Rasht city,
results of this analytical-descriptive research showed that there is a significant relationship
between variables of organizational structure, information technology, organization culture,
human resource, education and employees retraining and knowledge management
implementation at a set of municipalities of Rasht city.
Shakeri (2012) engaged in measuring the readiness of Yazd electrical distribution company for
knowledge management implementation using general evaluation framework. Effective factors
on knowledge management success have been reconciled with sub-criteria and five points of
CAF model (leadership, rules and strategy, human resource management, processes and
resources). The obtained results demonstrated that the situation of all five factors of knowledge
management success in related area to subscribers of Yazd electrical distribution company is
more than the average. Using Topsis technique showed that in current situation, leadership
dimension is in the best situation for knowledge management implementation at electrical
company and dimension of resources has the most undesirable situation. Totally, results of this
research indicate the necessity of serious attention to improvement of dimension that are in
unsuitable situation.
Anli Suresh (2013) dealt with empirical evaluation of critical factors of knowledge management
success in organization stability at Chennai of India. In the research, by utilizing a consciously
strategy, it was engaged in recognition of the factors of knowledge management success
including output quality, organizational adjustment's leadership and culture and the rank of their
importance has been shown like output quality, organizational adjustment, culture and
leadership.
In a research that had been accomplished by Iranzadeh et al (2013) titled as determination of
effective factors on knowledge management strategy at pharmaceutical industry of Tabriz city
and is published in the journal European social and natural science, it is dealt with four factors of
organization structure, culture, knowledge creation and transfer and human resources at Tabriz
pharmaceutical industry (including three factories of Zahravi, Dana and ghazi Serum) results
indicated that the impact of these four factors on knowledge management strategy at these
factories is significant and among them, the impact of human resources is more than other factors
and importantly, organization structure, culture, knowledge creation and transfer are in the next
ranks.
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In resent research, we attempts to be aware of the readiness of three mentioned factors i.e.
organizational, technology and knowledge management processes factors that are mooted in
common as basic factors of plan success in most models of knowledge management
implementation, before executing the plans. Results of this research will prepare the opportunity
of preventing probable damages resulted from plan failure due to the weakness of these factors in
the future by programming and adopting solutions for creating or reforming these infrastructure,
if necessary.
Research questions:
In this research, it is dealt with the question that if the information technology development
department of the ministry of industry, mine and trade has the necessary readiness for knowledge
management system implementation? The question has been mooted in figure of three main
hypotheses:
Organizational factors for implementation of knowledge management at IT development
department of the ministry of industry, mine and trade are appropriate.
Technological factors for implementation of knowledge management at IT development
department of the ministry of industry, mine and trade are appropriate.
Knowledge management processes for implementation of knowledge management at IT
development department of the ministry of industry, mine and trade are appropriate.
For main hypotheses, eight variable of organization culture, organization leadership,
organization strategy, information technology, knowledge acquisition, knowledge conversion,
knowledge keeping and utilization are considered and their situation for implementation of
knowledge management systems at IT development department of the ministry of industry, mine
and trade were examined in terms of being appropriate or not in shape of eight separate sub-
hypotheses.
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Research model:
The research analytical model is considered as below:
Figure 1: research analytical model
Research method:
Present research is an applied research. According to the nature of the subject and research
objectives, the method of survey descriptive has been used.
Statistical universe:
Statistical universe of this research includes experts of IT development department of the
ministry of industry, mine and trade that are about 180 ones.
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Sample mass:
To determine sample mass, Cochran's formula has been used and 122 ones are estimates as
sample mass.
Table 1: frequency distribution and respondents' percentage of sample mass on work
experience, gender, education and age
gen
der
educatio
n
age
Resp
onden
ts
qualities
Less th
an 5
years
Betw
een 5
and 1
0
Betw
een 1
0
and 1
5
Betw
een 1
5
and 2
0
Betw
een 2
0
and 2
5
More th
an
25 y
ears
female
male
dip
lom
a
Post d
iplo
ma
Bach
elor o
f
science
Master o
f
science
Ph.D
.
Less th
an 3
0
years o
ld
Betw
een 3
0
and 6
0 y
ears
old
M
ore th
an
60 y
ears old
70 16 10 12 4 10 42 80 16 6 68 32 0 64 58 0 frequency
58 13 8 10 3 8 34 66 13 5 56 26 0 52 48 0 percentage
Data gathering instrument:
The instrument for gathering data was a questionnaire. The questionnaire was made by using
similar national and foreign questionnaires and it was reviewed and reformed by ideas of experts
and related professors. Its reliability was calculated as 0.882 by SPSS software and using
Cronbach's Alpha formula that shows high reliability of the questionnaire.
Data analysis:
To analyze data, first of all, Kolmogrov-Smirnov test was used for making clear that if data is
normal or not. Results showed that data follows normal distribution, so parametric tests have
been used for data analysis. In addition, descriptive statistics methods such as (mean, standard
deviation, variance and percentage calculation) and inferential statistics (T-test, Friedman test)
have been used by SPSS software.
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Research findings:
Examining first main hypothesis:
For the first main hypothesis, statistical hypotheses such as following ones are codified:
H0: Organizational factors for implementation of knowledge management at IT development
department of the ministry of industry, mine and trade are not appropriate.
H1: Organizational factors for implementation of knowledge management at IT development
department of the ministry of industry, mine and trade are appropriate.
Results of examining the first main hypothesis are shown in table 2 and 3.
Table 2: organizational factors
number mean Standard deviation Standard error of the
mean
Organizational
factors 122 3.6352 0.6387337 0.0578282
Table 3: the obtained results of examining the first main hypothesis
t Freedom
degree
Sig. level (2-
tailed)
Mean
difference
95% confidence
interval of the difference
lower rank upper rank
Organizati
onal
factors
10.98
5 121 0.000 0.6352459 0.520760 0.749732
Since Sig. is 0.000 and it is less than 0.05 and since the average of organizational factors
dimensions are more than 3 (3.63), we can reject H0 hypothesis at 0.05 error level. Therefore at
95 percent confidence level it can be stated that Organizational factors for implementation of
knowledge management at IT development department of the ministry of industry, mine and
trade are appropriate.
Examining the second main hypothesis:
For the second main hypothesis, statistical hypotheses such as following ones are codified:
H0: Technological factors for implementation of knowledge management at IT development
department of the ministry of industry, mine and trade are not appropriate.
H1: Technological factors for implementation of knowledge management at IT development
department of the ministry of industry, mine and trade are appropriate.
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Results of examining the second main hypothesis are shown in table 4 and 5.
Table 4: Technological factors
number mean Standard deviation Standard error of the
mean
technology
factors 122 4.06 0.769 0.070
Table 5: the obtained results of examining the second main hypothesis
t Freedom
degree
Sig. level
(2-tailed)
Mean
difference
95% confidence
interval of the difference
lower rank upper rank
technology
factors 15.209 121 0.000 1.059 0.92 1.20
Since Sig. is 0.000 and it is less than 0.05 and since the average of organizational factors
dimensions are more than 3 (4.06), we can reject H0 hypothesis at 0.05 error level. Therefore at
95 percent confidence level it can be stated that Technological factors for implementation of
knowledge management at IT development department of the ministry of industry, mine and
trade are appropriate.
Examining the third main hypothesis:
For the third main hypothesis, statistical hypotheses such as following ones are codified:
H0: Knowledge management processes for implementation of knowledge management at IT
development department of the ministry of industry, mine and trade are not appropriate
H1: Knowledge management processes for implementation of knowledge management at IT
development department of the ministry of industry, mine and trade are appropriate.
Results of examining the third main hypothesis are shown in table 6 and 7.
Table 6: Technological factors
number mean Standard deviation Standard error of the
mean
Knowledge
management
processes
122 3.501 0.5194128 0.0470254
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Table 7: the obtained results of examining the third main hypothesis
t Freedom degree
Sig. level (2-tailed)
Mean difference
95% confidence
interval of the difference
lower rank upper rank
technology
factors 10.673 121 0.000 0.5019126 0.408813 0.595012
Since Sig. is 0.000 and it is less than 0.05 and since the average of organizational factors
dimensions are more than 3 (3.50), we can reject H0 hypothesis at 0.05 error level. Therefore at
95 percent confidence level it can be stated that Knowledge management processes for
implementation of knowledge management at IT development department of the ministry of
industry, mine and trade are appropriate.
Results of examining sub-hypotheses by T-test
Table 8: results of examining sub-hypotheses resultsLower
rankUpper rank
Sig.Mean difference
Freedom degree
TStandard deviation
meanvariablenumber
confirmed0.5710.8390.0000.70412110.4340.7463.704Organization Culture
1
confirmed0.450.720.0000.5821218.6110.7473.58Organization
leadership
2
confirmed0.921.0200.0001.05912115.2090.7694.06Information
technology
3
confirmed0.510.730.0000.61912110.9210.6263.62strategy4
confirmed0.310.540.0000.4231217.2950.6403.42Knowledge
acquisition
5
confirmed0.430.620.0000.52512111.0710.5233.52Knowledge
conversion
6
confirmed0.260.460.0000.3611217.0010.5693.36Knowledge
utilization
7
confirmed0.570.830.0000.69912110.5950.7293.70Knowledge storage
8
Since Sig. level of tests is 0.000 and it is less than 0.05 and since the average of variables is more
than 3, so it can be stated at 0.05 error level and 95 percent confidence level that eight variables
of organizational culture, organizational leadership, organizational strategy, information
technology, knowledge acquisition, knowledge conversion, storage and utilization are in
appropriate position.
Dimensions prioritizing
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To prioritize dimensions, Friedman test was used and its results are shown in following table.
Table 9 shows that Sig. level is less than 0.05 that means the claim of equality of these eight
dimensions rank is not accepted. So, this prioritizing can be used.
Table 9: Friedman test
number 122
K square 328.797
Freedom degree 7
Sig. level 0.000.
Table 10: results of Friedman test for eight elements Sig. levelFreedom
degreeK squareRank meanElementsprioritizing
0.0007328.7976.02Information technology
1
5.75Knowledge storage
2
5.33Strategy3
4.81Organization leadership
4
4.69Knowledge conversion
5
4.35Knowledgeacquisition
6
3.83Knowledgeutilization
7
1.22Organizational culture
8
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0
1
2
3
4
5
6
7
Series 1
Series 1
Figure 2: results of Friedman test for eight elements
According to the obtained results of Friedman test, the first priority is related to information
technology and the last priority is related to organization culture.
Discussion:
According to the obtained results of previous sections, factors of knowledge management
success have different situations and the impact of each of them is less or more. As a result, it
can be said that attention and investment on factors should be increased so that implementation
of knowledge management system would be done successfully. As it is observed, organization
culture has been placed at a low rank. It is obvious that in organizations without considering
necessary incentives, people will have no inclination for their knowledge presentation. Thus, it is
better to establish knowledge management system in organizations with persuasive policies. Top
managers' support at organizations that knowledge and management have not found their
placement, influences on knowledge-based culture and knowledge management strategies and it
is natural that it cannot be expected activities beyond strategies and manager's demands.
Therefore, organization leadership is another factor of effective success on implementation of
knowledge management systems.
Technology factors and obviously IT has got the first rank among other factors and it is related to
knowledge storage although knowledge management is a system beyond information technology
but its powerfulness helps its establishment in the organization. The next factor is organization
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leadership that is at the middle situation in IT development department of the ministry of
industry, mine and trade. In implementation of knowledge management systems, we should
attract the attention of managers to the point that without their support, the process will lead to
failure and at the stage of utilizing new knowledge, it is vital to issue the license by them.
Process f knowledge management that includes acquisition, conversion, utilization and
knowledge storage is related to organizational factors such as culture, leadership and strategy and
information technology and their appropriate situation can influences on the success of
knowledge management systems establishment.
Conclusions:
In general and based on research objectives, it should be stated that department of information
technology development at the ministry of industry, mine and trade has appropriate
infrastructural situations for establishment of knowledge management systems. In addition,
among effective factors on establishment of knowledge management systems, information
technology has better position than other factors and among related variables to organizational
factors, the situation of organization culture is more unfavorable than other variables however, in
general, eight variable of organizational culture, organizational leadership, organizational strategy,
information technology, knowledge acquisition, knowledge conversion, storage and utilization for
establishment of knowledge management systems are in appropriate situations. In the first main
hypothesis, organizational factors in figure of organization culture factors were evaluated.
Analysis shows that this factor has lower readiness than other factor at department of information
technology development. Therefore, it is suggested to use current situations towards knowledge
distribution and information exchange among people besides fortifying friendly atmosphere and
with mutual trust. Using participative instrument such as suggestion systems with utilizing
employees' performance evaluation systems based on necessity of participation should be
considered. Creating a common basis through education, discussion, publication, team work, job
rotation and fortifying the culture of knowledge sharing by employees' encouragement to
knowledge exchange and their experiences with each other for exploiting effective material and
spiritual incentives are examples of activities for promotion of organization culture situation.
The second main hypothesis has dealt with evaluation of another effective factor on knowledge
management systems establishment i.e. technology factors. As it was said, research findings
shows that the readiness of this dimension is high foe establishment of knowledge management
systems.
In the lat main hypothesis, it is engaged in evaluation of another basic and important factor in
establishment of knowledge management system. Statistical analysis shows that knowledge
management processes are at medium level in terms of readiness for establishment of knowledge
management. Furthermore, this factor is consisted of other four variables i.e. knowledge
acquisition, knowledge conversion, knowledge utilization and storage that according to the
inappropriate situation of knowledge utilization in viewpoint of respondents and since
organizational learning is hidden in the nature of knowledge management, thus it is suggested to
improve knowledge distribution and organizational learning abilities through creating knowledge
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network including top, middle, executive managers and employees in organizational structure
and through group contribution and learning culture and so cause promotion of knowledge
utilization situation at the organization.
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