assessing organizational readiness for knowledge ...prj.co.in/setup/business/paper219.pdfreadiness...

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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


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


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


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Results of examining the second main hypothesis are shown in table 4 and 5.

Table 4: Technological factors


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



technology

factors 15.209 121 0.000 1.059 0.92 1.20



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


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



technology

factors 10.673 121 0.000 0.5019126 0.408813 0.595012



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


conversion

6


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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15. Shakeri, f. (2012). Study on the preparation of the electricity distribution companies in

Yazd general evaluation framework for knowledge management approach

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Knowledge-Based Systems 22, PP. 3

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