Knowledge management practices in multimedia super corridor status companies in Malaysia

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UNIVERSITY OF SOUTHERN QUEENSLAND

Knowledge Management Practices in

Multimedia Super Corridor Status

Companies in Malaysia

A dissertation submitted by

Gerald Goh Guan Gan

Dip Computer Studies (Distinction), Adv Dip Computer Studies (Distinction),

B InfoTech (Distinction), Grad Dip Information Systems, MA Communication

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ABSTRACT

Knowledge is recognised as being an important asset in organisations these days. Despite this, many organisations are not doing enough to effectively manage this important asset for its competitive advantage. In response to this, knowledge management which is defined as a process that effectively creates, captures, shares and uses organisation-wide knowledge to improve the organisation’s performance was conceived and has since gained widespread acceptance the world over. Despite its widespread acceptance, little is known about the current levels of knowledge management practice within the Malaysian context, in particular amongst the Multimedia Super Corridor status companies in Malaysia. In view of this, the research problem formulated for this study is: ‘How and why do Multimedia Super Corridor status companies in Malaysia practise knowledge management?’

Based on this research problem, three research questions that look specifically at the knowledge management enablers, knowledge management processes and knowledge management outcomes were identified based on the literature review. The literature review provides an overview of knowledge and the different types of knowledge. It then chronicles the developments of knowledge management and canvasses extant literature on knowledge management within the Malaysian context. It found that there are various enablers of knowledge management that may impact on the level of knowledge management practice in Malaysia. These enablers can be broadly categorised as culture, structure, people and information technology infrastructure. To further comprehend the knowledge creation process, this study utilised Nonaka and Takeuchi’s (1995) socialisation, externalisation, combination and internalisation (SECI) model for knowledge creation. In addition to this, organisational efficiency, competitive advantage, maximisation of organisational potential, and better management of knowledge assets were identified as key knowledge management outcomes in organisations. These knowledge management enablers, processes and outcomes were used to develop a preliminary theoretical framework upon which this research was based upon.

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CERTIFICATION OF DISSERTATION

I certify that the ideas, results, analyses and conclusions reported in this dissertation are entirely my own effort, except where otherwise acknowledged. I also certify that the work is original and has not been previously submitted for any other award, except where otherwise acknowledged.

Signature of Candidate: Date

Gerald Goh Guan Gan

ENDORSEMENT

Signature of Principal Supervisor:

Ms Charmaine E Ryan

Department of Information Systems Faculty of Business

Date: ________________________

Signature of Co-Supervisor:

Assoc Prof Dr Raj Gururajan

Department of Information Systems Faculty of Business

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ACKNOWLEDGEMENTS

The completion of this study marks a milestone in my private and academic life, which is made possible with a great deal of hard work coupled with generous assistance of many individuals and organisations.

I am indebted to my supervisors, Ms Charmaine Ryan and Assoc Prof Dr Raj Gururajan who were always there for me when I needed assistance and advice. Their patience, understanding and faith in me had made it possible for me to complete this study. The numerous face-to-face discussions we had in Singapore and Malaysia made it possible for me improve and progress with the dissertation. I appreciate their willingness to taking time out from their busy schedules to meet me and discuss issues pertaining to the study.

Much appreciation goes to the wonderful USQ academics – Prof Dr Ed Fitzgerald, Dr Lesley Willcoxson, Assoc Prof Dr Mark Toleman, Dr Jianming Yong, Dr Michael Lane and Ms Adrienne Jocumsen who willingly shared knowledge and information with me. Their words of encouragement had inspired me throughout the duration of my studies.

Thanks to Ms Christine Bartlett of the USQ Office of Higher Degrees and Research for her advice and assistance with the Human Ethics clearance application.

I acknowledge the support of the participating MSC status companies who were kind enough to grant me access to records and information needed to successfully complete this study.

This study would not have been possible without the support of Han Chiang College, Penang. The period of academic development leave to commence this study in Toowoomba, Australia was an invaluable and enriching experience for me. I am in gratitude to the College Principal, Dr Wang Yoon Yah for her support and emphasis on importance of research.

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1 INTRODUCTION ... 1

1.1 Background and significance of the study...2

1.2 Research problem...5

1.3 Methodology ...6

1.4 Justification for this research...8

1.4.1 Contribution to research...8

1.4.2 Contribution to practice ...10

1.5 Definitions ...12

1.6 Delimitations of scope and key assumptions...14

1.7 Structure and organisation of the dissertation ...16

1.8 Summary ...17

2 LITERATURE REVIEW ... 18

2.1 Knowledge overview...18

2.1.1 What is knowledge? ...19

2.1.2 Types of knowledge...25

2.1.2.1 Tacit knowledge ...25

2.1.2.2 Explicit knowledge ...27

2.2 Knowledge management ...28

2.2.1 History of knowledge management ...29

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2.3 Knowledge management in Malaysia ...36

2.3.1 The Multimedia Super Corridor ...37

2.3.2 Knowledge management practices in Malaysia ...39

2.4 Enablers of knowledge management...42

2.4.1 Culture ...42

2.4.1.1 Collaboration ...42

2.4.1.2 Mutual trust ...43

2.4.1.3 Learning ...44

2.4.1.4 Leadership ...44

2.4.1.5 Incentives and rewards ...45

2.4.2 Structure ...46

2.4.2.1 Centralisation ...46

2.4.2.2 Formalisation ...47

2.4.3 People...47

2.4.3.1 T-shaped skills ...48

2.4.4 Information technology infrastructure...49

2.5 Knowledge creation process ...50

2.5.1 The SECI model of knowledge creation...52

2.5.1.1 Socialisation – From tacit to tacit ...53

2.5.1.2 Externalisation – From tacit to explicit ...54

2.5.1.3 Combination – From explicit to explicit ...55

2.5.1.4 Internalisation – From explicit to tacit...56

2.5.2 The knowledge spiral...56

2.6 Knowledge Management Outcomes ...59

2.6.1 Organisational efficiency ...59

2.6.2 Competitive advantage ...60

2.6.3 Maximising organisational potential ...61

2.6.4 Managing knowledge assets...62

2.7 Summary of literature...64

2.8 Proposed research model ...65

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3 RESEARCH METHODOLOGY ... 67

3.1 Justification for the research paradigm ...67

3.2 Justification for the case study method ...73

3.3 Case selection and number of cases ...76

3.3.1 Replication logic for multiple case studies ...77

3.3.2 Number of cases, interviews and sources of cases...78

3.4 Case study research procedures ...81

3.4.1 Phase 1: Literature review and the role of prior theory...82

3.4.2 Phase 2: Convergent interviews ...83

3.4.3 Phase 3: Pilot interviews...86

3.4.4 Phase 4: Main case analysis ...87

3.5 Case study data analysis ...89

3.6 Validity and reliability in research design ...93

3.7 Limitations of case study research...95

3.8 Ethical considerations...97

3.9 Summary ...99

4 FINDINGS & ANALYSIS ... 100

4.1 Details of cases and interview participants ...100

4.2 Data from pilot study ...104

4.3 Data on research question 1: knowledge management enablers ...105

4.3.1 Collaboration...105

4.3.2 Mutual trust...108

4.3.3 Learning...110

4.3.4 Leadership...112

4.3.5 Incentives and rewards...114

4.3.6 Centralisation...116

4.3.7 Formalisation ...117

4.3.8 T-shaped skills...119

4.3.9 Information technology infrastructure...122

4.4 Data on research question 2: knowledge management processes...125

4.4.1 Socialisation ...125

4.4.2 Externalisation ...127

4.4.3 Combination...128

4.4.4 Internalisation...130

4.5 Data on research question 3: knowledge management outcomes ...132

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5 CONCLUSIONS & IMPLICATIONS ... 137

5.1 Discussion and conclusions on research questions ...139

5.1.1 Discussion and conclusions on research question 1: knowledge management enablers ...139

5.1.2 Discussion and conclusions on research question 2: knowledge management processes ...147

5.1.3 Discussion and conclusions on research question 3: knowledge management outcomes...152

5.2 Conclusions on research problem...154

5.3 Implications ...157

5.4 Limitations ...161

5.5 Suggestions for further research...162

5.6 Summary ...163

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LIST OF FIGURES

Figure 2.1 Data, information and knowledge ...22

Figure 2.2 An integrative research framework for this study ...41

Figure 2.3 T-shaped skills...48

Figure 2.4 The extended SECI model of knowledge creation ...53

Figure 2.5 Spiral of knowledge creation...57

Figure 2.6 Initial research model on knowledge management practices ...65

Figure 3.1 Stages of the case study research process ...81

Figure 3.2 Components of data analysis...90

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LIST OF TABLES

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Table 2.1 Summary of descriptions for data, information and knowledge ...24

Table 2.2 Major developments in each knowledge management generation ...31

Table 2.3 Knowledge management spectrum: technologies and applications ...35

Table 2.4 Summary of factors reviewed in the literature ...64

Table 3.1 Scientific research paradigms ...68

Table 3.2 Selection of appropriate research strategy ...75

Table 3.3 Summary of the research questions and related interview questions contained in the interview protocol ...85

Table 3.4 Summary of data collection activities...92

Table 3.5 Limitations of case study research and related strategic responses...95

Table 4.1 Details of interview participants ...102

Table 4.2 Summary of ratings for collaboration ...107

Table 4.3 Summary of ratings for mutual trust ...109

Table 4.4 Summary of ratings for learning...111

Table 4.5 Summary of ratings for leadership...113

Table 4.6 Summary of ratings for incentives and rewards...115

Table 4.7 Summary of ratings for centralisation ...117

Table 4.8 Summary of ratings for formalisation ...119

Table 4.9 Summary of ratings for T-shaped skills...121

Table 4.10 IT applications used to support knowledge management ...123

Table 4.11 Summary of ratings for IT infrastructure...124

Table 4.12 Summary of ratings for knowledge creation activities ...131

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LIST OF APPENDICES

Appendix A Letter to MSC status companies...182

Appendix B Letter to interview participants ...183

Appendix C Ethics clearance ...184

Appendix D Interview protocol...185

Appendix E Consent form ...201

Knowledge management practices in multimedia super corridor status companies in Malaysia

UNIVERSITY OF SOUTHERN QUEENSLAND