Impact Of Knowledge Management Practices Business Essay


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Organizational performance is coupled with efficient effective knowledge management practices. This is a strategically an important tool that can be used to modify and increase organizational performance significantly. Today's dynamic and competitive corporate environment demands an exclusive attention by government department to practice knowledge management. Syed Ikhsan and Rowland (2004) endorse that government and private organizations administer knowledge to obtain its full advantage.

New innovations and strategies can be made by documenting and organizing data. New employees can be trained by using this documented or stored data. Now a day it becomes the prime asset of an organization (Dansih R., Nawaz M., and Munir Y., 2012).

Norman (1998, pp.50-74) noted that knowledge may reside in two places: in the heads of people and in the world. Knowledge can be divided in to tacit and explicit knowledge. According to Spender (1996: 77) knowledge acquired through experience is tacit knowledge. (Polanyi, 1966) explains that the knowledge which can be transmitted by formal or systematic means is called explicit knowledge.

Government departments are rich of tacit knowledge. Nonaka & Takeuchi (1998) propose that the conversion of tacit to explicit knowledge would enhance organizational performance.

Information technology tool are very supportive here. Use of I.T can greatly effect the organizational performance (AlMashari, M., Ziari, M. & AlAthari, A. (2002).

Organization's culture is massive obstruction while implementing KM in any organization. So if the culture is not supportive toward KM then it will be very difficult to create knowledge management culture in the organization. (Anonymous, 2004).

According to Politis (2002) organizational performance is the paramount concern for any scholar or practitioner. Implementation of knowledge management practice in government departments is a matter that is completely neglected and no sincere efforts have been made so far to identify the factors necessary utilize this great weapon.

This research was conducted to identify the impact of knowledge management practices on organizational performance of government departments in Pakistan.

Research Objectives

The objectives of this paper are:

To determine the impact of sharing tacit knowledge by government employees on organizational performance.

To determine the impact of usage of information technology by government employees on organizational performance.

To determine the impact of organizational culture of government employees on organizational performance.

Literature Review

Managing knowledge in organizations becomes very critical for managers to apply and knowledge is being treated an intellectual assets. Knowledge management was initially defined as the process of applying a systematic approach to the capture, structure, management and dissemination of knowledge throughout an organization in order to work faster, reuse best practices, and reduce costly rework from project to project (Nonaka and Takeuchi, 1995: Pasternack and Viscio, 1998: Pfeiffer and Sutton 1999: Ruggles and Holtshouse, 1999).

Nicklos (2000) defines the basic aim of knowledge management is to leverage knowledge to the organization's advantage. Grey (1996) argues that knowledge has great connection with people's sills, abilities, concepts, perceptions, commitments and inspirations. Nonaka and Takeuchi (1995) explain that the personal beliefs are the dynamic human process. The involvement of human beings in dissemination knowledge in organizations can be accepted in the light of these findings.

Tacit knowledge can be either knowledge embodied or knowledge embedded (Horvath, 2007). The knowledge in human minds is embodied while knowledge shown in products, processes or documents is embedded knowledge.

According to (Pathirage et al., 2007) in the last few decades, an increasing interest has been observed in tacit type of knowledge. Nonaka & Takeuchi (1998) argues that the tacit knowledge create competitive advantage for organization. According to Wong & Radcliffe (2000) tacit knowledge conversion into explicit knowledge is very hard. Therefore sharing tacit knowledge in organizations can improve performance. Lin (2011) stated that organizations are involved in looking for utilizing knowledge mechanism to improve performance.

Information technology can be used as a tool to facilitate the flow of information and knowledge sharing in organization (Stoddart, 2001). A lot of innovative software has been developed to enable knowledge sharing (Lee & Al-Hawamdeh, 2002).

Technology plays a vital role in developing knowledge management in organizations (Andersson, 2000). In developing organizational theory technology has always been treated as main variable (Orlikowski, 1992) and "The fundamental requirement of knowledge sharing has always been technology" (lee & Al-Hawamdeh, 2002).

Riege (2005) identified 7 technological barriers that hinder people from sharing knowledge;

Lack of information technology process and system integration which limit employees to work.

Lack of internal and external technology support.

Unrealistic expectation what technology can do and cannot do.

Mismatch between technological needs, systems integration and information technology process.

Reluctant to use information technology because of not familiar to.

Lack of training to get use to new information technology systems and processes.

Lack of communication and usage of new system advantage compared to current system.

Every organization has its own culture that progressively grows over the time (Al-Alawi et al., 2007). Issa and Uadda (2008) explain that trust among coworkers is an important cultural element for successful knowledge management. The employees are only willing to share knowledge if they have trust the recipient (Connelly and Kelloway, 2002).

(Sanchez, 2004) describe that the organizational culture is composed of business strategy, people, processes, and structure. Organization's internal culture is very important for developing knowledge management system (Gumbley, 1998, p.175)

Knowledge management practices can be developed in any organizations only when they have supportive organizational culture (Abass F., Hayat M., Shahzad A., & Riaz A., 2011)

Organizational performance can be judged through knowledge management (Choi and Lee, 2002). Zack, McKeen and Singh (2009) found that knowledge management is associated with organizational performance. There is a dire need to develop a culture in organizations that encourages employees to participate in knowledge sharing activities (Tseng, 2010).


H1: Sharing Tacit Knowledge has significant impact on OP.

H2: Use of Information Technology has significant impact on OP

H3: Organizational Culture has significant impact on OP.

Theoretical Framework

Sharing Tacit Knowledge





Independent Variable

Dependent Variable

Organizational Performance



Use of Information Technology

Organization's Culture

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