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In this research, the main purpose is to find out either knowledge governance will enhance the organization performance or not. Knowledge within the organization can be used, created and shared through the deployment of governance mechanism. Therefore, few governance mechanisms will be taken in this research to tested whether will bring any impact for the performance or not within the organization.
1.1 Research Background
Recently, knowledge governance already becomes a new element and major research focus for the field of management studies. Knowledge governance can consider as a process to create, use and sharing the knowledge that will influenced by deployment of governance mechanism. According to Heiman and Nickerson stated that," knowledge governance means deploying mechanisms that mitigate costs of creating and sharing knowledge owing to the above characteristics of knowledge." (Heiman and Nickerson 2002)
Over the last few decades, knowledge already becomes a significant asset for the organization to enhance the organizational performance. Thus, knowledge has been considered an organization's most strategic resource (Zack, 1999). Besides, competitive advantage is required the ability of businesses to applying the knowledge sources and turn it to source of competitive advantage through the facilitating of controlled process. (Wiig 1993, Wiig 1997, Davenport and Prusak, 2000; Daniels and Simts 2005). In this modern era, the emerged of knowledge-based economy even has a significant role for the businesses and organization to sustaining the growth and competitive advantage compares with the adoption of production-based economy that just play less important role for the growth. As we know, adoption of knowledge-based economy is regarding to knowledge intensive activities that will improve the production and services through the accelerated of technology and scientific. Besides, a few of number of scholar also prove that k-based economy will replace the p-based economy on future and drive the economy of developed countries through technologies based on knowledge and information production.
Knowledge base can be a significant strategy asset for organizations to boosting organization performance. Therefore, Huber and Argote stated that," There is a marked increase of interest in the phenomena of organizational learning, on how organizations create, retain and transfer knowledge." (Huber 1991, Argote 1999). Organizations must learn how to pay attention to create, use and retain their knowledge to ensure somewhere within in organizations can really benefit from the valuable knowledge. Successful of knowledge process can assist organizations build their competitive strategy and enhancing their organization performance. Furthermore, the impact of globalization and liberalization that increase the probability of foreign competition to the domestic market already causing a successful of knowledge process become basis for competitive advantages to organizations.
Thus, the types of governance mechanism that has been used will bring important impact for the knowledge process in turn to assist organizations enhance their performance (customer intimacy, product leadership and operational excellence). A manager in organization required to emphasis into the improvement of knowledge process such as create, use and sharing knowledge internally and between firms through the implementation of governance mechanisms (Osterloh and Frey, 2000). Manager must better utilize certain knowledge through the monitoring of various governance mechanisms such as human resource management practice, reward system, information system and other types of mechanism.
1.2 Problem Statement
Knowledge can be viewed from a unified perspective; it circulates in the organization creating knowledge assets and influences the performance of the organization. Besides, we also can identify that the knowledge has multifaceted characteristics such as state of mind, object, having access to information, and the capabilities to influence the future action in organization.
In recent business environment, enterprises and businesses are tried to adopt and used the latest approach to enhance their organization performance. A several studies or research has stated that organizations performance can be influence by much kind of factors. The changing of forces and trends such as organization structure, technology and knowledge, globalization and liberalization causing firms and businesses required to identify and develop new organization strategy in order to compete with foreign businesses.
In this knowledge-based economy, sustainable of competitive advantage for organizations are not longer depend on physical assets and financial capital, but in more focus in knowledge process to create, share and transfer across department within organization (Seubert, Balaji and Makhija, 2001). For knowledge-intensive organizations, the trend of knowledge changing even more was causing them to develop appropriate organization strategy to enhance their organization performance. It is quite importance for us to explore how does the knowledge sources can assist organizations to improve and boosting their organization performance. Besides, the commitment to make a paradigm shift from the production based economy to knowledge based economy also causes the rapidly growing of knowledge intensive firms. Firms that equipped with knowledge assets will increase their ability to compete with competitors.
The management of knowledge assets became important to the organization over the last few decades (Nielsen and Michailova 2007; Offsey 1997). Besides, those are not knowledge intensive firm also start to become aware to the important of management of knowledge assets (Newman 1997). Either for the knowledge intensive firm and non-knowledge intensive firm, the purpose to managing the knowledge assets with properly of them are also similar, that is for enhancing the organization performance.
In knowledge based economy, successful of organization performance is strongly related to the innovation and creativity of products and services. We can view that innovation within organization is associated with refreshing what it offers the world and how it create and delivers that offering. The knowledge can become an important asset for organizations to ensure the continuous of innovation and creativity for products and services. As we mention earlier, the knowledge governance research is consists of the process to created, used and sharing through the deployment of governance mechanism. Therefore, this research is different because it enables us to find out the various governance mechanisms that used by organizations to create, sharing and integrating the knowledge in order to achieve effective organization performance.
1.3 Research Question
In this particular research, there are only has one primary research question to find out the relationship between the knowledge governance and organization performance. Below is the research question that concern for this research,
To understand how the governance mechanism (HRM practice, reward system, job design, organization culture and information system) that applied by organizations to create, used and sharing the knowledge and the relationship with the effectiveness of organization performance.
1.4 Objective to Study
The main purpose for this research is to find out the evidence that regarding to the relationship between knowledge governance and organization performance. The knowledge based economy causes the rapidly growing of knowledge intensive firms. Therefore, knowledge became a significant asset for them to gain the competitive advantage. Those firms who are failure to managing their knowledge with properly will be disqualified from the knowledge intensive industry.
To understand how the governance mechanism (HRM practice, reward system, job design, organization culture and information system) that apply by organizations to create, used and sharing the knowledge and the relationship with the effectiveness of organization performance.
Organization performance is linked to the competitive advantage. The competitive advantages that gain by firms is depend on the effectiveness of their performance. It has a significant relationship between organization performance and competitive advantages. Besides, the ability of the knowledge intensive firms to used, create and sharing the knowledge is the key to ensure the continuous of effectiveness organization performance. The feature of knowledge is complexity, it required us to learn how to manage and control it. Otherwise, it might become a competitive disadvantage if organizations do not facilitate the knowledge with properly compare with competitors. Thus, requirement to learn how to manage and control the knowledge already become a tendencies among knowledge intensive firms. Therefore, the researcher would like to study on those governance mechanisms such as HRM practice, reward system, job design, and organization culture and information system to create, used, and sharing the knowledge in order to enhance the organization performance.
1.5 Significant of Study
In this particular research, the important information that can provided is how does those governance mechanisms (HRM practice, organization culture, reward system, job design and information system) that applied by organizations to create, used, sharing and integrating the knowledge. Cannot be deny, this research is significant and bring a lot of benefits to the knowledge intensive firms. Knowledge is an important asset for organization to sustaining their growth and enhancing the organization performance. This research is enabling organizations to know about the ways to increasing the effectiveness and capabilities to used, create and sharing the knowledge through the deployment of governance mechanism.
Besides, organizations also able to find out which of the governance mechanism is most suitable for them in order to used, create and sharing the knowledge across the department. The increasing of capabilities to used, create and sharing the knowledge is significant to the organization performance. The continuous of successful organization performance is depending on knowledge sharing capabilities. Knowledge intensive firms are required to know that how to using and control the knowledge to sustaining the successful of business performance. Furthermore, the intensity of rivals is causes them require to developing an appropriate marketing strategy to maintain their competitive advantage against competitors.
The other party that is benefited from this research is government agencies. Government agencies are required to increasing the knowledge sharing capabilities in order to meet the public expectations for fast and convenient service delivery and institutional needs for efficiency. The emphasis of knowledge governance has been increase in both private organization and public organization. Besides, the advanced of knowledge management has capture the attention from government agencies. Therefore, this research is important for government agencies because it able increasing the knowledge sharing capabilities through the deployment of governance mechanism. As a result, their purpose to deliver effective services to public might be achieved.
1.6 Scope of Study
In this research, the main purpose is to find out those governance mechanisms (HRM practice, organization culture, reward system, job design and information system) that applied by organizations to used, create and sharing the knowledge and the relationship with organization performance. Therefore, the research can be conducted in both private and public organizations. The researcher believes that the main objectives of organizations are to improve their business performance in order to gain the competitive advantage. Thus, this research is might be important for them and the researcher believes that respondents can provide a plenty of useful information for this study.
Besides, we conclude that all members of the organization can divided by three levels which are director level, line or project manager level and employee level. The researcher assume that each of the level can provide an exactly information that is needed in conducting this research. The researcher hopes can able to capture and understanding the fundamental response from the respondents towards the impact of knowledge governance to organization performance.
Other than that, the diversification within the organization also is the main purpose of the researcher to conducting this study in both private and public organizations. The different culture and perception of all the members within the organizations might be have a different view about variables that are taken in this research which will bring an impact to the organization performance. Therefore, there is also an opportunity for the researcher to collect the important information for this study.
Meanwhile, Malaysia is in a transformational stage and has recently seen an increase in recruitment of foreign employees. Thus, their opinion and view towards the research might be bring the another useful information for the researcher. As a result, the researcher hopes that this study can assist and bring a lot of information for the organization to improve their business performance.
1.7 Disposition of Thesis
There is a brief explanation of what would be included inside each chapter in this knowledge governance research. In this particular research will consist of five chapters to allow us to more understanding about process of the research. The following chapter will be,
In the first chapter, it will try to talks about the research background that is related to the topic. The problem statement will be stated by the researcher in this chapter and the research gap will also be identified. Besides, it also list out the research question which is the main purpose for the researcher to doing this research. Next, the significant of study will talks about the importance of this research to both private and public organizations as well. Finally, the scope of study will explains the area that is conducted on this research.
In this particular chapter, it wills talk about the literature review that is related to the knowledge governance research. The proven and justify of journals, articles and magazines by various authors are listed in this chapter. Besides, the explanation of the independent variables and dependent variables about the topic will be included in this chapter. The fact of the previous study will become the useful information to explain both independent and dependent variables.
Chapter three is related to the research methodology. It talks about the technique that used by the researcher to proceed this research. Besides, this chapter will also consist of hypothesis development, research sampling and conceptual framework. The explanation of why selected conceptual framework model will be included in this chapter. Furthermore, it will also try to describe the source of data and the questionnaire design.
This chapter presents the findings of the analyze data from the survey questionnaire by using few analyze methods like ANOVA test, linear regression and multiple regression. The analyze methods use to test the relationship among the variables for the statistical hypothesis with the SSPS software. Besides, the interpretation of the findings result is stated in this chapter.
In the last chapter, the research contribution will be stated after the studies on the relationship between these variables. Besides, the discussion of the objective part will try to describe the objective of this study whether can be achieved or not. This chapter will also list out the limitation that is surface from the research. At last, the recommendation part will given a suggestion to overcome the limitations that are appear from the research.
Based on the discussion in this chapter, the researcher is now able to identify and develop the primary purpose to conducting the research which is to understand how those governance mechanism that apply by organizations to create, used and sharing the knowledge and the relationship with the effectiveness of organization performance. The researcher has identified the problem statement and research question in order to precede the research. Besides, the researcher also list out several significant of studies that can become the references to readers for future study. In addition, the researcher also has been identified the area and targets to conducting in this research.