Importance of International Knowledge Management - Literature review Example

Knowledge Management Knowledge Management Various theorists have tried to explain the origin of knowledge management. A good example is Nonaka and Tekeuchi. They developed a SECI model. Here both theorists explained that explicit knowledge and tacit Knowledge sometimes interact in a process that is continuous. The central part of the model is that people tend to share the knowledge that they have and this mixes with the new knowledge. Interaction of explicit and tacit knowledge leads to creation of new knowledge in organizations. Knowledge management is crucial because it helps in achieving of goals and objectives. “There are various ways used in gathering and dispensing of information and this is done in various departments” (Adas 2010, p. 30). They include human resource department, marketing department or information technology department. Data can be gathered from secondary and primary sources. There are many research secondary sources that provide information needed by a company. Trade magazines, newspapers articles, libraries, government agencies and the internet can be used as secondary sources. Primary sources involve collection of information through ways such as observation, networking, interviewing, focus groups or experimentation. Questionnaires are also used for collecting data. Observation is the simplest method. Networking is a more of an informal method to gather primary data from experts (Anderson 2006, p. 35). Business managers use knowledge for organization objectives like sharing intelligence, improving the performance of a company, for competition or innovation. Knowledge transfer is either through training, peer discussions and mentoring programs. For example, a company solves the problem of culture barrier by teaching different cultures of people to its employees. Learning different cultures of people help in understanding them well and hence avoid work conflicts (Anderson 2009, p. 56). Offering training to employees is important because it improves working efficiency. Dealing with Knowledge Management Challenges Global business managers should deal with the knowledge management challenges in a holistic manner in order to achieve their business goals. There are various knowledge management challenges that need to be solved in order to achieve goals. Information collected is sometimes not accurate and this affects decision making in a company. Global business managers should deal with this problem of data inaccuracy by validating the information presented to them. There is another problem of data misinterpretation (Allen 2011, p.98) Information gathered should be interpreted the way it is. Data biasness results in making the wrong conclusion. Data collectors and researchers in a company should be very careful in recording the information given (Bartlett 2002, p. 34). They are not supposed to record mistakes or include information that is not provided by the respondent. Another transnational strategy of managing information is by having a good system of storing information. FedEx is a company known to have a good paperless system of storing data of its employees. They have programs called PRISM HIRS which records any information pertaining to a worker. This programs record jobs posting, applicants and training information (Birkinshaw 2001, p. 23). It is important to maintain this strategy because information can never be lost. Information stored in files is mostly misplaced. The information stored in this system can be accessed any time. Importance of International Knowledge Management International knowledge management is important for global business managers because they will get and share knowledge concerning global markets. This is explained in the Theory & practice of knowledge management. There will be sharing of explicit knowledge from the international world. This is the transnational strategy used by global firms. This is important because the global environment is complex and need to be studied well. There are international factors that affect international business and this need to be considered. Information gathered includes economy of a foreign country, political-legal environment, cultural environment and technological development. All these affects an international business and it is therefore important that information regarding them be with global managers (Castells 2009, p. 45). A business that goes international deals with differences in levels of economic development, currency valuation, and government regulations. Information concerning the stage of economic development of a country is important. Infrastructures of developed countries are of no big concern like infrastructures of undeveloped countries. Political-legal environment in a foreign country is information gathered when a business has a good knowledge management (Ellentuck 2005, p. 34). The multiplicity of political environment combined with that of legal in the international market brings different business problems for companies and eliminating others. International knowledge management enables learning of different cultures of people that may affect the business. Different cultures affect the work force and the entire business. This is because the international organizations are complex. Culture is learned behavior and it entails how people think and behave (Di Gregorio 2005, p. 34). Culture encompasses a wide variety of elements, including language, social institutions, religion, political philosophy, economic philosophy, education, manners and customers. All these elements affect the learning and the ethical standards of a business plus shaping its behavior. For instance, a business maybe affected if the management team and the employees don’t understand the language spoken. This complicates things when negotiating an agreement etc. Good management of international knowledge enables good environment analysis and strategic planning. To understand what is required for effective planning, reporting and control in international operations, a company is required to do an environment analysis. Environment analysis enables a company to identify unique characteristics of each national market (Fiegener 2005, p. 56). This is because the international environment is complex. A company is able to know which national markets can be clustered together for operating or for planning purposes. In strategic planning, a company is able to know the people that can be involved in marketing decisions and major assumptions about the international target markets. Information as to which products needed by the targeted market is gathered, the ability of customers to buy their products and if the company can extend, adapt or invent products, prices, advertising and promotion programs for target markets (Kalkan 2008, p. 45). They are able to develop new business models to cut costs and differentiate products. This is the transnational strategy explained further by Bartlett & Ghoshal. Companies’ major strengths and weaknesses relative to existing and potential competitiveness in the international target market is important information. Knowledge Sharing and Systems Research has shown that those international businesses that focused on information about competitors, the customer, and industry using networking, trade associations and recent publication succeeded. This is the same with those that shared information. Good cases are Hawlett Packard and McKinsey. These are good examples where there is knowledge sharing within global firms. Sharing of information is through emails, telephone and emails. These firms are known to solve various problems and disputes with each other. Interviewing is more expensive than observation but is more likely to generate more meaningful information (Lehmann 2005, p. 25). Interviews maybe conducted in persons, by telephone, through the mail, or online, an approach growing popularity especially for firms with an existing customer base. The questionnaire or data collection instrument has questions specifically drafted to fulfill goals of companies that the business person listed earlier. Questions should be designed so they are clear and precise. They are not supposed to bias the responded. Focus groups are other sources of information. Focus groups are a sample of 10 to 12 potential customers who are invited to participate in a discussion related to company objectives (Lehmann 2007, p. 28). The focus group discusses issues in an informal, open format enabling a business person to ascertain certain information. Another modern and effective source of information is social learning. Social learning is the best way of learning and sharing information. Social learning is learning from others plus taking advantage of social media tools to learn. Social learning enables people to be informed, make better decisions and view things in a wider perspective (Ramon 2007, p. 34). Social learning includes blogging and media. There is a serious need in the work force to embrace technology and this can be learned through social media. Learning through social media increases productivity (MacKenzie 2006, p. 56). This is because a lot of information like the latest technology is learned through social media. In the olden days, social media was just used for branding and marketing. Social media today is a powerful tool for learning. Social media is a technology for sharing information. Companies have benefited from social learning by solving complex problems and planning succession. In order to verify that social learning would help professional, ASTD commissioned a research to be done using survey questions. Conclusion Knowledge is the basis of this entrepreneurial resource which in itself is valuable. This type of knowledge is built up over time through experience. Before considering either primary sources or commercial sources of information, a business person should exhaust all free secondary sources. These reports are a good source of knowledge. Various factors should be considered when choosing primary method of obtaining data. Costs, flexibility, response rate, speed and depth are some of these factors. Face to face form of interview has the best response rate. Telephone and internet are the fastest methods of obtaining information. All these will give market and technological knowledge. Basic knowledge about the market and customers enables a company to understand the problems that customers have with the market’s exiting products. In essence, a company shares some of the same knowledge that customers have about the use and performance of products (Perry 2002, p. 45). From this shared knowledge, companies are able to bring together resources in a way that provides a solution to customer’s dissatisfaction. Technological knowledge is also a basis for generating new entry opportunities. Technological knowledge refers to a company possession of information, technology and skills that provide insights into ways to create new knowledge. This technological might lead to a technology that is the basis for a new entry, even though its market applicability is unobvious. Technological knowledge has led to technological advancement that in many ways has created new markets rather than generating a technology to satisfy an unmet market need. Often these technologies were created by people wanting to advance knowledge without concern for commercial applicability. Other times, a technology has been invented for a specific and narrow purpose only to find out later that the technology has broader implications. We have seen that social learning is a good source of getting new knowledge. It will mean a lot to human resource managers and human resource developers. It will make the human resource managers be updated on new information of improving their work force. This will help them make better decisions and eventually led to increase of their output. Human resource managers and human resource developers will be in a better position to solve complex problems and plan well. The complexity of acquisition and managing change increases the information-process demands on a company. Second, highly trained managers and employees are an important resource for coming up with news to tackle current problems. Third, if the employees will be involved in making the given decisions, then they will become motivated to implement the decided course of action. A participative management style will enhance job satisfaction. References Adas, M 2010, Information System, Ithaca: Cornell University Press. Anderson, D 2006, Knowledge Sharing, Risk Management, 53(4), 25-30. Anderson, D 2009, The critical importance of sustainability risk management, Risk Management, 53(4), 25-30. Allen, M 2011, Social Learning, A Call to Action for Learning Professionals, 45(3), 50-54. Bartlett, C 2002, Managing Across Borders: The Transnational Solution, New York Harvard Business School Press. Birkinshaw, J 2001, Why is Knowledge Management So Difficult? Business Strategy Review, 12 (1), pp. 11-18. Castells, M 2009, The Rise of the Network Society (2nd ed.), Ithaca: Cornell University Press. 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Perry, S 2002, information management, Journal of Developmental Entrepreneurship, 7(4), 415-421. Ramon, L 2007, Nature Friendly. Burr Ridge, IL: McGraw-Hill. Read More