Standardized Practices in Global Businesses in the Context of Knowledge Management - Research Paper Example

Proposal of: Standardized Practices in Global Businesses in the Context of Knowledge Management Name: Roll No: Class: Teacher: Subject: February 16, 2008 University: Standardized Practices in Global Businesses in the Context of Knowledge Management Introduction to the Proposed Area of Study There is a continuous debate about standardization and adjustment of international business according to the exigencies of standardized procedures. Advocates of standardization stress that there are certain forces in favor of standardization due to economies of scale and that needs of human being are similar in every country. The concept of standardization and its application in the international business has been developed in some other disciplines also like strategy, marketing and human resource management. (Takeuchi, H. 2001) Arguments on both sides exist about standardization of international businesses and the implementation of knowledge management. Thomas, D (2002) has endeavored to prove that knowledge management might develop into a universal theory. Susanne B. (2004) on the other hand is against the concept of standardization and debate in favor of an adapted approach concerning international knowledge management. (Susanne, B. 2004) The paper will attempt to address the scenario encountered by international businesses in the standardized practices in the context of knowledge management. Knowledge management is constructed with the support of many processes like modification, use, creation disposal and transfer. Most of the studies made in knowledge management had focused on the creation and transfer of knowledge. (Jensen, R. and Szulanski, G. 2004) The present literature suggests that there are barriers that impact on the creation and transfer of knowledge and if the managers are capable of acquiring them. Examples of these factors comprise managing conversations, shared context and redundancy. The previous research on the subject lacks the research on the application of knowledge management on the standardization practices by international businesses. Most of the present literature fails to address or even considers the impact of differences that exist in the different cultures with regards to the operational activities of global businesses and their transfer of knowledge through standardization. Aims and Objectives Aims and objectives for this study are to search for the answers of below-mentioned research questions: What are the various factors that influence the decision of a firm for adopting standardization practices? What is the impact of difference in national cultures affecting standardization in the context of knowledge management? Discussion about the differences that exist in firms with four outcomes of adequate standardization, adequate adaption, adequate adaptation, inadequate standardization and inadequate adaptation? How differences among cultures do affects such elements that are particularly significant for standardization practices of global businesses. Scope of the Research Although some of the studies have attempted to make a comparison of standardization practices and understand the adaptation of knowledge management, it is beyond this paper’s scope to list all of them. As such some of the work will be explained in detail while neglecting others. Differences among national competitiveness exist due to the different countries having different creation processes of knowledge required for a variety of sectors. Some of the approaches presented by different researchers will be covered in this paper to highlight the difference in approaches of knowledge management with regard to culture. (Takeuchi, 2001) Limitations of the Research Being an exploratory research on the standardized practices in global businesses in the context of knowledge management, the research will be reluctant to claim causality of results and findings. Conversely the researcher has a belief that cost and time constraints coupled with relatively small size of sample could affect the validity of the study. However, it is also believed that this study is not only useful but an interesting contribution to the somewhat limited literature on standardized practices and also on knowledge management. Research Questions and Hypothesis Based on the conceptual model and literature review, following research questions are presented for this paper. The main research question focuses on the decision of a business to adopt standardization process in the context of knowledge management. What are the particular factors that influence the decision of a business to standardize in the context of knowledge management? How does disparity in national culture influence the standardization process? What are the dissimilarities among firms with four different results of adequate standardization, inadequate standardization, adequate implementation of knowledge management, and inadequate implementation of knowledge management? What is the role of national culture in influencing factors important for creation of knowledge creation or transfer? In this study we shall be trying to test a hypothesis if there are certain standardized processes in global or international businesses or most of the international firms have their own standards while operating in multinational markets. Further this hypothesis will also be tested as to why the firms execute particular decisions to standardize and as such we intend to choose an interpretive perspective. The particular choice of interpretive perspective can influence our decision on whether a quantitative or qualitative approach would ultimately be used. Exploratory work will be considered as a significant step as it can provide certain hypothesis or explanations. Justification Various tasks will be performed and stages needed for justification. The Research objectives have to be justified subsequently research questions will be formulated. Selection of research design, methodology and methods are the different stages needed in this research. It is the responsibility of a researcher to undertake the decisions on theoretical perspective, research design, methodology and strategy and references will be used for justification of literature presented in this research. The researcher will also have to include data on extraneous variables, operational measures, reliability and validity, ethical issues, time frame, problems and limitations of research. Some of these elements will be augmented in depth and elaboration will be made on how it is relevant to the research. The information and factors chosen for including in this particular research will be based on the literature, discussion and research methodology. A careful sample will be selected to access the variety of information. Sampling is termed as the process of selecting target population units that are intended to be included in the study. Next task will be to determine the data collection methods. The most popular method for colleting data is questionnaires combined with interviews. We shall be using interviews as the source of data collection. Three famous types are available for conducting interviews. They are; focused interview; formal survey; and open-ended interviews. The next step of research will be analyzing qualitative data followed by the conversion of data. Simple qualitative techniques will be used in converting quantitative data to qualitative data and vice versa and as such the essence of research will be justified. Review of the Literature From the present literature, appropriate as well as inappropriate results can be obtained with a standardized approach in the direction of international knowledge management. Four outcomes exist about international knowledge management which are; inappropriate standardization; appropriate standardization; inappropriate adaptation; and inappropriate adaptation. (Szulanski and Jensen. 2004) Most of the current literature focuses on factors influencing standardization processes adaptable in the context of knowledge management, knowledge transfer and knowledge creation. However it is still a new discipline as compared with others. In other disciplines like marketing, human resource management and strategy particular factors exist that explain the reason for international businesses adapting standardized practices. However it is possible to acquire adequate results for standardization and understand factors that influence knowledge management. A better understanding of elements having impact on standardization in the context of knowledge management, a business is in better position to execute and implement excellent business decisions. (Pauleen, 2005) In the dynamic global environment and the constant increasing trend of forming strategic alliances among a variety of international players, it has become vital for international businesses and their entrepreneurs whose interests are invested in those particular businesses that they establish greater alliances and partnerships among each other in the quest of accomplishing targeted growth supported by the standardization processes in the context of knowledge management. This research attempts to improve the understanding of elements augmented in it and understand the relationship between different factors that impact the standardization process. The debate conducted in this paper also endeavors to provide support to other researchers and decision makers as significant efforts have been made to collect and analyze the data for making it useful to others. Forces will be identified that influence standardization process and understand the phenomenon of knowledge management, correlating them at the end. These forces comprise centralized structure of organization, global strategy, organization culture and creative disorder. A better understanding is intended to be developed regarding differences that exist in national culture having different impact on the process of standardization and knowledge creation along with transfer of knowledge. Differences existing in national culture in fact influence the creation process of knowledge. Attempts in this paper will be made to develop a better cognizance of sharing knowledge and impact of national culture that influence standardization process of businesses. Methodology and Ethics Any research is likely to observe limitations, problems, difficulties and barriers. As such it is important to anticipate such difficulties and barriers and specific contingency plans have to be executed for encountering them. Development of a better cognizance of these difficulties and barriers is significant so the researcher can attempt to minimize or avoid the impact that can be made by these difficulties. A researcher will commence with difficulties and barriers associated with case studies, followed by such issues that are linked with cross-cultural. Many instances exist in which researchers had permitted sloppiness and biased views that effect quality of research. Thomas (2002) highlights that one of the major difficulties encountered in cross-cultural research are similarity or equivalence. Equivalence or similarity means that participants from a variety of culture are aware of the equality in concept and its connection to other concepts in the research. As such a need exists for ensuring metric equivalence or method equivalence for the particular research. Moreover, some difficulties might occur with data collection. When the respondent and interviewer belong to different culture there is a high level of possibility that characteristics of interviewer might impact the answer of respondent, which is called bias in interview. The purpose of methodology that will be selected to establish a particular direction to perform research attempts to present an exclusive theoretical framework and also the methodology as autonomous in the process of research. The development of framework is intended to follow normally the research process narrated by some specialized researchers as they observed that the present theory could provide to predict specific data could have significance in order to do further investigation. The model-building process can be helpful in this regard as it is similar to the system approach while dealing with the problem. It can be stated that this process entails designing a series of hypothesis, being abstract proposition and is able to be tested by relating particular questions to these assumptions. An inductive methodology best suits such model building process. (Anderson, E.W. 1998) This approach is also used in this research for the purpose of developing different proposition from literature review and designs such questions that could investigate these assumptions for the purpose of building a model. However, such questions also reveal experientially resulted constructs from initial experience of a character in the area of standardization process in the context of knowledge management. (Steenkamp, J. 1991) Designing Questionnaire It is suggested by the social theory that actions of individuals are in fact inspired by the response of actions expected to bring. This theory was applied by Dillman (1978) to questionnaire design and it was noted that respondents are inspired to complete and thereafter return questionnaire if benefits, cost and confidence are appropriate. It should be ensured that respondents are properly rewarded for completion and thereafter returning the questionnaire and as narrated by Dillman (1978) these rewards can depict positive regard such as offering thanks, seeking advice, providing tangible benefits, making the format of questionnaire interesting and offering social validation. (Dillman, 1978) For the sake of minimizing costs it was suggested by Dillman (1978) that a questionnaire should have below mentioned characteristics also along with others: Evade subordinating language Avoid embarrassing questions Avoid inconvenience Make Questionnaire easy, simple and short Minimize such kind of requests intended to acquire personal information. It was further suggested that the sponsor of research should try to earn the confidence of respondents, with confidence is defined as a pledge that has been promised by the sponsor as an advantage of study will occur. Further suggestion made by Dillman (1978) was to provide a token of admiration in prior obtaining response and sponsorship by a genuine authority support enhance confidence. As such questionnaire has been developed by applying these guidelines. Issue of Quantitative and Qualitative Survey By combining the process of research with actual operations of business activities within a business environment posed certain challenges for performing research. Initially the design of research will not predict another participation in mutual entrepreneurial attempts with this particular subject of investigation. As an alternative the intention is to obtain interview from business managers and of the organizations involved in the standardization process and aware of the implication of knowledge management. The interviews and the research from secondary sources will be done to reveal that international businesses are identifying and establishing niche products for the particular markets. There is a dire need sensed by the local entrepreneurs that they must forge and strengthen integration with foreign associates, comprising mergers, joint ventures and acquisitions in nominated value added and superior technology activities and connected services. (Nilsson, H 2002) This development needs such rules that are presently governing the accumulation and recording of surveillance obtained while conducting business. These rules will be placed in accordance with the suggested practice. In this study a structured process of research will be followed to direct the procedures usable in data collection. The process will primarily be intended for assuring that these procedures would be able to offer consistency in the study and is associated with theoretical framework of above-discussed propositions along with research questions. (Carmines, E.1991) Nature of New Data Collected In this paper the data collected through primary and secondary sources will be assessed to perform analysis. In the analysis phase the uniqueness of sample will be scrutinized. The variance will be assessed and the causes for large variances will be searched. The set of data will also be investigated for the sternness of missing data and existence of missing data models as this suggest the procedure of handling such data. (Hair et al. 1998) The stage of analysis will scrutinize the constructs for reliability, content validity, convergent validity and social desirability prejudice. The procedure of confirmatory element analysis is termed as a useful approach for the purpose of constructing validity. This procedure provides an exact view of dependency and is also a formal examination of uni-dimensionality of magnitude. (Steenkamp, 1991) Suitability of Method Support and suitability for this process as a more thorough test of dependability stemmed from the usage of loading certain parameters and detecting variances for determining the consistency of the individual articles as well as the dependability of compound measure that is formed by such articles that are also called as composite reliability. With the support of modern concepts of knowledge management the growth of resource-based industries are being intensified. The objective of these industries is to optimize and develop value added products by utilizing natural resources of countries. The further enhancement of downstream operations is also contributing in the manufacture of superior quality value- added commodities. It has resulted in promoting larger industry and inter-regional connections with the help of standardization process in international businesses. (Susanne, B. 2004) Advantage of Selected Method and Implementation of Survey Analysis of data collected through primary and secondary sources will enable us to conclude that the international businesses are continuously supporting export oriented activities and by exporting manufactured goods, that are expected to increase at a swift rate, annual growth rate will flourish along with building up of foreign exchange reserves of the country. The contribution of resource-supported exports is predicted to increase more, specifically with the renewed concentration on the growth of agricultural-based industries that arise from new and innovative technology blend from biotechnology. The non-resource based commodities are also expected to continue and lead overall exports of manufactured products. International businesses are stepping up their endeavors to enhance their worldwide position and also raising the competitiveness levels of the manufacturing sector supported from the knowledge management. Efforts are being made to expand the coverage of domestic arrangements like free trade agreements to ensure an enhanced access to global markets, commerce, and trade and investment prospects. Proposed Chapter Outline The research will commence with an abstract and chapter 1 with introduction. Aims and objectives of the research will be discussed in this chapter and research questions along with hypothesis will be presented. Literature review will spread on two chapters. The first chapter will cover the definitions of key terms and standardization processes in general. The cross cultural management will be discussed in this chapter along with the effects of domestic cultures on the operation of firms. Conceptual frameworks and different models will also be discussed in this chapter and arguments for standardizations will be given. Chapter three will also be an extension of literature review and will present arguments for standardization in the context of knowledge management. Chapter four will be about the research methodology and ethics. Problems and limitations of research will be presented in this chapter. Data collection methods will be discussed in this chapter and issues of qualitative and quantitative research will also be augmented. Issues of questionnaire i.e. designing of questionnaire will be discussed. Chapter 5 will start with concluding remarks about the results and will end by presenting results and findings of the research. References Anderson, E.W. 1998 Structural Equation Modeling in Practice: A review and Recommended Two-Step Approach. Psychological Bulleting, 103(3), 411-423 Carmines, E. 1991. Analyzing Models with Unobserved Variables: Analysis of Covariance Structures. Beverly Hills: Sage Dillman, D. A. 1978. Mail and Telephone Surveys: The Total Design Method. New York: Wiley-Interscience Hair, J.F. 1998. Multivariate Data Analysis. New Jersey: Prentice Hall Jensen, R. and Szulanski, G. 2004. Stickiness and the adaptation of organizational practices in cross-border knowledge transfer. Journal of International Business Studies. pp. 508-523 Nilsson, H 2002 Evaluation and visualisation of future growth in international communities. Journal of Manufacturing Technology Management : Special Issue 5I3M. (92) : 6, s. 714-716 Pauleen, D.J. 2005. In Praise of Cultural Bias, Mit Sloan Management Review, Winter, 46(2) Susanne, B. 2004. Perspective on business relationships : Experiences from six small suppliers. Journal of Purchasing and Supply Management. - (10) , s. 137-146 Steenkamp, J. 1991 The Use of LISREL in Validating Marketing Constructs. International Journal of Research in Marketing, 8(4), 283-299 Takeuchi, H. 2001. Towards a Universal Management of the Concept of Knowledge, Managing Industrial Knowledge: creation, transfer and utilization edited by Ikujiro Nonaka and David J. Teece, London Sage. Thomas, D. 2002. Essential of International Management. A Cross-Cultural Perspective, Thousand Oaks, Calif: Sage Publications. Read More