Tuesday, March 12, 2013

Malaysian Knowledge Management and Innovation



Nations seek to develop new ways of competing on the market. As the world economy sputters along the race for development continues at a renewed pace. The Internet has afforded new ways of using information and those industries and nations that can capitalize on knowledge acquisition the most are likely to see growth in their revenue and subsequent GNP. 

Malaysia has increased in financial and social prominence throughout Southeast Asia. Many of the organizations have capitalized on the new knowledge based technologies to create international competitiveness and improve on national output (Özçelik & Taymaz, 2002). They were able to find methods of gaining, sharing, and implementing such knowledge. 

Yet such gaining, sharing and implementing is not a onetime event. Effective innovation requires a cultural change that creates sustained momentum (Davenport and Prusak, 1998). People should become accustomed through their daily routines to this sharing and developing new knowledge. 

Effective application of innovation requires the ability to put to strong use what is learned. Accordingly, knowledge gaining, knowledge sharing, and application are key components (Zheng, 2005). Such processes of learning, sharing, and implementation should be as efficient and effective as possible. 

Capitalizing on knowledge networks requires the ability to effectively tie new information together in new ways to solve problems. Gaining knowledge alone is not enough. It must be analyzed and connected to other knowledge create and effective solution. Organizations that are more able to effectively capitalize on this connecting of information have significant competitive advantages. 

Research by Tan and Mohd (2010) help to highlight innovative knowledge sharing in Malaysia. A total of 674 large manufacturing firms were found in the Malaysian states of Selangor, Pulau Pinang,
Johor, Kedah, Kuala Lumpur, and Perak for possible testing. Of these potential contributors a total of 171 usable survey responses were returned for analysis. The purpose of the study was to study the influence of knowledge management effectiveness on aspects of administrative and technology innovation.

Results:

-Knowledge management has a significant impact on firm innovation. When firms are able to share and manage knowledge both internally among agents and externally among partners they are able to link information for potential solutions.
-Knowledge gained should be put into training programs for employees and then applied to the workplace.
-Pathways should be developed that allow for transference of knowledge from company to employee, employee to employee, and employee to company.
-Companies should help to encourage employee problem solving abilities.
-With effective knowledge management firms will better be able to capitalize on technology and administrative innovations.

Analysis: 

Organizations that seek to develop stronger innovation networks to capitalize on both administrative and technological advantages need to first create these proper networks and then the cultural routines to ensure the programs are in proper use. New knowledge is gained through these networks by connecting information together in unique ways to solve problems and develop more effective solutions. Effective development of information sharing networks between organizations can lead to further development of national growth. 

Davenport, T., & Prusak, L. (1998). Working knowledge. How organization manage what they know. Boston, MA: Harvard Business Review School Press.

Tan, C. & Mohd, A. (2010). An empirical study of knowledge management effectiveness and organizational innovation in Malaysia manufacturing firms. Proceedings of the International Conference on Intellectual Capital, Knowledge management & Organizational Learning. 

Özçelik, E., & Taymaz, E. (2002). Does Innovativeness Matter for International Competitiveness in Developing Countries? The Case of Turkish Manufacturing Industries, (ERC Working Papers in Economics 01/07), [online], Ankara, Turkey: Middle East Technical University, Department of Economics, Economic Research Center. http://www.erc.metu.edu.tr/menu/series01/0107.pdf

Zheng, W. (2005). The impact of organizational culture, structure, and strategy on knowledge management effectiveness and organizational effectiveness. Published Doctoral of Philosophy dissertation. University of Minnesota, United States: Faculty of The Graduate School.

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