Blog post by Stephen Dale of Business Information Review Editorial Board
The research paper by Cheng Sheng Lee and
Kuan Yew Wong in the December of issue of Business
Information Review raises a number of
interesting points that deserve wider discussion. The research focused on the
effectiveness of knowledge management techniques in Small to Medium Enterprises
(SME’s) in Malaysia. Though the scope of the research is limited to one
geographic region, the findings could – and should – be tested against a wider
and more international cohort.
According
to the research paper, in Malaysia, SME’s account for up to 98.5 percent of the
total number of businesses and contribute up to 33.1 percent of GDP. They
employ 57.5 percent of the total workforce.
It
is clear from this data that SME’s make up a significant, and growing, contribution
to the UK and European economies. It seems quite odd, therefore, that so little
research has been undertaken into how knowledge management strategies and
techniques have been utilized within and across this sector.
The
Cheng Sheng Lee/Kuan Yew Wong research gives us some
insights that could be tested against a wider geographic sample of SMEs. Some key
points from the research as follows:
· The literature research
identified that the size of an organization affects its behaviour and structure
(Edvardsson, 2006; Rutherford et al, 2001) and how it influences the adoption
and implementation of KM (Zaied et al, 2012).
· SME’s should not be perceived
as homogenized groups. They themselves can be categorized according to relative
size, e.g. micro, small and medium, which can influence the way that KM is
implemented.
· In terms of human capital,
medium-sized businesses (SMEs) focus more on codification strategies (explicit
knowledge) whereas micro-sized businesses (SMEs) are more dependent on
socialization strategies.
· An obvious point, but
reinforced by the research – the need for better infrastructure, such as tools,
office layout, rooms etc. increases as the organizations grows.
· Knowledge Maturity is a key
attribute that should be monitored measured. The value of an employee will
increase in terms of their contribution to the success of the organization as
they progress from beginner, intermediate and advanced staged of KM maturity.
Clearly the impact of an employee leaving without an effective knowledge
transfer process will be more keenly felt by a small organization. [NB. This is
not an excuse for large organizations to treat this is a lower priority!]
· Company size does make a
difference to KM performance measurements. A number of factors are proposed,
e.g. impact of high turnover, limited resource redundancy in smaller organizations,
smaller organizations will likely prioritize implementation processes over
performance measurements etc.
· KM performance measurement
(KMPM) is still new for SME’s, as the majority of analyst reports and case
studies remain focused on large organizations, with a mindset that SMEs do not
need or are not ready for KMPM.
Overall, this is an excellent piece of
research, and highly recommended reading, which despite it’s limited sample
size and geographic boundary, gives some very useful insight into how KM is
being implemented across SME’s. Reassuringly it shows that a growing number of
SME’s see KMPM as vital to the growth and success of their business.
The paper is also a wake-up call to
academia, research, analyst and consultancy organizations in that we need for
more definitive and comprehensive studies in this field, to embrace UK, Europe
and other key industrial and economic zones.
To finish with a quote from the authors:
“Enough with large organizations; SMEs should not be neglected as they play a
major role in a country’s economic growth”. Who could disagree?