AD ALTA
JOURNAL OF INTERDISCIPLINARY RESEARCH
CORPORATE CULTURE AS AN IMPORTANT FACTOR IN THE IMPLEMENTATION OF
KNOWLEDGE MANAGEMENT
a
JAROSLAVA BUČKOVÁ
University of Prešov in Prešov, Fakulta manažmentu,
Konštatntínova 16, 080 01 Prešov
email:
a
buckova.jaroslava@gmail.com
Abstract: Knowledge and knowledge management are now increasingly seen as a
critical part of the corporations. The increase development needs of corporate
knowledge as well as innovative activities, whilst underlining the need and importance
of corporate culture, because the content of the corporate culture consists of basic
assumptions, values, norms of behaviour that are shared within the corporation and
externally are manifested through behaviour and artefacts. That's why the corporate
culture inherently clearly affects the level and success in implementing knowledge
management. This article aims to highlight the importance of corporate culture in
building knowledge management and point out key elements that influence corporate
culture supporting knowledge sharing.
Keywords: Corporate culture. Corporation. Knowledge. Knowledge management.
1 Introduction
Knowledge management has emerged as one of the most
important area in management practices and is established as a
basic resource for firms and economies. Peter Senge believes
that the only competitive advantage in the world's future will be
the knowledge owned by corporation, as well as the ability of the
corporation to continue learning (Duffy & Jan, 2000).
Knowledge management is regarded as collection, distribution
and efficient use of knowledge resources. It is a process of
knowledge creation, validation, presentation, distribution and
evaluation. Knowledge management is a multi dimensional
construct with a large number of interrelated attributes.
However, its three components or attributes that are commonly
found in the literature are: knowledge acquisition or adaptation,
knowledge dissemination or sharing and responsiveness to
knowledge or knowledge use.
The knowledge management practices in the corporations
depend on some prerequisites. One of the important pre-
condition for effective knowledge management is corporate
culture. Thus, one needs to understand what the culture of the
corporate is, and one needs to understand whether or not this
culture will enable knowledge management or hinder knowledge
management. Furthermore, an excessive focus on technical
issues rather than social aspects, results in poor knowledge
management practices or altogether failure to comply the
practices in the corporations. Specifically, there is lack of
empirical evidence about what are the specific cultural variables
that support knowledge management processes and help in
development of knowledge culture (Oliver and Kandadi, 2006).
Consequently, this necessitates understanding the success and
failure of knowledge management within corporations by
identifying and assessing the preconditions that are necessary to
flourish the endeavour. Many scholars and practitioners (Lopez
et al., 2004; Kulkarni et al., 2007) believe that a corporate
culture that is supportive and or adaptive can enable the
successful implementation of knowledge management
technologies as well as practices.
2 Literature review
This section rigorously reviews the relevant literature to point to
the importance and the substance of knowledge management and
characteristics of corporate culture, as well as the relationships
between them.
Standards Australia (2005) defines knowledge managements as
the design, review and implementation of both social and
technological processes to improve the application of
knowledge, in the collective interest of stake holders. Nonaka
(2007) prefers to call knowledge management knowledge-based
management, connecting people to people and people to
information to create competitive advantage. Bergeron (2003, p.
54) defines knowledge management in this way: “Knowledge
management is a deliberate, systematic business optimization
strategy that selects, distils stores, organizes packages, and
communicates information essentials to the business of
a company in a manner that improves employee´s performance
and corporate competitiveness.” According to Collison (2005) is
knowledge management an integrated, systematic approach to
identify, manage, and share all of the department’s information
assets, including databases, documents, policies and procedures,
as well as previously unarticulated expertise and experience
resident in individual officers.
Knowledge management implementation in corporation will aid
in effectively and efficiently solving learning problems and
apply strategic planning and dynamic decision making (Gupta,
2000). Lopez noted that knowledge and corporate capabilities
are forms of strategic capitals that promote the corporation's
long-term goals and have strategic application in dynamic
contexts. One of the key goals of knowledge management is to
transform implicit knowledge to explicit knowledge; this leads to
a reduction in the loss of valuable knowledge due to
performance declines, as well as a reduction in the loss of
corporate memory (Liebowitz, 2015). A comprehensive
definition of knowledge management, which includes many
aspects of knowledge management and serves as a basic
definition of the concept in this paper is presented by Davenport
and Prusak, i.e., the "exploitation and development of knowledge
assets in the corporation, in [such] a way that goals are achieved"
(Davenport & Prusak, 1998, p. 47). Generally, we can say that
knowledge management is a process that helps companies to
detect, select, organize and distribute important skills and
information that is not usually accessible or organized, and can
be considered as corporate memory. Many scholars and
practitioners: Lopez et al., 2004; Kulkarni et al., 2007 and others
believe that a corporate culture that is supportive or adaptive can
enable the successful implementation of knowledge management
technologies as well as practices. Schein (2004, p. 34) defined
corporate culture as: “A pattern of shared basic assumptions that
was learned by a group as it solved its problems of external
adaptation and internal integration that has worked well enough
to be considered valid and therefore to be taught to new
members”. This is the most widely used definition. Schein
(2004) posited that culture is the most difficult attribute to
successfully achieve by many corporate. Schein corporate model
illuminates culture from the standpoint of three cognitive levels
of corporate culture (basic assumptions, values and artefacts).
Cooke and Lafferty (1987) came up with the concept of
corporate culture inventory define culture as the behaviours that
members believe are required to fit in and meet expectations
within their corporation (Easterby-Smith, 2011).
According to Cooke and Lafferty, corporate culture inventory,
measures twelve behaviors of norms that are grouped into three
general types of culture:
constructive cultures, in which members are encouraged to
interact with people and approach tasks in way that help
them meet their higher satisfaction needs.
passive/defensive cultures, in which members believe they
need to interact with others in ways that might not threaten
their own security.
aggressive/defensive culture, in which members are
expected to approach tasks in forceful ways to protect their
status and security (Easterby-Smith, 2011).
Hofstede (2005, p. 47) called culture the “software of the mind”.
Notwithstanding the numerous definitions that exist, there is no
consensus regarding a single exact definition of corporate
culture. From the above, corporate culture is reflected in the way
people perform tasks, set objectives and administer the necessary
resources to achieve set objectives. Culture affects, the way
- 36 -