Academic journal article The Journal of Developing Areas

The Impact of Organizational Structure on Knowledge Management Processes in Egyptian Context

Academic journal article The Journal of Developing Areas

The Impact of Organizational Structure on Knowledge Management Processes in Egyptian Context

Article excerpt

ABSTRACT

Knowledge management is recognized as important weapon for sustaining competitive advantage and improving performance. The evaluation of knowledge management (KM) performance has become increasingly important since it provides the reference for directing the organizations to enhance their performance and competitiveness.Also, working together involves interdependence, and people must therefore depend on others in various ways to accomplish their personal and organizational goal. This study aims to investigate the difference between manufacturing sector and service sector in Egypt as regards the impact of Organizational Structure dimensions on Knowledge Management activities. The study is carried out through administering questionnaires to 211 employees (110 employees from manufacturing sector and 101 employees from sector companies) from 7 organizations (4 manufacturing organizationsand 3 service organizations). The questionnaire consists of three parts.First part contains personal information.Second part contains Knowledge Management capabilities such as knowledge creation, sharing and utilization. Third part measures the organizational structure dimensions. The statements are assessed by using Likert scale of five points scale ranging from 1 - "highly agree" to 5 - "highly disagree". The questionnaire was developed on the basis of some previous studies. In order to assess the reliability, the reliability coefficient was calculated by using Cranbach's alpha that the values of cronbach's alpha for the variables under study exceed 0.6, which is an acceptable level for the reliability of the variables. There are two variables in the present study:the independent variable is Organizational Structure dimensions, and the dependent variable is Knowledge Management. This study will find out the effect of Organizational Structure dimensions on Knowledge Management in manufacturing and service sectors. This study has multilevel units of analysis which are organizational structure dimensions and knowledge management activities, while the unit of observation is the employees working in the companies in both sectors.

Collecting and analyzing data based on correlation coefficient of Pearson and hierarchal regression showed that there was a direct relationship between organizational structure dimensions and knowledge management more in service sector than the product sector and opened up new questions to be explored by future research. Knowledge management activities in product sector are predicted by centralization and integration dimensions. Also, in service sector, knowledge management activities arehighly predicted by centralization, integration and complexity. For the future research endeavors, it is recommended to investigate the impact of demographic characteristics as control variables and the cultural dimensions on the relationship between organizational structure dimensions and knowledge management activities.It is also recommended to measure the effect of other organizational dimensions such asprofessionalism, personnel ratios

JEL Classifications: O19, F15, B28

Keywords: Knowledge management, Organizational Structure,

(ProQuest: ... denotes formulae omitted.)

INTRODUCTION

Knowledge Management (KM) in the organizational management isan area that has received increasing attention. This is the era of knowledge, in which the creation and management of knowledge have become the central aspects of decisions and economic growth. Corroborating the above-mentioned idea, Terra (2000) affirms that "the main input of workers is not the physical effort anymore, but the capacity to create, learn and develop new concepts, products and services based strictly in knowledge ."

According to Muller e Grings (2003), the competitive factors are knowledge and the abilities ofpeople in each organization. Thus, many organizations have realized the importance of easy systematic actions to identifying, developing, sharing, using and holding back knowledge . …

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