LITERATURE REVIEW ON KNOWLEDGE SHARING IN SMEs
Lately, businesses operates in challenging environment which is characterized by intensive competition, globalization, high levels of technology, varying organizational structures, as well as growth of knowledge management. Sharing of knowledge has been found to be the most important to of guiding the Small and Medium size Enterprises (SMEs) in this kind of environment. Consequently, knowledge management has become a significant tool in any organization for it to survive in this challenging business environment, (Lang, 2001). This is based on the claim that, enterprises that values knowledge management are in a better position of coping with the changing business environment. In this context, knowledge management can be defined as a subject that is intended to better the performance of organizations as well as individuals through the preservation and controlling the current as well as future value of assets of knowledge. According to Rodney & Renee (2001), knowledge management is a vital aspect in achieving as well as maintaining sensation for improvement in effectiveness as well as advancement.
Arguably, the impacts of knowledge management can best be applied in the case of SMEs. Notably, SMEs are characterized by a relatively lower number of employees which makes them more vibrant and responsive as compared to large enterprises; thus, they are geared up to acquire new knowledge. Nevertheless, Bradley, Huigang & Yajiong (2011), asserts that as compared to larger enterprises, the SMEs are susceptible to loss of significant human resources. This explains the reason why the SMEs consider knowledge management as a basil tool for their survival in the competitive environment. According to Shin-Yuan, Alexandra, Hui-Min & Wan-Mei (2009), knowledge management among the SMEs has proved to be a bit challenging. The major challenges in this case are attaining an objective blueprint of knowledge management essentially on sound as well as formal research which amalgamates practitioners and researchers; and well-established knowledge management tools, strategies as well as procedures for the managers, through linking practice and theory.
Barriers in knowledge sharing
Arguably, barriers of sharing knowledge among the SMEs have aggravated the challenges that they face in knowledge management, (Catherine & Kevin, 2003). Knowledge sharing encompasses behaviors that include swapping of information. Studies have indicated that, installation of knowledge management systems more especially among the SMEs has been a major problem for some time now; which has contributed to the limitations that are being experienced in knowledge sharing. One of the barriers of sharing knowledge in the context of SMEs is the workforce. It is evident that, SMEs tend to magnetize individuals with low education levels whom they spend less on salaries as compared to the large enterprises who offer attractive salaries for highly skilled individuals, (Richard & Carla, 2001). Secondly, based on the assumption that majority of the SME’s workforce have low skills in IT, it is challenging to install knowledge management systems which promotes sharing of knowledge. Thirdly, many a time employees are never motivated to approve knowledge sharing systems within the organizations. Fourthly, it is very costly for the SMEs to train their employees to apply IT in sharing of knowledge. Lastly, Shin-Yuan, Alexandra, Hui-Min & Wan-Mei (2009), argue that, there is lack of process mapping in most SMEs. As such, activities within the organization are not clearly defined; hence, limiting flow of information.
Gender and knowledge sharing according to social sciences
There are a number of factors that influence; or rather, impact sharing of knowledge more especially within the SMEs. Among these factors are; technology, culture, demography, as well as gender. Although gender cannot be used to predict the citizenship behavior of organizations, it has been found that it plays a significant role in sharing of knowledge, based on the fact that it has an influence on styles of communication in any organization. It is evident from the social sciences that the perception of males on sharing of knowledge is different from those of females, (Catherine & Kevin, 2003). Studies indicate that in most cases, interaction of gender takes place according to the alleged culture of social interaction with respect to the culture of sharing knowledge. To be more precise, there is a positive correlation of social interaction culture and knowledge sharing culture among females in most SMEs. Based on the conditions to which female employees are usually subjected to, they are cautious in sharing their knowledge with their comrades. However, they may be able to learn to share with their comrades with time only if there is a positive culture of social interaction, (McAdam & Reid, 2001).
Methods of sharing information
Knowledge sharing in the SMEs occurs in different ways. To begin with, it occurs during formal occasions. For instance, are meetings that are held regularly within the SMEs. In most case, the management organizes meetings with their employees as well as for the employees themselves where they discuss certain issues concerning their organization, (Sherif & Hai, 2009). Through these meetings, they are able to share their knowledge which enhances better performance. Secondly, the management also organizes training sessions, seminars and workshops for their workforce. Through these kinds of arrangements, all the members of organizations are educated on a given issue; hence, facilitating exchange of knowledge among the employees as well as their management. Lastly, knowledge sharing also occurs during informal occasions such as; during tea break, lunch break, as well as casual conversations, (Lavi & Leidner, 2001).
Preference method of knowledge sharing
Sharing of information among the SMEs mostly occurs online as well as hand written reports. For instance, studies indicate that, managers and owners of SMEs share their knowledge through online networking with people, who are undertaking similar businesses, (His-An, Robert & Yuwen, 2011). This is the main reason why these managers are involved or rather participates in one business network or various networks. Through these networks, the managers and owners of SMEs are able to seek advice as well as share their knowledge as far as their business is concerned. Thus, ICT has been categorized as one of the important factor in sharing of knowledge. The willingness to share knowledge is further promoted by the confidence and familiarity of applications based on the internet. Moreover, various SMEs produce business reports from time to time. Undeniably, these reports can be used by other organizations in improving their operations within the ever changing business environment, (Barry, Miguel & Fenio, 2004).
As a matter of fact, there are various methods that can be used to encourage sharing of knowledge among the employees. One of these methods is offering rewards. In most SMEs, a system has been put into place which promotes rewarding of employees who takes the opportunity of sharing what they know with their comrades, (His-An, Robert & Yuwen, 2011). For instance, individuals who undertake the initiative of training his/her colleagues in a given department within the organization are identified and rewarded accordingly. As such, such individual is motivated to share their knowledge. Another effective method of encouraging knowledge sharing is through monitoring and policy. Based on the fact that, knowledge management has become a vital tool for the survival of the SMEs, knowledge sharing policy has become one of their strategies of enhancing knowledge management. Besides, mechanisms are most cases put in place which facilitates monitoring of knowledge sharing to ensure effective running of the organization, (Bani-Hani, Hinde & Jackson, 2010).
Impact of leadership in knowledge sharing among employees
Leadership plays a significant role in knowledge sharing among the employees in their organization. Arguably, leaders generate the necessary conditions that enhance employees to apply as well as nurture their skills, to add their own knowledge to collection of knowledge of the organization, as well as to access easily appropriate knowledge, (Bradley, Huigang & Yajiong 2011). Lately, the roles of leaders have expanded to encompass creation and sharing of knowledge, unlike before when they only acted as the caretaker of knowledge and information. Leaders play a pivotal role as far as knowledge sharing is concerned. Besides, they are in a position to amplify self-efficacy of the employees as well as controlling their working atmosphere. In addition, leaders recognize and lessen the concerns of employees in sharing their knowledge, (His-An, Robert & Yuwen, 2011 ). Precisely, leaders can identify and remove any possible barriers to effective knowledge sharing. Leadership in this case acts as a catalyst for the inspiration and cultivation of the happening of knowledge sharing.
As a matter of fact, different kinds of leadership relates with the workforce in different ways as far as decision making is concerned. For instance, according to Bradley, Huigang & Yajiong (2011), empowering leadership involves employees in decision making. The employees are given a chance to give their opinion on how a certain issue should be handled under the guidance of their leaders. Moreover, in some cases the employees are empowered to decide on matters that are related with their job on their own. According to His-An, Robert & Yuwen, (2011), empowering leadership has the following attributes: leading by example, coaching, showing concern, allowing participation in decision-making, and informing.
Relationship of knowledge sharing and performance, teamwork environment and trust
Unquestionably, there is a positive correlation between work performance and knowledge sharing. Rodney & Renee (2001) assert that, knowledge sharing facilitates performance; or rather, output of employees. For instance, in decision-making, more especially under empowering leadership, knowledge sharing is very crucial among the employees is inevitable if a decisive conclusion is to be reached. As mentioned early, empowering leadership has five attributes. Research indicates that, these attributes are the contributory factors to knowledge sharing. For instance, through example, the leader trains his/her followers the attribute of knowledge sharing through sharing his/her own knowledge with them, (Handzic, Lazaro & Toorn, 2009).
On the other hand, teamwork has a considerable impact on knowledge sharing, (Bradley, Huigang & Yajiong 2011). It has been proved that, members of a team with a teamwork spirit are more than willing to share their knowledge as well as get feedback among themselves. Hence, individual have a better chance of learning from one another; which leads to an increase in their performance. This explains why performance of a team is better as compared to that of few efficient individuals. Practitioners as well as intellectuals affirm that the effectiveness of the SMEs depends on how knowledge is shared among units, teams, and individuals, (His-An, Robert & Yuwen, 2011). This is because the immediate social atmosphere provides vital information which enable individuals to develop veracity and devise awareness, behaviors as well as attitudes. According to social psychology studies, work teams have a greater social influence possibly due to the assertion that individuals tend to identify themselves with their work team, (Bradley, Huigang & Yajiong 2011). Consequently, team work environment creates a conducive environment which promotes sharing of knowledge.
Trust is another important factor that promotes knowledge sharing. This is the willingness of team members to acknowledge susceptibility fundamentally on the expectation teammates’ honesty, competence, and generosity. As such, trust and commitment among the team members promotes effective communication. This is based on the fact that, individuals are more willing to share their knowledge on trust basis. This why Bradley, Huigang & Yajiong (2011), argues that, knowledge sharing in a team work can only be possible if there is trust of one another’s capabilities. Thus, social relationships based on trust determine the attitude of individuals toward knowledge sharing.
Information technology and knowledge sharing
Notably, governments have taken the inventiveness of promotes application of information technology among the SMEs. However, the SMEs are yet to realize benefits of this technology, explaining the reasons why most of them have poorly developed IT systems, (Bani-Hani, Hinde & Jacjson, 2011). Studies indicate that, information technology has a positive impact on sharing knowledge. Based on trained employees, degree of use, as well as attitudes towards information technology, knowledge sharing can be promoted. In most cases, communication among the employees takes place by use of technology. Although it is possible to still communicate through other means, technology makes knowledge sharing easier and more regular. According to (Hsiu-Fen & Gwo-Guang, 2004), technology is seen by employees as a sign of the support of the government for knowledge sharing.
Gap in the literature
Knowledge management is one of the recent issues in the field of management. Therefore, few papers have been produced tackling this issue. Given the ever increasing number of SMEs and their significant contribution to the economy as well as employment, there is an opening for the publication of research literature to help the SMEs to appreciate the feasibility of knowledge sharing, (Chang & Lee, 2007). Precisely, there is a gap in literature in that, few studies have been undertaken in this area; therefore, there is still room for more studies to be undertaken.
Edward Cullinan Architects is a good example of how knowledge sharing impacts SMEs. The company, which was formed forty years ago, is based in the London and it mainly deals with designing innovative buildings. By June 2003, the company had about 30 employees but the number had increased to 39 by 2005. In order to facilitate knowledge sharing within the organization, it was recommended that its office reorganized in such a manner that, the employee could be able to see what their colleagues were doing, (Edward Cullinan Architects, 2005). Precisely, the employees of the company work in an open studio and each and every individual has an opportunity to see and hear what is being done on the board. In this case, the workforce can be able to share knowledge by moving regularly and freely within the studio. To further promote knowledge sharing, computers have been put in place instead of the drawing boards.
Additionally, there are regular meetings on Fridays during lunch time. The employees are not allowed to plan for external meetings during this period; hence, the attendance level is high. Moreover, weekly CPD sessions are usually undertaken on Wednesdays. This is usually handled by rotating groups of three individuals. During these sessions, the workforce has an opportunity to share on the projects that they have been working on throughout the week. Lastly, the younger members among the workforce are given an ‘aunt’ or ‘uncle’ who guides them up to the point where they are ready to undertake their part three exams, (Edward Cullinan Architects, 2005).
In order to improve their knowledge sharing strategy, it was recommended that their workplace be redesigned. This explains the reason why the company relocated to the present premises in 1991. This allowed for installation of more computers instead of drawing boards as mentioned early. The large monitors have been replaced by flat screens to create room for easy movement within the working area. Induction has also been introduced in the company, and each new employee is taken through a checklist by one of the management team members. Since the implementation of this new strategy, a significant growth has been observed in the company. This is one of the reasons why the workforce was increased from 30 to 39 by the end of 2005, (Edward Cullinan Architects, 2005).
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