The Effect of Knowledge Process Capabilities and Knowledge Infrastructure Capabilities on Strategy Implementation Effectiveness

The Effect of Knowledge Process Capabilities and Knowledge Infrastructure Capabilities on Strategy Implementation Effectiveness

Sineed Paisittanand (Bangkok University, Thailand), L. A. Digman (University of Nebraska, USA) and Sang M. Lee (University of Nebraska, USA)
DOI: 10.4018/978-1-60566-140-7.ch021
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Abstract

The creation and the use of knowledge have increasingly been regarded as important issues for management. A wide range of studies have investigated this topic during the past decade. Notwithstanding these contributions, very little systematic attention has been paid to the linkages between knowledge capabilities and strategy implementation. Drawing from knowledge capabilities theory and strategy implementation literature, two aspects of knowledge capabilities in an organization and their effect on strategy implementation effectiveness are investigated; knowledge process capabilities (KPC) and knowledge infrastructure capabilities (KIC). This study hypothesized that KPC affects strategy implementation effectiveness (SIE) and that KPC affects KIC. The third hypothesis proposed the effect of KIC on SIE by examining the mediating role played by KIC in linking KPC and SIE. 1,321 middle-managers were sent questionnaires via electronic mail and 162 were returned. The findings indicated the presence of a mediation effect of KIC on the relationship between KPC and SIE. This study provides guidelines for middle-managers to better understand how to develop activities of KPC and KIC for SIE. It is hoped that the results of this study will enhance our understanding of the strategic importance of knowledge in an organization, especially in the area of strategy implementation.
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Introduction

Organizations improve their performances by enhancing current capabilities or developing new capabilities. This capability is complicated and believed to coincide closely with organizational knowledge that can be conceptualized in terms of digested information embedded within organizational routines and processes (Myers, 1996; Davenport & Prusak, 1998; Eisenhardt & Martin, 2000). In order to compete effectively, firms must leverage their existing knowledge and create new knowledge in their organizations (Grant, 1996). To achieve these effects, it is imperative for firms to develop and to utilize knowledge capability. Knowledge capability is important because it enables knowledge to flow across organizational routines, thus facilitating knowledge utilization and creation (Allard, 2003; Helfat & Raubitschek, 2003). It is a belief that knowledge can be conceptualized in terms of digested information embedded within organizational routines and processes. Nevertheless, there are few empirical studies that investigate the relationship between organizational knowledge and strategy implementation.

A review of the relevant literature suggests an open interesting area between general strategy process and KBV. The area of strategy implementation is open to investigation. The area mainly questions how to effectively manage and translate firm strategy into action. New contents and constraints in the knowledge economy pose challenges to implementing strategies. Some organizations have to reengineer organizational processes and restructure organizational units by delayering the number of hierarchical levels or shorten the distance between top management and operational management (Keidal, 1994). Some organizations use information technology instead of humans to monitor and control activities directly (Leonard-Barton, 1995). The traditional strategy process has to adapt to the dynamic environment of the knowledge economy.

Since strategy implementation involves all activities in organizations (Beer, 1996; Nobel, 1999; Gadiesh & Gilbert, 2001) and knowledge capability is an important organizational capability, this study argues that these two areas are linked and support each other. Explicitly, from a review of the literature, little systemic attention has been given to the linkage between knowledge capabilities and the effectiveness of strategy implementation. This study proposes to examine that linkage. Middle-managers were selected as respondents because they are the linkage between the two ends (Floyd & Wooldridge, 2000; Huber & Power, 1985; Nonaka, 1991). At the front-line, middle-managers are responsible for the strategy implementation by mixing and matching organizational capabilities and resources for strategy implementation effectiveness. Furthermore, middle-managers play important roles by integrating both vertical and horizontal knowledge flow (Nonaka, 1991). Their integrations rely on in-depth experiences and situation-specific knowledge. The result of this study aims to benefit the strategy field in bringing about a better understanding concerning the relationship between knowledge capability and strategy implementation effectiveness.

Complete Chapter List

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Table of Contents
Chapter 1
Murray E. Jennex
This is the third volume in the Advances in Knowledge Management and I thought it appropriate to start this volume with some reflection on where KM... Sample PDF
Reflections on Knowledge Management Research and Practice
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Chapter 2
Peter Keen, Margaret Tan
The chapter proposes a simple framework termed ‘knowledge fusion’ to extend the rigor and relevance of knowledge management (KM). It points to some... Sample PDF
Knowledge Fusion: A Framework for Extending the Rigor and Relevance of Knowledge Management
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Chapter 3
Hazel Taylor
This chapter explores the concept of ‘tacit knowledge’ and how organizations can foster the sharing and exchange of tacit knowledge. Various views... Sample PDF
Tapping Tacit Knowledge
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Chapter 4
Andrea Hornett, Eric W. Stein
This chapter adds to our understanding of knowledge management as an evolving body of concepts, relationships, strategies and practices. Using... Sample PDF
Advances in Knowledge Management: Mapping Ideas that Shape Practice
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Chapter 5
Clyde W. Holsapple, Kiku G. Jones
Just as Porter’s value chain model identifies classes of business activity that can be performed in ways that contribute to a firm’s... Sample PDF
Knowledge Chain Activity Classes: Impacts on Competitiveness and the Importance of Technology Support
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Chapter 6
Rahinah Ibrahim, Mark E. Nissen
Tacit knowledge attenuates particularly quickly in organizations that experience discontinuous membership: the coming and going of organizational... Sample PDF
Developing a Knowledge-Based Organizational Performance Model for Improving Knowledge Flows in Discontinuous Organizations
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Chapter 7
Frank Land, Urooj Amjad, Sevasti-Melissa Nolas
The purpose of this chapter is to argue the case that the study of Knowledge Management should embrace considerations of ethics and accountability.... Sample PDF
Accountability and Ethics in Knowledge Management
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Chapter 8
Chay Yue Wah
The study aims to understand the social and organizational factors that influence knowledge sharing. A model of knowledge management and knowledge... Sample PDF
Social Capital and Knowledge Sharing in Knowledge-Based Organizations: An Empirical Study
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Chapter 9
Charlie C. Chen, Rong-An Shang, Albert L. Harris, Zhi-Kai Chen
A knowledge management system (KMS) project transcends functional departments and business partners. The success of KMS implementation is highly... Sample PDF
A Structured Method for Evaluating the Management of a Knowledge Management System Implementation
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Chapter 10
Murray E. Jennex, Stefan Smolnik, David T. Croasdell
This chapter explores knowledge management, KM, and knowledge management system, KMS, success. The inspiration for this chapter is the KM Success... Sample PDF
Toward a Consensus Knowledge Management Success Definition
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Chapter 11
Elsa Rhoads, Kevin J. O'Sullivan, Michael Stankosky
This research chapter investigates the status of knowledge management (KM) practices implemented across federal agencies of the U.S. government. It... Sample PDF
An Evaluation of Factors that Influence the Success of Knowledge Management Practices in U.S. Federal Agencies
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Chapter 12
Kevin Laframboise, Anne-Marie Croteau, Anne Beaudry, Mantas Manovas
This article reports on a study that investigates the knowledge transfer between an information systems/ technology (IS/IT) department and non-IT... Sample PDF
Interdepartmental Knowledge Transfer Success During Information Technology Projects
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Chapter 13
Claudio Vitari, Jennifer Moro, Aurelio Ravarini, Isabelle Bourdon
The purpose of this chapter is to contribute to the improvement of the acceptance of information systems (IS) devoted to the codification and... Sample PDF
Improving KMS Acceptance: The Role of Organizational and Individuals' Influence
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Chapter 14
Michael J. Zhang
While a great deal has been written about how information systems (IS) can be deployed to facilitate knowledge management for performance... Sample PDF
IS Support for Knowledge Management and Firm Performance: An Empirical Study
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Chapter 15
Wei Li, Alexandre Ardichvili, Martin Maurer, Tim Wentling, Reed Stuedemann
The goal of this study was to explore how national (Chinese) culture influences knowledge sharing in virtual communities of practice at a large... Sample PDF
Chinese Culture and Virtual Knowledge Sharing in a Multinational Corporation
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Chapter 16
Gilles Balmisse, Denis Meingan, Katia Passerini
In this chapter, we update earlier research on the state of the art Knowledge Management (KM) tools and present key evaluation criteria that can be... Sample PDF
Selecting the Right Knowledge Management Tools: Software Trends and Key Evaluation Criteria
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Chapter 17
Jörg Rech, Raimund L. Feldmann, Eric Ras
Knowledge management is a relatively young discipline. It has accumulated a valuable body-of-knowledge on how to structure and represent knowledge... Sample PDF
Knowledge Patterns and Knowledge Refactorings for Increasing the Quality of Knowledge
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Chapter 18
Paul Jackson, Ray Webster
This chapter is concerned with engaging end-users in the design and development of knowledge management systems. The identification, capture and use... Sample PDF
Knowledge Elicitation and Mapping: Ontology as an Instrument of Design and Organizational Learning
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Chapter 19
Aurora Vizcaino, Juan Pablo Soto, Javier Portillo, Mario Piattini
Efforts to develop Knowledge Management have increased in recent years. However, many of the systems implanted in companies are still not greatly... Sample PDF
Helping to Develop Knowledge Management Systems by Using a Multi-Agent Approach
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Chapter 20
Mirghani Mohamed, Michael Stankosky, Vincent Ribière
The purpose of this chapter is to examine the requirements of Knowledge Management (KM) services deployment in a Semantic Grid environment. A wide... Sample PDF
Adopting the Grid Computing & Semantic Web Hybrid for Global Knowledge Sharing
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Chapter 21
Sineed Paisittanand, L. A. Digman, Sang M. Lee
The creation and the use of knowledge have increasingly been regarded as important issues for management. A wide range of studies have investigated... Sample PDF
The Effect of Knowledge Process Capabilities and Knowledge Infrastructure Capabilities on Strategy Implementation Effectiveness
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