Organisational Memory and its Impact on Competitive Strategies in IT Companies in Jordan

Organisational Memory and its Impact on Competitive Strategies in IT Companies in Jordan

Ghassan Issa Al Omari (Amman Arab University, Amman, Jordan), Manar Reyad Maraqa (Al-Balqa Applied University, Amman, Jordan) and Mufleh Amin Al-Jarrah (Amman Arab University, Amman, Jordan)
Copyright: © 2019 |Pages: 19
DOI: 10.4018/IJSKD.2019100104

Abstract

This study aims at measuring the impact of organisational memory (OM) on competitive strategies in information technology (IT) companies in King Hussein Business Park (KHBP) in Amman, the capital of Jordan. KHBP comprises of 20 companies, which will form the research population. A random sample was chosen with the sampling unit constituting of 63 out of originally 74 senior employees. The study adopted a descriptive analytical approach and a structured questionnaire was used as a study tool for the purpose of measuring the variables of the study. The outcomes of the study show that OM and its processes (knowledge acquisition, retention, and retrieval) have an impact on both types of competitive strategies (differentiation and lower cost strategies) in Jordan's IT companies. The study presented key recommendations such as: enhancing the role of OM in IT companies given its clear impact on competitive strategies; carrying out additional studies on OM to look deeper into its dimensions, processes, justifications, hindrances, and strategies.
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Introduction

21st century information technology (IT) companies are increasingly faced with many challenges and changes in the field of information and communication technology, particularly with the major rise in competitively, globalisation, and the ever more significant role of knowledge and information. For such companies to secure a place in the future of this field, they need to have a clear perspective vision that enables discovering and seizing potential opportunities. Nonetheless, their vision should also prepare them to identify and avoid risks; widening their understanding of their organizational memory (OM) and technical competences will allow for better problem solving and decision-making.

The unique nature of knowledge is evident in the fact that it is a resource, which does not suffer scarcity and where the law of diminishing returns does not apply. In fact, knowledge applies to the law of increasing returns (Uma Mageswari, Sivasubramanian, & Srikantha Dath, 2015a). It is the only resource that is built by accumulation and does not decrease after usage. However, IT companies may suffer huge losses in its accumulated knowledge for multiple of reasons, such as employee turnover, resignation, or death. This would undoubtedly negatively impact the decision-making and problem-solving of such companies. Therefore, IT companies need to provide more attention to the subject of OM, which empowers workers with the tools to easily access technical knowledge stored in their departments. This also equips workers with the skills to retrieve this information and use it in the timely solving of complex problems and making sound decisions (Perez & Ramos, 2013).

This also highlights the need to have a suitable competitive strategy to be used by IT companies in order to reach competitive advantages, which raise their status in the market, both locally and internationally. The study at hand will look into this issue through analysis and explanation using scientific methods.

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