The purpose of this chapter is to investigate a framework for knowledge-based leadership for improved risk management in state-owned enterprises in South Africa. The study empirically explored the influence and role of knowledge-based leadership in driving knowledge management and human resource management practices for effective knowledge risk management. Exploratory sequential mixed methods research design was used as the overall strategy to guide data collection for the project. In the qualitative strand, data were gathered through interviews with 20 purposively nominated human resource managers. In the quantitative strand, 145 responses collected through survey instrument were used to test variables discovered in the first strand. A lack of knowledge-based leadership contributed to the absence of knowledge strategy and practices, knowledge-driven culture, structural configurations and roles, and ineffective tacit knowledge loss risks management. The chapter proposes a knowledge-based leadership framework to mitigate tacit knowledge risks in state-owned enterprises.
TopIntroduction And Background
Leadership and knowledge management (KM) have always been regarded as critical success factors to drive and sustain competitive edge in knowledge-based competition and provide the required knowledge strategy and capabilities to mitigate risks inherent in tacit knowledge loss. A knowledge-based view theory (KBVT) of the firm is a theory of the knowledge economy that calls for leadership and management practices that prioritise the development of knowledge strategy and leadership to ensure the investment in capabilities aimed at effecting the protection, application, transfer and retention of the firm-specific intangible assets. Such leadership is characterised as knowledge-oriented or knowledge-based leadership or knowledge leadership in the knowledge management and leadership literature (Gürlek & Cemberci, 2020). For the purpose of this chapter, Knowledge-based leadership (KBL), Knowledge-driven leadership (KDL) and Knowledge-oriented leadership (KOL) are used interchangeably to mean knowledge leadership. KBL plays a critical role in nurturing enterprise knowledge, sourcing, transferring, protecting and managing knowledge assets to ensure superior business performance and innovation capacity (Sadeghi & Rad, 2018; Birasnav, Albufalasa & Bader, 2013). However, the extant literature indicates that KBL is not yet fully developed and remains a serious issue in many companies around the globe (Zieba & Schivinski, 2015). State-owned enterprises (SOEs) are seen as knowledge-intensive business enterprises and learning organisations. Many of them in South Africa are lagging knowledge-based leadership (Phaladi, 2021).
Globally, SOEs are used as key drivers and contributors to gross domestic product (GDP) by developing and developed economies. SOEs make up for a large share of market capitalisation, investment and job creation and remain crucial in key industries, such as water utilities, energy generation and distribution, mining, aviation and defence space, research and innovation, developmental finance sector and physical infrastructure investment and development (Benassi & Landoni, 2019; Clò et al., 2016). Employee turnover is a global problem facing many companies (private and public) in both developing and developed economies (Allen & Vardaman, 2021). Studies show that SOEs as knowledge-intensive business enterprises are operating in a highly stretched competitive labour market wherein the demand for the highly technical and specialised skills far outstrips the existing supply capacity (Wöcke & Barnard, 2021; Roome, 2012). Their role in key industries suggest that SOEs are dependent on highly specialised knowledge, skills and competencies to execute their business mandates. Nevertheless, many of them face a serious problem of knowledge loss risks due to high staffing turnover (voluntary and involuntary) and a lack of retention strategies (Phaladi and Ngulube, 2022; Phaladi, 2022a, 2021). Critical success factors, such as a lack of leadership and management practices to address all these manners of the knowledge loss risks, are flagged as serious problems in the knowledge management literature (Sandelin, Hukka & Katko, 2019; Donate & de Pablo, 2015). Knowledge-related challenges of the companies operating in the knowledge-based economy and competition require knowledge-oriented leadership.