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Organizational knowledge capability and knowledge sharing

The core capabilities of knowledge organization are important in providing information and knowledge-based services. Wiig (1994) claimed that KM initiatives will fail if the investments of organizational resources and capabilities are inappropriate. In other words, an effective KM should contribute to organizational performance through the development of organizational knowledge capability (Gold et al., 2001). Lee’s (2001) empirical research revealed that an organizational capability to learn or acquire the needed knowledge from other organizations is a key mediator for successful knowledge sharing. Thus, the enhancement of knowledge capabilities as the foundation of organizational development is beneficial for organizational effectiveness. Normally, knowledge sharing which are encouraged in knowledge intensive organization is regarded as a core knowledge process (Debowski, 2006) and organizational capabilities invest on process improvement, work effectiveness, learning, and supporting technology that facilitate knowledge transfer and sharing. Hence, these are needed if a firm strengthens organizational knowledge capability to reap the effectiveness and efficiency of knowledge sharing. Based on the socio-technical research in KM, this study intends to explore the effects of organizational knowledge capabilities (social OKC and technical OKC) on the behavior of knowledge sharing.

3.1.1 Social OKC and knowledge sharing

Organizational activities are usually composed of many different social constructs,

including culture, structure, people, (Chaung, 2004; Gold et al., 2001; Lee and Choi, 2003) and their interrelation. Many studies put attentions on the sharing of knowledge resources, emphasizing the importance of organizational culture, collaborative relationship, shared motivation of knowledge workers, mutual trust, and social interaction (Lee and Kim, 2001;

Tsai, 2002; Yang and Wan, 2004). Widen-Wulff and Ginman (2004) concluded that social capital which contributes to the mechanism of knowledge sharing can provide an effective framework to explain how group resources are available in individual setting. Lee and Kim (2001) believed that a reward system and corporate culture both are effective means to change people’s attitudes and behaviors more sustained in different organizational stages. Thus, we assume that social resources can be deployed effectively by organizational capability, which is positively on knowledge sharing. As Coakes et al. (2002) indicated that knowledge sharing is regarded as the process of social construction, which involves social collaboration among different business functions. Therefore, the following hypothesis can be drawn:

Hypothesis 1: Social OKC have a positive effect on the knowledge sharing behavior in an organization.

Structural knowledge capability

Organizational structure is frequently mentioned as the solution to encourage people to share and apply knowledge within organization (Janz and Prasrnphanich, 2003). Normally, two structural factors are presented in organizational activities. First, an appropriate incentive and reward mechanism enhances the motivation to share knowledge (Davenport and Prusak, 1998; Hall, 2001). For example, Hall (2001) exhibited the categories of reward for knowledge sharing – namely, hard and soft rewards. The former consists of economic pay, learning opportunities, and career advancement, and the latter includes enhanced reputation and personal satisfaction. Second, political directives are effective forces for inspiring employees’

motivation to share knowledge (Syed-Ikhsan and Rowland, 2004). Moreover, King et al.

(2002) reported that organization needs to motivate individuals to contribute their knowledge into a KM system, which is an important theme for organization to retain intellect capital.

Therefore, we propose:

Hypothesis 1a: Structural knowledge capability has a positive effect on the behavior of knowledge sharing in an organization.

Cultural knowledge capability

Organizational culture, the core beliefs, values, and social norms of the collective members in an organization, is a frequently-cited factor for successful knowledge activities (Davenport et al., 1998; Debowski, 2006). Specifically, the cultural factor is imperative to encourage and support knowledge creation, sharing, and application (McDermott and O’Dell, 2001; Goh, 2002). De Long and Fahey (2000) identified that culture influences the behaviors central to KM activities (creation, sharing, and use) in four different ways. Cummings and Teng (2003) stressed that learning culture affects knowledge sharing, which focuses on the recipient context. Goh (2002) proposed that cooperative and collaborative culture is an important prerequisite to drive the propensity for high knowledge sharing. Janz and Prasarnphanich (2003) revealed that knowledge-centered culture is an effective factor for cooperative learning.

Thus, the effectiveness of organizational culture is one of the critical capabilities influencing a firm’s survival and success (Yang and Wan, 2004). Therefore, we propose:

Hypothesis 1b: Cultural knowledge capability has a positive effect on the behavior of knowledge sharing in an organization.

Human knowledge capability

Teams, relationships, and networks are the most important elements to transfer and share knowledge effectively (O’ Dell et al., 1999). Szulanski (1996) and Ko et al. (2005) proved empirically that an arduous relationship is a significant barrier when knowledge sharing occurs. Social interaction, employees who communicate frequently with each other, has a positive correlation on organizational knowledge sharing that was supported (Connelly and Kelloway, 2003; Tsai, 2002). As noted by Yang and Wan (2004), social interactions can be efficaciously used for transferring tacit knowledge. Thus, working closely with others and having a familiarity between the source and recipient in an organization are important antecedents of knowledge sharing - namely, shared understanding (Ko et al., 2005). Human knowledge capability is conceptualized herein under two important aspects. First, the relationship between the knowledge owner and recipient is appropriately constructed. Second, the degree of acquaintance and understanding among a firm’s members is measured. As McDermott and O’Dell (2001) stressed that human networks are one of the key facilitators for sharing knowledge. Therefore, we propose:

Hypothesis 1c: Human knowledge capability has a positive effect on the behavior of knowledge sharing in an organization.

3.1.2 Technical OKC and knowledge sharing

Information technology (IT) is a critical enabler when a business implements a KM program, as it has direct and indirect influences on knowledge sharing (Hendriks, 1999; Lee and Suliman, 2002) by increasing the speed of sharing and by decreasing costs due to time and distance (Albino et al., 2004). Bolisani and Scarso (1999) studied different cases and found various information communication technologies (ICT) which are effective tools for knowledge sharing activities in an organization. Malhotra and Majchrzak (2004) stated that IT can overcome the barriers of knowledge sharing and generate new knowledge effectively. ICT infrastructure and ICT know-how also have a significant effect on knowledge sharing performance (Syed-Ikhsan and Rowland, 2004).

ICT is an infrastructure which supports the information platform for accessing and distributing knowledge. However, without capabilities for using ICT, the platform is worthless. To support knowledge activities, IT may be appropriately viewed as an organizational capability (Bharadwaj, 2000) and the capabilities for holding, deploying, and accessing knowledge are required at different stages of the KM initiatives (Wiig, 1994). Ritter and Gemunden (2004) claimed that technological competence is positively correlated with the degree of innovation success and further enables a firm to become a market leader through new development of product and process. Therefore, the following hypothesis can be drawn:

Hypothesis 2: Technical OKC have a positive effect on the knowledge sharing behavior in an organization.