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Dissertation Defense Hsin-Jung Hsieh

Organizational Characteristics, Knowledge Management Strategy, Enablers, and Process Capability: Knowledge Management Performance in U.S. Software Companies. Dissertation Defense Hsin-Jung Hsieh. Knowledge is power . (Francis Bacon , British philosopher). BACKGROUND TO THE PROBELM.

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Dissertation Defense Hsin-Jung Hsieh

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  1. Organizational Characteristics, Knowledge Management Strategy, Enablers, and Process Capability: Knowledge Management Performance in U.S. Software Companies Dissertation Defense Hsin-Jung Hsieh Knowledge is power . (Francis Bacon , British philosopher)

  2. BACKGROUND TO THE PROBELM • Most empirical research only examined the relationships separately. • A majority of studies were based on only a few cases or used small sample sizes. • No studies were found that investigated the relationship among organizational characteristics, KM strategy, enablers, process capability, and performance.

  3. PURPOSE OF THE STUDY • Describe U.S. software company in terms of knowledge management critical factors. • Explore the relationships among knowledge management critical factors. • Investigate the effects of the degree of balance between human and system orientation strategies on knowledge management performance. • Examine the mediating impact of knowledge management process capability

  4. DEFINITION OF KEY TERMS I Knowledge Management Strategy System orientationandhuman orientation Knowledge Management Enablers Technology, structure,and organizational culture Knowledge Management Process Capability Knowledge acquisition, protection, conversion, and application

  5. DEFINITION OF KEY TERMS II Knowledge Management Performance Financial and non-financial indicators Organizational Characteristics Type of firm, annual sales in dollars, number of employees,and product life cycle Software Company Software publishers, computer system designers,and internet service providers

  6. JUSTIFICATION Significance KM has strategic significance for the sustainable competitive position of a firm. The study will contribute to organizational practice through its findings. Feasibility The participant are available and the survey can be conducted online. Researchablility The study investigates important scientific questions and all variables can be measured.

  7. DELIMITATIONS AND SCOPE • The geographic area is limited to the continental United States. • The participants are executives in U.S software companies. • The participants are able to read, write, and speak English, and are at least 18 years of age. • The participants are employed at their companies for the past six months.

  8. LITERATURE GAPS, THEORETICAL FRAMEWORK, AND HYPOTHESES

  9. RESEARCH DESIGN & POUPLATION Research Design Non-experimental, quantitative, correlational, causal-comparative,and online research design Target Population 39,769 executives in U.S software companies. Accessible Population Lead411 lists approximately 17,811 software company executives.

  10. SAMPLING PLAN Sample Size The minimum sample size > 186 Simple Random Sampling A sample of 6,000 executives was randomly created from the list of 17,811 executives. The researcher sent out 6,000 invitation e-mails. Response Rate 258 responses were received (4.3 % response rate). 212 valid responses.

  11. INSTRUMENTATION

  12. Procedures • Obtained permission to use scales. • Created an online survey. • Received approval from the IRB. • Selected a sample of 6,000 participants who received e-mail (Bcc feature and plain text format) invitations created by the researcher. • Collected data for one month. • Analyzed data which was stored on a password protected computer.

  13. METHODS OF DATA ANALYSIS I Validity and Reliability • Internal Consistency Reliability - Coefficient Alpha • Construct Validity – Exploratory Factor Analysis • Convergent Validity – Pearson r correlation coefficient • Concurrent Validity – ANOVA and Post Hoc comparisons

  14. METHODS OF DATA ANALYSIS II Research Question 1-2 Descriptive Statistics Research Hypotheses H1-H10 Multiple Regression Research Hypotheses H11 Moderated Multiple Regression Research Hypothesis H12 Two-Way ANOVA

  15. Evaluation of Methodology Internal Validity • A quantitative and correlational research design strengthens internal validity. • The instruments selected have evidence of good estimates of reliability and validity. • Sample size is sufficient. • A non-experimental research design weakens drawing causal inferences.

  16. Evaluation of Methodology External Validity • The survey was completed within their respective firm settings • Using a simple random sampling technique in this study is appropriate. • The final data producing sample of the target population is self-selected which has potential bias. • A single executive might not be representative of his/her entire firm.

  17. RESULT-VALIDITY AND RELIABILITY ANALYSES

  18. Organizational Characteristics RESULT- RESEARCH QUESTION 1 Annual sales in dollars: 97,579,502 Number of employees: 358 Type of software company Product life cycle

  19. KM Measurement RESULT- RESEARCH QUESTION 2

  20. RESULT- RESEARCH HYPOTHESES 1 & 2 Hypothesis 1 Supported KM Strategy System orientation +  Human orientation +  KM Performance Hypothesis 2 Supported KM Enablers Technology + Decentralization -  Formalization Organizational culture +  KM Performance

  21. RESULT- RESEARCH HYPOTHESES 3 & 4 Hypothesis 3 Supported KM Process Capability Internal knowledge acquisition External knowledge acquisition + Knowledge upgrade Knowledge protection Knowledge application + KM Performance Hypothesis 4 Supported KM Enablers Technology +  Decentralization -  Formalization Organizational culture +  KM Process Capability

  22. RESULT- RESEARCH HYPOTHESES 5 & 6 Hypothesis 5 Supported KM Strategy System orientation +  Human orientation +  KM Enablers Hypothesis 6 Supported KM Strategy System orientation +  Human orientation +  KM Process Capability

  23. RESULT- RESEARCH HYPOTHESES 7 & 8 Hypothesis 7 Supported Organizational Characteristics Type of software company Number of employee Annual sales in dollars + Product life cycle KM Strategy Hypothesis 8 Not Supported Organizational Characteristics Type of software company Number of employee Annual sales in dollars Product life cycle KM Enablers

  24. RESULT- RESEARCH HYPOTHESES 9 & 10 Hypothesis 9 Supported Organizational Characteristics Type of software company Number of employee Annual sales in dollars + Product life cycle KM process capability Hypothesis 10 Supported Organizational Characteristics Type of software company Number of employee Annual sales in dollars Product life cycle KM Performance

  25. RESULT- RESEARCH HYPOTHESES Hypothesis 11 Partially Supported Organizational Characteristics Type of company Number of employee Annual sales in dollars Product life cycle KM Strategy System orientation Human orientation KM Process Capability KM Enablers Technology Decentralization Formalization Organizational culture x KM Performance

  26. RESULT- RESEARCH HYPOTHESES Hypothesis 12 Partially Supported System orientation KM Performance Balance Interaction x Human orientation

  27. INTERPRETATIONS I Descriptive Characteristics: Mean

  28. INTERPRETATIONS II Hypotheses Testing

  29. ---- Literature This study This study& literature INTERPRETATIONS III Hypotheses Testing + Park (2006) Internal knowledge acquisition + This study External knowledge acquisition KM performance Knowledge upgrade + Park (2006) Knowledge protection Knowledge conversion + This study& + Park (2006) Knowledge application

  30. ---- Literature This study This study& literature INTERPRETATIONS IV Hypotheses Testing + This study KM Enablers System orientation strategy + This study + This study + Choi (2002) + Keskin (2005) KM Process Capability + This study + This study + This study + Choi (2002) + Keskin (2005) Human orientation strategy KM performance

  31. INTERPRETATIONS V This study Hypotheses Testing This study& Keskin (2005) System Human Human KM enablers This study System KM performance System Human KM process capability

  32. ---- Literature This study This study& literature INTERPRETATIONS VI Hypotheses Testing Technology + This study KM Process Capability + This study + Gold et al (2005) - This study + Hurley (2005) Decentralization - This study Formalization + This study KM performance + This study + Gold et al (2005) Organizational culture

  33. INTERPRETATIONS VII Hypotheses Testing Organizational Characteristics Number of employee Annual sales in dollars KM Strategy System orientation Human orientation KM Process Capability + This study (Mediator) KM Performance This study

  34. INTERPRETATIONS VII Hypotheses Testing This study High degree System orientation Balance KM Performance + This study High degree Human orientation

  35. PRACTICAL IMPLICATIONS To enhance knowledge management performance, managers could place greater emphasis on: • Improving human orientation strategy, system orientation strategy, technology, centralization, organizational culture, external knowledge acquisition, and knowledge application. • Strengthening and balancing system orientation and human orientation strategies. (continued)

  36. PRACTICAL IMPLICATIONS (Continued) • Creating company policies to ensure that knowledge application is more important than knowledge acquisition. • Helping their company understand that more centralization will be helpful to raise knowledge performance. • Avoiding paying too much attention to technology while ignoring organizational culture.

  37. Conclusions • System and human orientation strategies are significant positive explanatory variables of knowledge management process capability, enablers, and performance. • Technology and organizational culture dimensions are significant positive explanatory variables of knowledge management process capability and knowledge management performance. Decentralization may inversely affect knowledge management performance.

  38. Conclusions (Continued) • Annual sales in dollars was a significant positive explanatory variable of knowledge management strategy and knowledge management process capability. • Knowledge management process capability is a mediator between knowledge management strategy and organizational characteristics, and knowledge management performance.

  39. Conclusions (Continued) • Companies with a balance in a high degree of human orientation coupled with a high degree of system orientation, had a positive significant relationship with knowledge management performance. • The six-dimension and 26-indicator knowledge management process capability scale and the four-dimension and 25-indicator knowledge management enablers scales were more appropriate than the original scales used in past research.

  40. Limitations This study has several limitations: • This study was limited to measuring attitudes of respondents. • This study was a one-time survey. • The design of the study was non-experimental which threatens internal validity. • The very low response rate and a self-selected final data-producing sample poses threats to external validity. (continued)

  41. Limitations (Continued) • The study was based on the findings obtained using multiple regression analyses. • The questionnaire contained too many items compared to prior studies… and may have affected the accuracy of responses. • This study adopted the breakdown of the AEA to classify the software companies. • The findings may only be generalized to similar U.S high-tech industries.

  42. RECOMMENDATONS FOR FUTURE STUDY • Future research should include financial performance data. • Future research should try to access a single organization in a longitudinal case study. • The study should be replicated in different industries and countries. • Future research should select middle managers, knowledge workers, or specific departments as their samples.

  43. RECOMMENDATONS FOR FUTURE STUDY(Continued) • Future studies should add other variables into the knowledge management model. • Future studies should add socio-demographic characteristics of participants. Dissertation

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