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Communications of the IBIMA
Volume 2010
(2010), Article ID 274834,
Communications of the IBIMA, 8 pages.
Managing Organizational Knowledge: An Empirical Study in Jordanian
Pharmaceutical Industry
Khaled
Mohammad Ahmad
Algharibeh
Applied Science University, Kingdom of Bahrain
Copyright ©
2010 Khaled
Mohammad Ahmad Algharibeh.This is an open access article distributed
under
the Creative
Commons Attribution License unported 3.0, which permits unrestricted
use, distribution, and reproduction in any medium, provided that
original work is properly cited.
Abstract
Enabling
knowledge creation (EKC) is an important issue in knowledge society.
This study empirically examines the relationship between enabling
knowledge creation and knowledge conversion in Jordanian pharmaceutical
industry. Currently, managers need to support knowledge creation
process rather than control it. Enablers knowledge may be able this.
Previous studies have not clearly identified nor demonstrated the
relationship between the enabler’s knowledge and the knowledge
conversion. This study is focusing on the question what are the
enabler’s knowledge that effects on the knowledge conversion. The
purpose of this research is to identify if a positive relationship
between the enabler’s knowledge and the knowledge conversion. A
positivistic approach was adapted using quantitative data. A survey
aimed at employees in Jordanian pharmaceutical industry population was
conducted in an effort to investigate the knowledge conversion and to
examine the relationship of enabler’s knowledge and the improvement of
knowledge conversion.
Keywords:
Knowledge Management; Knowledge Creation; Pharmaceutical Business
Managers.
In
today’s economy, knowledge includes knowing about people, money,
leverage, learning, flexibility, power and competitive advantage.
Drucker (1993) wrote that “Knowledge has become the key economic
resource and the dominant and perhaps even the only –source of
competitive advantage”. In this said two concepts -- knowledge as an
economic resource and knowledge as a source of competitive advantage --
made significant impact on the traditional management approach and
demanded a paradigm shift. Knowledge is more relevant to sustained
business than capital labor or land. Nevertheless, it remains the most
neglected asset. It is more than justified true believe and essential
for action, performance and adoption, knowledge provides the ability to
respond to novel situation. Most organizations realized that knowledge
is a source of competitive advantage and a primary factors in
knowledge- based economy In other words, it is to deal astutely with
knowledge, which has been stressed by Drucker (1993), Nonaka and
Takeuchi (1995). Many organizations begin research about support
knowledge conversion rather than control it. Many organizations begin
their knowledge management efforts by trying to understand what, where
support knowledge conversion and how support knowledge creation
process. Evidently, this leads to the question how can knowledge
enablers support the knowledge creation process?
Many studies were presented to knowledge conversion process For example:
Nonaka,
Toyama and Konno (2000) proposed a model of dynamic knowledge creation
comprising of three elements: The SECL process, involving the creation
of knowledge by the conversion of tacit and explicit knowledge. “Ba” is
the shared context for knowledge creation; and knowledge assets,
consisting of the inputs, outputs and moderators of the knowledge
creation process. They discuses three elements as following The SECI
process: There are four modes of knowledge conversion. They
are:
- socialization
(from tacit knowledge to tacit knowledge);
- externalization
(from tacit knowledge to explicit knowledge);
- combination
(from explicit knowledge to explicit
knowledge); and
- internalization
(from explicit knowledge to tacit
knowledge).
They see
leadership link between SECI and (ba).They
describe the knowledge-creating process as the dynamic interaction
between organizational members, and between organizational members and
the environment.
Nonaka, Toyama and Nagata (2000) see that
the knowledge conversion rate is determined by such factors as
knowledge vision, organizational structure, incentive system, corporate
culture, routines and leadership. they focused on a firm creates
knowledge continuously and dynamically though the SECL process , in
which tacit knowledge held by individuals is converged and amplified by
the spiral of knowledge through socialization, Externalization,
Combination and Internalization. They argue that knowledge and the
capability to create and utilize such knowledge are the most important
source of a firm sustainable competitive advantage. They proposed that
(ba) is becomes necessary to create knowledge-out of information and
the ba gives shared context to the SECL process. The knowledge vision
gives a direction to the knowledge-creating process and the knowledge
created in it by asking such fundamental questions as „What are we?‟,
„What should we create?‟, „How can we do it?‟, „Why are we doing this?‟
and „Where are we going?‟ The knowledge vision defines the value system
that evaluates, justifies and determines the quality of knowledge that
the network creates. they argue that the production and reproduction of
(ba) (i.e.“a shared context in motion”) is essential for
organizational knowledge creation and , as (ba) is a place where
information is given meaning through interpretation to become
knowledge, and new knowledge is created out of existing knowledge
through the change of the meanings and the contexts” (p.8).
Nonaka
(1994) argues that organizational knowledge is created through
continuous dialogue between tacit and explicit knowledge. Also, he says
that knowledge creation occurs through a spiral interaction between the
epistemological and ontological dimensions of knowledge. His is
assumption that knowledge is created through conversion between tacit
and explicit knowledge allows us to postulate four different mode of
knowledge conversion:
- from tacit
knowledge to tacit knowledge,
- from explicit
knowledge to explicit knowledge,
- from tacit
knowledge
to explicit knowledge,
- from explicit
knowledge to tacit knowledge.
He defined
information is flow messages while knowledge is created and
organized by the very flow of information.
Nonaka
and Toyama (2005) presented a typology of organizational knowledge
based on the interaction between subjectivity, objectivity and
synthesis. They focused on seven bases of knowledge creation that
consisted the following: knowledge vision, driving objective, which
gives direction and energy to the SECL process , the SECL process
dialogues and practice, (ba) an existential place for the SECL process,
knowledge assets, which are inputs and outputs of the SECL process and
environment as an ecosystem of knowledge. Also Knowledge is created
through the synthesis of thinking and actions of individuals .They said
that the theory of knowledge creation is based on an idealistic
pragmatism which synthesizes the rational pursuit of appropriate ends.
They grave the main role for the leadership on knowledge vision and ba.
This study is an attempted to establish the theory of
knowledge-creating firms to explain the complex process of knowledge
being created organizationally.
Al- Taher (2007)
in the thesis entitled innovation and knowledge transfer in Jordan
pharmaceutical industry. The study aimed to develop and test a model of
the determinants of knowledge transfer and innovation in Jordanian
pharmaceutical industry. The study had shown significant relationships
between knowledge transfer and innovation, also, there is positive
retaliation between reflection and knowledge transfer, there is
positive retaliation between dialogue and knowledge transfer and there
is positive retaliation between double loop learning and knowledge
transfer.
Von Krogh et al .,(2000) list five enablers for
strategy and knowledge creation: instill a Knowledge Vision, Manage
Conversations, and Mobilize Knowledge Activists, Create the Right
Context and Globalize Local Knowledge. They argue that managers need to
support knowledge creation rather than Control it. They explain
enabler's knowledge as following: that knowledge vision is encouraged
to create new knowledge and determined mission, Manage conversation
which helps to share tacit knowledge process. They believe that “good
conversations are the cradle of social knowledge in any organization
(...), they allow the first and most essential step of knowledge
creation: sharing tacit knowledge within amicrocommunity” Knowledge
Activists are persons that facilitates the knowledge creation process,
the create right context and globalize local knowledge aims at
transferring locally created knowledge throughout the perhaps globally
distributed company. They argue also that shared context is place such
place can be "physical, virtual, mental, or- more likely- all three"
(2000, P7).
Lee
and Choi (2003) looked at three major factors for managing knowledge:
enablers, processes, and organizational performance. Enablers are
influencing factors that help foster knowledge consistently through the
firm by stimulating knowledge creation, protecting knowledge, and
facilitating the sharing of knowledge. Knowledge processes are
knowledge management activities that help create a coordination
structure that manages knowledge effectively. they divide the enablers
into seven enablers: (1) collaboration – degree of active support and
help in an organization; (2) trust – degree of reciprocal faith in
others‟ intentions, behaviors, and skills toward organizational goals;
(3) learning – degree of opportunity, variety, satisfaction, and
encouragement for learning and development in an organization; (4)
centralization – degree of authority and control over decisions; (5)
formalization – degree of formal rules, procedures, and standard
polices; (6) T-shaped skills – degree of understanding of his or her
own and others task areas; and (7) information technology support –
degree of IT support for collative work, for communication, for
searching and accessing, for simulation and prediction, and for
systematic storing. They found collaboration; trust, learning, and
centralization are significant (.05 significance level) predictors for
knowledge creation. Collaboration is positively related with
socialization, externalization, and internalization and not related to
combination. Trust is related to all knowledge creation modes. Learning
is related to socialization and internalization. Centralization is
negatively related to socialization, externalization, and
internalization while not related to combination. Formalization and
T-shaped skills of members are not related to knowledge creation. IT
support is significantly related to knowledge combination only. Then
knowledge creation is positively related to organizational creativity,
which is positively related to organizational performance.
Aurum
et al., (2007) divide the knowledge management enablers into four
enablers, leadership, technology, culture and measurement. They
considered leadership and technology are to be the most significant as
top-down KM strategies and mechanism knowledge management. They argue
that leadership evaluates the role of leadership in managing knowledge
within the organization. Culture is concerned with the climate of the
knowledge sharing environment, as well as the culture in the
organization that promotes the knowledge sharing. Technology examines
the technology aspect of KM practice. Measurement aims to find out if
there are effective measures to indicate the success or failure of KM
practice in organization.
A study by Von krogh
et al , (1997) on "knowledge activists " defined knowledge activists as
someone ,some group or department that take on particular
responsibility for energizing and coordinating knowledge creation
efforts through out the corporation . The study aimed at explains the
role of knowledge activists in the knowledge creation company as:
catalysts of knowledge creation, connectors of knowledge creation
initiatives and merchants of foresight. They note activism help to
reduce the time and cost that needed for knowledge creation process, in
addition its enabler.
This paper is organized
into 4 sections:
Section 1 will
discuss on knowledge conversion and
enablers knowledge. Section 2 will discuss the research
design.
Section
3 is the findings and
Section 4 is conclusion.
Research Design and Methodology
Hypothesis Development
This
paper examines the enablers knowledge in two ways. The first one is to
examine the knowledge enablers effect on knowledge creation process.
knowledge conversion consist four basic modes (1) socialization (from
tacit knowledge to tacit knowledge); (2) externalization (from tacit
knowledge to explicit knowledge); (3) combination (from explicit
knowledge to explicit knowledge); and (4) internalization (from
explicit knowledge to tacit knowledge) Nonaka, Toyama and Konno
(2000).while knowledge enablers are (knowledge vision , knowledge
objectives , information technology, shared context (ba), culture
organization , structure organization, knowledge activist , knowledge
leadership, manage conversation). Von Krogh et al (2000) argue that
that “good conversations are the cradle of social
knowledge
in any organization (...),
they allow the first and most essential step of knowledge creation:
sharing tacit knowledge within amicrocommunity” Knowledge enablers can
be described five enablers: instill a Knowledge Vision, Manage
Conversations, and Mobilize Knowledge Activists, Create the Right
Context and Globalize Local Knowledge (Von Krogh et al 2000).Based on
Lee and Choi (2003) and Von Krogh et al (2000) research, There is
significant effect of knowledge enablers on knowledge creation process
in Jordanian pharmaceutical industries. Therefore organizations need to
support knowledge creation process rather than control it.
H1:
There is significant effect of knowledge enablers on knowledge
conversion in Jordanian pharmaceutical industries.
The
second way is to examine the enablers knowledge effect on
(socialization, externalization, combination, internalization). Lee and
Choi (2003) stress that Enablers are influencing factors that help
foster knowledge consistently through the firm by stimulating knowledge
creation, protecting knowledge, and facilitating the sharing of
knowledge. The process of knowledge creation can only be enabled or
supported by an “overall set of organizational activities that
positively affect knowledge creation” (von Krogh et al. 2000, p. vii).
Thus, it is necessary to support knowledge creation process through
enabler knowledge.
H2:
There is significant effect of knowledge enablers on
(socialization, externalization, combination, internalization).
Based on the literature review and hypotheses developed, a framework –
to guide the study – was developed as in Figure 1

2.2 Data and Measures
The
aim of this study is
to
evaluate the effects of
knowledge
enablers on knowledge creation
process.
Knowledge enablers
was
measured at
following: Items
knowledge vision were developed and constructed
based on
some researchers that interested in knowledge vision as Von Krogh et al
,(2000), Nonaka et al (2000a), Nonaka and Toyama (2005), Nonaka et al
(2003). Items knowledge objectives were developed and constructed based
on some researchers that interested in knowledge objectives as Nonaka
and Takeuchi (1995), Nonaka and Toyama (2005). Items information
technology were designed based on some studies as Hein (2004), Brink
(2003) and others. Items Manage conversation were designed based on
some researchers as Von Krogh et al (2000), Mengies and Eppler (2005).
Items shared context were designed based on some researchers as Von
Krogh et al. (2000), Nonaka et al (2000a), Nonaka and Toyama. (2005),
Nonaka et al. (2003) Nonaka et al. (1998). Organizational structure was
measured using items from Lin Wen-bao (2007). Organizational culture
was measured using items from Lin Wen-bao (2007). Items Knowledge
leadership based on some studies as Von Krogh et al (2000), Nonaka et
al (2000a), Nonaka and Toyama (2005). Items Knowledge activists
activists based on some studies as Von Krogh et al (1997), Von Krogh et
al. (2000).finally, Knowledge conversion was measured using items from
Nonaka et al. (2000a).All items were measured on a seven point
Likert-type scale where 1 = strong disagree and 5 =strongly agree.
The
research society contains (17) pharmaceutical companies. We selected
(11) companies out of this society. Selection of each company depended
on more than one point such as: Established year, the company should
have at least 5 years. Capital of the company shouldn't less than 5
million. Number of employees in the company shouldn't less than 50
employees. Certification of IS9001 or IS 9002.
The
Questionnaires were sent to 182 employees working in these only eleven
companies. Only (137) were returned. The overall response rate for this
study was 84%. This is regarded as relatively high, since the
respondents are managers and they supposed to be too busy to answer
Questionnaire. A Questionnaire was sent to respondents are manager,
department head and Assistant manager currently working in the
companies.
3.0 Results and Discussion
The
reliability test was carried out to determine the reliability of the
questions. Reliability analysis provides information about the
relationships between individual items in a scale. When a previously
validated instrument has been adopted, a higher cutoff value of 0.7 or
higher may be Used (Nunnaly, 1978). Since
all
the Cronbach‟s Alpha values
are
over the critical point
of 0.7 shows that
the survey‟s reliability is accepted.
|
Variables
|
Item
|
Cronbach
|
|
|
Alpha
|
|
|
|
|
|
|
|
|
|
|
|
Knowledge
vision enabler
|
5
|
0.866
|
|
|
|
|
|
|
|
Goals enabler
|
3
|
0.820
|
|
|
|
|
|
|
|
Technology
enabler
|
3
|
0.866
|
|
|
|
|
|
|
|
Manage
conversation enabler
|
3
|
0.923
|
|
|
|
|
|
|
|
Shared context
(ba) enabler
|
4
|
0.879
|
|
|
|
|
|
|
|
Organizational
structure
|
7
|
0.953
|
|
|
|
|
|
|
|
Organizational
culture
|
9
|
0.885
|
|
|
|
|
|
|
|
Knowledge
leadership enabler
|
4
|
0.892
|
|
|
|
|
|
|
|
Knowledge
activists enabler
|
3
|
0.923
|
|
|
|
|
|
|
|
Knowledge
conversion
|
20
|
0.920
|
|
|
|
|
|
|
The
result reveals strong
correlations in
all Knowledge enablers and
knowledge
conversion. The correlation data is shown in the Table 2.
Table 2: Correlation of Knowledge enablers and knowledge
conversion
|
VAR
|
VISIN
|
OBJECT
|
INFOR
|
MANA
|
CONT
|
STRUC
|
CULT
|
LEAD
|
ACIV
|
CON
|
SOCI
|
EXTR
|
COM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VISION
|
.605**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OBECT
|
.251**
|
.376**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INFOR
|
.218
|
.215**
|
.456**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANA
|
.358**
|
.422**
|
.383**
|
.503**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONT
|
.493**
|
.675**
|
.349**
|
.310**
|
.671**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STRUC
|
.570**
|
.652**
|
.473**
|
.283**
|
.610**
|
.746**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CULT
|
.486**
|
.561**
|
.388**
|
.396**
|
.581**
|
.623**
|
.620**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LEADR
|
.347**
|
.334**
|
.226**
|
.517**
|
.471**
|
.399**
|
.436**
|
.622**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACIVI
|
.461**
|
.562**
|
.441**
|
.388**
|
.452**
|
.574**
|
.578**
|
.604**
|
.499**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONV
|
.326**
|
.459**
|
.411**
|
.304**
|
.382**
|
.473**
|
*507**
|
.532**
|
.407**
|
.855**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOCI
|
.448**
|
.496**
|
.309**
|
.365**
|
.435**
|
.561**
|
.505**
|
.521**
|
.387**
|
.859**
|
.654**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXTRN
|
.329**
|
.465**
|
.420**
|
.375**
|
.396**
|
.447**
|
.478**
|
.421**
|
.452**
|
.844**
|
.630**
|
.604**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMB
|
.482**
|
.507**
|
.371**
|
.285**
|
.336**
|
.492**
|
.494**
|
.603**
|
.464**
|
.872**
|
.650**
|
.700**
|
.648**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
**
Correlation is significant at the 0.05 level
Hypothesis
H1 examines effect of knowledge enablers on knowledge conversion. To
investigate this relationship. There is significant effect of knowledge
enablers on knowledge conversion. The proposed model is significant (F
= 73.589; p<0.00); it explains 68% of variance in knowledge
conversion. The knowledge objectives enablers, shared context and
organizational culture are essential to support knowledge conversion
especially Knowledge leadership enabler has a significant positive
influence on knowledge conversion (B = 0.422, t value = 5.391,
p<0.00).on ether hand, this study found that knowledge enablers
as
knowledge objective enabler, shared context, organizational structure
and Knowledge leadership are supported knowledge conversion. While
knowledge enablers as knowledge vision manage conversation,
organization culture, information technology and knowledge activists
are not supported knowledge conversion.
In
hypothesis H2, it is to investigate the effect of knowledge enablers on
(socialization, externalization, combination, internalization) process.
This study found that Knowledge leadership is positively related with
socialization and not related to externalization, combination,
internalization. Organizational structure is positively related to
externalization while not related to socialization, combination,
internalization at significant (.05 level) .knowledge objectives and
Knowledge activists enablers are positively related with combination
and not related to externalization, socialization, and internalization.
While Information technology enabler are positively related with
combination and not related to externalization, socialization, and
internalization. This finding is also supported by Lee and Choi (2003)
that found Information technology is positively related with
combination and not related to externalization, socialization, and
internalization. Finally, Knowledge leadership enabler is positively
related with internalization and not related to externalization,
socialization, and combination.
4.0 Conclusion
Based
on the finding, there is positive effect of knowledge enablers on
knowledge conversion process in Jordanian pharmaceutical industries.
The primary hypothesis investigate that knowledge enablers as knowledge
objective enabler, shared context, organizational structure and
Knowledge leadership enablers are supported knowledge conversion. While
knowledge enablers as knowledge vision manage conversation,
organization culture, information technology and knowledge activists
are not supported knowledge conversion. While second hypothesis
investigate that that Knowledge leadership is positively related with
socialization and not related to externalization, combination,
internalization. Organizational structure is positively related to
externalization while not related to socialization, combination,
internalization at significant (.05 level) .knowledge objectives and
Knowledge activists enablers are positively related with combination
and not related to externalization, socialization, and internalization.
While Information technology enabler are positively related with
combination and not related to externalization, socialization, and
internalization.
Limitations
of the
study
There
are two main limitations that could arise from the research methods
used. They are : ( 1) the cross-sectional research design of
the
survey; (2) the data set is limited to the Pharmaceutical industries.
The
first limitation is the cross-sectional research design of the survey.
This cross sectional study represents a slice of time, and does not
show how employee’s behavior may change over time.
Because
our data set is cross-sectional in nature, we can only show
associations, not causality, we cannot demonstrate the long-term
sustainability of the relationships, and we cannot analyze longitudinal
processes, such as knowledge conversion and the enablers‟ knowledge.
The
second limitation is that this study focuses on one industry, the
Pharmaceutical sector as one of the production industry. Although we
have invested considerable effort in data collection, our data set is
limited to the Pharmaceutical industry. We do not know how the results
will be in other industries, although the systematic nature of our
investigation adds to our belief that the framework can be extended to
other industries.
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