Knowledge management (KM) has emerged as a new discipline in managing organization. It plays important roles in establishing long term internal strength and supporting external competitive advantage. The purpose of this study is to gauge the level of KM practices in MSC status organizations. It also shows relationship between demography of respondents with KM influential factors in those organizations. Survey question which consists of 4 main KM influential factors were distributed. Results of 121 data sets have been collected from 4 MSC-status organizations. Mean score and One Way ANOVA are applied to identify the level of KM practices. This also identifies the relation between the demography and KM factors. It is found out that KM practices in MSC status organizations are at medium level. There are significant differences in KM practices with respect to age of respondents and job designation. It can be concluded that sufficient attention should be given to culture, information technology, organization structure and people to achieve success in KM practices.

Keywords: Influential factors, Knowledge management, knowledge management practices, MSC status organizations, new discipline

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Introduction

Knowledge management can be defined as the process of transforming information and intellectual assets into enduring value. It connects people with the knowledge that they need to take action. By applying knowledge management into organization, it can integrate, identify, manage and share all of the department’s information assets. According to Darroch (2005), knowledge management has emerged as a new discipline in an organization, and it plays an important supporting function by providing a coordinating mechanism to enhance conversion of resources into capabilities. Newman (2000) stated that this knowledge management promotes an integrated approach to identifying, capturing, retrieving, sharing, and evaluating an enterprises information asset. These information assets may include databases, documents, policies, procedures, as well as the uncaptured tacit expertise and experience stored in individual's heads.

 
Background

Multimedia Super Corridor (MSC) is the Malaysian government initiative. It was designed to leapfrog Malaysia into the information and knowledge age. The MSC was initiated as a part of Malaysia’s long term plan to become a knowledge-based and a fully developed country by the year 2020. This corridor houses core MSC initiatives which include high-technology projects such as e-Government, Telemedicine, Smart School, Multipurpose Smart Card System, Research and Development Cluster, e-Business and Technopreneur Development.

The MSC is a 50 × 50 km2 zone, stretching from thePetronas Twin Towers (world’s tallest towers) in thecenter of Kuala Lumpur to the newly built Kuala Lumpur International Airport (KLIA). It comprises several administrative, industrial and technological development clusters. Among the clusters are: (1) Putrajaya, the newly built seat of the federal government, (2) Cyberjaya, an intelligent city which will house multimedia industries as well as research centers and the Multimedia University (MMU), (3) Technology Park Malaysia, a park located in the center of the MSC providing engineering and IT facilities to entrepreneurs, investors and industries. Previous industrial development projects such as the free trade zone in Petaling Jaya, manufacturing hubs in the outskirts of Kuala Lumpur and the city’s financial centers also fall within the MSC (Ramasamy, et al., 2004).

The idea of the importance of knowledge management in Malaysia was first expressed by the former Prime Minister, Tun Dr. Mahathir in 1991. He highlighted that there is a need to transform economy of Malaysia towards a knowledge-based economy in order to achieve vision 2020. The common knowledge management approaches in Malaysia was implemented through knowledge management applications in Multimedia Companies such as the one applied at Microsoft Malaysia (KMtalk .net).

Problem Statement

According to Gan (2006), there is lacking of knowledge management surveys from Malaysian perspectives. Most Malaysians do not understand well about knowledge management and it functions. Furthermore, most companies do not investigate the implementation of knowledge management. The knowledge transfer and knowledge sharing in an organization may be limited if they do not apply appropriate knowledge management approaches.

A survey reported that many top executives of firms view knowledge management resources as critical for a firm’s success (Amlus Ibrahim et al. 2006). This implies that many firms are lacking knowledge management strategy in their firms. The success of firms is strongly related with managing knowledge.

Amlus Ibrahim et al. (2006) stated that there is no single department or function alone that can deliver corporate objectives. The shifting winds of change in today’s business environment, together with the pressure of the emergence of global knowledge-based economy, have made organizations realize that the knowledge is their key asset (Chong et al., 2006). Without knowledge-based approach, company may face several problems and tougher competition in global market.

Traditional disciplinary knowledge is limited in its ability to support challenging decisions that lie ahead. This causes organizations to have urgent measure for seeking fundamental insight to help them immense potential of their knowledge asset for capability to excel at the leading edge of innovation (Syed Z. Shariq, 1997).

Research Questions

• What is the level of knowledge management practices among MSC status organizations?

• What is the relationship between demographic elements and knowledge management factors that can influence the implementation of knowledge management practices in MSC status organizations?

Objectives

• To measure the level of knowledge management practices in MSC status organizations.

• To identify the relationship between demographic elements and knowledge management factors that can influence the implementation of knowledge management practices in those organizations.

Significance of the Research

The purpose of this study is to provide a clear understanding of knowledge management research. Besides that, this study is to find out the current levels of knowledge management practices among Multimedia Super Corridor companies in Malaysia. It allows better understanding of knowledge management practices in these companies. Apart from that, it also allows organizations to understand all the process which is needed in knowledge management to build appropriate knowledge management strategies for competitive advantage.

Scope of Research

This research will be conducted in Pahang, more specifically in the area of Kuantan. Research will be conducted in MSC status organizations in Kuantan. The samples of this research will be carried out on organizations which were registered under the category of MSC-status organizations.

Literature Review

Subsequent sections highlight the basis of this study such as background of KM, definitions, and theories.

Definitions of Knowledge

At the fundamental level, knowledge is defined as information possessed by individuals within the organization. We change the information into knowledge form in an individual, and then distribute and sharing the knowledge within the organization. Systems designed to support knowledge may not appear to be radically different from other forms of information systems, but will be aimed towards enabling users to assign meaning to information and to capture their knowledge (Randeree, 2006).

Drucker (1993) describes knowledge as the only meaningful resource in a knowledge society. He further stresses that “…knowledge is not impersonal like money. Knowledge does not reside in a book, a data bank, a software program. They contain only information”. Knowledge is always embodied in a person, taught and learned by a person, used or misused by a person (Drucker, 1993, p. 191).

Sharifuddin and Rowland (2004) clearly shown that knowledge transfer, capture and dissemination and organizational knowledge are some of the important elements in knowledge and knowledge management (p. 239).

According to Greiner (2007), knowledge emerges from the processing of the perceived information and contextualization of a person. This shows that knowledge can only exist in the context of person and his beliefs and experience. ‘‘Knowledge is a fluid mix of framed experience, values, contextual information, and expert insight that provides a framework for evaluating and incorporating new experiences and information’’ (Davenport and Prusak, 1998). Thus, knowledge can also be defined as the ability of persons to evaluate information and act efficiently (Sveiby, 1998). Knowledge can provide added value if it results in actions and decisions (O’Dell and Grayson, 1998).

Types of Knowledge

People possess slightly different types of tacit and explicit knowledge and apply their knowledge in unique ways. There are two main types of knowledge, namely tacit knowledge and explicit knowledge. Explicit knowledge is formalized and written knowledge, expressed in the form of data, scientific formula, specifications, manuals, or textbooks. It can be articulated, explained, and may sometimes help individual articulate what they know. Smith (2001) explained that most of explicit knowledge is technical or academic data or information that is described in formal language, like manuals, mathematical expressions, copyright and patents. This “know-what,” or systematic knowledge is readily communicated and shared through print, electronic methods and other formal means (p. 313). While tacit knowledge is action-based and unformulated, highly personal and hard to transfer. Tacit knowledge is automatic, requires little or no time or thought and helps determine how organizations make decisions and influence the collective behavior of their members (Smith, 2001; Liebowitz and Beckman, 1998).

Definitions of Knowledge Management

Knowledge management was defined as an organizational capability that allows people in organization working as a individual, or in teams, project, or other such communities of interest, to create, capture, share, and leverage their collective knowledge to improve performance (Lakshman, 2007). By appling knowledge management in organizations, it can increased globalization of competition, speed of information and knowledge aging, dynamics of both product and process innovations, and competition through buyer markets (Greiner et al., 2007).

Malhotra (2005) argued that knowledge management is a function of the generation and dissemination of information, developing a shared understanding of the information, filtering shared understandings into degrees of potential value, and storing valuable knowledge within the confines of an accessible organizational mechanism. Knowledge management systems must connect people to enable them to think together and to take time to articulate and share information and insights they know are useful to others in their community (Josephine Lang C.Y. 2001).

Rosmaini Tasmin and Woods (2007) argued that, knowledge management as a socio-technology-based system that supports the collaboration and integration among interlocking organizational function to create more innovation and value-added products and services for the market.  According Amlus Ibrahim et al. (2006), knowledge management is a more detailed and ‘everyday management approach than intellectual capital management; it focuses on facilitating and managing knowledge-related activities.

SECI Theory

SECI theory can be expressed as the interaction between tacit and explicit knowledge. According Nonaka and Takeuchi (1995), SECI consist of four different modes of knowledge conversation which is Socialization, Externalization, Combination and Internalization.

Knowledge Management Model

The Socio-Technical Model

■ Infoculture (organizational and social culture in knowledge sharing),

■  Infrastructure (technological systems for networked communications), and

■  Infostructure (protocols for knowledge exchange and a means to measure).

Lindsey Model

Lindsey proposed a knowledge management effectiveness model by combining the contingency-perspective theory and the organizational capability perspective theory (Rosmaini Tasmin and Woods, 2008). The knowledge management effectiveness model has two main constructs, namely knowledge infrastructure and knowledge process capabilities (Rosmaini Tasmin and Woods, 2008).

Knowledge Management Framework

The KM Framework considers three layers as the most important for KM:

• Business Focus

• Core Knowledge Activities

• Enablers

Knowledge Management in Malaysia

Knowledge management only really began to take off in the late 1990s. Malaysian government through its “Knowledge Economy Master Plan” had inspired government agencies as well as local companies to adopt knowledge management. There is very few Malaysian companies have initiated any knowledge management programs in Malaysia.

Government agencies are among the earliest organizations to initiated knowledge management approaches in Malaysia. Government Linked Companies (GLCs) are in advanced stage in term of knowledge management practices. Only few private companies have taken advanced approach in knowledge management initiatives.

According to some researchers, in order to launch knowledge management successfully, Malaysian companies need to develop strategic perspectives at viewing and sharing knowledge.

Multimedia Super Corridor

The Malaysian government set up the Multimedia Development Corporation in 1996 to oversee the development of a Multimedia "Super Corridor" (trade zone). The idea was to make Malaysia a major production and service sector for high tech and multimedia industries. By the year 2020, the MSC will be extended to the whole country, transforming Malaysia to a knowledge-based economy and society, as envisaged in Vision 2020.

The Government recognizes local and international companies that undertake ICT activities in the MSC by awarding them with a MSC Status.  MSC-status companies enjoy a host of incentives and benefits from the Malaysian Government that is backed by the ten-point Bill of Guarantees. These MSC status companies are actually involved in software development, software design, internet-based solution and content development (MDC).

Knowledge Management Practices in Malaysia

One of the earliest studies on knowledge management in Malaysia indicated that Malaysian organizations tend to be slow in uptake of knowledge management and that levels of knowledge management is still in the infancy stage (Goh, 2006). The knowledge sharing among manufacturing was found that at a moderate level, electrical and electronics-based organizations revealed that there is no clear and identifiable knowledge management strategy in place (Goh, 2006).

There are several causes that influence the implementation of knowledge management practices in Malaysia. According to Goh (2005), the primary challenge faced by organizations in Malaysia is changing the employees’ behavior and practices. Organizations in Malaysia tend to be highly bureaucratic and have a centralized decision-making structure with lower levels of knowledge management applications and system in place (Ramanathan Narayanan et al., 2003).

Issues in Knowledge Management

      -          Cultural Issue

According Suresh and Egbu (2004), organisational culture is an important factor to consider in the context of KM, as its boundaries may often restrict the flow of information and knowledge among employees. Gupta and Govindarajan (2000) described a social environment as a social system, or organisational culture, in which people operate.

 
-          Who Should Share What Issues

Suresh and Egbu (2004) stated that in making knowledge available and usable across the whole organisation, the critical questions are: Who should know what, to what level of detail, and how can the organisation support these processes of knowledge sharing? This is because not everyone needs to know everything.

       -          Technological Issues

Technology can make the exchange of knowledge become faster, easier, and smoothly.

 

       -          Leadership Issue

Asoh et al. (2002) concluded that the success of any organization depends on leadership and the success of any leader depends on his/her assigned roles and how the roles are performed.

 

       -          Security, Privacy and Standards Issues

Suresh and Egbu (2004) argued that, identifying and locating experts, knowing what organizations and individuals know, and knowledge sharing have significant security and privacy implications. Standards play a significant role which is includes agent communication, meta-data representation, business integration, interoperability, multi-channel and cross-channel success, portals, and advanced collaboration (Satyadas and Harigopal, 2001).

Challenge of Knowledge Management

      -          Management Challenge

Management involves having the right leader doing the right activities to provide the thorough analysis of the status quo and the appropriate changes that will improve the system and yield good results (Stukalina, 2006).

    -          Economic Challenge

Information and knowledge products seem to be governed by a different law of economic return: investment in every additional unit of information or knowledge created and utilized could result in progressively higher returns (Suresh and Egbu 2004).

 
-        Iplementation Challenge

According to Bygstad (2008), Kwon and Zmud argued that Implementation is mostly seen as an acceptance. The spread of the knowledge-based, less hierarchical organizations with both more powerful and knowledgeable user has accelerated this development.

Influencing Factors

      -          Culture

According Rosmaini Tasmin and Woods (2007), knowledge culture constitutes of the accumulation and combination of common expectation, tacit rules, shares experiences and social norms that shape our attitudes and behaviors. Successful organizations empower employees to want to share and contribute intellectual information, by rewarding them for such actions (Mathi, 2004).

      -          Informational technology

According Chourides et al. (2003), Ruggles and Leug argued that knowledge building is dependent upon IT. In order to build knowledge sharing capabilities, the organization must develop a comprehensive infrastructure that facilitates the various types of knowledge and communication (Kim and Lee, 2004).

      -          Organization Structure

Gan (2006) articulated that the structure of the organization impacts the ways in which organizations conduct their operations and in doing so, affects how knowledge is created and shared amongst employees. The hierarchical structure of an organization affects the people with whom individuals frequently interact, and to or from whom they are consequently likely to transfer knowledge (Wei et al., 2006).

      -          People

Goh (2006) articulated that people are the heart of creating organizational knowledge as it is people who create and shared knowledge. People are said to be true agents in business where all tangible and intangible assets are result of human action and depend ultimately on people for their continued existence (Syed Omar Sarifuddin and Rowland, 2004).

Methodology and Research Design

According Chua (2006), the outcome of research is determined by method and the research design. While the research design is determined by the objective of the research. In this research, a quantitative research methodology will be used. Chua (2006) stated that not all the research designs can be used in all the research, but a research can use several types of research design (Chua, 2006). There are two types of research, which are experimental and non-experimental. This research will apply non-experimental research design.

Sampling

Sampling is a process of choosing a number of subjects from a population to become research respondents (Chua, 2006). According Saunders et al. (2007), sampling technique provide a range of method that enable research to reduce the amount of data need to collect by considering only data from a subgroup rather than all possible cases or elements.  There have two types of sampling method which is probability sampling and non-probability sampling (Saunders et al., 2007). In this research, the sampling method will be use is non-probability sampling. Non-probability sampling provides a range of alternative techniques to select samples based on subjective judgement (Saunders et al., 2007).

Sampling Method

The sampling method in this research is non-probability sampling. The technique will be choosing is purposive sampling. Purposive sampling is a sampling which is a group of respondents will be choose have same characteristic and enable answer research question and meet the objective.

Research Population and Research Sample

The population of this study will be the employees in Multimedia Super Corridor (MSC) Status organizations. The sample of this study is the employees in the Multimedia Super Corridor (MSC) Status Companies in Kuantan. While the target respondents in this research are knowledge-based workers and academic staffs. In this research, the total number population is 340 people and the size sample is 180 people.

Research Instrument

Research instrument is a tool that specially to collect data for the research. The method data collection use in this research is survey.

Survey

The survey question will distribute randomly to the employees of MSC status companies in Kuantan.  The survey will be divided into two parts. The first part of survey is the personal information of the respondents. The second part of the survey is the questionnaire of the critical success factors to be defined with the Likert-scale.

Data Analysis

• Reliability and Validity

• Descriptive Analysis

• One Way ANOVA

Table 1: Reliability Test Analysis

Factors	Cronbach's Alpha (α)	No. of Item	No. of Respondent
Cultural	0.779	10	121
Information Technology	0.857	7	121
Organization Structure	0.834	6	121
People	0.852	13	121
Total	0.929	36

Feedback Rate

180 sets of questionnaires have been distributed to employees and knowledge-based worker in Cosmopoint College, OPEN University, UMP, and IKIP College. The total set of questionnaires that have been collected is 121 sets which is equivalent to 67.2%, while, 59 sets of questionnaire cannot be collect because the researcher has distributed the questionnaires during the semester break when most of the employees were on holiday.

Demographic Analyses

The subsequent section reports the basic findings of the research in terms of demographics of respondents. It consists of respondents’ age, gender, designation, number of years working in current firms, overall working experience, and familiarity with KM.

Fig. 1: Respondent Age Distribution