Formalizing knowledge management within a company, particularly in Knowledge-Intensive Business Services (KIBS), holds significant importance, as highlighted by various studies. Companies tend to adopt knowledge management practices differently. While some embrace formalized approaches, others may opt for more emergent, non-planned methods. The propensity for formalization may vary among different clusters of companies, and it may not correlate directly with factors like sector, size, or age of the conpany. Here are several key points to consider:
– Effectiveness and Strategy: The effectiveness of knowledge management in KIBS is closely tied to human resources and their attitudes toward knowledge. Companies can adopt either codification (people-to-documents) or personalization (person-to-person) strategies. The choice depends on factors such as the type of products offered, product innovativeness, and the prominence of explicit or tacit knowledge required.
– Digitalization: The ongoing process of digitalization presents opportunities for KIBS companies to enhance their knowledge management practices. Digital tools can facilitate capturing, storing, and sharing knowledge, as well as fostering communities of practice.
– Employee Agency and Formalization: Formalizing knowledge through codified process templates can increase transparency and shared understanding. However, it’s essential to consider employees’ perceptions, as formalization may be seen as impeding agency and work flexibility. Successful formalization depends on factors such as industry specificities, company size, staff involvement, competencies, level of centralization, and organizational culture.
– Management Standardization: Despite concerns that formalization and standardization may stifle creativity, research suggests that management innovation can lead to incremental or exploitative innovation. Standardization through centralized knowledge management systems can streamline processes and improve performance.
– Balancing Formalization and Creativity: In industries like design and communication, which rely heavily on symbolic knowledge, finding a middle ground between formalization and personalization is crucial. This approach allows for codifying certain aspects of knowledge while still allowing room for customized approaches, particularly in creative projects.
In conclusion, formalizing knowledge management processes in KIBS companies can lead to improved effectiveness, better utilization of resources, and enhanced innovation. However, it’s essential to balance formalization with flexibility and creativity, considering the unique characteristics and needs of each organization.
Considering this framework, the chapter Formalizing Knowledge Management in KIBS discusses various aspects related to the formalization of KM in Romanian KIBS. The research is based on an qualitative methodology and was implemented during the Knowman project.
The interviews conducted revealed a nuanced approach to KM within the organizations studied, characterized by a blend of somewhat formal strategies coordinated by managers and informal encouragement among employees. This aligns with existing literature on small organizations, indicating that while KM processes are informally supported, the strategic importance of KM is acknowledged.
The perceived benefits of KM formalization primarily revolve around operational advantages such as data accessibility, knowledge sharing, and employee cooperation, although the organizations also appreciate more substantial benefits like improved decision-making and effectiveness. KM is viewed as a combination of formal and informal approaches voluntarily assumed to foster flexibility, creativity, and organizational innovation, particularly pertinent in KIBS. KM processes encompass knowledge sharing, creation, acquisition, storage, and utilization, with special emphasis placed on mitigating risks like knowledge security and handling by new employees. Managers and team leaders play pivotal roles in KM processes, despite the emphasis on flat organizational structures.
While some formal procedures are in place in Romanian KIBS, KM is predominantly approached informally, especially within teams. However, there’s a growing pressure to adopt more formal KM approaches, particularly to enhance cooperation across the organization and with external stakeholders. The organizational culture strongly supports knowledge sharing both internally and externally, with specific attention given to addressing knowledge-sharing challenges.
The findings provide insights into organizational risks and barriers to KM, as well as effective approaches tailored to the Romanian market context. However, due to the limited sample size and geographic concentration in Bucharest, generalizations to all Romanian KIBS should be made cautiously. Nonetheless, the recognition of KM’s high value suggests a need for awareness and training programs to deepen understanding and foster more strategic approaches to KM within Romanian KIBS.
How to cite
Zbuchea, A., Dinu, E., Iliescu, A. N., Staneiu, R. M., & Salageanu, B. R. (2024). Formalizing Knowledge Management in KIBS. In M. Valeri (Ed.), Knowledge Management and Knowledge Sharing: Business Strategies and an Emerging Theoretical Field (pp. 23-39). Springer Nature Switzerland.
Link – https://link.springer.com/chapter/10.1007/978-3-031-37868-3_2
Abstract
Knowledge is crucial for organizational development, particularly within the knowledge-based view of organizations, where it’s considered the most valuable strategic resource. Effective knowledge management and continuous learning are essential for innovation in products, services, and processes. Knowledge transfer, both tacit and codified, requires proper tools. Therefore, understanding and designing effective strategies for knowledge management might determine competitive advantage and lead to organizational development. This study examines knowledge management in the Romanian Knowledge-Intensive Business Services (KIBS) sector, known for innovation and high performance. Qualitative research, including 16 in-depth interviews with four Bucharest-based companies, reveals a mixed approach: informal methods coexist with somewhat formal practices led by managers. These companies tend to be unconscious adopters of knowledge management, perceiving it as a blend of formal and informal processes that support flexibility, creativity, and organizational innovation. Benefits considered include data access, knowledge sharing, better decision-making, and increased effectiveness. Overall, knowledge management plays a pivotal role in the success of the investigated KIBS organizations.