Final project topic impact of knowledge management on organizational performance

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES - INFORMATION TECHNOLOGY FACULTY OF INTERNATIONAL BUSINESS ADMINISTRATION FINAL PROJECT TOPIC: IMPACT OF KNOWLEDGE MANAGEMENT ON ORG

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES -

INFORMATION TECHNOLOGY

FACULTY OF INTERNATIONAL BUSINESS ADMINISTRATION

FINAL PROJECT TOPIC: IMPACT OF KNOWLEDGE MANAGEMENT ON ORGANIZATIONAL

PERFORMANCE

Course: Knowledge Management

ID Class: 231142213201

Members’ name: Huỳnh Nguyễn Ngọc Hân 21DH122949

Đỉnh Thị Út Nhi 20DH121560

Nguyễn Hải Vy 21DH122192

HCMC, December 2023

Table of Contents

CHAPTER 1: LITERATURE REVIEW .LQ TH nh nh nh kế 4 1.1 Introduce the †OpDÌC .-c HH nhi 4 1.2 Reasons for choosing the †OpÍC - LH nhe 4 1.3 The basiC COnC@pÏS LH TH khi 5

1.3.1 Definition and Concepts of Knowledge Managemert - 5

Figure 1: Knowledge Managemert in Organization .-senhnhhhhhHke 5 1.3.2 Knowledge Management in BUSINESS .- c nen Hee 6 CHAPTER 2: LITERATURE REVIEW nh HH kg Hệ 6 2.1 Existing Knowledge Managemernt Practices Evaluation .cccằằằ 6 2.2 Understanding the Connection Between Knowledge Management and Organizational Performance nh HH HT khe 7 2.2.1 The importance of knowledge management in organizational effectiveness7 2.2.2 The Role of Knowledge Management in Organizational Performance 9

Figure 2: The Role of Knowledge Management in Organizational Performance 9

2.3 Knowledge Management Impacts on Organizational Performance 10

P.9 ion cố cố ố ốn aa 11

2.4.1 Toyota Applies Knowledge Management to Enhance Innovation and EPPICIONCY 0.0 an 11 2.4.2 Face the challenge . - c ch nh kinh 12 2.4.3 Lesson Learned from TOyOfA nén HH nh ky 18

CHAPTER 3: RECOMMENDATIONS Ác nh HH Hành he tre 14

Catching the trend of technologi@s nh nh HH HH HH 14 Evolve training DrOQrArS - -c nh tk k tr 14

Enhance Customer Knowledge Managemeri - nhe 14

lnvest in Change Managemer: nh Hà HH He 14

REFERENCES nh nh HH KH KT KT kg KH ngu 16

ABSTRACT

Knowledge management is seen as a crucial tool for preserving competitiveness and

enhancing operational effectiveness Evaluating the effectiveness of architecture management (KM) is becoming increasingly crucial as it shows how businesses may become more competitive and perform better Understanding the elements involved in putting the

knowledge management idea into practice to enhance organizational performance is provided

by this article Furthermore, it offers an evaluation tool that aids businesses in assessing their knowledge management skills,

pinpoints deficiencies in current knowledge management systems, and suggests possible avenues for enhancing the efficacy and productivity of the organization There is a link

between knowledge management capabilities and organizational performance, as showed by

the results, which demonstrate that all components of knowledge management skills have a highly significant association with all performance metrics at 1% significance.Keywords: Knowledge Management; Productivity; Organizational Performance; Knowledge

Management Capabilities

CHAPTER 1: LITERATURE REVIEW

1.1 Introduce the topic

Ensuring the effective and efficient use of an organization's resources—such as labor, money,

materials, energy, and information—is the primary goal of organizational management to boost performance energy and reach competitiveness In the current era of swift technological advancements, businesses consistently try to preserve a competitive edge by setting

themselves apart from the competition by offering superior goods and services Among the

many strategies, management in companies is putting more emphasis on expertise, prior experiences, and a thorough understanding of workers to accomplish standard goals with perfection Additionally, in these days of organization, it's critical to enhance employee communication and transform corporate cultures to transfer information Productivity is the primary strategic development goal for any firm in today’s competitive environment Knowledge management so offers to set up the proper framework and technology infrastructure required for people-oriented organization and task delivery One of the most important management procedures is providing staff with the training they need to reduce costs, raise quality, and satisfy customers The use of various information technologies and methodologies in knowledge management functions enhances the variety of the organization's results by reflecting distinct actions for separate processes Consequently, to lower implementation costs, remove resource shortages, accelerate delivery times, improve quality, and boost performance, today's occupations require increased information and communication

1.2 Reasons for choosing the topic

Although knowledge management is no longer a new term, it seems to be the most underrated

management function in businesses today The cyclical nature of project management, human resource management, and business administration These are hot spots that should always b: avoided However, in modern mana gement, especially in these volatile times, businesses must seriously consider and reconsider this issue to create a solid basis for initiatives for your next conversion The article summarizes the situation of knowledge management in enterprises,

discusses the current implementation status, and makes recommendations for Vietnamese enterprises that want to apply knowledge management models in their operations

1.3 The basic concepts

1.3.1 Definition and Concepts of Knowledge Management

1.3.1.1 Definition of Knowledge Management

Knowledge Management (KM) is the process of finding, classifying, preserving, and sharing information inside a company or endeavor is known as knowledge management or KM When information is hard to find within a company, it can be quite expensive for the enterprise

because valuable time is lost looking for pertinent information instead of finishing result- oriented tasks

Furthermore, by using the organization's pooled knowledge, knowledge management systems improve performance Knowledge bases are used to support these systems They often play a

key role in the success of knowledge management by offering a centralized location for

information storage and easy access

Figure 1: Knowledge Management in Organization (Behal, 2022)

Knowledge Management

1.3.1.2 Concepts of Knowledge Management

5

In Knowledge management (KM), knowledge resources are systematically and purposefully managed to support learning, creativity, and teamwork Knowledge management (KM) is

based on the core idea that knowledge is a dynamic, ever-evolving resource that can be

produced, shared, and used in novel ways, rather than merely a static resource that needs tc

be saved and retrieved Knowledge management (KM) acknowledges that knowledge is not

only owned by individuals but also by groups, organizations, and communities

Knowledge generation, knowledge capture, knowledge sharing, and knowledge transfer are just a few of the techniques and activities that are included in knowledge management (KM)

Creating a culture that is conducive to knowledge generation and sharing, along with putting

in place the right tools and procedures to help these endeavors, are all necessary for effective

knowledge management Making better use of knowledge resources by communities and

organizations is the aim of knowledge management (KM), which boosts productivity, creativity, and competitiveness Organizations can strengthen their ability to innovate, create and support a competitive advantage, and adapt more quickly to opportunities and changing

conditions by managing knowledge well (IBM, n.d.)

1.3.2 Knowledge Management in Business

Align projects in Knowledge Management (KM) with business strategy and learn to measure them as intangible assets to support value creation in the intelligence sector organizations with

intellectual capital wisdom Especially in the business environment, it is necessary to have a strict knowledge management system suitable for each project and each goal That's why it's important to set up a knowledge management system and determine what's right and what's wrong, what's important, and prioritize to implement a project strategy in the best and smoothest way

CHAPTER 2: LITERATURE REVIEW

2.1 Existing Knowledge Management Practices Evaluation

The development of research and practice in a field depends on the use of evaluation techniques The intangible character of the knowledge asset complicates the process of measuring, evaluating, and developing metrics in knowledge management (KM)

Additionally, there is a need for research in this area given the absence of standards for KM

6

business indicators and the relative youth of KM assessment research This chapter addresses

knowledge gaps in the field and examines KM assessment techniques for practice and

research It categorizes the literature according to evaluation units, including knowledge management system (KMS) users, KMS users, projects, KM processes, and organizations overall The significance of taking industry variations into account while evaluating KM is also discussed The chapter concludes by suggesting avenues for future research in KM and KMS evaluation based on the gaps named (Muhammad Raza, 2020)

In addition, it will have many best practices in Knowledge Management:

e Know your problems

e Measure the metrics

e Don’t just manage knowledge—exploit It

e Make knowledge consumable and diverse

e Scale your knowledge sharing

22 Understanding the Connection Between Knowledge Management and

Organizational Performance

2.2.1 The importance of knowledge management in organizational effectiveness

Knowledge management si critical for organizations and businesses that desire to scale their growth while efficiently connecting people across teams and places of business Knowledge management empowers your organization with the knowledge and resources they must perform what they’re supposed to successfully It also aids your organization in preserving that information for future consumption, fostering work efficiency, a better workplace, and less recurred labor ( Starmind, 2022)

Productivity and Operational Efficiency: A Newbie might learn about the organizational structures, charts, workflows, and company handbook In the situation that they’re not stored

in any place, they still can discover them from their colleagues (who they may not know) or their seniors (who do not have enough time) to share them Knowledge management optimizes internal processes from building standardized procedures to removing redundancy and boosting workflows Enhanced effective performance leads to improving the manufacturing

process By acknowledging knowledge management, organizations can lower bottlenecks, decrease risks, and advance overall process effectiveness

Improving decision-making: Information that is accurate, relevant, and up-to-date is

confirmed by Knowledge management Effective leadership involves informed decision- making Decision-makers frequently rely on data insights thanks to Knowledge Management, which reduces the possibility of errors and promotes the overall quality of strategic choices

Knowledge Management emphasizes the exchange of ideas, lessons learned, and best practices, driving an innovative culture The crucial role of innovation in corporate success

cannot be underestimated Employees can engage, exchange ideas, and contribute to the invention of brand-new alternatives, merchandise, or services utilizing a structured framework

provided by Knowledge management

Truthful Collaboration and Employee Satisfaction: The transparency and straightforwardness

of access to organizational-wide information incites cooperation and generates harmony around common goals Therefore, when a business develops processes for soaking employee:

in precisely all the information they need, it indicates to them that their time and skills are far too essential to be sacrificed on digging up for information Individuals provided with the correct information may also contribute more, generate results, and get more involved with the performance

2.2.2 The Role of Knowledge Management in Organizational Performance

Knowledge Creation

Knowledge Accquisition [-

Knowledge sharing

Knowledge Transfer —]

Knowledge Application |—

| Knowledge Management Processes |

Figure 2: The Role of Knowledge Management in Organizational Performance (Issa

Shehabat, 2020) Knowledge Creation: In an organization, manufacturing Knowledge involves developing new insights, ideas, and information Organizations can promote manufacturing knowledge using practices that include discovery and creation, meetings for brainstorming, and encouraging an environment that fosters creativity Cross-functional partnerships and various teams can stimulate innovation and manufacturing of new knowledge by bringing an expansive range of perspectives Knowledge may be created utilizing both formal products (such as R&D initiatives) and informal interactions among personnel

Knowledge Acquisition: Involves gathering information and learning from a variety of

reports, inside as well as outside of the business Organizations might get information by doing

market research, competitive analysis, seeking client, feedback, and reading trade magazines