mahmoud aiy ghanemopenaccess.aast.edu/pdfs/thesis/partial/74548_c.pdfarab academy for science &...
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ARAB ACADEMY FOR SCIENCE, TECHNOLOGY AND MARITIME TRANSPORT
COLLEGE OF COMPUTING AND INFORMATION TECHNOLOGY
Establishing Relationship between Knowledge Management and Innovation in SmaU and Medium Enterprises
A thesis submitted in partial fulfillment of the requirements for the degree of
Master of Science in
Information systems
By
Mahmoud AIy Ghanem
Supervisors:
Dr. Nader Nada Associate Prof. of Information
Tecbnology CoUege of Computing and
Information Technology, AASTMT
Dr. Mobamed Kbollef Bead of Educational
Departments CoUege of Computing and
Information Tecbnology, AASTMT
August 2012
Dedication
To my parents,
Thank you for being the best parents a son could ever wish
To my brothers
Eng. Ashraf, Ahmed, Mohamed, Amany, and Osama Ghanem
To my wife: Eng. Asmaa Abdelaziz
And to my daughters: Sarah, Mariam, and Yara Ghanem
I love you all with all my heart
Asking Allah to sustain all of you all your health and wellness
ii
Abstract
Knowledge management and innovation are two key activities for companies. This thesis
examines the relationship between knowledge management and innovation which developed a
distinct and specific focus on knowledge management practices and the various activities which
are explicitly intended or utilized for creating and processing knowledge. This thesis provides a
practical knowledge management framework for improving the various forms of Knowledge
Management within the innovation processes of companies. It also examines the relationship
between knowledge management and innovation to create a working model that will assist small
and medium enterprises in building innovative qualities and knowledge management practices
into their business processes.
Following a description of the five mam groups of knowledge management practices for
innovation, the main operational element of the audit tool is in the form of a detailed
questionnaire which aims to act as both a discovery mechanism and as a prompt to further
reflection on the specific knowledge management activities within innovation processes. This is
complemented by a format for specifying action plans for improving knowledge management
practice for Innovation. A number of interviews are conducted with 40 SMEs to capture and
validate best practice techniques. The goals of the analysis are (a) to understand the SMEs current
capabilities and innovation management practices in each organization and (b) to identify a set of
recommendations that may facilitate and enhance innovation management in all participated
SMEs. Results show that the majority of the SMEs have apparent lacking of innovation strategic
plan, culture, and formal process and assessment approach to measure impact of innovation
project. These factors impact the overall success of the organization.
iii
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Arab Academy for Science & Technology ~ ~J College of Computing and Information Technology ~,. L;'.1 Post Graduate Studies ·.~or
DECLARATION
We certify that we have read the present work and that in our opinion it is fully adequate in scope and quality as a dissertation towards the partial fulfillment of the master degree requirements in
Name: Mahmoud Aly Mahmoud Aly Ghanem Specialization: Computer Information Systems Date: August, 14,2012 From College of: Computing & Information Technology, Arab Academy for Science, Technology & Maritime Transport.
Supervisors:
Name: Dr. Nader Nada
Position: Associate Professor CoIleAe of Co~utin~)nformation Technology, AAST
Signature: ~~.J Name: Dr. Mohamed Kholief J
Position: Associate Professor Coll~f Computing and Information Technology, AAST
Signature: (-~ Name:
Position:
Sig~ature:
Examiners:
Name: Dr. Isam Kosba
Position: Vice Dean College of Computing and Information Technology, AAST
Sigrzpture: ...pI ...l.
Name: Dr. Shawkat Kamal Gui~is
Position: Professor Institute of Graduate Studies and Research (IGSR)
Signature: 1// :2
~~J Arab Academy for Science & Technology ~~t College of Computing and Information Technology ~;;;";'»tt-' Post Graduate Studies
DECLARATION
I Certify that all the material in this thesis that is not my own work
has been identified, and that no material is included for which a
degree has previously been conferred on me.
The contents of this thesis reflect my own personal views, and are not
necessarily endorsed by the University.
Name: Mahmoud Aly Ghanem
(Signature)
(Date) August, 14,2012
Acknowledgements
I would like to express my deep and sincere appreciation to my advisors Dr. Nader Nada and Dr.
Mohamed Kholief. It was Dr. Nader who led me to this wonderful world of research thank you
for giving me this opportunity to work with you and I am really thankful to Dr. Kholief for his
keenness to support me and guide me and for providing me with all kinds of help whenever I
needed during my research and even before.
I am really thankful to both of you for providing the freedom in conducting research and
providing me the various opportunities to participate in this interesting topic. I am extremely
grateful to you for your guidance and assistance in all matters, and for your infinite wisdom and
patience. I am indeed fortunate to have two such advisors like Drs. Nada and Kholief.
I am grateful for the support provided by participants that have played a key role in making this
research possible. I would like to thank all key persons who played imperative roles to guarantee
a successful study, Special thank you to Dr. Saleh Mesbah; I could never thank him enough for
the effort he put and valuable time he gave me. Dr. Ayman Adel Abd-Elhamid, Eng. Ehab
Ahmed and all my colleagues at Arab Academy for Science, Technology and Maritime Transport
Computer Network and Data Center (CNDC).
vi
Table of Contents
Abstract .......................................................................................................................................... .iii
Declaration ........................ " ............................ " .............. " ............................ .iv
Acknowledgements ....................................................................................................................... viii
List of Tables ..................................................................................................... v
List of Figures .................................................................................................. vi
List of Abbreviations ......................................................................................... vii
CHAPTER ONE: INTRODUCTION ........................................................................................... xiii 1.1 Introduction ............................................................................................................................ 1
1.2 Research Problem ................................................................................................................... 1
1.3 Research Motivation ............................................................................................................... 2
1.4 Research Objectives ............................................................................................................... 3
1.5 Research Questions ................................................................................................................ 3
1.6 Research Methodology ........................................................................................................... 3
1.7 Thesis Structure ...................................................................................................................... 4
CHAPTER TWO: LITERATURE REVIEW .................................................................................. 5
2.1 Related Concepts .................................................................................................................... 6
2.2 Knowledge Management (KM) .............................................................................................. 8
2.2.1 Sources of Knowledge .......................................................................... '" ........................ 9
2.4 Importance and Benefits of KM for Organizations .............................................................. 12
2.5 Infrastructure for Knowledge Management ......................................................................... 13
2.6 Knowledge Management Frameworks ................................................................................. 15
2.7 Knowledge Management in SMEs and Large Organizations .............................................. 16
2.7.1. Management. ................................................................................................................. 16
2.7.2. Structure ........................................................................................................................ 18
2.7.3. Culture .......................................................................................................................... 18
2.7.4. Human Resources ......................................................................................................... 18
2.8 Barriers for Knowledge Sharing in SMEs ............................................................................ 19
2.9 Innovation ............................................................................................................................. 20
2.9.1 Innovation Drivers ......................................................................................................... 21
vii
2.9.2 Types of Innovation ....................................................................................................... 21
2.10 Classification of Innovation ..................................................... '" ....................................... 22
2.11 Innovation Process Models ................................................................................................. 23
2.12 Relationship between Knowledge Management and Innovation in SMEs ........................ 29
CHAPTER THREE: INVESTIGATION OF RELATIONSHIP BETWEEN KM PRACTICE
AND INNOVATION IN SMES .................................................................................................... 31
3.1 Introduction .......................................................................................................................... 32
3.2 Research Questions .............................................................................................................. 33
3.3 Research Approach ............................................................................................................... 34
3.4 Potential Data Gathering Methods ....................................................................................... 34
3.5 Research Strategy & Data Gathering Method ...................................................................... 35
3.6 Description of the Chosen Research Method ....................................................................... 36
3.7 Sampling Considerations ...................................................................................................... 36
3.8 Limitations of the Research .................................................................................................. 37
3.9 Data Gathering Surveys ........................................................................................................ 38
CHAPTER FOUR: ANALYSIS OF THE FILED WORK ........................................................... 39
4.1 Introduction .......................................................................................................................... 40
4.2 Overall Survey Results ......................................................................................................... 40
4.2.1 Overall Result ................................................................................................................ 40
4.2.2 Results from Innovation Area 1: Strategy .................................................................... .42
4.2.3 Results from Innovation Area2: Innovation Processes ................................................. .43
4.2.4 Results from Innovation Area3: Innovative Organization ............................................ .44
4.2.5 Results from Innovation Area4: Linkages and Networking .......................................... 45
4.2.6 Results from Innovation AreaS: KM and Learning ...................................................... .46
4.3 SurveylInterviews - Detailed Results Analysis ................................................................... 47
4.3.1 Innovation Management Area 1- Strategy .................................................................. .47
4.3.2 Innovation Management Area 2 - Innovation Processes .............................................. .49
4.3.3 Innovation Management Area 3 - Innovative Organization ......................................... 52
4.3.4 Innovation Management Area 4 - Linkages and Networking ....................................... 54
4.3.5 Innovation Management Area 5 - Knowledge Management and Learning .................. 57
4.3.6 Results Summary ........................................................................................................... 59
viii
CHAPTER FIVE: INNOVA nON DRIVEN KNOWLEDGE MANAGEMENT FRAMEWORK FORSMEs ..................................................................................................................................... 62
5.1 KMF Implementation Strategy ............................................................................................. 64
5.1.1 Formulate Measurable Business Objectives .................................................................. 64
5.1.2 Secure Appropriate & Ongoing Executive Sponsorship ............................................... 65
5.1.3 StaffKM Team with the Right People .......................................................................... 66
5.1.4 Identify & Tackle Resistance to Knowledge Sharing .................................................... 67
5.2 Implementing KM Framework: Planning ............................................................................ 68
5.2.1 Identify Key Target Consumers and Subject Matter Experts ........................................ 68
5.2.2 Invest in Detailed Business Needs Assessment.. ........................................................... 70
5.2.3 Identify a Small, But Critical First Phase KM Implementation .................................... 70
5.2.4 Select and Create Relevant & Adequate Knowledge Content ....................................... 71
5.2.5 Design Simple & Effective Knowledge Workflow Processes ....................................... 72
5.3 Implementing KM Framework: Execution .......................................................................... 73
5.3.1 Execute to a Detailed and Meticulous Project Plan ....................................................... 74
5.3.2 Effectively Manage a Flexible Project Scope ................................................................ 74
5.3.3 Keep the User Community Involved at all Times ......................................................... 76
5.3.4 Obsess About Knowledge Quality ................................................................................. 76
5.3.5 Market the KM Implementation .................................................................................... 77
6.KM Framework Implementation ................................................................................................. 78
Feedback ........................................................................................................................................ 79
CHAPTER SIX: CONCLUSION AND RECOMMENDA nONS ............................................... 81
6.1 Conclusion ............................................................................................................................ 82
6.2 Recommendations for Further Research .............................................................................. 84
References .... : ................................................................................................................................. 86
ix
List of Figures
Figure (2.1) Primary repositories of organization's knowledge 10
Figure (2.2) Knowledge Management Infrastructure 14
Figure (2.3): Operational management of market strategy 17
Figure (2.4): Strategic management of market strategy 17
Figure (4.1) Overall innovation management capability rating 41
Figure (4.2) Innovation Area 1: Strategy - SMEs Mean Ratings 42
Figure (4.3) Innovation Area 2: Innovation processes - SMEs Mean Ratings 43
Figure (4.4) Innovation Area 3: Innovative organization - SMEs Mean Ratings 44
Figure (4.S) Innovation Area 4: Linkages and networking - SMEs Mean Ratings 45
Figure (4.6) Innovation Area S: Knowledge management and learning - SMEs
Mean Ratings 46
Figure (4.7) Innovation Management Area 1 - Innovation strategy: Results 47
Figure (4.8) Innovation Management Area 2 - Innovation processes: Results 50
Figure (4.9) Innovation Management Area 3 - Innovative organization: Results 52
Figure (4.10) Innovation management area 4 - Linkages & networking: Results 5S
Figure (4.11) Innovation Management Area 5 - Learning: Results 57
Figure (S.l) Three Stage Knowledge Management Framework 63
Figure (5.2) Strategy Phase of Proposed Knowledge Management Framework 64
Figure (S.3) Planning Phase of Proposed Knowledge Management Framework 69
Figure (S.4) Execution Phase of Proposed Knowledge Management framework 75
Figure (S.S) copy of the letter sent to SMEs inviting them to participate on the study 79
Figure (6.1) analysis finding, Correlation between knowledge management and
Innovation 83
x
List of Tables
Table (2.1) Definitions of knowledge
Table (2.2) important research contributions to knowledge management
Table (2.3) Definitions of knowledge management
Table (2.4) Benefits of Knowledge Management
Table (2.5) Critical comparison of knowledge management frameworks
Table (2.7) Historic overview of innovation management models
Table (2.8) Characteristics of innovation management models
Table (2.9) Main activities of innovation process
7
9
11
12
15
24
25
27
Table (2.10) Main contextual components, subroutines, organizational influences, strategy
elements 28
Table (2.11) Organizational dominants of innovation 30
Table (4.1) Innovation Management Area 1 - Innovation strategy: Detailed Results 48
Table (4.2) Innovation Management Area 2 - Innovation processes: Detailed Results 50
Table (4.3) Innovation Management Area 3 - Innovative organization: Detailed Results 53
Table (4.4) Innovation management area 4 - Linkages & networking: Detailed Results 55
Table (4.5) Innovation management area 5- KM & learning detailed results 58
Table (4.6) Summary of research results 60
xi
CMMI
DFD
msc
IC
IFIM
IP
IPMC
KlTO
KM
KPI
NPD
OlIN
OAI
R&D
RFID
SMEs
SP
TQM
QA
WES
WIMS
List of Abbreviations
Capability Maturity Model Integrated
Data Flow Diagram
Innovation Balanced Score Card
Intellectual Capital
Integrated Framework for Innovation Management
Intellectual Property
Intellectual Property Management and Commercialization
Knowledge Intensive Technology Organization
Knowledge Management
Key Performance Indicators
New Product Development
Open Innovation and Innovation Network
Organization Assessment Instrument
Research and Development
Radio Frequency Identification
Small, Medium Enterprises
Strategic Planning
Total Quality Management
Quality Assurance
Work Environment Scale
Web-based Innovation Management System
xii
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