the impact of web 2.0 in the informal learning of the portuguese sme

The impact of Web 2.0 in the informal learning of the Portuguese SME

Bruno Marques and Rui Brandão

Portuguese Industrial Association – Enterprise Confederation (AIP-CE) and Centre of Studies on Portuguese Speaking Peoples and Cultures,

Portuguese Catholic University (CEPCEP/ UCP)

Summary Small and medium enterprises (SME) are specially pressured in the competitive landscape towards greater efficiency, specialization and innovation. Web 2.0 technologies can be used as an answer to those needs, as enablers of new working methods, with special emphasis on the role of communities and collaboration. Recognizing the emergence of a learning and knowledge-based society, and the pivotal role of SME in the European economy, AIP-CE and CEPCEP/UCP started a pilot study in Portugal. The goal of this ongoing project is to contribute to the debate over SME usage of Web 2.0 tools in the learning context, providing an insight over current trends as well as helping to design future actions. The researchers are using three different tools for empirical data collection: quantitative surveys, workshops with “pioneer” SME and think tank sessions. As the study is not yet completed, the focus of the current paper is to present the key ideas, conceptual model and methodology, as well as our preliminary findings. The preliminary results show the need of a deep change in the SME management paradigm before the full exploitation of the Web 2.0 can occur. While the development of learning environments and sharing networks is helping to configure an SME 2.0 vision, that vision won’t have an easy time turning into reality due to the incipient usage of these tools and the existing obstacles. Therefore, the concept of a fast, easy and global adoption in SME should be discarded. Nevertheless, the competitive enabler that a network based collaboration represents, the recognized value of knowledge sharing and the willingness of people to participate in change are all positive factors in the path towards the persistent and systematic development of the SME 2.0 vision. Businesses and public policy makers should not be indifferent to this opportunity and trend in the knowledge based society. Keywords: Organizational learning, SME 2.0, Web 2.0, knowledge economy, collaborative processes, informal learning 1 Introduction In a world of new realities and demands, the SME answer to competitive pressure entails knowledge and acquiring competencies, as well as extensive adoption of Information Technologies (IT) in their business processes. In this context, AIP-CE and UCP/CEPCEP started an exploratory study regarding informal learning and the use of IT 2.0 in the Portuguese SME, with the purpose to contribute for the

eLearning Papers • www.elearningpapers.eu • 1 Nº 18 • February 2010 • ISSN 1887-1542

reflection regarding new skills but first and foremost on how this concepts could be translated into the actual SME day to day reality, and having an insight on the current adoption and future possibilities. The study received the financial support of POAT/FSE (Programa Operacional de Assistência Técnica do Fundo Social Europeu). Thus, the focus is to understand how Web 2.0 tools are being adopted on a strategic level, especially for the development of their business processes with a logic of collaboration and innovation. For this “SME 2.0” to become a reality, it is critical to devise the implementation plan with proper consideration for the social and technical dimensions. As a result, a few fundamental questions become clear: Are SME sensitive to this new challenge? How to develop and support SME in their path towards this new vision? As this is still an ongoing study, our main purpose is to set the key points, introduce the conceptual model and methodology, as well as presenting our preliminary findings and future orientations.

The Web 2.0 is currently “in the wild” and used for communication and

informal learning in a non professional context by millions.

Under competitive pressure in a knowledge based economy, are SME

adopting those tools for core business practices, namely knowledge

building informal learning?

2 Background The European reference regarding business competitiveness and social cohesion and development standards places a special emphasis on knowledge and innovation. The wealth creation model is based upon new development standards, based on innovation (applied knowledge): “In this new economic order, Europe cannot compete unless it becomes more inventive, reacts better to consumer needs and preferences and innovates more.” (Commission of the European Communities, 2006). Aligned with the Lisbon Agenda, these strategic vectors become critically important with the onset of the knowledge society. With the goal of supporting learning in the organizations and the transfer of innovative practices, the development of competencies and continuous human qualification are central themes. In this context, naturally the focus becomes informal learning as knowledge dissemination practice and a more productive and effective collaboration logic. At the same time, SME have become of strategic importance at the political level, being the centre of regional growth and employment in Europe. According to INE, in the year 2005, they represented 99,6% of Portugal businesses, accounted for 75,2% of jobs and 56,4% of the business in terms of value (IAPMEI, 2009). At the European level, circa 99% of the companies are SME, which represents about 65 million jobs and are a decisive contributor for entrepreneurship and innovation (Hamburg 2008). Therefore, It becomes clear that the competitiveness of SME is critical for the overall economic performance. Regardless of their collective importance, SME have obvious limits regarding IT investment, talent retention and continuous investment on human capital. In the current competitive context, infrastructure modernization, competency specialization and the development of solid learning cultures, namely in the SME context, are unavoidable factors.


In the learning perspective, it is relevant to increase the actual employees’ IT usage and the informal learning contexts, with the specific goal of acquiring new competencies with business value. SME competitive race is also a race for learning! 2.1 Business strategies, competitiveness and knowledge Companies that are more able to change, have a faster adoption of new working methods and are more effective in selling knowledge based products will have a competitive advantage. Organizational Learning becomes strategic, as a new factor – knowledge – becomes critical in sustaining competitive advantage (Carneiro, R. 2003). In fact, “In this new economy the ability to innovate, to differentiate, to create value, to adapt to change are set by the way that old and new knowledge integrate value chains/networks, as processes and products use useful critical knowledge, as well as by the companies, governments (in general, organizations) and people’s ability to continuously learn. (Carneiro, Fernandes e Conceição, 2001). As we migrate from an industrial society towards information and knowledge based society, intangible resources become the new competitive factors.

Table 1 – Change and competitiveness critical factors (Carneiro, 2003). Industrial Age Information Age

• Muscle • Tangibles • Mass • Hierarchy • Command • Standardization • Closed Systems • Capital

• Brain • Intangibles • Diversity • Networks • Persuasion • Customization • Open Systems • Knowledge

Knowledge management is a tool with the potential to drive companies in the search for new opportunities. Value networks compete and evolve based upon innovation, new idea generation and new product development speed. The support of business development requires collaborative abilities and cooperation strategies that often go beyond company borders. And also requires the mobilization of collective knowledge and continuous learning in the organizations (Pearn, 1994). 2.2 Organizational learning, knowledge management and SME The emergence of a learning-based economy means the acceleration of knowledge creation and sharing. The search for more favourable contexts for its application is an essential key for greater productivity, along with new management principles (Stewart, 1997; Jashapara, 2004). Therefore management must focus on Organizational Learning abilities, placing the human potential and a cornerstone of competitive strategies (Bartlet & Goshal, 2001; Senior, 2000). SME are depicted as having non-formal management system and a manly tacit action. Most do not have a training strategy (Hamburg, 2008). Thus they could be prime candidates for the consolidation of collaborative strategies based upon knowledge. But that requires a profound change in the traditional management model, which is deeply rooted in the command and control mindset with a low employee involvement, towards a new organization architecture: still mainly informal but with structured explicit knowledge; effective but based on information sharing; directive but taking into consideration all the experience and knowledge of the human


structure; and more open, where socialization provided by physical proximity is enriched by inter companies socialization. Learning is always an active process. In the organizations it is predominantly a social process (Nonaka & Kono, 1998; Adler, 2002; Pina e Cunha, Lopes, Ceitil & Rego, 2008; Schein, 1992), where the individual knowledge transfer to the organizational level depends upon a complex set of variables (Senior, 2001; Amaral & Pedro, 2004). A collaboration culture is essential, as although learning may have an individual dimension it occurs and is always applied in a social context. The value of the intangible components of knowledge underlines the critical role of a culture of Collaboration in the organizations (Adler, 2002). Learning also presupposes a social architecture that promotes ample and deep participation off all workers-managers (Magalhães, 2005). 2.3 The rise of Web 2.0 Web 2.0 can be described as a vast group of information resources: wikis (of which Wikipedia is the most famous example); blogs, Youtube; Google, social and Professional networks, etc, made available through the Internet and where the users as a community are the driving force. The great change in comparison to the previous generation is the materialization of the concept of the Web as a social, connection based reality, where “multicast” is the norm, rather than the exception. The underlying promise of Web 2.0 is to change the way the business activities are organized, towards a better coordination and increased and faster information sharing. With the mission of supporting the activities of knowledge workers and a vision of organizations not as information processors, but as social contexts dedicated to knowledge creation, the enterprise 2.0 paradigm comes into existence (McAfee, 2006). Currently, Web 2.0 has had an undisputed leverage effect on information sharing and direct access to knowledge resources. But regardless of its technological vitality and massive society adoption, the corporate adoption does not occur in a neutral way. In other words, the Enterprise 2.0 potential is not fulfilled without the change in the traditional management models. 3 Vision, Conceptual model and intervention 3.1 A Vision towards SME 2.0 As referred, the investment in knowledge can result in new opportunities for the companies, in the context of a struggle for competencies. The Internet is a new paradigm, specially the value of the networks as tools for enabling learning and new working methods, with special emphasis on the role of communities and collaboration. The decentralization of knowledge is now reachable, through the network and using powerful collaboration tools. With the emergence of communities, the creation of shared and discussed content, the Internet facilitates and widens the human connectivity. Informal learning is no longer done only in the corporate hallways and coffee-breaks. The neighbouring pub is now a twine of connections that exploded with the Web 2.0 websites (Viveiros, 2007). In the end, what we look for is to promote network based learning models that foster collaborative work, made viable by a social and relational climate that acts as a catalyst of wills and affects the behaviour of the involved agents.


3.2 Conceptual model The vectors of the study were the new perspectives of knowledge based economy and learning society, organizational learning, Web 2.0 tools and SME specific context. Taking into account these factors, a knowledge management (KM) based approach was adopted for the study. KM is a cross-disciplinary domain (Rebecca O. Barclay, Philip C. Murray, 1997), drawing from a wide range of disciplines and technologies. Of special importance is the recognition that while technology can be used in leveraging knowledge, alone it cannot deliver (McDermott, 1999). As a result of the approach, we defined the following starting points:

− IT 2.0 adoption in SME (learning context) is in the first place a human and organizational challenge, and only after a technological one;

− IT adoption in SME requires an internal change agenda, which can mean a structural change;

− Informal learning values tacit knowledge. But it is conditioned by the internal culture receptivity to the new paradigm and its collaborative focus;

− Informal learning signifies a vision centred not on “Information Technologies” but on “Organizational Technologies”.

Organizational Learning is also interdisciplinary – therefore the analytical model implicit in the study must take that into consideration (Zhang, MacPherson, Jones, 2006). We used a socio-technical approach, deconstructing a tech 2.0 utopia which the idea of an unruly mass spread of the tools would automatically translate into SME adoption, with neutral effects on the business processes. As referred, “Organizational learning theory is multidisciplinary. Within the literature, researchers note the relevance of psychology, organizational theory, innovation management, strategic management, economics, organizational behaviour, sociology, political science”. (Polito & Watson) So our position is that Web 2.0 access and presence does not automatically translate into companies 2.0. Regarding this, Carneiro, Fernandes e Conceição (2001) refer “(…) it is not yet clear, in the mindset of many companies, that the medium-term success depends, in this ratio, more of the well thought implementation of organizational, cultural and behavioural changes than of a quantum of technology incorporation.” The applied analytical model had the following underlying principles:

− Learning Organizations principles; − (Informal) learning as a essentially social and dynamic process ; − Focus on applied knowledge, with a knowledge model characterized by a group of

“organizational variables” that can speed up (facilitate) or slow down/block (hinder) learning;

− Recognize that there is a transformation process derived from the impact of social IT on SME learning

The following illustration depicts the above rational:


Organizational Organizational ContextContext

Top Management Support

Human Capital & Competences

Learning Networks

ICT Capabilities

Communication Model

Collaboration Model

K Valorization

Learning EnvironmentLearning Environment

Web 2.0Web 2.0

Organizational Change AgendaOrganizational Change Agenda

Illustration 1. Analytical Model (source: authors’ analysis). The actual Organizational Context is translated into a set of catalysts – organizational characteristics that can foster or hinder learning and knowledge (creation and sharing). These catalysts were selected through the authors’ analysis, based upon different catalyst framework (Quin ,1991; Senge, 1990; Stewart, 2007; Amaral & Pedro, 2004; Bartlet & Goshal, 1997). SME 2.0 means a new management model, with business practices sustained on new ways to collaborate, connecting people, groups, communities and companies. The transformation towards an organizational paradigm of increased collaboration, learning and using the potential of Web 2.0 tools is a multidimensional management challenge. 3.3 Intervention Model One of the greatest challenges of the study regards its materialization in terms of the SME activities. Although it is only an exploratory study, the observation of the actual reality was a clear concern. As referred, three different tools were used for empirical data collection:

Table 2. Tools for SME observation and data gathering. Tool Description

Survey Creation of a set of data gathering tools: surveys and structured interviews, to be applied on a selection of statistically representative SME.

Knowledge Workshops

Workshops with SME, with the purpose of verifying adherence of the concepts to reality – and, as a by-product, also some “evangelization” towards the importance of the theme. During these workshops there was as strong emphasis in helping the participants to translate their organizational context into values of catalysts, based upon their



Tool Description analysis of the organization. This process was strongly supported through

of scenario projection regarding possible evolution of informal learning in SME.

interaction with a facilitator. It is also the area

Think-Tank Think Tanks with participants with varied backgrounds (sectors and activities), with the goal to draw up a common theoretical referential.

4 Empirical Component (field work) At this time, six knowledge workshops and two think tank sessions were executed. The themes of the Think Tanks were “Competencies, Qualifications and Employment” and “Change and Learning”. Several exploratory interviews with SME were carried out, ad the quantitative survey is currently on an answer reception stage. Taking into consideration the available data, we will only present the preliminary findings based upon qualitative analysis and how they relate regarding the initial assumptions of the study. 4.1 Key ideas field results Key Idea #1: IT 2.0 adoption in SME (in the learning context) is in the first place a human and organizational challenge, and only afterwards a technological one. Empirical verification: This idea was debated during the workshops and there was a clear idea the IT 2.0 is a mean to an end, and not the end on itself. Regarding the implementation challenges we had the following observed gaps:

Illustration 2. Learning gaps (preliminary data).

From the preliminary data a strategic gap surmises: insufficient valorisation of knowledge in the current internal learning models. This factor hinders learning dynamism and hurts employee creativity. Also, the collaboration model does not help information sharing and easy communication. In the future, there will be increasing demands on the human capital/competencies, and the need for an effective top management support and a communication model that facilitates learning and reinforces the human network. Also of notice, technical abilities are considered by the SME as a weakness for the deployment of new collaborative models. Key Idea #2: IT adoption in SME requires an internal change agenda, which can mean a structural change. Empirical verification: In general, SME qualify the transformation as gradual, both at internal and external levels. Nevertheless, it is clearly recognized that this new processes represent a change. As an example, top management support is qualified as being essential in the future, and human capital/competences appear as a driver for change. Knowledge valorisation, the reinforcement of internal and external networks and access to competencies are characteristics to be developed. Key Idea #3: Portuguese SME can currently take advantage of the new opportunity (Web 2.0 tools) and apply it on the day to day business reality Empirical verification: Currently the adhesion on the field is feeble. On the short term no mass adoption of tools 2.0 can be perceived, as depicted in the following graphic:

Illustration 3. Web 2.0 tools implementation: current and future (forecasted) adoption by SME (preliminary data) (new implementations).


There is no perspective of an automatic or generalized adoption. The most referred tools are wikis and communities of practice and social networks. But taking into consideration the timeframes that are presented, there is a strong suspicion of “wishful thinking”. The current low adoption and the lack of IT resources also mean that there is room for a support strategy for the SME, one that will have to increase the awareness for the potential business impact of the web 2.0 tools and mature collaboration processes. Key Idea #4: SME Management is aware of the potential and is open to change. Empirical verification: SME management and employees have shown awareness of the importance of network collaboration and value knowledge dissemination. The motivation to participate in change towards new collaborative strategies is high, but their positioning is not of a pioneer, but a more conservative standing. The exploratory study suggests a low penetration of these themes, despite the high value recognition and their agreement with the business challenges. Despite being generically mentioned that future competitive demands will be met by increased human competencies, enhanced collaborative strategies and greater employee involvement in collective learning, there is a great gap regarding the actual implementation of Web 2.0 tools. So the outcome on this idea is that while the management states as being sympathetic and in agreement, in practice no steps towards the fulfilment of the concept have been taken. Key Idea #5: There are facilitators that can impact on the implementation of informal learning models by the using the potential of IT 2.0. Empirical verification: The most important agents for facilitating the adoption of tools 2.0 were identified as being the Consultants, Clients/Suppliers/partners, Schools/Universities, EU Project funding and employees.

Illustration 4. Facilitators Evaluation (preliminary data).


According to the respondents, all referred entities could improve their action. For example, universities are seen as an entity with a strong potential for positive impact, but with low current action. The same applies to Schools and to a lesser extent, Public Administration. Regarding commercial entities, consultants are considered to be critical in the process. Interestingly, employees are considered to be the facilitators that currently have the smallest gap compared with their future role. 4.2 Synopsis of the Key Ideas The following table presents the preliminary conclusions of the study. These should be confirmed, rectified or even abandoned with the final results of the study.

Table 3. Empirical study synopsis (preliminary data)

Empirical Evidence Key Ideas Status Explanation

1. IT 2.0 adoption in SME (in the learning context) is in the first place a human and organizational challenge, and only afterwards a technological one

It is needed a multidisciplinary approach for the introduction of the Tools 2.0 on SME. The SME 2.0 vision not only depends of the technical abilities – but these are required and there is a gap in the companies that needs to be overcome. Several other gaps that can block learning and knowledge application also exist in the SME,

2. IT adoption in SME requires an internal change agenda, which can mean a structural change

In general, SME refer that the required degree of transformation is gradual, both on internal and external level. Nevertheless, they recognize that these processes represent a change and that top management support is critical for its successful implementation.

3. Portuguese SME can currently take advantage of the new opportunity (Web 2.0 tools) and apply it on the day to day business reality

The current adhesion to these tools is minimal. Furthermore, on the short term, there is no possibility of an accelerated adoption of Tools 2.0 by the SME. There is room for a support strategy for SME adoption, but it must actively work and improve the maturity of collaborative processes.

4. SME Management is aware of the potential and is open to change

SME management did recognize the importance for competitive performance of network collaboration and knowledge sharing. Also, the motivation in participating in change and new collaborative practices is high. Nevertheless, the positioning is not of pioneer, but a less forward-looking one.

5. There are facilitators that can impact on the implementation of informal learning models by the using the potential of IT 2.0

n.a.

The most critical agents for facilitating the future adoption of Tools 2.0 were consultants, universities/schools, clients/suppliers The change agents can be originated from the market, public entities/policies and from the community

Legend:


5 Preliminary conclusions We stress that the exploratory study is not yet concluded, and the empirical data that we based our findings is preliminary, hence these findings are likely to be changed. Regardless of the preliminary status, the field work allows us to draw some conclusions, to be confirmed, changed or withdrawn when the study is finalized. Firstly, the key idea that informal learning means an “Organizational Technologies” centred vision and not an “Information Technologies” centred one is confirmed in the empirical observations. Knowledge valorisation, human competencies and top management support are presented as critical in the learning organization challenge. The introduction of tools 2.0 should take into consideration these organizational catalysts as well as the existing collaboration and learning climate, with due concern with the maturity and sustained development. The main results so far point for the need of a transformation process of the current SME management paradigm in order for the potential of Web 2.0 to be captured by the SME. In fact, the development of learning environments and sharing networks on the SME are an opportunity, but the path for actual and generalized SME 2.0 implementation will not be easy and not come into fruition without a certain degree of transformation. It became apparent that any expectations regarding current widespread usage of tools 2.0 by SME did not meet reality. Although indicators regarding the usage of “information society” in Portugal do show a clear increase in access and usage, the business penetration of these tools is still very incipient. Data suggests that Portuguese SME are still in a very early stage regarding SME 2.0 vision. Also, the empirical data does not support expectations of a short term widespread adoption of these tools in SME. Against initial expectations, SME IT capabilities are still an issue, not only regarding the ability to use IT as innovation support in collaborative process, but in the more common business processes. On the other hand, the competitive significance of network collaboration, the value of knowledge sharing and the motivation to be a part of change are positive signs regarding the perspective of the systematic development of SME 2.0 vision. Public policies, schools, universities and EU project financing are referred as important factors to enable that vision. Market related facilitators currently don’t have the influence that they are expected to have in the future. The preliminary findings represent new starting points, challenging all the stakeholders of these themes to address the following issues:

− The concept of a knowledge based economy and a networked society is adopted by current SME management that see in the competitive landscape the signs of this new reality. This translates into the valorisation of human competencies, collaborative strategies and the introduction of IT in the business processes.

− This vision and adhesion in principle are not yet translated into tools 2.0 usage, in which seems to be a gap between strategy analysis and the actual implementation.

− In order to be successful, awareness raising strategies regarding SME 2.0 will probably have to consolidate the “pioneer” SME efforts and increase the adhesion of the next segment. Case studies and other means should be taken into consideration for the implementation of the vision and the needed tools.

− IT capabilities represent a gap yet to be covered – although not sufficient, IT is a needed factor.

− The harnessing of tools 2.0 potential will only be a reality with a change of the work methods towards collaborative based ones.


− Due to the importance placed upon external facilitators, an intervention model will also raise governance issues that should be attended.

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