The research objectives of the thesis are to identify the development model and level of knowledge management system in small and medium-sized enterprises; build overall knowledge for the knowledge management system in the business.
1 ABSTRACT as well as organizational capacity for innovation didn’t consider and evaluate all the factors which affect the competitive advantage Background Nowadays, not only business is important but also knowledge is increasing for the sustainable development of a business and in the nation Knowledge is considered to be meaningful and useful information of personnel data, policies or operational process of each business A Knowledge Management System includes information system, operation system, decision system, unlike data management or information management, knowledge management is creating, sharing, using and developing the knowledge and information of an organization The goal of this site is to provide a comprehensive overview of knowledge management by examining its objectives, scope, strategy, best practice, knowledge management tools, and so on Competitive advantage of enterprise is the knowledge refine the firm’s information assets to meet organizational goals So, knowledge management is a key factor in each business Having many researchers explained the role and impact of knowledge management in the company but the paper didn’t show some issues: Firstly, in the SECI model, Nonaka (2011) found out that the process of converting tacit knowledge into explicit knowledge Base on the example of specific companies, there are some effects or problem on the process of the impact of knowledge management systems How is the knowledge management system sharing, training of staffs and employees in the companies? Secondly, Duska Rosenberg and Keith Devlin (2007) focused on the development and application of an information based on the model that aims to capture formally the explicit and implicit aspects of knowledge This paper did not explain the solution to the motives, ideas and different experience among the staff in the companies The researchers did not consider the knowledge management systems on the effect on training, decision-making Thirdly, All the papers which involve on Knowledge Management in research of companies in the developed countries were having the good training and the strategy for long-term growth In Vietnam, other researches showed that the knowledge maintenance model but not considering the Knowledge Management; range of this researchers is limited to small and medium enterprises that organization system is not transparent, lack of leadership, business management skills and operation in economic transformation are disqualified, focus on short-term goals In the developing countries, how business should solve knowledge management When the businesses have professional operation in the long-term, what they will with their employees with less soft skills, have less experience on management in professional working environment Therefore, my paper gives more solutions of previous researches, I choose the topic: “Research on Enterprise Knowledge Management system to Improve Competitive Advantages for Small and Medium Enterprises in Vietnam” Objective of research Main objective: Building the model on the effect of Knowledge Management System on the SME’s toward Competitive Advantage Detail objective: - Identifying the model and level of development on Knowledge Management in the SME’s in Vietnam; - Design Enterprise Architecture for Enterprise Knowledge Management System - Building the influence model of Enterprise Knowledge Management System to Competitive Advantage in the SME’s 3 Subjects and Scope research 3.1 Subjects Research Structure Knowledge Management Business system to Competitive Advantage in the SME’s Vietnam My thesis is divided into four chapters: 3.2 Scope Research Chapter 1: The issues between the Knowledge Management and Competitive Advantage in SME’s in Vietnam Spatial area of interest: The paper researches the SME’s in Vietnam Chapter 2: The Knowledge Management System in SME’s in Vietnam Temporal area of interest: Data from 2015 to 2016 Chapter 3: Design Enterprise Architecture for Knowledge Management System in SME’s in Vietnam Content of interest: The thesis investigates the realities, constitutes and the impact of Knowledge management system to Competitive Advantage in companies Chapter 4: The Knowledge Management System Model to make competitive advantages for SME’s in Vietnam Methodology New Contributions on the thesis - Collecting Qualitative Data (qualitative – interview, quantitative or combined) New contributions in term of academic literature and theory: I will randomly select companies such as state enterprises, private company, joint venture, Foreign-Invested Enterprise in Vietnam and conduct a survey using two methods: interview and questionnaires - Collecting Data + The interview method (personal Interview) is a face to face communication between the researchers and the respondents e.g staffs, directors and partners of the companies + Questionnaire: The present study will use some questions as the questionnaires to find the information related to the researches If the geographic is far away to use the interview method, researcher will use online interview + Analyzing data: Using SEM – Structural Equation Modeling to test the estimates, exploratory factor analysis and suitability model + Analyze or Design System: using the Enterprise Architecture structure - Predictive and test the Knowledge Management System Model of SME’s Vietnam - Building Enterprise Architecture for the Knowledge Management System Model - Giving the Impact Model of the Knowledge Management System to Competitive Advantage New recommendations: - My thesis evaluates actual state of implementation of the Knowledge Management System in SME’s Vietnam - Knowledge Management System is being used and practice in some SME’s Vietnam CHAPTER THE ISSUES BETWEEN THE KNOWLEDGE MANAGEMENT AND COMPETITIVE ADVANTAGE IN SME’S IN VIETNAM In this chapter, I have already shown in the background of the issues between the Knowledge Management and Competitive Advantage in SME’s in Vietnam The first, I indicate the fact of problem of SME’s in Vietnam The second, I introduce Competitive Advantages and Capacity in building sustainable competitive advantages The third, I give the overview of Knowledge, types of Knowledge and Knowledge Management in companies The last, I explain analysis and evaluation to give the roles of Knowledge Management in building the Competitive Advantages in SME’s 1.1 Vietnam SMEs Depending on the country, the size of the enterprise can be categorized based on the number of employees, annual sales, assets, or any combination of these It may also vary from industry to industry 1.2 Competitive Advantages M.Porter (2004) explained that: “Competitive advantage is a function of either providing comparable buyer value more efficiently than competitors, or performing activities at comparable cost but in unique ways that create more buyer value than competitors and, hence command a premium price” Competitive advantages are conditions that allow a company to produce a good or service at equal value but at a lower price or in a more desirable fashion These conditions allow the productive entity to generate more sales or superior margins compared to its market rivals Competitive advantages are attributed to a variety of factors including cost structure, branding, the quality of product offerings, the distribution network, intellectual property and customer service 1.2.1 The definition of Competitive Advantage 1.2.2 Effect of Core Competence of Enterprises on Competitive Advantage - Creation - Adaptation - Internalization - Connection - Knowledge - Integrated Capacity 1.3 Knowledge Management in Enterprises 1.3.1 The definition of Knowledge Sveiby (1997-1998) showed that “Knowledge is the ability to explain and act something” Following Nonaka& Takeuchi (1995) indicated that “Knowledge is the dynamic process of person to demonstrated faith of truths” Davenport &Prusak (1998) and Davanport (1999) gave the definition of Knowledge is the information in your brain that the aggregation of experience, value, context of information and specialist knowledge These helps to evaluate and coordinate to create new experiences and information including comparison, results, contact and communication Stenmark (2001), Quigley and Debons (1999), Holsapple and Joshi (2000) show that: “The brain transforms information into valuable knowledge which helps us understanding the definitions by answer questions: How? Know-How? Why? Know-Why? 1.3.2 Types of Knowledge Nowadays, several definitions of knowledge and theories to explain it exists Knowledge dividends into many types such as: Individual Knowledge and Group Knowledge, Tacit knowledge and Explicit knowledge 1.3.3 Business knowledge Business knowledge is a sum of skills, experiences, capabilities and expert insight, which you collectively create and rely on in company As a shared resource, knowledge shapes and affects all the activities in and around company - Combination: The creative use of computerized communication networks and large-scale databases can support this mode of knowledge conversion 1.3.4 Knowledge Management in Business Knowledge Management is a multidisciplinary assessing and several definitions Many researchers gave several definitions about Knowledge management so had some confusion Researchers gave two orientations: human orientation and information technology orientation Two orientations show basic of approach, or researcher, organization and investigate Knowledge management system, computer science, artificial intelligence There are definitions of both the approaches, but most of them focus on human orientation and technology orientation is just supporting factors - Classification of Knowledge Management + From the learning organization to Knowledge management + From database to Knowledge management - The process of Knowledge transfer Tacit Tacit Socialization Externalization Explicit Tacit Internalization Combination Explicit Explicit - Environment of transfer knowledge The theory of knowledge creation through the SECI process, and try to advance them further incorporating the dialectic thinking Knowledge is conceptualized as a shared context in motion, can transcend time, space, and organization boundaries to create knowledge (Nonaka, 1991) Knowledge creation is conceptualized as a dialectical process, in which various contradictions are synthesized through dynamic interactions among individual, the organization, and the environment In the knowledge-creating theory, Nonakael at gave the importance of physical space or cyberspace of knowledge transfer environment interaction The environment of transfer knowledge is “a space that allows participants share case and creation knowledge through interaction” + From traditional to knowledge work professions Tacit - Internalization: Transfers from explicit knowledge into tacit knowledge held by the individual through the actual doing or through simulations Explicit Figure 1: SECI model of Nonaka 1.4 The role of knowledge management in creating competitive advantage for SMEs Many information system papers showed the effectiveness of knowledge management systems (KMS) as the most advanced innovation in the future Davenport and Prusak (1998), Johnson (1998), Alavi and Leidner (2001) indicated the importance of developing an organization’s KMS to maintain competitive advantage in business environment Source: Nonaka,1991 - Socialization: Sharing tacit knowledge through face-to-face creation or shared experience - Externalization: Tacit to explicit Developing concepts, which embed the combined tacit knowledge And which enable its communication Knowledge management system in business, especially SMEs is strategic to improve their competitiveness It has four factors: rarer, nonimitate, valuate and irreplaceable, specifically: Creation capacity, adaptation capacity, internalization capacity, connection capacity, knowledge capacity, 10 integrated Capacity Thence, SMEs gives some competitive advantages through methods: CHAPTER KNOWLEDGE MANAGEMENT SYSTEMS IN SMALL AND MEDIUM ENTERPRISES IN VIETNAM - Enhancing products Knowledge management systems in small and medium enterprises in Vietnam is considerably researched from the overview to that of detail The first part of the chapter, it presents an overview of the research school of knowledge management systems Besides, the authors examined the current situation and determine the level of development of knowledge management systems in small and medium enterprises in Vietnam Finally, the author proposed and tested model of factors affecting the knowledge management systems in small and medium enterprises in Vietnam - Creating product differentiation - Keeping customers - Prevent competitors entering the market - Increasing profits by reducing cost Nowadays, information system is important components that helps company maintaining their business goals and having competitive advantage in the market Information technology is an indispensable factor in the strategy of company SMEs should use knowledge management system which is a useful tool to defeat such powerful opponents and attract more customers with their brand positioning strategy 2.1 Situation knowledge management systems in small and medium enterprises in Vietnam We have other with data management or information management and knowledge management is understood as a process created, shared, exploited and developed knowledge assets in enterprises in order to enhance the effectiveness of the innovative capacity innovation and rapid response capabilities of the business 2.1.1 Schools of research on knowledge management system 2.1.1.1 Innovative diffusive theory 2.1.1.2 Reasonable action theory 2.1.1.3 Technology acceptance model 2.1.1.4 Theory of planning behavior 2.1.1.5 The fit between tasks-technology 2.1.1.6 Theory of social capital 2.1.1.7 Social awareness theory 2.1.1.8 Modeling success stories 2.1.1.9 Model of information system 2.1.2 Knowledge management system in small and medium enterprises 11 12 Knowledge Management System (KMS) includes g tools and technology support and organizational problems KMS is all of knowledge of such organizations KMS consist of a current knowledge hidden, appeared, made an creative and shared, stored and used Therefore, it can be defined in many different ways and applied in many areas of the organization of activities related to human technology and processes 2.1.3 Level of development of knowledge management system in small and medium enterprises in Vietnam Level of Knowledge Management system in Vietnam’s SMEs Level 12 Level 18 Level 27 Level 19 Level According to Svetlana Sajeva & Robertas Jucevicius (2010), knowledge management systems are characterized by six factors: (1) Knowledge Management Process (KMP) Factor: KMP consists of variables: Process Implementation and Coordination (KMP1), Process Formulation (KMP2), Process Performance Measurement (KMP3) (2) Strategy Leadership (SL): SL consists of variables: SL1, SL2, SL3, SL4, Reward and motivation (SL5) (3) Organizational Structure (OI): Stacey (1995) states that the OI consists of four variables: OI1, OI2, OI3, Social Networking (OI4) Level 2.2.1 Model of enterprise knowledge management system Level Level Level Level Level Level 20 (4) Technology Infrastructure (TI) Factor: TI consists of three variables: the existence of information and communication technology in line with business development (TI1), access to information technology and business communication (TI2), enterprises have regular application of information and communication technologies (TI3) (5) Academic Organization (OL): OL consists of three variables: learning before knowledge management (OL1), learning in knowledge management (OL2), learning after knowledge management (OL3) (6) Organizational Culture (KC): The KC consists of variables: KC1, KC2, KC3, KC4, Culture of Culture, share knowledge (KC5) Table 1: Cronbach's Alpha Scales of Variable Knowledge Management System 10 20 30 Figure 2: Graduation scale of Knowledge Management system development in Vietnam’s SMEs Graduation scale of knowledge management system development in small and medium enterprises in Vietnam 2.2 Factors affecting knowledge management systems in small and medium enterprises in Vietnam Scale Mean if Item Deleted Scale Corrected Cronbach's Variance if Item-Total Alpha if Item Item Deleted Correlation Deleted KMS (Cronbach's Alpha = 0.856) KMS1 14.6000 9.899 666 828 KMS2 14.6900 10.054 644 834 KMS3 14.6300 9.852 660 830 KMS4 14.6700 9.294 674 827 KMS5 14.5300 9.524 715 815 13 14 2.2.3 Analyzing Discovery factors 2.2.5 Model validation Table Verify KMO and Bartlett's for independent variables Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity Approx Chi-Square Df Sig 0.717 881.136 After evaluating the scales, we test whether the model that t is suitable by running on the Amos software The resulting non-standardized model is shown in Figure 3: 253 0.000 Coefficient of KMO = 0.717> 0.5: analyzing factors is appropriate for research data Bartlett's test result is 881,136 with significance level sig = 0.000