Knowledge Management Process Model

The International Journal

ENTREPRENEURSHIP AND SUSTAINABILITY ISSUES

ISSN 2345-0282 (online) http://jssidoi.org/jesi/

2018 Volume 5 Number 3 (March)

http://doi.org/10.9770/jesi.2018.5.3(10)

Publisher

542

KNOWLEDGE MANAGEMENT PROCESS MODEL

Jurgita Raudeliūnienė¹, Vida Davidavičienė², Artūras Jakubavičius3

1,2,3Vilnius Gediminas Technical University, Sauletekio 11, Vilnius LT-10223, Lithuania

E-mails: 1jurgita.raudeliuniene@vgtu.lt; 2vida.davidaviciene@vgtu.lt; 3arturas.jakubavicius@vgtu.lt

Received 14 September 2017; accepted 20 January 2018; published 30 March 2018

Abstract. In the context of globalization and transformations, the knowledge potential management is an effective tool for increasing the

effectiveness of organizations. The aim of the research is to study the procedural approach to the organization knowledge potential

management, to distinguish the main knowledge management processes and to present suggestions on how to improve the knowledge

management process model. The organization’s knowledge potential in this study is defined, as the organization’s resources and market

opportunities, generating its knowledge potential, complexity and effective management of which create prerequisites for meeting the

changing individual user needs, creating reciprocal value, uniqueness and leadership in the global marketplace. The conceptual knowledge

management process model has been improved, based on the research. The first step in the model is the choice of a knowledge strategy,

covering aspects of the formation and selection of strategic decision-making in knowledge potential management. The choice of an

appropriate knowledge strategy brings to its implementation through a process of knowledge management cycle, consisting of knowledge

acquisition, sharing, development, preservation and application of it. The knowledge management process model is completed with an

evaluation of the knowledge strategy implementation.

Keywords: knowledge management, organization knowledge potential, knowledge management processes, procedural approach

Reference to this paper should be made as follows: Raudeliūnienė, J.; Davidavičienė, V.; Jakubavičius, A. 2018. Knowledge management

process model, Entrepreneurship and Sustainability Issues 5(3): 542-554. https://doi.org/10.9770/jesi.2018.5.3(10)

JEL Classifications: M1, D8, D83.

1. Introduction

The society transformation into the knowledge society is changing user information and knowledge needs. The

organizations, seeking to effectively meet changing user needs, are no longer equipped with knowledge, abilities

and skills to manage traditional resources; there is also a need for effective organization knowledge potential

management. How to efficiently manage the organization’s knowledge potential in a dynamic and uncertain

environment in the presence of limited organization resources for the sake of uniqueness and leadership in the

market is a problem, investigated in the knowledge management discipline and realized through a process

The International Journal

ENTREPRENEURSHIP AND SUSTAINABILITY ISSUES

ISSN 2345-0282 (online) http://jssidoi.org/jesi/

2018 Volume 5 Number 3 (March)

http://doi.org/10.9770/jesi.2018.5.3(10)

543

knowledge management cycle that creates preconditions for creating mutual value for both users and members of

the organization.

The knowledge potential managing and evaluating aspects are relevant to improving the performance of

organizations, but the age of information and knowledge is characterized by a dynamic environment; uncertainty

is crucial to the uniqueness of organizations, where speed and quality become one of the key factors in effectively

meeting the changing individual user needs. Organizations need to adapt quickly and efficiently to changing

environmental conditions by effectively managing their knowledge potential. The poor decision-making and

performance of knowledge potential management has negative consequences. Therefore, one of the key research

objects in a dynamic and uncertain environment is how to integrate the organization knowledge potential.

The aim of the research is to investigate the procedural approach to the organization knowledge potential

management, to distinguish the main knowledge management processes and to submit suggestions on how to

improve the knowledge management process model. The knowledge management process model has been

improved, based on integrated knowledge management model, studied by Probst, S. Raub, and K. Romhardt

(2000) and consisting of eight processes: knowledge goals, identification, acquisition, development, distribution,

preservation, use and measurement. The purpose of the research was to obtain scientific literature analysis,

systematic analysis, comparative analysis, synthesis methods.

2. The organization knowledge potential management concept

Globalization, changes in the technological, social, cultural, economic, legal environment, transition from

information to knowledge society affects not only user needs, changes in organizational management models in a

dynamic and uncertain environment, but also changes in social sciences, when the analysis of the organizational

advantages and risk management issues becomes complex, as well as integrated evaluation approaches and

methods are needed to investigate it. For the organization’s uniqueness and leadership in the global marketplace, it

is important to know the specifics of managing and evaluating its knowledge potential (Alavi & Leidner, 2001;

Coyte, Ricceri, & Guthrie, 2012; Fink, 2004, 2011; Firlej & Żmija, 2017; Girish, Joseph, Roy, & Raju, 2015;

Huang, Quaddus, Rowe, & Lai, 2011; Hunitie, 2017; Lin, 2014; Rathi, Given, & Forcier, 2016; Saufi, Rusuli,

Tasmin, & Takala, 2012; Schwen, Kalman, Hara, & Kisling, 1998; Starnawska, 2014; Stewart, 1997; Wong,

2005; Šafránková & Šikýř, 2017; Grenčiková et al., 2017).

The knowledge potential management and evaluation problem is discussed in the knowledge management

discipline. Knowledge management is an emerging science discipline, integrating cognitive sciences, philosophy,

sociology, psychology, information science, communication, document management, information management,

information and communication technologies, management and economic theories, strategic management, change

management, human resource management, organization learning, knowledge engineering, artificial intelligence

and more (Fink, 2011; Kebede, 2010; Mciver & Lepisto, 2017; Schwen et al., 1998; Raudeliūnienė & Meidutė–

Kavaliauskienė 2016; Rajnoha et al., 2017). Scientists provide a variety of knowledge management definitions

(Alavi & Leidner, 1999; Cheng & Leong, 2017; Gao, Li, & Clarke, 2008; García–Fernández, 2015; Kianto,

Vanhala, & Heilmann, 2016; Magnier‐Watanabe & Senoo, 2010; Massingham, 2014; Wiig, 2007; Yahya & Goh,

2002).

Knowledge management is defined, as dynamic (García–Fernández, 2015) and a systematic process (Alavi &

Leidner, 1999; Wiig, 2007) or set of processes (Cheng & Leong, 2017) for controlling knowledge workers (Gao

et al., 2008), as knowledge management (Massingham, 2014) for gaining, organizing, communicating to

accumulate, create, store, share, distribute and realize vague knowledge inside and outside of it (Alavi & Leidner,

1999; García–Fernández, 2015; Kianto et al., 2016; Magnier‐Watanabe & Senoo, 2010), so that other employees

The International Journal

ENTREPRENEURSHIP AND SUSTAINABILITY ISSUES

ISSN 2345-0282 (online) http://jssidoi.org/jesi/

2018 Volume 5 Number 3 (March)

http://doi.org/10.9770/jesi.2018.5.3(10)

544

can use it and be more efficient and productive at work (Alavi & Leidner, 1999), more effective decision-making

and adaptation in the market (Yahya & Goh, 2002), more effective achievement of goals (Cheng & Leong, 2017;

Magnier‐Watanabe & Senoo, 2010).

Summarizing various scientific opinions, knowledge management is defined, as targeted and systematic

management of processes, methods and tools, making full use of the organization’s knowledge potential for

strategic goals, making effective decisions, implementing and creating its value (Raudeliūnienė, 2017).

The knowledge potential concept is evaluated by scientists from different levels: individual, employee,

organization, state (Bivainis & Morkvėnas, 2010, 2012; Fink, 2004, 2011; Fink & Roithmayr, 2005; Jang, Yang,

& Hong, 2014).

K. Fink et al. (2004, 2005, 2011) measure the knowledge potential by the knowledge prestige of the knowledge

worker, his abilities, experience, gained through the learning process. Knowledge potential is seen, as identifying,

distributing and implementing inaccurate knowledge for the strategic goals of the organization. The knowledge

worker’s knowledge potential includes user’s capital, network and communication capability, competitor

information, knowledge content and culture, learning and training processes, knowledge management systems,

organization knowledge structure and assessment of inexperienced knowledge of experts. The key to knowledge

management is to help a knowledge worker transform his knowledge potential into a visible organization. K. Fink

et al. (2004, 2005, 2011) measure knowledge potential by the mass of knowledge (human factors), position

(organizational and environmental factors) and speed (problem solving quality and speed) (Fink, 2004, 2011; Fink

& Roithmayr, 2005).

Through extensive research, related to the assessment of the organization’s knowledge potential, J. Bivainis, R.

Morkvėnas (2010, 2012) argue that not only the definition of the organization’s knowledge potential concept, but

also the complex approach and evaluation methods, related to the assessment of the organization’s knowledge

potential, are absent. J. Bivainis, R. Morkvėnas (2010, 2012) define the organization knowledge, as a whole,

using the concept of knowledge potential, which includes both explicit and fuzzy knowledge and additional

synergies, arising from the interaction of organizational elements (Bivainis & Morkvėnas, 2010, 2012).

J. Jang, J. Yang, and A. Hong (2014) value the knowledge potential through the mass of knowledge, the speed

and position and the interaction between them, which influences the knowledge creation process. The scientists

believe that the largest is the knowledge potential, the more knowledge is created (Jang et al., 2014).

The organization’s knowledge potential in this study is defined, as the organization’s resources and market

opportunities, generating its knowledge potential, complexity and effective management of which create

prerequisites for meeting the changing individual user needs for information and knowledge, creating reciprocal

value, uniqueness and leadership in the marketplace.

3. Process approach to managing organization knowledge potential

How to efficiently manage knowledge potential in a dynamic environment under conditions of uncertainty, which

management and evaluation problems are faced with risk reduction and the development and implementation of

high-quality solutions – will be explored by integrating various insights from the scientists, related to the

procedural approach to managing organization knowledge potential.

The scientists (Armistead, 1999; Becerra-Fernandez, Gonzalez, & Sabherwal, 2004; Bigliardi, Galati, & Petroni,

2014; Dalkir, 2011; Franco & Mariano, 2007; García–Fernández, 2015; Kianto et al., 2016; Lin & Lee, 2005;

The International Journal

ENTREPRENEURSHIP AND SUSTAINABILITY ISSUES

ISSN 2345-0282 (online) http://jssidoi.org/jesi/

2018 Volume 5 Number 3 (March)

http://doi.org/10.9770/jesi.2018.5.3(10)

Lytras, Pouloudi, & Poulymenakou, 2002; Nayır & Uzunçarılı, 2008; Nielsen, 2006; Pinho, Rego, & Pina e

Cunha, 2012; Probst, Raub, & Romhardt, 2000; Rollett, 2003; Raudeliūnienė et al., 2016; Staab, Studer, Schnurr,

& Sure, 2001; Sun, 2010; Supyuenyong, Islam, & Kulkarni, 2009; Wee & Chua, 2013; Yusr, Mokhtar, Othman,

& Sulaiman, 2017) distinguish different combinations of knowledge management processes in approaching the

knowledge management process (Table 1).

According to C. Armistead (1999), knowledge management processes are defined, as processes, knowledge is

created, captured and codified, shared and transmitted, consolidated and used, measured and evaluated in. The

scientist analyzed three key knowledge management processes: knowledge creation, knowledge transfer and

knowledge embedding (Armistead, 1999).

G. Probst, S. Raub, K. Romhardt (2000) developed an integrated knowledge management system that includes

such processes, as knowledge goals, identification, acquisition, development, distribution, preservation, use and

measurement. In identifying knowledge, it is assessed, which essential competencies are necessary to achieve the

organization goals. The knowledge identification process examines the knowledge gap to achieve the goals. In

acquiring knowledge, decisions are made on how to eliminate knowledge gaps and to acquire the necessary

competences. The knowledge development process involves the acquisition of new competences and new

knowledge development. The knowledge dissemination and sharing process is aimed at sharing knowledge and

ensuring access to knowledge-based activities. The essence of the knowledge process is the use of effective

organization knowledge to achieve its goals. It is important to select, accumulate and update knowledge in