Globalization and Knowledge Management
Name
Institution
Course
Tutor
Date
Globalization and Knowledge Management
Introduction
The global economy is rapidly evolving, and knowledge innovation (KI) and knowledge assets are increasingly becoming integral aspects of organizational management and advancement. Organizations face significant and novel challenges, for example, the urgent or constant need to reduce manufacturing and development costs, time-to-market, and the need to increasingly incorporate cutting-edge technology in different processes. “An increasing need for customer responsiveness and the globalization of business competition within the past few years have caused a rising number of companies to experience dramatic organizational transformations” (Hannah and Trommer, 2015, 23). Consequently, this business environment catalyzes the implementation of relatively new management technologies like knowledge management (KM) to help companies increase their competitive advantages. This paper examines the present state of research and practice on knowledge-based processes, focusing on the need to incorporate the concepts of distance learning and virtual teams in the running of contemporary organizations.
The Role of Virtual Teams in Today’s Globalized Business Environment
The increasing interest to acquire talent on demand has encouraged companies to outsource workers that would benefit them with their flexible location and schedule and complementary skills. This has led to the rise of the phenomenon of virtual teams (VTs). There are many definitions for VTs; for example, “it is a group of individuals who work remotely with a common purpose, across organizational boundaries, time, and space, and using ICT to collaborate and communicate” (Volberda et al., 2013, 2). The dispersion of personnel witnessed in VTs has caused companies to face unprecedented challenges in managing teams made of people based in different places and from diverse cultures. Volberda et al. (2013) state that “virtual teams experience more diversity compared to the physical ones” (4). VTs have significantly increased globally in recent years, and this trend will continue because of the need for business globalization, advances in ICT, and a high level of innovation.
Virtual teams are helpful for both employers and employees. For workers, the benefits of such arrangements lie in the flexibility and convenience of working from an individual’s location of choice (like at home), which improves employee satisfaction and supports the work–life balance. Employers gain from the ability to access skilled workers worldwide thanks to advances in ICT. According to Mukherjee et al. (2016), “The intellectual capacity of a diverse VT is in its ability to produce shared knowledge and integrate expertise” (226).
Team diversity can both create opportunities and pose a difficulty. For example, one of the main challenges facing global VTs is forming cohesion in the team. Also, many empirical studies on the impact of team diversity on team performance established that it could deliver higher performance and produce added value than homogeneous teams. One reason given back this claim is that diversity brings “richness” in the field of knowledge. It is essential to mention that VTs must be appropriately managed in order to become high-performance teams.
Presently, an organization’s competitiveness is mainly gotten from its intangible assets instead of its tangible ones, for example, knowledge sharing. The most strategically significant intangible asset within organizations is knowledge. If managed correctly, knowledge can offer an organization a competitive advantage over it, competitors. However, the absence of proper knowledge sharing adversely affects VTs. Organizations that want to thrive in today’s business environment must acknowledge that the rising dependence on outsourcing and the growing global economy makes knowledge sharing an extremely significant factor across time zones and international boundaries.
Knowledge creation is described as the process of learning that transforms team members’ knowledge representations or mental models to create new knowledge (Mukherjee et al., 2016). Contemporary research has highlighted the impact of using IT on team knowledge creation. Some studies have scrutinized how team dispersion enables creation effectiveness through comparing face-to-face teams and dispersed teams. Findings suggest that IT or computer-facilitated learning can be as just effective as face-to-face learning. This means that VTs can offer similar output as physical teams. This is highly beneficial as, unlike physical teams, VTs can tap into individuals’ skills, knowledge, and expertise located in multiple locations.
Requirements of Members of VTs
Since virtual teamwork essentially means a type of group work, it would be fitting to assume that similar challenges manifest as those experienced in traditional group work settings in virtual cooperation. Therefore, job specifications should not be different from conventional teamwork. However, Wei and Guo (2014) state that “empirical studies, especially in the fields of psychology, organizational theory, and management, call attention to some distinct characteristics in the working style or profile of works in VTs” (832). These specific characteristics can be separated into three areas of competencies:
Social Competence
The phrase “Social Competence” refers to the sum of the attitudes and skills of a person towards other team members, which are significant influences on the success of virtual teamwork (Wei and Guo, 2014). Individual responsibility is an important aspect of social competence, especially when operating in the virtual work setting. In a virtual setting, there is no institutionally fixed or anchored work organization. Therefore, it is incumbent upon the virtual team member to develop their own configuration or setup of the workspace. Furthermore, there is no social control or oversight based on interaction with coworkers or an obligation to work in a specified location. Therefore, it is critical for the individual working in a virtual team to learn and apply clear project structuring and self-organization skills, which are usually associated with discipline, high intrinsic motivation, and a spirit of achievement orientation.
Since there is a high likelihood that working in a virtual team will involve interacting with people from diverse cultures, social competence involves skills in intercultural collaboration. Communication, culture, and language are closely associated in a factual context. For example, the most noticeable aspect of culture is the medium of language. However, there are less obvious or even “invisible” factors responsible for forming, conveying, and processing information. Therefore, intellectual collaboration within virtual teams starts with agreeing on a common language medium. People working in such teams should have high emotional intelligence in order to deal with the cultural difference that will inevitably arise.
Media Competence
To function effectively within VTs, a person must have technological competency and a willingness and ability to learn new skills as technology rapidly advances. Communication is clearly a powerful success dynamic of virtual teamwork (Wei and Guo, 2014). For the effective use of contemporary media, each virtual team member must possess a high level of experience and proficiency and have a natural affinity for communication technology. According to Wei and Guo (2014), “Communication channels can be differentiated into asynchronous and synchronous technology. Live chat and video conference are the most recognized tools of synchronous communication, whereas the use of web-based forums, fax, or e-mails are examples of asynchronous forms of communication.
For communication to be efficient, there must be an agreement on standards regarding team members’ availability and the projected timespan for providing feedback when using the different forms of media. The set communication standards gain more significance when members of a team operate in different time zones because the time frame for communication is limited, and the flow of information must therefore be managed using media correctly. Therefore, it is very important that each team member has the competency to handle software systems that facilitate work (like document management) and grasp how sometimes complex technologies may be used to facilitate communication in the digital space.
Methodological Competence
The difficulty of problem-solving is revealed in the heterogeneity of the team arrangement; professionals from diverse disciplines usually cooperate within a virtual workroom (Wei and Guo, 2014). To resolve a challenge or to handle responsibilities within the virtual team, methodological competence in well-organized management of knowledge has to exist. If this does not happen, the team member’s knowledge potential cannot be optimally explored. The methodology means the three stages of knowledge creation: they are, the identification phase, the application phase, and the transfer phase.
Identification Phase: At the start is identifying different areas of knowledge to make clear the field each professional comes from and which capabilities each could contribute to the task (Wei and Guo, 2014). This socialization process within the team encompasses, however, not only the observable skill documented through occupation, education, and other external attributes but also an identification of knowledge that has to be more comprehensive.
Wei and Guo (2014) state that knowledge is divided into four groups: Know-How, Know-Who, Know-What, and Know-Why. Factual knowledge falls under Know-What and is archived as data within databases. Know-How signifies the way how the skills for application are understood, or, instead, the implementation of an endeavor. This aspect of knowledge is closely linked to practice, and in this respect, it has an instrumental character, is context-specific, and is based on experience” (Wei and Guo, 2014, 835). The Know-Who can be understood as a knowledge network; this refers to the knowledge regarding other cooperating partners or professionals. Here social skills play an important part in networking in terms of cooperation and communication with different groups of people. Know-Why is the universal and theoretical knowledge of basic structures, models, principles, human mind models, society, and nature.
Application Phase: In this phase, the concept of problem-solving is developed (Wei and Guo, 2014). Owing to the collaboration in the team, the connections between the elements of knowledge continue to be formed so that the team’s personalized knowledge can be transmitted through these links. Additionally, the connections that were not formerly linked to the human interface now facilitate the growth of the team’s knowledge base, therefore producing new knowledge. Wei and Guo (2014) particularly highlight the significance of placing externalized knowledge creation at the forefront of knowledge creation, which previously was only made from implied knowledge elements. This procedure of knowledge change from implicit into explicit knowledge can be supported by the application of models, metaphors, and analogies as a reinforced communication form (Wei and Guo, 2014). Codification plays a significant role in converting implicit knowledge to explicit knowledge. Only the team members who know the code can access the knowledge base. Consequently, it is important for the communication amongst the team members to follow shared codes to simplify complex terminology into a general comprehensible level.
Transfer Phase: In this stage, the solution concept is conveyed from the team level to the corporate level (Wei and Guo, 2014). The observable part of this transformation procedure exists in presenting the solution to the top management as well as the exchange of clear knowledge into the form of products, services, advertising efforts, and patents. In addition, it is vital that this transmission procedure of information comprises the implicit and thus far uncodified knowledge that team members have gained because of experience in achieving complex goals. Perhaps this solution model can also be transferred towards other problem areas. The essential transformation of implicit knowledge to explicit knowledge can be conveyed in the form of handbooks, experience reports, and a team reflection by means of “Lessons to be Learned” (Wei and Guo, 2014, 840).
Conclusion
In recent years, knowledge management has received substantial attention due to its significance in offering organizations a competitive edge. In particular, the important role of distance learning and virtual teams play within contemporary organizations has become an area of significant interest due to the benefits they provide businesses. VTs operating on a global scale experience some complexities, especially concerning knowledge sharing. This is particularly true for organizations that want to share knowledge efficiently amongst their team members from diverse time zones and cultures. Today, organizations can increasingly integrate both external and internal knowledge capacity through knowledge sharing. This has the potential to provide them with a more profitable position within the market. Though knowledge sharing leads to better performance in organizations, just a few companies have successfully implemented knowledge sharing process in their operations for various reasons. Knowledge sharing can be ineffective for several reasons, for example, a lack of personal motivation and technological resources, inadequate organizational training and support, and individual skills differences. Due to the increase in the global division of labor as well as the globalization of entrepreneurial activities, companies hoping to compete at a worldwide level have no choice but to adopt the virtual team approach to doing business.
References
Hannah, E., S., & Trommer, S. (2015). Expert knowledge in Global Trade. Routledge, London.
Mukherjee, S., Uzzi, B., Jones, B., & Stringer, M. (2016). A new method for identifying
recombinations of existing knowledge associated with high-impact innovation. Journal of Product Innovation Management, 33(2), 224- 236.
Volberda, H. W., Van Den Bosch, F. A. J., & Heij, C. V. (2013). Management innovation:
Management as fertile ground for innovation. European Management Review, 10(1), 1-15.
Wei, Z., Yi, Y., & Guo, H. (2014). Organizational learning ambidexterity, strategic flexibility,
and new product development. Journal of Product Innovation Management, 31(4), 832-847.
Globalization and Knowledge Management
Name
Institution
Course
Tutor
Date
Globalization and Knowledge Management
Introduction
The global economy is rapidly evolving, and knowledge innovation (KI) and knowledge assets are increasingly becoming integral aspects of organizational management and advancement. Organizations face significant and novel challenges, for example, the urgent or constant need to reduce manufacturing and development costs, time-to-market, and the need to increasingly incorporate cutting-edge technology in different processes. “An increasing need for customer responsiveness and the globalization of business competition within the past few years have caused a rising number of companies to experience dramatic organizational transformations” (Hannah and Trommer, 2015, 23). Consequently, this business environment catalyzes the implementation of relatively new management technologies like knowledge management (KM) to help companies increase their competitive advantages. This paper examines the present state of research and practice on knowledge-based processes, focusing on the need to incorporate the concepts of distance learning and virtual teams in the running of contemporary organizations.
The Role of Virtual Teams in Today’s Globalized Business Environment
The increasing interest to acquire talent on demand has encouraged companies to outsource workers that would benefit them with their flexible location and schedule and complementary skills. This has led to the rise of the phenomenon of virtual teams (VTs). There are many definitions for VTs; for example, “it is a group of individuals who work remotely with a common purpose, across organizational boundaries, time, and space, and using ICT to collaborate and communicate” (Volberda et al., 2013, 2). The dispersion of personnel witnessed in VTs has caused companies to face unprecedented challenges in managing teams made of people based in different places and from diverse cultures. Volberda et al. (2013) state that “virtual teams experience more diversity compared to the physical ones” (4). VTs have significantly increased globally in recent years, and this trend will continue because of the need for business globalization, advances in ICT, and a high level of innovation.
Virtual teams are helpful for both employers and employees. For workers, the benefits of such arrangements lie in the flexibility and convenience of working from an individual’s location of choice (like at home), which improves employee satisfaction and supports the work–life balance. Employers gain from the ability to access skilled workers worldwide thanks to advances in ICT. According to Mukherjee et al. (2016), “The intellectual capacity of a diverse VT is in its ability to produce shared knowledge and integrate expertise” (226).
Team diversity can both create opportunities and pose a difficulty. For example, one of the main challenges facing global VTs is forming cohesion in the team. Also, many empirical studies on the impact of team diversity on team performance established that it could deliver higher performance and produce added value than homogeneous teams. One reason given back this claim is that diversity brings “richness” in the field of knowledge. It is essential to mention that VTs must be appropriately managed in order to become high-performance teams.
Presently, an organization’s competitiveness is mainly gotten from its intangible assets instead of its tangible ones, for example, knowledge sharing. The most strategically significant intangible asset within organizations is knowledge. If managed correctly, knowledge can offer an organization a competitive advantage over it, competitors. However, the absence of proper knowledge sharing adversely affects VTs. Organizations that want to thrive in today’s business environment must acknowledge that the rising dependence on outsourcing and the growing global economy makes knowledge sharing an extremely significant factor across time zones and international boundaries.
Knowledge creation is described as the process of learning that transforms team members’ knowledge representations or mental models to create new knowledge (Mukherjee et al., 2016). Contemporary research has highlighted the impact of using IT on team knowledge creation. Some studies have scrutinized how team dispersion enables creation effectiveness through comparing face-to-face teams and dispersed teams. Findings suggest that IT or computer-facilitated learning can be as just effective as face-to-face learning. This means that VTs can offer similar output as physical teams. This is highly beneficial as, unlike physical teams, VTs can tap into individuals’ skills, knowledge, and expertise located in multiple locations.
Requirements of Members of VTs
Since virtual teamwork essentially means a type of group work, it would be fitting to assume that similar challenges manifest as those experienced in traditional group work settings in virtual cooperation. Therefore, job specifications should not be different from conventional teamwork. However, Wei and Guo (2014) state that “empirical studies, especially in the fields of psychology, organizational theory, and management, call attention to some distinct characteristics in the working style or profile of works in VTs” (832). These specific characteristics can be separated into three areas of competencies:
Social Competence
The phrase “Social Competence” refers to the sum of the attitudes and skills of a person towards other team members, which are significant influences on the success of virtual teamwork (Wei and Guo, 2014). Individual responsibility is an important aspect of social competence, especially when operating in the virtual work setting. In a virtual setting, there is no institutionally fixed or anchored work organization. Therefore, it is incumbent upon the virtual team member to develop their own configuration or setup of the workspace. Furthermore, there is no social control or oversight based on interaction with coworkers or an obligation to work in a specified location. Therefore, it is critical for the individual working in a virtual team to learn and apply clear project structuring and self-organization skills, which are usually associated with discipline, high intrinsic motivation, and a spirit of achievement orientation.
Since there is a high likelihood that working in a virtual team will involve interacting with people from diverse cultures, social competence involves skills in intercultural collaboration. Communication, culture, and language are closely associated in a factual context. For example, the most noticeable aspect of culture is the medium of language. However, there are less obvious or even “invisible” factors responsible for forming, conveying, and processing information. Therefore, intellectual collaboration within virtual teams starts with agreeing on a common language medium. People working in such teams should have high emotional intelligence in order to deal with the cultural difference that will inevitably arise.
Media Competence
To function effectively within VTs, a person must have technological competency and a willingness and ability to learn new skills as technology rapidly advances. Communication is clearly a powerful success dynamic of virtual teamwork (Wei and Guo, 2014). For the effective use of contemporary media, each virtual team member must possess a high level of experience and proficiency and have a natural affinity for communication technology. According to Wei and Guo (2014), “Communication channels can be differentiated into asynchronous and synchronous technology. Live chat and video conference are the most recognized tools of synchronous communication, whereas the use of web-based forums, fax, or e-mails are examples of asynchronous forms of communication.
For communication to be efficient, there must be an agreement on standards regarding team members’ availability and the projected timespan for providing feedback when using the different forms of media. The set communication standards gain more significance when members of a team operate in different time zones because the time frame for communication is limited, and the flow of information must therefore be managed using media correctly. Therefore, it is very important that each team member has the competency to handle software systems that facilitate work (like document management) and grasp how sometimes complex technologies may be used to facilitate communication in the digital space.
Methodological Competence
The difficulty of problem-solving is revealed in the heterogeneity of the team arrangement; professionals from diverse disciplines usually cooperate within a virtual workroom (Wei and Guo, 2014). To resolve a challenge or to handle responsibilities within the virtual team, methodological competence in well-organized management of knowledge has to exist. If this does not happen, the team member’s knowledge potential cannot be optimally explored. The methodology means the three stages of knowledge creation: they are, the identification phase, the application phase, and the transfer phase.
Identification Phase: At the start is identifying different areas of knowledge to make clear the field each professional comes from and which capabilities each could contribute to the task (Wei and Guo, 2014). This socialization process within the team encompasses, however, not only the observable skill documented through occupation, education, and other external attributes but also an identification of knowledge that has to be more comprehensive.
Wei and Guo (2014) state that knowledge is divided into four groups: Know-How, Know-Who, Know-What, and Know-Why. Factual knowledge falls under Know-What and is archived as data within databases. Know-How signifies the way how the skills for application are understood, or, instead, the implementation of an endeavor. This aspect of knowledge is closely linked to practice, and in this respect, it has an instrumental character, is context-specific, and is based on experience” (Wei and Guo, 2014, 835). The Know-Who can be understood as a knowledge network; this refers to the knowledge regarding other cooperating partners or professionals. Here social skills play an important part in networking in terms of cooperation and communication with different groups of people. Know-Why is the universal and theoretical knowledge of basic structures, models, principles, human mind models, society, and nature.
Application Phase: In this phase, the concept of problem-solving is developed (Wei and Guo, 2014). Owing to the collaboration in the team, the connections between the elements of knowledge continue to be formed so that the team’s personalized knowledge can be transmitted through these links. Additionally, the connections that were not formerly linked to the human interface now facilitate the growth of the team’s knowledge base, therefore producing new knowledge. Wei and Guo (2014) particularly highlight the significance of placing externalized knowledge creation at the forefront of knowledge creation, which previously was only made from implied knowledge elements. This procedure of knowledge change from implicit into explicit knowledge can be supported by the application of models, metaphors, and analogies as a reinforced communication form (Wei and Guo, 2014). Codification plays a significant role in converting implicit knowledge to explicit knowledge. Only the team members who know the code can access the knowledge base. Consequently, it is important for the communication amongst the team members to follow shared codes to simplify complex terminology into a general comprehensible level.
Transfer Phase: In this stage, the solution concept is conveyed from the team level to the corporate level (Wei and Guo, 2014). The observable part of this transformation procedure exists in presenting the solution to the top management as well as the exchange of clear knowledge into the form of products, services, advertising efforts, and patents. In addition, it is vital that this transmission procedure of information comprises the implicit and thus far uncodified knowledge that team members have gained because of experience in achieving complex goals. Perhaps this solution model can also be transferred towards other problem areas. The essential transformation of implicit knowledge to explicit knowledge can be conveyed in the form of handbooks, experience reports, and a team reflection by means of “Lessons to be Learned” (Wei and Guo, 2014, 840).
Conclusion
In recent years, knowledge management has received substantial attention due to its significance in offering organizations a competitive edge. In particular, the important role of distance learning and virtual teams play within contemporary organizations has become an area of significant interest due to the benefits they provide businesses. VTs operating on a global scale experience some complexities, especially concerning knowledge sharing. This is particularly true for organizations that want to share knowledge efficiently amongst their team members from diverse time zones and cultures. Today, organizations can increasingly integrate both external and internal knowledge capacity through knowledge sharing. This has the potential to provide them with a more profitable position within the market. Though knowledge sharing leads to better performance in organizations, just a few companies have successfully implemented knowledge sharing process in their operations for various reasons. Knowledge sharing can be ineffective for several reasons, for example, a lack of personal motivation and technological resources, inadequate organizational training and support, and individual skills differences. Due to the increase in the global division of labor as well as the globalization of entrepreneurial activities, companies hoping to compete at a worldwide level have no choice but to adopt the virtual team approach to doing business.
References
Hannah, E., S., & Trommer, S. (2015). Expert knowledge in Global Trade. Routledge, London.
Mukherjee, S., Uzzi, B., Jones, B., & Stringer, M. (2016). A new method for identifying
recombinations of existing knowledge associated with high-impact innovation. Journal of Product Innovation Management, 33(2), 224- 236.
Volberda, H. W., Van Den Bosch, F. A. J., & Heij, C. V. (2013). Management innovation:
Management as fertile ground for innovation. European Management Review, 10(1), 1-15.
Wei, Z., Yi, Y., & Guo, H. (2014). Organizational learning ambidexterity, strategic flexibility,
and new product development. Journal of Product Innovation Management, 31(4), 832-847.
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