Research Article: 2019 Vol: 22 Issue: 3
Teddy Chandra, Pelita Indonesia School of Business
Citation Information: Chandra, T. (2019). Mapping knowledge management system within literatures of creative industry. Journal of Management Information and Decision Sciences, 22(3), 213-222.
Knowledge Management System, intellectual property, creative industry, metaanalysis.
Creative industry can be the solution to the challenges that faced by many countries in the world today in facing the impact of industrial revolution 4.0. In addition, the existence of creative industries is also expected to be a solution for the degradation of natural resources which capable to absorbing labor because it is based on renewable resources.
The Government of Indonesia has demonstrated its commitment to optimizing and accelerating the development of creative industries. The big step taken by establishing Badan Ekonomi Kreatif (Bekraf, 2015) which is a non-ministry institution and directly responsible to the President.
In PP (Peraturan Presiden) No. 72 tahun 2015 on Amendment to Peraturan Presiden No. 6 tahun 2015 concerning Bekraf, 16 creative industry sub-sectors have been defined, including: applications and games; architecture; interior design; visual communication design; product design; fashion; movies, animations and videos; photography; crafts; culinary; music; publishing; advertising; performing Arts; art; television and radio (BEKN, 2016).
The creative industry is an industry derived from individual creativity, skills and talents that potentially create wealth and employment through the exploitation and generation of individual intellectual property and creativity (UK DCMS Task Force, 1998).
According to the Badan Ekonomi Kreatif Indonesia (Bekraf, 2015), creative industry is defined as the creation of value-added ideas based on the creativity of human resources (creative people) and science-based, including cultural heritage and technological.
As a renewable resource-based industry, the presence of creative industries in Indonesia with the fourth largest population after China, India and the United States has the potential to be developed primarily because it is supported by the richness and beauty of the unique culture, history, nature, skills and talents it possesses. High population can be a potential for Indonesia to develop creative industries.
Literature states that knowledge is an important asset of the organization in achieving organizational performance and sustainable competitive advantage for organizations which give priority to innovation. Knowledge is an invisible asset, not easy to imitate and not easily understood (personal). It is also adopted in the creative industry that prioritizes tacit knowledge.
In a renewable resource-based organization that is the creative industry, idea is a must-have knowledge to be able to create added value to the product. Ideas derive from the knowledge which gained from and at any stage in the creation of tacit and explicit knowledge (Nonaka, 1995). A research shows that creativity is survival and competitive competence that can greatly improve company performance (Shin et al., 2012).
Knowledge will bring the creative industry on the ability to have different competitive advantages. For example, coffee flour produced from roasted coffee beans, bananas processed into nuggets, donuts from noodles, batik which now become a fashion either formal or leisure activities, Mora FM radio station that concentrates on the knowledge of law community and the development of agricultural sector and small business community).
The creative industry's concentration on the niche makes it distinctive and unique with high competition intensity due to the creative process always dynamic, both slow and fast. This makes the knowledge of ideas and creativity in the creative industry is seen as a dynamic activity.
Creative industry as an organization, its activities should be viewed as an effort to achieve organizational goals. In its activities, the creative industry collaborates with a lot of knowledge possessed by the organization because it involves many of the functions involved. In this case the function can be classified based on creative classes grouped by Florida (2002), namely:
1. Bohemian (artistic) displays an artistic form of creativity (eg artist, designer, author).
2. Creative core functions (technical) mostly include technical creativity (eg researchers, engineers and doctors)
3. Creative professional functions (managerial) involves creativity in general and managerial terms (eg managers, financiers and lawyers). (Lorenzen, 2011)
Knowledge in the organization obtained through the process of knowledge management (KM) is the stage of creation, retrieval, transfer and application of knowledge. Research shows how important KM is to apply and in general the literature focuses on applying KM in manufacturing and service industries.
While in different contexts the creative industry as an industry with a renewable resource base that commercializes ideas and ideas, the available literature is still very limited. It is necessary to establish the same understanding as to what the implementation of KM processes in the context of creative industry organizations can be applied in facing the pressures and dynamics of the ongoing competition.
This paper begins with the introducing background of the importance of KM in the context of the creative industry, the next section will show the KM literature, taxonomy of knowledge management process and knowledge management system (KMS). Then next how is the study of KMS in the organizational context of creative industry and ends with conclusion of description of KMS implementation in the creative industry.
Knowledge is a strategic asset for all types and sizes of organizations. Includes knowledge of competitors (competitors), competitive intensity, information intensity, market uncertainty and customer and supplier relationships, use of innovative technology and knowledge of organizational resource capacity.
An innovation-oriented organization requires knowledge to create unique and value-added ideas. In contrast to traditional understanding of the asset-oriented in the form of labor, buildings, land and financial capital (Nonaka et al., 2000) (Quast, 2012) (Wu, 2006).
Knowledge in western philosophy states that the individual as the main agent possesses and processes knowledge. This philosophy is recognized by the Japanese who assert the knowledge begins with the individual (Nonaka, 1995). The literature states that the creation of corporate knowledge is obtained through the conversion of implicit knowledge to be explicit. Furthermore, explicit conversion to implicit is to arrive at the process of how knowledge can be changed or updated. And so on this process is called the Nonaka knowledge spiral for the purpose of New Product Development (NPD). (Nonaka, 2007)
There is an emphasis on different approaches of knowledge that is the emphasis of implicit knowledge (Japanese culture) and the emphasis of explicit knowledge (Western culture). Knowledge given through internships, observations and guidance of an expert is called implicit. Implicit knowledge is divided into technical implicit knowledge, that is, in accordance with the knowledge of know-how and implicit cognitive knowledge of the wealth of beliefs, presuppositions and experiences shared typically within cultural groups (nation, enterprise, family, etc.). Explicit knowledge refers to printed books, manuals, procedures and guidelines that express information clearly through language, pictures, sounds, or other means of communication (Polanyi, 1958) (Polanyi, 1967).
Knowledge is intangible, infinite, context-specific, relational, dynamic and humanistic. In the organization it is often embedded in organizational processes and routines. In addition, knowledge is difficult to understand, transfer, imitate and transact, so that the implementation of the knowledge management process is very important for the organization by accepting, transferring, applying and protecting such knowledge and thus impacting the organization's performance (Nonaka et al., 2000).
Knowledge management (KM) is generally defined as the acquisition, storage, retrieval, implementation, generation and review of an organization's knowledge assets in a controlled manner (Pathirage et al., 2008).
Knowledge management is the key to achieving and sustaining competitive advantage when changes occur quickly in the marketplace. The knowledge management process capabilities of acquisition, conversion, application and knowledge protection based on the findings research was significantly support the company's competitive advantage (Gold et al., 2001).
Dynamic changes make the company not only compete on its ability to exploit but also on the company's capability to update and develop existing resources and capabilities (Winter, 2003) (Nielsen, 2006). Dynamic capability refers to a company's ability to integrate, build and reconfigure internal and external competencies in an effort to cope with rapidly changing environments (Teece et al., 1997).
In the creative industry, knowledge of creative workers and organizational knowledge are synergized. The knowledge of creative workers is an organizational asset because in the creative industries commercialized products are ideas, ideas, talents and skills. However, organizational knowledge activities in the creative industries are also an important part of bringing the industry to the goal (vision) of maximization profit and staying defend in the dynamics of change and high competition.
The combination of individual unique knowledge and organizational knowledge is what makes the creative industry different so that the organization's knowledge-building approach Nonaka & Takeuchi (1995) cannot cover the entire knowledge activity in creative industry organizations. This then becomes interesting to investigate.
The creative industry collaborates on two different sources of knowledge aligned to a common vision, the implicit knowledge of creative workers who prioritize tacit knowledge (externalization and internalization) and organizational knowledge of creative industries that emphasize explicit knowledge (socialization and combination). Where both have a relationship of mutuality, creative knowledge will have an impact on the creative industry and the knowledge of creative industry organizations will have an impact on the knowledge of creative workers. This will affect the implementation of knowledge management system in the creative industry.
Knowledge Management Process dan Knowledge Management System
Organizations are organisms rather than machines. When it comes to organizing the term organism I think it's still rigid, I understand that organization can be understood not only as an organism but also “a life” (internal and external organizational interaction) even though my flow of thought is in line with Takeuchi (The Concept of ba).
The organization's KM activities cannot be separated from the source of originating knowledge. Knowledge comes from people. Knowledge is converted from (Tacit to the explicit and vice versa through the process of socialization, externalization, combination, internalization (SECI). KM is a dynamic process that occurs in organizational members, interaction between them and the organization itself evolves through the creation of knowledge continuously (Nonaka et al., 2000).
The term knowledge management system in organizations is often associated with information systems and the use of technology as knowledge tools, not as supporting tools in creating knowledge, knowledge sharing, application of standardized knowledge, in accordance with procedures and provisions derived from the KM process. However, because the knowledge process is spiral, tacit and explicit knowledge is a unity that cannot be separated in the KM process.
Hamidizadeh (2015) in his research to find out the relationship between knowledge management infrastructure, the capability of the knowledge management process, creative learning (Organization Learning-OL) and organizational performance. The results obtained are that the knowledge management process mediates between OL creative and KM infrastructure. The capacity of knowledge management process has an important role in creative OL. OL is creative in organizational performance. The object of research is the electronic energy company, renewable energy, nano and information and communication.
In contrast to the creative industry knowledge management system is a way that is used by industry to manage wealth owned, namely creativity, innovation, intellectual capital, social capital to be empowered as an industry to produce intellectual property that has a value of sustainability.
The term knowledge management was reviewed in 1994 by Ikujiro, but the knowledge management system began to emerge in 1998 showing how organizational knowledge gained through the spiral process can be applied using information systems technology. So that information system technology is used to create, transfer and application of knowledge.
In the context of organizations where humans are not seen as strategic assets, the use of technology is indeed a solution in the framework of efficiency. However, this differs in context from organizations that use human knowledge as commercial assets in this case the creative industry, although technology is also used as supporting tools in the KM process. So the terminology of knowledge management process without losing its important role in the organization can be metamorphosed into KMS. By interpreting that the system is not limited to network devices in terms of information systems, but as a process or way of knowledge accepted, transfer, maintained and applied in the organization.
Implementation of Knowledge Management System in the literature
In a study entitled "Knowledge Management as Dynamic Capabilities; Does It Work in Emerging Less Developed Countries", (Nguyen & Neck, 2009) testing the knowledge management process through the dynamic capability approach. It is the company's ability to cope with rapidly changing environments by integrating, building and reconfiguring internal and external competencies (Teece et al., 1997), then testing the influence of the KM process on organizational competitive advantage. Knowledge management process is the construct of knowledge acquisition dimension, knowledge conversion, knowledge application, knowledge protection (Gold et al., 2001).
Research has been conducted in Vietnam using questionnaire instruments distributed to 600 senior managers with 148 questionnaires of respondents eligible to be tested using AMOS software. The results show that the hypothesis is accepted, state that:
1. The process of knowledge management process is the construct dimension of knowledge acquisition, knowledge conversion, knowledge application, knowledge protection.
2. Knowledge management process affects the competitive advantage of the organization.
Furthermore, in a study entitled Understanding Knowledge Management System Antecedents of Performance Impact: Extending the Task-Technology Fit Model with Intention to Share Knowledge Construct (Ghada & El, 2015), it is affirmed that KMS is an information system to apply and use knowledge management principles throughout the process to create, transferring and applying knowledge within the organization.
In this study, explored the determinants of KMS performance impact by examining the effect of intention to share knowledge, task characteristic, work competence, perceived KMS characteristics and utilization, it has great effect on KMS performance impact. The survey was conducted with 95 administrative and technical staff from different managerial levels, for different KMS in two organizations. The study results show that knowledge sharing intentions have a huge impact on Task-technology Fit (TTF) performance. Then that knowledge management system is not significantly influenced by TTF, meaning that TTF does not affect KMS.
Then there is the literature that highlights the level of diffusion and intensity of the use of knowledge management systems (KMS) among small and medium enterprises (SMEs) and to propose a taxonomy that synthesizes strategies for the use of KMS in SMEs. The research indicates that there is a reciprocal relationship between knowledge management tools and knowledge management practices (mutually supportive of each other). Tools compatible with practices and practice of knowledge management are not focused on the implementation of knowledge management processes (Cerchione & Emilio, 2017).
Gaziulusoy et al. (2013), García-Alvarez (2015) (in Lopes et al. 2016) analyzed the interactions between organizational Sustainability, knowledge management and open innovation and their impact on the manufacturing industry's organizational culture. Seeing the development of discussion about sustainability, it appears that organizations have a high concern in achieving these long-term goals.
Knowledge is very important and invaluable asset in a highly competitive environment because knowledge is the only factor that can generate change and innovation in the creative industry. Recently, much research has been carried out regarding knowledge management in the business world (Metaxiotis et al., 2005) and this conclusion can be drawn that industrial economics has turned into a knowledge-based economy and knowledge is considered an important and valuable competitive asset in organizations (Rivera-Vazquez et al., 2009). Therefore, Mills & Smith (2011) argue that the implementation of knowledge management can be seen in various organizations.
Knowledge management system in organizations aim to effectively use existing knowledge to create new knowledge and to take action, achieve sustainable competitive advantage from knowledge-based assets (Alavi & Leidner, 2001). In the context of the creative industry the use of the Knowledge Management System contributes to business continuity because industrial managers must understand existing and latest information and knowledge obtained from the industry's internal and external environment to continue to innovate continuously, which is the core business that makes creative industrial products worth.
Other studies suggest that KMS effectively supports and enhances the organization's KM activities. The survey included 291 attempts in Taiwan using Confirmatory Factor Analysis (CFA) and logistic regression techniques to test hypothesized relationships (Wang & Yao-Ching, 2016). It is stated that the decision to implement KMS is not only based on technological factors. Organizational factors and the environmental context also have a significant influence. In an organizational and environmental context, top management support, organizational culture and competitive pressures are significant determinants of corporate KMS implementation. Organizational factors of adequate resources and technological competence have no significant direct effect on business decisions to implement KMS. Competitive pressure is the most influential factor on the company's decision to implement KMS.
Furthermore, the research entitled
"Analysis of Affecting Factors Technology Acceptance Model in the Application of Knowledge Management for Small Medium Enterprises in Industry Creative"
Involving 105 respondents of small and medium enterprises in the creative economy. The research used explanatory research method to analyze the factors influencing the technology acceptance model (TAM) in the application of Knowledge Management (Siregar, 2017).
In his research, the creative industry is defined as an industry that focuses on the creation of goods and services by relying on expertise, talent and creativity as intellectual property. The results show that Technology Acceptance model of KM is influenced by Perceived Ease of Use (PEOU) factor which will benefit the usage of web KM (PU) so that user will be willing to use (VU) WU).
Then, in a study entitled Communities of Practice: Linking Knowledge Management and Strategy in Creative Firms (Bashouri, 2014), emphasized the importance of choosing a strategy that fits the corporate context because it is in line with Greiner et al. (2007) it is an integral part of the success of KM in the organization.
Adopting the Communiy of Practice (CoP) concept of Lave & Wanger (1991), the role of the social community is emphasized that through social interaction and CoP collaboration, learning can be maximized and innovation can be facilitated (Greiner et al., 2007). So in this case knowledge is not as an object but intangible that is embedded in the community.
CoP plays a role in the development of individual skills through the enhancement of knowledge sharing and the development of social relationships. The research was conducted at an architectural firm established in 2001 in New Zealand. The study used semi structured interview method as many as 32 people, including directors, architects, interior designers, clerks and administrative staff. Respondents view Communication Information Technology (ICT), lessons, best practice, storytelling, dialogue and conversation as an appropriate tool for sharing knowledge within the CoP. Response also considers knowledge as a strategic asset that can make the difference between other competitor's architectural firms. CoP is at the heart of KM, so the community is directed to focus on the KM strategy that is in line with the company's business strategy that is based on the product portfolio and artistic competence.
Process-based KMS methodologies developed during this study encourage the creation of learning organizations through experience applying processes that generate knowledge. The application of the modeling process for KMS designed is intended to express implicit and tacit knowledge from business processes and these characteristics also distinguish this approach from other systems. Some similarities can be observed between traditional approaches to knowledge mapping and the way in which process modeling is used in KMS to graphically represent improvement initiatives and guiding decisions.
However, there are some key differences that must be considered. Knowledge maps traditionally can be seen as actual maps, knowledge yellow systems or intelligently constructed databases that point to knowledge but do not contain them (Davenport & Prusak, 2000) Knowledge maps are not a storage area but a guide to showing where to find the knowledge needed, pointing to people, documents and databases. Thus, the novelty in the KMS approach depends on how the process model is used not only to determine who, what and why in a process, but also how and when. These process models are used as implicit knowledge repositories, tacit knowledge drivers and explicit knowledge assemblers. This approach requires knowledge mapping to different levels that are more functional and intuitive for KMS users.
In a paper entitled Knowledge Management, A Knowledge Transfer and Organizational Performance in The Arts and Crafts Industry: A Literature Review, conducts a literature review of the relationship between knowledge management, knowledge transfer and the performance of creative industry organizations in art and craft organizations (Latilla et al, 2018). Knowledge in the creative industry tends to manifest itself in the tacit way is not easy to share because it cannot be easily converted (codified) in an explicit form (Venkitachalam & Busch, 2018).
Likewise Harlow (2008) argues that tacit knowledge is difficult to analyze and to connect to organizational performance, as it is not shared through the flow of structured communication, but rather on individual minds as a result of their work experience. Knowledge in this context is a source of competitive advantage, an asset to be valued, as it is closely related to performance outcomes (Latilla et al, 2018).
Knowledge is a bundle of awareness, insight and feelings that characterize product makers: unique, exclusive, innovative and sustainable and a source of organizational competitive advantage. The transfer of tacit knowledge in the creative industries in these case arts and crafts is a significant challenge for the organization.
Based on a review of the literature already described above, it is shown that knowledge is a determinant of organizational performance and competitive advantage. There are organizations that emphasize explicit knowledge and some emphasize tacit knowledge. Although knowledge is a spiral process, the point that needs to be emphasized is that knowledge emerges from the individual (tacit knowledge).
Individual knowledge by organizations is implemented through knowledge management, transferred and codified into explicit knowledge and so on the spiral process of knowledge taking place within the organization. Researchers in the literature also try to synergize the process with information systems technology. But in the context of the creative industry where knowledge is unique, exclusively integral to the character, the identity gained from the insights and experiences of the individual (tacit), the transfer of knowledge is a difficult thing to do (because knowledge comes from perseverance, experience and insight).
The literature demonstrates alignment that the Knowledge Management System is a process that organizations must implement to achieve competitive advantage, achieve effectiveness and efficiency, improve performance, increase professionalism and reduce risk. The creative industry based on the literature review assumes that knowledge is an organizational strategic asset that makes organizations different and competitive and not easily imitated (subjective).
Knowledge that the organization has through knowledge management is classified and synergized to achieve organizational goals. Knowledge in the creative industry generally includes creative classes of bohemian (creative), creative professional functions (creative professionals), creative core functions (technical). So that is needed by the organization is synergize knowledge through the implementation of knowledge management system to achieve the success expected by each creative class that is not only the success measured from the amount of money generated company, but also success in building company reputation (professionalism, identity, character) which is an organizational competitive advantage.
The implementation of the knowledge management system process is (BEKN, 2016) acquisition, which is acquiring knowledge such as obtaining, searching, generating, creating, capturing and collaborating to gain knowledge. (Nonaka, 1995) Conversion is making existing knowledge useful and utilized in a business environment. (Lorenzen, 2011) Application is the use of relevant knowledge for the enterprise in creating value. (Nonaka et al., 2000) Protection, is protection of knowledge within an organization from the use or theft of illegal or inappropriate (such as patents, Intellectual Property Rights)
Knowledge Management in the literature is shown as an organizational effort towards the creation of knowledge through the implementation of the knowledge management system process. All types and sizes of organizations have recognized that knowledge is a source of competitive advantage. In unstable economic conditions and high competition intensity, companies must have distinct competitive advantages that character or identity.
Some researchers have found factors affecting the implementation of knowledge management systems (such as culture, leadership, technology, competitive pressure) in the context of knowledge created and owned by organizations through R & D functions. But in the context of creative industry, knowledge is a strategic asset that cannot be seen and is not easily imitated (subjective), unique and exclusive that is gained through experience, insight and perseverance (emphasizes tacit knowledge) so further research is important to know how knowledge is found and obtained will becomes a very important thing to be explored. So that for further research it can analyze the model of knowledge management system relationships with intellectual capital, organizational strategy, innovation and sustainable competitive advantage of creative industry.
This research was fully funded by Lembaga Penelitian dan Pengabdian Masyarakat (LPPM) from Sekolah Tinggi Ilmu Ekonomi (STIE) Pelita Indonesia with contract number 091/VI/LPPM-STIE-PI/2018.
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