Conceptualizing Knowledge Management and Information Infrastructure Capability for Competitive Advantage: A Malaysian Perspective

Abstract

This article argues that from an organizational diffusion perspective, information infrastructure capability has the potential to increase organizational competitive advantage. As diverse knowledge management research perspectives have obscured the understanding of information infrastructure capability, we reconcile these observations for the benefit of business managers and practitioners. Knowledge management is defined operationally as the management of knowledge management activities and the activities that are performed using information infrastructure capability in order to achieve competitive advantage. Underpinned by prior studies, our research framework of information infrastructure capability includes the following key categories: dynamic, integrating, data management, security, utility, and collaborating capabilities. Data were collected from 295 randomly selected multimedia super corridor Malaysian organizations from which a conceptual model of knowledge management, information infrastructure capability, and organizational competitive advantage was developed. Based on the findings, dynamic and utility capabilities are the key significant capabilities for achieving organizational competitive advantage. Security and data management capabilities were inconsequential in achieving organizational competitive advantage. Utilizing knowledge was among the top knowledge management activities leading to competitive advantage. Our findings can be used by business managers in Malaysia and countries with similar settings to prioritize their investment in information infrastructure capability to gain increased competitiveness in the market.