Knowledge Management and Organizational Transformation-A Quantitative Study

Abstract

Efforts of major oil companies to fortify organizational capability or transform into energy companies for greater competitiveness are not new. Well guided change processes could result in improved performance and lead to more focus on strategic prospects. The objective of the work upon which the paper is based is to investigate employees' assessments of the influence of knowledge management (KM) dimensions (knowledge propagation, absorption, creation, and application) on organizational transformation (OT). The study involved statistical inferences given data collected from a representative sample of respondents across different units. The application of simple quantitative multiple regression techniques to evaluate relationships between KM activities and OT is explored. Data were screened for normality with skewness and kurtosis statistics, ANOVA, t-tests, Pearson's correlations method, and multiple regressions. No sampling bias was present during data collection from the representative sample. Regression and reliability coefficients, variance inflation factors, and correlation matrix were determined to ascertain the effects of KM activities on OT. Results presented only show the thought process involved in the execution of this quantitative process. All scopes of KM exhibited strong links with OT in the study. Three aspects of KM (knowledge absorption, knowledge creation, and knowledge application) correlated with OT significantly. Reliability coefficients ranged from .92 for knowledge absorption to .954 for knowledge application. Knowledge propagation did not contribute considerably to the regression model, but contributed to the test of the bivariate correlation between OT and knowledge propagation. When the various KM components were combined, all of the KM variables collectively predicted OT with the exception of knowledge propagation. The findings of the study address the link between OT and KM dimensions. Evidently, OT largely relies on the application of the four KM dimensions; thus, company management needs work towards implementing the strategy of knowledge creation, absorption, propagation and application. The results of the study improve the understanding and measurement of KM dimensions and how these influence OT, sustainable growth, organizational change and design. Faced with the challenge to maximize organization outcomes, leaders can exploit several alternatives to accelerate OT.