Mitigating Tacit Knowledge Loss in South African State-Owned Companies: HRM Approach

Abstract

This study is an interdisciplinary research that sought to explore knowledge loss risks interdependently in relation to the knowledge management (KM) and human resource management (HRM) disciplines in South African state-owned companies (SOCs). This study highlighted the significant role of knowledge-based HRM systems, which will naturally enhance the management capacity of tacit knowledge to mitigate risks and assist SOCs to deliver on a developmental mandate, as well as ensure their survival and the economic growth of developing nations. The paper aims to explore the connection between KM and HRM practices for the effective management of enterprise tacit knowledge loss risks using the SOCs of South Africa as a case. This study is a mixed methods research project, using the exploratory sequential design as a research strategy. Data were collected qualitatively through interviews with 20 purposively nominated human resource managers, and survey data was collected randomly from 25% (145 of the 585 responses) of the workers employed in SOCs. Qualitative data were analysed thematically using Atlas.ti and Statistical data were analysed using SAS and exploratory factor analysis. The relationship between HRM and KM practices in lessening the risks inherent in tacit knowledge loss, mainly from voluntary turnover, is underdeveloped in many South African SOCs. The study established that the role of HRM in supporting KM is limited and underdeveloped in many SOCs, largely because they are lagging in key structures and knowledge-centric cultures, behaviours and HRM practices to drive the effective management of company knowledge. This study assists HRM executives and KM practitioners to develop knowledge-driven HRM practices in order to mitigate risks from the loss of tacit knowledge, whilst ensuring sustained performance in public enterprises. The study and proposed strategies seek to influence the discourse, policies, practices and theories on KM and HRM praxis in companies to mitigate the risks associated with the loss of tacit knowledge.