Made Andriani, T.M.A. Ari Samadhi, Joko Siswanto and Kadarsah Suryadi
The purpose of this paper is to formulate a knowledge management strategy model that aligns with the organisational growth stage and the characteristics of the business processes…
Abstract
Purpose
The purpose of this paper is to formulate a knowledge management strategy model that aligns with the organisational growth stage and the characteristics of the business processes at every growth stage. The difference in characteristics at each growth stage has an impact on the characteristics of business processes, such as decision making and the period of process execution.
Design/methodology/approach
This research focussed on three fashion companies in Indonesia, and data were collected using a historical case-study method. Data collection was performed through in-depth interviews with the business owners, directors and managers, by direct observation, and through the collection of secondary data from the companies’ documents.
Findings
Through this research, a knowledge management strategy based on organisational growth stages was produced. It was found that when an organisation is at the entrepreneurial stage, the knowledge management strategy focussed on humans with tacit knowledge as well as explicit knowledge. At the growth stage, a transformation of tacit knowledge into explicit knowledge, especially at the individual level, is required, whereas at the expansion stage, the focus of the knowledge management strategy is on a system usage at the organisation level.
Research limitations/implications
Research using the case studies method has a limitation in the generalisation of the model. The knowledge management strategy generated in this study is unique to the fashion industry, where if the research were performed in other industries, there is a possibility for different results. Moreover, the characteristics of the business processes that are examined in this study are limited to the period of implementation and level of interaction. Other more detailed dimensions such as task variety and task analysability can be used to obtain more detailed characteristics of business processes.
Practical implications
Using the knowledge management strategies model formulated at every growth stage, the company owner can specify a knowledge management strategy that suits the organisation’s goal. Also, the results of this research can provide information on the priority for developing a knowledge management system aligned with the company’s growth.
Originality/value
The knowledge management strategy formulation from the organisational development point of view has not been investigated previously. In fact, the needs of the organisation, along with its growth, will change. Therefore, this research provides a new perspective which is more dynamic and can be integrated into formulating the knowledge management strategy.
Details
Keywords
Made Andriani, T.M.A. Ari Samadhi, Joko Siswanto and Kadarsah Suryadi
This study aims to develop a business process maturity model, especially on operation processes, based on the characteristics of each organisational growth stage, to increase…
Abstract
Purpose
This study aims to develop a business process maturity model, especially on operation processes, based on the characteristics of each organisational growth stage, to increase small and medium enterprises (SMEs) growth. With this information, SMEs can identify their needs and priorities for business process improvement based on the characteristics that are inherent in the organisation.
Design/methodology/approach
The proposed model was developed by reviewing the literature on previous studies related to the organisational life cycle and its characteristics, as well as a business process maturity model. Furthermore, historical case studies were conducted to validate the proposed model. Case study objects in this research were fashion industry companies that have grown from an SME scale to national level.
Findings
The results of this research indicate that the characteristics of each growth stage are different, which led to increased complexity and maturity of business processes run. Therefore, SMEs should pay attention to their growth stages, as a basis to improve their business process maturity, especially on the critical processes, which are evaluate products performance, design products and services and monitor sales. Through this model, SMEs can determine the business’ current growth stage and use the proposed model as guidance for business process improvement to accelerate organisational growth.
Research limitations/implications
Validation of the proposed model was done by conducting a historical case study. To generalise the model, it is recommended to survey similar industry and test quantitatively using statistical methods. However, further research can be used in other industries that might yield different results. Besides, this research can also be developed in the supporting process categories.
Practical implications
This study provides a practical guide for SMEs to identify their current growth stage, and implement the measurement of business process maturity level. Maturity level standard at every growth stage can be used in determining the priority of business process improvement to drive organisational growth.
Originality/value
Through this research, the BPMM method was developed to enable SMEs to implement a self-evaluation process without seeking external assistance and assess their needs through a clear and understandable scale allowing for further development of the business. By using this method, SMEs can manage their business processes maturity level to encourage its growth.