THE EFFECT OF KNOWLEDGE MANAGEMENT ON THE STRATEGIC MANAGEMENT PROCESS MEDIATED BY COMPETITIVE INTELLIGENCE IN THE SMALL BUSINESS COMPANY
Keywords:Small business, Indonesia, knowledge management, strategic management, competitive intelli-gence
AbstractThe purpose of this study is to discuss the synergic and separate use of knowledge management and competitive intelligence in stage of strategic management process. This study presents two independent variables (knowledge management and competitive intelligence) and one dependent variable (strategic management process). 145 samples from Indonesia small businesses considered valid, thereby indicating 88.41% validity rate. The results show that the proposed variable, Knowledge management and competitive intelligence significantly influences strategic management process from the perspective of the small business in West Indonesia. This result implies a lack of mediation effect presented by the competitive intelligence. This finding clarifies the research question that knowledge management and competitive intelligence are associated with strategic management process
Abor, J., & Quartey, P. (2010). Issues in sme develop-ment in Ghana and South Africa. International Research Journal of Finance and Economics, 39(39), 218–228.
Adeniran, T. V. (2012). Investigating the dynamic capabilities and competitive advantage of South African smes. African Journal of Business Mana-gement, 6(11), 4088–4099.
Akgün, A. E., Byrne, J., & Keskin, H. (2007). Orga-nizational intelligence: A structuration view. Journal of Organizational Change Management, 20(3), 272–289.
Akhter, S. H. (2003). Strategic planning, hyper-competition, and knowledge management. Busi-ness Horizons, 46(1), 19–24.
April, K., & Bessa, J. (2006). A critique of the strategic competitive intelligence process within a global energy multinational. Problems and Perspectives in Management, 4(2), 86–99.
Avlonitis, G. J., & Salavou, H. E. (2007). Entre-preneurial orientation of SMEs, product in-novativeness, and performance. Journal of Bus-iness Research, 60 (5), 566–575.
Bartes, F. (2014). The objectives of competitive intelligence as a part of corporative development strategy. Acta Universitatis Agriculturae et Silvi-culturae Mendelianae Brunensis, 62(6), 1243–1250.
Battisti, M., Deakins, D., & Perry, M. (2013). The sustainability of small businesses in recessionary times: Evidence from the strategies of urban and rural small businesses in New Zealand. Inter-national Journal of Entrepreneurial Behavior & Research, 19(1), 72–96.
Bergeron, P., & Hiller, C. A. (2005). Competitive intelligence. Annual Review of Information Science and Technology, 36(1), 353–390.
Birasnav, M. (2014). Knowledge management and organizational performance in the service indus-try: The role of transformational leadership beyond the effects of transactional leadership. Journal of Business Research, 67(8), 1622–1629.
Boden, A., Avram, G., Bannon, L., &Wulf, V. (2012). Knowledge sharing practices and the impact of cultural factors: reflections on two case studies of offshoring in sme. Journal of Software: Evolution and Process, 24(2), 139–152.
Bogza, R. M., & Zaharie, D. (2008). Business intelli-gence as a competitive differentiator. In 2008 IEEE International Conference on Automation, Quality and Testing, Robotics, AQTR 2008 - THETA 16th Edition - Proceedings (Vol. 1, pp. 146–151).
Bollinger, A. S., & Smith, R. D. (2001). Managing organizational knowledge as a strategic asset. Journal of Knowledge Management, 5(1), 8–18.
Bose, R. (2008). Competitive intelligence process and tools for intelligence analysis. Industrial Mana-gement & Data Systems, 108(4), 510–528.
Burton, B., Geishecker, L., Hostmann, B., Friedman, T., & Newman, D. (2006). Organizational struc-ture: Business intelligence and information mana-gement. Gartner Research, (April), 1–11.
Calof, J. L., Richards, G., & Smith, J. (2015). Foresight, competitive intelligence and business analytics - Tools for making industrial programmes more efficient. Foresight-Russia, 9(1), 68–81.
Calof, J. L., & Smith, J. (2010). The integrative domain of foresight and competitive intelligence and its impact on r&d management. R & D Management, 40(1), 31–39.
Calof, J. L., & Wright, S. (2008). Competitive intelli-gence. European Journal of Marketing, 42(7/8), 717–730.
Cerchione, R., Esposito, E., & Spadaro, M. R. (2015). The spread of knowledge management in smes: A scenario in evolution. Sustainability (Switzer-land), 7(8), 10210 –10232.
Chan, Y. E., Huff, S. L., Barclay, D. W., & Copeland, D. G. (1997). Business strategic orientation, information systems strategic orientation, and strategic alignment. Information Systems Rese-arch, 8 (2), 125–150.
Chen, C.-J., & Huang, J.-W. (2009). Strategic human resource practices and innovation performance - The mediating role of knowledge management capacity. Journal of Business Research, 62(1), 104–114.
Cohen, J. F., & Olsen, K. (2015). Knowledge mana-gement capabilities and firm performance: A test of universalistic, contingency and complemen-tarity perspectives. Expert Systems with Applica-tions, 42(3), 1178–1188.
Cvitanovic, C., Hobday, A. J., vanKerkhoff, L., & Marshall, N. A. (2015). Overcoming barriers to knowledge exchange for adaptive resource management: The perspectives of Australian marine scientists. Marine Policy, 52, 38–44.
Danskin, P., Englis, B. G., Solomon, M. R., Goldsmith, M., & Davey, J. (2005). Knowledge management as competitive advantage: Lessons from the textile and apparel value chain. Journal of Knowledge Management, 9(2), 91–102.
Darroch, J., & McNaughton, R. (2003). Beyond market orientation: Knowledge management and the innovativeness of New Zealand firms. European Journal of Marketing, 37(3/4), 572–593.
Davenport, T. H. (2010). Business intelligence and organizational decisions. International Journal of Business Intelligence Research, 1(1), 1–12.
Davenport, T. H., & Prusak, L. (1997). Working know-ledge: How organizations manage what they know. Boston, MA, USA: Harvard Business School Press.
Desouza, K. C., & Awazu, Y. (2006). Knowledge management at smes: Five peculiarities. Journal of Knowledge Management, 10(1), 32–43.
Donate, M. J., & dePablo, J. D. (2015). The role of knowledge-oriented leadership in knowledge management practices and innovation. Journal of Business Research, 68(2), 360–370.
Drnevich, P. L., & Croson, D. C. (2013). Information technology and business-level strategy: Toward an integrated theoretical perspective. MIS Quar-terly, 37(2), 483–509.
Ettorre, B. (1995). Managing competitive intelligence. Management Review, 84(10), 15–19.
Fidel, P., Schlesinger, W., & Cervera, A. (2015). Colla-borating to innovate: Effects on customer knowledge management and performance. Jour-nal of Business Research, 68(7), 1426–1428.
Figueiredo, E., Pais, L., Monteiro, S., & Mónico, L. (2016). Human resource management impact on knowledge management: Evidence from the Portuguese banking sector. Journal of Service Theory and Practice, 26(4), 497–528.
Ford, D., Myrden, S. E., & Jones, T. D. (2015). Understanding “disengagement from knowledge sharing”: Engagement theory versus adaptive cost theory. Journal of Knowledge Management, 19(3), 476–496.
Giebels, D., vanBuuren, A., & Edelenbos, J. (2015). Using knowledge in a complex decision-making process – Evidence and principles from the Danish Houting project’s ecosystem-based management approach. Environmental Science & Policy, 47, 53–67.
Gold, A. H., Malhotra, A., & Segars, A. H. (2001). Knowledge management: An organizational capabilities perspective. Journal of Management Information Systems, 18(1), 185–214.
Håkansson, C., & Nelke, M. (2015). Competitive intelligence for information professionals. 1st Ed. Waltham, MA: Chandos Publishing.
Halawi, L. A., Aronson, J. E., & Mccarthy, R.V. (2005). Resource-based view of knowledge management for competitive advantage. Journal of Knowledge Management, 3(2), 75–86.
Harris, R. J. (2009). Improving tacit knowledge transfer within smes through e‐collaboration. Journal of European Industrial Training, 33(3), 215–231.
Hung, R. Y.-Y., Lien, B. Y.-H., Fang, S.-C., & McLean, G. N. (2010). Knowledge as a facilitator for enhancing innovation performance through total quality management. Total Quality Management & Business Excellence, 21(4), 425–438.
Intezari, A., & Gressel, S. (2017). Information and reformation in km systems: Big data and strategic decision-making. Journal of Knowledge Management, 21(1), 71–91.
Jamali, D., Lund-Thomsen, P., & Jeppesen, S. (2017). Smes and csr in developing countries. Business and Society, 56(1), 11–22.
Jamil, G. L. (2013). Approaching market intelligence concept through a case analysis: Continuous knowledge for marketing strategic management and its complementarity to competitive intelli-gence. Procedia Technology, 9, 463–472.
Jennex, M. E. (2008). Knowledge management, organizational memory and transfer behavior: Global approaches and advancements. IGI Global.
Kamya, M. T., Ntayi, J. M., & Ahiauzu, A. (2010). Knowledge management and competitive advantage: The interaction effect of market orientation. African Journal of Business Management, 4(14), 2971–2980.
Kraaijenbrink, J. (2012). Integrating knowledge and knowledge processes: A critical incident study of product development projects. Journal of Product Innovation Management, 29(6), 1082–1096.
Liang, T., Liu, C.-C., & Wu, C.-H. (2008). Can social exchange theory explain individual knowledge-sharing behavior? A meta-analysis. Twenty Ninth International Conference on Information Systems, 18.
Liao, S. (2003). Knowledge management technologies and applications—literature review from 1995 to 2002. Expert Systems with Applications, 25(2), 155–164.
Liebowitz, J. (2001). Knowledge management and its link to artificial intelligence. Expert Systems with Applications, 20(1), 1–6.
Linton, J. D., & Solomon, G. T. (2017). Technology, innovation, entrepreneurship and the small business: Technology and innovation in small business. Journal of Small Business Manage-ment, 55(2), 196 –199.
Ma, H. (1999). Creation and preemption for compe-titive advantage. Management Decision, 37(3), 259–267.
Malakooti, B. (2012). Decision making process: Ty-pology, intelligence, and optimization. Journal of Intelligent Manufacturing, 23(3), 733–746.
Manoharan, A., Melitski, J., & Bromberg, D. (2015). State strategic information system plans: An assessment integrating strategy and operations through performance measurement. International Journal of Public Sector Management, 28(3), 240–253.
March-Chordà, I., Gunasekaran, A., & Lloria-Aram-buro, B. (2002). Product development process in Spanish smes: An empirical research. Techno-vation, 22(5), 301–312.
Marin, J., & Poulter, A. (2004). Dissemination of com-petitive intelligence. Journal of Information Science, 20(2), 165–180.
Miner, A. S. (2002). The pursuit of organizational intelligence. Administrative Science Quarterly, 47(1), 174–178.
Ndlela, L. T., & DuToit, A. S. A. (2001). Establishing a knowledge management programme for competitive advantage in an enterprise. Inter-national Journal of Information Management, 21(2), 151–165.
Nesheim, T., & Gressgård, L. J. (2014). Knowledge sharing in a complex organization: Antecedents and safety effects. Safety Science, 62, 28–36.
Newman, V. (1997). Redefining knowledge mana-gement to deliver competitive advantage. Journal of Knowledge Management, 1(2), 123–128.
Nguyen, T. H., Newby, M., & Macaulay, M. J. (2015). Information technology adoption in small business: Confirmation of a proposed framework. Journal of Small Business Mana-gement, 53(1), 207–227.
Nonaka, I. (1994). A Dynamic Theory of organiza-tional knowledge creation ikujiro nonaka. Or-ganization Science, 5(1), 14–37.
Nonaka, I., & Takeuchi, H. (1995). Knowledge-creat-ing company: How Japanese companies create the dynamics of innovation. UK: Oxford Uni-versity Press.
Nunes, M. B., Annansingh, F., Eaglestone, B., & Wakefield, R. (2006). Knowledge management issues in knowledge‐intensive SMEs. Journal of Documentation, 62(1), 101–119.
Ogiela, L. (2015). Advanced techniques for know-ledge management and access to strategic infor-mation. International Journal of Information Management, 35 (2), 154–159.
Oppenheimer, D. M., & Kelso, E. (2015). Information processing as a paradigm for decision making. Annual Review of Psychology, 66(1), 277–294.
Oztemel, E., & Arslankaya, S. (2012). Enterprise knowledge management model: A knowledge tower. Knowledge and Information Systems, 31(1), 171–192.
Pak, Y. S., Ra, W., & Lee, J. M. (2015). An integrated multi-stage model of knowledge management in international joint ventures: Identifying a trigger for knowledge exploration and knowledge har-vest. Journal of World Business, 50(1), 180–191.
Pargaonkar, Y. R. (2016). Leveraging patent landscape analysis and ip competitive intelligence for competitive advantage. World Patent Informa-tion, 45, 10–20.
Petrisor, I., & Strain, N. A. (2013). Approaches on the competitive intelligence. USV Annals of Econo-mics & Public Administration, 13(1), 100–109.
Plessis, M. du. (2007). The role of knowledge manage-ment in innovation. Journal of Knowledge Management, 11(4), 20–29.
Purcarea, I., del Mar Benavides Espinosa, M., & Apetrei, A. (2013). Innovation and knowledge creation: Perspectives on the smes sector. Management Decision, 51 (5), 1096–1107.
Rahimli, A. (2012). Knowledge management and competitive advantage. Information and Know-ledge Management, 2(7), 37–43.
Reich, B. H., Gemino, A., & Sauer, C. (2014). How knowledge management impacts performance in projects: An empirical study. International Jour-nal of Project Management, 32(4), 590–602.
Revilla, E., Prieto, I. M., & Prado, B. R. (2010). Knowledge strategy: Its relationship to environ-mental dynamism and complexity in product development. Knowledge and Process Manage-ment, 17(1), 36–47.
Rouach, D., & Santi, P. (2001). Competitive intel-ligence adds value: Five intelligence attitudes. European Management Journal, 19(5), 552–559.
Roxas, B., Battisti, M., & Deakins, D. (2013). Learn-ing, innovation and firm performance: Know-ledge management in small firms. Knowledge Management Research and Practice, 12(4), 443–453.
Shujahat, M., Hussain, S., Javed, S., Malik, M. I., Thurasamy, R., & Ali, J. (2017). Strategic mana-gement model with lens of knowledge manage-ment and competitive intelligence: A review approach. VINE Journal of Information and Knowledge Management Systems, 47(1), 55–93.
Snyman, R., & Kruger, C. J. (2004). The interdepend-ency between strategic management and strategic knowledge management. Journal of Knowledge Management, 8(1), 5–19.
Sook-Ling, L., Ismail, M. A., & Yee-Yen, Y. (2015). Information infrastructure capability and organi-sational competitive advantage. International Journal of Operations & Production Manage-ment, 35 (7), 1032–1055.
Spithoven, A., Vanhaverbeke, W., & Roijakkers, N. (2013). Open innovation practices in smes and large enterprises. Small Business Economics, 41(3), 537–562.
Street, C. T., & Meister, D. B. (2004). Small business growth and internal transparency: The role of information systems. MIS Quarterly, 28(3), 473–506.
Sundiman, D. (2017). Human resource management in the enhancement processes of knowledge management. Binus Business Review, 8(3), 167–173.
Sundiman, D., & Idrus, M. S. (2015). Confucianism ethic, guanxi, and acculturation role on the knowledge transfer process of Chinese descen-dant in Indonesia. International Journal of Know-ledge Management Studies, 6(3), 261.
Sundiman, D., Mursidi, A., & Putra, S. S. (2016). Knowledge management role on creating service excellence. In Proceedings of the the 11th international knowledge management in orga-nizations conference on the changing face of knowledge management impacting society - kmo ’16.
Tambunan, T. (2008). Sme development, economic growth, and government intervention in a deve-loping country: The Indonesian story. Journal of International Entrepreneurship, 6(4), 147–167.
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533.
Teima, G., Berthaud, A., Bruhn, M., DeCastro, O., Joshi, M., Mirmulstein, M., & Onate, A. (2010). Scaling-up sme access to financial services in the developing world. International Finance Corporation, (October), 1–144.
Tidd, J. (2003). From knowledge management to strategic competence measuring technological, market and organisational innovation, series on technology management. Research Policy, 20, 251–259.
Trim, P. R. J., &Lee, Y. I. (2008). A strategic marketing intelligence and multi-organizational resilience framework. European Journal of Marketing, 42(7/8), 731–745.
Vajjhala, N. R. (2013). Cultural factors and knowledge sharing in medium-sized enterprises in Albania: A qualitative, multisite case study. University of Phoenix, United States -- Arizona.
Verreynne, M.-L., & Meyer, D. (2010). Small business strategy and the industry life cycle. Small Business Economics, 35(4), 399–416.
Villa, A., & Taurino, T. (2017). From industrial districts to sme collaboration frames. International Journal of Production Research, 56(1–2), 1–9.
Vriens, D. J. (2004). The role of information and communication technology in competitive intelligence. In D. J. Vriens (Ed.), Information and Communication Technology for Competitive Intelligence (pp. 1–33). Hershey, PA: Idea Group Publishing.
Werner, K., Dickson, G., & Hyde, K. F. (2015). Learning and knowledge transfer processes in a mega-events context: The case of the 2011 Rugby World Cup. Tourism Management, 48, 174–187.
Whyman, P. B., & Petrescu, A. I. (2015). Workplace flexibility practices in smes: Relationship with performance via redundancies, absenteeism, and financial turnover. Journal of Small Business Ma-nagement, 53(4), 1097–1126.
Wipawayangkool, K., & Teng, J. T. C. (2016a). Assessing tacit knowledge and sharing intention: A knowledge internalization perspective. Know-ledge and Process Management, 23(3), 194–206.
------ (2016b). Paths to tacit knowledge sharing: Know-ledge internalization and individual-task-tech-nology fit. Knowledge Management Research and Practice, 14 (3), 309–318.
Wolf, S., Just, D., & Zilberman, D. (2001). Between data and decisions: The organization of agricul-tural economic information systems. Research Policy, 30(1), 121–141.
Wong, K. Y., & Aspinwall, E. (2004). Characterizing knowledge management in the small business environment. Journal of Knowledge Manage-ment, 8(3), 44–61.
Zack, M., McKeen, J., & Singh, S. (2009). Knowledge management and organizational performance: An exploratory analysis. Journal of Knowledge Management, 13(6), 392–409.
Zaim, H., Tatoglu, E., & Zaim, S. (2007). Perfor-mance of knowledge management prac-tices: A causal analysis. Journal of Knowledge Mana-gement, 11(6), 54–67.
Zammuto, R. F., Griffith, T. L., Majchrzak, A., Doug-herty, D. J., & Faraj, S. (2007). Information tech-nology and the changing fabric of organization. Organization Science, 18(5), 749–762.
Authors who publish on this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).