Exploring KM practices in Malaysian R&D firms
| Published date | 01 July 2019 |
| Date | 01 July 2019 |
| DOI | https://doi.org/10.1108/GKMC-03-2018-0029 |
| Pages | 356-376 |
| Author | Chin Wei Chong,Yee Yen Yuen,Siong Choy Chong |
| Subject Matter | Library & information science,Information behaviour & retrieval,Information in society,Information literacy,Library & information services |
Exploring KM practices in
Malaysian R&D firms
Chin Wei Chong and Yee Yen Yuen
Multimedia University, Selangor, Malaysia, and
Siong Choy Chong
Finance Accreditation Agency, Kuala Lumpur, Malaysia
Abstract
Purpose –The purpose of this research is to explore how current implementation of KM practices, KM
processes and KM-centred strategiesamong Malaysian R&D firms contribute to improving their knowledge
quality. In addition, the KM practices investigated are supported by ways of how the R&D firms are
motivatedto share knowledge and what are the constraints inhibiting such sharing.
Design/methodology/approach –A total of 320 questionnaires were disseminated to Malaysian R&D
firms and the response rate was 47 per cent. Descriptive analysis such as percentage, mean values and
indexes wereused to analyse the data.
Findings –Overall, the findingsreflect the nature of R&D firms as knowledge-intensive organisations. KM
practicesshow that there is a very high tendency of implementation of knowledge explorationand knowledge
exploitation activities. In all, 90 per cent of more firms have implemented the three KM processes with
constructing new knowledgeappears to be the most implemented process. Knowledge-centredculture scores
the highestoverall mean, followed by leadership and HR practices.
Practical implications –This study provides an identificationof KM practices that serves as a starting
point for R&D managers to determine the gaps and appropriate actions to collectively achieve the desired
R&D resultsand national innovation.
Originality/value –This study serves as a careful examination in exploring the extent to which KM
practices, KM processesand KM-centred strategies are implemented in improvingthe knowledge quality in
the Malaysian R&D firms. It helps R&D firms to frame theirKM activities to drive the capability of creating
and retaininga greater value onto their core business competencies.
Keywords Malaysia, KM processes, Knowledge quality, KM practices, KM-centred strategies,
R&D firms
Paper type Research paper
Introduction
The Global Competitiveness Report 2017-2018, released by the World Economic Forum
(WEF) on 27th September 2017, ranked Malaysia 23rd out of 137 economieswith a score of
5.17 improving two positionsas compared to 25th position out of 138 economieswith a score
of 5.16 previously (MPC, 2017). This marks a tremendous improvement in the progress of
the country towards research, development and innovation. The Malaysian Investment
Development Authority(MIDA) reported that the total investment inR&D projects made by
Malaysian R&D firms amounted to RM374m (US$89m), 33.6 per cent higher than 2016
(MIDA,2017a, 2017b). The services sector continued to lead with investments of RM121bn
or US$29bn (61.4 per cent), followedby the manufacturing (32.3 per cent) and primary sector
(6.3 per cent) (MIDA,2017a,2017b).
As the core focus of the 11th Malaysian Plan (2016-2020) is to translate research and
innovation into national wealth through strengthening relational capital to foster stronger
GKMC
68,4/5
356
Received20 March 2018
Revised27 April 2018
19November 2018
Accepted19 November 2018
GlobalKnowledge, Memory and
Communication
Vol.68 No. 4/5, 2019
pp. 356-376
© Emerald Publishing Limited
2514-9342
DOI 10.1108/GKMC-03-2018-0029
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/2514-9342.htm
linkages, MIDA (2015) insiststhat strong knowledge management (KM) practices should be
implemented in Malaysian R&D firms. Furthermore, the Malaysian R&D firms are
currently operating in a highly competitive environment which call for effective KM
practices to develop novel and useful ideas and products, reduce costs, escalate problem-
solving efficiency and to improve performance(Bryson et al., 2013;Mason and Brown, 2013;
Shearmur, 2012). Effective KM implementation in the R&D firms will enable the country to
bring creative outputs to market and improve national innovation and achieving a key
target of the National Science, Technology and Innovation policy in raising the national
Gross Expenditureon R&D (GERD) to at least 2 per cent by 2020 (MIDA, 2015).
Generally, KM activities in R&D firms can be grouped into exploration (knowledge
generation) and exploitation (knowledge application) (Baden-Fuller and Haefliger, 2013)to
support the KM processes of construction, embodiment and deployment of knowledge
(Eriksson, 2013;Frankort, 2016). Accordingly, a well-planned KM process enables every
employee in the R&D firms to fulfil the mission of finding, selecting, organising and
presenting knowledge towardsattaining corporate objectives and strategies (Harvey, 2012).
It also supports innovation and encourage free flow of ideas withinthe firms and help them
to increase revenues by delivering products and services to market faster and reduce costs
by eliminating redundant businessactivities (Frankort, 2016;Jain and Jeppe Jeppesen, 2013;
Lichtenthaler,2016;Von Krogh et al.,2012).
Many researchers have acknowledged the importance of effective KM practices
(Frankort, 2016;Lichtenthaler, 2016;Ma and Huang, 2016;Nonaka et al.,2014;Von Krogh,
2012) as a key determinant of successin many firms. In fact, KM has been reported as a key
determinant of disruptiveinnovation in such studies. Since Malaysia is progressingtowards
a new era of knowledge economy emphasising on high innovation capacity, R&D firms
which are fuelled by the digital revolution and advancement will be at the cutting-edge.
Malaysia R&D firms are well positioned to leverage on knowledge economic opportunities
through enhancing their KM practices, KM processes, knowledge quality and KM-centred
strategies (Academyof Sciences Malaysia,2017). However, little research have been done on
R&D firms with relatively scarce knowledge on KM practices, KM processes, knowledge
quality and KM-centred strategies in improving knowledge quality (Academy of Sciences
Malaysia, 2017;Pike et al., 2005). Successful KM practices in R&D sector are critical for
economic progress and helps on economic development. In economic perspectives,
successful KM practices play a significant role that can help to raise the returns on
investment through continuous innovation and new products and processes (Von Krogh,
2012).
To overcome the above-mentioned issue, this research is conducted to explore how
to exploit current KM practices (knowledge exploration and knowledge exploitation),
KM processes (construction, embodiment and deployment) and KM-centred strategies
(culture, leadership and HR practices) to enhance knowledge quality of the research
output in Malaysian R&D firms. In addition, the KM practices investigated are
supported by ways of how the R&D firms are motivated to share knowledge and what
are the constraints inhibiting such sharing. This research adds to the existing
knowledge by being one of the pioneer research in R&D sector in Malaysia which
determine the effectiveness of the KM practices, strategies and processes towards
enhancing knowledge quality. Good KM strategies and processes can serve as a
starting point to boost R&D firms’awareness on the importance of KM practices and
thus help the R&D managers to determine the gaps and take appropriate actions to
collectively achieve better national innovation.
Malaysian
R&D firms
357
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