Akha Van 2013
Akha Van 2013
Akha Van 2013
http://dx.doi.org/10.1108/JKIC-04-2013-0008
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Examining the
Examining the role of ethics in role of ethics
knowledge management process
Case study: an industrial organization
129
Peyman Akhavan, Majid Ramezan and Jafar Yazdi Moghaddam
Department of Industrial Engineering,
Iran University of Science and Technology, Tehran, Iran
Abstract
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Purpose – Current successful and thriving organizations are those which create or gain new
knowledge and convert it into applicable methods for improving their activities and performance.
Nonetheless, ethics are the key issues in achieving such organizations and gaining success in
implementation of supportive systems for aforementioned subjects. The main aim of the present study
is therefore to examine the impact of ethical principles on knowledge management processes.
Design/methodology/approach – The present paper tries to study the impact of ethics on
knowledge management process according to the model of Nonaka and Takeuchi. To measure this
issue, a conceptual model is developed based on literature. In order to examine the validity of the
model, employees in some areas of an industrial organization including computer, IT, electronic and
mechanic were asked to answer the items in a questionnaire designed for the same research. Structural
equation modeling is used to analyze research variables.
Findings – The results show that there is a positive and significant relationship between ethics
and knowledge management process. Likewise, there is a direct and significant relationship between
ethics and knowledge management processes such as socialization, externalization and combination
while the relationship between ethics and internalization is not significant.
Research limitations/implications – Published resources are paramount about knowledge
management while they suffer from a systematic regard as well as considering ethics in all knowledge
management processes. Therefore, the main limitation of this research is the lack of studies in the field
of relation of ethics and knowledge management (KM).
Originality/value – The results extend the understanding of the role of ethical principles in
knowledge management processes. Hence, this research can open a new window in science space that
is related to knowledge management and ethics.
Keywords Ethics, KM, Knowledge management
Paper type Research paper
1. Introduction
In the present age called the intellectual age, intangible and intellectual capitals called
knowledge are considered as a key factor. In other words, those organizations will win
against changes and transformations that can improve and develop their own
knowledge. Significantly, access to knowledge and organizational knowledge reserves
is impossible without learning. Organizations that have developed a strong learning
culture are effective in creating, acquiring and transferring knowledge as well as in
modifying the behaviors to reflect new knowledge (Finn and Torgeir, 2008). However, Journal of Knowledge-based
knowledge generation and acquisition is not sufficient to consider an organization as a Innovation in China
Vol. 5 No. 2, 2013
learning organization. Rather, such an organization should be able to utilize this pp. 129-145
knowledge in its behaviors and performances and to improve/modify its activities q Emerald Group Publishing Limited
1756-1418
via such knowledge (Lakshman, 2009). Today successful organizations are those that DOI 10.1108/JKIC-04-2013-0008
JKIC generate or acquire a new knowledge and have converted it to applied methods to
5,2 improve their activities. They use new and creative methods to modify their structure
and performance and, hence, they can be a model and paradigm for using (Michael et al.,
2009). In this manner, the key to access such organizations and being successful in
implementing supporting systems is to consider ethical issues. With rapid growth of
technology, human life and job styles are also rapidly changed and in line with such
130 changes, ethical issues are increasingly paid attention. Information technology’s (IT)
ethics is a multidisciplinary issue and discussing it needs familiarity and specialty
with two areas of ethics and IT especially in applied ethics. The aim of such discussion
is to answer questions that are related to the value foundations of people’s activities
and responsibilities in the IT area (Moor, 1985). On the other hand, ethical discussion
is a main issue in the framework of Islamic concepts and is highly emphasized,
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because in the Islamic approach, all aspects of human life are regarded and dimension
of internal and internalization of ethics are especially considered (Rezaiian and
Ghazinoory, 2010).
Therefore, knowledge management is a systematic issue whose successful
implementation needs a multilateral and overall attitude on its factors especially
manpower factors (Akhavan et al., 2009). Respecting ethics by human resources helps
to improve implementation of knowledge management. Hence, studying such ethical
points and their relation to knowledge management processes (KMPs) and their
concepts is an issue highlighted in the present study. Citations are paramount about
knowledge management while there are pivotal studies in terms of ethics, while little
attention to ethical issues is an important problem in implementation of knowledge
management. Accordingly, the present paper looks to clarify the key role of ethics in
KMPs. With this purpose, the major question of the research is:
RQ1. Is there a significant relationship between ethics and KMP?
2. Theoretical background
Knowledge management
According to Haines (2001), KMP consists of the four components:
(1) Content. Which is related to the type of knowledge (explicit or tacit).
(2) Skill. Achieving abilities for extracting knowledge.
(3) Culture. Culture of organizations should encourage sharing of knowledge and
information.
(4) Organization. Organizing the available knowledge.
Nonaka’s theory of knowledge creation has “achieved paradigmatic status since the
mid-1990s [. . .] and is highly respected” (Gourlay, 2006), with Choo and Bontis (2002)
describing it as “one of the best known and most influential models in the knowledge
strategy literature”, elaborating that Nonaka’s knowledge creation model “provides the
intellectual scaffolding for a growing number of empirical and theoretical studies in
strategic knowledge management”. Gourlay (2006) points out that the yearly increase
in the number of citations, as well as the range of categories of journals in which this
publication has been cited, is indicative of a level of interest that deems his research
outputs very important work.
Ethical issue
Ethics are not simply created by humankind but instead result from human nature which
constitutes the essential frame of laws; in fact, human laws follow the ethics. It also is one
of the most fundamental subjects in the divine concept; accordingly it can meet the whole
dimension of human life, particularly focusing on internal and external intention. The
word “ethics” represent the standards and ideals which embrace a group or a community
of people. In Webster’s Dictionary, ethics are defined as disciplined dealing with what
is good and bad or with moral duties and commitments. Ethics refers to good and
bad attributes, conducts, and intentions, in which case it is accompanied with adjectives
such as good and bad or nouns such as goodness and badness. Ethics is a branch of
philosophy analyzed as a norm-based science since it pertains to guiding norms of human
behavior, and from this aspect, it can be distinctively distinguished from mainstream
sciences like mathematics, or natural sciences like chemistry and physics (Holden, 2000).
It is nearly three decades that economists and ethics philosophers in the West
have revived the discourses which had been stopped during the blossoming era
of positivistic methodology. The product of this interaction led to an applied branch of
JKIC ethics called “business ethics”; the ultimate goal of this branch is to improve the moral
5,2 quality of decision making and performance at all business levels. Taking into account
the situation created in the early twenty-first century, what certainly seems logical is
having a global approach towards business ethics and seeking for it globally or on an
international scale. Business ethics is a kind of applied ethics which is largely diverse
in terms of attitudes and approaches like all other applied types of ethics (Martz and
132 Morgan, 2007).
KM and ethics
Rai (2011) in his study explained that competing values framework (CVF) does not
include scales for trust and an ethical workplace and concerning the important role of
ethics culture in KMP, CVF was revised by adding an aspect which indicates ethics
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culture and trust. Then, SECI model and its components are examined and the
similarities between both models are expressed. In the meantime, an integrative
model of CVF and SECI is also provided. Finally, the author has concluded that the
integration of both models provides methods by which one can understand how
organizational culture improves organizational knowledge development and
promotion.
Rezaiian and Ghazinoory (2010) studied the role of ethics in the tasks of KMP.
However, due to the simplicity and completeness of its aspects, the general pattern of
knowledge management has been used in this study. The result of the research indicates
that there is a significant relationship between ethical indicators and functional aspects
of the KMP. There is a correlation between such indicators as individual and collective
trust, honesty, ownership respect, support, empathy, commitment, accountability,
secrecy and care in authenticity in one hand and functional aspects of knowledge
management general pattern including creation, organization, sharing and utilization of
knowledge on the other hand.
However, other research in Malaysia showed that subjects like ownership respect, care
in authenticity, helping other people, honesty and commitment are pointed out and the
relationship between such ethical principles and each aspect of knowledge management is
clarified via regarding general patterns of knowledge management including creations,
organize, sharing and utilization of knowledge (Azmi, 2010).
In addition, Gholizadeh et al. (2005) examined the ratio of organizational culture
and knowledge conversion process in Mashhad Firdausi University according to
the SECI model. The results showed that there is a significant relationship between
organizational culture and internalization, externalization and combination while the
relationship with socialization is not significant.
Therefore, concerning the lack of relevant existing research, this paper has tried to
clarify the impact of ethics in all tasks of the KMP and the significant relationship
between them through a systematic approach. In this section, ethical principles are
extracted through examining the literature of the issue which includes 20 indicators
shown in Table I.
The objective of the present paper is to depict the relationship between ethics and the
KMP through analysis and investigation.
Based on aforementioned literature, research hypotheses are proposed as follows.
Main hypothesis:
H1. There is a positive and significant relationship between ethics and KMP.
Sub-hypotheses:
H1.1. There is a positive and significant relationship between ethics and
socialization.
H1.2. There is a positive and significant relationship between ethics and
externalization.
H1.3. There is a positive and significant relationship between ethics and
combination.
H1.4. There is a positive and significant relationship between ethics and
internalization.
4. Research methodology
To examine the relationship between ethical principles and KMP, needed data are
gathered by questionnaire. It consists of 28 items. KMP section consists of eight items and
ethical principles section has 20 items. Likert five-item scale is used in this questionnaire.
Empirical analysis
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Items Cronbach’s a
KMP 0.762
Organizational values and justice 0.871
Commitment and responsibility 0.853
Intellectual ownership and Trusteeship 0.790
Team working morale 0.712
Ethics 0.914 Table III.
Overall questionnaire 0.900 Questionnaire reliability
JKIC
Area Description Number of respondents % Cumulative (%)
5,2
Job title Expert 48 47 47
Supervisor 19 19 66
Manager 35 34 100
Education Under BS 12 12 12
136 Bachelors (BS) 64 63 75
Masters (MS) 26 25 100
Job experience Below five years 19 19 19
5-10 years 34 33 52
10-15 years 21 21 73
Above 15 years 28 27 100
Age Below 30 19 19 19
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0.24 F1 S 0.28
0.58 0.51
0.44 F2 0.42 E 0.36
0.44 Ethics 0.52 KMP
0.51 0.56
0.20 F3 C 0.46
0.72 0.39
–0.13
Figure 2.
Research structural model –0.05 F4 I 0.45
Table V shows all the overall fit indicators. Among the absolute fit indicators, x 2/df is
1.91, the GFI value of this model is also 0.94, root mean square residual (RMR) value is
0.039, and root mean square error of approximation (RMSEA) value is 0.069, all within an
acceptable range, as suggested by past scholars. Huang (2004) suggested that if the
RMSEA value is between 0.05 and 0.08, and x 2/df reach below three, they imply a good fit.
As far as incremental fit indicators are concerned, the adjusted goodness of fit index
(AGFI) value of this model is 0.92, normed fit index (NFI) value is 0.97, comparative fit
index (CFI) value is 0.95, and incremental fit index (IFI) value is 0.98, all the values
reach the standards suggested in literature. Among the GFI, the parsimonious normed
fit index (PNFI) value of this model is 0.654 and parsimonious comparative fit index
(PCFI) value is 0.706. They are both greater than 0.5, reaching the standards suggested
by previous scholars.
Hypotheses test. In the present model, H1 is defined as follows to test research main
hypothesis:
H1. There is a positive and significant relationship between ethics and KMP.
According to Figure 2, the standardized coefficient between ethics and KMP is 0.52,
and also t-value is 3.54, p , 0.001, reaching statistical significance. The results indicate
that H1 is confirmed.
Examining the
Fitness indicator Criteria Validation value Result
role of ethics
Absolute fit indicators
x 2/df ,4 1.91 Compliant
GFI .0.90 0.94 Compliant
RMR ,0.05 0.039 Compliant
RMSEA ,0.05 or 0.05-0.08 0.069 Compliant 137
Incremental fit indicators
AGFI .0.90 0.92 Compliant
NFI .0.90 0.97 Compliant
CFI .0.90 0.95 Compliant
IFI .0.90 0.98 Compliant
GFI Table V.
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In the next step, regression analysis was used to test research sub-hypotheses. To this
end, linear regression between ethical principles as independent variable and each aspect
of KMP as dependent variable are computed separately. However, ethical principles are
considered as average of ethical dimensions (F1-F4). Likewise, error level is 5 percent for
all relations. The results of regression analyses are shown from Table VI to IX.
Non-standardized
regression
coefficients Standard regression coefficients
Model B SE b t Sig. Table VI.
Regression coefficient
(Constant) 2.253 0.353 – 4.587 0.000 with socialization
Ethics 0.392 0.110 0.448 3.563 0.001 variable
Non-standardized
regression
coefficients Standard regression coefficients
Model B SE b t Sig. Table VII.
Regression coefficient
(Constant) 2.275 0.408 – 4.572 0.000 with externalization
Ethics 0.291 0.127 0.322 2.285 0.025 variable
Non-standardized
regression
coefficients Standard regression coefficients
Model B SE b t Sig. Table VIII.
Regression coefficient
(Constant) 1.659 0.460 – 3.603 0.001 with combination
Ethics 0.545 0.144 0.476 3.797 0.000 variable
JKIC By regression analysis and considering the fact that the significance level is less than
5,2 0.05 for regression coefficient with dependent variables namely socialization,
externalization and combination as well as positive rates of B and BETA for these
variables, one can conclude that H1.1, H1.2 and H1.3 are confirmed while H1.4 is
rejected since significance level is 0.165 for internalization variable.
138 5. Discussion
Research conceptual model and structural equation modeling showed that among the
dimensions of KMP, socialization, externalization and combination have direct and
significant relationship on ethics.
According to research findings, there is a positive and significant relationship between
ethics and KMP considering knowledge creation dimension. Another finding is that
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Non-standardized
regression
coefficients Standard regression coefficients
Table IX. Model B SE b t Sig.
Regression coefficient
with internalization (Constant) 2.738 0.441 – 4.201 0.000
variable Ethics 0.193 0.138 0.144 1.400 0.165
Therefore, documenting the experiences and knowledge of these people is particularly Examining the
important, and this type of documenting is recently on the way in this organization. In role of ethics
knowledge externalization, the role of ethical principles in encouraging employees to
reveal their knowledge is remarkable. Perhaps on this basis we can clarify a direct and
significant relationship between ethical principles and externalization. Since
externalization is harder than combination and in normal conditions people are less
inclined to express their knowledge, it seems that it is for the same reasons that in terms 139
of being affected by ethics, externalization has a lower status than combination.
Regarding internalization, which is the conversion of explicit knowledge to a new
implicit knowledge, there are some reasons for the lack of a significant relationship
between this dimension and ethical principles. For example, due to the special nature of
the studied industries, secrecy and confidentiality of data are more emphasized in this
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organization and internalization is addressed less than other activities of the KMP.
Hence, internalization is less impacted by ethical principles. It seems that internalization
has an internal aspect and is affected by the moods of the person while studied ethical
indicators are more socially oriented.
References
Akhavan, P. and Jafari, M. (2006), “Critical issues for knowledge management implementation at
a national level”, Journal of Information and Knowledge Management Systems, Vol. 36
No. 1, pp. 52-66.
Akhavan, P., Hosnavi, R. and Sanjaghi, M.E. (2009), “Identification of knowledge management
critical success factors in Iranian academic research centers”, Education, Business and
Society: Contemporary Middle Eastern, Vol. 2 No. 4, pp. 276-288.
JKIC Al-A’ali, M. (2008), “Computer ethics for the computer professional from an Islamic point of
view”, Journal of Information, Communication & Ethics in Society, Vol. 6 No. 1, pp. 28-45.
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Azmi, I.M. (2010), “Legal and ethical issues in knowledge management in Malaysia”, Journal of
Computer Law & Security Review, No. 26, pp. 61-71.
Bove, L.L. and Johnson, L.W. (2009), “Does ‘true’ personal or service loyalty last? A longitudinal
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140 Calof, J. and Smith, J.E. (2012), “Foresight impacts from around the world: a special issue”,
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Chua, A. (2002), “The influence of social interaction on knowledge creation”, Journal of
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Further reading
Bontis, N., Richards, D. and Serenko, A. (2011), “Improving service delivery investigating the role
of information sharing, job characteristics, and employee satisfaction”, The Learning
Organization, Vol. 18 No. 3, pp. 239-250.
Demori, D., Mansoory, H. and Taheri, M. (2009), “The domain of studying the relationship
between knowledge management and social capital in Islamic university (in terms of Yazd
University Faculties)”, Islamic University Quarterly, No. 41, pp. 23-32.
Renzl, B. (2006), “Trust in management and knowledge sharing: the mediating effects of
fear and knowledge documentation”, Journal of Management Science, Vol. 36 No. 3,
pp. 206-220.
Tseng, S.M. (2010), “The correlation between organizational culture and knowledge conversion
on corporate performance”, Journal of Knowledge Management, Vol. 14 No. 2, pp. 269-284.
Wing, S.C. and Chan, L.S. (2008), “Social network, social trust and shared goals in organizational
knowledge sharing department of finance and decision sciences, school of business”,
Journal of Information & Management, No. 45, pp. 458-465.
JKIC Appendix. Research questionnaire
5,2 Dear colleague
This questionnaire has been prepared for studying the status of knowledge management in your
organization. In developing the questionnaire, we attempted to consider factors such as
knowledge management processes and ethics. Thus, please specify your comments about each
item by marking in its respective row. We appreciate your effort.
142
Job title: Specialist Supervisor Manager Deputy
Name of Industry/institute:………………
In your organization….:
7) Knowledge is transferable
to employees through
verbal communication or 143
narrative story.
8) Knowledge is formed as
work instruction and
catalogue to improve the
level of employees’
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knowledge by proper
education.
If you have any comments about knowledge management in your organization,
please write them:
(continued)
23) Having exceptionable spirit
Examining the
by employees and role of ethics
managers is supported by
the organization.
organization.
If you have any comments about ethics in your organization, please write them.
1. Peyman Akhavan, Majid Ramezan, Jafar Yazdi Moghaddam, Gholamhossein Mehralian. 2014. Exploring
the relationship between ethics, knowledge creation and organizational performance. VINE 44:1, 42-58.
[Abstract] [Full Text] [PDF]
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