CHAPTER 4 IMPERATIVES AND TRENDS OF KNOWLEDGE …shodhganga.inflibnet.ac.in/bitstream/10603/3675/10/10_chapter 4.pdf · Changing needs of customers 4.38 0.63 4.43 0.50 4.75 0.44 4.46

CHAPTER 4

IMPERATIVES AND TRENDS OF KNOWLEDGE MANAGEMENT

In recent years the concept of knowledge management has

undoubtedly become a major force in business thinking. Many large

organizations are embracing knowledge management and claiming

significant benefits by its use. Davenport and Prusak, (1998) and

Nonaka and Takeuchi, (1995) demonstrate with multiple examples

that many of the world's most successful organizations are those that

are best at managing their knowledge. Textile industry in India too

has seen major changes in the last decade.

From 1974 until the end of Uruguay Round, the textile trade was

governed by the Multifibre Arrangement (Choksey, 2005). This was a

framework for bilateral agreements or unilateral actions that established

quotas limiting imports into countries whose domestic industries were facing

serious damage from rapidly increasing imports.

Quotas were exceptions to the WTO principle of treating all trading

partners equally because these specified how much the importing country

was going to accept from individual exporting countries.

To remove these limitations the WTO’s Agreement on Textiles and

Clothing (ATC) took over MFA in 1995 under which it was decided to return

all the textile and clothing products to WTO rules over the next 10 years. By

1 January 2005, the textile sector was fully integrated into normal WTO

rules leading to the termination of ATC. This opened doors for Indian textile

industry for trade into international markets without any quota limitations.

The industry thus faces the challenge of competing with various Asian

countries especially China, Bangladesh, Sri Lanka and Vietnam (IMaCS,

June 2009) in the international market.

This chapter presents a broader understanding of major trends

and imperatives in textile industry of Punjab and various factors

responsible for these. The items 1,2,3,4 and 7 in the questionnaire

(annexure) are concerned with first objective of the study. Each item

has further sub headings which in total make 20 statements. These

have been measured on five point scale ranging from (5) ‘strongly

agree’, (4) ‘agree’, (3) ‘neither agree nor disagree’, (2) ‘disagree’ and (1)

‘strongly disagree’. All comparisons have been made with one way

ANOVA.

In the end the mean extent of agreement of different statements

in each category is tabulated category wise as well as industry wise.

The statements showing high level of agreement are taken to be the

trends of knowledge management in textile industry of Punjab.

4.1 CHANGES IN TEXTILE INDUSTRY RESPONSIBLE FOR

KNOWLEDGE ORIENTATION:

Table 4.1 presents one way ANOVA calculations of scores of changes

responsible for knowledge orientation recorded by three groups i.e. G1, G2

and G3.

Table 4.1

Changes responsible for knowledge orientation in different sized categories of

textile industry

Changes responsible for

knowledge orientation

G1 G2 G3 Overall

F-ratioMean SD Mean SD Mean SD Mean SD

Globalization 4.38 0.63 4.29 0.46 4.50 0.51 4.38 0.56 1.16

ICT 4.12 0.80 3.99 0.65 3.68 1.14 4.00 0.84 3.14**

Competition 4.56 0.56 4.37 0.49 5.00 0.00 4.58 0.53 3.29**

Changing needs of customers 4.38 0.63 4.43 0.50 4.75 0.44 4.46 0.58 1.34

Total 20.18 1.59 19.79 1.53 20.68 1.25 20.15 1.54 1.67

** Significant at 5%

As seen in table 4.1 increased competition seems to be the most

important change that has taken place in the textile industry as overall

mean value for this is highest (4.58). F value indicates that for competition

means are significantly different for G1, G2 and G3. Maximum mean score

for this variable is 5 in G3 category followed by G1 and G2 (mean scores are

4.56 and 4.37 respectively). Various units in G3 like JCT, Vardhman

Textiles, Oswal Group, Jindal Cotex, Nahar and Trident operate in domestic

as well as international markets. Therefore their brands face competition not

only from local garment manufacturers but also international brands

abroad. Focus on handling the competition has therefore become important

area of concern for these units.

As found during the study the major factor that has led to increase in

competition is termination of ATC. Units in textile manufacturing sector

have been facing tough competition in export market and for retailers it is

high domestic demand. With more and more international brands and

retailers looking at India as their next destination, the competition in the

domestic market has shot up significantly (Technopak Analysis, 2008). The

brands / retailers like Zara, Wal-mart, Tesco etc. have brought with them

superior technology and economies of scale across the supply chain, making

it imperative for the domestic players to tighten up their operations. For the

manufacturers it offers enormous market potential since the international

players look at sourcing from local players. In this context manufacturers’

need to align themselves as per the international players sourcing

requirements has become very important.

Apart from inter firm competition, a common threat that all

companies are facing is ever changing needs and preferences of customers.

It seems to be the second most important change in industry. As seen in

table 4.2, its mean score is only next to competition (overall mean score

4.46). F value indicates that there is no significant difference in the mean

score of G1, G2 and G3.

Unlike in 1991, when consumption was more on broader basic

requirements, it is now focused on lifestyle products (Technopak

Analysis, 2008). More importantly, there are shifts occurring in the

consumption patterns in our country. Demographic profile of Indians

shows the following (Source: India Consumer Trends Technopak

Analysis, 2008):

• India has predominantly young consumers: 72 percent of Indian

population constitutes of people below 39 years, with 32 percent

between 20-39 years having high consumption potential.

• With literacy rate to touch almost 90 percent by 2013 as compared to

the present 70 percent; with female literacy touching 83 percent from

present 69 percent, there is a huge market waiting.

• Dependency ratio is reducing with 13 million new people joining

the workforce every year.

It is therefore evident that the Indian consumer is ready for change,

demanding options and looking out for product that suits and matches their

needs and aspirations. As a result, Indian apparel market is moving towards

much deeper and wider segmentation based on consumer needs. Indian

apparel market can be broken up into men, women and kids, and within

each segment there are a number of sub segments including women’s wear,

casual wear, kids wear, school uniforms, inner wear, plus size clothing,

active wear / exercise wear / swimwear, youth fashion / college fashion etc.

The demand in each of these segments offers potential opportunities to grow

by satisfying consumer needs. This has been clearly reflected in respondents’

opinions during the study.

People at Cheema Spintex acknowledge candidly that trends of

customers define the direction of business. In Sheetal Group the carpets that

are exported are different in designs, colours and texture as compared to

those sold in Indian market due to different consumer preferences and taste.

So is the case with shawls at ESSMA, designs and patterns of brands like

Monte Carlo at Oswal, readymade garments and thermal wear at Neva and

Duke. At Malwa group (famous for brand Casa Blanca) various consultants

and agents are deputed overseas to look after the function of gathering

information regarding changing needs of customers. This information is

sorted out, relevant is stored and used further for business decision making.

In companies dealing in apparels and readymade garments (Sportking,

Bhandari Hosiery, Duke, and JCT etc), the questionnaires which are filled by

the customers on insistence from front line employees become the major

source of knowledge. All knowledge gathered through these questionnaires

proves very useful during decision making into various areas including

garment designing, new product development and improvements in existing

products

It is clear from table that globalization is rated as the third most

important change undergone by textile industry (overall mean score is

4.38). F value indicates that there is no significant difference in the

mean scores of three groups.

Globalization of business is now a reality so are global business

organizations (Hammer, 1997; Porter, 1997; Ries, 1997; Thurow, 1997

and Toffler, 1997). Growth and globalization have created both the

need and the opportunity to formally harness the vast and dispersed

experience of the firms (Ofek and Sarvary, 2001). Unlike Indian

economy, Indian textile sector experienced the globalization in the

year 2005 after the termination of agreement on textiles and clothing.

Globalization has facilitated the introduction of modern and efficient

manufacturing machineries and techniques in the Indian textile

sector. It has been observed that it is most important for the

companies which are either export oriented or deal with both domestic

as well as international markets. This includes Rana Polycot,

Bhandari Hosiery, JCT, Vardhman Textiles, Cheema Spintex, Trident,

OCM, Malwa Cotton, Chinnar Forgings(Sheetal Group) , Essma and

Jindal Cottex etc. These firms have to maintain knowledge not only at

local level but at the global levels without which survival becomes

difficult.

Advent of information and communication technology has been the

fourth most important drift. It has scored overall mean score of 4. F ratio in

table 4.1 indicates that means are significantly different for information and

communication technology. ICT is has been considered important factor by

G1 while other two groups do not give much significance to this variable.

This shows that most of the textile units are not techno savvy and use of IT

is limited. The studies indicate otherwise.

The use of information systems (IS) and technology to support

effective KM is widely accepted (Krogh, 1998; Newell et al., 2000; Alavi and

Leidner, 2001; Ibrahim and Nissen, 2005). Braganza, Hackney and

Tanudjojo (2007) reported an analysis of the theoretical foundations for the

creation, mobilization and diffusion of knowledge. This was augmented

through an in-depth case study conducted within Schlumberger which

explored the adoption of an intranet-based ICT Knowledge Management

system to support, strategically align and transfer these knowledge

resources – called InTouch. The findings identified 30 generic attributes that

are essential to the creation, mobilization and diffusion of organizational

knowledge. The formulation of a set of theoretical propositions is seen as key

to the development of an effective ICT knowledge-based management

infrastructure. The process of managing these systems was operationalized

through the adoption of a unique methodological approach incorporating the

role of technology as an enabler of KM practice. The case analysis provided

evidence that such systems can deliver significant benefits to the

organization.

4.2 STIMULANTS FOR KNOWLEDGE MANAGEMENT in

ORGANIZATIONS:

Unlike changes in the industry which pertain to the external

environment turbulence, stimulants are the compelling factors within

a firm which drive it towards knowledge management.

Table 4.2 shows that overall mean value is same (4.42) for cost

reduction and new product development making these two equally

important stimulants. F ratio indicates that means are significantly

different for cost reduction in three groups. Like competition, G3 has

given much emphasis to this variable (with maximum mean score 5)

unlike G2 and G1 (mean scores are 4.38 and 4.14 respectively).This

trend was obvious in major companies like Malwa Cotton, OWM, JCT,

Vardhman, Trident, OCM, Essma, Bhandari Hosiery and Shital

Group.

Cost cutting measures are relatively easier within the company

where internal environmental conditions are more under control as

compared to external measures. For example prices of cotton are

determined either globally or by cotton associations and can not be

challenged by the company. Cost-cutting avenues have been identified

in areas like reducing overhead expenses, labour, transportation, and

inventory, improving capacity utilization, to create economies of scale

and improve operating efficiency to increase margins.

With exports accounting for 35 percent (by value) of the total

market size, the Indian Textile and Clothing (T&C) industry has

significant dependence on export market (IMaCS analysis 2009). EU27

is the largest export market for Indian T&C products, with a share of

33 percent ( by value of the total T&C exports in 2007-08 ); UK alone

accounts for 7.5 percent of India’ s total T&C export value. US is the

second largest export market with a share of 21 percent by value of

total T&C exports in 2007-08. EU27, US and Japan are the major

import markets for T&C products in the world accounting for 46

percent of the world textile imports and 76 percent of world clothing

imports (in 2007). Recent economic slow down has left a significant

impact on the T&C market of these three large importers. India being

one of the major exporters of textile and clothing products to these

markets, the Indian T&C industry has also witnessed a down ward

impact.

Operating profit margin of the most of the spinning and garment

companies have dropped significantly from Q3FY08 to Q3FY09 (IMaCS

analysis, 2009).Net profit margin for the most of the companies of all

sectors declined significantly in Q3FY09 with made-ups and spinning

companies registering a loss. D/E ratio of most of the Spinning,

Weaving and Made-ups companies has increased significantly from

FY04 to FY08, indicating leveraged capacity expansion. Recent drop in

production has resulted in under utilization of capacities, inadequate

absorption of fixed costs and weak debt coverage indicators; the

interest coverage ratio for most of the companies of all sectors has

declined significantly in Q3FY09. Decline in production in the T&C

industry is estimated to have resulted in a job loss of 5 –6 lakh. These

are the major changes in environment leading to incorporation of

innovative measures for cost cutting textile industry.

Table 4.2

Stimulants for knowledge management in different sized categories of textile

industry

Stimulants for knowledge

management

G1 G2 G3 Overall


Reduce Cost 4.38 0.63 4.14 0.35 5.00 0.00 4.42 0.57 4.73***

New product development 4.54 0.50 4.14 1.37 4.50 0.51 4.42 0.86 1.92

Business transformation 2.87 0.81 2.49 0.68 3.25 0.90 2.82 0.83 4.11**

Total 20.18 1.59 19.79 1.53 20.68 1.25 20.15 1.54 1.67

*** Significant at 1%, ** Significant at 5%

As seen from the table 4.2 the mean score for new product

development is 4.42 with F ratio showing nearly consistent response

from three groups as there is no significant difference among the

mean scores of G1, G2 and G3. Many textile units have strong R & D

base and liberal budget for this. Aarti International, Vardhman

Textiles, Trident group, JCT, OCM, Sheetal Exports and Arisudana

have very conducive work environment and encourage their employees

to take risk and experiment.

Development of new product is one of the riskiest but most critical

strategies in any competitive industry. Many companies build

competitiveness and earn profits through this. Global competition in the

textile and apparel industry has become more intense, due to which firms

need to be innovative while reducing product cycle times and cutting costs.

New product development either radical or incremental has become the key

success factor of industry to face the fierce competition. With increasing

global competition and evolving consumerism it is slowly becoming a must

for textile manufacturer to be innovative (Technopak Analysis, 2008). Firms

need to explore innovation both in terms of processes, marketing and

products. Activities like R&D and designing should be treated as key success

factors and a pre-requisite rather than an afterthought. Apart from process

based innovations companies should not shy away from exploring new

business models in the context of the ever changing consumption space. In

this regard there are many apparel companies who have already realized the

importance of “business” innovation to “survive” in the increasingly

competitive market place and are looking to differentiate their product

offering across various levels. There are many examples of textile and

apparel companies in India which are looking to innovate e.g. Arvind Ltd.

(Product innovation) is planning to develop denim salwar kameez and,

maybe saris to expand in the rural market. RBR Garments (Product

innovation) producing 'novel' garments using varied fabrics and fibre like

minerale fibre, soya bean fibre etc. Levi's marketing innovation includes

selling Jeans on EMI scheme.

Business transformation has scored the minimum mean value of 2.82

(table 4.2) indicating that not many companies seem interested in second

order change. From the value of F ratio it can be inferred that means are

significantly different for variables business transformation. Unlike other two

categories business transformation has been considered slightly important

factor by G3 (with mean scores of 3.25, 2.87 and 2.49 for G3, G1 and G2

respectively).The reason behind this can be organizational structure. These

firms are relatively large in size, operate in domestic as well international

markets, have more international exposure and are run professionally as

compared to many other units which are family owned. These factors make

these firms more open to change as compared to others. In G1 only officials

at Shital Group expressed their interest in business transformation as they

were in the process of restructuring.

4.3. DOMINANT FORMS OF KNOWLEDGE

There are various forms of knowledge ranging from knowledge

required for carrying out day to day activities to expert’ knowledge .

Dominant forms of knowledge in every organization may vary

according to its need, vision and philosophy. Table 4.3 presents one

way ANOVA calculations on statements regarding dominant forms of

knowledge in selected units.

Table 4.3

Dominant forms of knowledge in different sized categories of textile industry

Dominant forms

of knowledge

G1 G2 G3 Overall


Know how 4.25 0.76 3.89 0.75 4.10 1.01 4.12 0.82 1.98

Know who 2.88 0.95 2.66 1.01 2.70 1.32 2.78 1.04 1.57

Know what 3.85 0.54 4.14 0.64 4.75 0.44 4.08 0.64 1.68

Know why 3.51 0.94 3.99 0.58 4.08 0.97 3.74 0.89 3.19**

Know whom 3.07 0.88 3.50 0.78 3.10 1.57 3.20 1.02 1.09

Know where 3.38 0.74 3.66 0.54 4.43 0.50 3.64 0.75 3.78**

Total 20.94 1.85 21.83 2.12 23.15 2.84 21.57 2.26 5.19***


Know-how is knowledge about how the elements of a system are

related to each other, and therefore resembles procedural or

architectural knowledge (Henderson and Clark, 1990). Know-what is

knowledge about what the elements of a system are, and resembles

declarative or component knowledge (Henderson and Clark, 1990).

Know-why, is not only knowledge about why the elements of a system

function together, but also why a firm operates in the way it does (Van den

Bosch and Wizk, 2000). Sanchez (1997) also elaborates that know-how,

know-why, and know-what forms of knowledge are related to state, process,

and purpose forms of knowledge in a system respectively. According to him,

know-how is knowledge about ‘how elements of a system are interrelated in

the current state of the system’ whereas know-why is knowledge about why

these parts are interrelated to produce its overall function.

Finally, Sanchez (1996) describes know-what as knowledge about

‘what courses of action are available to a firm’ and what its outcomes are

likely to be. Koontz (1964) adds that as management also involves managing

through and with other people and knowing who governs or possesses

certain elements of a system, however, know-who must be Included as one

of the basic building blocks. For example, know-who might refer to knowing

an R&D manager or knowing an employee who has knowledge about a

particular process (Van den Bosch and Wizk, 2000). Similarly, as managing

also concerns different parts of the firm and different geographical locations,

know where is another fundamental building block upon which eventually

managerial knowledge is built is.

Building on the previous example, know-where entails where the R&D

manager or the employee reside. Since management is also prosecuted at

different times, know-when constitutes the final basic building block. In the

example used, know-when is knowledge about when to consult the R&D

manager or the employee. From a broader perspective, know-when is also

related to the time dimension of strategy and strategic decision-making (Van

den Bosch and De Man, 1997).

Table 4.3 shows that overall mean value is maximum (4.12) for

know how followed by know what (4.08). As most of the units

undertaken during study are manufacturing units with huge

production plants, the procedural or know how form of knowledge is

most important. F value indicates uniform response from all

categories, there being no significant difference in the mean scores for

both forms of knowledge i.e know how and know what. Know who is

the least important form of knowledge with minimum mean score of

2.78. Know why and know where are third and fourth important

forms of knowledge . From the value of F ratio it can be inferred that

means are significantly different in G1, G2 and G3 for know why and

know where (overall mean scores for know why are 4.08, 3.99 and

3.51 for G3, G2 and G1 respectively whereas overall mean scores for

know where are 4.43, 3.66 and 3.38 for G3, G2 and G1 respectively.

Thus these variables are much more important in G3 as compared to

other groups.

As know why pertains to logic behind any action, importance of

this type of knowledge shows an open culture which is based upon

extensive training, open discussions, experimentation and pro change

attitude of the organization. As mentioned earlier too, the G3 firms are

bigger and professionally managed; therefore their knowledge

orientation is more than G1 and G2.

Know where pertains to specific knowledge centers or expertise

from where help could be obtained whenever required. It is clear from

discussion that relatively better management of G3 firms makes all

such locales clear to employees to save time and maximize

productivity.

4.4 MOST IMPORTANT AREAS OF KNOWLEDGE APPLICATION

There are certain areas of business in every organization where both

the extent of creation and application of knowledge are maximum. These

areas are also unique to every organization depending upon the need and

type of business involved.

Table 4.4 presents one way ANOVA calculations on statements

regarding most important areas of knowledge application.

Table 4.4

Most important areas of knowledge application in different sized categories of

textile industry

Most important areas of

knowledge application

G1 G2 G3 Overall


Innovation 4.38 0.74 3.86 1.00 4.25 0.84 4.21 0.87 1.16

CRM 4.54 0.64 4.43 0.50 4.50 0.51 4.50 0.58 0.98

R & D 4.46 0.50 4.43 0.73 3.75 1.32 4.33 0.80 2.11

e Commerce and intranet 3.47 0.93 3.17 0.93 3.85 1.25 3.45 1.01 3.01**

Total 20.22 1.91 19.30 2.64 19.35 3.17 19.80 2.41 2.61*

** Significant at 5%, * Significant at 10%

Table 4.4 shows that overall mean value is maximum (4.50) for

customer relationship management (CRM). It is clear from F ratio that there is

no significant difference in the mean scores of G1, G2 and G3. This

strengthens the fact that the customers are of utmost importance for most of

the companies

CRM involves attracting, developing and maintaining successful

customer relationships over time (Berry and Parsuraman, 1991). Customer

Relationship Management (CRM) is about managing customer knowledge to

better understand and serve them. It is an umbrella concept that places the

customer at the center of an organization.

Customer service is an important component of CRM; however CRM is

also concerned with coordinating customer relations across all business

functions, points of interaction, and audiences (Brown, 2000; Day, 2000).

CRM is an ICT-facilitated corporate strategy that puts the primary focus of

the company not on the corporate process, and not even on the production

of products and services, but on the customer. At the core of CRM is the

development of the learning relationship that engages customers in a two

way dialogues that is effective and efficient for both the customer and the

firm. Also it is vital when a company hopes to succeed in a business.

Customers provide valuable feedback regarding products which can be

captured and copied in product designing and manufacturing for further

improvements. Further providing customer related information along with

sharing the best practice information can have benefits for hard measures

such as customer retention, cost saving and market share as well as soft

measures like customer satisfaction, market leadership, and customer

loyalty.

In Sportking, Duke and Essma frontline employees are regularly

called and updated regarding CRM and asked for the feedback they have

received from customers during customer interaction as they are vital link

between the company and the customers.

Research and development is the back bone of textile industry. R&D

in textile sector includes research on new materials and textiles and apparel

products, advanced textiles and clothing production technologies, Innovative

design and evaluation technologies, enhanced industrial systems and

infrastructure, lab quality control tests and site inspection of textiles and

cloths etc. The textile and clothing industry has high-value added segments

where design, research and development (R&D) are important competitive

factors (Nordas, 2004). The high end of the fashion industry uses human

capital intensively in design and marketing. The same applies to market

segments such as sportswear where both design and material technology are

important. R&D is important in industrial textiles where, material

technology is an important competitive factor.

From the above table it can be seen that overall mean score for

Research and Development 4.33. F ratio specifies that there is no significant

difference in the mean score of G1, G2 and G3. It therefore is inferred that R

& D is the second most important area of knowledge management. This can

be correlated with innovation which is generally an outcome of R & D.

Companies likes Vardhman, Trident, Jindal Cotex, Sheetal group, Rana

Ploycot, JCT and Aarti International have strong in-house research base and

liberal budget for it where continuous improvement and innovation are key

focus areas.

Textile industry is a dynamic industry with strong emphasis on

continuous innovation. Hug Shirt by Cute Circuit is a beautiful example of

Product innovation in apparel (Technopak Analysis, 2008). Cute Circuit,

based in UK, is a Fashionable Technology company that creates design

excellence in the fields of Wearable Technology and Interaction Design. The

company has developed a shirt called The Hug Shirt™ - a shirt that makes

people send hugs over distance. It’s a smart textile product with sensors

embedded in the shirt that feel the strength of the touch, the skin warmth

and the heartbeat rate of the sender and actuators that recreate the

sensation of touch, warmth and emotion of the hug to the shirt of the distant

loved one. The Hug Shirt™ was nominated as one of the best Inventions of

2006 by Time Magazine.

As can be seen from the table above innovation is the third important

area of knowledge management in textile industry of Punjab (with overall

mean score of 4.33). F ratio shows that three groups show similar level of

agreement as there is no significant difference among the mean scores of G1,

G2 and G3.

Due to limited use of Information and Communication

Technology in majority of the firms, ecommerce and intranet are not

considered to be important (with low overall mean score of 3.45) area

as far as knowledge applications is concerned. From the value of F

ratio it can be inferred that means are significantly different for e

commerce and intranet in three categories. It is relatively high for

G3(mean score 3.85) as compared to G1 and G2, indicating that G3

units are more techno savvy and rely more on IT for business and

knowledge related activities.

Although e-commerce has immense value while doing online

transactions .E-commerce can be B2B (Business To Business) and

B2C (Business to Customer). B2C commerce is the direct selling to

consumers through Internet. While B2B marketplace can be defined

as neutral Internet-based intermediaries that focus on specific

business processes, host electronic marketplaces, and use various

market-making mechanisms to mediate transactions among

businesses. Intranet is the electronic link within the company which

facilitates fast reach of information, exchange of ideas and knowledge

sharing. In spite of the importance of these, e commerce and intranet

are not very popular among majority of units.

4.5 FOCAL POINTS OF KNOWLEDGE MANAGEMENT IN

ORGANIZATIONS

Focal points refer to knowledge centric activities in the organization

where knowledge is most commonly disseminated or produced.

Table 4.5 shows that the most preferred focal point of

knowledge is sharing knowledge and best practices as it has scored

maximum mean score (overall mean score is 4.54). Also F value

indicates that there is no considerable difference among mean scores

of three groups i.e. G1, G2 and G3.

Table 4.5

Most important focal points of knowledge management in different sized

categories of textile industry

Focal points of knowledge

management

G1 G2 G3 Overall


Sharing knowledge & best

practices4.62 0.49 4.29 0.70 4.75 0.44 4.54 0.58 1.67

Capturing/recording

experiences4.00 0.56 2.64 0.72 2.98 1.07 3.43 0.95 6.87***

R& D/ Innovation 4.09 0.91 3.73 0.96 3.98 1.23 3.97 0.99 0.58

Total 12.71 1.44 10.66 1.78 11.70 1.95 11.94 1.86 3.67**


Stenmark (2000) highlights the importance of knowledge

sharing by defining knowledge management as caring and sharing of

knowledge. It is through knowledge sharing that knowledge is

internalized.

Study of knowledge sharing, which is the means by which an

organization obtains access to its own and other organizations’

knowledge, has emerged as a key research area from a broad and

deep field of study on technology transfer and innovation, while the

activities used to share knowledge, such as document exchange,

presentations, job rotations, etc. are important, overcoming the

factors that can impede, complicate and even harm knowledge

internalization are equally important in determining the ultimate

results of a knowledge-sharing efforts (Cummings, 2003).

As all the companies taken in the study are the manufacturing

units, technical knowledge has been highly vital for all. In addition to

providing such knowledge to key persons concerned through training

sessions, lectures and seminars etc, it is essential for these key

persons to further transfer and share this knowledge with their peers

and subordinates to make optimum use of it. In addition to this

specific knowledge, there is general knowledge which is used in day to

day activities (both technical and others) in the companies. To

encourage externalization of knowledge as well as to share the tacit

knowledge companies most commonly resort to knowledge sharing

and best practices.

At Vardhman it is performed through regular team meetings among

executives and regular quality circle meetings among people working at the

shop floor. People who contribute ideas that are practically viable and

beneficial are rewarded. Lot of knowledge exchange is done through reading

material and discussions. Best practices are picked up from within and

outside the company and are set as benchmark to be matched and followed.

At Trident, the process of making online communities to share ideas,

problems and seek technical help is in rapid progress. They are in the

implementation phase of knowledge management programme and have

created an online knowledge repository which is available to different people

depending upon their job profiles and knowledge requirements.

At Jindal Cotex, the competency matrix model is followed in which

desired competencies in each job are identified and people on their

respective jobs are trained as per the competencies required. Large amount

of knowledge transfer and sharing takes place as per parameters defined in

this model.

It can be inferred from table above that the second important

knowledge domain is R&D and innovation with overall mean score of

3.97. F ratio shows that there is no significant difference among the

mean scores of G1, G2 and G3 leading to the conclusion that three

groups have almost uniform response for this.

Innovation is closely related to R and D. As discussed earlier

also, it is very important for a company to have strong research base

because this is a vital centre for knowledge capture and creation.

DeCarolis and Deeds (1999) found that new knowledge measured by R

&D expenditures exhibited the greatest effect on firm’s performance.

Highlighting the importance of research and innovation in a firm

Stewart (1991) sites the example of Merck for rewarding its scientists

for research that adds to general store of knowledge, even if the

research does not immediately result in a marketable product. At

Merck, heavy investment is done on R&D (almost half of what is spent

on materials and manufacturing) for the purpose of knowledge

creation. In textile it is knowledge centre for new product

development, quality/ improvements of raw material and

manufacturing related knowledge.

As is clear from table 4.2 capturing and recording experiences is

not much important focal point of knowledge as mean score for this

variable is low (overall mean score is 3.43). F value indicates that

means are significantly different for capturing and recording

experiences in all three groups (mean score 4, 2.64 and 2.98 for G1,

G2 and G3 respectively). It therefore can be inferred that this is a

preferred focal point in G1 only whereas the other categories have

more focus on knowledge sharing. The term capturing and recording

experiences pertains to prominent experiences of the organization

which are associated with some major success or failure. Either of

these experiences becomes a basis of learning in which the firm tends

to repeat the incidents that led to success and avoid the events that

led to failure. Both of the experiences become the knowledge banks

which can be retrieved and used later.

4.6 MEAN EXTENT OF AGREEMENT AND A COMPARISON OF G1, G2

AND G3.

Tables 4.6.1, 4.6.2 and 4.6.3 present the mean extent of agreement

regarding all twenty statements in G1, G2 and G3 respectively.

As per the table 4.7, the fourteen statements showing first level

of agreement for G1 are sharing knowledge and best practices,

competition, developing new products, customer relationship

management, research and development, globalization, changing

needs of customers, reduce cost, innovation, know - how, information

& communication technology, R and D/ innovation,

capturing/recording experiences and know- what.

Table 4.6.1

Mean extent of agreement on statements regarding imperatives and trends of

knowledge management in G1

Statements Mean SD Agreement

Sharing knowledge & best practices 4.62 0.49 I

Competition 4.56 0.56 I

Developing New Product 4.54 0.50 I

Customer relationship management 4.54 0.64 I

Research and development 4.46 0.50 I

Globalization 4.38 0.63 I

Changing needs of Customers 4.38 0.63 I

Reduce cost 4.38 0.63 I

Innovation 4.38 0.74 I

Know- how 4.25 0.76 I

Information & Communication Technology 4.12 0.80 I

R& D/ Innovation 4.09 0.91 I

Capturing/recording experiences 4.00 0.56 I

Know- what 3.85 0.54 I

Know- why 3.51 0.94 II

Ecommerce/intranet management 3.47 0.93 II

Know- where 3.38 0.74 II

Know- whom 3.07 0.88 II

Know- who 2.88 0.95 II

Enable business transformation 2.87 0.81 II

F-ratio 17.32*** (Significant at 1%), C.D. 0.7854

Rest of the statements show second level of agreement.

Table 4.6.2 present the mean extent of agreement regarding all

20 statements in G2. As seen in this table the statements with highest

level of agreement are changing needs of customers, customer

relationship management, research and development, competition,

globalization,

sharing knowledge and best practices, reduce cost ,developing new

products, know- what, information and communication technology,

know- why , know- how and innovation .

Table 4.6.2


knowledge management in G2









Developing New Products 4.14 1.37 I



Know- why 3.99 0.58 I

Know- how 3.89 0.75 I


R& D/ Innovation 3.73 0.96 II




Know- who 2.66 1.01 III

Capturing/recording experiences 2.64 0.72 III

Enable business transformation 2.49 0.68 III


The statements with second level of agreement are know- where,

know- whom and Ecommerce/intranet management. Rest of the

statements show minimum level of agreement.

Table 4.6.3 present the mean extent of agreement regarding all

20 statements in G3. As seen in this table the statements with highest

level of agreement are competition, reduce cost, changing needs of

customers, know- what, sharing knowledge and best practices,

globalization, developing new products and customer relationship

management.

Table 4.6.3

Mean extent of agreement on statements regarding imperatives and trends of knowledge

management in G3

Statement Mean SD Agreement










Innovation 4.25 0.84 II

Know- how 4.10 1.01 II


R& D/ Innovation 3.98 1.23 II

Ecommerce/intranet management 3.85 1.25 III

Research and development 3.75 1.32 III

Information & Communication Technology 3.68 1.14 III

Enable business transformation 3.25 0.90 IV

Know- whom 3.10 1.57 IV

Capturing/recording experiences 2.98 1.07 IV

Know- who 2.72 1.32 IV F-ratio 6.98*** (Significant at 1%), C.D. 0.5382

The statements with second level of agreement are know- where,

innovation, know- how, know- why and R and D/ innovation. Statements

with third level of agreement are Ecommerce/intranet management, R&D

and information & communication technology. Rest of the statements show

minimum extent of agreement.

From table 4.6.1, 4.6.2 and 4.6.3 a comparison regarding Imperatives

and trends of knowledge management in G1, G2 and G3 can be drawn as

under:

1. Ever increasing competition is most important changes among

G1 and G3 whereas changing needs of customers is most

important change for G2 responsible for knowledge orientation.

Second important change for G1 is globalization, whereas this is

the third factor in order of importance for G2 and G3. Changing

needs of customers is the third important change for G1. For G2

and G1, the second important change is increasing competition

and changing needs of customers respectively. All three groups

have rated advent of information technology as the fourth change

responsible for knowledge orientation of organizations.

2. New product development is most important stimulant for

knowledge in G1 whereas this is rated as second major stimulant

by G2 and G3. Reducing cost is the biggest knowledge stimulant

for G2 and G3 and for G1 this is the second important stimulant.

3. Know-how, know -what and know - why are the most

important forms of knowledge in all units (G1, G2 and G3). Know-

where is dominant form of knowledge in G2 and G3 and know -

whom, is considered important by G2 only.

4. Most important area of knowledge application in three groups

is customer relationship management. This is followed by research

and development and innovation.

5. Sharing knowledge and best practices is the most important

focal points of knowledge in all categories; G1, G2 and G3 followed

by research and development/innovation. Capturing/recording

experiences is third important factor existing only in G1.

4.7 AN OVERALL PICTURE

An overall picture of extent of agreement in all the units taken

together (irrespective of category) is presented in table 4.7.

Table 4.7


knowledge management in textile industry of Punjab











Know- how 4.12 0.82 I



R& D/ Innovation 3.97 0.99 I




Capturing/recording experiences 3.43 0.95 II


Enable business transformation 2.82 0.83 III

Know- who 2.78 1.04 III


Depending upon the extent of the agreement it can be inferred that

the variables with highest level of agreement show the current imperatives

and trends of knowledge management in textile industry of Punjab. The

following conclusion thus can be made:

1. Ever increasing competition followed by changing needs of customers

are the most important changes in textile industry responsible for

knowledge orientation of firms. Globalization is the third major

change in this context. Advent of information and communication

technology is also important albeit to lesser extent.

2. Reducing cost and new product development are two most and

equally important stimulants for knowledge management.

3. Know-how and know-what are the most important forms of knowledge

in textile units taken for study. Know-why and know-where are

moderately important.

4. Most important areas of knowledge application is customer

relationship management. This is followed by research and

development and innovation.

5. Sharing knowledge and best practices is the most important focal

points of knowledge, followed by research and

development/innovation.

CHAPTER 5

Documents

CHAPTER 4 IMPERATIVES AND TRENDS OF KNOWLEDGE …shodhganga.inflibnet.ac.in/bitstream/10603/3675/10/10_chapter 4.pdf · Changing needs of customers 4.38 0.63 4.43 0.50 4.75 0.44 4.46