Week 7: Assignment 2

‘inventing new knowledge is not a specialized activity...it is a way of behaving, indeed a way
of being, in which everyone is a knowledge worker’ (Nonaka, 1991).
Following this line of thought, and with reference to relevant literature and theory, discuss your
company’s approach to strategic management of knowledge and organisational learning.
Evaluate its use of strategic frameworks and tools, including the importance of knowledge in
strategic development; strategic marketing; sustainability, competitive advantage; and managing
strategic corporate change.

Courses: Strategic Development Course Code: UU-MBA-717

University: Unicaf University (MW) Student No : R1709D3508116

Name: Almamy Saidykhan Tutor’s: Dr. Shilpha Jain

Date: 20200209

1
THE CONCEPT OF KNOWLEDGE MANAGEMENT AND ORGANIZATIONAL
LEARNING IN GAM ELECTRIC LIMITED.

2
TABLE OF CONTENTS

1.0 Strategic analysis……………………………………………………………………………4

1.2. Introduction ………………………………………………………………………………4

1.3. Knowledge creation and management ……………………………………………………4

1.4. Organization learning………………………………………………………………………6

2.0. Strategic frameworks and tools for knowledge management……………………………7

2.1. Strategic development………………………………………………………………………7

2.2 Strategic marketing………………………………………………………………………….8

2.3 Sustainability of business ………………………………………………………………….10

2.4 Competitive advantage……………………………………………………………………..10

2.5 Strategic corporate change………………………………………………………………...11

3.0 Conclusion…………………………………………………………………………………...12

References ………………………………………………………………………………………13

3
 1.0 Strategic analysis

1.1 Introduction

As proffer by Davenport & Prusak (2000), knowledge is defined as a “a fluid mix of

framed experience, values, contextual information, and expert insights that provides a frame
work for evaluating and incorporating new experience and information”. However, in today’s
competitive environment the aims of the organization are to surpass their competitors and attract
new customers to build an excellent competitive edge. Moreover, Knowledge has become one of
the powerful important tools and intangible asset for competitive advantage in the organization,
any organization without knowledge will always fail to perform it function.

Furthermore, as highlighted by. Grant, (1994), “knowledge has been suggested to be the most
important resource that contribute to the success of the firm”. In this case, knowledge is relevant
to the strategic management for better decision making in the company, it is through the use of
tacit and explicit knowledge that an organization can suit it environment.

This essay examines Nonaka idea of knowledge and highlight how it is applicable to the strategic
management of knowledge and organizational learning of Gam electric limited. The assignment
will focus on knowledge creation, organizational learning and examine the strategic frameworks
and tools for knowledge management such as important of knowledge in strategic development,
strategic marketing, business sustainability, competitive advantage and managing strategic
corporate change.

1.2 Knowledge creation

Organization cannot rely on their obsolete knowledge for competitive growth, therefore
new knowledge is need to be created for gam electric to perform better than is rivals. In addition,
Nonaka and Takeuchi (1995), suggested four mode of knowledge creation process called SECI
model. As Polanyi mention two types of knowledge which are tacit and explicit knowledge. The
SECI process of spiral model involves socialization, externalization, combination and
internalization. This knowledge conversion model will be use by Gam electric firm to convert
knowledge from tacit to explicit and from explicit back to tacit. The SECI model is shown below
in figure 1.

4
Figure1: SECI model of knowledge conversion

In the figure above, the first step in knowledge conversion process is socialization. This involves
the formation or production of new tacit knowledge in the form of interaction between
individual, tacit knowledge can be obtain and produce through simulation, monitoring during
work, discussion, trainers also can acquire it from their specialist (Nonaka, 1991). As indicated
by Nonaka et al.;(2000), Gam electric can gain tacit knowledge through communication with
stakeholders, because this knowledge is hard to copy and imitate so it can only be share when
there is an interaction between individual or group of people. For example, Gam electric can
obtain this whenever there is socialization the company have a meeting with the stakeholders
where people will point out their view about the topic that they are discussion and this will aid
the company to build it new product. However, the next model is the externalization, this
involves the change of tacit knowledge to explicit knowledge. In this model, tacit knowledge is

5
change in to explicit from individual to group echelon, this knowledge can be share through
visual language, expression of idea in to or image in words etc. (Nonaka & Takeuchi, 1995). In
this area Gam electric will embark on knowledge sharing which will convert or help and
individual to turnover his knowledge in to organizations knowledge which can be codified.
Furthermore, combination is the third stage of knowledge conversion, this process entails the
combination of explicit knowledge that create new explicit knowledge which is distributed
among organizational members. This knowledge is generated during organizations meeting,
email, dossier, reports presentation, minutes data from the market etc. (Nonaka & Takeuchi,
1995). The final stages in the knowledge conversion process is internalization. This occurs when
the explicit knowledge of the firm is converted in to novel tacit knowledge by a person. In this
process, a person absorbs organizational explicit knowledge and change it in to tacit knowledge
which can be put it in to task (Nonaka & Takeuchi, 1995). As indicated by Nonaka et al.; (2000),
internalization is acquired through conductions of workshops, reviewing and utilizing script,
about the work assign, moving from one job to another are framework for the knowledge
internalization etc. Internalization is always implemented by Gam electric, as they always
conduct work shop to upgrade their employee about product development to gain competitive
edge over the adversaries in the market. Meanwhile, the SECI model of knowledge is a cycle
guide Gam electric in knowledge conversion, it help the company to gain tacit knowledge and
convert that tacit knowledge in to explicit which help the company in different areas such as how
to the use of SWOT analysis to guide the company to achieved it short term and long-term
objective

1.3 Organizational learning

New skills and knowledge are created during organizational learning which widen the
firm capacity and realization (Garcia et al.; 2009). Some researcher argues that, organization
learning is define as the transformation of the knowledge of the firm which encourage the
understanding of ideas as a result of alteration of an enterprise (Argyris & Schon, 1998).
However, organizational learning can have an effect on the business surrounding both internally
and externally, in which an organization exist. During learning the explicit knowledge is
absorbed by the organization members which lead to the development of new product and this
explicit knowledge is gain in the form of knowledge transfer during the work, routines exercise,

6
etc. (Lava & Wenger, 1991; Jenkin, 2013). For example Gam electric train their employee to
acquire more knowledge in the area of engineering which can transform the company operation
in the area of energy, in this case, an Gam electric allow their workers to undergo learning which
in increase the value of the company production capacity an give the company a competitive
advantage. Some scholar like Cyer & March (1992), view organizational learning as knowledge
formation, knowledge keeping and the sharing of knowledge in addition, Scott, (2011, p. 1),
“view organizational learning as a multi-level process where members individually and
collectively acquire knowledge by acting together and reflecting together”. This learning can
help the company to achieved its long-term objective.
Learning involves applying information that have been collected to form knowledge
management statistical information and then using knowledge to ameliorate organization
(Giesecke & McNeil, 2004). That is why Gam electric will not leave any stone on turn, they will
motiving its staff to learn new things in the this dynamic business environment in which the life
span of the product is very short, however, corporations, that learn are more adaptable to the
business environment and can quickly adjust for any threat in order to neutralize compare to
their opponent companies (Day,1994; Slater and Narver, 1995).
Gam electric will allow all method of leaning to become the market leaders in the supply of
electricity in the Gambia. As highlighted by Cumming &Worley, (1997, p. 492), Organizational
learning assists the firm to innovate and apply knowledge to alter and promote the firm
effectiveness which entail absorption of knowledge, transferring knowledge and application of
knowledge. As stated by Morgan, (2000, p.1), company can achieve competitive advantage over
the have having more intangible asst and knowledge asset as compare traditional factor
production. According to Huber (1991, p.89). organizations learning occurs when the members
of the company absorb knowledge and utilize that knowledge for the advancement of the
company.
As indicated by Iles & Sutherland, (2001), organisations learning have strong cultures that
encourage creativity, and experimentation among people. They motivate team group to acquire
process and share information, nurture innovation and provide the freedom to try modern items,
to risk failure and to learn from mistakes. The culture of an organization has an impact on the
organizational learning process, this culture can e described as the values belief and assumption

7
that, the organizational team get in among themselves (Deshpande, and Webster,1989; Cameron
and Quinn,1999; Miron et al., 2004).
2.0 Strategic framework and tools for knowledge management

2.1 Strategic development

Organizations need to formulate their strategies for development and compete for the
market share with the competitors, but how will the firm compete, it need a knowledge to
formulate it strategy. Therefore, knowledge is a key stepping stone for all the company for better
strategic development. Gam electric will acquire a knowledge that will assist the company to
formulate it strategic development for the organization in order to attain it objective both in short
run and long-run.

However, Gam electric will embark on the knowledge recreation, and storing, which will support
the company strategic development. Moreover, organization learning will be required to help the
company develop it strategy to gain a competitive advantage in the business environment. This
will involve the implementation of the knowledge that are used to give Gam electric a
competitive advantage over the competitors in this industry. Since strategy is a tool that is
needed by the organization to achieved its objective, organizational learning must take place for
the implementation of better strategic development in Gam electric.

2.2 Strategic marketing

Gam electric will need knowledge in strategic marketing to position it selves in the
market, to properly planned it channel of distribution by knowing it target consumer and
segmentation of the market. As indicated by Kohlbacher, (2007, p.96), marketing knowledge
encompass both tacit and explicit knowledge which include informative and actions regarding
the marketing thinking and behavior of the company. This description consists of both explicit
and tacit knowledge concerning product, marketplace, rivalry, market process, strategy of
marketing and all other stakeholder that are connected to the firm. As indicated by Hanvanich et
al.; (2003, p.130), the knowledge of marketing center on three important post of marketing
process which include, customer relationship management (CRM), product development
management (PDM) and supply chain management (SCM). The knowledge of strategic
marketing will help Gam electric to study it channel of distribution, it potential customers and

8
the overall strategy that will be necessary for the company to become competitive as Sawhney
(2002, p.96), stated that “collaboration has become an established way of doing business with
suppliers, channel partners, and complementors” with a few exceptions, “working directly with
customers to co-create value remains a radical notions”. The knowledge will assist Gam electric
to revisited it marketing strategy co-create and construe proper marketing tactics for superior
positioning of company in the market.

As Kotler et al.; (2002, p.36-38), suggested that, a significant element of forming a blossoming
market is the capability of combining the consumer in to an important process, however,
collaboration contribute a key aspect of launching knowledge creation in the makerspace.
Moreover, some scholars such as Schlegemilch & Penz, (2002, p.12), argue that, large pattern of
knowledge is requiring to be design in marketing such as the knowledge on the consumers
choice and how to analyze consumers predicament.

Meanwhile, the knowledge of consumer behavior and the target consumers are important for the
marketing of the company product. Kohlbacher (2009), proffer, that, the knowledge management
in marketing assist the company to effectively and efficiently market Gam electric product,
especially in the launching of unique product or entering in to the current market. In marketing,
the basic principle of the marketing concept will be built on knowledge. By having knowledge
about the market and customers, market orientation, companies can take a right decision that is
based on this information (Hurley and Hult, 1998; Jaworski and Kohli, 1993; Kohli and
Jaworski, 1990).

9
 2.3 Sustainability of the business

According to Elkington (1997), the sustainability of the business depends on three

obelisk which are economic, environment and social obelisk, place them with the same degree of
importance (as cited in yang et al.; p.3). This obelisk is also called triple bottom line approaches.
Firm can innovate their product by devoting it in human and financial resources to ameliorate the
productivity of the applications of input to boost product, revamp the face of the business and to
degrade the adverse of environment on the firm ( Jimene & Lorente, 2001). The firm can
position them self-better in the market place to achieved a strategic objective through the use
financial, technological and the space of the institution for attaining a sustainability (Shrivastava
1995, p. 937). Some of the researcher stated that, Gam electric need to diversify their capability
toward the adaptation of knowledge base way of intensive (Parthriage et al. 2007). The decision-
making gear toward sustainability will be better when the stakeholders are better aware, of the
new items, knowledge across firm, management level etc.,

According to Wallace (2005), “sustainability needs multi-disciplinary collaboration and

innovative solutions, which are high dependent on a knowledgeable workforce, good
communication, and culture of care and innovation”.

2.4 Competitive advantage

A firm that mange its knowledge properly will achieve it objective both in the short run
and log-run. However, in other to maintain competitive advantage Gam electric limited will gain
from producing a superior product that will satisfy the consumer wants through the creation of
good marketing strategy which will help the company to identify current market, target
customers, it market segmentation, channel of distribution. These will support the company to
inflate its sales and increase it consumers than its competitors through the development of a
proper marketing channel. However, Gam electric will attain a competitive advantage through
investing in an intellectual capital, which include the human capital, structural capital and
customer capital. Since k11nowledge is a strategic resource for the organization, then gam
electric will exploit it resources to attain a sustainable competitive advantage. Furthermore, Long
and Vicker-Koch (1995), suggested that, firm competitive advantage over its competitors
emanate from the following areas, such as picking the knowledgeable worker, teaching,
encouraging, enforcing, culture, upgrading the company human capital will make the firm to

10
outperform better, than its competitors. In addition, Gam electric will react swiftly to the change
in the business environment and achievably connect their resources with their consumers and
client through storing the require knowledge for competitive advantage. Some of the intangible
asset include copy right, patent law, brand image trademark, culture, company value and
philosophy.

As indicated by Rahimli, (2012, p.40), Gam electric capability of generating, achieving, and
channeling of knowledge across the institution, will help them to surpass their competitors as
Gam electric will always be resilient in the business through the use of human capital as a
strategic tool for achieving a competitive advantage.

2.5 Strategic corporate change

Gam electric will use knowledge for corporate change, this will be needed for an
organization to attain a competitive advantage over the rival in a today’s competitive market.
Corporate is a process in which new knowledge are created and old knowledge are co-created to
enhance a competitive advantage. As the business environment is dynamic so also organizations
also need a change to balance with their environment.

Gam electric limited will gain from corporate change through identification of certain areas that
will give the company a competitive advantage, such areas may include increasing the
knowledge of the employee through training as a result of organizational learning, innovation of
new product that can attract more customer to gain competitive edge. However, human capital
development and structural change are the most important tools that gam electric will rely to
improve their performance.

Meanwhile, corporate change will help the organization in exchanging tacit and explicit
knowledge, which can make sharing, of knowledge easier and lead to competitive advantages,
however, the organization will bring talented work to improve their intellectual capital in the
company.

2.6 Conclusion

The use of knowledge as a strategic tool is one of the most valuable resources an
organization can have to obtain a competitive advantage. However, organization cannot expand

11
without having a knowledge that is useful to them in order to compete effectively in the
marketplace. The importance of knowledge of an organization cannot be quantifiable, however,
knowledge can be converted from tacit to explicit knowledge which is require for the
organizational survival. Moreover, organization can knowledge through learning. Learning will
help the firm to comprehend and acquire explicit knowledge that can be useful for the
organizational development, learning helps the company to acquire new things that where not
known before and the new knowledge can be used to counter the competitors in the market.

Furthermore, knowledge management is important in strategic management, it can help the

company to structure a better marketing strategy, which can help them to located the customers
in their target market, construct proper supply change for the marketing of their product. The
importance of knowledge management will help the company to compete effectively in the
knowledge economy for survival and growth.

12
Reference

Berraies, & Chaher, (2014). Knowledge Creation Process and Firms’ Innovation Performance:
Mediating Effect of Organizational Learning. International Journal of Human Resource Studies,
4(1), 204-222. http://dx.doi.org/10.5296/ijhrs.v4i1.5517
Huber, P. (1991). Organizational learning: The contributing processes and the literatures.
Organization Science 2(1): 88–115.
Ramírez, Morales, & Rojas (2011). Knowledge Creation, Organizational Learning and Their
Effects on Organizational Performance. Inzinerine Ekonomika-Engineering Economics, 22(3),
309-318. http://dx.doi.org/10.5755/j01.ee.22.3.521.

Odor, O. (2019). Literature review on organizational learning and learning organizations.

International Journal of information, Business and Management, 11(3), 281-295.

Tan, (2019). The key to organizational change: A review of organizational learning. Asia Pacific
Journal of advanced Business and Social Studies, 5(1),33-41.

King, R. (2009). Knowledge Management and Organizational Learning. Annals of Information

Systems 4, 3-12.

Kohlbacher, (2009). Strategic knowledge-base marketing. International Journal of knowledge

studies, 3(1/2), 154-175.

Morioka & Carvalho, (2017). Discussing sustainability in business context and in performance
disclosure: analysis of Brazilian case studies. Ges.prod, Sao Carlos,24(3), 514-525.

http://dx.doi.org/10.1590/0104-530X2665-16.
Yang et al.; (2015). Managing knowledge to promote sustainability in Austrian Transport
infrastructure projects. Sustainability, 7, 8132-8150.

13
14