Professional Documents
Culture Documents
Motivational Factors in in Uencing Knowledge Sharing Among Banks in Malaysia
Motivational Factors in in Uencing Knowledge Sharing Among Banks in Malaysia
net/publication/234833353
CITATIONS READS
39 2,330
4 authors, including:
SEE PROFILE
Some of the authors of this publication are also working on these related projects:
Assessing Socio-Psychological Behaviours of Muslim Students: A Study of Smartphone Addiction at Multimedia University View project
All content following this page was uploaded by Christine Nya-Ling Tan on 22 May 2014.
Tuan Hock Ng
Faculty of Business and Law, Multimedia University, Melaka, Malaysia
E-mail: thng@mmu.edu.my
Abstract
1. Introduction
Knowledge has been documented as the most significant building block in determining the status of
businesses of today ever since the steadily shift from a once upon hyped ‘information age’ to the
current and controversial ‘knowledge era’. In this day and age where individuals and organisations in
this competitive environment start to embrace the importance of knowledge, this crucial asset has
somehow indeed been viewed as a vital and valued asset unlike no other. Likewise, we cannot deny
that knowledge is a powerful and influential instrument that can make changes to the business world
today. Thereafter, knowledge has been considered as the main intangible ingredient in the melting pot
of organisational success that makes innovation potentially possible (Sánchez, Chaminade, & Olea,
2000).
Since the emergence of the well-known knowledge era that is radically changing the values in
organisations (Carlisle, 2001), it is therefore viewed that the long-term viability and prosperity of
organisations increasingly depend on its ability to leverage the concealed worth of this crucially
acquired intangible knowledge. In view of the fact that continuous change in market expectations and
the demands for new products introduced by knowledge-intensive firms had gradually replaced the
long ago commodities of the capital and labour-intensive firms (Ali & Ahmad, 2006), knowledge
sharing (KS) is unquestionably an important component for organisations alike especially to the
banking institutions in pursuing knowledge as an intangible and well sought-after asset.
In distinguishing the competitive and rapid changing environment, KS does play an important
role not only because it enables intellectual reuse but also the renewal of knowledge in banks that is
possessed by employees. Therefore, Barachini (2009) supported that it is imperative that these
organisations continuously motivate their employees to share valuable information so that their
intellectual capital (IC) can be leveraged. In recent years, numerous researchers and scholars had
placed a great deal of emphasis on the need to create a KS culture in organisations and to implement
business strategies that are more knowledge friendly. At the same time, organisations worldwide have
been trying to undertake initiatives in introducing effective KM by embedding KS practices in their
daily work process in achieving organisational performance (Ali & Ahmad, 2006).
For centuries, numerous banking services have grown to include financial services directed at
both businesses and individuals at large, indirectly influencing the economical practices, particularly in
Malaysia’s banking arena. Hence, implementing knowledge management (KM) initiatives is seen by
the banking industry as of vital importance to further spearhead the Malaysia’s economy, resulting in
banks to pick up the initiative in setting up KM teams within their organisation (Leng & Nasaruddin,
2007). With this in mind, banking institutions have realised that KS in KM should therefore not be
deserted nor neglected in helping to boost their survival in this ever-challenging competitive
environment.
This study aims to examine the impact of motivational factors, which includes both intrinsic
factors; trust, learning, behaviour; and extrinsic factors; organization culture, reward system,
information technology; on the knowledge sharing process; socialization, externalization, combination,
and internalization; among banks in Malaysia. The result of this study will serve as a guideline in
identifying the important factors in helping to increase employees’ tendencies to engage in knowledge
sharing practices amongst banks in Malaysia.
2. Literature Review
2.1. Knowledge and Knowledge Sharing (KS)
Ever since the awareness and recognition that knowledge is an indispensable asset needed by
organisations throughout, numerous renowned researchers, including Davenport & Prusak (1998) had
193 International Research Journal of Finance and Economics - Issue 44 (2010)
given birth to various definitions for the term ‘knowledge’. It is therefore asserted, according to
Davenport & Prusak (1998) that knowledge is a fluid mix of framed experience, values, contextual
information, and expert insight that provides a framework for evaluating and incorporating new
experiences and information.
In principle, knowledge can be differentiated into two types, which are explicit knowledge
(EK) and tacit knowledge (TK) (Nonaka, Toyama, & Konno, 2000). EK is knowledge that can be
processed by information systems, codified or recorded, archived and protected by an organisation
(Barth, 2000). Conversely, Choi & Lee (2003) have defined TK as informal, embedded in mental in
mental processes, was obtained through experience and work practices, and can be transferred by
observing and applying it.
In response to continuously sharing of knowledge in organisations, be it EK or TK, the
dominance of KS enters the spotlight. KS is a component of KM but it focuses less on technology in
organisations. There are many definitions by numerous researchers and philosophers on KS, listed in
Table 1. Rather, McInerney & Day (2007) explained KS as related to the relationships among co-
workers that promote information exchange and learning. KS is viewed not only as a neutral exchange
of information, but also affects working relationships, patterns of influence and alters how people
define their responsibilities (Willett, 2002). As a consequence, organisation that does not have formal
KS practices will fail to leverage its employees' IC for business innovation and growth (O'Neill &
Adya, 2007). On top of that, the key element in KS is not the underlying (original) knowledge, but
rather the extent to which the receiver acquires potentially useful knowledge and utilises this
knowledge in his or her own operation (Minbaeva, Pedersen, Bjoerkman, Fey, & Park, 2003).
Table 1: Taxonomies of KS
Author/s Definition
“Knowledge sharing can be defined as a social interaction culture, involving the
(Lin, Lee, & Wang, 2009) exchange of employee knowledge, experiences, and skills through the whole
department or organization.”
“Knowledge sharing can defined as the voluntary and social process to transfer,
(Harder, 2008)
absorb and reuse the existing knowledge in order to serve an organisational end.”
“It is a systematic process to create, acquire, synthesize, learn, share and use
knowledge and experience to achieve organisational goal. This knowledge can be
(Sethumadhavan, 2007)
form employees’ mind or stored in paper form in filing cabinets and/ or stored in
electronic form.”
(Bircham-Connolly, Corner, & “The process of capturing knowledge or moving it from a source unit to recipient
Bowden, 2005) unit.”
“It involves mutual exchanges among individuals, including both receiving and
sending knowledge. It was based on the sender-receiver relationship which
(Hooff & Weenen, 2004)
incorporates both communication of one’s knowledge to others as well as receiving
others’ knowledge.”
“The exchange of knowledge between at least two parties in a reciprocal process
(Willem, 2003)
allowing reshape and sense-making of the knowledge in new context.”
“Knowledge is defined as what we know: knowledge involves the mental processes
of comprehension, understanding and learning that go on in the mind and only in
(Wilson, 2002)
the mind, however much they involve interaction with the world outside the mind,
and interaction with others.”
“Knowledge is interpreted in terms of potential for action and distinguished in the
(Malhotra, 2001) following discussion from information in terms of its more immediate link with
performance.”
“Knowledge sharing is the process through which one unit is affected by the
(Linda Argote & Ingram, 2000) experience of another. In this respect, a unit can be an individual, a group or an
organisation.”
(Ardichvili, Page, & Wentling, 2003; L Argote, Gruenfeld, & Naquin, 2001; Mooradian, Renzl, &
Matzler, 2006). That is why this study is important to further enhance the understanding of the
respective bank’s management practitioners of the crucial need to identify and analyse the motivational
factors that influence KS in banks. In this research, KS is distinguished as the knowledge received by a
bank employee from his or her colleagues and knowledge sent by that employee to his or her
colleagues.
number one and primary tool needed to achieve competitive advantage (Christian, Lindgren, Nulden,
& Pessi, 2002). This is proven to be true especially with the support given by Bloodgood and Salisbury
(2001) that further perceive IT to assist the knowledge transfer strategy in leveraging knowledge
assets, knowledge creation strategy in creating knowledge network and therefore inevitably facilitate
communication between bank employees who share knowledge.
4. Research Methodology
The questionnaire method was used to collect the primary data. The questionnaire was divided into
three sections. Section A contains the background of the respondents, such as bank, gender, age,
education levels, positions, experiences, departments and others. Section B contains questions
requesting the respondents to state their agreement or disagreement on the issues of KS motivational
factors in their banks. Section C contains 12 statements about KS Process that is related to the
respondents’ organisation. In this study, the Likert Scale that was developed by Rensis Likert had been
chosen and applied.
The sample of banks in Malaysia was determined, namely Public Bank, Hong Leong Bank,
United Overseas Bank, CIMB Bank, EON Bank, OCBC Bank, Maybank, RHB Bank; and the
questionnaires were allocated evenly to bank employees from various levels such as managerial,
executives, supervisors and general staffs. The selection of the sample concerned was based on simple
random sampling. The bank employees’ came from diverse backgrounds, i.e. gender, age, education,
positions, experiences and others. Figure 1 shows the conceptual framework of this study.
International Research Journal of Finance and Economics - Issue 44 (2010) 196
Figure 1: Research Conceptual Framework
MFs
No. Means Standard Deviations
1. Trust 3.5248 0.76270
2. Learning 3.6359 0.64175
3. Behaviour 3.6769 0.78642
4. Organisation Culture 3.8137 0.68950
5. Reward System 3.6940 0.63979
6. Information Technology 3.8615 0.54977
KS Process
1. KS Process 3.7530 0.48638
Among the variables tested, Information Technology (IT) has the highest mean, which is 3.86
with standard deviation 0.550. This is because IT motivates KS due to its increasing importance in this
competitive world in capturing and storing crucial knowledge. Likewise workers can transfer their
knowledge using technology anytime, anywhere and anyhow (Ghani & Abdullah, 2008).
197 International Research Journal of Finance and Economics - Issue 44 (2010)
KS Process has the mean value of 3.75 and standard deviation of 0.486. With this, it is thus
proven that KS Process are critically dominant in influencing KS since it is accepted by management
practitioners because of its intuitive logic and clear delineation of knowledge types between TK and
EK (Rice & Rice, 2003).
In many statistical analyses, normality is often conveniently assumed without any empirical
evidence or test. Herewith, normality is critical in many statistical methods. That is why when this
assumption is violated, the interpretation and inference may not be reliable or valid (Park, 2008). Table
3 shows the result of the normality test on the MFs and KS Process. The significant p-value is less than
0.05 and it means that data distribution significantly varies from a normal distribution. Thus, the data is
not normally distributed.
Kolmogorov-Smirnov Shapiro-Wilk
Statistic df Significant Statistic df Significant
Trust 0.138 195 0.000 0.942 195 0.000
Learning 0.145 195 0.000 0.967 195 0.000
Behaviour 0.177 195 0.000 0.918 195 0.000
Organisation Culture 0.145 195 0.000 0.955 195 0.000
Reward System 0.145 195 0.000 0.954 195 0.000
Information Technology 0.129 195 0.000 0.971 195 0.000
KS Process 0.087 195 0.001 0.971 195 0.000
When the relationship is not linear, a non-parametric measure of correlation using Spearman’s
rank correlation (known also as Spearman’s rho) is used (Paulsen, 2005). Six hypotheses were
developed in this research and tested by using correlation test. Table 4 summarises the Spearman’s
correlation test for MFs and KS Process.
The results indicate that Spearman correlation r-value for Trust, Learning, Behaviour,
Organisational Culture, Reward System and Information Technology are significant at 0.01
respectively. Therefore, the test concludes that there is a significant correlation between the MFs and
KS Process. So, H1 to H6 are rejected.
International Research Journal of Finance and Economics - Issue 44 (2010) 198
In general, Regression analysis is a technique used for the modelling and analysis of numerical
data consisting of values of a dependent variable and of one or more independent variables.
Fundamentally, multiple regressions can establish that a set of independent variables explains a
proportion of the variance in a dependent variable at a significant level (through a significance test or
R2). The table below is the summary of the MLR test between MFs and KS Process.
Standard Coefficient
Variables t- Test Significant
Beta
Trust 0.077 2.135 0.034
Learning 0.214 5.222 0.001
Behaviour 0.008 0.243 0.808
Organisation Culture 0.109 2.663 0.008
Reward System 0.117 2.960 0.003
Information Technology 0.344 7.210 0.001
Table 5 shows the result of MLR analysis of H1, H2, H3, H4, H5 and H6. The analysis found
that five variables were significantly related to these hypotheses. The influencer variable was
Information Technology with the highest Beta value of 0.344 (P < 0.01) and highest t-value of 7.210.
The second influencer variable was Learning with the Beta value of 0.214 (P < 0.01) and t-value of
5.222. For Reward System, Organisation Culture and Trust, the Beta values were 0.117 (P < 0.01),
0.109 (P < 0.01) and 0.077 (P < 0.05); and the t-values were 2.960, 2.663 and 2.135. However,
Behaviour does not have any significant effect on KS Process.
Given that this study had been done by using email and post, only 50 sets of questionnaires
were posted to each of the targeted bank but not all the questionnaires were posted back, thus the
response from all the respondent banks did not reached the anticipated 100%. Besides that, time
constraint was also an issue as some respondents took weeks in sending back the questionnaires.
Nowadays, KS plays an important role for organisations in succeeding in this ever-increasing
competitive atmosphere. Consequently, for that reason all the organisational level in the banks should
take part in KS Process to enable their employees to better understand KS Process that is implemented
in each department. Future studies should therefore focus on the relationship between KS motivational
factors and KS Process in banks (preferably in other states), so that the effectiveness and efficiency in
motivating KS will be increased. It should therefore very much propose that the scope of this study be
extended to the whole of Peninsular Malaysia and possibly to East Malaysia (Sabah and Sarawak) in
better representing the banks within Malaysia, increasing the numbers of respondents and augmented
the reliability of the results. With this, it is expected that more critical factors in motivating KS will be
further discovered and analysed.
Consequently, it is also anticipated that this study will help in assisting academicians and
researchers alike especially in the ever-growing field of KM to better understand the MFs in
influencing KS, and also the KS Process in enhancing the effective sharing of vital knowledge among
various banking institutions.
References
[1] Al-Ammary, J.H., Fung, C.C., and Goulding, P, 2005. “Alignment of knowledge and IS/IT
strategies: A case for the banking sector in the Gulf Cooperation Countries (GCC)”, In:
International Conference on Knowledge Management (ICKM 2005), Kuala Lumpur, Malaysia
[2] Ali, H.M., and Ahmad, N.H, 2006. “Knowledge management in Malaysian banks: A new
paradigm”, Journal of Knowledge Management Practice 7
[3] Ardichvili, A., Page, V., and Wentling, T, 2003. “Motivation and barriers to participation in
virtual knowledge-sharing communities of practice”, Journal of Knowledge Management 7, pp.
64-77
[4] Argote, L., and Epple, D, 1990. “Learning curves in manufacturing”, Science 247, pp. 920-924
[5] Argote, L., Gruenfeld, D., and Naquin, C, 2001, “Group learning in organizations”, In: Groups
at work: Theory and research Turner ME (Ed.), pp. 369-411. Erlbaum, Mahwah, NJ
[6] Argote, L., and Ingram, P, 2000. “Knowledge transfer: A basis for competitive advantage in
firms”, Organizational Behavior and Human Decision Processes 82, pp. 150-169
[7] Barachini, F, 2009. “Cultural and social issues for knowledge sharing”, Journal of Knowledge
Management 13, pp. 98 - 110
[8] Barth, S, 2000. “Defining knowledge management”, URL
http://www.destinationcrm.com/Articles/CRM-News/Daily-News/Defining-Knowledge-
Management-46355.aspx
[9] Berstein, I.H., and Nunnally, J.C, 1994. “Psychometric theory”, McGraw-Hill.
[10] Bircham-Connolly, H., Corner, J., and Bowden, S, 2005. “An empirical study of the impact of
question structure on recipient attitude during knowledge sharing”, The Electronic Journal of
Knowledge Management 32, pp. 1-10
[11] Bloodgood, J.M., and Salisbury, W.D, 2001. “Understanding the influence of organisational
change: Strategies on information technology and KM strategies. Decision Support Systems 31,
55-70
[12] Carlisle, Y, 2001. “Strategic thinking and knowledge management”, In: Managing Knowledge:
An Essential Reader Little S, Quintas P & Ray T (Eds.), pp. 122-138. Sage Publications Ltd,
London
[13] Choi, B., and Lee, H, 2003. “An empirical investigation of KM styles and their effect on
corporate performance”, Information and Management 40, 403-417
International Research Journal of Finance and Economics - Issue 44 (2010) 200
[14] Christian, H., Lindgren, R., Nulden, U., and Pessi, K, 2002. “The evolution of knowledge
management systems needs to be managed”. Journal of Knowledge Management Practice
[15] Davenport, T.H., and Prusak, L, 1998. “Working knowledge: How organizations manage what
they know”, Harvard Business School Press, Boston.
[16] Ford, D.P, 2003. “Trust and knowledge management: The seeds of success”, In: Handbook on
Knowledge Management Holsapple CW (Ed.), pp. 553-576. Springer-Verlag, Berlin,
Heidelberg
[17] Galbraith, J.R, 1973. “Designing complete organizations”, Addison-Wesley, Reading, MA.
[18] Ghani, N.F.A., and Abdullah, M.S, 2008. “Groupware technology acceptance as a knowledge
sharing tool: A case study in UUM”, In: Proceedings of Knowledge Management International
Conference, Langkawi, Malaysia
[19] Govindarajan, V., and Gupta, A.K, 2000. “Knowledge management's social dimension:
Lessons from Nucor Steel”, Sloan Management Review 42, pp. 71-80
[20] Grayson, C., and O'Dell, C, 1998. “If only we knew what we know: Identification and transfer
of internal best practices”, Internal Best Practices 40, pp. 154-174
[21] Gummer, B, 1998. “Social relations in an organizational context: Social capital, real work, and
structural holes”, Journal Administration in Social Work 22, pp. 87-105
[22] Harder, M, 2008. “How do rewards and management styles influence the motivation to share
knowledge?” In: SMG Working Paper No. 6/2008
[23] Hooff, B.v.d., Weenen, and F.d.L.v, 2004. “Committed to share: Commitment and CMC use as
antecedents of knowledge sharing”, Knowledge and Process Management 11, pp. 13 - 24
[24] Kilmann, R.H, 1989. “Beyond the quick fix”, Jossey-Bass, San Francisco, CA.
[25] Leng, L.A., Nasaruddin, and F.H.M, 2007. “Application of knowledge management in
Malaysian banks - A preliminary study”, pp. 396-401
[26] Leonard-Barton, D, 1998. “Wellsprings of knowledge: building and sustaining the sources of
innovation”, Harvard Business Press.
[27] Liang, T.-P., Liu, C.-C., and Wu, C.-H, 2008. “Can social exchange theory explain individual
knowledge-sharing behavior? A meta-analysis”, In: ICIS 2008 Proceedings
[28] Lin, H.-F., Lee, and H.-S., Wang, D.W, 2009. “Evaluation of factors influencing knowledge
sharing based on a fuzzy AHP approach”, Journal of Information Science 36, pp. 25-44
[29] Malhotra, Y, 2001. “Knowledge management and business model innovation”, Idea Group Inc
(IGI).
[30] McInerney, C.R., and Day, R.E, 2007. “Trust and knowledge sharing in organisations: Theory
and practice”, In: Rethinking knowledge management: From knowledge objects to knowledge
processes Springer Berlin Heidelberg
[31] Minbaeva, D., Pedersen, T., Bjoerkman, I., Fey, C.F., and Park, H.J, 2003. “MNC knowledge
transfer, subsidiary absorptive capacity and HRM”, Journal of International Business Studies
34, pp. 586-599
[32] Mooradian, T., Renzl, B., and Matzler, K, 2006. “Who trusts? Personality, trust and knowledge
sharing”, Management Learning 37, pp. 523-540
[33] Nadler, D., and Tushman, M, 1998. “Strategic organization design: Concepts, tools &
processes”, Scott, Foresman, Glenview, IL.
[34] Nelson, R., and Rosenberg, N, 1993. “Technical innovation and national systems”, In: National
Innovation Systems Nelson R (Ed.). Oxford University Press, Oxford
[35] Nonaka, I., and Takeuchi, H, 1995. “The knowledge-creating company, How Japanese
companies create the dynamics of innovation”, Oxford University Press, New York, NY.
[36] Nonaka, I., Toyama, R., and Konno, N, 2000. “SECI, Ba and leadership: A unified model of
dynamic knowledge creation”, Long Range Planning 33, pp. 5-34
[37] O'Neill, B.S., and Adya, M, 2007. “Knowledge sharing and the psychological contract:
Managing knowledge workers across different stages of employment”, Journal of Managerial
Psychology 22, pp. 411-436
201 International Research Journal of Finance and Economics - Issue 44 (2010)
[38] Park, H.M, 2008. “Univariate analysis and normality test using SAS, Stata and SPSS”.
[39] Paulsen, K, 2005. “Correlation and regression”, URL
https://mywebspace.wisc.edu/kpaulsen/web/
[40] Pemberton, J.D., and Stonehouse, G.H, 2000. “Organisational learning and knowledge assets -
An essential partnership”, The Learning Organization 7, pp. 184-193
[41] Rice, B.S., and Rice, J.L, 2003. “The applicability of the SECI model to multi-organisational
endeavours: An integrative review”, International Journal of Organisational Behaviour 9, pp.
671-682
[42] Rolland, N., and Chauvel, D, 2000. “Knowledge transfer in strategic alliances”, In: Knowledge
Horizons: The Present and the Promise of Knowledge Management Despres C & Chauvel D
(Eds.), pp. 225-236. Buterworth Heinemann, Boston, MA
[43] Sánchez, P., Chaminade, C., and Olea, M, 2000. “Management of intangibles: An attempt to
build a theory”, Journal of Intellectual Capital 1, pp. 312-327
[44] Sethumadhavan, R, 2007. “Importance of knowledge sharing for organisations”.
[45] Sharrat, M., and Usoro, A, 2003. “Understanding knowledge-sharing in online communities of
practice”, Electronic Journal on Knowledge Management 1, pp. 187-196
[46] Stiglitz, J, 1999. “Scan globally, reinvent locally: Knowledge infrastructure and the localization
of knowledge”, In: Keynote address, First Global Development Network Conference, Bonn,
Germany
[47] Willem, A, 2003. “The role of organisation specific integration mechanisms in inter-unit
knowledge sharing”.
[48] Willett, C, 2002. “Knowledge sharing shifts the power paradigm”, URL
http://www.providersedge.com/docs/km_articles/Knowledge_Sharing_Shifts_the_Power_Parad
igm.pdf
[49] Wilson, T.D, 2002. “The nonsense of 'knowledge management”. Information Research 8
[50] Yang, C., Chen, and L.-C, 2007. “Can organizational knowledge capabilities affect knowledge
sharing behavior?”, Journal of Information Science 33, pp. 95-109