Electron Markets (2009) 19:211–219 DOI 10.1007/s12525-009-0020-4 FOCUS THEME The impact of organizational culture on the use of ICT for knowledge management Carolina Lopez-Nicolas & Ángel L. Meroño-Cerdán Received: 3 March 2009 /Accepted: 15 September 2009 /Published online: 6 October 2009 # Institute of Information Management, University of St. Gallen 2009 Abstract The paper aims at analyzing the influence of must explicitly manage their intellectual resources and diverse organizational cultures on the use of ICT for strategic capabilities (Zack 1999). Knowledge Management (KM) is KM. By combining literature from different areas, namely defined as the explicit and systematic management of vital strategic KM, ICT for KM, organizational culture and knowledge—and its associated processes of creation, effectiveness, a theoretical model is proposed and tested in organization, diffusion, use and exploitation (Skyrme a sample of more than 300 firms in Spain. Results show that 2001). Businesses are increasingly finding themselves in a diverse organizational cultures (hierarchy, clan, adhocracy world characterized by globalization, turbulence and com- and market) are found to impact on the use of ICT for plexity, paralleled with an exponential advancement in strategic KM (personalization and codification) differently. information and communication technology (ICT), making Specifically, corporate cultures based on hierarchies and knowledge a key strategic resource. ICTs enable companies markets do not impact on the use of ICT for KM, while clan to obtain, process, stock and share information and culture favours the use of ICT for personalization strategy knowledge. Systems such as Intranets, allow people to and adhocracy positively influences technologies for per- collaborate and share their complementary knowledge sonalization and codification as well. These findings may (Bhatt et al. 2005). Collaborative technologies or eCollabo- have significant implications for researchers and managers. ration technologies bring geographically dispersed teams together for virtual meetings across great distances. This Keywords Organizational culture . ICT. Knowledge results in tremendous time and cost saving, greatly management decreased travel requirements, faster and better decision- making and improved communication flows throughout the JEL M15 . M14 organization, thus improving productivity, quality, and efficiency of group work (Cooper 2003). Both academics and practitioners highlight the role of eCollaboration ICTs Introduction in KM, although there is a need for a better understanding of the prerequisites of successful technological KM In the last decade, the importance of knowledge has been programs (Khalifa and Liu 2003). highlighted by both academics and practitioners and Literature defends that although technology is not the organizations are realizing that to remain competitive they main component of KM, it would be a naive attitude to implement KM without considering any technological Responsible editor: Kai Riemer support, because ICTs are critical in KM programs (Sher C. Lopez-Nicolas (*) : Á. L. Meroño-Cerdán and Lee 2004). On the one hand, few studies show Facultad de Economia Y Empresa, empirical evidence of the ICT support for KM, and a Departamento de Organizacion de Empresas Y Finanzas, research gap in this area exists (Moffett et al. 2002). On the Universidad de Murcia, other hand, most of these studies examined the role of ICT Campus de Espinardo, Espinardo, 30100 Murcia, Spain in isolation, overlooking its relationships with other KM e-mail: [email protected] success factors (Khalifa and Liu 2003). An appropriate 212 C. Lopez-Nicolas, Á.L. Meroño-Cerdán balance of diverse factors, like technology, process, human, creates intellectual capital, by converting individual knowl- organization, or culture, is argued to be instrumental to the edge into structural capital. continued success of any KM deployment (Tsui 2005). On the other hand, the personalization strategy focuses Moreover, understanding the relationship between ICT and on dialogue between individuals, not knowledge objects in organizational culture (OC) has challenged scholars from a a database, being based on dyadic knowledge sourcing. It is range of disciplines for nearly three decades (Gallivan and a person-to-person approach where knowledge is shared not Srite 2005) and there is a need for a cultural understanding only face-to-face, but also over the telephone, by e-mail and of ICT in the organization (Dewett and Jones 2001). via videoconferences, thus building networks of people. The paper aims at analyzing the influence of diverse The main assumption in this strategy is that knowledge is OCs, by building on the Competing Values Framework tacit and only contact among workers allows sharing (CVF) by Cameron and Quinn (1999), on the use of ICT for knowledge (Hansen et al. 1999). Companies using this strategic KM. The remaining sections are structured as approach consider trying to isolate knowledge from knowers follows. First, salient literature on the area of KM, OC and to be useless. Contact between knowledge demanders and ICT is reviewed. Second, the theoretical model is presented providers is essential to share tacit knowledge as this type of and hypotheses are posited. Then, the methodology for the knowledge cannot be codified (Polanyi 1966). empirical analysis is detailed. Fourth, main results from regression models are discussed. Finally, concluding remarks, Information technologies for KM limitations and future research lines are summarized. Literature argues that the amount of information and knowledge in a modern organization that needs to be captured, Literature review stored and shared, the geographic distribution of sources and consumers, and the dynamic evolution of information make Knowledge management the use of technology support not an option, but a necessity. Recently, Sambamurthy and Subramani (2005)alsodefend Nowadays, knowledge is the fundamental basis of compe- the critical role of ICTs in shaping organizational efforts for tition (Zack 1999) and, particularly tacit knowledge, can be knowledge creation, acquisition, integration, valuation, and a source of advantage because it is unique, imperfectly use. The influence of ICT on KM differs from one KM mobile, imperfectly imitable and non-substitutable. How- strategy to another, from codification to personalization ever, the mere act of processing knowledge itself does not (Hansen et al. 1999). guarantee strategic advantage; instead, knowledge has to be Organizations are looking to ICTs for solutions to their managed. In the current environment, firms that create new KM. Indeed, first approaches to manage knowledge were knowledge and apply it effectively and efficiently will be primarily focused on developing new applications of ICTs successful at creating competitive advantages. The set of to leverage codified knowledge (Zack 1999). Most KM strategic choices addressing knowledge creation and ex- projects, though, failed due to, among other reasons, an ploitation in an organization comprise the firm’sKM over-focus on technologies (Moffett et al. 2002). The ability strategy, which provides the firm with guidelines for of new technologies to support KM in a meaningful manner creating competitive advantage (Bierly and Daly 2002). depends on the types of knowledge (Flanagin 2002) and on Hansen et al. (1999) typology of KM strategies the KM strategy chosen. Besides, ICTs used to support KM distinguishes between personalization and codification of present some limitations, since they reduce the very knowledge. This classification is based on the distinction richness of knowledge when it is codified and the between tacit and explicit knowledge and the distinct use of management and sharing of tacit knowledge through ICT. The codification strategy focuses on codifying technologies is problematic (Flanagin 2002). knowledge using a ‘people-to-document’ approach: knowl- KM tools are technologies, broadly defined, which edge is extracted from the person who developed it, made enhance and enable knowledge generation, codification independent of that person and reused for various purposes. and transfer. Main technological tools are decision support Codification firms invest heavily in ICT. This strategy, technologies and eCollaboration systems. Decision support being based on published knowledge sourcing, allows technologies support a codification orientation because they many people to search for and retrieve codified knowledge are not intended to connect people, but to solve problems without having to contact the person who originally by making explicit information and knowledge available to developed it, since knowledge is stored in documents, decision makers. Codification strategy is also featured by manuals, databases, electronic repositories, and so on. That the use of some eCollaboration systems such as document opens up the possibility of achieving scale in knowledge repositories (manuals, documents, lessons learned, best reuse and thus of growing the business. Hence, codification practices, …), knowledge maps, workflow tools, and shared The impact of organizational culture on the use of ICT 213 databases. Other eCollaboration systems, such as video and control. The second dimension differentiates effective- conferencing, yellow pages, and discussion forums, make ness criteria that emphasize an internal orientation, integra- interactions possible, thus being personalization-oriented tion, and unity