Journal article · 2014

Influence of cultural factors on knowledge sharing in medium-sized enterprises within transition economies

Narasimha Rao VajjhalaiD & Timothy Baghurst

International Journal of Knowledge Management Studies, 5(3/4), pp. 304–321 · Published

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Summary

What question does this paper answer?

How do cultural factors influence employees’ perceptions of knowledge-sharing initiatives in medium-sized enterprises in transition economies such as Albania?

What did the study find?

Interviews with 20 managers from ten medium-sized Albanian enterprises produced six themes showing that national and organizational culture shape employee participation in knowledge sharing. 85% said Albanian national culture influences employee behavior, 80% said communism had a negative influence, 70% cited lack of trust as a key barrier, and 90% said top management support is essential.

Why does it matter?

Medium-sized firms in transition economies often adopt generic, Western-developed knowledge-sharing models without considering culture. The authors advise Albanian SME leaders to account for national culture, build a supportive organizational culture led by top management, introduce incentives and training, address fears and clustering, and adapt information systems to national and organizational cultural requirements rather than buying generic knowledge management systems.

Key findings

  1. The study interviewed 20 managers from ten medium-sized enterprises in Albania, a transition economy, across five sectors (ICT, food processing, banking and insurance, construction and tourism) that represent 72% of Albanian SMEs.
  2. Seventeen of the 20 Albanian managers (85%) said national culture influences employee knowledge-sharing behavior, and 16 (80%) said communism had a negative influence on Albanian culture.
  3. Fourteen of the 20 Albanian managers (70%) identified lack of trust as a key cultural barrier to knowledge sharing, and 12 (60%) said most Albanians hesitate to share knowledge.
  4. Eighteen of the 20 managers (90%) said top management support is essential for successful knowledge-sharing activities in Albanian medium-sized enterprises, and 16 (80%) highlighted the role of organizational culture.
  5. Nineteen of the 20 managers (95%) believed reward systems would motivate employees to take part in knowledge sharing, with 11 (55%) favoring non-monetary incentives such as recognition and career progression.
  6. Nine of the 20 managers (45%) reported perceived risks of knowledge sharing, chiefly fear of losing one’s job position, and 14 (70%) had observed age-based clustering among employees.
  7. Fourteen of the 20 managers (70%) viewed knowledge as organizational rather than individual property, and 13 (65%) said their firms lacked or underused information systems for knowledge sharing.

Source: Vajjhala & Baghurst (2014), International Journal of Knowledge Management Studies, 5(3/4), pp. 304–321.

Study at a glance

Design and results of Influence of cultural factors on knowledge sharing in medium-sized enterprises within transition economies
Research questionHow do cultural factors influence employees’ perceptions of knowledge-sharing initiatives in medium-sized enterprises in transition economies?
DesignQualitative, multisite, exploratory case study with 27 open-ended interview questions refined through a pilot with five Albanian employees.
Sample20 mid- or top-level managers from ten medium-sized enterprises in Albania, two firms in each of five sectors: ICT, food processing, banking and insurance, construction and tourism.
MethodsAudio-recorded interviews (148 pages of transcripts) plus documents and field notes, coded in NVivo 9.0 following Creswell’s steps until six themes emerged.
Main resultSix themes: national culture, organizational culture, factors driving participation, perceived risks, knowledge as organizational property, and information systems for knowledge sharing.
ImplicationLeaders of Albanian SMEs should consider national and organizational culture before implementing knowledge-sharing initiatives and systems.
CitationVajjhala & Baghurst (2014)

Abstract

Knowledge sharing is subject to organisational and national cultural influences, but medium-sized firms often implement general knowledge-sharing models without considering cultural factors. The purpose of this study was to investigate the influence of cultural factors on knowledge-sharing activities in medium-sized enterprises in transition economies. The study was driven by the central research question: How do cultural factors influence employees’ perceptions of knowledge-sharing initiatives in medium-sized enterprises in transition economies? Qualitative in-depth interviews were conducted with 20 managers working in ten medium-sized enterprises in Albania, which is a transition economy. Six themes revealed the influence of cultural factors on employees’ perceptions of knowledge-sharing initiatives in medium-sized enterprises in transition economies. Specifically, national culture and organisational culture influence employee behaviour and participation in knowledge-sharing activities. Thus, it is critical organisational leaders of medium-sized firms in Albania consider the influence of these factors before implementing knowledge-sharing activities in firms.

Abstract as published in International Journal of Knowledge Management Studies.

Keywords: knowledge; knowledge sharing; knowledge management; transition economies; national culture; organisational culture; small- and medium-sized enterprises; SMEs

Key terms

Knowledge sharing
The paper defines it as a process of capturing, organising and distributing knowledge gained from others or through years of work and personal experience.
Transition economy
A country gradually moving from a centralised command economy toward a free market economy, such as those in Central and Eastern Europe, the former Soviet Union and China.
Medium-sized enterprise
A firm in the medium size band of SMEs, identified in this study using the European Commission’s criteria.

Limitations

  • Only five major economic sectors of the Albanian economy were included, so some findings might not apply to other sectors.
  • The study should be replicated in another transition economy in Central or Eastern Europe.
  • The study covered medium-sized firms only and should be extended to large firms in Albania.
  • Future studies could add to understanding of the influence of communism on inter-cultural communication and knowledge sharing.

How to cite

Vajjhala, N. R., & Baghurst, T. (2014). Influence of cultural factors on knowledge sharing in medium-sized enterprises within transition economies. International Journal of Knowledge Management Studies, 5(3/4), 304–321. https://www.inderscience.com/jhome.php?jcode=ijkms

BibTeX
@article{vajjhala2014cultural,
  title = {Influence of cultural factors on knowledge sharing in medium-sized enterprises within transition economies},
  author = {Vajjhala, Narasimha Rao and Baghurst, Timothy},
  journal = {International Journal of Knowledge Management Studies},
  volume = {5},
  number = {3/4},
  pages = {304--321},
  year = {2014},
  publisher = {Inderscience},
  url = {https://www.inderscience.com/jhome.php?jcode=ijkms}
}
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