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Abstract Purpose The purpose of this paper is to provide a new institutional perspective of knowledge Management technology adoption through an empirical study of a knowledge intensive rm. Design/methodology/approach The research involved collection of qualitative data about knowledge management practices. The analysis was carried out over a six month period by means of ethnographic research and a series of interviews. It focused mainly on the personnel involved in Knowledge Management initiatives within two information technology units of a telecommunication rm. Findings This article proposes a new institutional perspective of knowledge management as an alternative of the instrumental point of view. The authors argue that knowledge management initiatives are better understood if considered as rational myths instead of rational choices. Research limitations/implications The paper has some limitations. First, the research is based on a single case study; secondly, the authors acknowledge the difculty in having full access to decision-making rooms or corridors of power where institutional pressure is exerted. To improve the theoretical framework and the methodological approach, both qualitative and quantitative analyses are recommended. Originality/value Why do organizations, even in the face of the poor results produced by knowledge management initiatives, continue to invest nancial and organizational resources in knowledge management related technologies? This article proposes that this apparently irrational behaviour can be explained when evaluating knowledge management initiatives, rather than in their instrumental value, as symbolic means to legitimate the organization in an environment where the management of knowledge is said to be a core feature of modern organizations. Keywords Knowledge management, Organizational analysis, Communication technologies, Technology led strategy Paper type Case study
Carlo Rizzi, Diego Ponte and Matteo Bonifacio are all based at the Department of Organizations Studies at the Faculty of Economics, University of Trento, Trento, Italy.
Introduction
During the last few decades a growing number of contributions in the eld of knowledge management (thereafter KM) have put forward a series of doubts and critiques about the added value and the effectiveness of KM technologies and solutions (Ruggles, 1998). From a practical perspective, empirical evidence shows that KM initiatives and systems are often deserted by users (Andriessen et al., 2003; Desouza, 2003; Newell et al., 2001; Walsham, 2001). On the other hand, what is striking is the fact that organizations, even when facing disappointing results and dissatisfaction with these tools (Rigby, 2001; Rigby and Bilodeau, 2005) are continuing to invest a signicant amount of money and effort in the implementation of ICT based KM applications (Rigby and Bilodeau, 2007). When facing the apparent contradiction between poor results and increasing organizational efforts to implement KM initiatives, one could argue that organizations are irrational as they are subject to what some authors have called irrational escalation (Staw, 1997). In fact, from
DOI 10.1108/13673270910971842
VOL. 13 NO. 4 2009, pp. 75-85, Q Emerald Group Publishing Limited, ISSN 1367-3270
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a rational perspective, one would suggest that, instead of continuing wasting energy and resources in a failing course of action, managers should either change their implementation strategies or stop them completely. Another way to see this paradox without calling for some presumed irrationality is to challenge the main assumption surrounding both the KM supporters and its doubters. This assumption states that KM initiatives should be evaluated in their instrumental value (KM applications are tools to manage knowledge). An alternative hypothesis is to consider KM initiatives for their symbolic value; namely, as initiatives that give some meaning to the role of the organization and its members in the wider social context. This assumption shift, coherent with a New Institutional perspective, allows reconsidering the adoption of KM applications as a way to legitimate both the organizational goals and the organization itself in an environment where the management of knowledge is said to be a core feature of modern organizations. This environment is dened as Knowledge society and populated by Knowledge workers (thereafter KWs) (Drucker, 1993) and Knowledge intensive companies (thereafter KICs) (Nonaka and Takeuchi, 1995). Organizations seek such legitimacy in order to gain access to resources or increase their credibility and respectability with various stake holders. The paper is organized as follows: the next section briey outline the new institutional approach and its interpretation of technology adoption and utilization. It further depicts the research hypotheses about a possible new institutional reading of KM tools and initiatives. Then it introduces the case study where the research hypotheses were explored. Finally, the last section briey discusses the ndings of the case study and concludes this work addressing some limitations and future work.
The formal structure as a rational myth. The structure of the organization, rather than being a means to rationally pursue organizational objectives, is the result of institutionalized rules, norms and values. These act as highly rationalised myths for the rm and for society in general, and as pre-designed behavioural patterns (Czarniawska and Joerges, 1990). In this sense, the choice of a particular structure is not made and evaluated on the base of a supposed technical functionality, but rather on the base of its conformity to rational myths and fashions. Such conformity produces social legitimacy
while constraining the set of available organizational options (Selznick, 1996; Jepperson, 1991; Meyer and Scott, 1983; Blau and Scott, 1962).
B
The decoupling as a means to avoid conict. If on the one hand the formal structure is adopted to gain social legitimacy, on the other hand, work may need to be carried out according to models that do not conform to the rational myth. To manage this inconsistency, the organization needs to establish loosely coupled relationships between the formal structure and its technical activities as well as between different organizational units. This slack reduces the risk of establishing working activities in ways that may be counterproductive or unacceptable; on the other hand, it avoids conicts related to the possibility of evaluating or comparing the technical performances between different units. The logic of trust and the principle of benevolent inspection to preserve decoupling. Within the institutionalized organization, the controls, inspections and evaluations of the operative activities are reduced to a minimum to avoid the emergence of contradictions and inconsistencies. Social institutional pressures lead to isomorphism. Rational myths and values are not just a product of the organization, but are rather generated by the wider social environment. To be legitimate, the organization tries to conform to these myths by emulating those organizations that are generally considered more legitimate (Dowling and Pfeffer, 1975). As a consequence, within the same institutional context, organizations tend to become more similar rather than differentiating themselves.
both inuence organizational choices by proposing legitimate technologies and act as a vehicle, through technology, to legitimate behavioural and value systems. In this sense, a researcher would observe isomorphic processes at the technological level. As such, technology has been recognized as subject to isomorphic processes (Beck and Walgenbach, 2005; Currie and Suhomlinova, 2006).
This study, additionally takes into consideration the increasingly symbolic value expressed by technology in the modern era, exploring in more depth the idea that the use of technology can be fruitfully analyzed in terms of institutional rather than instrumental dynamics. In particular, it focuses on one of the most celebrated technological fashions, that of knowledge management (KM) investigating the following research hypotheses:
B
KM technologies, as part of a formal structure, can be seen as a celebration of the organizational identity as a Knowledge Intensive Company (KIC). KM technologies are vehicles through which these myths are imported from the outside as a means to legitimate the organization in a wider knowledge society.
To explore such hypotheses in the context of a KIC the authors observe that:
B
The formal knowledge structure of the KIC is embedded in KM technologies in addition to those structures that are externally conveyed by various institutional networks. These structures are supposedly rational as they are imbued with instrumental values such as performance, efcacy or efciency. On the other hand, these structures and, consequently, technologies, are institutional myths as they are decoupled from the way in which people actually operate. Decoupling exists to avoid a conict between legitimate and actual behaviours and such an existence is possible thanks to a logic of benevolent inspection. In this sense, the authors observe that these technologies are chosen, changed, and updated regardless of the evaluation of their performance. Moreover, different and overlapping solutions may coexist. Further, KM technologies and solutions should be subject to isomorphic dynamics as an organization tends to adopt KM technologies and solutions which are already used and recommended by other organizations and professional networks. This is because use of new technology becomes a marker of their legitimacy regardless of their proven performance or applicability in the specic organizational context.
The conrmation of these hypotheses would lead us to conclude that analyzing KM technologies in terms of their instrumental value is like judging fashion clothes for their capacity to keep warm; if their role is symbolic, issues such as efciency or efcacy matter only as long as they are part of the myth. In this sense, the adoption of KM technologies represents a rational myth rather than a rational choice. The next paragraph introduces the case study under analysis. The analysis was carried out over a six month period by means of ethnographic research and a series of interviews. It focused mainly on the personnel involved in KM initiatives within two information technology units of a telecommunication rm: X-TEL.
This paper questions why organizations continue to invest in KM technologies and solutions despite the fact that results seem to be quite disappointing.
a series of organizational and technological interventions has been put in place, including those aimed at improving the management of existing knowledge resources. For an observer interested in KM related issues, the extensive and continuous effort that the company has put into the adoption of KM solutions before and after the acquisition of BETA is of particular interest. Without going into detail, the company, during the last few years has launched a number of KM initiatives and projects that adopt different approaches to KM and that were put forward by different units and groups. These initiatives cover the full range of KM related technologies, going from more or less standardized knowledge portals (such as the standardized SAP[2] based knowledge platform US or the more anarchic intranet of sites named KFED), to collaborative technologies for group sharing (based on Microsoft Sharepoint[3]), to standard personal knowledge suites such as the so called EAGLE (a suite of personal KM tools including Microsoft Ofce) or KEEx (a peer to peer KM solution based on Semantic Web technologies). Besides technicalities, it is worth underlining the magnitude, heterogeneity and extensiveness of these efforts that involve a wide range of users and units, and imply the use of many resources. These resources are not just nancial: they are also organizational in the broader sense, as these solutions are extensively debated in informal and formal discussions. These debates often lead to the launch and management of different projects that involve a considerable number of employees and consultants as well as many meetings. From this perspective, X-TEL considers itself explicitly and de facto an exemplary knowledge intensive company (KIC) that views its employees as knowledge workers (KWs), and its competitive environment increasingly in terms of a knowledge society.
federates various intranet sites, or peer to peer solutions such as KEEx. In evolutionary terms, the centralized US has been proposed in conjunction with the arrival of the new ownership. The new system aimed at replacing the previous distributed KFED portal. Nonetheless the migration of KFED into US is still under way, and the two solutions still coexist and are managed by two different units: IT Systems (thereafter ITS) manages KFED while Shared Tech Services (thereafter STS) manages US. In this context, KM technologies incorporate the philosophy of the envisioned knowledge structure (centralized or distributed), as this structure incorporates elements of the broader organizational structure (corporate versus holding). To some extent, KM technologies are part or expression of the formal KM structure which is part of the overall formal structure of the company. Such an interwoven nature of the formal structure and related KM technology in X-TEL will be referred to as the X-TEL KM techno-structure.
In a sense KM technologies should not be evaluated to the extent they enable a better management of knowledge, but rather on the basis of their capacity to legitimate the organization to work effectively in a wider social milieu that expects respectable and reliable organizations to show their willingness to manage knowledge properly.
At a third level, it is worth noticing a more profound type of decoupling, which involves the single organizational actor. In fact, the authors keep in mind the fact that those who propose, debate, and ght for one solution against the other, are also users themselves as they are KWs of the company. During the interviews it clearly emerged that these same employees, when speaking as users, were totally unsatised by the current solutions and aware of their limitations. They clearly preferred, as did other employees, to use e-mails or direct contacts rather than the ad hoc implemented sharing platforms for team projects activities. On the other hand, those employees involved in KM projects when acting as KM proponents, were able to strongly argue in favour of one or the other platform, even underlining the conceptual reasons why one is superior, and complaining about the immature user that does not want to use the tools which would enable him to become a real KW. In this sense, the same organizational actor seems to be decoupled, as he/she could be simultaneously an unhappy, frustrated user and a strong proponent and advocator of advanced KM solutions. These two acting levels seem to be a form of decoupling as they are not an expression of a sort of lack of faith or a dishonest attitude: the user and advocator seem simply not to communicate one with the other, and the employee seems to be unaware of his/her dual mental modality. As stated by the new institutional theory, decoupling is a way to avoid conict between different units and different actors (and, the authors would argue, within the actor himself, between his/her thinking and his/her behaviour). In fact, a better coupling would imply the emergence of redundancies, overlapping competences and alternative if not conicting approaches to problems. As an example, from a horizontal perspective, those that advocate a distributed versus centralized structure of knowledge commend their own approach while inferring that the other, being wrong, should be abandoned. But this would mean that some structures which use the alternative system, should be reconverted or, in case of redundancy, merged with the others or even closed. Further, from a vertical perspective, the organization should monitor the effective use of the available tools. In case of low use rates, the organization should either blame users as they do not utilize the tools or the tools themselves as they are not effective enough. This would either lead again to a reconguration of those units that deal with KM technologies or to pressure on users to adopt current technologies and distance themselves from traditional tools such as e-mail or informal contacts. Last, from the actors perspective, strong coupling would mean explicitly stating the contradiction that exists between what is declared and what is actually done, generating a sense of personal incoherence and inconsistency. Such decoupling is observably maintained through the practice of benevolent inspection and the logic of trust and good faith. As an example, the development of US is carried out by a unit (STS) on the base of a service level agreement which is monitored by the unit responsible for KFED (ITS). As said, US is architecturally and functionally different from KFED the latter being a typically distributed solution made up of a federation of different autonomous intranet sites, and the former a typically centralized structure made of shared category systems and repositories. Such a contradiction between structures that develop opposite solutions to similar problems while one structure is supposed to monitor the other
occurs because of the avoidance of formal evaluations. Thus the two units keep up a series of informal contacts in which each conrms its trust in the legitimate existence of the other as far as the sphere of inuence of each is conrmed.
reference to the current needs of the internal knowledge worker. Rather, it was the result of a series of institutional pressures that span from the need of internal professionals to ll their CVs with innovative experiences, to that of showing to the new ownership that a unit is worth keeping as it holds distinctive competences.
Notes
1. For reasons of privacy, the name of the company, its units and the name of its KM solutions has been substituted with fantasy names. The names of the underlying technologies (such as SAP or Microsoft Ofce), since they are widely used, correspond to those adopted. 2. SAP is an enterprise resource planning solution that has also produced a KM suite based on SAP technology named SAP Portal. 3. Microsoft SharePoint is an electronic repository and collaboration solution.
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