COMMONWEALTH JOURNAL OF COMMERCE & MANAGEMENT RESEARCH

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1 THE ORGANIZATIONAL CULTURE AND ITS IMPACT ON KNOWLEDGE MANAGEMENT PROCESSES: CASE STUDY IN AL-GOMHORRI HOSPITAL AT HAJJAH- YEMEN Hamid Alqadami Research Scholar, Department of Management Science, Dr. Baba sahib Ambedkar Marathwada University, Aurangabad Abhijeet Shelke Professor, Department of Management Science, Dr. Baba sahib Ambedkar Marathwada University, Aurangabad ABSTRACT This study has aimed to identify the impact of organizational culture on the process of knowledge management. The study population consisted of (240) employees of Al-Gomhorri Hospital at Hajjah in Yemen. The administrative leadership was selected from the head of department and above as a sample of the study. The (45) copy of the questionnaires were distributed to the respondents and (40)of them were retrieved of which four are invalid. (36) Copies were analyzed by SPSS.The results of the study have shown that there is a statistically significant effect of the organizational culture in all its dimensions on knowledge management processes. The study recommended establishes the organizational culture encouraged to sharing the knowledge among employee into the hospital. KEY WORDS: Organizational Culture, Knowledge Management processes 92

2 INTRODUCTION The Public and private sector organizations in the world are witnessing major developments in the field of attracting the latest forms of technology and communications. However, it is working to absorb the highest levels of modern technology and adopting modern administrative systems in order to adapt to a rapidly expanding world. The concept of knowledge management emerged as one of the methods that enable organizations to utilize their data and information resources to increase their efficiency and effectiveness. In addition to, knowledge management endeavor to make organizations have the ability to the competitive way and stay in the market by keeping up with the latest high technology methods to meet the customers' needs for services and goods. The importance of knowledge management lies in simplifying processes and reducing costs by eliminating unnecessary actions that hinder rapid work processes and the service of customers (Mathew, 2008). For the success of the application of knowledge management, many researchers see the need for an organizational culture that provides the conditions that help in the creation, storage, dissemination, and application of data and information in such a way as to achieve the goals. As the health sector is one of the vital sectors in every country, and one of the most important indicators that measure the rates of development in the world and being a basic sector in daily life, such as maintaining the safety and health of people. It has become the responsibility of the administrative leadership in this vital sector, including hospitals working to keep up with the modern managerial systems side by side with technology and advanced medical devices. As a result of the importance of this sector, this study was an attempt to find out the impact of organizational culture on knowledge management in the Al-Gomhorri Hospital at Hajjah- Yemen. STATEMENT OF THE PROBLEM The problem of this study can be formulated in the following main question: What is the impact of organizational culture on knowledge management in Al-Gomhorri Hospital at Hajjah? 93

3 From the main question, the following sub-questions can be driven. What is The reality of application of knowledge management in Al-Gomhorri Hospital? What are the most important organizational culture factors that influence on knowledge management processes? Does Al-Gomhorri Hospital at Hajjah adopt an organizational culture that promotes knowledge generation, application, and sharing? OBJECTIVE OF THE STUDY 1. To provide a conceptual framework for organizational culture patterns, and dimensions of knowledge management through understanding the concept, objectives, elements, success factors and other related aspects. 2. To identify the level of knowledge management application as seen by the respondents in Al-Gomhorri Hospital at Hajjah. 3. To identify the impact of organizational culture on the process of knowledge management. 4. To identify the reality of organizational culture in Al-Gomhorri Hospital at Hajjah. 5. To recognize the obstacles and challenges facing the administrative leadership of the hospital in the application of knowledge management and provide the suitable suggestions and solutions for that. SIGNIFICANCE OF THE STUDY The significance of this study shows to address two important variables, organizational culture, and knowledge management. They are directly related to achieve the organizational objectives and obtain competitive advantage and survival in the market. Study and exploration of the effect of the two variables are important and vital. However, the organizations will benefit from the results and suggestions of this study in the development of the organizational culture, which help and support the application of knowledge management in the organization. 94

4 HYPOTHESES The first main Hypothesis: There is no statistically significant on the effect of organizational culture (trust, social culture, shared vision, management practices, and common cultural standards) on the knowledge management processes in the Al-Gomhorri Hospital at Hajjah. The following sub-hypothesis is derived from this hypothesis: There is no statistically significant on the effect of organizational culture (trust, social culture, shared vision, management practices, and common cultural standards) on the generatingof knowledge in Al-Gomhorri Hospital at Hajjah. There is no statistically significant on the effect of organizational culture (trust, social culture, shared vision, management practices, and common cultural standards) on the sharing of knowledge in the Al-Gomhorri Hospital at Hajjah There is no statistically significant on the impact of organizational culture (trust, social culture, shared vision, management practices, and common cultural standards) on the application of knowledge in the Al-Gomhorri Hospital at Hajjah The second main hypothesis: Al-Gomhorri Hospital at Hajjah does not adopt an organizational culture that supports the application of knowledge management. METHODOLOGY OF THE STUDY The analytical descriptive approach used in this study. Where this approach enables us to study reality or phenomenon as it exists and describe it accurately. It helps to understand the relationship between the phenomenon and can reach conclusions and generalizations that help to develop the reality of studying. 95

5 POPULATION AND SAMPLE OF THE STUDY The study population consisted of (240) employees of Al-Gomhorri Hospital at Hajjah in Yemen. The administrative leadership was selected from the head of department and above as a sample of the study. The(45) copies of questionnaire were distributed to the respondents and 40 of them were retrieved of which four are invalid.36 questionnaires were analyzed by SPSS DATA COLLECTION METHOD The questionnaire was used to collect the data from the study population in order to reveal the relationship between the variables contained therein. The questionnaire contained three parts: Part 1: Personal information Part II: The dimensions of organizational culture, and includes (37) questions. Part III: The dimensions of knowledge management and included (23) questions. RESEARCH BACKGROUND 1. Organizational culture: The concept of organizational culture has recently received increasing attention among academics and professionals as a result of their importance in the success of business organizations. So, there are many definitions of organizational culture, according to (Lundy & Cowling, 1996) the way we do things around here. Schein (1990) defined organizational culture as a pattern of basic assumptions, invented, discovered, or developed by a given group, as it learns to cope with its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore is to be taught to new members as the correct way to perceive, think, and feel in relation to those problems. So, we can define organizational culture as a set of values, habits, beliefs, the rules of behavior, and standards that control the group. In addition to the mental perceptions adopted by individuals about their organizations. 96

6 2. Dimensions of Organizational Culture Trust Trust is very important in building knowledge. When people trust each other, they are more willing to share their resources without fear of being exploited by others. And the more people are characterized by a high level of trust, the more willing people are to social exchange in general and cooperative interaction in particular( Idris1, et al, 2015). Collective Culture The building of knowledge requires a collective culture that guides the behavior of the individual so that his subjectivity, personal struggle, and actions undergo to the objectives and actions of the group. Common Vision When individuals share collective goals, aspirations, perceptions, and interests, this helps them to imagine the possible importance of sharing and pooling their resources. A shared vision can be seen as a connecting mechanism that helps different parts of the organization integrate and combine resources Management Practices This dimension points to the existence of functional relationships characterized by mutual trust, respect for the thoughts of the subordinates and attention to their feelings. The Common Cultural Values The Organizations and societies have values that are largely shared by their members. Values define those things, situations or characteristics that are considered important by society, values are related to the rules of culture, but they are more general and abstract than rules. Rules are rules of conduct in specific situations, while values are what should be considered good or evil. 3. The importance of organizational culture on knowledge management The culture of the organization reflects the environment in which business decisions are taken and implemented.the knowledge-driven organization must be flexible, have a participatory culture to promote the free flow of information, and facilitate the generation of knowledge. According toalavi et al, (2006), organizational culture is a critical and important factor that 97

7 affects positively or negatively on the application of knowledge management and its various processes, and that the investigation of the reciprocal relationship between them, showed that the relationship is more complex than previously thought; organizational culture affects the progress of management Knowledge and flows of knowledge in the organization. 4. Knowledge Management There are many definitions of knowledge management according Dalkir (2005), Knowledge management is the deliberate and systematic coordination of an organization s people, technology, processes, and organizational structure in order to add value through reuse and innovation. Whereas Kearney and Horde define it as the use of knowledge and experience available internally and externally to the institution when and whenever required (Alataibi, 2008). DATA ANALYSIS AND RESULTS 1. Analysis of the Demographic and Job Characteristics: The majority of the sample by gender as shown in the table (1) was male and most of the sample by age was in the (20-30) age groups. While the majority of the sample by qualification was a diploma. As for the experience, the majority of the sample was from 5-10 years, and the majority of the sample by job was other (laboratory worker, pharmacists, and Nurses). Table 1: Frequencies and percentages of sample of study Sex Frequency Percent Male Female Total Age Frequency Percent from year

8 from year more than 40 year Total Qualification Frequency Percent Diploma Bachelor Master 0 0 Ph.D Total Experience Frequency Percent Less than 5 years from 5 to 10 years From 11 to 15 years years and more Total Job Frequency Percent Head of department Manger General manager and above Others Total Analysis of answer respondents of the variables of the study The table (2) has shown the general mean of the organizational culture in all its dimensions (independent variable) is (3.9167) and a standard deviation of (.63808) which is higher than the general average. This is referred to that the organizational culture adopted by the hospital is a good organizational culture that serves the application of knowledge management and the 99

9 development of work. The results of the axis of organizational culture as follows: The common cultural standards come in the first rank in the mean of (3.8333) and a standard deviation of (.63246) which is higher than the general average. This indicates that the hospital administration is interested in the development of common culture standards. The collective culture has come in the second rank and the mean was (3.6111), and the standard deviation is (.80277) which is higher than the general average. This dimension is referred to that the collective culture adopted by the staff in the hospital will contribute in support of the application of the knowledge management. The dimension of shared vision has come in the third rank with the mean of (3.4444) and a standard deviation (.92410) which is higher than the general average. In the fourth rank was a trust with the mean of (3.0278) and a standard deviation of ( ) which is higher than the general average as well. Also, management practices have come with a mean of (3.0139) and a standard deviation of ( ) which is above general average also. Table 2: Mean value and standard deviations for organizational culture Descriptive Statistics Organizational culture dimensions Independent Variables Mean Std. Deviation Ranking Trust paragraph ( 1-6) Collective culture paragraph ( 7-12) Common Vision paragraph ( 13-19) Practice management paragraph ( 20-28) Common cultural standards paragraph ( 29-37) Organizational culture as a whole The table (3) has shown that the general mean of knowledge management processes (dependent variable) is (3.1944) and a standard deviation of ( ), which is higher than the general average. This is referred to that the knowledge management adopted by the hospital is good according to answers of the respondents. The results of the axis of knowledge management as follows: The application of knowledge has come in the first rank in the mean of (3.1944) and a 100

10 standard deviation of (.95077), which is higher than the general average and this indicates that the hospital management is interested in the application of knowledge management. The knowledge generation comes in the second rank and the mean was (2.9444) and the standard deviation is ( ), which is lesser than the general average. So, there is a weakness in the generation of knowledge. However, the management of the hospital should know the causes. One of these causes according to the respondents is that there is a lack of making the research which helps to generate knowledge continuously. The knowledge sharing come in the last rank, the mean was (2.8333)and standard deviation (1.0889), it is also lesser the than the general average. This refers to that the sharing of knowledge between staff is not good and needs to be reassessed. However, the knowledge management processes, in general, is good and need further development. Table 3: Mean value and standard deviations for knowledge management Descriptive Statistics Knowledge management processes Dependent Variables Mean Std. Deviation Ranking Knowledge Generation paragraph ( 38-44) Knowledge sharing paragraph ( 45-52) Application of knowledge paragraph ( 53-59) Knowledge management as a whole Test of the Hypotheses Test of first main hypothesis: The multiple regression was used to test the first major hypothesis as shown in the table (4) we find that the calculated value of F = (4.878) and that the value of the sig = (.002) which is less than the level of significance of (.05). So, we reject the null hypothesis and accept the alternative hypothesis. This means that there is a statistically significant effect of the organizational culture in all its dimensions on knowledge management processes. 101

11 Model COMMONWEALTH JOURNAL OF COMMERCE & Table 4: The result of first main hypothesis Sum of Squares df ANOVA a Mean Square F Sig. Regression b Residual Total a. Dependent Variable: knowledge b.. Predictors: (Constant), (Trust, Collective Culture,Common Vision, Practice Management, and Common Cultural Standards) For the purpose of testing the first sub-hypothesis, multiple regression was used as shown in the table (5) below. It was the calculated value of F = (3.454) and sig = (0.014) which is less than the level of significance of (0.05). So, we reject the null hypothesis and accept the alternative hypothesis. This means that there is a statistically significant effect of the organizational culture with its different dimensions on knowledge generation. Model Table 5: The result of first sub- hypothesis Sum of Squares df ANOVA a Mean Square F Sig. Regression b Residual Total a. Dependent Variable: Generation b. Predictors: (Constant), (Trust, Collective Culture, Common Vision, Practice Management, and Common Cultural Standards) In addition, we used the multiple regressions to test the second sub-hypothesis as shown in the table (6) below. We found that the calculated value of F = (2.271) and the value of the sig = (.073) 102

12 which is greater than the level of significance of (0.05). So, we accept the null hypothesis. This means that there is no statistically significant effect of the organizational culture in all its dimensions on knowledge sharing. Model Table 6: The result of second sub- hypothesis Sum of Squares df ANOVA a Mean Square F Sig. Regression b Residual Total a. Dependent Variable: sharing b. Predictors: (Constant), (Trust, Collective Culture, Common Vision, Practice Management, and Common Cultural Standards). The multiple regression test was used to test the third sub-hypothesis as shown in the table (7) below. The calculated value of F = (3.949) and that the value of the sig = (.007) which is less than the level of significance of (0.05). So, we reject the null hypothesis and accept the alternative hypothesis. This means that there is a statistically significant effect of the organizational culture in all its dimensions on knowledge application. Model Table 7: The result of third sub- hypothesis Sum of Squares df ANOVA a Mean Square F Sig. Regression b Residual Total a. Dependent Variable: application b. Predictors: (Constant), (Trust, Collective Culture, Common Vision, Practice Management, and Common Cultural Standards) 103

13 Test of second main hypothesis: For purpose test of second main hypothesis, one sample T-test was used as shown in the table (8) below. Where T = (8.620) and Sig. (2-tailed) = (.000) which is less than the level of significance of (0.05). Therefore, we reject the null hypothesis and accept the alternative hypothesis. So, Al- Gomhorri Hospital at Hajjah adopts an organizational culture that supports the application of knowledge management. Table 8: The result of second main hypothesis Organizational culture One-Sample Test Test Value = 3 Sig. (2- Mean 95% Confidence Interval of the Difference T Df tailed) Difference Lower Upper RESULTS OF THE STUDY The study reached the following results: 1. There is a statistically significant effect of the organizational culture in all its dimensions on knowledge management processes. 2. There is a statistically significant effect of the organizational culture with its different dimensions on knowledge generation. 3. There is no statistically significant effect of the organizational culture in all its dimensions on knowledge sharing. 4. There is a statistically significant effect of the organizational culture in all its dimensions on knowledge application. 5. Al-Gomhorri Hospital at Hajjah adopts an organizational culture that supports the application of knowledge management. 6. The mean of knowledge generation and knowledge sharing was less than the average. 104

14 RECOMMENDATIONS The study recommendation are as follows: 1. The hospital management should give the employees their rights without claims in order to increase the trust between employees and administration. 2. It should nominate Staff for training according to their cognitive abilities. 3. The hospital management should make the rotation the employees on all the departments to get new knowledge. 4. Engage the employees in making plans. 5. Activating job descriptions into the hospital. 6. Support scientific research in the hospital that generates new knowledge. 7. Establish the organizational culture encouraged to sharing the knowledge among employees. 8. Conduct periodic meetings and encourage the employee to express their views and doing workshops for employees that promote the adoption of knowledge management REFERENCES Alavi, Maryan.,Kayworth, Timothy.,&Leinder, Dorothy. (2006). An Empirical Examination of the Influence of Organizational Culture on Knowledge Management Practices.Journal of Management Information System, Vol. 22,No.3, PP: Available at: (EBSCO). Dalkir, Kimiz. (2005). Knowledge Management intheory and Practice. P.3. Retrieved from Idris1, Katun., Ali, Nita1.,&Aliagha, Godwin. (2015). Impact of Organizational Culture on Knowledge Management Process in Construction.Asian Social Science, Vol. 11, No. 9, pp Mathew, V (2008). Knowledge Management Progression, Issues and Approaches for Organizational Effectiveness in Manufacturing Industry: An Implementation Agenda, ICFAI Journal of Knowledge Management, (IJKM) Vol. 6, No. 1, pp Sun, Shili. (2008). Organizational Culture and Its Themes.International Journal of Business and Management, Vol.3, No.12, pp

15 Schein, Edgar.H.(1990). Organizational Culture., Massachusetts Institute of Technology, Sloan School of ManagementAmerican Psychologist, 45, Retrieved from Yasser, Alataibi. (2008). Knowledge Management and its application in the Saudi University.PhD thesis, in educational administration and planning. Umm Al-Qura University, Kingdom of Saudi Arabia, p