/IJARBSS/v6-i5/2125 URL:

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1 Fast-Moving Consumer Goos (FMCG) Distribution Companies Proviing the Conceptual Moel of Knowlege Management in Fast The Case Stuy: A Beauty an Health Company Ahma Javan Jafari 1, Nima Mirabeini 2 1 Department of Commercial Management, Payame Noor University (PNU) 2 Master of Inustrial Engineering, University of Tehran DOI: /IJARBSS/v6-i5/2125 URL: Abstract Toay, successful organizations, to achieve the intelligent an knowlege-base survival in a competitive environment, have got help from knowlege management to change, innovate, an accelerate the activities of the organization an ultimately improve its performance. In this regar an consiering the importance of this issue, over the past few years, knowlege management as a strategic issue has been in the spotlight of Golpakhsh-e Aval Company. Accoringly, the present paper has investigate the implementation of knowlege management in a company istributing cosmetic an hygiene proucts. The variables have been ivie into two main sections incluing knowlege management infrastructures an processes of knowlege management. In aition, the sub criteria have been analyze using the t-test. After implementing knowlege management, it has been evaluate using some inices an the effect of knowlege management implementation in the organization has been compare with the pre-implementation conitions. Keywors: Knowlege Management, Knowlege Management Concept, Knowlege Management Infrastructures, Cosmetic An Hygiene Proucts 1- Introuction Knowlege is the first strategic resource for companies in the 21 st century. Researchers an experts are trying to fin out how to effectively collect an manage knowlege resources to use them as a competitive avantage. Therefore, before eciing to embark on the implementation of knowlege management, organizations nee to assess their organizational subsystems an resources to ientify the best of their knowlege management strategy. Knowlege management is not a new topic; in fact, human civilizations, from one generation to another, have trie to preserve an transfer knowlege to unerstan the past an preict the future. In toay s complex an ynamic business environment, the thirst for knowlege is eepening ay by ay; the knowlege which is rapily changing an istributing outsie organizations. Information technology an the Internet have also create new challenges in creation, 183

2 maintenance an management of knowlege. To provie an accurate efinition of the knowlege, ifferent subjects shoul be assesse at ifferent levels. One of the most important aspects of knowlege management is to efine knowlege, information an ata precisely. 1- Data: ata constitute the first level of knowlege management; in other wors, they are numbers, figures, charts or special characteristics obtaine from observation, experience, or calculation an are meaningless by themselves. In fact, ata can be consiere as the raw elements neee for ecision making. 2- Information: information constitutes the secon level of knowlege management. Information inclues ata in a particular fiel; at this level, ata are groupe, filtere an organize to be meaningful. In other wors, information is a set of ata, escriptions, interpretations, an other issues relate to the text with respect to the objectives, events or special processes. 3- Knowlege: knowlege is efine as organize, combine, or classifie information which is comprehensive an increases awareness an wisom. The complexity of knowlege concept has le to the formation of various perspectives, but what is perceive of ifferent efinitions is that knowlege inclues information processe in people s min or groups through processes such as contemplations, the exchange of ieas, an learning. 2- The research literature Toay, organizations, believing in the vital role of knowlege in achieving a sustainable competitive avantage (Nonaka an Takeuchi, 2005), are trying to restrain systematically the value of their knowlege assets to achieve their strategic objectives through using new systems (Zack, 1999). To achieve this purpose at the macro level, knowlege management has been known as an effective approach aime at organizational evelopment an obtaining the competitive avantage through the systematic management of intellectual assets of the organization (Helestron an Huste, 2004). In a stuy conucte by Sharifinia (2009) as investigating the relationship between organizational culture (base on the Moel Globe) an knowlege management in the Ports an Maritime Organization, it was conclue that there is a positive an significant relationship between organizational culture an knowlege management in Ports an Maritime Organization. In a general sense, knowlege map is efine as a graphic isplay or a list of sites for knowlege an their relationships with other people an ifferent units within the organization. Knowlege map inicates what knowlege is use in a process an how it flows in the process. Knowlege map contains information about the knowlege of the organization that escribes who has what type of knowlege, where the knowlege is an how it is transferre an isseminate (Miller, 2005). Davenport an Prusak (1998) has state that a knowlege management map shoul locate important knowlege in the organization an then isseminate its image or a list of its functions. Knowlege maps usually referring to persons, ocuments an sites (Kim et al., 2003) illustrate the knowlege resources an flows in the organization (Liebowitz, 2005). Creating knowlege map means to locate the important positions of knowlege in the organization an isseminate the image reflecting them. In short, knowlege map shows an image of what is there in the organization as well as the way accessing them (Davenport an Prusak, 1998). Some researchers cite cases such as information systems, ICT 184

3 an its structure as key inicators of the knowlege management success in terms of technology (Yaghoobi an Maleki, 2012). On the other han, protecting spiritual ownership ue to the fear of a lack of appreciation an accreitation by managers an colleagues is also one of the reasons for the absence of knowlege sharing. Employees like to retain their ownership of knowlege so that they are accreite by their colleagues (Rowley, 2003). Table 1 shows the summary of knowlege management critical success factors in the target organization. Table 1: the summary of knowlege management critical success factors in the target organization Row Main Factors Corresponing Component 1 Organizational Leaership Support an commitment of senior managers Strategic Orientation Rewar System an Spiritual 2 Management Systems Performance Evaluation System Information Technology System Eucation System Organizational Learning 3 Organizational Excellence Culture Innovation Welcoming Changes 3- Knowlege Management Moels There are various moels propose by scholars in the fiel of management to ientify an investigate knowlege management. Some of these moels have focuse on knowlege management activities such as the creation or transfer of knowlege; an others have generally stuie the knowlege management cycle an taken into consieration various activities relate to the knowlege. However, so far, no knowlege management moel has been able to gain consensus Moels classification As mentione, there are many moels with ifferent processes propose on knowlege management. The moels are classifie in two ways: one way is base on the views unerlying the moels; an the other way is base on the processes followe to form the moels. Here, two types of view-base grouping an one type of process-base grouping are introuce; an then, the process-knowlege moel is iscusse more. 185

4 Kakabase et al., by reviewing the classification of knowlege, have ivie knowlege management moels into four groups as follows: 1- The network moel: In this type of moels, the focus is on communicating, acquiring, sharing an transferring through the exchange of horizontal information. Important knowlege lies in a network of people who join together by ifferent means. 2- Cognitive moels: knowlege as the asset of an organization nees accurate an controlle access, expression, storage, measurement, maintenance, an issemination. Value creation is obtaine through the subsequent application of best practices an avoiing implicit errors which have been roote up as well as benefiting the lessons previously learne. 3- Associative/communication moels: in these moels, it is iscusse about the characteristics of the working groups, such as self-organizing, continuous learning an informal exchanges. 4- Philosophical moels: in these moels, markets an internal processes base on the bilateral ialogue in a strategic context, questions about the assumptions an continuous investigation on the behavior of competitors are taken into account. 4- The research objectives 1- Implementation of knowlege management in a company istributing cosmetic an hygiene proucts (Golpakhsh-e Aval Company). 2- Management of knowlege as an organizational asset an facilitating the achievement an sharing of knowlege by users an experts in atabases. 3- Creating knowlege repositories an improving the registration an istribution processes of generate knowlege. The present paper seeks to increase the extent of knowlege management level in in a company istributing cosmetic an hygiene proucts (Golpakhsh-e Aval Company) an present a conceptual moel to further institutionalize it. 5- The moel escription Implementation in the istribution company of cosmetic an hygiene proucts The conceptual moel of the research is in fact a chart to show the variables extracte from the research theoretical framework. This moel inicates the relationship between the theoretical esign an information collection an analysis. In this research, the conceptual moel has been esigne in a way that it helps the researcher collect an analyze ata. The following figure shows the research conceptual moel: 186

5 Processes Require for Implementation Knowlege Management Infrastructures Knowlege Prouction Knowlege Acquisition Knowlege Storage Knowlege Sharing an Transfer Organizational Culture Organizational Structure Human Resources Information Technology Knowlege Management Implementation Consiering the research variables, the structure of questionnaires use in this research inclues 5 areas: the first part of the questionnaire consists of 9 items relating to information technology, the secon part inclues 9 questions on human resources, the thir an fourth parts respectively ask a question about strategy an leaership an organizational structure ; finally, the 5 th part of the questionnaire has 9 items on organizational culture. The following table shows the classification of variables. The responses of questions have been score base on a scale ranging from very goo to very ba. Table 2: the variables classification Information Technology Human Resources Strategy an Leaership Knowlege Management Infrastructures Organizational Structure Organizational Culture Knowlege Ientification an Acquisition Knowlege Development, Sharing an Distribution Knowlege Storage an Maintenance Knowlege Management Processes Knowlege Application 187

6 The questionnaires were istribute among 40 employees working in the Golpakhsh-e Aval Company which is a company istributing cosmetic an hygiene proucts. The variables of table 2 were assesse using the t-test analysis Knowlege Management Infrastructures 1- Ientifying the status of information technology system in the organization In testing the research hypotheses an examining the mean of population s opinions using the selecte samples, an, are expresse as follows: Consiering the issue that the focus of responses is close to 3 an the ifference between mean of samples an the values of the test is reporte equal to 0.2 as well as P=0.26 an higher that (table 3), it is conclue that the null hypothesis ( ) is confirme at the level of 5%. Thus, the imension of information technology has a favorable situation; an since the value is very close to the mean value, it can be sai that this area tens to be positive. Table 3: the results of t-test to etermine the status of IT imension mean Statistical Value = 3 A 95% confience interval for the ifference between the mean an test values Upper boun Lower boun Difference between the mean an test values P-value (the result of statistical test) t- statistic Stanar Deviation Mean Ientifying the status of organizational structure In testing the research hypotheses an examining the mean of population s opinions using the selecte samples, an, are expresse as follows: Consiering the issue that the focus of responses is far lower than 3 an the ifference between mean of samples an the values of the test is reporte equal to as well as P=0.4 an higher that (table 4), it is conclue that the null hypothesis ( ) is confirme at the level of 5%. Thus, the imension of organizational structure has a favorable situation in the population uner stuy. 188

7 Table 4: the results of t-test to etermine the status of organizational structure imension mean Statistical Value = 3 A 95% confience interval for the ifference between the mean an test values Upper boun Lower boun Difference between the mean an test values P-value (the result of statistical test) t- statistic Stanar Deviation Mean Ientifying the status of human resources In testing the research hypotheses an examining the mean of population s opinions using the selecte samples, an, are expresse as follows: Consiering the issue that the focus of responses is far lower than 3 an the ifference between mean of samples an the values of the test is reporte equal to 0.4 as well as P=0.03 an lower that (table 5), it is conclue that the null hypothesis ( ) is rejecte at the level of 5%. Thus, the imension of human resources oes not have a favorable situation in the population uner stuy. Table 5: the results of t-test to etermine the status of human resources imension mean Statistical Value = 3 A 95% confience interval for the ifference between the mean an test values Upper boun Lower boun Difference between the mean an test values P-value (the result of statistical test) t- statistic Stanar Deviation Mean Ientifying the status of organizational culture imension In testing the research hypotheses an examining the mean of population s opinions using the selecte samples, an, are expresse as follows: 189

8 Consiering the issue that the focus of responses is far lower than 3 an the ifference between mean of samples an the values of the test is reporte equal to as well as P=0.07 an lower that (table 6), it is conclue that the null hypothesis ( ) is confirme at the level of 5%. Thus, the imension of organizational culture has a favorable situation in the population uner stuy. Table 6: the results of t-test to etermine the status of organizational culture imension mean Statistical Value = 3 A 95% confience interval for the ifference between the mean an test values Upper boun Lower boun Difference between the mean an test values P-value (the result of statistical test) t- statistic Stanar Deviation Mean Ientifying the status of leaership imension In testing the research hypotheses an examining the mean of population s opinions using the selecte samples, an, are expresse as follows: Consiering the issue that the focus of responses is close to 3 an the ifference between mean of samples an the values of the test is reporte equal to 0.02 as well as P=0.9 an higher that (table 7), it is conclue that the null hypothesis ( ) is confirme at the level of 5%. Thus, the imension of leaership has a favorable situation; an since the value is very close to the mean value, it can be sai that this area tens to be positive. 190

9 Table 7: the results of t-test to etermine the status of leaership imension mean Statistical Value = 3 A 95% confience interval for the ifference between the mean an test values Upper Boun Lower Boun Difference between the mean an test values P-value (the result of statistical test) t- statistic Stanar Deviation Mean

10 Dimensions 8- Conclusion of knowlege management infrastructures A 95% confience interval for the Difference ifference t- P- between the between the Test statist value mean an test mean an test Results ic values values Lower Boun Upper Boun Status Organizational Culture Organizational Structure Human Resources Rejecte Unfavora ble Information Technology Leaership Knowlege Management Infrastructures Knowlege Management Processes The following table shows a summary of the results obtaine from assessing all imensions of the knowlege management. 192

11 Dimensions 9- Conclusion of knowlege management processes A 95% confience interval for the Difference ifference t- P- between the between the statist value mean an test mean an test ic values values Lower Boun Upper Boun Test Results Status Knowlege Ientification an Acquisition Knowlege Development, Sharing an Distribution Knowlege Storage an Maintenance Rejecte Unfavora ble Knowlege Application Knowlege Management Processes Accoring to table 9, the results obtaine from testing knowlege management infrastructures an processes have been favorable. 6- Conclusion The present paper investigate the implementation of knowlege management in a istribution company of cosmetic an hygiene proucts. For this purpose, firstly 40 employees working in the Golpakhsh-e Aval Company were selecte as samples to take part in analyzing the infrastructures an processes of knowlege management an their sub-criteria which have 193

12 been etermine by the conceptual moel of the research. The knowlege management infrastructures an processes imensions were ientifie using t-test. After implementing knowlege management an analyzing its imensions, the following table was istribute among the same 40 people who ha been selecte as samples. The ata of the research was examine to specify the status of knowlege management after its implementation in the organization. Each imension was score from 1 to 5, ranging from very goo to very ba. Table 10: the questionnaire of knowlege management implementation inices Inices Preimplementation Value Postimplementation Value Awareness of knowlege available in the organization Inter-sectoral exchange of knowlege Ientifying the experts of the organization Performing group activities Doing things base on personal experiences Increasing personal knowlege by company s activities The impact of knowlege base on process improvement Company s awareness of its weaknesses Performance Improvement Familiarity with issues an projects to reuce rework in Golpakhsh-e Aval Company Figure 1 shows the mean of values before an after the implementation of knowlege management for the 40 people who were selecte as samples. 194

13 Figure: the chart of knowlege management implementation As it observe, in some aspects, the impact of knowlege management has been significant an in some others, it has been low but effective. References - Amin, Amin an Saa Bargach an Jim Donegan(2003). Builing Knowlege Sharing Culture. Oilfiel Review, vol.13, no.1, pp Broabent, M. (1998).The phenomenon of knowlege management: - Barney, j(1991). Types of competition an the theory of strategy: towars an integrative approach, Acaemy of management review. Vol11.pp Barney,J.B. Firm reasourses an sustaine competitive avantage. Journal of Knowlege management. Vol.17, pp Balogun,O, Hawisa, h. an Tanock J.(2004). Knowlege management an Manufacturing: The Prouct an Process Database. Journal of manufacturing technology management, vol.15, no.7, pp Bhatt, G. (2002), Management strategies for iniviual knowlege an organizational knowlege, Journal of Knowlege Management, Vol. 6, Issue 1, pp Bierly, P., Chakrabarti, A. (1996), Generic knowlege strategies in the U.S. pharmaceutical inustry, Strategic Management Journal, Vol Bierly, P., Daly, P. (2002), the strategic management of intellectual capital an organizational knowlege, Eite by: chan Wie choo & Bontis, N. Oxfor university press. - Chuang, S.H (2004). A resource-base perspective on knowlege management capability an competitive avantage: an empirical investigation. Expert systems with Applications, 27, pp Choi, an H. Lee (2003). An empirical investigation of knowlege management styles an their effect on corporate performance. Information an management, 40, pp

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