10120140504009

International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),

Volume 5, Issue 4, April (2014), pp. 73-88 © IAEME

73

ANALYSIS OF KNOWLEDGE MANAGEMENT IMPLEMENTATION AT

THE STATE-OWNED ENERGY SECTOR COMPANIES IN INDONESIA

Sri Suwarsi

Doctoral Student, Economic and Business Faculty of Padjadjaran University, Bandung, Indonesia

Lecturer of Bandung Islamic University, Bandung, Indonesia

Ernie Tisnawati Sule Professor, Economic and Business Faculty of Padjadjaran University, Bandung, Indonesia

Hilmiana Associate Professor, Economic and Business Faculty of Padjadjaran University, Bandung, Indonesia

Arief Helmi

Associate Professor, Economic and Business Faculty of Padjadjaran University, Bandung, Indonesia

ABSTRACT

An organizational environment has undergone dramatic change lately. To be able to win the

competition in the long term, the company should have the right strategy. In this case, the main task

of a leader associated with the management of human capital is how to encourage optimal

performance of human resources through the implementation of knowledge management to facilitate

knowledge workers to trasfer knowledge, so that he ables to construct, renew, and applying

knowledge to achieve organizational effectiveness.

The successful implementation of knowledge management in this research could be measured

by the 7 (seven) dimensions, namely: (1) Knowledge Creation, (2) Knowledge retention,

(3) Knowledge transfer, (4) Knowledge Utilization, (5) Managerial and Leadership suports,

(6) Corporate Entrepreneurship, (7) Application of technology.

The units of analysis in this study were the state-owned energy sector companies in

Indonesia, because these state companies have strategic roles in the Indonesian economy, especially

to ensure the availability of sources of energy supply to drive the industries in the process of

production, consumption, as well as a source of foreign exchange earnings. The research methods

were description and verification. The populations of study were all the branch offices or regional

offices on the 5 (five) state-owned energy sector companies in Indonesia. The units of observation

in this study were represented by the secondary manager, line manager and employees of the state-

INTERNATIONAL JOURNAL OF MANAGEMENT (IJM)

ISSN 0976-6502 (Print)

ISSN 0976-6510 (Online)

Volume 5, Issue 4, April (2014), pp. 73-88

© IAEME: www.iaeme.com/ijm.asp

Journal Impact Factor (2014): 7.2230 (Calculated by GISI)

www.jifactor.com

IJM © I A E M E



74

owned energy sector companies in Indonesia, which were 245 respondents spread over 25 (twenty

five) branch offices in thoroughly Indonesia.

The result showed that the implementation of knowledge management as measured by the 7

(seven) dimensions was classified well. The ranks of the seven dimensions were the highest score

was management and leadership suports, the second was the aplication of technology, the corporate

entrepreneurship was the third, the fourth sequence was the knowledge transfer, the knowledge

retention was the fifth, the sixth dimension was occupied by the knowledge utilization and

knowledge creation. Based on the average right side test (µ > 6), the results are significant at the 5%

significance level and the statistical null hypothesis was rejected. This means that the implementation

of knowledge management has been achieved well. Based on the measurement model (outer model

and the loading factor) with PLS, it could be concluded that the dimensions of corporate

entrepreneurship greatest effect on the variable, and it was able to predict the dimensions of

knowledge management utilization, and the dimensions of application technology was only able to

predict the implementation of knowledge management.

Keywords: Knowledge Management, Knowledge Creation, Knowledge Retention, Knowledge

Transfer, Knowledge Utilization.

BACKGROUND RESEARCH

Changes in the business environment is strongly to influence organizations, so they

requires organizations to constantly adapt to the changing demands of the various alignment with

the various environmental changes on the variety of strategies and policies, especially in terms of

increasing human knowledge.

Generally, the state-owned energy sector company problems in Indonesia mostly caused by

various factors, both internal and external factors. The internal factors are the lack of a culture of

creativity to come up with ideas, mostly focused on achieving profit and ignore the human

capital development, and so on. Thus, the organizational performance is not optimal, such an

attitude of service, innovation, productivity, and quality of human resources that lead to superior

organizational culture.

In fact, the government organizations and state-owned companies currently face high

demands in terms of service, nevertheless, based on research Barzelay (1992), the public

organization progress in terms of performance has not improved, that one factor is knowledge

(best practice) that was owned by the state was minimal. Besides that, the state-owned energy

sector companies were very limited in the control best practices to provide effective service and

low competitiveness.

Since the privatization program by the government to provide the opportunity for the

state-owned energy sector companies to go public and direct placement, inevitably, the

performance of the state-owned energy sector companies should spur them to face competition in

the global market, as well as a manifestation of the company's commitment to the confidence of

stakeholders, especially the shareholders. Besides the state-owned companies are also expected

to expand into overseas markets, as well as some of China's state-owned energy which is

currently acquiring energy resources abroad in anticipation of domestic energy security needs,

and even according to the Fortune 500, there are three Chinese state-owned energy the top 10

companies are China National Petroleum, Sinopec and State Grid. While in Indonesia, yet none

of the state-owned companies that made it even into the 500 list of large companies.

Along with the increasing population growth, economic activity, industry and technology,

it will also increase the need for the provision of energy to drive the activity. While on the other

hand, the state-owned energy sector companies still plenty of resources to rely on fossil energy



75

supply which are very limited and non-renewable, such as oil, gas, and coal. If we look at the

elasticity of energy in Indonesia compared with other countries, it is still high. The energy

elasticity is the ratio between the growth rate of energy consumption with economic growth. The

smaller the elasticity, the more efficient use of energy in a country.

The energy source used for industry in Indonesia comes from electricity, and fuels

derived from fossil fuels such as diesel, gasoline and gas. This energy source is very important

role in industrial development and an increasingly modern society.

By looking at the conditions expected state-owned energy sector companies need to create new

breakthroughs in making strategic energy planning in Indonesia environmentally sound, raise the

price of energy so as to suppress the drop in energy demand, developing technologies to produce

energy more efficiently, and increase the creation of renewable energy innovation, energy

include water, energy mini / micro hydro, geothermal, biomass , solar energy and wind energy.

While it is to create a climate of innovation and learning processes, they companies can

implement the knowledge management, but the implementation requires a favorable climate for

the development of knowledge, maintenance of knowledge, transfer of knowledge, application of

knowledge, leadership support, knowledgeable staff, and the support of technology.

With a structured knowledge management and integrated systems, the state-owned energy

sector companies in Indonesia have a lot of knowledge workers as a source of knowledge

creation and corporate entrepreneurship in the face of complex challenges, Jones (2000). To

assess whether the application of knowledge management in the state-owned energy sector

companies in Indonesia has been able to improve organizational performance, it requires

evaluation. By the implementation of knowledge management performance assessment can be

determined whether the implementation of knowledge management has been achieved well or

not.

BASIC THEORY

Implementation of Knowledge Management is a process for creating, documenting,

sharing, and to update the knowledge in the organization is supported by the company's main

pillars which include Leardership, and technology, so that it becomes a culture of knowledge

sharing in the company (Nonaka,2009; Alavi (2001); Newman (1999)

Meanwhile, according to Davenport (1998) there are five strategies for implementing

KM, namely; Managerial, Leadership, Corporate Entrepreneurship, Organizational structure. KM

sharing and retention. Newman & Conrad (2000) described the process of implementing KM

models in four main activities, namely: (1) Knowledge Creation, which is an activity associated

with the entry of new knowledge into the organization that includes the development of

knowledge, knowledge discovery, and absorption of knowledge, (2) Knowledge retention, which

is an activity associated with the maintenance and storage of knowledge, including knowledge of

activities to keep the knowledge remains within the organization, (3) Knowledge transfer, which

is an activity that is related to the flow of knowledge from one party to the other party, which

includes communications, translation, conversion, filtering and knowledge translation, (4)

Knowledge Utilization, which is an activity associated with the application of knowledge to the

organization's business processes.

The successful implementation of knowledge management can also follow the criteria

MAKE (Most Admiral Knowledge Entreprises) Award was initiated by Teleos that serve as the

award through a national competition, Asia and globally. There are 8 indicators that serve as the

success of KM, namely: Knowledge driven culture, Knowledge workers, Knowledge-based

products/services/solutions, Maximizing entreprise intellectual capital, Collaborative knowledge



76

sharing, learning organization, Value based on customer knowledge, Transforming enterprise

knowledge into wealth organization.

Based on the study of Chong (2005), Wong (2009) and Albers (2009), there are eight

factors were seen as a key factor in the successful implementation of knowledge management,

namely: (1) a structured process, (2) the existence of people who are experts, (3) the presence of

a champion, (4) the support of upper management, (5) organizational culture, (6) information

technology support, (7) the existence of a special unit of knowledge management and

(8) clear measure of success.

Based on a variety of these opinions, then the application of knowledge management

performance measurement in this study can be measured with 7 (seven) dimensions, can be seen

in the following Table 1:

Tabel 1: The Dimension of Implementation Knowledge Management

Dimensions of critical factors

Related research studies

Knowledge Creation Nonaka & Takauchi : 1995; Horwitch & Armacost

:2002; Allee: 1997; Davenport: 1998; Alavi & Leidner

:2001; Bassi ; 1997; De Jamet :1996; Scarborough

:1999; dan Newman & Conrad (2000)

Knowledge Retention Schultze & Leidner :2002; Horwitch & Armacost

:2002; Laodon :1999; Bassi ; 1997;Quintas :1997;

Scarborough :1999; dan Newman & Conrad (2000)

Knowledge Transfer Maggie Haines: 2002; Schultze & Leidner :2002;

Hansen & Nohira : 1999; Bhatt : 2001; Allee: 1997;

Davenport: 1998; Alavi & Leidner :2001; Huysman &

De Wit : 2000; Beckman :1999; Bassi ; 1997; Bassi ;

1997; De Jamet :1996; Scarborough :1999; dan

Newman & Conrad (2000)

Knowledge Utilization Abell & Oxbrow :2001; David J Skyrme :1997;

Beijerise : 1999; O’Dell : 1997; De Jamet :1996;

Scarborough :1999; dan Newman & Conrad (2000)

Management and Leadership

Suport

Scarborough & Carter :2000; ( Nonaka : 2002; Alavi &

Leidner: 2001 , Newman & Conrad :2000); Kusno

Prijono : 2008; Jones : 2002; Davenport :1998; Chong

:2005; Wong : 2005; dan Albers : 2009.

Corporate Entrepreneurship Hibbard : 1997; Jones : 2002; Malhotra : 1998;

Beckman : 1999; dan Scarborough & Carter :2000.

Application of Technology Hansen & Nohira : 1999; Davenport :1998; Snowden:

1998; Bassi ; 1997; Frappaulo & Toms :1997; Nonaka

: 2002; Alavi & Leidner: 2001 , dan Newman &

Conrad :2000).

RESEARCH METHODS

The method of analysis used in this study was divided into two parts: (1) Descriptive

analysis and (2) inferential analysis. The unit of analysis of this study was the organization,

namely Branch Offices / Regional Offices of state-owned energy sector companies in Indonesia,



77

which is spread over 25 (twenty five) branch offices or regional offices in thoroughly Indonesia on

the 5 (five) state-owned energy sector companies in Indonesia.The unit of observation in this study

was the number of 245 respondents consisting of 38 middle managers, 67 line managers and 140

employees / staff to assess how their perceptions of the variables being studied.

This questionnaire using Graphic Rating Scales in which respondents were asked to choose each

question with an answer on a scale of continum from 1 to 10, and their perceptions of the

phenomenon that was going through the survey. The scale used in the questionnaire was an

interval scale.

DISCUSSION

Entry Level Analysis of New Knowledge into the Organization The knowledge creation is in the implementation of knowledge management activities

associated with the entry of new knowledge into the organization which can be measured by the

frequency of the development of new knowledge in the organization, the frequency of new

discoveries in the organization and knowledge absorption capability in the organization. The

implementation of knowledge management in knowledge creation dimensions were measured

using 3 point questions, the results can be seen in the following Table 2.

Table 2: Entry Level of New Knowledge in Organizations

No. Item Questions Average

Score Criteria

1 The level of development of new knowledge in

the organization 6.96 high enough

2 The frequency of discovery of new knowledge in

the organization 6.75 quite often

3 Knowledge absorption capabilities of employees

in the organization 6.84 quite capable

Sources: Processing questionnaire data in 2014

The summary results for the respondents knowledge creation dimension in the knowledge

management implementation indicate that the implementation of knowledge management in the

state-owned energy sector companies in Indonesia was quite good, meaning that the

implementation of knowledge management in the form of the entry into organizational knowledge,

as measured by the level of development of new knowledge in the organization considered quite

high, the frequency of discovery of new knowledge in the organization considered quite often, and

knowledge absorption capabilities of employees in the organization considered quite capable.

The knowledge creation in the knowledge management is the process of beginning to get the process

of knowledge creation, organization, dissemination and utilization of knowledge in organizations. A

good model of learning from a variety of information that exists outside the organization will

improve the quality of judgment and knowledge in order to create knowledge (knowledge creation).

Based on the data from many things were done by the state Energy Sector in Indonesia to

create knowledge creation in the organization, some of them to form the KM CoP (Community of

Practice) to create a forum sharing, collaboration and problem solving in the form of Sharing &

Discussion Forum (FDS), Peer Group Discussion (FGD), and the Working Group Discussion

(WGD).



78

Maintenance Activity, Storage and Knowledge Organization Keeping Analyses The knowledge retention is the implementation of knowledge management activities

associated with the maintenance and storage of knowledge, including knowledge of activities to

keep the knowledge remains within the organization. The knowledge retention can be measured

by the level of maintenance of an environment conducively to knowledge sharing, company or

organization's ability to document the existence of knowledge within the organization and

continuity of knowledge sharing as a means to retain knowledge. The implementation of

knowledge management in knowledge retention dimension was measured using 3 point questions.

The results can be seen in the following Table 3.

Table 3: Maintenance Activity, Storage and Organizational Knowledge Keeping Assessments

No. Item Questions Average

score Criteria

1 Climate for sharing knowledge 7.00 Conducive

2 The ability of an organization to document

knowledge 6.83

Good

Enough

3 Knowledge sharing routines 6.76 Simply

Routine


The summary scores for the dimensions of the calculation results in the retention of

knowledge knowledge management implementations described above indicated that the activities of

maintenance, storage, and how to maintain organizational knowledge on the state-owned energy

sector companies in Indonesia was quite good, meaning that the implementations of knowledge

management in that companies in Indonesia have supported with a climate that was conducive to

sharing knowledge among members of the group, the ability to document that knowledge was not

lost quite good, and routines for knowledge sharing fairly routine.

The climate conduciveness were to share knowledge through a variety of ways, either directly

or indirectly. The direct sharings were through the meeting forum, innovation forum, discussion and

problem solving. The indirect sharings were through the library, e-library, knowledge center, internet

media and email.

As for the activities of maintenance, storage and how to maintain knowledge on state-owned

energy sector companies in Indonesia and based on the observation and documentation, it can be

explained as follows PT Pertamina has implemented a culture of knowledge sharing through a

knowledge portal implemented formally or informally through a container called a community of

practice.

Various activities of maintenance, storage and method to retain knowledge that other

organizations such as PLN in (1) inventory and acquisition of knowledge through: knowledge

capturing, library, e-library, knowledge center, (2) knowledge activity through: engineering forums,

innovation forums, discussion forums for sharing problems, collaborations, discussion forum

sharings, peer group discussions, working group discussions. While among regions throughout

Indonesia, the sharing knowedge conducted periodically by presenting senior officials and experts

who were attended by the representatives of each unit. It aimed for sharing knowledge and

experience for a precaution in case of similar problems in other generating units.

Analysis of Willingness to Share Knowledge, Usefulness Forum, and Frequency Translation

of Knowledge

Knowledge transfer is an activity in the implementation of knowledge management related

to the flow of knowledge from one side to the other parties, which include communication,



79

conversion, filtering, and the translation of knowledge through the forums. This activity can be

measured by the ability of employees to share knowledge between colleagues, use the forum to

gain new knowledge, and the frequency of communication and translation of knowledge through

learning process. The implementation of knowledge management in knowledge transfer dimension

was measured using a 3 point question, the results can be seen in the following Table 4.

Table 4: The Level of Willingness to Knowledge Sharing, Benefit Forum and Frequency

Translation of Knowledge

No. Item Question Average

Score Criteria

1 The level of willingness to knowledge sharing 6.94 High enough

2 The usefulness of the forum to gain knowledge 6.91 Quite Helpful

3 Frequency translation of knowledge through

communication 6.77 Quite Often


Respondents to the dimensions of knowledge transfer in knowledge management

implementation indicate that the level of willingness to share knowledge, usefulness forums, and

frequency translation of knowledge were good enough. This means that the implementations of

knowledge management in the state-owned energy sector companies in Indonesia were supported by

the willingness of individuals to share knowledge between individuals or groups were high enough.

The benefit of the forum to gain knowledge was quite useful, and the degree of elaboration of

knowledge through communication was still considered quite often.

The success of knowledge transfer in the implementation of knowledge management was

largely determined by the willingness of each individual to share knowledge. In many cases, the

failures were due to the implementation of knowledge management aspects of behavior that is an

unwillingness to share knowledge, indiscipline in writing what had been in what from the work

process (experience) and tend to the oral culture, still at least the employees who use the forum to

gain knowledge, and difficulties in the translation of knowledge into effective communication.

To support the success of knowledge transfer in the state-owned energy sector companies in

Indonesia, it has been implemented knowledge management. For example, in Pertamina, it called

comet which was launched in November 2008. Portal Pertamina which is a portal that uses web-

based technologies for making knowledge sharing for all stakeholders. The knowledge sharing

activities intended that each worker can share experiences and knowledge among colleagues.

Various methods have been carried some of the state-owned energy sector companies to get

the involvement and willingness of employees to share knowledge both offline and online. The off-

line activities include expert, roundtables, workshops, bulletin media, and company news. While, the

on-line activities include the community of practice, knowledge center, and ask the expert.

Analysis of the Application of Knowledge to Business Processes Knowledge utilization is an activity in the implementation of knowledge management related

to the application of knowledge into business processes. The activity knowledge utilization can be

measured through the level of willingness of employees to share knowledge among colleagues, the

use of forums to gain knowledge, and frequency translation of knowledge through communication

and learning. The implementation of knowledge management in the utilization of this knowledge

dimension was measured using a 4 point questions. The results can be seen in the following Table 5.



80

Table 5: Application of Knowledge into Business Processes


Score Criteria

1 Frequency of product development /

knowledge-based solutions 6.7 quite Often

2 Knowledge management capabilities to create

value human 6.82 Capable Enough

3 Knowledge management capabilities to create

value for stakeholders 6.91 Capable Enough

4 The structure of the application process

knowledge 6.89

Structured

Enough


The results for dimensions of the respondents' assessment of knowledge utilization in the

implementation of knowledge management were the application of knowledge to indicate the

business process in the implementation of knowledge management in the state-owned energy sector

companies in Indonesia were quite good. It means the utilization of the results of the implementation

of knowledge management which includes the frequency of development of the product / solution

knowledge base was enough often, the knowledge management capabilities to enhance the value of

human to human capital and the value for stakeholders were capable enough, as well as the

knowledge of the application structured processes were quite structured.

The results of these assessments over a portrait of that application knowledge into business

processes in the state-owned energy sector companies in Indonesia were in good levels. In other

words they were not optimal yet, because the knowledge utilization was a measure of the utilization

of the implementation of knowledge management in order to increase the value of the actual

activities of the organizations.

In this case, it can be explained from the observation and documentation that the application

of knowledge in the business process can be done in various ways : (1) the forum, this method allows

its members to gain as much knowledge as possible through the process of interpersonal

communication about the topics through questioning and interaction directly where any new

information and knowledge can be distributed and received by the employees, (2) the media, through

the media, the company seeks to share knowledge to stakeholders through information that was

explicit knowledge. In addition, to share the corporate knowledge, they can also do the evaluation

and improvement of the company through customer feedback form of input and criticism from

customers, (3 ) on-line portal, used as a means for employees in order to work optimally seek

information and knowledge easily and quickly, and also as a means to transfer knowledge that is

more active, faster, and without a limit of distance and time.

If the levels were measured by using maturity models in the implementation of knowledge

management in the state-owned companies in the Energy Sector in Indonesia is categorized in level

3. It was a common process and approach, that characterized by the utilization rate results in real

business activity that was assessed fairly. Thus, the real results of the knowledge management were

still not optimized yet to improve the effectiveness and efficiency in the economies of scale.

Analysis of Leadership Support Level in Implementation of Knowledge Management The implementation of knowledge management can run optimally if there is support from

the leadership with concrete steps to realize the implementation of knowledge management in any

business activity. The management support includes top management support, the existence of a

special unit to carry out activities of knowledge management is one form of management support,

and the willingness of leaders to make knowledge sharing as a work culture of the organization. The



81

implementation of knowledge management on management and leadership support dimension was

measured using a 3 point question. The results can be seen in the following Table 6.

Table 6: The leadership support level in the implementation of knowledge management


Score Criteria

1 Top-level management support in the implementation

of KM 7.18 support

2 Performance special unit set up to run the activities of

KM 7.03 high

3 The willingness of the leadership to make knowledge

sharing as the organization's work culture 7.36 high


The respondents to the dimensions of management and leadership support in the

implementation of knowledge management in the state-owned energy sector companies in Indonesia

were considered good. It means that the implementation of knowledge management has got the

support from upper management, supported by the high performance of a special unit set up to

execute knowledge management activities, and also the presence of a high willingness to make

knowledge sharing leadership as the organization's work culture .

The Implementations of knowledge management initiatives were good involvement in all

levels of the organization, the level of strategic, operational and tactical levels.

In the framework of implementation of any system in the organization, it will be able to work

optimally if they received the full support and commitment from top management. Similarly, in the

implementation of knowledge management it needs the support of top management and involvement

under management for successful implementation of knowledge management. The implementation

of knowledge management initiatives are good involvement in all levels of the organization, for the

level of strategic, operational and tactical levels, because the leadership role in providing support in

terms of providing resources and funding, motivating, organizing and evaluating the implementation

of knowledge management. The good management support and leadership in the implementation of

knowledge management in the state-owned energy sector companies become succesfull of capital

importance in the implementing knowledge management.

Analysis of Entrepreneurship Cultural Climate Level as Result of Implementation

Knowledge Management Corporate entrepreneurship is a measure of the success of the implementation of knowledge

management in the company, namely the extent to which emerging entrepreneurial culture within

the organization in order to representing a new product / service. Dimensions of corporate

entrepreneurship can be measured by the number of knowledge workers (workers knowledgeable)

in the organization that is able to create innovations, improved problem solving in the organization,

and increased employee expertise in support of the development process, new products or services

within the organization. The implementation of knowledge management in the corporate dimension

was measured by using 3 entrepreneurhip questions. The results can be seen in the following

Table 7.



82

Table 7: Entrepreneurship Cultural Climate levels as a resulting of knowledge management

implementation


Score Criteria

1 The number of knowledge workers

(knowledgeable employees) 7.22 many

2 Support a culture of learning effort, the process

of problem solving, and innovation 6.97 Supporting

enough

3 Increased employee expertise in supporting the

development of processes, products / services

that are new 7.08 high

Sources: Data processing questionnaire in 2014

The assessment results for the dimensions of the respondents indicated that the

implementation of knowledge management in the state-owned energy sector companies in Indonesia

was considered by the aspect of corporate entrepreneurship, meaning that the implementation of

knowledge management has resulted in the many knowledge workers, lack of support enough as a

culture of learning, problem-solving process, and innovation, as well as an increase in high-skill

employees in supporting the development of processes, products / services those were new.

The knowledge management system that treats intellectual capital is as an asset that needs to

be managed so as to create widespread knowledge workers in the organization because of the

continuous learning process, and is able to create the expertise of employees to support the

development and creation of new products and services to meet the demands current business

developments. Especially business in the field of energy, it is need for new breakthroughs to create

new sources of energy in anticipation of the new scarcity of fossil energy sources to switch to

renewable energy. It requires employees to create a knowledgeable and skilled corporate

entrepreneurship.

Application of knowledge management in an organization will be visible when the

knowledge add value and will increase in size if used in knowledge transfer or knowledge sharing in

the form of delivery of a place, person or other parties. Implementation of knowledge management

will also serve members of the organization in the mental construct of entrepreneurship, innovation

and the knowledge to master the problem and the solution. This case is in line with studies by

Liebowitz and Chen (2003). The implementation of knowledge management will also encourage

individual behavior for continuous learning and sharing that will be a source of creativity and

innovation.

The stages that have been undertaken by the state-owned energy sector companies in creating

a climate of entrepreneurial culture were through awards both within and outside the country. For

example, in 2011, Pertamina received an award at the event Indonesian, Most Admired Knowledge

Entreprise (MAKE ), and in 2012 the event of MAKE Award based on Knowledge Management

organized by PT Dunamis Organization has won one state-owned company engaged in the field of

knowledge-based energy that the most admired in Indonesia.

Analysis of Role of Technology in Knowledge Transfer Process The application technology is a dimension to measure the extent of technology play a role in

the process of knowledge transfer means whether the implementation of knowledge management is

supported by both technology and documentation in the process of knowledge transfer within the

organization. In addition, the level of access to which applications to share knowledge across all



83

areas of the division / branches or regions that are not limited by distance and time and the level of

content on-line updating of the knowledge which is used as a reference source. The dimensions of

knowledge management implementation in the application of this technology were measured using

a 3 point questions. The results can be seen in the following Table 8.

Table 8: The role of technology in knowledge transfer process

No. Item Questions

Average

Score

Criteria

1

Information technology support for knowledge

transfer process 7.29 high

2

Frequency of access level existing applications to

share knowledge 7.00 often

3

The level of on-line updating of content as a

reference source of knowledge 7.01 high

Sources: Data processing questionnaire in 2014

Based on the results of the respondents' assessment of the role of technology in the

knowledge transfer process, it indicated that the implementations of knowledge management in the

state-owned energy sector companies in Indonesia have been well supported by the technology. This

means that the implementation of knowledge management has been supported by high technology in

the process of knowledge transfer; higher frequency (often), the level of access existing applications

to share knowledge, and has been supported by the high level of content on-line updating used as a

reference source to gain knowledge of employees.

No doubt, the implementation of knowledge management is now different from the old era,

where that current developments in information technology can be utilized to increase the speed and

ease in the process of acquiring and sharing knowledge without being limited by distance and time.

The main successful key of implementation of knowledge management consists of three main

components, namely people, place and content.

Based on the observation and documentation, state-owned energy sector companies have had web

site connected centrally with the Ministry of state-owned energy sector companies. Every state-

owned energy sector company had a web site that can be accessed by employees, partners, and

consumers who want to know various things about the company, and open a dialogue via email,

facebook, tweeter and a hotline.

In addition, each state-owned energy sector company for smooth communication among

workers and between management and labors have had and developed a corporate portal that can be

exploited and optimized by all workers to support communication in their daily work, which

features, among others: (1) corporate e-mail as a communication medium, (2) the application of e-

mail archiving sms to administer, (3) the application of e-absent to monitor the presence of workers;

application of knowledge management as a means of sharing knowledge and best practice in their

field of work each.

Table 8 describes the overall perception of the implementation of knowledge management in

thye state-owned energy sector companies in Indonesia, that measured by the 7 dimensions of the

actual value of 6.97 as classified quite well.



84

Table 9: Recapitulation implementation of knowledge management of state-owned energy sector

companies in Indonesia

Dimension Total score Category

Knowledge Creation 6.85 Good Enough

Knowledge Retention 6.86 Good Enough

Knowledge Transfer 6.87 Good Enough

Knowledge Utilization 6.85 Good Enough

Management and Leadership Suport

7.19 good

Corporate Entrepreneurship 7.09 good

Application of Technology 7.10 good

Number Average

Good Enough The sample size 245

Item 22

Actual Value 37.555 6.97


Based on the seven dimensions, when assessed by the categories,there are 4 dimensions

categorized quite well, which includes the dimensions of knowledge creation, knowledge retention,

knowledge transfer, and knowledge utilization. This means that the state-owned energy sector

companies in Indonesia in the implementation of knowledge management were not optimal from the

aspect of :

a) the rate of entry of new knowledge into the organization,

b) the maintenance activity and how to maintain storage of organizational knowledge,

c) the level of willingness to share knowledge, usefulness forums, and frequency translation of

knowledge,

d) the application of knowledge into business processes.

While, the dimensions are categorized covering management and leadership suport, corporate

entrepreneurship, technology and user application. This means that the state-owned energy sector

companies in Indonesia in the implementation of knowledge management have been aspects:

a) the level of leadership support in the implementation of knowledge management,

b) the level of entrepreneurial cultural climate as a result of the implementation of knowledge

management,

c) the role of technology in the process of knowledge transfer.

Table 10: Proportion test variables

variables Ideal

Average

Actual

average STD Z Remarks

Knowledge Management 6 6,97 1.191 4.087 significant

** significance at the real level 0,05 (Ztabel = 1,645)

Source: Analysis Questionnaire, 2014



85

Hypothesis

H0: µ = 6

: Implementaion Knowledge management has not been achieved

with either

H1 : µ>6

: Implementation of knowledge management has been achieved with

good

Based on the Table 10 above, it can be explained that the average test the right to knowledge

management variables, the results are significant at the 5% significance level and a statistical null

hypothesis is rejected. This means that the implementation of knowledge management has been

achieved well.

Table 11: Outer model PLS

Latent

variable

Manifest

variables

Original Sample Standard

Deviation

(STDEV)

Standard

Error

(STERR)

T Statistics

(|O/STERR|) Outer

loadings

Outer

weights

(O)

KM

X1 0.981969 0.150112 0.003423 0.003423 43.849203**

X2 0.971025 0.147161 0.002023 0.002023 72.749041**

X3 0.956317 0.145458 0.001961 0.001961 74.171026**

X4 0.984195 0.149433 0.003251 0.003251 45.963050**

X5 0.965157 0.146447 0.001867 0.001867 78.449489**

X6 0.960664 0.150260 0.003984 0.003984 37.717611**

X7 0.930354 0.148147 0.003195 0.003195 46.363723**

The Measurement Model Implementation of Knowledge Management The measurement model (outer model) for latent variables predicted by the dimensional

knowledge management that knowledge creation (X1), knowledge retention (X2), knowledge

transfer (X3), knowledge utilization (X4), management and leadership support (X5), corporate

entrepreneurship (X6), and application of technology (X7), can be described as following Figure 1.

Measurement model KM (X)

X1 = 0.150112 X + 0.0357

X2 = 0.147161 X + 0.0571

X3 = 0.145458 X + 0.0855

X4 = 0.149433 X + 0.0314

X5 = 0.146447 X + 0.0685

X6 = 0.150260 X + 0.0771

X7 = 0. 148147 X + 0.1344

Figure 1: Knowledge management measurement model

X1

X2

X

0.0357

0.0855

0.150112

X3

0.0314 X4

X5

0.147161

0.145458

0.149433

0.146447

0.0571

0.0685

0.0771 X6

X7

0.150260

0.148147

0.1344



86

In the measurement model of knowledge management, the dimension that had most weighs

(outer weight) was the corporate entrepreneurship (X6) of 0.150260, while the smallest dimension

weight was possessed by the knowledge transfer (X3) of 0.145458. While, the largest value of the

raw payload (outer loading) was possessed by dimensions of knowledge utilization (X4) of 0.984195

and the comunality as 0.9686. It means the knowledge utilization dimension able to predict the

knowledge management of 96.86% and the mistake of 3.14%. The smallest value of the raw payload

was owned by the technology application dimension (X7) of 0.930354, the comunality of 0.8656.

This means that the dimensions of application technology was only able to predict the

implementation of knowledge management of 86.56% and the mistake reached 13.44%. The testing

results of the outer models shown in Table 10 was 4.35, where it shows all dimensions of knowledge

management which significance at 5% (T> 1.96).

CONCLUSIONS AND SUGGESTION

Conclusion The implementation of knowledge management in the state-owned energy sector companies

in Indonesia have achieved well.

a) Using the findings of knowledge management in the state-owned energy sector companies in

Indonesia, it has not been optimized to improve the effectiveness and efficiency in economies

of scale, such as the ability in the development of products and solutions, its ability to improve

the human value to employees, and increased value for stakeholders, because it was not

supported by aspects of an environment conducive to knowledge transfer process, especially

aspects of people. Nevertheless, by the support of the leadership of the capital, the cultural

climate of entrepreneurship and technology, the knowledge management implementation could

be further enhanced to support the successful implementation of knowledge management in the

future.

b) The successful implementation of knowledge management in the state-owned energy sector

companies in Indonesia was largely determined by the presence of corporate entrepreneurship,

which means that the support of employees who were knowledgeable, support cultural learning

and skills upgrading of employees in the process of developing new products and services.

c) The dimensions of knowledge utilization are able to predict the successful implementation of

knowledge management most largely. It means that the successful implementation of

knowledge management if the results have been utilized (utilization) by the companies in the

sense that increasing the value of products / services were finally able to provide value to

customers and stakeholders, and also capable of increase the value of the human aspect, in this

regard was the employee. The technology was merely a tool to facilitate the process of

knowledge transfer and the dimensions of application technology is only able to predict the

smallest knowledge management implementation in the model.

Suggestion The implementation of knowledge management in the state-owned energy sector companies

in Indonesia was still not optimal. Thus, the suggestion of researchers to this aspect are :

a) It should be an increase in activity associated with the entry of new knowledge into the

organization that includes the knowledge development, knowledge discovery and knowledge

absorption. The research suggestions are: (i) it is necessary to make improvements to the

process of knowledge creation through: socialization, externalization, combination, and

internalization. The exact form of socialization is the process through knowledge transfer and



87

experience widely into the organization by forming a forum to share knowledge and

experiences. The externalization can be done by encouraging individuals to always write down

the various knowledge or experience into a media company information such as company

magazine, intranet or the company's blog. The combination can be done in a way to guide

employees through direct practice commanded by senior and experienced employees. The

internalization can be done by appreciations for employees who have been able to practice new

knowledge into her work, for example in the form of rewards in the form of financial or non-

financial.

b) It is necessary to create a climate conducive to the maintenance of knowledge either directly or

indirectly. The former is through the meeting forum, innovation forum, discussion, problem

solving, and the latter is through the library, e-library, knowledge center, internet media, and

email.

c) It is necessary to increase the frequency of access applications have been built by the

company's employees as a medium to share knowledge. Considering the most of state-owned

energy sector companies had a branch or office of a large area spread across Indonesia. Thus,

the use of meda can improve the efficiency and optimization of untrammeled by distance and

time.

REFERENCE

[1] Alavi & leidner.2001. Knowledge Management, Knowledge Management System, Research

Issues in Knowledge. Edge management.

[2] Albers, James A.2009. A Practical Approach to Implementing Knowledge Management.

Journal of Knowledge Management Practice.

[3] Alle, Verna.1997. A Value Network Approach for Modelling and Measuring Intangible.

[4] Barzelay, M. (1992). Breaking Through Bureaucracy: an New Vision for Managing in

Goverment. LA: University of California Press.

[5] Chong, Siong Choy and Choi Young Suk. 2005. Critical Factor in Successfull

Implementation of Knowledge Management. Journal of Knowledge Management Practices.

[6] Delphi Consulting Group.1997, Delphi on Knowledge Management. New Jersey : Pearson

Education Inc.

[7] Davenport, Thomas H., and Laurence Prusak. 1998. Working Knowledge: How

Organizations Manage What They Know. Harvard Business School Press

[8] Horwitch, M. & Armacost, R. 2002. Helping Knowledge Management Be All It Can

a. Be. Journal of Business Strategy, pp.27-31.

[9] Kusno Prijono.2008. e-Indonesia Initiative.

[10] Malhotra Yogesh, 2005, “Integrating Knowledge Management Technologies in

Organizational Business Process: getting real time enterprises to deliver real business performance”, Journal of Knowledge Management Vol. 9 No. 1, 2005 pp.7-28, Emerald

Group Publishing Limited ISSN 1376-3270.

[11] Munir, Ningki Sasanti.2011. Penerapan Manajemen Pengetahuan di Perusahaan di

Indonesia. PPM Manajemen.

[12] Nonaka, Ikujiro; von Krogh, Georg. 2009.Tacit Knowledge and Knowledge Conversion:

Controversy and Advancement in Organizational Knowledge Creation Theory". [13] Newman, Brian, 1999, “The Knowledge Management Theory papaers: A Series of Papers

on the theories, processes and practice behind knowledge management A frame work for characterizing knowledge management methods, practices, and technologies”. Washington

University Course EMGT 298TI.



88

[14] Schlussel.2009. How do You Measure the Knowledge Management (KM) Maturity of Your

Organization? Matrics that Assets on Organization’s. KM State USAWC.

[15] Wong, K.Y.2005. Critical Success Factors for Implementating Knowledge Management in

Small and Medium Enterprises. Industrial Management & Data Systems, Vol.105,No.3:

261-279.

[16] J. Neelakanta Gugesh and Dr. S. Sheela Rani, “Influence of Culture in Knowledge

Management on Virtual Team”, International Journal of Management (IJM), Volume 2,

Issue 2, 2011, pp. 103 - 112, ISSN Print: 0976-6502, ISSN Online: 0976-6510.

[17] Shakti Kundu, “Knowledge Management: Value, Technologies and its Implications”

International Journal of Computer Engineering & Technology (IJCET), Volume 4, Issue 5,

2013, pp. 182 - 188, ISSN Print: 0976 – 6367, ISSN Online: 0976 – 6375.

[18] C. S. Ramanigopal, G. Palaniappan and A. Mani, “Mind Mapping and Knowledge

Management: Coding and Implementation of KM System”, International Journal of

Management (IJM), Volume 3, Issue 2, 2012, pp. 250 - 259, ISSN Print: 0976-6502,

ISSN Online: 0976-6510.

Date post:	06-Sep-2014
Category:	Technology
Upload:	iaeme
View:	149 times
Download:	0 times