Knowledge management (KM) is a critical area for SMEs in the competitive market environment based on the fact that intangible assets create more value for the organization than tangible ones (Volkov & Garanina, 2007). Knowledge management (KM) is a critical area for SMEs in the competitive market environment based on the fact that intangible assets create more value for the organization than tangible ones (Volkov & Garanina, 2007). Durst and Edvardsson (2012) address KM research in SMEs that was mainly done in the areas of knowledge management implementation, knowledge management perception and knowledge transfer, however knowledge identification, knowledge storage/retention and use of knowledge is poorly understood.
The next chapter in this article is the literature review based on existing research in knowledge management in general and in the SME context. One of the most referential perspectives of knowledge is the hierarchical view of data, information and knowledge, which indicated that data is raw numbers and facts, information is processed data and knowledge is authenticated information (Alavi & Leidner, 2001). Davenport and Prusak (1998) provided the relatively broad approach to knowledge definition: "Knowledge is a fluid mixture of framed experiences, values, contextual information and expert insight that provides a framework for evaluating and incorporating new experiences and information.
Drawing on the work of Nonaka (1994), there are two dimensions of knowledge in organizations: tacit and tacit. The tangible dimension of knowledge is knowledge that can be expressed in words or numbers, in the form of hard data, such as manuals, scientific formulas, documents and standardized (Nonaka & Konno, 1998; Beijerse, 2000). However, Alavi and Leidner (2001) suggest that there are, at least, four basic knowledge management processes that should be considered; creating, storing/acquiring, transferring and applying knowledge.
Knowledge Management in SMEs
Knowledge transfer takes place at different levels (Alavi & Leidner, 2001): between individuals, from individuals to explicit sources, from individuals to groups, between groups, between groups. It is important that available knowledge reaches the right person at the right time (Beijerse, 2000). The process that increases the competitiveness of an organization is the application of knowledge and not only knowledge (Alavi & Leidner, 2001).
Durst and Edvardsson (2012) also agree that knowledge application is the only way to create value within the organization. Thus, knowledge can be applied in many places and new knowledge can be applied more quickly through workflow automation (Alavi & Leidner, 2001). Hutchinson and Quintas (2008) discussed that knowledge management in the organization can be classified into two types, formal and informal.
Formal KM is about the policies, plans, structures, initiatives and practices that are named and guided by KM concepts. On the other hand, informal KM refers to practices that are related to knowledge processes, but which are not labeled or constituted. Both of them are involved in managing explicit knowledge, such as a written document, and tacit knowledge, such as people demonstrating how to perform a task.
Small businesses manage knowledge informally as part of their normal activities without using the concept and terminology of knowledge management (Hutchinson & Quintas, 2008). There are two main points that have been put forward in this research: First, the knowledge of SMEs is managed without the use of the KM concept and the implementation of formal KM structures such as intranet and knowledge collection or sharing system, while the characteristic of informal knowledge management has been discovered . Second, small firms are more likely to use an informal process to manage their knowledge.
Identification of Knowledge and Knowledge Gaps in SMEs
In addition, Beijerse (2000) suggests that in order to structurally manage knowledge in the organization there are nine possible knowledge flows that a manager or entrepreneur should be concerned about. Before implementing the knowledge management process, SMEs should start by evaluating the knowledge in the organization as input to determine the available knowledge and the knowledge needed to perform tasks. Thus, the knowledge flow becomes a knowledge cycle that guides the knowledge management process, which is knowledge creation, transfer, storage and application.
Perez, Amaya and Barcelo (2013) identify the existing and missing key knowledge in the training area by analyzing the description of the job profile and the requirements of the person holding that job. Then compare the knowledge that the job required and what the persons know by asking "What do the employees need to know to be able to perform the essential tasks on the job?". The answer will provide the list of key knowledge to identify the knowledge gaps.
RESEARCH METHODOLOGY
Research Approach
Company Profile
Research Framework
To ensure the validity of the data, the probing technique is used. Probing question is a follow-up question that tries to find more details about the primary question as well as confirm the points addressed (Mind Tools Ltd., 1996). Additionally, other knowledge or skill needed for sales position will be identified by non-participant observation. Finally, the knowledge gaps were discussed as the differences between necessary knowledge and available knowledge.
Research Question: To identify knowledge gaps for sales positions in Thai SMEs that contribute to improving work efficiency. What skills or knowledge do you think you possess that will help you do your job well? What kind of knowledge or information is provided by the company to help you (seller) do your job.
RESEARCH FINDINGS
Data Analysis
- Job Description of Salesperson
- Knowledge Necessary
- Knowledge Available
In addition, the seller must do some paperwork, such as reporting daily and monthly sales, recording warranties, and conducting the motorcycle registration process, which requires some basic computer skills such as Microsoft Offices, Internet, and typing. The necessary knowledge refers to the key knowledge that the salesperson should have to perform tasks effectively and efficiently. Thus, key knowledge is identified based on the owner's and manager's perspective, in line with the training provided by A.P.
Furthermore, salespersons need to know about company performance to improve both employee and customer confidence, such as reward granted. Sales person as a company representative must be well educated about available products such as motorcycle models, available colors, specifications and warranty condition to provide the correct information to customers. The sale of motorcycles is not a one-time action, there are many steps before and after the closing of the sales related to various parties such as service, accounting and administration.
These knowledge and skills are essential to make the sales report, such as sales growth and percentage change compared to the same period last year. Existing knowledge was identified based on position, however, owner and manager knowledge were grouped together due to similarity. For example, the owner has closed relationships with Honda's management level, which provides detailed information about the market situation, new model introduction and competitors.
Because the organizational structure of this SME is quite flat, the responsibilities of the owner and manager are almost identical. As with many small and medium-sized businesses, the owner and manager must monitor daily operations themselves (Wong. & Aspinwall, 2004). Therefore, administrative and management knowledge such as inventory management, marketing plan, relationship management, accounting and personnel management have been developed over time.
For example, if new technology has been introduced, the owner is the first to know and can freely contact the Honda representative for clarification. Public websites also provide lots of news and information that can be related to customer and market situation, such as economic, political situation, competitors and future trends.
Discussion
As a consequence, the confusion about responsibility of salesperson between the owner’s expectation and the salespersons themselves occur. However, lacking of interest was found due to only one salesperson mentioned about this knowledge. For the studied SME, the top sales reward within Bangkok and the vicinity areas has been granted for 5 years in a roll from A.P.
In addition, Honda's philosophy and policies should be maintained to achieve customer satisfaction and standard. The SME does not have a formal training program or steps where the responsibility for training new staff is given to a specific person. New staff have been trained through day-to-day operations, first as an observer and then under the supervision of a senior salesperson.
This appears to be a tacit knowledge transfer process, yet there are few metrics in place to evaluate new staff. Haider (2003) shows that the growth of organizations and their survival depends on their ability to identify knowledge gaps and fill them. Closing these gaps should increase salespeople to perform more effectively and efficiently, as well as increase customer satisfaction and future business sustainability.
Recommendations and Suggestions
Most of the knowledge detected in the studied SME is tacit knowledge that can hardly be identified and explained, but can be transferred through interaction between team members (Nonaka & Konno, 1998).
LIMITATIONS AND CONCLUSION
Limitations and Further Research
Conclusion
Moreover, a lot of knowledge has been generated in this field which is linked to company profitability and customer satisfaction. The knowledge gaps refer to the differences between knowledge needed to perform work and knowledge available within salesperson. The results show that there is mismatch between the owner's expectation and salesperson's understanding about responsibilities due to the absence of actual job description.
While the extent of knowledge identified was similar, gaps were found in terms of insufficient knowledge level possessed by salespeople. This paper highlights the area that Thai SMEs should address to improve their performance before implementing a formal knowledge management process. The entrepreneur should consider identifying the knowledge needed and the knowledge available to improve the learning process in the organization and try to minimize or eliminate the gaps to ensure its survival, growth and maintaining a sustainable competitive advantage.
A methodology for identifying key knowledge to improve decision making in the training area.
