Knowledge Management Systems Conceptual Foundations

Question: Discuss about the Knowledge Management Systems for Conceptual Foundations. Answer: Introduction Using knowledge is regarded as a vital means to achieve better performance in an organization and be more effective in a society (Kalling, 2003). Knowledge is more important in sustenance of the business than it is for labour or land since it enables adjustment to fresh ideas. Inasmuch as this area of study being important, very few studies have been done globally as well as locally to expound on the different concepts. The utilization of knowledge capacity enables creation of an environment conducive for firm to perform well economically. Taking advantage of knowledge by making profits via the management of complicated knowledge-based initiatives is one of the challenges that faces firms. This is because it forms regular pressure for firms to deliver under very competitive conditions. In terms of assets, the value of knowledge is normally neglected hence the benefits that accrue from this underused resource is not fully maximized. According to Alavi and Leidner, (2001), knowledge management systems are a section of information systems used to manage organizational knowledge. These are information technology based systems created to aid and improve the organizational procedures of creating knowledge, save, retrieve or transfer information. It is important to note that not all knowledge management processes need to use information technology. However, knowledge management initiatives, such as acquisi tion of knowledge, knowledge storage, knowledge sharing and implementation of knowledge can assist the firm gain the required experience for instance solving challenges, vibrant learning, strategic planning and generally improve the firms performance (Zack, McKeen and Singh, 2009). According to Wong,Yee,Ling,Lin and Leong (2012), the cooperation and sharing of knowledge is beneficial to individuals and promotes business growth. The current century is the era of knowledge innovators. Several large firms have began to appreciate that keeping data and information is inadequate to sustain competitive advantage in business and to respond to these challenges, firms have been hypothesizing on methods of using and transferring assets in order to supply what the customers require in terms of goods and services customers. The knowledge and experience gained in their area of business are resources left unexplored in many companies. Presently, firms are facing vigorous competition. Some endeavor to implement corporate strategies to cater for their existing customers. To reap rewards, firms utilize knowledge management in order to be competitive with other firms. However, the main challenge faced by firms in managing knowledge is getting and assimilating knowledge to be shared among other staff members in an organization (Grant, 1996). Knowledge management has been utilized in product-based firms as well as service-based firms. However, few studies have been done in the service sector, a sector that is experiencing continuous growth. Therefore, it becomes necessary to comprehend the state of affairs in a service delivery firm in terms of knowledge management strategies. In order for a firm to remain competitive, knowledge management can play an important role. This study will therefore endeavor to explain the reasons on the importance knowledge management in service delivery firms (private health insurance firms in particular) and determine how these insurance companies utilize knowledge management to achieve competitive advantage. The major challenges and barriers that insurance firms may expect during knowledge management will be discussed. Research Questions The study will be guided by the following research questions; How does knowledge acquisition influence service delivery in the private health insurance sector in Australia? What is the effect of knowledge sharing on enhancing service delivery in the private health insurance sector in Australia? The main objective of this study will be to determine the effect of knowledge management practices on service delivery in private health insurance firms: a case study of private health insurance firms, Australia To determine the influence of knowledge acquisition on improving service delivery in the private health insurance sector in Australia To establish the effect of knowledge sharing on enhancing service in the private health insurance sector in Australia. Research Background According to the Australian health directory, Australians contribute to a collective public health insurance that is financed through a graduated scale based on income earned. However, individuals have the option of private health insurance to take care of the costs not covered in the public health insurance policy such as ambulance services, and private dental care. A report by the Ombudsman (2010) lists thirty-seven (37) health funds registered under thePrivate Health Insurance Act 2007 that are divided into two types namely; open (26) and restricted (11) types (see appendix I). The open funds are open to the general public while the restricted funds membership are firm or organization specific based on personnel of a particular organization or economic sector. Hsu, et al, (2007), notes that while addressing the factors that influence knowledge management in SMEs in Taiwan, the internet has provided increased importance to the knowledge economy through readily available information. Firms have shifted from conventional competition to completion in knowledge. They postulate that studies have provided evidence that knowledge is an integral aspect for enhancing competitiveness. According to Kianto, and Andreeva, (2012), past studies have focused on knowledge management and a firms performance through resource-based view and knowledge- based view of the organization. These two views assume that competitive advantage is not dependant on a firms product or market position concerning competition as it does on internal features. Knowledge sharing is the demeanor whereby people generally add each others understanding through expression and illustration of individual knowledge (Li Zhang, 2010). This procedure lets a person to learn and associate the knowledge practically hence knowledge sharing and organizational learning are closely associated. In the study by Schehar, Kashif and Muhammad, (2010) on factors that impact knowledge management fit in corporate sector of Pakistan, they concentrated on the major determinants of knowledge management processes and its effects on vibrant capacities, labour, firm procedure improvement and innovation. These factors were found to have a significant association with knowledge management This study is set to benefit organizations due to the practicality of organizations utilization of effective and efficient means of managing knowledge. It is envisaged that the results of this study will assist the firms to identify the pros and cons relating to knowledge management practices and thereby benefit from the opportunities realized and reduce the threats they currently face. The study will also benefit the insurance firms management in initiating policy guidelines and procedures concerning knowledge management that reflects on the firms performance in business operations. Other firms in different sectors will also benefit from the results of this study by understanding the need for proper and efficient knowledge management practices and therefore implement sound knowledge management procedures to enhance their firm performance. Fellow researchers will benefit from the study by accessing background information and reference point on the effect of knowledge management pract ices in an organization and its relationship with the firms performance. Research Methodology This study will employ a descriptive research design. The major purpose of descriptive research is description of the state of affairs, as it exists (Kombo and Tromp, 2006). Leedy and Ormrod (2001) point out that in a descriptive study, the researcher can use the results obtained from the sample to generalize about the entire population only if the sample is truly representative of the population. Descriptive research design will be appropriate for this study because the study will involve collection of quantitative and qualitative data from a varied number of respondents by interviewing or administering a questionnaire to a sample of individuals. All the thirty-seven private health insurance firms listed by the Australian Government Private Health Insurance Ombudsman (2017) will be targeted for this study. The current study will target all the personnel managers in the thirty-seven private health insurance firms. The personnel managers will be appropriate for the study since they wi ll be deemed to possess the needed information on knowledge management practices in the organization. Research Process T census survey will be preferred for the study as sampling depends on a count of the population. Information will be derived from the entire population. Zikmund (2010), contends that census counts are essential to amend samples so that they can represent the population by weighting them. Therefore, all the 37 personnel managers of the private health insurance firms will be targeted for the study. Data Collection and Analysis Methods A questionnaire will be used for the study. This is a set of questions or statements that assess information on opinions, demographics or opinions (McMillan Schumacher, 2001). A questionnaire is preferable for primary data collection since it is cheaper, ensure confidentiality, allow utilization of standard questions and allow the respondents adequate time to ponder on the questions (Kothari, 2011). After data has been collected, it will be verified for completeness, coded and stored ready for analysis. The data will be analyzed using an analysis computer package such as SPSS (Statistical Package for Social Science). Descriptive statistics will the determine by utilizing the measures of central tendency such as the mean and standard deviation. Inferential statistics will be done by performing correlation analysis and multiple regression at 95% confidence level to determine the significance, strength of relationship and direction of the relationship between the independent variables (knowledge acquisition and knowledge sharing) and the dependent variable (improving service delivery). Expected Research Outcome This study is set to benefit organizations due to the practicality of organizations utilization of effective and efficient means of managing knowledge. It is envisaged that the results of this study will assist the firms to identify the pros and cons relating to knowledge management practices and thereby benefit from the opportunities realized and reduce the threats they currently face. The study will also benefit the insurance firms management in initiating policy guidelines and procedures concerning knowledge management that reflects on the firms service delivery. Other firms in different sectors will benefit from the results of this study by understanding the need for proper and efficient knowledge management practices and therefore implement sound knowledge management procedures to enhance their service delivery. Fellow researchers will benefit from the study by accessing background information and reference point on the effect of knowledge management practices in an organization and its relationship with service delivery. Conclusion The purpose of the current study will be to establish the effect of knowledge management practices on service delivery in private health insurance firms in Australia. This study therefore, will enlighten on the need for knowledge management in terms of service delivery and establish how the firms under review utilize knowledge management to achieve a competitive edge in the market. This will be done by exploring the main challenges faced by the insurance firms, how knowledge acquisition affects service delivery and the effects of knowledge sharing on improving service delivery in private insurance firms in Australia. Related literature on the topic will be reviewed from a global perspective down to the local situation in addition to providing a critical analysis of gaps to be filled in the reviewed literature. References Alavi, M. and Leidner, D.E. (2001) Review: Knowledge management and knowledge management systems: Conceptual foundations and research issues, MIS Quarterly, 25(1), p. 107. doi: 10.2307/3250961. Grant, R.M. 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