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ABSTRACT as well as organizational capacity for innovation didn’t consider and evaluate all the factors which affect the competitive advantage. 1. Background
Nowadays, not only business is important but also knowledge is increasing for the sustainable development of a business and in the nation. Knowledge is considered to be meaningful and useful information of personnel data, policies or operational process of each business
Thirdly, All the papers which involve on Knowledge Management in research of companies in the developed countries were having the good training and the strategy for long-term growth. In Vietnam, other researches showed that the knowledge maintenance model but not considering the Knowledge Management; range of this researchers is limited to small and medium enterprises that organization system is not transparent, lack of leadership, business management skills and operation in economic transformation are disqualified, focus on short-term goals. In the developing countries, how business should solve knowledge management. When the businesses have professional operation in the long-term, what they will do with their employees with less soft skills, have less experience on management in professional working environment.
A Knowledge Management System includes information system, operation system, decision system, unlike data management or information management, knowledge management is creating, sharing, using and developing the knowledge and information of an organization. The goal of this site is to provide a comprehensive overview of knowledge management by examining its objectives, scope, strategy, best practice, knowledge management tools, and so on. Competitive advantage of enterprise is the knowledge refine the firm’s information assets to meet organizational goals. So, knowledge management is a key factor in each business.
Having many researchers explained the role and impact of knowledge management in the company but the paper didn’t show some issues: Therefore, my paper gives more solutions of previous researches, I choose the topic: “Research on Enterprise Knowledge Management system to Improve Competitive Advantages for Small and Medium Enterprises in Vietnam”.
2. Objective of research
Main objective: Building the model on the effect of Knowledge Management System on the SME’s toward Competitive Advantage is Detail objective:
the model and level of development on Knowledge Firstly, in the SECI model, Nonaka (2011) found out that the process of converting tacit knowledge into explicit knowledge. Base on the example of specific companies, there are some effects or problem on the process of the impact of knowledge management systems. How the knowledge management system sharing, training of staffs and employees in the companies? - Identifying Management in the SME’s in Vietnam;
- Design Enterprise Architecture for Enterprise Knowledge Management System.
- Building the influence model of Enterprise Knowledge Management System to Competitive Advantage in the SME’s. Secondly, Duska Rosenberg and Keith Devlin (2007) focused on the development and application of an information based on the model that aims to capture formally the explicit and implicit aspects of knowledge. This paper did not explain the solution to the motives, ideas and different experience among the staff in the companies. The researchers did not consider the knowledge management systems on the effect on training, decision-making
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3. Subjects and Scope research
3.1. Subjects Research 5. Structure
My thesis is divided into four chapters: Knowledge Management Business system to Competitive Advantage in the SME’s Vietnam
Chapter 1: The issues between the Knowledge Management and Competitive Advantage in SME’s in Vietnam 3.2. Scope Research
Chapter 2: The Knowledge Management System in SME’s in Vietnam Spatial area of interest: The paper researches the SME’s in Vietnam
Temporal area of interest: Data from 2015 to 2016 Chapter 3: Design Enterprise Architecture for Knowledge Management System in SME’s in Vietnam
Chapter 4: The Knowledge Management System Model to make competitive advantages for SME’s in Vietnam. Content of interest: The thesis investigates the realities, constitutes and the impact of Knowledge management system to Competitive Advantage in companies.
6. New Contributions on the thesis 4. Methodology
New contributions in term of academic literature and theory: - Collecting Qualitative Data (qualitative – interview, quantitative or combined)
- Predictive and test the Knowledge Management System Model of SME’s Vietnam
I will randomly select companies such as state enterprises, private company, joint venture, Foreign-Invested Enterprise in Vietnam and conduct a survey using two methods: interview and questionnaires. - Building Enterprise Architecture for the Knowledge Management System Model - Collecting Data
- Giving the Impact Model of the Knowledge Management System to Competitive Advantage
New recommendations: + The interview method (personal Interview) is a face to face communication between the researchers and the respondents e.g staffs, directors and partners of the companies.
- My thesis evaluates actual state of implementation of the Knowledge Management System in SME’s Vietnam
- Knowledge Management System is being used and practice in some SME’s Vietnam + Questionnaire: The present study will use some questions as the questionnaires to find the information related to the researches. If the geographic is far away to use the interview method, researcher will use online interview.
+ Analyzing data: Using SEM – Structural Equation Modeling to test the estimates, exploratory factor analysis and suitability model.
+ Analyze or Design System: using the Enterprise Architecture structure.
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CHAPTER 1. THE ISSUES BETWEEN THE KNOWLEDGE MANAGEMENT AND COMPETITIVE ADVANTAGE IN SME’S IN VIETNAM
- Creation - Adaptation - Internalization - Connection - Knowledge - Integrated Capacity
1.3. Knowledge Management in Enterprises
1.3.1. The definition of Knowledge
Sveiby (1997-1998) showed that “Knowledge is the ability to explain and act something”. In this chapter, I have already shown in the background of the issues between the Knowledge Management and Competitive Advantage in SME’s in Vietnam. The first, I indicate the fact of problem of SME’s in Vietnam. The second, I introduce Competitive Advantages and Capacity in building sustainable competitive advantages. The third, I give the overview of Knowledge, types of Knowledge and Knowledge Management in companies. The last, I explain analysis and evaluation to give the roles of Knowledge Management in building the Competitive Advantages in SME’s.
1.1. Vietnam SMEs
Depending on the country, the size of the enterprise can be categorized based on the number of employees, annual sales, assets, or any combination of these. It may also vary from industry to industry.
1.2. Competitive Advantages Following Nonaka& Takeuchi (1995) indicated that “Knowledge is the dynamic process of person to demonstrated faith of truths”. Davenport &Prusak (1998) and Davanport (1999) gave the definition of Knowledge is the information in your brain that the aggregation of experience, value, context of information and specialist knowledge. These helps to evaluate and coordinate to create new experiences and information including comparison, results, contact and communication.
that: “The brain information
Stenmark (2001), Quigley and Debons (1999), Holsapple and Joshi (2000) show into valuable transforms knowledge which helps us understanding the definitions by answer questions: How? Know-How? Why? Know-Why?
1.3.2. Types of Knowledge
Nowadays, several definitions of knowledge and theories to explain it exists. Knowledge dividends into many types such as: Individual Knowledge and Group Knowledge, Tacit knowledge and Explicit knowledge.
1.3.3. Business knowledge M.Porter (2004) explained that: “Competitive advantage is a function than of either providing comparable buyer value more efficiently competitors, or performing activities at comparable cost but in unique ways that create more buyer value than competitors and, hence command a premium price”. Competitive advantages are conditions that allow a company to produce a good or service at equal value but at a lower price or in a more desirable fashion. These conditions allow the productive entity to generate more sales or superior margins compared to its market rivals. Competitive advantages are attributed to a variety of factors including cost structure, branding, the quality of product offerings, the distribution network, intellectual property and customer service.
1.2.1. The definition of Competitive Advantage Business knowledge is a sum of skills, experiences, capabilities and expert insight, which you collectively create and rely on in company. As a 1.2.2. Effect of Core Competence of Enterprises on Competitive Advantage
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shared resource, knowledge shapes and affects all the activities in and around company. - Combination: The creative use of computerized communication networks and large-scale databases can support this mode of knowledge conversion. 1.3.4. Knowledge Management in Business
- Internalization: Transfers from explicit knowledge into tacit knowledge held by the individual through the actual doing or through simulations.
- Environment of transfer knowledge
Knowledge Management is a multidisciplinary assessing and several definitions. Many researchers gave several definitions about Knowledge management so had some confusion. Researchers gave two orientations: human orientation and information technology orientation. Two orientations show basic of approach, or researcher, organization and investigate Knowledge management system, computer science, artificial intelligence. There are definitions of both the approaches, but most of them focus on human orientation and technology orientation is just supporting factors.
- Classification of Knowledge Management through dynamic + From the learning organization to Knowledge management The theory of knowledge creation through the SECI process, and try to advance them further incorporating the dialectic thinking. Knowledge is conceptualized as a shared context in motion, can transcend time, space, and organization boundaries to create knowledge. (Nonaka, 1991). Knowledge creation is conceptualized as a dialectical process, in which various contradictions are synthesized interactions among individual, the organization, and the environment. + From database to Knowledge management
+ From traditional to knowledge work professions
- The process of Knowledge transfer
Tacit
Tacit In the knowledge-creating theory, Nonakael at gave the importance of physical space or cyberspace of knowledge transfer environment interaction. The environment of transfer knowledge is “a space that allows participants share case and creation knowledge through interaction”
Tacit Externalization
Explicit
Socialization 1.4. The role of knowledge management in creating competitive advantage for SMEs
Many information system papers showed
Explicit
Tacit Combination Internalization
Explicit Explicit
Figure 1: SECI model of Nonaka the effectiveness of knowledge management systems (KMS) as the most advanced innovation in the future. Davenport and Prusak (1998), Johnson (1998), Alavi and Leidner (2001) indicated the importance of developing an organization’s KMS to maintain competitive advantage in business environment. Source: Nonaka,1991
- Socialization: Sharing tacit knowledge through face-to-face creation or shared experience.
- Externalization: Tacit to explicit. Developing concepts, which embed Knowledge management system in business, especially SMEs is strategic to improve their competitiveness. It has four factors: rarer, non- imitate, valuate and irreplaceable, specifically: Creation capacity, adaptation capacity, internalization capacity, connection capacity, knowledge capacity, the combined tacit knowledge. And which enable its communication.
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integrated Capacity. Thence, SMEs gives some competitive advantages through methods: CHAPTER 2. KNOWLEDGE MANAGEMENT SYSTEMS IN SMALL AND MEDIUM ENTERPRISES IN VIETNAM
- Enhancing products
- Creating product differentiation
- Keeping customers
- Prevent competitors entering the market
- Increasing profits by reducing cost
Knowledge management systems in small and medium enterprises in Vietnam is considerably researched from the overview to that of detail. The first part of the chapter, it presents an overview of the research school of knowledge management systems. Besides, the authors examined the current situation and determine the level of development of knowledge management systems in small and medium enterprises in Vietnam. Finally, the author proposed and tested model of factors affecting the knowledge management systems in small and medium enterprises in Vietnam.
2.1. Situation knowledge management systems in small and medium enterprises in Vietnam
Nowadays, information system is important components that helps company maintaining their business goals and having competitive advantage in the market. Information technology is an indispensable factor in the strategy of company. SMEs should use knowledge management system which is a useful tool to defeat such powerful opponents and attract more customers with their brand positioning strategy.
We have other with data management or information management and knowledge management is understood as a process created, shared, exploited and developed knowledge assets in enterprises in order to enhance the effectiveness of the innovative capacity innovation and rapid response capabilities of the business.
2.1.1. Schools of research on knowledge management system
2.1.1.1. Innovative diffusive theory
2.1.1.2. Reasonable action theory
2.1.1.3. Technology acceptance model
2.1.1.4. Theory of planning behavior
2.1.1.5. The fit between tasks-technology
2.1.1.6. Theory of social capital
2.1.1.7. Social awareness theory
2.1.1.8. Modeling success stories
2.1.1.9. Model of information system
2.1.2. Knowledge management system in small and medium enterprises
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2.2.1. Model of enterprise knowledge management system includes g Knowledge Management System (KMS)
According to Svetlana Sajeva & Robertas Jucevicius (2010), knowledge management systems are characterized by six factors:
tools and technology support and organizational problems. KMS is all of knowledge of such organizations KMS consist of a current knowledge hidden, appeared, made an creative and shared, stored and used. Therefore, it can be defined in many different ways and applied in many areas of the organization of activities related to human technology and processes. (1). Knowledge Management Process (KMP) Factor: KMP consists of 3 variables: Process Implementation and Coordination (KMP1), Process Formulation (KMP2), Process Performance Measurement (KMP3).
2.1.3. Level of development of knowledge management system in small and medium enterprises in Vietnam (2). Strategy Leadership (SL): SL consists of 5 variables: SL1, SL2, SL3, SL4, Reward and motivation (SL5).
Level of Knowledge Management system in Vietnam’s SMEs
(3). Organizational Structure (OI): Stacey (1995) states that the OI consists of four variables: OI1, OI2, OI3, Social Networking (OI4).
Level 5 4
information to Level 4 12
(4). Technology Infrastructure (TI) Factor: TI consists of three variables: the existence of information and communication technology in line with business development (TI1), access technology and business communication (TI2), enterprises have regular application of information and communication technologies (TI3). Level 3 18
Level 2 27
(5). Academic Organization (OL): OL consists of three variables: learning before knowledge management (OL1), learning in knowledge management (OL2), learning after knowledge management (OL3). Level 1 19 Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
(6). Organizational Culture (KC): The KC consists of 5 variables: KC1, KC2, KC3, KC4, Culture of Culture, share knowledge (KC5). Level 0 20 Table 1: Cronbach's Alpha Scales of Variable Knowledge Management System 0 10 20 30
Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted Figure 2: Graduation scale of Knowledge Management system development in Vietnam’s SMEs KMS (Cronbach's Alpha = 0.856) KMS1 14.6000 9.899 .666 .828 KMS2 14.6900 10.054 .644 .834 1. Graduation scale of knowledge management system development in small and medium enterprises in Vietnam KMS3 14.6300 9.852 .660 .830 KMS4 14.6700 9.294 .674 .827 2.2. Factors affecting knowledge management systems in small and medium enterprises in Vietnam KMS5 14.5300 9.524 .715 .815
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2.2.3. Analyzing Discovery factors 2.2.5. Model validation
Table 2. Verify KMO and Bartlett's for independent variables
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.717 After evaluating the scales, we test whether the model that t is suitable by running on the Amos software. The resulting non-standardized model is shown in Figure 3: Approx. Chi-Square 881.136 Bartlett's Test of Sphericity Df 253
Sig. 0.000
Coefficient of KMO = 0.717> 0.5: analyzing factors is appropriate for research data. Bartlett's test result is 881,136 with significance level sig = 0.000 <0.05, so the factor model hypothesis is unsuitable and will be rejected, which proves that the data used to analyze the factor is extremely appropriate.
2.2.4. Analyzing assertive factors
Figure 4. The non-standardized model
Figure 3. CFA results of variables Intention to share work experience
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CHAPTER 3. DESIGN ENTERPRISE ARCHITECTURE FOR KNOWLEDGE MANAGEMENT SYSTEM IN SME’S IN VIETNAM Data Architecture: The structure of the physical data assets (text, books, ...) and the logic (digital data) of the system and the tools for managing this data asset.
Application Architecture: The overall design of
the software applications is used, the interaction between them and their relationship to the main business processes of the system.
Technology Architecture: Describing the hardware and software infrastructure which is vital in developing the three architectures. Technology architecture includes: information technology infrastructure, middleware, networking, communications, standards, etc. Overall, I indicate the designing enterprise architecture for Knowledge Management system. At first, I concentrate on the method of building model for all of the information system, based on the result to evaluate, analyses and select the Togaf way to create the overall model for Knowledge Management system at SME’s in Vietnam. The next of content, showing the results of building from the master to the detail of Knowledge Management system. Finally, the experimental results, applied the overall model to develop and implement at a specific business, is introduced
3.1 Enterprise architecture design method
System architectural framework: The architectural framework makes general rules for the creation, interpretation, analysis and use of architectures in a particular area of software or in the community that involved.
"The enterprise architecture is known to be a set of principles, methods and forms used to describe the organizational structure, business process, infrastructure, information system or any constituent elements or any other agency, organization, enterprise "according to Nguyen Minh Hong (2011).
Begin
1. Operational
3. Exchange
2. Collective problems
4. Answer the question and solve problems
The end
5. Appreciated the answers
6. Storage Knowledge database
Figure 5. History of the enterprise architectures
3.2. Building the enterprise model for Knowledge Management System Figure 6. Business Process Flow Diagram of Enterprise Knowledge Management System Key components of that system
Business Process Architecture: including the development strategy, management system, organizational structure, the main business processes of a system.
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3.2 Business Process Flow Diagram of Enterprise Knowledge Management System CHAPTER 4: THE KNOWLEDGE MANAGEMENT SYSTEM TO MAKE COMPETITIVE ADVANTAGE FOR SME’S IN VIETNAM Policies Information System Personal
Portal User Interface Software The Regulation Of It Applications
It Training And Supervision Background Technology Software In this chapter, I propose a model and test the impact of knowledge management system to a competitive advantage SME’s in Vietnam. The content is presented in detail from the design study model research methods to test the model results. Thereby, finding out the inadequacy of knowledge management in today's business, throughout analyzing to find the cause and choosing a solution selection of optimal solutions and conducting building system implementation knowledge management in the enterprise.
4.1. Question Database Data Digitization Process Operation
Cooperate Infrastructure Development Strategy Environment
Figure 7:. The IT architecture
3.3 Experimental building knowledge management system based on ERP
Recent researches in the field of information systems appreciate greatly the knowledge management system (KMS) as the important innovation to enhance the operational efficiency of the business. Continuing upheaval of the corporate market we always try to create and maintain competitive advantage. Enterprises must effectively manage the resources of their unit and one of the assets most important strategy that is knowledge (Nonaka 1995). Business knowledge may be found to be used and shared by decision makers when they need it. There are many information technology systems can effectively support the flow of knowledge. A system can the best support the KMS line from which knowledge can improve the creativity popular organizations collected knowledge (M. Alavi and D. Leidner 2001). In other words, the KMS system has a great influence on the creation of competitive advantage.
4.2. Designing research
My thesis randomly selected businesses across the country operate in the field of information and communications technology including the type of public, private, venture and capital foreign investments, etc. It focusses primarily on medium-sized enterprises and small and progress survey by two methods of direct interviews and using questionnaires. Figure 8. Modules supported production and business operations
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4.3. KMS model to CA
+ SEM method is used to test the model appropriately, weighted sum CFA, reliability, unidirectional convergence and distribution value, ect appreciate an influence on the degree of correlation with each other independent factors
Decision making process - Tacit knowledge - Explicit knowledge - Cultural knowledge
4.5. Results of model testing
Cronch Alpha coefficient of variables
Learning
Competitive advantage
Knowledge management system
-Creation
- Product quality
-Reliability
- Receipt
- Market position
Measurement Reliability Scores for each variable: Knowledge Management System, Decision Process, Innovation Capacity, Learning Ability and Competitive Advantage are summarized as follows:
-Flexibility
-Organization
-Integration
- Diversify products
-Common
Table 3. Cronbach Alpha coefficients of variables
-Approach
- Difficult to imitate
-In Time
No Variable name Identification
- Administrative procedures
KMS Number of observation variables 5 Coefficient Cronbach Alpha 0.810 1 Knowledge management system
2 Decision making process DMP 3 0.891
Capacity of innovation
- Process innovation
- Product innovation
3 Capacity of the organization CO 2 0.770
LA 4 0.914 4 Learning ability
CA 5 0.847 5 Competitive advantage Figure 9. KMS model to CA Analyzing discovery factors 4.4. Research Methods According to Hair &etc (1998, 111), KMO (Kaiser-Meyer-Olkin) is an indicator of factor suitability. The KMO test results are as follows:
Table 4. KMO Coefficients The study used analysis methods linear structure (Structural Equation Modeling SEM-) to verify estimates explore factor analysis and the appropriateness of the model Accredited KMO and Bartlett
KMO Coefficients 0.749
Approx.Chi-Square 3665.765 Bartlett form + The first phase, it involves evaluating their selection interview question survey to obtain data along-to-use analysis. Using quantitative preliminary set sample initially test the correlation between the variables correlated variables total inspection Cronbachs Alpha testing the factors explored (EFA) which determine the pattern with the scale officially df Sig. 171 .000
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CONCLUSION
According to the analysis reuslt, the KMO coefficient = 0.749> 0.5: Factor analysis is appropriate with the research data.
Analyzing the assertive factor
Results of the CFA model Chi-square Chi-squaredf df143 423 894 296 3 unsatisfactory (Carmines McIver 1981) worth 005 p 0000 is a perfect fit. Other indicators show that this model fit the data research (CFI 0917 09 09 TLI RMSEA 089 008 0074). Components consist of: Systems Knowledge Management, Learning Ability, decision process innovation capability and competitive advantage are achieving unidirectional.
The correlation coefficient between the conceptual component is P-value ≤ 0,05. Thus P-value components Knowledge Management System Learning Ability decision process innovation capacity and competitive advantages are achieved separated values special. The scale for the observed variables of knowledge management system to achieve the convergence value. The dissertation has presented the realities of the development of knowledge management systems in small and medium enterprises in Vietnam. The most common level is the system that allows new employees in the enterprise to perform old jobs using published business processes. This system accounts for the highest rate of 27% and the optimized KMS system accounts for the lowest rate of 4%. In the context of research being workers in Vietnamese enterprises, where every employee has the need to learn from other people experience, sharing, exchanging, learning the knowledge in business is always on high demand. Corporate governors need to invest in the knowledge management system development along with paying some considerable attention to their staff: creating favorable conditions and building incentive mechanism to encourage employees to actively learn and pass on their experience; aiming at the goal of building a complete enterprise knowledge management system that allows knowledge to be created, used, shared and stored continuously to contribute to building sustainable competitive advantage and enhancing efficiency - the fruit of the business.
Research results show that small and medium enterprises are aware of the role that knowledge management plays in their production and business activities. It can be emphasized that each component of the knowledge management system can be characterized by different parameters. The dissertation has proposed a number of factors that contribute to effective management and are considered as an important condition for the successful creation and development of knowledge management systems, the numerical values of these results are used for small and medium enterprises.
However, simulation study for specific enterprises is more specific and requires a more detailed analysis of the criteria of the parameters required for the knowledge management system.
Knowledge is a valuable asset of the business that needs to be managed properly, but it cannot be managed directly. Organizations can only create a favorable environment by providing favorable conditions for workers to Figure 10. Model affects KMS to CA
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the capacity for innovation in order to create sustainable competitive advantage and improve operational efficiency of the business.
engage in knowledge-based activities, creating an environment that a full knowledge management system should be created and developed in the organization. This research has examined 23 essential elements of knowledge management systems, which are defined as factors that are needed when developing a knowledge management system. However, it must be admitted that these factors may be more detailed with more specific criteria for the creation and development of a single knowledge management system in a small and medium enterprise.
To conclude, the dissertation focuses on researches into KMS and its impact on decision-making, learning ability, business innovation and competitive advantage. Knowledge management systems on one hand create a favorable context that enables tacit knowledge to be interpreted and shared, on the other hand allows and supports the transfer of knowledge. Being limited by the sample size and the uneven use of KMS in Vietnamese small and medium enterprises in the survey, the results of this study still have some limitations. In the future, researches into the impact of KMS on competitive advantage may be extended to take other influencing factors into account, such as differences in information quality, type of business, culture in regions, etc.
The dissertation has researched and rudimentarily evaluated in order to select suitable architectural framework in the enterprise architecture for small and medium enterprises in Vietnam. Specific results include: business architecture, data architecture, application architecture, and technology architecture from master to detail; which small and medium enterprises in Vietnam can apply to develop and implement a knowledge management system with a comprehensive vision, but specific to each function and data.
This research can be used by managers to assist enterprises in developing strategies to enhance their competitive advantage. Enterprises should pay attention to these key issues:
- Aiming at the goal of building a complete knowledge management system that allows knowledge to be created, used, shared and stored continuously in all business operations. - Cohering the investment in knowledge management
system development together with creating favorable conditions to improve the ability to learn and to innovate in the enterprise.
- Strengthen the exploitation of the knowledge management system in all activities of the enterprise, especially in decision-making, it is necessary to thoroughly exploit sources of knowledge that have been managed from the knowledge management system, such as hidden knowledge and cultural knowledge.
- Balancing the resources of the unit to reduce unnecessary learning organization activities, increasing investment in the KMS system and
