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Learning Organization and Knowledge

Management: Transfer Process of Tacit
Knowledge in a Public University for Academic
Excellence
CONFERENCE PAPER NOVEMBER 2014

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International Conference on Intellectual Capital, Knowledge Management and Organizational Learning (ICICKM 2014), At
University of Sydney, Australia, Volume: ISI Indexed, E-Book ISBN: 978-1-910309-73-5 and E-Book ISSN: 2048 -9811

Learning Organization and Knowledge Management: Transfer Process of Tacit Knowledge in Public
University for Academic Excellence

Kalsom Salleh (PhD)

Universiti Teknologi MARA, Shah Alam, Malaysia,
kalsom816@salam.uitm.edu.my or mdchom@yahoo.com

ABSTRACT:
It is imperative for higher learning institutions to become a learning organization (LO) which can be
accomplished by adopting knowledge management (KM) for the transferring process of tacit knowledge to drive
their future value of academic excellence. Hence, the research objective of this paper is to empirically
investigate the conceptual relationship between learning organization and knowledge management process of
tacit knowledge which can contribute to the organizational performance of the higher learning institutions. A
survey questionnaire was employed as the main instrument to collect data from the academicians in the
selected public university in Malaysia. The empirical findings of this study provide an initial step forward in
identifying the significant conceptual relationship between the relevant dimensions of a learning organization
and the effective knowledge management process of tacit knowledge which can enhance the academic and
research excellence of a public university. This research paper adapts the studies of Watkins and Marsick
(1993:1996) and Hernandez (2000) to identify the ways in which the seven dimensions of the LO and the
transfer process of tacit knowledge through KM concept that could influence and improve the academic
performance of the selected public university in Malaysia. The KM process of tacit knowledge is found to be the
highly significant predictor and followed up by the spirit of continuous study, team learning and leadership as
among the moderately significant LO components for the integration concept of LO and KM for the knowledge
performance and innovation of the selected public university in Malaysia

Keywords: Learning Organization, Knowledge Management, Tacit Knowledge Transfer, Organizational

Performance and Public University

1. INTRODUCTION
The need for organizations to survive in a changing environment has led to the development of the concept of
the learning organization (LO) and knowledge management (KM). When knowledge becomes core competency
of the organization, a successful organization is one that pays greater attention to the development and
preservation of internal skills and capabilities through the process of learning and sharing knowledge among
individuals (Misha & Bhaskar, 2010; Salleh, Chong,Syed Ahmad & Syed-Ikhsan, 2012; Salleh, Syed Ahmad,
Syed-Ikhsan & Lin, 2011).
To strive for academic and research excellence, it is imperative for a public or private university in Malaysia to
become a LO. The university needs to undergo the transformation process of LO by adopting the knowledge
management process (KMP) of transferring tacit knowledge for its future value driven of academic excellence.
Hence, the objective of this research paper is to empirically investigate the conceptual relationship between the
seven dimensions of the LO and the transfer of tacit knowledge through KMP for the future value driven of
academic excellence of the selected public university. This research objective adapts the studies of Watkins and
Marsick (1993; 1996) and Hernandez (2000; 2003) to identify the ways in which the seven dimensions of the LO
and the transfer process of tacit knowledge which are deemed important in influencing and improving the
knowledge performance and innovation.

The motivation of this study and its expected contribution is to develop an integrated conceptual model of LO
and KM in the context of a public university in Malaysia which can be used as replication studies for other public
and private universities in Malaysia and in other countries.

2. LITERATURE REVIEW
LO is defined by Watkins (1996) (p.32) as one in which learning and work are integrated in an ongoing and
systematic fashion to support continuous improvement at the individual, group and organizational levels. In
other words, learning takes place in the individuals, teams and organization and even the communities with
which the organization interacts. LO is also said to be about increasing an organizations problem solving
capability and about changing behaviour in ways leading to improved performance at the individual, team and
organizational level (Buckler, 1998).
According to Watkins & Marsick (1993;1996) and (Selden & Watkins, 2001), the characteristics or the seven
complementary action imperatives of LO are to:
1) create continuous learning opportunities,
2) promote inquiry and dialogue,
3) encourage collaboration and team learning,
4) establish systems to capture and share learning,
5) empower people toward a collective vision,
6) connect the organization to its environment and
7) provide strategic leadership for learning
KM is defined as the process of capturing the collective expertise and intelligence in a LO and using them to
foster innovation through continued organizational learning (Davenport, DeLong & Beers, 1998; Meso &
Smith,2000; Nonaka & Takeuchi, 1995; Quinn, Anderson & Finkelstein,1996, Salleh, 2013a & Salleh,Chong,
Syed Ahmad & Syed-Ikhsan, 2013b). The ultimate goal of KM is to convert tacit knowledge (personal ideas and
experiences) from individual knowledge to explicit organizational knowledge (documents, products and
procedures) and utilized shared knowledge across organization effectively (Bennet & Bennet, 2003; Davenport,
et al. 1998; Gupta, Iyer & Aronson, 2000, Nonaka & Takeuchi, 1995; Quinn, et al. 1996). Tacit knowledge
transfer is the process by which tacit knowledge is moved and shared throughout organization through
individuals and groups across various functions by personal, mechanical and electronic means (Hernandez,
2000;2003). Hernandez (2000 ; 2003) had carried out an empirical study to identify the ways the LO dimensions
impact the transfer process of tacit knowledge which can improve the knowledge and financial performance
within the private manufacturing companies in Colombia. The findings showed the positive structural
relationship between the seven LO dimensions and the transfer of tacit knowledge process for a positive
influence on knowledge performance.
The following research model (see Figure 1) is proposed for the hypothesis development and testing the
conceptual relationship between LO and KM in terms of the impact between the seven dimensions of LO and
the KM process of tacit knowledge transfer on the organizational performance of this selected case study of a
public university in Malaysia.

Learning Organization

Organizational
Performance

Continuous Learning
Dialogue & Inquiry
Team Learning

Embedded Systems
Empowerment

System Connections
Leadership
Transfer process of
Tacit Knowledge

Dissemination
Documentation

Figure 1: Research Model

2

Knowledge
performance
Innovation

3.

RESEARCH METHODOLOGY

In this study, a survey questionnaire was used as the main instrument to collect data from all academicians
employed by the selected public university in Malaysia. This selected case study of public university is
Malaysia's largest institution of higher learning in terms of size and population. It has experienced phenomenal
growth since its inception in 1956 and has expanded nationwide with numerous branch campuses, city
campuses and affiliated colleges. This university attempts to become the new centre of academic and research
excellence and expected to become a world class university by 2020.
Questionnaires were posted to total of 900 academicians from 26 faculties which are grouped for the three
clusters of programmes i.e. 1) science and technology, 2) business and management and 3) social sciences
and humanities. Only 99 questionnaires were received and usable for data analysis purposes.
The multiple question items in the questionnaire were adapted from the studies of Watkins and Marsick
(1993;1996) and Hernandez (2000 ; 2003) to identify the ways in which the seven dimensions of the LO and the
KMP of tacit knowledge can improve the organizational performance of a public university. Besides
demographic data, a seven-point scale from 1 to 7 was used for all questions concerning respondents
perceptions on the seven dimensions in the LO environment (42 items), the level of tacit knowledge (12 items)
being disseminated and documented for information accessibility and usability and the organizational
performance in terms of the knowledge performance and innovation (7 items). The Likert-point scale used
ranges from 1 is for almost never, 2 is for seldom, 3 is for occasionally, 4 is for not sure, 5 is for frequently, 6 is
for usually and 7 is for almost always. Statistical Package for Social Sciences (SPSS) version 20 was used to
analyze data collected for statistical analysis and results.
4.

DATA ANALYSIS AND RESULTS

The Cronbach's Alpha is computed to verify the reliability of the data collected and the study variables of this
empirical research. According to Sekaran (2000), the closer the Cronbach's Alpha to 1, the higher the internal
consistency reliability. The Cronbachs Alpha coefficient for each research variable of this study is presented in
Table 1.
Table 1: Coefficient of Cronbachs Alpha
Variables
Learning Organization
Dimensions
1. Create continuous
learning
2. Promote inquiry and
dialogue
3. Team learning
4. Embedded Systems
5. Empowerment
6. System connection
7. Leadership
KM Process of Tacit
Knowledge
Organizational
Performance

Number of
Items

Cronbachs
Alpha Coefficients

42

0.974

0.767

0.899

6
6
6
6
6

0.907
0.886
0.900
0.922
0.943

12

0.943

0.927

The demographic questions for this study consist of the gender of the respondents, the levels of academic
qualification and the cluster/type of faculties in the university. As for the gender of the respondents, about 56%
of the respondents are females. Only 44% of the respondents are males.
Table 2 reveals the academic qualification of the respondents. The majority (53.53%) of the respondents holds
a Masters degree and 34.34% have a Doctoral degree. Most of the respondents (88%) are highly educated and
thus, their responses are useful and relevant to the study.

Table 2: Academic Qualification of Respondents

Current Position
Doctorate Degree (PhD)
Masters Degree
Professional Degree
Degree
Not Stated
Total

Number

Percentage (%)

34
53
5
3
4
99

34.34
53.53
5.05
3.03
4.04
100

In terms of working experience, most of the respondents (66%) have worked in the university for 20 years or
less. Only 15% have worked between 21 to 25 years and 14% have worked between 26-30 years. However,
5% did not state their working experience.
The majority (56%) of the respondents are from science and technology faculties while the remaining
respondents (21%) are attached to the business and management faculties and 21% are from the social
sciences and humanities cluster.
The main objective of this paper is to investigate the effect of seven dimensions of the LO and the KMP of tacit
knowledge which are deemed important in improving the knowledge performance and innovation in this
selected public university in Malaysia. Thus, the following statistical analysis such as factor analysis and
standard multiple regression analysis (Tabachnick and Fidell, 2001) are used to extract the valid factors and to
investigate the relationships between LO components and KMP of tacit knowledge (independent variables) and
the organizational performance of the public university in terms of knowledge performance and innovation
(dependent variable).
Factor Analysis was used to confirm that only six (6) out of seven (7) LO components are in conformity to the
literature review and are valid for this study. This is due to fact that factor analysis for this study has combined
or grouped the two (2) components of LO i.e. empowerment and system connections as one (1) appropriate LO
component. Table 3 shows the summary of factor analysis results, factors and Cronbachs alpha scores to
justify that the study variables in this study were reliable for hypotheses testing via the standard multiple
regression analysis.
Table 3: Summary of Factor Analysis Results, Factors and Cronbachs Alpha Scores
Factors
LO Components
Leadership
Team Learning
Empowerment and
System Connection
Promote Inquiry and
Dialogue
Embedded System
Create Continous Study
KM Process
Tranfer of Tacit
Knowledge
Organizational
Performance
Knowledge Performance
and Innovation

Items
Factor Loadings
Eigenvalue (%)
KMO = 0.899, Sig. = 0.000, Eigenvalue= 71.6%
8
0.612 0.792
49.28
7
0.593 0.764
5.233
8
0.521 0.737
4.462
6

0.509 0.707

3.727

4
0.512 0.668
3.123
3
0.661 0.730
3.105
KMO = 0.917 Sig. = 0.000, Eigenvalue= 72.7%
12
0.870 0.710
72. 7

Cronbachs alpha
0.951
0.915
0.934
0.881
0.862
0.744
0.944

KMO = 0.934 Sig. = 0.000, Eigenvalue= 74.76%

7

0.933 0.778

74.76

0.942

Standard Multiple Regression Analysis was used for finding the relationship model betweem LO components
and KMP of tacit knowledge being identified as independent variables and the organizational performance as
dependent variable. This statistcial technique also helps to identify the significant predictors between LO
components and the KMP of tacit knowledge that could contribute to the knowledge performance improvement
of the selected public university. Table 4 shows the summary of regression results for the research model on
4

the conceptual relationship between LO Components and KMP of tacit knowledge (independent variables) on
the organizational performance (dependent variable).

Table 4: Summary of Regression Results of Relationship Model

An Integrtated Model of LO Components, KMP of Tacit Knowledge and
Organizational Performance
2
R = 0.714
Standard Multiple Regression Result
F = 32.170
Sig. = 0.000***
LO Components
B = Beta Coefficients
P = P-Value
Leadership
B = 0.239
p = 0.036**
Team Learning
B = 0.228
p = 0.024**
Empowerment and System Connection
B = - 0.032
p = 0.789
Promote Inquiry and Dialogue
B = - 0.110
p = 0.230
Embedded System
B = 0.062
p = 0.547
Create Continous Study
B = 0.181
p = 0.021**
KMP of Tacit Knowledge
B = 0.398
p = 0.000***
Dependent Variable
Organizational Performance
Note: Supported Hypotheses in boldface type:***p<0.01, **p<0.05, * p< 0.1

The regression model in Table 4 had presented the integrated model of LO, KMP of tacit knowledge and
organizational performance in this selected case study of a public university in Malaysia. This regression model
shows the value of R-Square is 0.714 or 71.4%. This indicates that the regression model for LO components
and KMP of tacit knowledge explains 71.4% of the variances in the organizational performance. When both
the LO components and KMP of tacit knowledge are regarded as antecedents of organizational performance,
KMP of tacit knowledge is found as the highly significant predictor with p-value = 0.000. The creation of
continous study, team learning and leadership with p-values of less than 5% are among those of moderately
significant LO components that have positive and significant relationship to the organizational performance of
the selected public university.
The result of this study shows that continuous study, team learning and leadership component are important LO
dimensions for the integration concept of the seven LO dimensions with the transfer process of tacit knowledge
via KM concept to improve knowledge performance and innovation in the selected public university in Malaysia.
This survey research discovered that the integration of LO and KM process of tacit knowledge can improve 1)
individuals learning new skills,2) increase the number of research products and patents, 3) increase level of
innovation and improve processes, 4) increase percentage of skilled workers/expertise and 5) increase
percentage of total spending devoted to technology and information processing. The academicians
(questionnaires respondents) had placed greater importance on both human and innovation capital for the
significant effect of LO and KMP of tacit knowledge in improving the knowledge performance of their university.
The following are the top ranked information of KM process of tacit knowledge which are regarded as vital to the
knowledge improvement performance of a public university:
1. Existence of documentation describing administrative procedures,
2. New ideas or methods are disseminated and spread to other colleagues in helping to articulate the
problem,
3. Insights from colleagues across departments were obtained when dealing with complex problems,
4. When encountering operational problems, attempts were made to look at other departments experience for
critical information and knowledge,
5

5.
6.
7.
8.
9.

Faculty/Unit/Institute share with other members what works and what does not work when developing new
ideas,
Parts of the work processes are embodied in software that have been modified/customized,
Cross-functional teams are used to transfer important learning across groups, divisions and departments,
Technology in faculty/unit/institute creates a database that is accessible to the entire organization
Recognition given to the value of the ideas and methods which have been made available to employees
and organization.

The spirit of continuous study, team learning and leadership are among the moderately significant LO
components that are regarded as paramount important to the integration concept of LO and the KMP of tacit
knowledge for the knowledge performance and innovation of the selected public university in Malaysia. The
following components for creating the environment of continuous study, team learning and leadership approach
are considered to be critically important by the respondents for the integration concept of LO and KM in the
selected public university in Malaysia.
1.
2.
3.
4.
5.
6.

Employees help each other to learn through continuous study and learning environment
Team learning can revise their thinking as a result of group discussions or information collected
Team learning can focus on both the groups task and on how well the group is working
Leaders empower employees to help carry out the organizations vision
Leaders generally support requests for learning opportunities and training
Leaders share up to date information with employees about competitors, industry trends and organizational
directions
7. Leaders ensure that the organizations action are consistent with its values
8. Leaders continually look for opportunities to learn
5. CONCLUSION
This survey research has found that the integration of LO and KMP of tacit knowledge as antecedents to
organizational performance of a public university can improve the percentage of skilled workers /expertise,
improve individuals learning new skills, greater levels of innovation and improved processes and increase in
research products and patents.
KMP of tacit knowledge in a public university is found to be highly significance in this integrated model.
Knowledge sharing when developing new ideas, dissemination of new ideas/methods for solving complex
problem, cross-functional teams, database technology and recognition given to the value of new ideas are the
significant items
The spirit of continuous study, team learning and leadership are among the moderately significant LO
components in this integrated conceptual model for the knowledge performance and innovation of this selected
public university in Malaysia.
This finding appears to be consistent with the integration study of LO dimensions and KM process of tacit
knowledge carried out by Hernandez (2000; 2003) on the organizational performance of the manufacturing
companies. Hernandez (2000; 2003) had discovered that the structural relationship between the seven LO
dimensions and the transfer process of tacit knowledge consecutively showed a positive influence on
knowledge performance of the manufacturing organizations in Colombia.

6. ACKNOWLEDGEMENTS
The authors would like to thank the Ministry of Education (MOE) and Universiti Teknologi MARA in Malaysia for
funding this research.
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