Abstract

A synthesis of existing Industry 4.0 literature depicts that knowledge management and decision making strategies are crucial factors for organizations. This article highlights the need and develops a framework for knowledge management and decision-making style by reviewing existing management literature. This research proposes a framework that supports the relationship between knowledge management enabling factors (i.e., organizational member’s collaboration, T-shaped skills, learning and IT-support) and organizational performance, and the mediating effect of knowledge creation process. The article also propose that decision-making style (i.e., intuitive and/or rational) will moderate the relationship between knowledge creation process and organizational performance. A set of propositions that represent an empirically-driven research agenda, and also describe the relationships between the focal variables are presented to enhance audience’s understanding within a business context.

Introduction

Managers are saddled with the responsibility of leading their organizations to achieve objectives and stated goals. This does not only require versatility and prowess, but more adequate knowledge management with excellent decision-making. The term “knowledge” has being viewed and defined from differing perspectives. According to Davenport and Prusak (1998), knowledge is a blend of contextual information, framed experience, expert’s experience and value that results in innovation and pristine experience. Knowledge is also regarded as organizational culture, skills, reputation, intuition, and codified theory that influences human behavior and thought (Hall & Andriani, 2003).

Nonaka (1991) classified knowledge into “Tacit” and “Explicit” knowledge based on the ease for coding and transferring the available knowledge. Explicit knowledge is easily transferable and coded, while tacit knowledge is rooted deeply into the system within the organization. In its passive form, knowledge is useless, however, when activated through creative processes for application, replenishing and sharing, it may lead to outstanding performance. Therein, knowledge management is the process of activating passive knowledge for the benefits of organizations and to gain competitive edge (Duffy, 2000; Van Buren, 1999).