The Case Insights - Series 2

Going through a 12-page comprehensive study from Ida Ketut Kusumawijaya's study sourced in Business Theory and Practise Vol 24 NO 1 (2023) on the linkage between individual value and knowledge creation in human capital on RBV, KBV, BST, case interpretations, measurement & limitations, left me seeking an approach on how a corporate professional could view this scope in taking back the knowledge transfer in resonating sectors, functions, and others.?

Ida Ketut Kusumawijaya's paper "The Linkage between Individual Value and Knowledge Creation in Human Capital" proposes a model that integrates the resource-based view, knowledge-based view, and belief system theory to explain how individual values can contribute to knowledge creation in human capital.

The resource-based view (RBV) argues that firms can achieve competitive advantage by possessing valuable, rare, inimitable, and non-substitutable resources. These resources can be tangible, such as physical assets, or intangible, such as knowledge and skills.

The knowledge-based view (KBV) builds on the RBV by arguing that knowledge is a key source of competitive advantage. The KBV focuses on the creation, acquisition, and transfer of knowledge within organizations.

Belief system theory (BST) argues that individuals' values influence their behavior and decision-making. BST suggests that individuals with similar values are more likely to cooperate and collaborate, which can lead to more effective knowledge creation.

Kusumawijaya's model proposes that individual values can contribute to knowledge creation in human capital through three mechanisms:

Motivation:?Individuals with strong values are more likely to be motivated to learn and share knowledge.

Creativity:?Individuals with different values can bring different perspectives to the table, which can lead to more creative and innovative solutions.

Trust:?Individuals with shared values are more likely to trust each other, which can facilitate knowledge sharing and collaboration.

The model has been supported by empirical research, which has found that individual values are positively associated with knowledge creation in human capital.

Here are some specific examples of how individual values can contribute to knowledge creation in human capital:

A salesperson with a strong value for customer service is more likely to go the extra mile to learn about the customer's needs and provide them with a good experience.

A software engineer with a strong value for innovation is more likely to experiment with new ideas and take risks.

A manager with a strong value for teamwork is more likely to create a collaborative environment where employees feel comfortable sharing knowledge.

Overall, Kusumawijaya's model provides a useful framework for understanding how individual values can contribute to knowledge creation in human capital. The model can be used by organizations to design strategies that promote knowledge creation and innovation.

Case Study:

A manufacturing industry company faces challenges in maintaining its competitive edge. The company's products are becoming increasingly commoditized, and its customers are demanding more customized and innovative solutions. The company's management team believes that the key to maintaining its competitive edge is to improve its knowledge-creation capabilities.

The company's management team decided to conduct a study to identify the factors that are most important for knowledge creation in human capital.

Here are some additional interpretations of the study's findings:

Individual value:?The study's finding that individual value is important for knowledge creation suggests that organizations should focus on hiring and developing individuals who have a strong sense of personal value. These individuals are more likely to be creative and innovative, and they are also more likely to be willing to share their knowledge with others.

Knowledge sharing:?The study's finding that knowledge sharing is important for knowledge creation suggests that organizations should create a culture that encourages knowledge sharing. This can be done by providing opportunities for individuals to share their knowledge, and by rewarding individuals for sharing their knowledge.

Collaboration:?The study's finding that collaboration is important for knowledge creation suggests that organizations should encourage collaboration among individuals. This can be done by creating teams and projects that bring together individuals with different knowledge and skills.

Leadership:?The study's finding that leadership is important for knowledge creation suggests that organizations should have leaders who are committed to knowledge creation. These leaders can create a culture that encourages knowledge-sharing and collaboration, and they can also provide the resources and support that individuals need to create new knowledge.

Overall, the findings of this case study suggest that individual value, knowledge sharing, collaboration, and leadership are all important factors for knowledge creation in human capital. These factors can be used to create a culture of knowledge creation in organizations, which can lead to improved innovation and competitiveness.

Here is an example of how the findings of this case study can be applied to a specific organization:

A company in the healthcare industry is facing challenges in keeping up with the latest medical advances. The company's management team decided to implement a knowledge management system to help employees share their knowledge and expertise. The system includes a knowledge repository, a discussion forum, and a wiki. The company also provides training on how to use the system.

The knowledge management system has been successful in helping the company to improve its knowledge-creation capabilities. Employees are now more likely to share their knowledge, and they are also more likely to collaborate on projects. The company has also seen an improvement in its innovation capabilities.

The case study and interpretations above provide insights into the importance of individual value, knowledge sharing, collaboration, and leadership for knowledge creation in human capital. These factors can be used to create a culture of knowledge creation in organizations, which can lead to improved innovation and competitiveness.

The measurement model analysis in Kusumawijaya's paper examines the validity and reliability of the measurement scales used to measure the constructs in the model. The constructs in the model are individual value, knowledge creation, and human capital.

The measurement model analysis used confirmatory factor analysis (CFA) to test the following hypotheses:

The individual value construct is unidimensional.

The knowledge creation construct is multidimensional, with four dimensions: socialization, externalization, combination, and internalization.

The human capital construct is unidimensional.

The results of the CFA supported all the hypotheses. The individual value construct was found to be unidimensional, meaning that it is a single construct that is measured by a single scale. The knowledge creation construct was found to be multidimensional, with four dimensions that are each measured by a separate scale. The human capital construct was also found to be unidimensional.

The measurement model analysis also examined the reliability of the measurement scales. The reliability of a measurement scale refers to its ability to consistently measure the construct that it is intended to measure. The results of the reliability analysis showed that all the measurement scales had good reliability.

The measurement model analysis provides evidence that the measurement scales used in Kusumawijaya's paper are valid and reliable. This means that the scales can be used to accurately measure the constructs in the model.

Here are some specific interpretations of the measurement model analysis results:

The finding that the individual value construct is unidimensional suggests that there is a single underlying dimension of individual value that is captured by the scale. This is consistent with the idea that individual values are a set of beliefs and principles that guide an individual's behavior.

The finding that the knowledge creation construct is multidimensional suggests that there are four distinct processes involved in knowledge creation.

These processes are socialization, externalization, combination, and internalization. This is consistent with the view that knowledge creation is a complex process that involves the sharing, transformation, and integration of knowledge.

The finding that the human capital construct is unidimensional suggests that there is a single underlying dimension of human capital that is captured by the scale. This is consistent with the idea that human capital is a set of knowledge, skills, and abilities that are possessed by an individual.

Overall, the measurement model analysis provides strong support for the validity and reliability of the measurement scales used in Kusumawijaya's paper. This means that the scales can be used to accurately measure the constructs in the model, which can be used to understand the relationship between individual values and knowledge creation in human capital.

They say that the study has limited generalizability because it was conducted among only medium-sized companies & and others.

For a professional, the study findings can be interpreted across different types of organizations, but the specific relationships between individual values, knowledge creation, and human capital may vary.

For example, in SMMEs, individual values may have a stronger direct effect on human capital than in large corporations. This is because SMMEs often have flatter hierarchies and more informal communication channels, which can make it easier for individual values to be communicated and shared.

The role of knowledge creation as a mediator between individual values and human capital may also vary across different types of organizations. In organizations that are knowledge-intensive, such as large corporations, knowledge creation may play a more important role in mediating the relationship between individual values and human capital.

This is because knowledge-intensive organizations rely on the sharing and exchange of knowledge to create new products and services.

Conclusions:

The study found that individual values have a positive effect on each of the four dimensions of knowledge creation: socialization, externalization, combination, and internalization. The study also found that knowledge creation has a positive effect on human capital. The study suggests that organizations can promote knowledge creation by creating a culture that values individual values and supports knowledge sharing and collaboration. The study's findings have implications for both theory and practice. In terms of theory, the study provides support for the resource-based view, knowledge-based view, and belief system theory. In terms of practice, the study suggests that organizations can promote knowledge creation by paying attention to the values of their employees and creating a culture that supports knowledge sharing and collaboration.

As a life-long learner, any research can add value & and be respected.