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10120140504009

  1. 1. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 73-88 © IAEME 73 ANALYSIS OF KNOWLEDGE MANAGEMENT IMPLEMENTATION AT THE STATE-OWNED ENERGY SECTOR COMPANIES IN INDONESIA Sri Suwarsi Doctoral Student, Economic and Business Faculty of Padjadjaran University, Bandung, Indonesia Lecturer of Bandung Islamic University, Bandung, Indonesia Ernie Tisnawati Sule Professor, Economic and Business Faculty of Padjadjaran University, Bandung, Indonesia Hilmiana Associate Professor, Economic and Business Faculty of Padjadjaran University, Bandung, Indonesia Arief Helmi Associate Professor, Economic and Business Faculty of Padjadjaran University, Bandung, Indonesia ABSTRACT An organizational environment has undergone dramatic change lately. To be able to win the competition in the long term, the company should have the right strategy. In this case, the main task of a leader associated with the management of human capital is how to encourage optimal performance of human resources through the implementation of knowledge management to facilitate knowledge workers to trasfer knowledge, so that he ables to construct, renew, and applying knowledge to achieve organizational effectiveness. The successful implementation of knowledge management in this research could be measured by the 7 (seven) dimensions, namely: (1) Knowledge Creation, (2) Knowledge retention, (3) Knowledge transfer, (4) Knowledge Utilization, (5) Managerial and Leadership suports, (6) Corporate Entrepreneurship, (7) Application of technology. The units of analysis in this study were the state-owned energy sector companies in Indonesia, because these state companies have strategic roles in the Indonesian economy, especially to ensure the availability of sources of energy supply to drive the industries in the process of production, consumption, as well as a source of foreign exchange earnings. The research methods were description and verification. The populations of study were all the branch offices or regional offices on the 5 (five) state-owned energy sector companies in Indonesia. The units of observation in this study were represented by the secondary manager, line manager and employees of the state- INTERNATIONAL JOURNAL OF MANAGEMENT (IJM) ISSN 0976-6502 (Print) ISSN 0976-6510 (Online) Volume 5, Issue 4, April (2014), pp. 73-88 © IAEME: www.iaeme.com/ijm.asp Journal Impact Factor (2014): 7.2230 (Calculated by GISI) www.jifactor.com IJM © I A E M E
  2. 2. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 73-88 © IAEME 74 owned energy sector companies in Indonesia, which were 245 respondents spread over 25 (twenty five) branch offices in thoroughly Indonesia. The result showed that the implementation of knowledge management as measured by the 7 (seven) dimensions was classified well. The ranks of the seven dimensions were the highest score was management and leadership suports, the second was the aplication of technology, the corporate entrepreneurship was the third, the fourth sequence was the knowledge transfer, the knowledge retention was the fifth, the sixth dimension was occupied by the knowledge utilization and knowledge creation. Based on the average right side test (µ > 6), the results are significant at the 5% significance level and the statistical null hypothesis was rejected. This means that the implementation of knowledge management has been achieved well. Based on the measurement model (outer model and the loading factor) with PLS, it could be concluded that the dimensions of corporate entrepreneurship greatest effect on the variable, and it was able to predict the dimensions of knowledge management utilization, and the dimensions of application technology was only able to predict the implementation of knowledge management. Keywords: Knowledge Management, Knowledge Creation, Knowledge Retention, Knowledge Transfer, Knowledge Utilization. BACKGROUND RESEARCH Changes in the business environment is strongly to influence organizations, so they requires organizations to constantly adapt to the changing demands of the various alignment with the various environmental changes on the variety of strategies and policies, especially in terms of increasing human knowledge. Generally, the state-owned energy sector company problems in Indonesia mostly caused by various factors, both internal and external factors. The internal factors are the lack of a culture of creativity to come up with ideas, mostly focused on achieving profit and ignore the human capital development, and so on. Thus, the organizational performance is not optimal, such an attitude of service, innovation, productivity, and quality of human resources that lead to superior organizational culture. In fact, the government organizations and state-owned companies currently face high demands in terms of service, nevertheless, based on research Barzelay (1992), the public organization progress in terms of performance has not improved, that one factor is knowledge (best practice) that was owned by the state was minimal. Besides that, the state-owned energy sector companies were very limited in the control best practices to provide effective service and low competitiveness. Since the privatization program by the government to provide the opportunity for the state-owned energy sector companies to go public and direct placement, inevitably, the performance of the state-owned energy sector companies should spur them to face competition in the global market, as well as a manifestation of the company's commitment to the confidence of stakeholders, especially the shareholders. Besides the state-owned companies are also expected to expand into overseas markets, as well as some of China's state-owned energy which is currently acquiring energy resources abroad in anticipation of domestic energy security needs, and even according to the Fortune 500, there are three Chinese state-owned energy the top 10 companies are China National Petroleum, Sinopec and State Grid. While in Indonesia, yet none of the state-owned companies that made it even into the 500 list of large companies. Along with the increasing population growth, economic activity, industry and technology, it will also increase the need for the provision of energy to drive the activity. While on the other hand, the state-owned energy sector companies still plenty of resources to rely on fossil energy
  3. 3. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 73-88 © IAEME 75 supply which are very limited and non-renewable, such as oil, gas, and coal. If we look at the elasticity of energy in Indonesia compared with other countries, it is still high. The energy elasticity is the ratio between the growth rate of energy consumption with economic growth. The smaller the elasticity, the more efficient use of energy in a country. The energy source used for industry in Indonesia comes from electricity, and fuels derived from fossil fuels such as diesel, gasoline and gas. This energy source is very important role in industrial development and an increasingly modern society. By looking at the conditions expected state-owned energy sector companies need to create new breakthroughs in making strategic energy planning in Indonesia environmentally sound, raise the price of energy so as to suppress the drop in energy demand, developing technologies to produce energy more efficiently, and increase the creation of renewable energy innovation, energy include water, energy mini / micro hydro, geothermal, biomass , solar energy and wind energy. While it is to create a climate of innovation and learning processes, they companies can implement the knowledge management, but the implementation requires a favorable climate for the development of knowledge, maintenance of knowledge, transfer of knowledge, application of knowledge, leadership support, knowledgeable staff, and the support of technology. With a structured knowledge management and integrated systems, the state-owned energy sector companies in Indonesia have a lot of knowledge workers as a source of knowledge creation and corporate entrepreneurship in the face of complex challenges, Jones (2000). To assess whether the application of knowledge management in the state-owned energy sector companies in Indonesia has been able to improve organizational performance, it requires evaluation. By the implementation of knowledge management performance assessment can be determined whether the implementation of knowledge management has been achieved well or not. BASIC THEORY Implementation of Knowledge Management is a process for creating, documenting, sharing, and to update the knowledge in the organization is supported by the company's main pillars which include Leardership, and technology, so that it becomes a culture of knowledge sharing in the company (Nonaka,2009; Alavi (2001); Newman (1999) Meanwhile, according to Davenport (1998) there are five strategies for implementing KM, namely; Managerial, Leadership, Corporate Entrepreneurship, Organizational structure. KM sharing and retention. Newman & Conrad (2000) described the process of implementing KM models in four main activities, namely: (1) Knowledge Creation, which is an activity associated with the entry of new knowledge into the organization that includes the development of knowledge, knowledge discovery, and absorption of knowledge, (2) Knowledge retention, which is an activity associated with the maintenance and storage of knowledge, including knowledge of activities to keep the knowledge remains within the organization, (3) Knowledge transfer, which is an activity that is related to the flow of knowledge from one party to the other party, which includes communications, translation, conversion, filtering and knowledge translation, (4) Knowledge Utilization, which is an activity associated with the application of knowledge to the organization's business processes. The successful implementation of knowledge management can also follow the criteria MAKE (Most Admiral Knowledge Entreprises) Award was initiated by Teleos that serve as the award through a national competition, Asia and globally. There are 8 indicators that serve as the success of KM, namely: Knowledge driven culture, Knowledge workers, Knowledge-based products/services/solutions, Maximizing entreprise intellectual capital, Collaborative knowledge
  4. 4. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 73-88 © IAEME 76 sharing, learning organization, Value based on customer knowledge, Transforming enterprise knowledge into wealth organization. Based on the study of Chong (2005), Wong (2009) and Albers (2009), there are eight factors were seen as a key factor in the successful implementation of knowledge management, namely: (1) a structured process, (2) the existence of people who are experts, (3) the presence of a champion, (4) the support of upper management, (5) organizational culture, (6) information technology support, (7) the existence of a special unit of knowledge management and (8) clear measure of success. Based on a variety of these opinions, then the application of knowledge management performance measurement in this study can be measured with 7 (seven) dimensions, can be seen in the following Table 1: Tabel 1: The Dimension of Implementation Knowledge Management Dimensions of critical factors Related research studies Knowledge Creation Nonaka & Takauchi : 1995; Horwitch & Armacost :2002; Allee: 1997; Davenport: 1998; Alavi & Leidner :2001; Bassi ; 1997; De Jamet :1996; Scarborough :1999; dan Newman & Conrad (2000) Knowledge Retention Schultze & Leidner :2002; Horwitch & Armacost :2002; Laodon :1999; Bassi ; 1997;Quintas :1997; Scarborough :1999; dan Newman & Conrad (2000) Knowledge Transfer Maggie Haines: 2002; Schultze & Leidner :2002; Hansen & Nohira : 1999; Bhatt : 2001; Allee: 1997; Davenport: 1998; Alavi & Leidner :2001; Huysman & De Wit : 2000; Beckman :1999; Bassi ; 1997; Bassi ; 1997; De Jamet :1996; Scarborough :1999; dan Newman & Conrad (2000) Knowledge Utilization Abell & Oxbrow :2001; David J Skyrme :1997; Beijerise : 1999; O’Dell : 1997; De Jamet :1996; Scarborough :1999; dan Newman & Conrad (2000) Management and Leadership Suport Scarborough & Carter :2000; ( Nonaka : 2002; Alavi & Leidner: 2001 , Newman & Conrad :2000); Kusno Prijono : 2008; Jones : 2002; Davenport :1998; Chong :2005; Wong : 2005; dan Albers : 2009. Corporate Entrepreneurship Hibbard : 1997; Jones : 2002; Malhotra : 1998; Beckman : 1999; dan Scarborough & Carter :2000. Application of Technology Hansen & Nohira : 1999; Davenport :1998; Snowden: 1998; Bassi ; 1997; Frappaulo & Toms :1997; Nonaka : 2002; Alavi & Leidner: 2001 , dan Newman & Conrad :2000). RESEARCH METHODS The method of analysis used in this study was divided into two parts: (1) Descriptive analysis and (2) inferential analysis. The unit of analysis of this study was the organization, namely Branch Offices / Regional Offices of state-owned energy sector companies in Indonesia,
  5. 5. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 73-88 © IAEME 77 which is spread over 25 (twenty five) branch offices or regional offices in thoroughly Indonesia on the 5 (five) state-owned energy sector companies in Indonesia.The unit of observation in this study was the number of 245 respondents consisting of 38 middle managers, 67 line managers and 140 employees / staff to assess how their perceptions of the variables being studied. This questionnaire using Graphic Rating Scales in which respondents were asked to choose each question with an answer on a scale of continum from 1 to 10, and their perceptions of the phenomenon that was going through the survey. The scale used in the questionnaire was an interval scale. DISCUSSION Entry Level Analysis of New Knowledge into the Organization The knowledge creation is in the implementation of knowledge management activities associated with the entry of new knowledge into the organization which can be measured by the frequency of the development of new knowledge in the organization, the frequency of new discoveries in the organization and knowledge absorption capability in the organization. The implementation of knowledge management in knowledge creation dimensions were measured using 3 point questions, the results can be seen in the following Table 2. Table 2: Entry Level of New Knowledge in Organizations No. Item Questions Average Score Criteria 1 The level of development of new knowledge in the organization 6.96 high enough 2 The frequency of discovery of new knowledge in the organization 6.75 quite often 3 Knowledge absorption capabilities of employees in the organization 6.84 quite capable Sources: Processing questionnaire data in 2014 The summary results for the respondents knowledge creation dimension in the knowledge management implementation indicate that the implementation of knowledge management in the state-owned energy sector companies in Indonesia was quite good, meaning that the implementation of knowledge management in the form of the entry into organizational knowledge, as measured by the level of development of new knowledge in the organization considered quite high, the frequency of discovery of new knowledge in the organization considered quite often, and knowledge absorption capabilities of employees in the organization considered quite capable. The knowledge creation in the knowledge management is the process of beginning to get the process of knowledge creation, organization, dissemination and utilization of knowledge in organizations. A good model of learning from a variety of information that exists outside the organization will improve the quality of judgment and knowledge in order to create knowledge (knowledge creation). Based on the data from many things were done by the state Energy Sector in Indonesia to create knowledge creation in the organization, some of them to form the KM CoP (Community of Practice) to create a forum sharing, collaboration and problem solving in the form of Sharing & Discussion Forum (FDS), Peer Group Discussion (FGD), and the Working Group Discussion (WGD).
  6. 6. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 73-88 © IAEME 78 Maintenance Activity, Storage and Knowledge Organization Keeping Analyses The knowledge retention is the implementation of knowledge management activities associated with the maintenance and storage of knowledge, including knowledge of activities to keep the knowledge remains within the organization. The knowledge retention can be measured by the level of maintenance of an environment conducively to knowledge sharing, company or organization's ability to document the existence of knowledge within the organization and continuity of knowledge sharing as a means to retain knowledge. The implementation of knowledge management in knowledge retention dimension was measured using 3 point questions. The results can be seen in the following Table 3. Table 3: Maintenance Activity, Storage and Organizational Knowledge Keeping Assessments No. Item Questions Average score Criteria 1 Climate for sharing knowledge 7.00 Conducive 2 The ability of an organization to document knowledge 6.83 Good Enough 3 Knowledge sharing routines 6.76 Simply Routine Sources: Processing questionnaire data in 2014 The summary scores for the dimensions of the calculation results in the retention of knowledge knowledge management implementations described above indicated that the activities of maintenance, storage, and how to maintain organizational knowledge on the state-owned energy sector companies in Indonesia was quite good, meaning that the implementations of knowledge management in that companies in Indonesia have supported with a climate that was conducive to sharing knowledge among members of the group, the ability to document that knowledge was not lost quite good, and routines for knowledge sharing fairly routine. The climate conduciveness were to share knowledge through a variety of ways, either directly or indirectly. The direct sharings were through the meeting forum, innovation forum, discussion and problem solving. The indirect sharings were through the library, e-library, knowledge center, internet media and email. As for the activities of maintenance, storage and how to maintain knowledge on state-owned energy sector companies in Indonesia and based on the observation and documentation, it can be explained as follows PT Pertamina has implemented a culture of knowledge sharing through a knowledge portal implemented formally or informally through a container called a community of practice. Various activities of maintenance, storage and method to retain knowledge that other organizations such as PLN in (1) inventory and acquisition of knowledge through: knowledge capturing, library, e-library, knowledge center, (2) knowledge activity through: engineering forums, innovation forums, discussion forums for sharing problems, collaborations, discussion forum sharings, peer group discussions, working group discussions. While among regions throughout Indonesia, the sharing knowedge conducted periodically by presenting senior officials and experts who were attended by the representatives of each unit. It aimed for sharing knowledge and experience for a precaution in case of similar problems in other generating units. Analysis of Willingness to Share Knowledge, Usefulness Forum, and Frequency Translation of Knowledge Knowledge transfer is an activity in the implementation of knowledge management related to the flow of knowledge from one side to the other parties, which include communication,
  7. 7. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 73-88 © IAEME 79 conversion, filtering, and the translation of knowledge through the forums. This activity can be measured by the ability of employees to share knowledge between colleagues, use the forum to gain new knowledge, and the frequency of communication and translation of knowledge through learning process. The implementation of knowledge management in knowledge transfer dimension was measured using a 3 point question, the results can be seen in the following Table 4. Table 4: The Level of Willingness to Knowledge Sharing, Benefit Forum and Frequency Translation of Knowledge No. Item Question Average Score Criteria 1 The level of willingness to knowledge sharing 6.94 High enough 2 The usefulness of the forum to gain knowledge 6.91 Quite Helpful 3 Frequency translation of knowledge through communication 6.77 Quite Often Sources: Processing questionnaire data in 2014 Respondents to the dimensions of knowledge transfer in knowledge management implementation indicate that the level of willingness to share knowledge, usefulness forums, and frequency translation of knowledge were good enough. This means that the implementations of knowledge management in the state-owned energy sector companies in Indonesia were supported by the willingness of individuals to share knowledge between individuals or groups were high enough. The benefit of the forum to gain knowledge was quite useful, and the degree of elaboration of knowledge through communication was still considered quite often. The success of knowledge transfer in the implementation of knowledge management was largely determined by the willingness of each individual to share knowledge. In many cases, the failures were due to the implementation of knowledge management aspects of behavior that is an unwillingness to share knowledge, indiscipline in writing what had been in what from the work process (experience) and tend to the oral culture, still at least the employees who use the forum to gain knowledge, and difficulties in the translation of knowledge into effective communication. To support the success of knowledge transfer in the state-owned energy sector companies in Indonesia, it has been implemented knowledge management. For example, in Pertamina, it called comet which was launched in November 2008. Portal Pertamina which is a portal that uses web- based technologies for making knowledge sharing for all stakeholders. The knowledge sharing activities intended that each worker can share experiences and knowledge among colleagues. Various methods have been carried some of the state-owned energy sector companies to get the involvement and willingness of employees to share knowledge both offline and online. The off- line activities include expert, roundtables, workshops, bulletin media, and company news. While, the on-line activities include the community of practice, knowledge center, and ask the expert. Analysis of the Application of Knowledge to Business Processes Knowledge utilization is an activity in the implementation of knowledge management related to the application of knowledge into business processes. The activity knowledge utilization can be measured through the level of willingness of employees to share knowledge among colleagues, the use of forums to gain knowledge, and frequency translation of knowledge through communication and learning. The implementation of knowledge management in the utilization of this knowledge dimension was measured using a 4 point questions. The results can be seen in the following Table 5.
  8. 8. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 73-88 © IAEME 80 Table 5: Application of Knowledge into Business Processes No. Item Question Average Score Criteria 1 Frequency of product development / knowledge-based solutions 6.7 quite Often 2 Knowledge management capabilities to create value human 6.82 Capable Enough 3 Knowledge management capabilities to create value for stakeholders 6.91 Capable Enough 4 The structure of the application process knowledge 6.89 Structured Enough Sources: Processing questionnaire data in 2014 The results for dimensions of the respondents' assessment of knowledge utilization in the implementation of knowledge management were the application of knowledge to indicate the business process in the implementation of knowledge management in the state-owned energy sector companies in Indonesia were quite good. It means the utilization of the results of the implementation of knowledge management which includes the frequency of development of the product / solution knowledge base was enough often, the knowledge management capabilities to enhance the value of human to human capital and the value for stakeholders were capable enough, as well as the knowledge of the application structured processes were quite structured. The results of these assessments over a portrait of that application knowledge into business processes in the state-owned energy sector companies in Indonesia were in good levels. In other words they were not optimal yet, because the knowledge utilization was a measure of the utilization of the implementation of knowledge management in order to increase the value of the actual activities of the organizations. In this case, it can be explained from the observation and documentation that the application of knowledge in the business process can be done in various ways : (1) the forum, this method allows its members to gain as much knowledge as possible through the process of interpersonal communication about the topics through questioning and interaction directly where any new information and knowledge can be distributed and received by the employees, (2) the media, through the media, the company seeks to share knowledge to stakeholders through information that was explicit knowledge. In addition, to share the corporate knowledge, they can also do the evaluation and improvement of the company through customer feedback form of input and criticism from customers, (3 ) on-line portal, used as a means for employees in order to work optimally seek information and knowledge easily and quickly, and also as a means to transfer knowledge that is more active, faster, and without a limit of distance and time. If the levels were measured by using maturity models in the implementation of knowledge management in the state-owned companies in the Energy Sector in Indonesia is categorized in level 3. It was a common process and approach, that characterized by the utilization rate results in real business activity that was assessed fairly. Thus, the real results of the knowledge management were still not optimized yet to improve the effectiveness and efficiency in the economies of scale. Analysis of Leadership Support Level in Implementation of Knowledge Management The implementation of knowledge management can run optimally if there is support from the leadership with concrete steps to realize the implementation of knowledge management in any business activity. The management support includes top management support, the existence of a special unit to carry out activities of knowledge management is one form of management support, and the willingness of leaders to make knowledge sharing as a work culture of the organization. The
  9. 9. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 73-88 © IAEME 81 implementation of knowledge management on management and leadership support dimension was measured using a 3 point question. The results can be seen in the following Table 6. Table 6: The leadership support level in the implementation of knowledge management No. Item Question Average Score Criteria 1 Top-level management support in the implementation of KM 7.18 support 2 Performance special unit set up to run the activities of KM 7.03 high 3 The willingness of the leadership to make knowledge sharing as the organization's work culture 7.36 high Sources: Processing questionnaire data in 2014 The respondents to the dimensions of management and leadership support in the implementation of knowledge management in the state-owned energy sector companies in Indonesia were considered good. It means that the implementation of knowledge management has got the support from upper management, supported by the high performance of a special unit set up to execute knowledge management activities, and also the presence of a high willingness to make knowledge sharing leadership as the organization's work culture . The Implementations of knowledge management initiatives were good involvement in all levels of the organization, the level of strategic, operational and tactical levels. In the framework of implementation of any system in the organization, it will be able to work optimally if they received the full support and commitment from top management. Similarly, in the implementation of knowledge management it needs the support of top management and involvement under management for successful implementation of knowledge management. The implementation of knowledge management initiatives are good involvement in all levels of the organization, for the level of strategic, operational and tactical levels, because the leadership role in providing support in terms of providing resources and funding, motivating, organizing and evaluating the implementation of knowledge management. The good management support and leadership in the implementation of knowledge management in the state-owned energy sector companies become succesfull of capital importance in the implementing knowledge management. Analysis of Entrepreneurship Cultural Climate Level as Result of Implementation Knowledge Management Corporate entrepreneurship is a measure of the success of the implementation of knowledge management in the company, namely the extent to which emerging entrepreneurial culture within the organization in order to representing a new product / service. Dimensions of corporate entrepreneurship can be measured by the number of knowledge workers (workers knowledgeable) in the organization that is able to create innovations, improved problem solving in the organization, and increased employee expertise in support of the development process, new products or services within the organization. The implementation of knowledge management in the corporate dimension was measured by using 3 entrepreneurhip questions. The results can be seen in the following Table 7.
  10. 10. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 73-88 © IAEME 82 Table 7: Entrepreneurship Cultural Climate levels as a resulting of knowledge management implementation No. Item Question Average Score Criteria 1 The number of knowledge workers (knowledgeable employees) 7.22 many 2 Support a culture of learning effort, the process of problem solving, and innovation 6.97 Supporting enough 3 Increased employee expertise in supporting the development of processes, products / services that are new 7.08 high Sources: Data processing questionnaire in 2014 The assessment results for the dimensions of the respondents indicated that the implementation of knowledge management in the state-owned energy sector companies in Indonesia was considered by the aspect of corporate entrepreneurship, meaning that the implementation of knowledge management has resulted in the many knowledge workers, lack of support enough as a culture of learning, problem-solving process, and innovation, as well as an increase in high-skill employees in supporting the development of processes, products / services those were new. The knowledge management system that treats intellectual capital is as an asset that needs to be managed so as to create widespread knowledge workers in the organization because of the continuous learning process, and is able to create the expertise of employees to support the development and creation of new products and services to meet the demands current business developments. Especially business in the field of energy, it is need for new breakthroughs to create new sources of energy in anticipation of the new scarcity of fossil energy sources to switch to renewable energy. It requires employees to create a knowledgeable and skilled corporate entrepreneurship. Application of knowledge management in an organization will be visible when the knowledge add value and will increase in size if used in knowledge transfer or knowledge sharing in the form of delivery of a place, person or other parties. Implementation of knowledge management will also serve members of the organization in the mental construct of entrepreneurship, innovation and the knowledge to master the problem and the solution. This case is in line with studies by Liebowitz and Chen (2003). The implementation of knowledge management will also encourage individual behavior for continuous learning and sharing that will be a source of creativity and innovation. The stages that have been undertaken by the state-owned energy sector companies in creating a climate of entrepreneurial culture were through awards both within and outside the country. For example, in 2011, Pertamina received an award at the event Indonesian, Most Admired Knowledge Entreprise (MAKE ), and in 2012 the event of MAKE Award based on Knowledge Management organized by PT Dunamis Organization has won one state-owned company engaged in the field of knowledge-based energy that the most admired in Indonesia. Analysis of Role of Technology in Knowledge Transfer Process The application technology is a dimension to measure the extent of technology play a role in the process of knowledge transfer means whether the implementation of knowledge management is supported by both technology and documentation in the process of knowledge transfer within the organization. In addition, the level of access to which applications to share knowledge across all
  11. 11. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 73-88 © IAEME 83 areas of the division / branches or regions that are not limited by distance and time and the level of content on-line updating of the knowledge which is used as a reference source. The dimensions of knowledge management implementation in the application of this technology were measured using a 3 point questions. The results can be seen in the following Table 8. Table 8: The role of technology in knowledge transfer process No. Item Questions Average Score Criteria 1 Information technology support for knowledge transfer process 7.29 high 2 Frequency of access level existing applications to share knowledge 7.00 often 3 The level of on-line updating of content as a reference source of knowledge 7.01 high Sources: Data processing questionnaire in 2014 Based on the results of the respondents' assessment of the role of technology in the knowledge transfer process, it indicated that the implementations of knowledge management in the state-owned energy sector companies in Indonesia have been well supported by the technology. This means that the implementation of knowledge management has been supported by high technology in the process of knowledge transfer; higher frequency (often), the level of access existing applications to share knowledge, and has been supported by the high level of content on-line updating used as a reference source to gain knowledge of employees. No doubt, the implementation of knowledge management is now different from the old era, where that current developments in information technology can be utilized to increase the speed and ease in the process of acquiring and sharing knowledge without being limited by distance and time. The main successful key of implementation of knowledge management consists of three main components, namely people, place and content. Based on the observation and documentation, state-owned energy sector companies have had web site connected centrally with the Ministry of state-owned energy sector companies. Every state- owned energy sector company had a web site that can be accessed by employees, partners, and consumers who want to know various things about the company, and open a dialogue via email, facebook, tweeter and a hotline. In addition, each state-owned energy sector company for smooth communication among workers and between management and labors have had and developed a corporate portal that can be exploited and optimized by all workers to support communication in their daily work, which features, among others: (1) corporate e-mail as a communication medium, (2) the application of e- mail archiving sms to administer, (3) the application of e-absent to monitor the presence of workers; application of knowledge management as a means of sharing knowledge and best practice in their field of work each. Table 8 describes the overall perception of the implementation of knowledge management in thye state-owned energy sector companies in Indonesia, that measured by the 7 dimensions of the actual value of 6.97 as classified quite well.
  12. 12. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 73-88 © IAEME 84 Table 9: Recapitulation implementation of knowledge management of state-owned energy sector companies in Indonesia Dimension Total score Category Knowledge Creation 6.85 Good Enough Knowledge Retention 6.86 Good Enough Knowledge Transfer 6.87 Good Enough Knowledge Utilization 6.85 Good Enough Management and Leadership Suport 7.19 good Corporate Entrepreneurship 7.09 good Application of Technology 7.10 good Number Average Good Enough The sample size 245 Item 22 Actual Value 37.555 6.97 Sources: Processing questionnaire data in 2014 Based on the seven dimensions, when assessed by the categories,there are 4 dimensions categorized quite well, which includes the dimensions of knowledge creation, knowledge retention, knowledge transfer, and knowledge utilization. This means that the state-owned energy sector companies in Indonesia in the implementation of knowledge management were not optimal from the aspect of : a) the rate of entry of new knowledge into the organization, b) the maintenance activity and how to maintain storage of organizational knowledge, c) the level of willingness to share knowledge, usefulness forums, and frequency translation of knowledge, d) the application of knowledge into business processes. While, the dimensions are categorized covering management and leadership suport, corporate entrepreneurship, technology and user application. This means that the state-owned energy sector companies in Indonesia in the implementation of knowledge management have been aspects: a) the level of leadership support in the implementation of knowledge management, b) the level of entrepreneurial cultural climate as a result of the implementation of knowledge management, c) the role of technology in the process of knowledge transfer. Table 10: Proportion test variables variables Ideal Average Actual average STD Z Remarks Knowledge Management 6 6,97 1.191 4.087 significant ** significance at the real level 0,05 (Ztabel = 1,645) Source: Analysis Questionnaire, 2014
  13. 13. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 73-88 © IAEME 85 Hypothesis H0: µ = 6 : Implementaion Knowledge management has not been achieved with either H1 : µ>6 : Implementation of knowledge management has been achieved with good Based on the Table 10 above, it can be explained that the average test the right to knowledge management variables, the results are significant at the 5% significance level and a statistical null hypothesis is rejected. This means that the implementation of knowledge management has been achieved well. Table 11: Outer model PLS Latent variable Manifest variables Original Sample Standard Deviation (STDEV) Standard Error (STERR) T Statistics (|O/STERR|)Outer loadings Outer weights (O) KM X1 0.981969 0.150112 0.003423 0.003423 43.849203** X2 0.971025 0.147161 0.002023 0.002023 72.749041** X3 0.956317 0.145458 0.001961 0.001961 74.171026** X4 0.984195 0.149433 0.003251 0.003251 45.963050** X5 0.965157 0.146447 0.001867 0.001867 78.449489** X6 0.960664 0.150260 0.003984 0.003984 37.717611** X7 0.930354 0.148147 0.003195 0.003195 46.363723** The Measurement Model Implementation of Knowledge Management The measurement model (outer model) for latent variables predicted by the dimensional knowledge management that knowledge creation (X1), knowledge retention (X2), knowledge transfer (X3), knowledge utilization (X4), management and leadership support (X5), corporate entrepreneurship (X6), and application of technology (X7), can be described as following Figure 1. Measurement model KM (X) X1 = 0.150112 X + 0.0357 X2 = 0.147161 X + 0.0571 X3 = 0.145458 X + 0.0855 X4 = 0.149433 X + 0.0314 X5 = 0.146447 X + 0.0685 X6 = 0.150260 X + 0.0771 X7 = 0. 148147 X + 0.1344 Figure 1: Knowledge management measurement model X1 X2 X 0.0357 0.0855 0.150112 X3 0.0314 X4 X5 0.147161 0.145458 0.149433 0.146447 0.0571 0.0685 0.0771 X6 X7 0.150260 0.148147 0.1344
  14. 14. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 73-88 © IAEME 86 In the measurement model of knowledge management, the dimension that had most weighs (outer weight) was the corporate entrepreneurship (X6) of 0.150260, while the smallest dimension weight was possessed by the knowledge transfer (X3) of 0.145458. While, the largest value of the raw payload (outer loading) was possessed by dimensions of knowledge utilization (X4) of 0.984195 and the comunality as 0.9686. It means the knowledge utilization dimension able to predict the knowledge management of 96.86% and the mistake of 3.14%. The smallest value of the raw payload was owned by the technology application dimension (X7) of 0.930354, the comunality of 0.8656. This means that the dimensions of application technology was only able to predict the implementation of knowledge management of 86.56% and the mistake reached 13.44%. The testing results of the outer models shown in Table 10 was 4.35, where it shows all dimensions of knowledge management which significance at 5% (T> 1.96). CONCLUSIONS AND SUGGESTION Conclusion The implementation of knowledge management in the state-owned energy sector companies in Indonesia have achieved well. a) Using the findings of knowledge management in the state-owned energy sector companies in Indonesia, it has not been optimized to improve the effectiveness and efficiency in economies of scale, such as the ability in the development of products and solutions, its ability to improve the human value to employees, and increased value for stakeholders, because it was not supported by aspects of an environment conducive to knowledge transfer process, especially aspects of people. Nevertheless, by the support of the leadership of the capital, the cultural climate of entrepreneurship and technology, the knowledge management implementation could be further enhanced to support the successful implementation of knowledge management in the future. b) The successful implementation of knowledge management in the state-owned energy sector companies in Indonesia was largely determined by the presence of corporate entrepreneurship, which means that the support of employees who were knowledgeable, support cultural learning and skills upgrading of employees in the process of developing new products and services. c) The dimensions of knowledge utilization are able to predict the successful implementation of knowledge management most largely. It means that the successful implementation of knowledge management if the results have been utilized (utilization) by the companies in the sense that increasing the value of products / services were finally able to provide value to customers and stakeholders, and also capable of increase the value of the human aspect, in this regard was the employee. The technology was merely a tool to facilitate the process of knowledge transfer and the dimensions of application technology is only able to predict the smallest knowledge management implementation in the model. Suggestion The implementation of knowledge management in the state-owned energy sector companies in Indonesia was still not optimal. Thus, the suggestion of researchers to this aspect are : a) It should be an increase in activity associated with the entry of new knowledge into the organization that includes the knowledge development, knowledge discovery and knowledge absorption. The research suggestions are: (i) it is necessary to make improvements to the process of knowledge creation through: socialization, externalization, combination, and internalization. The exact form of socialization is the process through knowledge transfer and
  15. 15. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 73-88 © IAEME 87 experience widely into the organization by forming a forum to share knowledge and experiences. The externalization can be done by encouraging individuals to always write down the various knowledge or experience into a media company information such as company magazine, intranet or the company's blog. The combination can be done in a way to guide employees through direct practice commanded by senior and experienced employees. The internalization can be done by appreciations for employees who have been able to practice new knowledge into her work, for example in the form of rewards in the form of financial or non- financial. b) It is necessary to create a climate conducive to the maintenance of knowledge either directly or indirectly. The former is through the meeting forum, innovation forum, discussion, problem solving, and the latter is through the library, e-library, knowledge center, internet media, and email. c) It is necessary to increase the frequency of access applications have been built by the company's employees as a medium to share knowledge. Considering the most of state-owned energy sector companies had a branch or office of a large area spread across Indonesia. Thus, the use of meda can improve the efficiency and optimization of untrammeled by distance and time. REFERENCE [1] Alavi & leidner.2001. Knowledge Management, Knowledge Management System, Research Issues in Knowledge. Edge management. [2] Albers, James A.2009. A Practical Approach to Implementing Knowledge Management. Journal of Knowledge Management Practice. [3] Alle, Verna.1997. A Value Network Approach for Modelling and Measuring Intangible. [4] Barzelay, M. (1992). Breaking Through Bureaucracy: an New Vision for Managing in Goverment. LA: University of California Press. [5] Chong, Siong Choy and Choi Young Suk. 2005. Critical Factor in Successfull Implementation of Knowledge Management. Journal of Knowledge Management Practices. [6] Delphi Consulting Group.1997, Delphi on Knowledge Management. New Jersey : Pearson Education Inc. [7] Davenport, Thomas H., and Laurence Prusak. 1998. Working Knowledge: How Organizations Manage What They Know. Harvard Business School Press [8] Horwitch, M. & Armacost, R. 2002. Helping Knowledge Management Be All It Can a. Be. Journal of Business Strategy, pp.27-31. [9] Kusno Prijono.2008. e-Indonesia Initiative. [10] Malhotra Yogesh, 2005, “Integrating Knowledge Management Technologies in Organizational Business Process: getting real time enterprises to deliver real business performance”, Journal of Knowledge Management Vol. 9 No. 1, 2005 pp.7-28, Emerald Group Publishing Limited ISSN 1376-3270. [11] Munir, Ningki Sasanti.2011. Penerapan Manajemen Pengetahuan di Perusahaan di Indonesia. PPM Manajemen. [12] Nonaka, Ikujiro; von Krogh, Georg. 2009.Tacit Knowledge and Knowledge Conversion: Controversy and Advancement in Organizational Knowledge Creation Theory". [13] Newman, Brian, 1999, “The Knowledge Management Theory papaers: A Series of Papers on the theories, processes and practice behind knowledge management A frame work for characterizing knowledge management methods, practices, and technologies”. Washington University Course EMGT 298TI.
  16. 16. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 4, April (2014), pp. 73-88 © IAEME 88 [14] Schlussel.2009. How do You Measure the Knowledge Management (KM) Maturity of Your Organization? Matrics that Assets on Organization’s. KM State USAWC. [15] Wong, K.Y.2005. Critical Success Factors for Implementating Knowledge Management in Small and Medium Enterprises. Industrial Management & Data Systems, Vol.105,No.3: 261-279. [16] J. Neelakanta Gugesh and Dr. S. Sheela Rani, “Influence of Culture in Knowledge Management on Virtual Team”, International Journal of Management (IJM), Volume 2, Issue 2, 2011, pp. 103 - 112, ISSN Print: 0976-6502, ISSN Online: 0976-6510. [17] Shakti Kundu, “Knowledge Management: Value, Technologies and its Implications” International Journal of Computer Engineering & Technology (IJCET), Volume 4, Issue 5, 2013, pp. 182 - 188, ISSN Print: 0976 – 6367, ISSN Online: 0976 – 6375. [18] C. S. Ramanigopal, G. Palaniappan and A. Mani, “Mind Mapping and Knowledge Management: Coding and Implementation of KM System”, International Journal of Management (IJM), Volume 3, Issue 2, 2012, pp. 250 - 259, ISSN Print: 0976-6502, ISSN Online: 0976-6510.

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