1. Chapter: 1 INTRODUCTION
1.1 Background of the study
The research topic for this study intends to identify the role of knowledge management and
system flexibility in dynamic organizations. In order to build the foundation of the research,
this chapter includes a brief discussion of the essential elements such as dynamic
organizations, role of KMS (Knowledge Management System) and system flexibility in an
organization, role played by emerging technologies and artificial intelligence, and so on. The
purpose of this chapter is to present how certain features like market volatility, steep
competition, and pressure to keep cutthroat service pricing define dynamic organizations. The
chapter also discusses knowledge management as a systemic approach for effectively
managing knowledge resources of an organization. Further, the chapter shall also show how
system flexibility helps dynamic organizations in their survival in volatile business
environment. Discussed here are the topics in specific that shall be covered in this
introduction.
1.2 Research background
1.2.1 An introduction to dynamic organization structures
Organizations are formed when a group of people from different business units come together
to achieve certain common goals that cannot be achieved individually (Tran and Tian, 2013).
Most organizations today function in a market environment that is dynamic and ever-
changing, necessitating the design of an organizational framework that would foster
innovation in order to adapt to these changes. These organizations are identified as dynamic
2. organizations (Gaspary, de Moura and Wegner, 2018). These organizations prove more
successful in functioning in complex and rapidly changing environments as compared to
organizations that are stable and feature static organizational structure. There are certain
distinctive factors that demarcate these dynamic organizations from the stable and static
organizations. For instance, these dynamic organizations tend to decentralize their decision-
making process. These organizations prefer formal organizational rules and regulations
mostly for tackling organizational uncertainties. Further, as decision making is decentralized,
the organizational structure of these dynamic organizations have a flattened hierarchal order
(Tran and Tian, 2013). In a flattened hierarchy, organizations influence employee
involvement in key organizational processes and decision making. This is because such
organizations believe that such organizational structures are able to reap more productivity
from their well-trained and knowledgeable workforce through their positive involvement in
core processes (Kubheka, Kholopane and Mbohwa, 2013).
There are certain features that are unique to dynamic organizations. System flexibility and
knowledge management strategy are essential to tackle the emergence of uncertainties that
are typical of these organizations (Tran and Tian, 2013). According to (Tran and Tian, 2013),
one of the features is that there is often a need to decentralize decision making. Secondly, the
concept of implementation of customer interaction in quality management is unique to
dynamic organizational structure. Thirdly, the idea of valuing innovation is also very
significant for dynamic organization. Fourthly, the organizational design characteristic is
such that it supports competitive behaviour among the workforce and encourages its further
promotion. Further, liberalization of economy is also encouraged in dynamic organizational
structure (Tran and Tian, 2013).
3. In the light of this section of the study, attempt shall be made to understand the features that
make the airport industry a dynamic organization. Further, attempt shall also be made to
understand the challenges faced that are typically faced by the airport industry owing of its
dynamic nature.
1.2.2 Role of knowledge management and system flexibility in dynamic organisations
and their performance
The core aim of the study is to understand how significant knowledge management is for
dynamic organizations. Hence, the study of (Mohajan, 2017) conducted in the topic of
implication of knowledge management in dynamic organizations has been referred. It
says that particularly in the contemporary organizations, knowledge has become the most
crucial component of production besides labour, land and capital. Knowledge has become
the most valuable asset of modern day organizations of different sizes and profiles. This
makes it necessary for every organization to manage knowledge in effective manner.
From here emerges the concept of knowledge management which is basically the process
of managing and sharing knowledge using emerging technologies for the betterment and
progress of an organization. It comprises of processes that find, select, organize, distil and
present knowledge in such a manner that it improves the proficiency of the organization
(Mohajan, 2017). On the other hand, flexible system management can be defined as the
intensity of pace and degree of change in control instruments by virtue of which an
organization is able to cope up with its macro and micro environmental uncertainties (Sushil,
2016). Since dynamic organizations operate in turbulent business environment that feature
continuously changing global trends and stringent competition, these organizations need to
adapt to these changes and upgrade in terms of innovativeness, competitiveness, better
employee training, flexibility, qualitative and quantitative enhancement of processes and
4. business performance (Jelenic, 2011). In such a scenario, the prime role of knowledge
management in a dynamic organization is that it accesses the knowledge assets that often
reside in an untapped manner in such organizations and use it for achieving the organizational
goals (McInerney, 2002). Further, adapting system flexibility also helps these dynamic
organizations in exploring the organizational advantages and using them for achieving
optimum returns in terms of organizational performance, employee productivity and
customer satisfaction (Eversole, Venneberg and Crowder, 2012; Raffaele and Connell, 2016).
1.2.3 The role of artificial intelligence and emerging technological systems in enabling
knowledge management and system flexibility
Intelligence is the term that is used for describing the ability of individuals to acquire and
apply different skills and knowledge for the purpose of solving particular problems (Shabbir
and Anwer, 2015) . Artificial intelligence (AI) on the other hand can be defined as the term
that indicates towards the practice of using internet and technology for stimulating critical
thinking and intelligent behaviour that is comparable with that of human intelligence (Amisha
et al., 2019). Artificial intelligence is totally dependent upon emerging technological systems,
and hence uses various AI software and programs that are programs that are inserted into
robots, computers, or other forms of technological machinery in order to impart human-like
thinking ability to them (Shabbir and Anwer, 2015). There is an established interlink between
AI with that of knowledge management and corresponding system flexibility in the manner
that AI provides powerful tools by means of which effective knowledge management system
could be developed. The specific significance of integrating AI system in knowledge
management in a dynamic organization is that the task of managing knowledge assets
effectively is often very complicated in nature. In such situations, linking such complicated
5. knowledge base with AI framework makes processes like programming of such systems and
setting up of the algorithms that are required for performing organizational activities much
easier. Along with this, an AI framework also executes the entire task without the need to
utilize organizational employees so that they do not get deviated from their core
organizational responsibilities (Birzniece, 2011).
1.2.4 An introduction to the dynamism and complexities in airports
Airports were once considered as traditionally monopolistic utility providers that had
meagre potentials of developing market opportunities. However, after the liberation of the
world economy new dynamics were introduced in the aviation industry (Jimenez, Claro
and de Sousa, 2013). This aggravated the complexities in the airport industry particularly
in terms of shift of ownerships towards commercialization and privatization. This raised
the demand for implementation of new strategies and perspectives for effective handling
of the complexities arising from the dynamic and contemporary airport industry. This also
generated the need for implementing market specific strategy formulation for specific
airports in specific regions (Jimenez, Claro and de Sousa, 2013). There are many
complexities that plague the airport industry. Among these include uncertainties related to
access to capacity (Desart, Gillingwater and Janic, 2010). This makes the airlines companies
build buffer times into their flight schedules due to their prior anticipation that flights may get
delayed. Again, use of excessive buffers by the airline companies proves damaging for the
cost efficiency in the air transport system (Desart, Gillingwater and Janic, 2010). In addition
to this the changing perspectives of the customers add further to these complexities. Speaking
elaborately, there are more than one key customers for each of the airline companies who
have their own demands and preferences (Jimenez, Claro and de Sousa, 2013).. This hinders
the process of precise competitive strategies that would work effectively for each of the
6. organizations. Further, even though there is a need to establish complex interaction between
the different airline stakeholders who have their correspondingly diversified interests. This
makes the airports deviate from business oriented focus as part of the airport management
procedure (Jimenez, Claro and de Sousa, 2013). Another vital feature of the airlines
industry that not only makes it dynamic but also makes the airports dynamic is the continuous
change in the timings of departure and arrival of flights within a day, a month or a season.
This makes it difficult for a traditional and static network and infrastructure of the airports to
handle the situation systematically and with ease (Rocha, 2017).
1.3 Problem Statement
Dynamic organizations operate in highly volatile business environment. Airport industry is
one such specimen of dynamic organization that features constant changes in customer
preferences, steep competition and the pressure to keep the airport transport charges at cut
throat levels. These factors make the business environment of the airport industry extremely
dynamic in which the service providers have to constantly innovate their service offerings to
cater to customer needs simultaneous with economizing on cost of these offerings.
Knowledge management is the process of managing knowledge assets so that these can be
used for the betterment of the quality of service or product offered by an organization. Here,
the role of system flexibility is imperative in making an organization adapt accurate as per the
needs of the market.
Here, both these areas have been integrated in order to find out how system flexibility and
knowledge management can help the airport industry in addressing its challenges and sustain
successfully. Precisely, this study focuses on two key aspects; the first one is adoption of
organizational form to suit the business growth and second one is the retention and use of the
organizational knowledge by using “Knowledge Management System.”
7. However, the problem here is that majority of the organizations operating in the airport
industry do not have the idea that creating learning-type organization not only demands
reformation of the existing system. Rather, there is also lack of understanding on the need to
match the information technology along-with so that a completely different atmosphere for
the enterprise could be created. Thirdly, there are very few studies that actually emphasize
upon using knowledge management technique and enabling system flexibility in airport
industry to respond to market challenges.
1.4 Aim and objectives
The aim of this study is to establish the role served by knowledge management system and
system flexibility in airports as dynamic organisations. The research objectives that have
been developed in correspondence to the research aim are as follows:
To identify the measures for organizational effectiveness so that airports can handle
problems through individual effectiveness.
To identify ways to minimize the loss to the organization due to attrition and
retirement.
To identify the critical resources and critical areas of the knowledge so that the
organization “has the knowledge to deliver to its best of ability”.
To understand the importance of organizational structure and strategy in supporting
the use standard knowledge from the knowledge management system while executing
processes
To determine how Standard Operating Process (SOPs) at the airport can be made
dynamic so that it delivers best operations at the airport.
8. To apprehend how to use new technologies (Artificial Intelligence) to store, update
data in the knowledge database.
1.5 Research questions
The following research questions have been developed in correspondence to the research aim
and objectives:
How do knowledge management system and system flexibility affect the performance
of dynamic organizations?
What is the significance of artificial intelligence and emerging technological systems
in enhancing the effectiveness of knowledge management and system flexibility?
Which are the complexities in the process of implementing knowledge management
system and system flexibility in dynamic organizations?
1.6 Significance of the study
This study is significant because it has attempted to research on the topic of implementation
of knowledge management and system flexibility in airport industry which has not been
covered adequately previously. Hence, the findings derived from the study are assumed to
serve as a knowledge base for future researches that might be carried out on similar topic.
Secondly, this study is significant because it introduces three rationales that play behind the
success of dynamic organizations like airport industry in this cut-throat competitive
environment. They are i) Organizational Flexibility Form, ii) People as an asset and iii)
Knowledge Management System. Thus, it shall firstly help the stakeholders of the airport
9. industry in to exploit the organizational ability and capacity to change to match the need for
the environmental turbulence and competitiveness.
Thirdly, it shall help in realizing that employees are assets of an organization and their
retention helps in providing business critical knowledge that is necessary for business
continuity in volatility environment.
Lastly, it shall also present to the airport industry stakeholders that Knowledge Management
System is essential for the organization to proactively or reactively support the responsible
people with heads up knowledge to reduce the risk of the business. Eventually, it will aid in
changing the organizational culture and bringing original flexibility order to adapt the new
knowledge.
1.7 Chapter structure
This study shall be divided into five chapters. Brief discussion on the purposes of each of the
chapters is as follows:-
Chapter 1: Introduction- This is the preliminary chapter which serves the purpose of
presenting the research background along with presentation of few vital research
elements like aim and objectives, research question and so on.
Chapter 2: Literature Review- This second chapter of the study shall make review
of the relevant literary sources for the purpose of collecting and presenting relevant
secondary information on the need for system flexibility and knowledge management
in dynamic organizations.
Chapter 3: Research Methodology- In this third chapter, the specific
methodological elements like research design, data collection and analysis protocols
10. and so on that shall be used for accomplishing the research objectives and finding out
answers to the research questions shall be presented.
Chapter 4: Analysis and Discussion- This chapter shall analyze the data that will be
collected by means of the mentioned methodological framework and present the
corresponding interpretations.
Chapter 5: Conclusion and Recommendations- This fifth and the final chapter of
the study shall conclude the entire research and summarize the findings in gist
manner. In addition, few recommendations shall also be made here in accordance to
the research findings.