Knowledge Flow Strategy Flow
Figure 5: Strategy formulation process designed by author
Brief information on above figure, various authors have already mentioned that the first initiation of strategy happens in the form of knowledge at firm by individual level (Jobber & Lancaster, 2015) (Dayan, et al., 2017); ultimately, the effective knowledge transforms into strategy. According to the Nonaka (1995) SECI model is to understand knowledge management in the firms, where he has pinpointed that knowledge flows from lower level to higher level first, and the productive one turns into organizational strategy and same strategy cascades down to lower level for further implementation. Therefore, Nonaka and Takeuchi (1996) highlights that strategic knowledge is the determining factor of firm’s existence and plays important role in the recreation of knowledges and strategies.
Individual Level Corporate
Level
Business Unit Level
23 Dayan, Heisig and Matos (2014) research on knowledge management as a factor for the formulation and implementation of organizational strategy, their finding pinpoints that knowledge management is to be regarded as a factor for the formulation and implementation of the organizational strategy. Therefore, similarities can be seen between knowledge management and strategy, due to their sharing properties, in addition to that both knowledge management and strategy shares foundation of excellence knowledge (Snyman & Kruger, 2004).
Therefore, Dayan et. al (2014, pp. 310) state that “knowledge drives strategy, and strategy drives knowledge creation and knowledge management”.
John Thompson (2001) argues that strategy could be the long-term oriented or short-term oriented, it relies on the things that managers and organizations do.
Such action or activities are needed in order to fulfill certain purpose of the organization. The results could be negative, when strategy fail to meet the requirements of customers and stakeholders. This means that strategy sometimes play its role as the organizational mission and their relevance is important in the organization. Therefore, knowledge should flow through several units.
During the strategy formulation process, effective strategy transfer from one department to other, however there is high possibility that same strategy applies to competitors, customers and suppliers to build up strategic sales cycle (Schulz
& Jobe, 2001). Thus, from the sales point of view, as well as knowledge point of view, strategy formulation is an integrated process of knowledge and knowledge competence. Therefore, various author has stated that knowledge is becoming a key resource of strategy and it has profound effect on strategy formulation (Snyman & Kruger, 2004) (Ingram, et al., 2015).
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3.0 Research Method and Data Collection
Figure 6: Research Methods
During the research, appropriate research method should be used otherwise research hardly provides essential outputs, this absolutely depends on nature and personality of the researcher (Maanen, 2000). The research methodology is a part of justification methods for this study and how the methods have been utilized. Yin (2009) proposed that research question has to be identified at first based on objectives, then methodology should be chosen for analysis and interpretation of the results.
In this thesis, the qualitative method has been applied to analyze the theories with primary and secondary data sources. Various researchers already have proved that the qualitative research method supports to understand of underlying reasons. Eriksson and Kovalainen (2016) has mentioned that qualitative research is precisely relevant with business and its core process, so it is concerned with interpretation and understanding of the base theory. On top of that, some of the research has to be done without numbers, but with logic and rigorous application of theories to verify the appropriate business circumstances (Stake, 2010).
• Qualitative
• Literature Review-Themes-Research Questions
Reserach Method
• Abductive
• Theme Analysis
Research Approach
• Primary - Semi-structured Interviews
• Secondary - Journals, Books and Articles
Data Collection
25 Qualitative methodology provides relevant information based on articles or written forms, and considered as a powerful method for research in management and business subjects including general management, marketing, sales, corporate strategy and more (Eriksson & Kovalainen, 2016). Same authors further highlight that researcher should play active role in generation and interpretation of the theories as the qualitative research does. This type of research could be essential for understanding the strategic knowledge and interpretation of their capabilities (Stake, 2010).
Furthermore, abductive research approach has been implemented to review the theories in order to understand and verify the themes. Abductive reasoning is concerned with new theories, which emerges from the data and corelates from precise cases and comprehensive conclusions (Cresswell, 2007). Hobbs et. al (1993) present that abductive interpretations describe new context and arise the logical form of the sentence together, which allows coercions, merging redundancies by making assumption if necessary. In addition to that Dubois and Gadde (2002, p. 553) use this approach to describe and accommodate a new context by understanding and generating the dialogue.
In the theme analysis with abductive research process begins with the examination of the real-life experiences (Spens & Kovacs, 2006). This approach could able to observe puzzling situation via previous theories in order to explain the phenomena. Dubois and Gadde (2002) conclude that it is a process of theory matching or systematically combining the theory in an attempt to find a possible or matching framework, in addition to that it also borrows theories from other disciplines in social sciences. Therefore, all research which follows abductive approach develops best coordination with empirical data in the qualitative studies (Dubois & Gadde, 2002).
Lewis-Beck, Bryman and Liao (2004) state that abductive research examines the everyday activities and meaning of the language used by social actors. That supports in examining precise phenomena in the business. Specially in the
26 business research, abductive is considered as an effective method, because it narrates with human language and interpretation of their experiences. That could be the reason, researchers would able to profoundly explore into the perception, perspective, understandings and their feelings based on their experiences and circumstances (Reiter, et al., 2011).
As stake (2010) notes, qualitative research method has many advantages, it allows researchers to explore new phenomena where little understanding exists.
A prior hypothesis is not needed in the qualitative research. It approaches into the theme and examines the theories. In this process, the observation should do through the theories to confirm the consequence and provides deeper insight with more complete knowledge. In order to get greater research flexibility and subjective interpretation in the sales process the qualitative research is necessary in that case. (Stake, 2010).