KNOWLEDGE ENGINEERING IN SME'S DEVELOPING A FRAMEWORK FOR EFFECTIVE KNOWLEDGE DEVELOPMENT AND TRANSFER

Abstract

In the rapidly evolving business landscape, the ability to manage and leverage knowledge effectively is becoming a critical success factor. VSE, a specialised technical SME, is experiencing significant growth, pushing its workforce towards 50 employees. This expansion has highlighted the need for a more structured approach to knowledge management, as the company transitions from its historically informal setup. The centralisation of critical technical knowledge among a few key employees poses a strategic risk, potentially hindering scalability and efficiency. This thesis examines the challenges regarding knowledge faced by VSE and proposes a framework to address these issues, thereby ensuring the effective development and transfer of knowledge within the organisation. VSE's growth has led to an increased dependency on a few key employees who hold essential technical knowledge. This centralisation of knowledge poses a significant risk, as the departure of these individuals could lead to a loss of critical expertise. Additionally, the absence of a structured knowledge management strategy exacerbates this issue, potentially limiting VSE's ability to capitalise on market opportunities and maintain its competitive edge. The informal structure that has served VSE well in the past is no longer sufficient for managing its expanding operations and workforce. The primary research question guiding this research is: How can a framework be established to activate strategic thinking, ensure effective managerial control, and create a reflective self-correcting system for knowledge development and transfer to form a competitive knowledge strategy in a knowledge-intensive SME? This question aims to address the need for a structured approach to knowledge management that aligns with VSE's growth objectives while preserving its cultural strengths. VSEs knowledge management is deeply intertwined with an organisation's communication and cultural dynamics. At VSE, the current communication structure reveals both strengths and areas for improvement: • Down-Up Communication: It was found that management primarily facilitated communication by creating opportunities for approach and fostering an informal culture. However, this passive approach to communication appears insufficient for facilitating effective levels of communication. Instances of unawareness by management regarding irritations regarding policies, decisions, and actions suggest a need for a more active and structured communication strategy. • Up-Down Communication: There is evidence of dysfunction in communication with employees. Indicated by employee confusion over past policy decisions and a sense of being unheard. This can result in misalignment can hinder goal alignment and undermine the effectiveness of knowledge strategies. • Cultural Strengths and Pitfalls: VSE's culture is largely appreciated for its flat and informal nature, which has historically supported knowledge sharing and development. However, the reliance on emergent processes and personal initiative poses risks, particularly for employees who may not proactively seek growth opportunities or align with company goals. Addressing these communication and cultural aspects is crucial for enhancing knowledge management, as they directly impact the effectiveness of knowledge transfer and development strategies, but also to ensure total company health. To address the challenges faced by VSE, a framework is proposed that strengthens emergent processes and facilitates engineering approaches to knowledge management. This framework aims to enhance the current open and agile organisational culture while formalising task, communication responsibilities, and time availability. The key components of this framework include: