KNOWLEDGE MANAGEMENT AND ORGANIZATIONAL SURVIVAL (A Study of Selected Manufacturing Firms in Port-Harcourt).

ABSTRACT

This study investigated the relationship between knowledge
management and organizational survival in manufacturing firms within the
moderating context of technology. The cross-sectional survey design was
applied. Data was generated from a total of 93 employees of the target
organization and analyzed. Hypotheses were tested using the Spearman rank order
correlation coefficient. The results showed a significant relationship between
the dimensions of knowledge management and organizational survival in the
target organizations. Findings showed that knowledge management through its dimensions:
knowledge acquisition and knowledge sharing significantly impacts and enhances
the survival of organizations and thus influenced outcomes such as
organizational adaptability and organizational innovation which were adopted in
the study as measures of organizational survival. Based on the foregoing
findings, it was therefore recommended that for organizations to remain effective,
efficient, and competitive, activities such
as routine training of staff, internet access and information generation,
should be encouraged as means of improving organizational performance and
survival.

1.0
Introduction

The 21st
century business environment is characterize by uncertainty and challenges
occasioned by global competition, change in demand of customers, rapid change
in technology, and unfavorable government policies.  These changes have necessitated the need for
managers to plan and strategize in order to make profits (Jaja and Amah
2013).Survival of organization is of major concern in the development of a
nation’s economy, this is because they contribute to employment generation,
increase in the standard of living and increase in gross domestic product. Many
organizations that existed in the mid 1980s and early 1970s have all gone into
extinction as a result of one challenge or the other. Some are faced with
external pressures, which include; market, consumer’s demands,
technology, and society (Turban et al 2011). The Inability of some
organizations to cope with these issues have resulted to low sales and finally
shutting down. Report from Corporate Nigeria (2010) stated that between 2000
and 2010 more than eight hundred and fifty manufacturing industries were either
closed down or incidentally ended generation.

 According to Luthan (1995) the utmost goal of
every organization is survival. Gross (1968) argue that the perception of continued
existence in business depend on policy of the organization and a prerequisites
for serving any interest. Organizations in a bid to accomplish this goal and
gain ground in the market are forced to think of better practices and
strategies of improving their services and adapting to the changes in the
environment. As Mbadiwe (2007) noted that an organization that forms the habit
of continually ignoring macro environmental changes will slowly sink into
irrelevance. For organizations to survive in this hostile business environment;
Knowledge, innovations and developments have become increasingly necessary. Becerra-Fernandez
et al (2004)
stated
that manufacturing firms are faced with pressures resulting from quickening
market instability, escalated velocity of responsiveness, worldwide rivalry,
and lessening person skill as a result of High employee turnover rates
resulting in knowledgeable individuals having less tenure with their
organizations.

Hamel and
Prehalad (1994) described Knowledge as intangible assets that can create value
to an organization. Knowledge is a complete utilization of data and information
together by means of the capability of relationship, building abilities,
skills, thoughts, commitment and inspiration. Organizations may be able to
adjust to situations and outshine its competitors when it posses employees with
novel ideas and unfamiliar skills. It is in view of this that Christensen and Raynor
(2003) contended that the main basic resource an association has is the
information and capacity of its staff. Umoh and Amah (2013) included that the
efficiency of this advantage relies upon how successfully individuals impart
their competencies to the individuals who can utilize it. Few organizations
encourage employee participation and creativity by investing in activities and
facilities that can enhance their knowledge and skills. The concept knowledge
management was born out of the need for organizations to create and promote the
acquisition and sharing of ideas and knowledge that can improve the performance
of the organization.

Many researchers have tried to
link organizational survival to the following variables e.g Pfeffer &
Salancik, (1978) examined the impact of Strategic management on organizational
survival.