empowerment of organizational knowledge workers through knowledge strategies in national iranian ...

Asian Journal

of Research in

Social Sciences

and

Humanities Asian Journal of Research in Social Sciences and Humanities Vol. 4, No. 5, May 2014, pp. 578-590

ISSN 2249-7315

578

www.aijsh.org

Asian Research Consortium

Empowerment of Organizational Knowledge Workers

through Knowledge Strategies in National Iranian

Petrochemical Products Industry

Amir Hooshang Nazarpooria, Seyyed Hadi Mousavi Nejad

b, Abolghasem

Karimic

a Assistant Professor of Business Management, Lorestan University, Iran.

bMaster Student of Business Management, Lorestan University, Iran.

c Master Student of Business Management, Lorestan University, Iran.

Abstract

Present paper aims at studying and identifying aspects of knowledge strategy against employees’

empowerment as well as comparing and rating the relationship between both variables in Lorestan

Petrochemical Company. It is a descriptive survey – type study conducted by a field study. Its population

consists of all employees (300) of Lorestan Petrochemical Company and 111 were selected as research

sample. Questionnaire is the used tool to gather data. Content validity of research tools is confirmed by

factor analysis, theoretical basics and elites’ opinions. Also, reliability is calculated by Cronbach’s α

value. To test research hypotheses, factor analysis technique and structural equation modelling are used.

Research finding indicate that knowledge strategy impacts on employees’ empowerment (0.81) positively

and significantly. Additionally, findings show that knowledge strategy has a positive and significant

association with explicit variables of empowerment.

Keywords: Knowledge Strategy, Employees’ Empowerment, knowledge workers.

Nazarpoori et al. (2014). Asian Journal of Research in Social Sciences and Humanities,

Vol. 4, No. 5, pp. 578-590

579

1. Introduction

21st century organizations differ from traditional ones. In these organizations, employees’ intellectual

force and creativity are managed in addition to energy. Under such circumstances, not only hierarchical

systems are not proper but also employees should show their initiatives and should play their role in

resolving the problems rapidly as self – managed teams (MacCoby, 1999: 121). It demands a new look at

human resources and their powers. It means the necessity of breeding employees with self – management

capabilities which has attracted the attention of many management connoisseurs to manpower

empowerment as a new paradigm (Thomas and Velthouse, 1990: 18). Koberg believes that both managers

and employees are benefited from empowerment advantages. By breeding the feeling of self – sufficiency

and freedom for employees, empowerment would create an opportunity to build organizational

capabilities, skills and effectiveness improvement. On the other hand, empowerment allows managers to

react dynamism of a competitive environment more rapidly and properly (Koberg et al., 1999: 46). Since

managers do not have enough time to control their employees, they should assign daily functions of the

organization to their staff. Employees can perform their task well when they enjoy necessary skills,

knowledge and capability and know organizational goals (Moslehi et al., 2012). Therefore, one can find

that knowledge is an affecting factor on employees’ empowerment.

Since 1990s, knowledge replaced monetary and physical capitals as the most important kind of capital

(Chen et al., 2004). In this line, organizational knowledge management authors and experts assert that

organizations are not able to survive otherwise they select a proper strategy to run their knowledge and

intellectual capital (Fegh Mirzaei & Gholamian, 2009). Traditionally, managers would work with tangible

and physical resources and, regretfully, it is too difficult to control managerial and knowledge practices

since organization owns only a part of internal knowledge and other parts are depended to individuals.

Therefore, companies should manage their own knowledge objectively and select their strategy

proportionately since devising a proper strategy is one of the initial steps in executing knowledge

management projects (Afrazeh, 2007: 113). Although literature on organizational knowledge is evolving,

most studies have been subjective (Garvin, 1993) and less empirically. Concerning the importance of the

issue, present paper tries to study the association between knowledge strategy and knowledge staff

empowerment in Lorestan Petrochemical Company empirically.

2. Literature Review

2.1. Knowledge strategy

Knowledge strategy is an affecting factor on employees’ empowerment to which different categorizations

are provided by connoisseurs such as knowledge strategies of Bierly and Charkrabarti (1996): innovators,

borrowers, operators and explorers; Zack (1999): basic knowledge, advanced knowledge, innovative

knowledge; De Pablos (2002): searcher, operator and innovator; Bierly and Daly (2002): knowledge

generation, bilateral learning, keeping status quo, knowledge utilization; and finally Kasten (2007):

relationship between organizational strategic orientation and knowledge practices.


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580

For the first time, Bierly and Charkrabarti (1996) addressed knowledge strategy and defined it as “a set of

managers’ collective responses to organizational strategic learning needs.” According to them, managers

mainly make their strategic decision on knowledge strategy based on learning process and learning area.

They divided organizations into four groups in terms of knowledge strategy (figure 1):

Explorers Innovations

Beneficiaries Borrowers

Learning area ExternalInternal

Learning process

Fundametal

gradual

Figure 1. Bierly and Charkrabarti (1996) Model’s

• Innovations: the velocity of learning by this group is too high. Effectively, they use the

advantages of both internal and external earning. Their focus is both on radical and incremental learning.

• Borrowers: their distinguished feature is that their learning system is not effective compared to

other groups while they invest on R & D more than average. They are highly separated from scientific

communities and groups.

• Beneficiaries: they spend the lowest expenditures on R & D compared to their rivals while they

enjoy proper links with scientific groups and associations. Their priority is external learning rather than

internal one.

• Explorers: in these companies, there is a proper interaction between internal and external

learning. Since their investment on R & D is low, they have lower aggressive morale than other

companies (Bierly and Charkrabarti, 1996).

Concerning research background and abovementioned points, knowledge strategy aspects defined by

Bierly and Charkrabarti (1996) are regarded in present study.

2.2. Employees’ empowerment

Blanchard (2003) compiles that many managers believe that empowerment grants people the power of

decision making. Also, many employees believe that empowerment is unconditioned freedom to perform

the job. Empowerment means to grant power in order to help people to improve their self – esteem and

overcome their disabilities. Although organizational theoreticians have defined the concept of

empowerment in different ways, two general definitions are identifiable in literature:


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Empowerment as sharing the power and cognitive and motivational concept

Many theoreticians have defined empowerment interchangeably with employees’ contribution.

Employees’ contribution is a process by which power is shared among people (Lawer, E. E. 1994). They

believe that empowerment may be defined as granting more organizational power to employees (Noe et

al., 2003) and authority assignment (Pearce et al., 2003). In another approach, empowerment is defined as

a motivational construct based on employees’ perceptions on their workplace. So far, various studies are

conducted in this regard depicted in table 1 briefly.

Table 1. The aspects of employees’ empowerment in motivational and cognitive perspectives

Empowerment dimensions Theorists

self-efficacy, self -effectiveness Conger et al., 1988

Sense of sufficiency, Sense of choice, Sense of efficacy,

Meaningful sense. Thomas & Velthouse, 1990

Be effective, Sense of choice, competence, meaningfulness Spreitzer, 1996

Sense of competence, Sense of choice, effectiveness,

meaningfulness, Trust to others. Mishra & Gretchen, 1997

Thomas and Velthouse represented a complicated cognitive theory on empowerment that its core is

shaped by four cognitive variables and determine employees’ internal motivation (Randolf, 1995; Parker

& Price, 1994). Since motivational and cognitive does not have the limitations of power sharing approach

and it also involves several distinguished advantages, it is the theoretical basis of present study. Among

different motivational and cognitive approaches, Spreitzer’s (1996) model is used as the basis of this

research and its empowerment aspects are explained below:

• Sense of sufficiency: people feel self – efficacy or necessary skill and capability for doing their

job successfully when they are empowered. Not only people feel competent but also they are assured

that they can perform their tasks sufficiently

• Sense of choice: people feel that they have the right of choice when they are involved in their

work voluntarily rather than compulsorily. Studies indicate that right of choice feeing is accompanied

with lower alienation, higher satisfaction, higher performance levels, higher creativity and higher

contribution in work.

• Sense of efficacy: empowered people believe that they can pose changes by influencing over the

ambience where they work or the results they acquire. They also believe that they can control barriers. In

fact, they enjoy an active control sense.


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• Meaningful sense: empowered people feel meaningfulness. They value the aims of their job and

their ideals and standards are homogenous to what they do.

2.3 Empowering knowledge workers

Knowledge workers are not manual employees and they are usually employees for creatively jobs.

Knowledge worker is an organizational member who uses knowledge for more productivity (Suthlman,

2006). Knowledge workers generate knowledge and know how to share it in the organization and to reuse

it where it is necessary (Stylusinc, 2006). In management, empowerment refers to a strategy for change

aimed at improving the collective and organizational capabilities. Once can consider empowerment as a

process of supporting organizational human resources to improve quality, efficiency and effective

decisions yield into quality continuous improvement (Dimitriades & Kufidu, 2003).

Knowledge workers are not always working in organizations that know the value of knowledge and are

equipped with knowledge backup processes and technologies. Usually, organizations should be aware

that their performance is determined by daily work of all their employees. Knowledge workers’ values are

conceived if the line which links such initiatives to organizational mission and goals is determined. This

line is the result of interactions among knowledge management, learning and knowledge workers.

Knowledge workers act since someone has made such decision for them. Such decision is the result of

some current situations which should be changed (Bennet, 2009).

3. Hypotheses and conceptual model

Present study has a primary hypothesis (H1) and four secondary hypothesis (H2,3,4,5) as follows:

Primary hypothesis (H1): Knowledge strategy has a positive and significant impact on staff

empowerment.

Secondary hypothesis (H2): Knowledge strategy has a positive and significant impact on sense of

efficacy.

Secondary hypothesis (H3): Knowledge strategy has a positive and significant impact on sense of choice.

Secondary hypothesis (H4): Knowledge strategy has a positive and significant impact on sense of

sufficiency.

Secondary hypothesis (H5): Knowledge strategy has a positive and significant impact on meaningful

sense.

Concerning mentioned association in research literature and hypotheses, one can draw research

conceptual model as below (figure 2):


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583

Based on conceptual model, exogenous latent constructs include knowledge strategy and employees’

empowerment. Based on studying theoretical basics and research background, the indicators of

exogenous explicit variables are extracted as shown in table 2.

Table2. Research variables and their measurement indicators

Latent

Variable Obvious Variable Measurement Index

Kn

ow

led

ge

stra

teg

y

Borrowers Non-effective strategies in organizational learning, knowledge

indices less than of the industry, slowdown in adoption of new

knowledge, focusing on maintaining the status quo.

Beneficiaries Devoted of short Income to scientific activities, having poor

knowledge bases, focusing the learning activities on outside

knowledge, gradual and evolutionary.

Explorers Radical Looking and thinking in new products production,

establish a reasonable balance between internal and external

learning, a relatively high level of research and scientific

communication.

Innovations Pioneer in the field of learning, an effective combination of

internal and external learning, focusing on the gradual

development, a high speed in learning.

Em

po

wer

men

t

Meaningful sense Job Important for employees, Work significant because the

suitable design of the organization programs and they success.

Sense of sufficiency Ensuring of their capabilities, leveraging of their skills,

developed of the professional capacity, creating of awareness

among people about their abilities.

Sense of choice Authority devolves to decision-making, provide opportunities for

decision-making, provide an opportunity for autonomy in how

Completion works.

Sense of efficacy Impact on work results, sense of control over outcomes, having

assumed an important role in the organization.

Figure 2. The research conceptual model

Empowerment

H1

H3

H2

Sense of efficacy

Meaningful sense

Sense of Sufficiency

Sense of choiceH3

H2

Knowledge

strategy

Borrowers

Explorers

Beneficiaries

Innovations


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3. Methodology

Since the purpose of present study is to determine the impact of knowledge strategy variables on

knowledge workers’ empowerment, present paper is applied in terms of purpose while it is qualitative in

terms of data collection and descriptive survey in terms of research type.

3.1. Statistical Population, Sample, and Sampling Method

Research population consists of all Petrochemical Organization’s staff. On this basis, research population

is 300. By using cochran formulation, sample size was computed as 111. To this end, 130 questionnaires

were distributed of which 116 were returned and analyzed.

4. Instrument

In present paper, a questionnaire is used to gather needed information. In this line, 15 items for

knowledge strategy and 13 items for knowledge workers’ empowerment were considered. To measure

knowledge, a structured questionnaire is used while Spreitzer’s (1996) questionnaire is utilized to

measure knowledge workers’ empowerment. Likewise, Liker five – point scale is used to measure the

opinions.

In present study, factor analysis, elites’ opinions and studying different texts are used to measure

questionnaire validity. Finally, questionnaire validity was supported after making some changes.

Questionnaire reliability was also computed by using Chrnobach’s α value for each variable. Table 3

shows proper questionnaire reliability.

Table 3. Cronbach's alpha coefficient, KMO and Bartlett's test Latent Variable Obvious Variable Alpha Alpha KMO KMO

Knowledge Strategy

Borrowers 0.89

0.87

0.80

0.76 Beneficiaries 0.76 0.89 Explorers 0.89 0.77 Innovations 0.92 0.76

Empowerment

Meaningful sense 0.78

0.82

0.84

0.84 Sense of sufficiency 0.83 0.79 Sense of choice 0.78 0.76 Sense of efficacy 0.75 0.72

For all ratios, Bartlett test value is significant.

Based on the results from KMO test, it is determined that KMO ratio is greater than 0.7. As a result,

confidence ratio for factor analysis is in much desired level (Hinton et al., 2004).


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5. Data Analysis Method

After assuring the reliability and validity of collected indicators, research model and hypotheses were

tested. In present study, structural equation modeling (SEM) is utilized to test research model and

hypotheses. In structural equation modeling, there is a difference between latent implicit and explicit

variables. Explicit or observed variables are measured directly by author while implicit or unobserved

variables are not measured directly; rather, they are deducted based on correlations between measured

variables (Tinsley & Brown, 2000). Necessary analysis is conducted by Spss19 and Amos18 software

packages.

After data collection, it is necessary to test all observed variables that relate to implicit variables

separately in order to determine to what extent measurement indicators (observed variables) are plausible

to measure implicit ones. Total fitness indices for measurement patterns (CFA) by Amos 18 software

package are shown in figure 3.

CMIN/df=0.867, NFI=0.98, RFI= 0.95, RMSEA=0.004 CMIN/df=0.867, NFI=0.98, RFI= 0.95, RMSEA=0.004 CMIN/df=0.257, NFI=99, RFI= 0.98, RMSEA=0.000 CMIN/df=0.257, NFI=99, RFI= 0.98, RMSEA=0.000

Figure 3. Confirmatory factor analysis for model’s measurement patterns

Significance level (P) is necessary to expound CMIN. It is said that less CMIN value would lead into

more satisfied pattern devised by author if P – Value is greater than 0.05, CMIN would be admirable for

the model (Tinsley & Brown, 2000). Since P-Value is greater than 0.05 for both measurement models

(observed variables, one can conclude that CMIN value is suitable for these model. Other valid indicators

used for model fitness are RFI and NFI. When RFI and NFI are closer to 1, there is better fitness of the

model (Tinsley & Brown, 2000). In present study, RFI and NFI are greater than 0.90 which indicates

good fitness for model data.

RMSE is another indicator of model fitness which is admirable when it is 0.08 or lesser. Fitness of

models with values greater 0.1 is considered as weak (Tinsley & Brown, 2000). As seen in the table, the

value of this indicator is less 0.08 which indicates proper fitness of the models. Ultimately, one can

conclude that measurement models (observed variables) enjoy good fitness. It means that explicit

variables can measure implicit variables well. Likewise, confirmatory factor analysis along with P minor

indicator was analyzed to test factor load. Factors loads for all questions were greater 0.05 and P-value

was less 0.05. Therefore, one can conclude that questions measure observed variables well.

6. Results

After analyzing and confirming the model, critical and P values in Amos software package are used to

test the significance of the main hypothesis. Based on 0.05 significance levels, critical values should be


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greater 1.96. Likewise, SPSS19 software and single variable linear regression test are used to test minor

hypotheses that their results are depicted in table 4. Both SEM and Amos18 software package are used to

test main hypothesis. Figure 4 shows the output of this software.

CMIN/df=1.605, P-Value=0.046, NFI=0.900, CFI= 0.955, RMSEA=0.074

Figure 4. The research practical model

According to figure 4, one can conclude that model enjoys very good fitness. Concerning the results of

analyzing the model, research hypotheses are analyzed and the results are depicted in table 4.

Table 4. Path coefficients and values of critical parameters of the research hypotheses

Hypotheses Path

coefficients Critical

parameters Result

H1: Knowledge strategy has a positive and significant

impact on staff empowerment. 0.81 5.581 supported


impact on sense of efficacy. 0.56 7.34 supported


impact on sense of choice. 0.48 5.68 supported


impact on sense of sufficiency. 0.50 6.01 supported


impact on meaningful sense. 0.37 4.21 supported

All coefficients are significant in level of 0.05

Therefore, by 95% confidence, one can say that knowledge strategy impacts on knowledge workers’

empowerment positively. By the same confidence, one can claim that knowledge strategy impacts on

empowerment explicit variables directly. In addition to test hypotheses, the level of variables in


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Petrochemical Company was determined and depicted in table 5. To determine each level of research

variables, average comparison test is used based on below hypotheses.

Table 5. The means of research variables level

Variables Mean Sig 95% Confidence Interval of

the Difference Lower Upper

Borrowers 3.60 0.00 0.40 0.13 Beneficiaries 3.53 0.01 0.52 0.23 Explorers 3.90 0.01 0.46 0.11 Innovations 3.22 0.00 0.72 0.26 Meaningful sense 3.31 0.02 0.59 0.19 Sense of sufficiency 3.18 0.03 0.45 0.14 Sense of choice 3.25 0.00 0.60 0.18 Sense of efficacy 3.16 0.01 0.73 0.25

To determine the level of each research variable, average comparison test is used based on below

hypotheses.

H0: µ=3

H1: µ≠3

If Sig is less 0.05, H0 is not supported. Table 5 indicates the results of scores average test in the

population. Concerning table 5, Sig for all variables is less 0.05. Therefore, H0 is not supported. It means

that there is significant difference among research variables. Concerning positive higher and lower levels,

one can say that the average of variables is greater than 3. As a result, it is desired level.

6. Discussion & Conclusion

Today, organizations are facing with different challenges that overcoming them needs capable and

empowered human resources. Therefore, empowerment is a necessity for any organization. Different

aspects are identified for employees’ empowerment and its aspects of which the impact of knowledge

strategy on employees’ empowerment is considered in present study. Knowledge strategy and employees’

by using structural equation approach are analyzed in Lorestan Petrochemical Company and the findings

indicate positive impact of knowledge strategy on employees’ empowerment and its aspects.

As shown in figure 4, among affecting aspects of knowledge on employee’s empowerment, explorers’

strategy has allocated the highest factor load. Although table 5 indicates that its status is desired in

Petrochemical Company, concerning its important in employees’ empowerment success, it is expected

that organizations conduct more investments in this regard. Explorers’ strategy is followed by innovators’

strategy, exploiters’ strategy and borrowers’ strategy. Hence, organizations are recommended to conduct


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necessary supports by which they can be recognized as a pioneer in learning field and confirming the

importance of employees’ empowerment. Those organizations that are looking for success in employees’

empowerment sufficiently pay attention to the fact that policies and regulations which limit access to

information and knowledge should be eliminated and the velocity of access and sharing knowledge

should be increase in organization. Organizations are recommended to increase authority assignments,

knowledge transfer, inter-organizational training courses, responsibility and independence in employees’

decision making and self – efficacy feeling through empowerment plans in order to create an effective

and efficient learning system.

Additionally, among the aspects of employees’ empowerment success, right of choice has the highest

factor load. Hence, organizations are suggested to develop voluntarily contribution of the people by

achieving the maximum empowerment success so that employees feel higher right of choice. According

to figure 4 and in terms of factor load, right of choice is followed by competency, meaningfulness and

effectiveness senses empowered people feel self – efficacy and value the purposes of their actions.

7. Suggestions

Overall, by adopting an applied approach, organizations are recommended pave the ground to achieve

their employees’ empowerment. Based on research findings, one can point out setting proper knowledge

strategies. Combining daily tasks on knowledge strategy, managers’ supports and knowledge use are all

effective to increase competition and efficiency. Employees’ empowerment is a principle by which one

can improve the quality and services to customers constantly. The findings indicate that each knowledge

strategy component has a high impact on employees’ empowerment and makes the ramifications in such

organizations more efficient. Last not the least, it should be noted that similar to other researches, the

findings of present study are facing with limitations such as the impossibility of extending the findings to

other statistical populations, limitations in executing the questionnaires, inadequacy of existing similar

studies and lack of similar researches to compare relevant results.

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