Determining the Implementation of Knowledge Management for Decision Making and Products Improvement

Abstract

Nowadays, knowledge is increasingly being considered as the main driver of the economy. The success of economies in the future shall thus be based on how organizations create, acquire, use, and leverage knowledge effectively and consequently improve their products by making an informed decision. The main aim of this research is to assess the knowledge management implementation for decision making and product improvement in Arjo-Didessa sugar factory, Ethiopia. As to the methodology, both quantitative and qualitative research designs were used to conduct the study. For the quantitative method questionnaire was employed and the questionnaire were closeended whereas, for the qualitative method, semi-structured personal interview was done with the top managements of the sugar factory by focusing on knowledge management implementation for decision making and product improvement. Regarding the barriers in the factory, the finding of the study revealed that poor sharing of knowledge was found to be the top problem (37.6%) facing the factory in implementing knowledge management followed by lack of information (34.8%) and loss of critical information/knowledge (27.6). Of the study participants, 33.8% revealed that the significance of knowledge management are improving the quality of the product and 1 Corresponding author: worku.jimma@yahoo.com Bilisuma Wakuma, Elsabet Wedajo, Worku Jimma- Determining the Implementation of Knowledge Management for Decision Making and Products Improvement: The Case of Arjo-Didessa Sugar Factory, Ethiopia EUROPEAN ACADEMIC RESEARCH - Vol. V, Issue 5 / August 2017 2525 better decision making while 23.8% of the respondents said that it can be significant to the competitive advantage of the sugar factory. The inferential statistics also revealed that the relationship between knowledge management and product improvement/decision making is statistically significant, p<0.001. The general manager of the sugar factory said that knowledge management is a new initiative and currently the sugar corporation has prepared the manual for open discussion with all stakeholders including every employee in the Factory. The manager also strengthens this by saying: “If knowledge management is fully implemented within the organization, it enhances the decision making at all level and improves competitive advantages of the organization”. Based on the findings, it can be concluded that knowledge management is a paramount for improving competitive advantage, better decision making and improving quality of the products and thus it is highly recommended that the sugar factory considers implementing knowledge management as soon as possible.