Inter-organization knowledge sharing - Global supply chain

Inter-organization knowledge sharing, Global supply chain
Abstract
Inter-organization knowledge sharing is identified as a significant predictor in
improving the performance of the business. This paper studiedhow theinter-organization
knowledge sharing of global supply chain can enhance the performance of the
partnership, build stronger supply chain in global marketplace and build close customer-
supplier relationship through study the inter-organization knowledge transfer
requirements and determinants, the value of knowledge sharing in supply chain and the
benefits of the knowledge sharing.
Keywords: Inter-organization knowledge sharing, Global supply chain
1.0 Introduction
Knowledge is regarded as the most important competitive asses for companies as
well as a major source of competitive advantage. The new knowledge is acquired not
only form internal knowledge resources but also from resources outside the
organizational boundaries. Many of organizational relationships have been created to
transfer knowledge. Supply chain partnership is a special type of inter-organizational
knowledge that is highly knowledge-intensive. Acquiring knowledge from a supply chain
partners can help an organization to overcome many failure in supply chain.
Knowledge sharing can help an organization to improve their inter-organizational
coordination and product quality. Thus, inter-organization knowledge sharing among the
supply chain partners has become a common practice as it enhances the competitive
advantage of the supply chain.
Knowledge sharing improves the coordination between the global supply chain
processes to enable the material flow and reduces inventory cost. It also leads to high

level of global supply chain integration by enabling the organization to introduce
products to the market quickly.
2.0 Related Concepts
2.1 Definition of Supply Chain
There are a lot of definitions of supply chain. At present, there has not been a
united one, either.
Handfiled& Nicholas define it as: a supply chain includes all the activities
relevant to the flows of goods and information from the raw material stage to that in
which the goods are delivered to the user [1].
S.H. Ma thinks that the supply chain is not only a substance chain, an information
chain and a capital chain, which connect from supplier to the user, but also a value-added
chain. The value of the substance in the supply chain is added because of the process of
purchasing, packing, shipping, etc. benefiting the enterprises concerned [2].
2.2 Definition of Global Supply Chain
The global supply chain is made up of the interrelated organizations, resources,
and processes that create and deliver product and services to end customers. In the
instance of global supply chains, it is extended around the world. The goal is to deliver a
company’s products and services quickly and at the least cost possible.
2.3 Inter-organizational knowledge transfer
Knowledge transfer between two or more actors (individuals or organizations) can
be defined as the process which the knowledge of one actor is acquired by another [3].
The knowledge transfer process can take place by various means ranging from electronic
exchange of information to personnel co-working e.g. working in a project.

3.0 The Value of Knowledge in Global Supply Chain
Hau Lee, a professor of operations, information and technology at Stanford
University had found out that the top-performing supply chain had three distinct
characteristics [4]. First, they are agile enough to react readily to sudden changes in
demand or supply. Second, they adopt over time as market structures and environmental
conditions change. The last one is they align the interests of all members of the supply
chain network in order to optimize the performance. These three characteristics only
possible when partners promote knowledge flow in the supply chain relationships. The
knowledge sharing enables the supply chains create a chain value for all the stakeholders.
The current trend of the global supply chain had switch from push-oriented to the
demand-driven which focus on identifying and understanding the present and future
needs of the customers and building the supply chain based on the actual demand levels
as opposed to demand forecasts. This can help an organization provide a higher level of
service to customer which on-time deliveries and accuracy of the order placement and
lead to increase the customer loyalty level. The higher level of service helps supply chain
becomes more efficient and effective, less need for overnight deliveries to compensate
for slow turn-around and fewer dissatisfied customers.
Supply chain will become more transparent and giving everyone a better look at
the customers need and value proposition through the knowledge sharing among the
partnership. For example, the more knowledge about the customer needs and demands
throughout the supply chain will increased the demand visibility and more accuracy of
demand forecast which also increase perfect order rates dramatically. The knowledge
about the customer and overall market also can provide a better understanding of market
trends, resulting in better planning and product development.
Many research had consistently shows that the most common factor lead to failure
of the supply chain including out-of-stocks, new product failure rates and excess
inventories. These issues can be solving throughout the knowledge flow in the supply
chain. However, there are still some supply chains members are reluctant to participate in
the knowledge-sharing activities.

4.0 Inter-organizational Knowledge Sharing Requirement
There are two major requirements must be met before knowledge sharing can take
place. These requirements are: (i) intention to share knowledge, and (ii) ability to share
knowledge. These requirements are met as result of overcoming motivational and
cognitive limitations toward knowledge sharing. The notion of cognitive and
motivational limitations toward knowledge state that inadequate transfer of knowledge is
due to two sets of limitations namely, motivational limitation and cognitive limitations.
Cognitive limitations are mainly associated with the ability to share knowledge.
Motivational limitations on other hand are related to the intention to share knowledge. By
overcoming these limitations organizations will have the ability to share knowledge.
When an organization does not intend to share knowledge then it highly unlikely
to devote any time and other resources to it. According to theory of motivation,
individuals intensify sharing their expertise when they are provided with incentives for
doing so. Motivational limitations are related to disincentives such as risk and uncertainty
that inhibit sharing of knowledge. Since effective knowledge sharing cannot be
mandated, there should be enough motivation that results in intention to share knowledge.
In addition to having intention to share knowledge, organizations and individuals
should be able to share their knowledge. Ability to share knowledge is related to
capabilities of both organizations involved in knowledge sharing process to share and
absorb the knowledge. As it is discussed, cognitive limitations cause difficulties in
knowledge sharing and as result it has impact on the ability to share knowledge.
Cognitive limitations inhibit sharing of knowledge and are associated with the way
experts store, process and state their knowledge. These factors are important in
understanding why knowledge is sometime difficult to share and communicate. By
overcoming these limitations organization will have the ability to share knowledge.