Proceedings of the 8th International Conference on Intellectual ...

Samuel Kai Wah Chu et al.
Statistical analysis reveals a correlation coefficient <strong>of</strong> 0.086, which does not support a strong
relationship between scores <strong>of</strong> KM maturity level and VAIC, as shown in Table 6. The strength <strong>of</strong>
linear relationship between KM and IC was extremely weak.
Prior study by Turner and Minonne (2010) claims an interrelationship between IC and KM. As reviewed
earlier, many scholars proposed KM as a foundation for IC. Our results contradicted with <strong>the</strong> hypo<strong>the</strong>sis
<strong>of</strong> a relationship between KM and IC.
Table 6: Correlation statistics between scores <strong>of</strong> KM maturity level and VAIC
Pearson Correlation
VAIC KM Maturity Level score
VAIC - 0.086
KM Maturity Level score 0.086 -
5. Limitation
Merely 26 companies were willing to complete <strong>the</strong> questionnaires. The sample size was small. One
representative from each company was invited to fill out <strong>the</strong> questionnaire. The results collected may be
affected by <strong>the</strong> prejudice and positions <strong>of</strong> <strong>the</strong> respondents. Ideally, such bias can be minimized if data
from employees <strong>of</strong> various grades working at <strong>the</strong> same organization can be collected. The employment
grade <strong>of</strong> respondent from each company is shown in Table 7.
Table 7: Employment grade distribution <strong>of</strong> survey respondents
Frequency
Employment grade
1
Director
12
Manager
13
Executive
Fur<strong>the</strong>rmore, <strong>the</strong> questionnaire was designed with ease <strong>of</strong> administration in mind; <strong>the</strong>refore <strong>the</strong>re was a
constraint in word count. KM concepts may not be easily communicated to <strong>the</strong> layman under word limit
constraint. Hence, some KM terminologies have been used to express concepts concisely. However,
participants may not be able to grasp <strong>the</strong>se abstract concepts without a background in <strong>the</strong> discipline.
Fur<strong>the</strong>rmore, <strong>the</strong> questionnaire was translated from English into Simplified Chinese as that was <strong>the</strong>
main language used in mainland China. This fur<strong>the</strong>r contributed to an additional layer <strong>of</strong> complexity.
Therefore it may be possible that <strong>the</strong>re were some misinterpretations <strong>of</strong> meanings, and <strong>the</strong> scores <strong>of</strong>
<strong>the</strong> KM maturity level may not fully reflect <strong>the</strong> reality. In <strong>the</strong> future, data accuracy may be enhanced if a
briefing about KM concepts can be conducted to participants before data collection.
With regards to using VAIC to gauge IC performance, some scholars have questioned about <strong>the</strong>
basic assumptions <strong>of</strong> <strong>the</strong> VAIC methodology. There was no clear justification for how <strong>the</strong> various
components <strong>of</strong> VAIC are determined, and <strong>the</strong>se components are interdependent (Kujansivu, 2006).
There is no verification <strong>of</strong> how good VAIC is as an IC performance assessment. Hence <strong>the</strong> VAIC
figures in this study may not reflect <strong>the</strong> true level <strong>of</strong> IC performance <strong>of</strong> <strong>the</strong> surveyed organizations.
6. Conclusion and fur<strong>the</strong>r studies
The research result provides insight for companies in evaluating <strong>the</strong>ir KM strategy and developing <strong>the</strong>
IC potential. All <strong>of</strong> <strong>the</strong> surveyed companies had an overall KM maturity level <strong>of</strong> above 3. In order to
sustain market competitiveness in today’s fast-paced world, mainland Chinese organizations may need
to streng<strong>the</strong>n <strong>the</strong>ir KM strategy to harness more value from IC. As a starting point, organizations may
explore integrating KM practices into business strategy.
As networking was found to be less matured KM dimension in <strong>the</strong> surveyed companies, mainland
Chinese organizations may wish to nurture <strong>the</strong> concept <strong>of</strong> knowledge sharing among employees to
encourage development <strong>of</strong> knowledge networks. Also, such networking activities may be streng<strong>the</strong>ned
with formation <strong>of</strong> communities <strong>of</strong> practice, infrastructure development and technological support.
This study extends prior research through conducting an empirical investigation <strong>of</strong> <strong>the</strong> existence <strong>of</strong> a
relationship between scores <strong>of</strong> KM maturity level and VAIC. Moreover, this study may be one <strong>of</strong> <strong>the</strong>
136