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Knowledge management (KM) is associated with higher performance and innovative culture; KM can help the public sector to be fiscally lean and meet diverse stakeholders’ needs. However, hierarchical structures, bureaucratic culture and rigid processes inhibit KM adoption and generate inertia. This study aims to explore the nature and causes of this inertia within the context of the United Arab Emirates (UAE) public sector.

Using an in-depth case study of a UAE public sector organisation, this study explores how organisational inertia can be countered to enable KM adoption. Semi-structured interviews are conducted with 17 top- and middle-level managers from operational, management and strategic levels. Interview data is triangulated with content analysis from multiple sources, including the UAE Government and case organisation documents.

The results show transformation leadership, external factors and organisational culture mediate the negative effect of inertia on KM practices adoption. We find that information technology plays a key role in enabling knowledge creation, access, adoption and sharing. Furthermore, we uncover a virtuous cycle between organisational culture and KM practices adoption in the public sector. In addition, we develop a new model (the relationship between KM practices, organisational inertia, organisational culture, transformational leadership traits and external factors) and four propositions for empirical testing by future researchers. We also present a cross-case comparison of our results with six private/quasi-private sector cases who have implemented KM practices.

Qualitative data is collected from a single case study.

Inertia in a public section is a result of bureaucracy and authority bounded by the rules and regulations. Adopting a qualitative methodology and case study method, the research explores the phenomena of how inertia impacts KM adoption in public sector environments. Our findings reveal the underlying mechanisms of how internal and external organisational factors impact inertia. Internally, supportive organisational culture and transformational leadership traits positively effect KM adoption, which, in turn, has a positive effect on organisational culture to counter organisational inertia. Externally, a progressive national culture, strategy and policy can support a knowledge-based organisation that embraces change. This study develops a new model (interactions between internal and external factors impacting KM practices in the public sector), four propositions and a new two-stage process model for KM adoption in the public sector. We present a case-comparison of how the constructs interact in a public sector as compared to six private/quasi-private sector cases from the literature.

Despite the keen interest in radical and incremental innovation, few studies have tested the varying impact of firm-level factors in service sectors. This paper analyses how collaboration with existing and prospective users and investments in knowledge management (KM) practices can be adapted to maximise the outputs of radical and incremental process innovation in a knowledge-intensive business service industry.

Original survey data from 166 information technology service firms and interviews with 13 executives provide the empirical evidence. Partial least squares-structural equation modelling is used to analyse the data.

Collaboration with different types of users, and investments in KM practices affect radical versus incremental process innovation differently. Collaboration with existing users influences incremental process innovation directly, but not radical innovation; and prospective user collaboration matters for radical, but not incremental innovation. Furthermore, for radical innovation, investments in KM practices mediate the impact of prospective user collaboration on innovation.

While collaboration with existing users for incremental process innovations does not appear to generate significant managerial challenges, to pursue radical innovations firms must engage in intensive collaboration with prospective users. Higher involvement with prospective users requires higher investment in KM practices to promote efficient intra- and inter-firm knowledge flows.

This study is based on a large-scale survey, together with management interviews. Radical and incremental innovations in the service industry require engagements with different kinds of users, and the use of KM tools.

Micro Finance Institution (MFI) named Rojiroti had been doing good work for weaker sections of the society and had brought about significant transformation in the lives of poor people, especially the Scheduled Castes, in villages of Patna district, the capital city of Bihar, India. Rojiroti was run by Centre for Promoting Sustainable Livelihood (CPSL) and had tested successfully a unique innovative model in micro financing which focused on helping the weaker sections by addressing their imminent needs which usually required very small loan amounts. With the various types of benefits people got from buying government subsidized ration to health and education in family to construct home or buy small livelihood assets. The beneficiaries developed high level of respect and trust for the MFI, Rojiroti. Rojiroti had received international recognition from universities such as University of Nottingham, UK; the University was not only researching on the model and its contributions to society, but also had supported it with funding to cater to its audience. Rojiroti did not believe in just providing finance to people like other microfinance institutions (MFI) or corporate social responsibility (CSR) funding by private and public sector organizations; its model focused more on creating capacities in the beneficiaries to sustain their livelihoods. However, after a decades time, Sunil, the protagonist in the case found himself in a situation where he had to decide for the future journey of Rojiroti after having reached a decent stage of growth The case discusses the journey of Rojiroti where the protagonist Sunil had a significant role to play and dwells upon the Rojiroti business model, its beneficiaries and value offerings to them, the changing environment outside and leaves the discussion open on the question of the choice of best road suited for Rojiroti.

The case is intended for the course on Strategic Management with a focus on business models topic. The case introduces the working of social cooperative business model and the nuances around it which is very much pertinent in today’s times where social enterprises have gained space in business and where businesses work around inclusive business models. The case is designed to provide supplemental support or discussion piece while dealing with business model / cooperative enterprise business model. This case provides opportunity to discuss strategic framework for an organization from the promoter’s perspective. The teaching notes is written from the perspective of the entrepreneur (the protagonist in this case, Sunil) who initiated the enterprise, with a learning goal to empathize and develop skills to have strategic decision making for a social enterprise.

The case is designed to provide supplemental support or discussion piece while dealing with business model / cooperative enterprise business model. This case provides opportunity to discuss strategic framework for an organisation from the promoter’s perspective. The teaching notes is written from the perspective of the entrepreneur (the protagonist in this case, Sunil) who initiated the enterprise, with a learning goal to empathize and develop skills to have strategic decision making for a social enterprise.

Teaching notes are available for educators only.

CSS: 3 Entrepreneurship.