Effect of Knowledge Management and Strategies Capabilities on Employee’s Empowerment (Case Study: Aghajari Oil and Gas Production Company)

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Abstract

The main objective of this study is to evaluate and prioritize effect of knowledge management and strategies capabilities on employee’s empowerment (Case Study: Aghajari Oil and Gas Production Company). This study is a descriptive-survey and cross-sectional in terms of timeline. The study subjects include 7592 staffs working at Aghajari Oil and Gas Production Company employees of which using Cochran formula 365 staffs were selected. Research instrument is a standard questionnaire. To measure questionnaire validity and reliability, content analysis and Cronbach’s alpha coefficient (0.83) were used respectively.   Data analysis was performed in PlS and SPSS software and the same time, path coefficient, coefficient of determination, structural reliability coefficient (CR), f2 Cohen coefficient and t test was used to data analysis. The results showed that effectiveness feeling, feeling of having a choice, a sense of autonomy, personalization strategy, encoding strategy, strategy, innovation, knowledge creation and application of knowledge have significant positive effect on empowering employees working in Aghajari Oil and Gas Production Company.

Introduction

Knowledge management serves as a new concept in management science and is a vital for the success of organizations. For this, organizational knowledge should be viewed as a strategic asset in the organization (Bollinger and Smith, 2006). At present knowledge management strategies is so important that outcome of its assessment is used as an index to classify organizations in developed countries (Robertson and Hammerley, 2000, Carter and Scarbrough, 2001). Organizations have numerous resources and assets to fulfill their mission and achieve their goals. Some of these resources and assets are very valuable with great benefits for strategic competitive. Knowledge is vital for all organizations so that the management experts, believes that knowledge is ultimate replacement of production, wealth and money capital (Toffler, 1990). One of the factors affecting staff empowerment, information is knowledge and job skills. Bowen and Lawler define empowerment as participation of front line staff in the four elements of sharing information, knowledge, power and reward (Bowen and Lawler, 1992). Today, knowledge serves as a key asset and valuable as a basis for sustainable growth and a key to sustainable competitive advantage in an organization. In the current increasing global competition, there is no doubt on values, knowledge and learning to improve organizational competencies, (Preto and Revilla, 2004) and knowledge is a strategic resource for organizations that play a key role in creating a sustainable competitive advantage (Grant, 1996). Many organizations apply knowledge management as a strategy in order to achieve the competitive advantage. Since the early 1990s, knowledge management is a vital factor in order to increase productivity and effectiveness (DeLong and Fahey, 2000). Knowledge management can have important strategic results for organizations, for example, it improves competitive position, increases productivity, improves organizational agility, maximizing intellectual capital, increases customer loyalty, improves innovation, improve operational effectiveness and increases value shares of the company (Wu, 2008.). Thus the ability to manage this became very important skill, knowledge and support to ensure organizational success and survival in the new knowledge-based economy (Singh, 2008). In the literature of knowledge management strategy as diagnostic agents for the intensive strategic decision knowledge management activities has started (Chan &Chau, 2005). Organizational knowledge management strategies, processes and infrastructure that are contained within, creating knowledge (Zack, 2002). In this study, we addresses question that what is effect strategy and knowledge management capabilities on employee’s empowerment?

Concluding Remarks

The main hypothesis

The knowledge management strategy has significant impact on employee empowerment. This hypothesis is confirmed. Results of the path coefficient and t test was used to test this hypothesis, suggesting significant positive impact of strategies and knowledge management capabilities on employees’ empowerment. This result is in line with findings of Barzegar and Mohammad (2013), Maharati and Bagherpour, (2013), Sepahvand, (2013), NavidNezafati et al (2012), Keskin (2005), Choi and Lee (2003) and Yusuf and Adeleye (2002).

First hypothesis:

The sense of being effective has significant impact on employee empowerment. This hypothesis is confirmed. Results of the path coefficient and t-test was used to test this hypothesis, sense of being effective positive impact of strategies and knowledge management capabilities on employees’ empowerment. This result is in line with findings of Khaefallahi et al., (2009), Bagheri and Afzali, (2014), Abtahi and Mousavi, (2009),Singh and Renchhood, (2004).

Second hypothesis:

The feeling of having a choicehas significant impact on employee empowerment. This hypothesis is confirmed. Results of the path coefficient and t test was used to test this hypothesis, suggesting significant positive impact of feeling of having a choice on employees’ empowerment. This result is in line with findings of Barzegar and Mohammad (2013), Maharati and Bagherpour, (2013), Sepahvand, (2013), NavidNezafati et al (2012), Keskin (2005), Choi and Lee (2003) and Yusuf and Adeleye (2002).

Third hypothesis:

The self-determination has significant impact on employee empowerment. This hypothesis is confirmed. Results of the path coefficient and t test was used to test this hypothesis, suggesting significant positive impact of self-determination on employees’ empowerment. This result is in line with findings of Barzegar and Mohammad (2013), Maharati and Bagherpour, (2013), Sepahvand, (2013), NavidNezafati et al (2012), Keskin (2005), Choi and Lee (2003) and Yusuf and Adeleye (2002).

 

Fourth hypothesis:

The personalization strategy has significant impact on employee empowerment. This hypothesis is confirmed. Results of the path coefficient and t test was used to test this hypothesis, suggesting significant positive impact of personalization strategy on employees’ empowerment. This result is in line with findings of Barzegar and Mohammad (2013), Maharati and Bagherpour, (2013), Sepahvand, (2013), NavidNezafati et al (2012), Keskin (2005), Choi and Lee (2003) and Yusuf and Adeleye (2002).

Fifth hypothesis:

The coding strategy has significant impact on employee empowerment. This hypothesis is confirmed. Results of the path coefficient and t test was used to test this hypothesis, suggesting significant positive impact of coding strategy on employees’ empowerment. This result is in line with findings of Barzegar and Mohammad (2013), Maharati and Bagherpour, (2013), Sepahvand, (2013), NavidNezafati et al (2012), Keskin (2005), Choi and Lee (2003) and Yusuf and Adeleye (2002).

Sixth hypothesis:

The innovation strategy has significant impact on employee empowerment. This hypothesis is confirmed. Results of the path coefficient and t test was used to test this hypothesis, suggesting significant positive impact of innovation strategy on employees’ empowerment. This result is in line with findings of Barzegar and Mohammad (2013), Maharati and Bagherpour, (2013), Sepahvand, (2013), NavidNezafati et al (2012), Keskin (2005), Choi and Lee (2003) and Yusuf and Adeleye (2002).

Seventh hypothesis:

The knowledge creation has significant impact on employee empowerment. This hypothesis is confirmed. Results of the path coefficient and t test was used to test this hypothesis, suggesting significant positive impact of knowledge creation on employees’ empowerment. This result is in line with findings of Barzegar and Mohammad (2013), Maharati and Bagherpour, (2013), Sepahvand, (2013), NavidNezafati et al (2012), Keskin (2005), Choi and Lee (2003) and Yusuf and Adeleye (2002).

Eight hypothesis:

The application of knowledge has significant impact on employee empowerment. This hypothesis is confirmed. Results of the path coefficient and t test was used to test this hypothesis, suggesting significant positive impact of application of knowledge on employees’ empowerment. This result is in line with findings of Barzegar and Mohammad (2013), Maharati and Bagherpour, (2013), Sepahvand, (2013), NavidNezafati et al (2012), Keskin (2005), Choi and Lee (2003) and Yusuf and Adeleye (2002).

 

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