Transforming global business firms

Within the last few decades, we have seen a dramatic shift from a labour-driven industrial economy to a knowledge-based model. The push for value creation and productivity have increasingly made us dependent on expertise, ideas and interconnectivity. Innovative knowledge management is necessary, especially within the fast-paced and highly competitive global business environment. 

The exponential growth of international business wherein sourcing for new markets, establishing global connectivity and managing international human resources are common activities of global business firms. However, international business practice is fraught with numerous challenges such as managing workforce diversity, instilling global staff cohesion and maintaining international business policy standards. Therefore, rooting innovative technology into knowledge management practice should be applied to help firms cope with such challenges.

Whilst digitalisation, disruptive technologies and AI have transformed the way people live and work, many firms are reluctant to introduce such tools. Strong leadership support and building a collaborative culture are the first steps needed to direct firms towards successful knowledge management practice. Proper feedback, evidence and research are needed to show employees the positive outcomes of innovative knowledge management practice. Today, successful organisations (for example: Google, Deloitte, Toyota) have used tools like advanced analytics, AI, robotic automation and augmented/virtual reality to boost their knowledge management practice and overall efficiency. Through this, global firms will be able to allow knowledge to be created, codified, shared and applied more effectively across networks and organisational boundaries.

How to achieve the best in knowledge management practice?

Whilst in general the knowledge management process can be complex and challenging, it is further magnified for international business firms with its various cross-border activities, cultural differences and operational processes. Most notably, issues such as lack of digital adoption, information overload and firms’ silo mentality are some hurdles in achieving effective knowledge management practices. However, these issues can be mitigated through a number of ways, such as:

Digital adoption: Digitalisation has been an important element driving knowledge management, especially within the global business arena. Global business activities such as coordinating operational processes, managing global workforce mobility, designing international human resource pay schemes and facilitating global production systems are processes which require proper coordination. Managing large global databases and deciphering their meaning can be both challenging and frustrating for global firms.

In many lesser developed countries, vast amounts of information are still stored in traditional hard-copy files making it difficult for global managers to process and interpret such information. The adoption of digitalised knowledge management processes through the development of ‘information architecture’ (i.e. logical navigation structures) can help firms to collect, collate and manage diverse data such as this. These measures are vital for business efficiency and competitive advantage in the global marketplace.