Governments around the world have pursued ICT based initiatives including the provision of infrastructure to assist regional areas to develop economically (Beckinsale et al. 2006). There has been considerable interest in exploiting ICT to develop high technology clusters and support innovative networks (Lawson & Lorenz 1999). However, these initiatives have met with mixed success. It is clear that such development depends on more than providing appropriate technology Attention to social and organisational factors is crucial if regional areas are to realise the potential of ICT as a tool for regional development (Gengatharen & Standing 2005). It is important to understand the nature of business networking as well as the perspective of those participating in such networks if successful initiatives are to be established. The aim of this research is to identify how ICT can be used for knowledge sharing among businesses in regional areas and how the online networks through which knowledge is shared can contribute to the development of the region.
This research investigates the question of what value small businesses in those regions derive from knowledge sharing networks using ICT. It also seeks to identify the value creation potential of those networks for their region. Previous research has shown that large organisations have achieved significant value from virtual communities of practice (VCoPs) as a structure for sharing knowledge and supporting innovation (Wenger 2004). The concept of Communities of Practice and Virtual Communities of Practice provided a useful point of departure for this research.
The investigation comprised interpretive case studies of two Australian regional areas and their local business networks which incorporated SMEs in a variety of industries. Each case study was conducted in three stages. First, semi-structured interviews were conducted with regional economic development leaders. Second, 192 small and medium business owners were surveyed about their business activities and their participation in local business networks. Third, in-depth interviews were conducted with 23 small business owners to gain a richer understanding of their participation in knowledge-sharing networks and the value they realised or anticipated from various knowledge-sharing activities. A combined analysis of the two cases was conducted as well as the individual analyses. The research adopted a modified Structured Case method (Carroll & Swatman 2000).
The analysis of the two case studies revealed:
a.) There was a significant difference between the majority of SMEs who traded within the region and those trading largely beyond the region. The latterÂ’s more proactive online sharing knowledge and seeking of business opportunities would enable them to access most value from VCoEs.
b.) The participating SMEs operated in a number of industries and what they had in common was an interest in improving their enterprises. Consequently they used their regional networks which were not aligned to any one industry to make connections and share knowledge. They did not necessarily seek to access specific information.
c.) A necessary prerequisite of VCoEs is having vibrant CoEs where face-to-face interaction enhances the development of trust and social capital. This appeared as an important factor facilitating the move to incorporate online knowledge sharing.
d.) Younger businesses appeared to gain the most value from knowledge sharing in CoEs as they were using their networks to determine how to grow their firm.
e.) The value of VCoEs to the SME participants is primarily in their general connection to other businesses in the region. Since the participants operate in a number of industries, what they have in common is an interest in their enterprises. The main value appears to come from the potential of the VCoEs to add to this connection and to social capital.
This study found that successful management of VCoEs must:
i) Ensure the network website is actively used by members before attempting to incorporate online knowledge sharing.
ii) Monitor and stimulate online forum interaction rather than rely on interaction to occur naturally.
iii) Not rely on email as a mechanism for stimulating knowledge sharing. Email is seen as more appropriate for formal documentation than for candid exchange of views.
The concept of virtual communities of practice was found to be somewhat inappropriate for the diverse SMEs in the regional networks. Because of their diversity, they do not necessarily see value in sharing knowledge about practice but they do see value in sharing more general information and in providing support, connection and ideas that facilitate the strategic direction of their business. To address this issue, the concept of virtual communities of enterprise (VCoEs) is proposed as recognition of what the participating SMEs had in common: an interest in their individual businesses as part of the region.
The original contribution of this research consists of its identification of the issues in linking SMEs across industries. It provides new insights on the business practices of regional SMEs and developed the concepts of Community of Enterprise (CoE) and Virtual Community of Enterprise (VCoE) to capture the special nature of knowledge sharing in regional multi-industry business networks. New perspectives are revealed on the ways that value could be derived from knowledge sharing by these regionally networked SMEs, as such it adds to the body of knowledge in an area where there has been little systematic investigation. This research reinforces the importance of social capital as an essential pre-requisite for accessing the value of intellectual capital in regions. Social capital emerges as vital when establishing and maintaining face-to-face knowledge sharing in regional networks and a necessary pre-condition for successfully establishing online knowledge sharing. Trust is a key factor and this research extends understanding of the role of social capital and the importance of trust in regional networks and online interaction. Its findings have significant implications for the development and management of CoEs and VCoEs as it outlines the key elements that need to be addressed when establishing and maintaining them, the appropriate applications for this context and the issues involved in management of the networking and online contexts. These findings not only increase our understanding of the management dynamics of online networks, they can also provide guidance to those seeking to establish successful VCoEs.
| Identifer | oai:union.ndltd.org:ADTP/204804 |
| Date | January 2008 |
| Creators | Mason, Cecily Jane, cecilym@deakin.edu.au |
| Publisher | Deakin University. Management and Marketing |
| Source Sets | Australiasian Digital Theses Program |
| Language | English |
| Detected Language | English |
| Rights | http://www.deakin.edu.au/disclaimer.html), Copyright Cecily Jane Mason |
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