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Global Business and Management Research: An International Journal
Vol. 11, No. 1 (2019, Special Issue)
35
Creating Knowledge Management with the Role of
Leadership and Organizational Culture: Evidence
from State Owned-Port Company
Darwis Agustriyana
Widyatama University
Email: [email protected]
Dematria Pringgabayu Pajajaran Politechnic
Abstract
The research was conducted to determine whether the leaderhsip and organizational culture
have positive and significant impact on knowledge management at State Owned-Port
Company. This study has three variables, namely the leaderhsip and organizational culture as
an independent variable and knowledge management as the dependent variable. Data obtained
from interviews and questionnaires were distributed to the employee population at State
Owned-Port Company This research method uses descriptive method and verification method.
Data processing is performed using path analysis. The result of this study indicate that
leadership has a significant influence 12,8% on knowledge management and organizational
culture has a significant influence 26,7% on knowledge management at State Owned-Port
Company. Simultaneously, leadership and organizational culture have total influence 0,958 on
knowledge management at State Owned-Port Company.
Keywords: Leadership, Organizational Culture, Knowledge Management
Introduction Implementation of knowledge management in an enterprise is bound to face obstacles because
it involves all employees in the company. It would appear the refusal of employees resulting
from the change that must be faced by them in the application of this knowledge management.
For the implementation of knowledge management at this stage needs the right leadership that
is able to accommodate the needs of employees. According to Robbins (2003: 163), leadership
is the ability to influence a group toward the achievement of goals. Leadership is needed to
address objections from the parties that do not support the application of knowledge
management so that eventually all employees will be motivated to become involved in the
process of knowledge management.
Through knowledge management, competent human capital will be generated State Owned-
Port Company according to the company's core business as an Terminal Operator. This human
capital in the future is expected to generate further innovations that can be a source of
competitive advantage for State Owned-Port Company. This human capital will eventually
become an important asset for State Owned-Port Company. In order to be an asset for the
company is certainly a lot of activities that must be performed by employees in connection
with the process of knowledge management.
There are eight implementations / programs of knowledge management is done in State
Owned-Port Company, which consists of a Community of Practice (CoP), Knowledge Sharing,
Knowledge Cafe, Capturing Knowledge, Innovation Implementation, Library (Offline),
Global Business and Management Research: An International Journal
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36
Knowledge Taxonomy and Knowledge Portal System. Based on the interview on March 1,
2016 by the person in charge of knowledge management, of the eight existing programs that
run only three programs, namely Knowledge Sharing, offline library, and Knowledge Cafe.
However, the implementation of the three programs is assessed not maximized because of the
expected output of these two things still do not fulfill the purpose of the application of
knowledge management at State Owned-Port Company, innovation. This happens due to the
employee's own individual factors, the role of leadership and organizational culture in State
Owned-Port Company.
Table 1: Employee Satisfaction and Engagement Survey 2015
No Variable Score
1. Strategy and Organization 3.91
2. Career management 3.79
3. Training and Development 3.86
4. Performance Management 3.92
5. Remuneration and Welfare 4.03
6. Industrial relations 3.35
7. Work Environment and Corporate Culture 3.47
Average 3.76
Employee satisfaction towards leadership in State Owned-Port Company based on the results
of Engagement Employee Satisfaction Survey and 2015 in Table 1, indicated by the variable
Work Environment and Corporate Culture. When sorted from highest to lowest value then this
variable is ranked sixth with a score 3.47. And by grouping values, a rank value of 1 to 5, the
value in category "Pretty in accordance with the needs of the employees". Employees felt their
working relationship with the boss is not conducive due to the lack of communication open,
and still the superior cannot be an example and backup subordinates well. The absence of a
Chief Knowledge Officer specially appointed by the company responsible for knowledge
management has also become one of the causes of the ineffectiveness of the eighth knowledge
management program is established.
In the Care core values are key behaviors such sensitive and alert attitude that should be owned
by every employee of State Owned-Port Company. In the main behavior is sensitive, one of
the characteristics are substantially the employee is expected to adopt the habit of learning on
an ongoing basis. It can be seen in Table 1, employee satisfaction score of organizational
culture variables contained in the Work Environment and Cultural Organization were in a
category of "Pretty in accordance with the needs of employees". Employees feel the application
of the corporate culture needs to be scaled back. Increased organizational culture
implementation is expected to support all management processes, particularly knowledge
management.
Those conditions indicate the existence of a gap between core cultural values embraced State
Owned-Port Company with the values held by employees. Ideally, employees should be able
to adopt the habit of learning in sustainability, but in reality the culture of the company has not
been implemented to the fullest, where employees are not accustomed to sharing knowledge
which may result in gaps in knowledge among employees. Above occurs because of an
organizational culture that has not been established, where the culture of the organization has
not accustom employees to share their knowledge on their own initiative. Therefore State
Owned-Port Company need to change the culture that could become the foundation for the
company in order to create the environment to share knowledge and learning among
employees.
Global Business and Management Research: An International Journal
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37
Those findings indicate that knowledge management at State Owned-Port Company is still not
running well due to several factors that inhibit knowledge management such as the lack of a
leadership role in the company as well as an organizational culture that does not yet support
the programs contained in the knowledge management.
Design/ Methodology/ Approach This research using verification method. Verification analysis according to Nazir (1999: 63) is
a method of research that aims to determine the relationship between variables through a
research hypothesis testing using statistical calculations. In this study, verification methods
used to examine the relationship between the independent variables are leadership and
organizational culture and the dependent variable is the knowledge management at State
Owned-Port Company.
The study, using the entire population or total sampling (census). This sampling with expected
result can be more likely to approach the real value and also is expected to minimize the
occurrence of errors / deviations from the population value. According to data from the HR
State Owned-Port Company, the total population found in State Owned-Port Company is as
many as 412 employees.
Findings From table 2, t value for the variable Leadership (X1) is greater than t table, which means
partially Leadership variable has significant influence on the Knowledge Management in State
Owned-Port Company. As for how much influence the Leadership Knowledge Management,
can be seen from the value of r square (determination coefficient) of 0.128 which means that
the leadership has the effect of 12.8% in the form of Knowledge Management in State Owned-
Port Company.
Table 2: Leadership (X) Effect toward Knowledge Management (Y)
Model Summary
Model R R Square
Adjusted R
Square
Std. Error of
the Estimate
1 .357a .128 .126 3.21537
a. Predictors: (Constant), GK
Coefficientsa
Model
Unstandardized
Coefficients
Standardized
Coefficients
t Sig. B Std. Error Beta
1 (Constant) 24.774 2.034 12.181 .000
GK .285 .038 .357 7.587 .000
a. Dependent Variable: KM
From Table, 3 t value for the variable Organization Culture (X2) is greater than t table, which
means partially has significant influence on Knowledge Management in State Owned-Port
Company. As for how the influence of organizational culture on Knowledge Management, can
be seen from the value of r square (coefficient of determination) of 0.267 which indicates that
organizational culture has influence amounted to 26.7% in the form of Knowledge
Management in State Owned-Port Company.
Global Business and Management Research: An International Journal
Vol. 11, No. 1 (2019, Special Issue)
38
Table 3: Organizational Culture (X) Effect toward Knowledge Management (Y)
Model Summary
Model R R Square
Adjusted R
Square
Std. Error of
the Estimate
1 .517a .267 .265 2.94763
a. Predictors: (Constant), BO
Coefficientsa
Model
Unstandardized
Coefficients
Standardized
Coefficients
t Sig. B Std. Error Beta
1 (Constant) 21.116 1.598 13.210 .000
BO .284 .024 .517 11.964 .000
a. Dependent Variable: KM
Based on table 4 it can be seen that the significance value for the variable Leadership to
organizational culture is 0,000 less than the value of α (0:05) so that it can be said that the
leadership does have a positive influence and significant in shaping the organizational culture
in State Owned-Port Company. As for how big the impact can be seen from r-square value
(coefficient of determination) of 0.057 which means that the leadership effecting 5.7% in
shaping the organizational culture in State Owned-Port Company.
Table 4: Leadership (X1) Effect toward Organizational Culture (X2)
Model Summary
Model R R Square
Adjusted R
Square
Std. Error of
the Estimate
1 .238a .057 .054 6.075
a. Predictors: (Constant), GK
Coefficientsa
Model
Unstandardized
Coefficients
Standardized
Coefficients
t Sig. B Std. Error Beta
1 (Constant) 48.319 3.843 12.575 .000
GK .345 .071 .238 4.864 .000
a. Dependent Variable: BO
Partial regression analysis results showed that the two independent variables used in this study,
leadership and organizational culture, both have significant positive influence on Knowledge
Management implemented in State Owned-Port Company. But of the two independent
variables, organizational culture becomes a variable that has a greater influence on Knowledge
Management, compared the variables of leadership. This shows that strengthen or expedite the
Global Business and Management Research: An International Journal
Vol. 11, No. 1 (2019, Special Issue)
39
implementation of Knowledge Management in State Owned-Port Company is an
organizational culture that is in it. So that employees felt the Knowledge Management activities
have become daily and implemented as is customary in the work.
Table 5: Simultaneous Analysis
Model Summary
Model R R Square
Adjusted R
Square
Std. Error of
the Estimate
1 .570a .325 .322 2.83178
a. Predictors: (Constant), BO, GK
ANOVAb
Model
Sum of
Squares df Mean Square F Sig.
1 Regression 1514.837 2 757.418 94.453 .000a
Residual 3143.432 392 8.019
Total 4658.268 394
a. Predictors: (Constant), BO, GK
b. Dependent Variable: KM
Alternate
Hypothesis
F df F table Recommen
dation
Conclusion
X1 and X2 simultaneously
effecting Y
94.45
3
df1 = 2 3.04 H0 rejected Significant
df2 = 392
Table 5 shows the results of ANOVA analysis and the coefficient of determination. We can
see that simultaneously, independent variable has a value of R Square of 0.325 which means
that independent variable has an influence of 32.5% to the dependent variable. While the value
of significance at 0.000 ANOVA worth less than the default value of α (0.05), indicating that
simultaneously, two independent variables (leadership and organizational culture) has an
influence on the dependent variable (Knowledge Management).
Table 6: Direct and Indirect Effect Leadership (X1) and Organizational Culture (X2) toward
Knowledge Management (Y)
Variable Direct effect
toward
Knowledge
Management
Dierct effect
toward
Organizational
Culture
Indirect effect
toward Knowledge
Management
Leadership 0.357 0.238 (0.238 x 0.357) =
0.084
Organizational
Culture
0.517 - -
Global Business and Management Research: An International Journal
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From table 6 we can know that leadership has low direct effect in shaping knowledge
management that is equal to 0.357, while the indirect effect through organizational culture just
get a value of 0.084. While the organizational culture has a strong influence on knowledge
management. So based on the above calculation, the total effect is equal to 0.357 + 0.084 +
0.517 = 0.958. This suggests that leadership through organizational culture has very strong
influence on knowledge management.
Research Limitations and Implications Based on the analysis that has been carried out and developed, it can be concluded as follows:
1. Leadership in State Owned-Port Company in good level, which means leadership that in this company considered suitable by their employees. Good leadership is expected
to improve knowledge management activities through the captainship in motivating and
an example for employees to get involved to share knowledge to their fellow
colleagues.
The corporate culture at State Owned-Port Company in strong level, means the
company has a culture where employees feel comfortable working at this company.
Strong organizational culture may be further directed to the culture of sharing, where a
culture of sharing can support knowledge management activities at State Owned-Port
Company.
Knowledge management at State Owned-Port Company in effective level, which means
that the company has been able to focus the activities that exist in knowledge
management on the formation of the behavior and attitude of the employees, so that
they can be aware and make sure knowledge of what they have and what knowledge
can be distributed to the company.
2. Leadership has positive influence on knowledge management amounted to 12.8%, which means that any change in leadership will affect knowledge management.
3. Organizational culture has positive influence on knowledge management amounted to 26.7%, which means that the organizational culture provides a greater influence than
the leadership, so that any change in the organizational culture will influence the
knowledge management.
Practical Implications Based on the research that has been described above, the researchers gave the following
recommendations:
1. To improve the leadership improvements needed for the leaders relating to the employment relationship with subordinate who was not conducive. Increasing the trust
the leader to his subordinates to take important decisions, for example through the
assignment or transfer of authority to subordinates so that in the end can build good
trust from subordinates to superiors. If employees are given the freedom to take
decisions in the work by their leader, the employee will feel that their leader was right
to trust and responsibility a great job on their own.
2. To improve the organizational culture improvements needed in terms aggressiveness which shows that the company is still less allow employees to be competitive in the
work. One way that can be done to improve the competitive spirit of employees is to
provide a special reward for employees through knowledge management activities,
such as holding a contest of innovation that idea came from knowledge management
activities are carried out within the company.
3. To improve knowledge management improvement needed in terms of personal knowledge that shows that the knowledge of the individual employee cannot be grown
through their own experience. In the knowledge management activities of the company
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should further implement the best practices so that employees can immediately find an
application directly from a knowledge of the job to then be applied to their daily work.
Originality/ Value
Leadership
According to Kartono (2006: 10), leadership is an aspirational strength, strength of spirit,
creative and moral force, capable of affecting the members to change attitudes, so that they
become conform to the wishes of the leader. Meanwhile, according to Robbins (2003: 163),
leadership is the ability to influence a group toward the achievement of goals. Leadership is a
process that affects in determining the organization, motivating followers to achieve the
objective behavior, influence to improve the group and its culture (Riva, 2005: 2).
According to Nawawi (2006: 128-169) leadership theory can be divided into trait theory,
behavior theory, situational theory, and the theory of attribution. Preliminary studies on
leadership conducted in the 1940s-1950s, focusing on the properties of the leader. The
researchers tried to find individual characteristics that distinguish a successful leader and failed
leaders. And finally tried to link characteristics such as personality, emotional, physical,
intellectual and other individual characteristics of a successful leader in the past.
In contrast to the trait theory, the behavioral approach is focused on the effectiveness of a
leader, not the appearance of the leader. Behavioral theory focuses on two leadership styles are
task-oriented leadership style (task orientation) and orientation on employees (employ
orientation). The orientation of the task is the behavior of leaders who emphasize that the tasks
executed properly by directing and controlling strictly subordinate. Employee orientation is a
behavior that emphasizes leadership to subordinates in carrying out their duties involve
subordinates in decision-making processes relating to their duties, and develop friendly
relations of mutual trust and mutual respect between the group members.
According to Bateman and Snell (2009: 450-453) either approach to nature or groups proved
inadequate to express leadership theory thoroughly, attention redirected on aspects of
situational leadership, as Fiedler's Contingency Model, Hersey and Blanchard's Situational
Theory and Path-Goal Theory.
Organizational Culture
Organizational culture is a value that is believed to be the characteristics given to the members
of an organization. According to George and Jones (2002: 531), organizational culture is
informal values, norms, and beliefs that control how an individual and groups interact in
organizations, both within the organization and outside the organization.
Bateman and Snell (2009: 75) says that organizational culture is a collection of various
assumptions, goals, and activities relating to the organization of mutually shared by employees.
Organizational culture gives an overview of how to organize and guide the behavior of
employees in the work. Mangkunagara (2005: 113) concluded that organizational culture is a
set of assumptions or system of beliefs, values, and norms developed within the organization
guiding the behavior of its members to address the problems of external adaptation and internal
integration.
Based on the definitions described above generally state that organizational culture is a system
of values, beliefs, and customs within an organization owned jointly by all members of the
company, which later in the process will affect the behavior of employees in doing the job.
Cultural organizations also serve as a differentiator between companies because of the special
characteristics formed by the culture.
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Knowledge Management
Knowledge management is an organizational activity in managing knowledge as an asset,
where the various strategies exist channeling the right knowledge to the right people and in a
short time, until they can interact, share knowledge and apply it in their daily work in order to
improve organizational performance. Dalkir (2005: 2) say knowledge management is a
systematic approach is used to ensure the use of knowledge in the organization to do the
maximum, in which knowledge is combined with the expertise, competence, ideas, innovation,
and personal ideas of employees in order to create an organization that is more effective and
efficient.
Tiwana (2000: 5) says that knowledge management as knowledge management company can
generate sustainable competitive advantage (sustainable competitive advantage) by optimizing
the process of creating, communicating, and applying all the knowledge required in order to
achieve business goals. According to Swann in Loermans (2002: 286), knowledge management
is the process of creating, acquire, share, and use knowledge in order to improve the learning
and performance of the company.
According to Honeycutt (2002), knowledge management is a discipline that treats intellectual
capital assets managed. Bateman and Snell (2009: 9) says that knowledge management is an
activity that aims to discover and utilize the intellectual resources within an organization.
Knowledge management aims to find, store, distribute and share broadly crucial resource that
is owned by an organization, such as employee skills, skills, network connections and existing
policies. Thus, it can be concluded that knowledge management is a process to search for,
locate, store, and distribute knowledge (expertise, skills, experience, and network) owned by
individuals within an organization to organizations and individuals that were provided in the
organization.
The theories and the opinion of the experts above illustrates the influence of organizational
culture on knowledge management. The author describes the relationship in the following
research model.
Keywords: Leadership, Organizational Culture, Knowledge Management
Leadership (X1)
Organizational Culture ( X2)
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Conclusion
Nowadays, company placed knowledge as the source of the driving force of the organization,
to become a competitive organization and for competitiveness. When a person leaves the
company, the company must realize that they are left with very valuable knowledge. All
companies face the same problem, namely how to use knowledge more effectively than their
competitors. In an organization, the knowledge obtained from individuals or groups of people
who have the knowledge or knowledge that are sometimes in organizational routines.
Knowledge gained through structured media such as books, documents, portals, person to
person relationships that range from mild to scientific talks, and others
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