Knowledge Management Assets Available to Mid-Level Managers During a Merger

Knowledge Management Assets Available to Mid-Level

Managers During a Merger

Chapter 1: Introduction to the Study

Mergers and acquisitions (M&A) have become an inevitable standard of business

operations among companies in the global economy. Since the merger wave emerged in

1897, most U.S. companies have either engaged in or have been affected by M&As to

expand their organizations (Robert, Wallance, & Moles, 2003). Regardless of the

expectation for financial growth, a low percentage of merger transactions have met

company goals. Researchers provided evidence to confirm that more than 70% of

mergers fail to meet a company’s expectation due to the organization’s lack of efficient

analysis, due diligence, and synergy conflicts (Galping & Herndon, 2014). M&A

processes are often applied in business practice, and one of the key motives is the transfer

of new knowledge between the organizations. Knowledge has become the most important

element that influences the development and success of organizations in the global

economy (Miskiewicz, 2017). The key to preventing the loss of tacit knowledge is the

successful identification, capturing, and sharing of tacit knowledge (Hodosi, Johansson,

& Rusu, 2017).

Knowledge is an asset that organizations can use in highly competitive

environments, and knowledge management is the main element of quality improvement,

efficiency, and productivity in a merger (Sabherwal & Sabherwal, 2005). Organizational

researchers and business writers have recognized the importance of knowledge as an asset

to organizations (Drucker, 1998; Nonaka & Takeuchi, 1995). Effective management of

knowledge creation and sharing can promote employee retention and innovation and

contribute to organizational performance (J. Wang, Yang, Chen, & Tsai, 2016).

Knowledge may appear tacitly or explicitly within specific circumstances (Baghbanian,

Torkfar, & Baghbanian, 2012). Explicit knowledge is formal knowledge that is written

down and documented, whereas tacit knowledge is informal and resides in the minds of

individuals as paradigms, mental models, know-how, and personal experience (McAdam,

Mason, & McCrory, 2007). Nonaka and Takeuchi (1995), using Japanese companies as a

model, argued that the key to Japanese business success is recognition of the importance

of tacit knowledge. Nonaka and Takeuchi explained how Japanese organizations convert

both tacit and explicit forms of knowledge into innovations in products and processes.

In the current qualitative descriptive phenomenological study, I aimed to

understand the lived experiences of mid-level managers utilizing knowledge management

assets in the retention of employees at a medium-size information technology firms in

California. The results of this study may be significant to leaders, managers, and

employees of organizations that are planning to merge or are in the process of merging. In

Chapter 1, I provide a brief background of the research, problem statement, purpose

statement, framework, assumptions, delimitations, and limitations.

Background of the Study

There are numerous obstacles for companies engaging in M&As. Mergers impact

all levels of an organization and operating efficiency (Teerikangas, 2012). According to

Hinescu (2014), the effect of mergers goes beyond the stakeholders, creditors, and third

parties. A major reason for a merger is often the objective for gaining new knowledge

from the acquired company and then transferring that knowledge among other parts of the

organization (Bresman, Birkinshaw, & Nobel, 1999). Knowledge management is the

capturing, coding, or rendering of tangible and intangible knowledge into tacit or explicit

knowledge (Nonaka & Takeuchi, 1995). In 2012, 30% of global companies focused on

knowledge management practices or continuous learning by managers (Michels, Grijo,

Machado, & Selig, 2012). Knowledge is an asset that corporations can utilize in highly

competitive environments, and knowledge management is the main element of quality

improvement, efficiency, and productivity (Bharadwaj, 2000). According to Spender and

Grant (1996), the way knowledge is integrated within an organization can lead to unique

capabilities that are prerequisites for a competitive advantage. Bresman et al. (1999)

noted that the transfer of knowledge and its application involves many challenges.

Employees of acquired firms often have positive and negative reactions because they do

not know what role they will play, if any, in the new organization (Rafferty, 2007). Due

to a lack of training and necessary skills mid-level managers should have for these

transitions, employees can feel lost in the process (Taylor, Austin, & Caputo, 1992).

According to Empson (2001), to understand the issues behind knowledge transfer, the key

factor to be studied is the employees. If managers do not implement knowledge

management within the organization effectively, employees may not have the opportunity

to codify, transfer, or share their knowledge before they depart (T. T. Kim, Lee, Paek, &

Lee, 2013). I found research on knowledge management and mergers, but there was a gap

regarding the strategies information technology managers use to implement a knowledge

management program.

The desired outcome of M&A requires retention of knowledgeable employees

(Castro & Neira, 2005). Adomako, Gasor, and Danso (2013) observed that managers

continue to manage the employees through the merger; however, managers are often busy

trying to understand the merger and what is expected of them. Marks and Mirvis (2001)

noted that 3 out of 4 mergers fail to achieve their strategic objectives once a merger is

announced. Managers are responsible for ensuring the employees are retained while the

merger is taking place (Shaban, 2016). During the integration process, motivation of

personnel is important to increase their willingness to share and absorb the transferred

knowledge (Podgorski & Sherwood, 2015). According to J. Zhang, Ahammad, Tarba,

Cooper, Glaister, and Wang (2015), managing employees’ talent is one of the core issues

during a merger process. Öberg and Tarba (2013) argued that the established social

relationships between the acquiring and the acquired company can positively impact the

transfer of knowledge. A manager needs to have the skills and tools to manage the

employees through a merger (Shaban, 2016). Successful mergers include active manager

involvement (Kelly, Cook, & Spitzer, 1999). It is also important the managers have some

knowledge management assets to resolve cultural issues, ensure effective communication,

and look after the employees (Podsiadlowiski, Groschke, Kogler, Springer, & Van Der

Zee, 2013). Mid-level managers should have a full understanding of knowledge

management and how to help in retaining their employees’ tacit knowledge (Hau, Kim,

Lee, & Kim, 2013). Mid-level managers have a responsibility in the creation and

retention of tacit knowledge (Nonaka & Takeuchi, 1995).

Problem Statement

The failure rate of mergers in the United States is high at over 70% (Steynberg &

Veldsman, 2011). One of the major contributing factors to merger failure is that mid-

level managers do not have sufficient strategies for knowledge management (Michels et

al., 2012). The lack of strategies to develop and implement knowledge management

threatens organizational performance, competitive advantage, and profits due to

knowledge loss from departing employees (Massingham & Massingham, 2014). In 2012,

70% of global companies did not focus on knowledge management strategies for projects,

which led to failed mergers (Marks & Mirvis, 2001; Michels et al., 2012). Knowledge

management is defined as the capturing, codifying, or rendering of tangible and

intangible knowledge into tacit or explicit knowledge (Nonaka & Takeuchi, 1995). Mid-

level managers have knowledge management assets at their disposal, yet they are not

being strategically used to assist in the development and implementation of knowledge

management during a merger (James & Sankaran, 2006). Knowledge management assets

are defined as conceptual, routine, experimental, and systemic firm specific resources,

including stocks of knowledge (Chou & He, 2004; Nonaka & Takeuchi, 1995). The

general management problem was that mid-level managers at medium-size information

technology firms have awareness of available knowledge management assets but do not

use such assets to integrate acquired employees during a merger (see Garcia & Coltre,

2017). The specific management problem was that midlevel managers may not have

improved strategies to facilitate knowledge management assets during a merger (see

Ouriques, Wnuk, Gorschek, & Svensson, 2019).

Understanding mid-level managers experiences may help to establish strategies regarding

knowledge management assets available to them during a merger and may increase the

knowledge in the community of merger success and contribute to employee retention

(James & Sankaran, 2006). The improvement of employee retention may assist with

greater organizational stability by increasing employee job satisfaction and decreasing

employee turnover.

Purpose of the Study

The purpose of this qualitative descriptive phenomenological study was to

understand the merger-related knowledge management assets used by mid-level

managers in the retention of employees at recently merged medium-size information

technology firms in California from 2014 to 2019. The results of this study may

contribute to positive social change because mid-level managers may be able to

understand the strategic uses of knowledge management assets that are necessary to share

knowledge within their organizations.

Research Question

What are the lived experiences of mid-level managers in their use of management

assets to retain employees of recently merged medium-size information technology firms

in California from 2014 to 2019?

Conceptual Framework

The conceptual framework for this study was Nonaka and Takeuchi’s (1995)

organizational knowledge creation and transfer. The framework offers four modes of

knowledge conversion: socialization, externalization, internalization, and combination

(SECI; Nonaka & Takeuchi, 1995). Nonaka and Takeuchi’s framework suggests that

knowledge is continuously converted and created as users practice, reflect, and learn.

Nonaka and Takeuchi’s (2000) SEIC model illustrates the knowledge management

process as the capturing, codifying, and rendering of tangible and intangible knowledge

into tacit or explicit knowledge, as shown in Figure 1.

Figure 1. Four models of knowledge conversion (Nonaka and Takeuchi, 1995).

Reprinted with permission.

Socialization is the sharing of tacit knowledge through observation, imitation,

practice, experience, brainstorming, and collective sharing of ideas in a formal and

informal setting (Nonaka & Takeuchi, 1995). Socialization begins with building a space

of social interaction so that the practiced skills become part of the existing knowledge

with the organization (Nonaka & Takeuchi, 1995). Externalization is the interchange of

tacit knowledge to explicit knowledge (Nonaka & Takeuchi, 1995). In externalization,

formal knowledge is maintained in manuals, audio files, and documents (Nonaka &

Takeuchi, 1995). Externalization means ensuring the availability of tacit knowledge to

other members of an organization (Nonaka & Takeuchi, 1995). Internalization is the

conversion of explicit knowledge to tacit knowledge (Nonaka & Takeuchi, 1995).

Nonaka and Takeuchi (1995) noted that “documentation helps individuals internalize

what they experienced, thus enriching their tacit knowledge” (p. 69). Internalization

means learning by doing (Nonaka & Takeuchi, 1995). Combination is the interchange of

explicit knowledge to explicit knowledge (Nonaka & Takeuchi, 1995). Combination

means combining various types and forms of formal knowledge/explicit knowledge to

generate new formal knowledge (Nonaka & Takeuchi, 1995).

Nonaka & Takeuchi (1995) defined this continuous process of knowledge creation

among these four patterns as the knowledge spiral. Tacit knowledge is defined as

individual experienced-based knowledge that is difficult to share, transfer, and

communicate from one individual to another (Nonaka & Takeuchi, 1995). Explicit

knowledge is defined as knowledge that is easy to share from person to person, or

codified knowledge that is stored, documented, or captured in the form of books (Nonaka

& Takeuchi, 1995). The transfer from tacit to explicit knowledge is more important than

any other dimension for learning purposes (Herschel, Nemati, & Steiger, 2003). All four

modes of knowledge conversion have to be satisfied to achieve successful knowledge

conversion within and across the organization (Nonaka & Takeuchi, 1995).

I chose the Nonaka and Takeuchi organizational framework as the foundation for

this study because the framework of knowledge creation and transfer aligned with my

study by addressing the need for continuous social interaction of knowledge. Knowledge

management, knowledge sharing, and knowledge transfer are important resolutions to the

business problem as methods for increasing the competitive advantage and organization

sustainability. Organizational leaders should establish strategies for effective knowledge

management practices (M. Kim, Song, & Triche, 2015). By using knowledge

management systems, leaders and employees can collaborate and share knowledge to

promote the overall success of the organization (Z. Wang, Wang, & Liang, 2014). The

Nonaka and Takeuchi framework provided a way of understanding knowledge

management and how mid-level managers understand knowledge management at each

stage. The framework allows tacit knowledge to be captured through socialization (tacit

to tacit), and in some cases employees’ knowledge can be converted from tacit to explicit

knowledge through externalization (Nonaka & Takeuchi, 1995). Nonaka and Takeuchi’s

(1995) framework aligned with my research question because it depicted the relationship

among the constructs of the role of the manager, tacit knowledge, and explicit knowledge

in the knowledge conversion process. Nonaka and Takeuchi’s framework has been shown

to bridge the gap between different levels of management. The best management style is

neither bottom-up nor top-down, but middle-up-down where middle managers bridge the

gap between top and bottom levels (Capello, 2013).

Nature of the Study

I used qualitative methodology. Qualitative methodology is appropriate to use

when the researcher seeks to understand a phenomenon (Mukhopadhyay & Gupta, 2014).

According to Mariotto, Pinto-Zanni, & De Moraes (2014), qualitative research provides

rich data and a detailed picture a researcher can use to explain why individuals act in a

certain way and how they feel about these actions. Qualitative methodology was

appropriate for my study because I aimed to understand the merger-related knowledge

management resources used by mid-level managers to improve knowledge sharing at

recently merged, medium-size information technology firms in California.

I used a phenomenological descriptive design, also known as the transcendental or

classical approach. According to Giorgi (2012), the transcendental phenomenological

design is used to obtain in-depth descriptions of a phenomenon through interviews of

several individuals who have experienced the phenomenon. A phenomenological design

allows the researcher to focus on people’s experience regarding a situation or how these

individuals interpret such experiences (Englander, 2016). The purpose of

phenomenological research is to use perception or memory (Sokolowski, 2000) as a

primary source of information to examine the ways in which people experience and

understand the world when facing different phenomena (Moustakas, 1994). The collected

data in a phenomenological study are used to gain a comprehensive account of the

phenomenon. All these features made the phenomenological design appropriate for my

study.

The targeted population for my research was mid-level managers who managed

employees during a merger and who were over 18 years of age. The geographic location

of my participants was California in United States. The sample size of 12 allowed me to

reach data saturation in the study. The study was conducted by critical processes of

bracketing, epoché, phenomenological reduction, and synthesis (see Giorgi, 2012). The

phone interviews were audio-recorded, and validation of interview responses occurred

through transcript verification. After all interview data transcription, the interview

transcripts were exported to NVivo software for analysis. I used the Hycner’s (1985)

phenomenological data analysis process. The Hycner data analysis process includes: (a)

bracketing and phenomenological reduction, (b) delineating units of meaning, (c)

clustering of units of meaning to form themes, (d) summarizing each interview and

validating and modifying it where necessary, and (e) extracting general and unique

themes from all the interviews and making a composite summary.

Definitions

To facilitate understanding of the study, I defined the merger, knowledge

management, and assets terms as follows:

Acquisitions: An organization legally and financially obtaining another

organization (Rau & Stouraitis, 2011).

Explicit knowledge: Formal knowledge that is written down and documented

(McAdam et al., 2007). Explicit knowledge is knowledge that is easy to share from

person to person (Li & Edwards, 2014; Nonaka & Takeuchi, 1995).

Integration: The interactive process in which employees from companies involved in a

merger learn to work together to handover each company’s plans (Alaranta

& Parvinen, 2004).

Knowledge assets: “Anything valued without physical dimensions that is

embedded in people or derived from processes, systems and the culture associated with

an organization” (Bukowitz, Williams, & Mactas, 2004, p. 2).

Knowledge creation: “Interaction between explicit knowledge and tacit

knowledge” (Nonaka, Toyama, & Konno, 2000, p. 16).

Knowledge management: An organizational practice that makes better use of what

people in the organization know (Spender, 2008). The process through which knowledge

is captured, developed, shared, and used within an organization.

Knowledge sharing: The trading of tacit and explicit knowledge between

individuals to gain a better perspective on processes, procedures, and products whereby

individuals can generate new knowledge (Peralta & Saldanha, 2014)

Knowledge transfer: The process by which explicit or tacit knowledge possessed

by one person is shared with another individual where the knowledge is internalized or

indwelled (Burnett, Williams, & Grinnall, 2013).

Leadership: A role within an organization that has traits, characteristics, and

behaviors to help others focus on a clear vision and collaborate (Avolio, Gardner,

Walumbwa, Luthans, & May, 2004).

Merger: Two or more companies combining (Aktas, De Bodt, & Roll, 2013).

Organizational culture: The set of underlying beliefs, which are rarely articulated

directly, but which influence employees’ perceptions of communications and actions

(Armstrong, 2009).

Phenomenology: An approach that focuses on human experiences provided by

participants in the research study (Groenewald, 2004). The central goal of this approach

is to define the meaning of the subjects’ lived experiences (Groenewald, 2004).

Tacit knowledge: Knowledge that is hard to share because it derives directly from

individuals’ experiences (Li & Edwards, 2014). Tacit knowledge is informal and resides

in the minds of individuals as paradigms, mental modes, know-how, and personal

experience (McAdam et al., 2007).

Assumptions

Assumptions are thoughts, concepts, and ideas taken to be true but can not be

proved, and are beyond the control of the researcher (Gallop, 2011). Assumptions are a

way to decrease bias and identify any prior actions that may have an influence on the

research (Marshall & Rossman, 2014). Researchers use assumptions to shape the research

endeavor, from the methodology employed to the type of questions asked (Hathaway,

1995). I made five assumptions for this study. The first assumption was that there would

be access to mid-level managers who have experienced the same or similar phenomenon

of the study. The second assumption was that each interviewee would agree to be a

central part of this study and would engage and answer the interview questions truthfully

and candidly. The third assumption was that the interviews would offer an opportunity to

explore common themes involving knowledge management assets during a merger. The

fourth assumption was that the participants would have a sincere interest in participating

and would provide rich, detailed experiences of the phenomenon. The final assumption

was that the literature review would provide accurate information to identify the gap in

the literature for this qualitative study.

Scope and Delimitations

The scope of a study addresses the parameters of the exploration. The scope of the

current study was the lived experiences of mid-level managers in California during a

merger. The scope included managers in organizations that had already gone through the

merger process. There had been an increase in merger activities in the years prior to the

study, so there were multiple organizations from which to recruit participants.

The delimitations define the boundaries for the scope of a study (Suri, 2011). In

this study, I focused on a participant sample of 15 mid-level managers above the age of

18 in California who had participated in a merger. The reason for selecting mid-level

managers was because of their comprehensive knowledge and experience with M&As.

When recruiting participants for this study, I did not consider demographic characteristics

such as ethnic background, religious affiliation, financial status, and sexual orientation

because these data would not have added value to the results. This research was also

delimited by my choice of research design, research question, and interview questions.

The delimitations allowed me to explore the research question thoroughly and obtain a

rich description of the lived experiences of mid-level managers who had been through a

merger. Because the phenomenological tradition demands that the researcher suspend or

bracket they assumptions and biases so that the informants may drive the research (M.

Miles, Huberman, & Saldana, 2014), the study’s results were confirmed by using

transcript verification.

Limitations

Limitations of a study show probable weaknesses and an understanding of where

the results of the study may not be relevant (Anosike, Ehrich, & Ahmed, 2012). In

qualitative research, issues of credibility (Fusch & Ness, 2015) and dependability

(Houghton, Casey, Shaw, & Murphy, 2013) are considered limitations. Credibility refers

to the actual and factual responses of participants, while dependability refers to the

accuracy of transcribed responses from the participants. This study was subject to several

limitations relating to the research design and the resources needed for this study. The

first limitation was that the participants might have provided a biased view rather than an

objective description of the phenomenon. To address this limitation, I informed the

participants about the aims of the research and that there were no right or wrong answers

to the interview questions. The second limitation was researcher bias. I had experience

with mergers in the Silicon Valley, but I planned to maintain an open mind and not let my

personal experience get in the way of the data collected.

Significance of the Study

The outcome of this study may be beneficial to management practitioners because

this research may contribute to the understanding of knowledge management assets

available to managers to ensure the success of managing employees through a merger.

This study may be significant because it may provide additional knowledge to managers,

business leaders, and employees of companies that are planning a merger. The findings

from this study may lend important information to civic groups and increase employee

retention through a merger process. The factors leading to positive outcomes may serve

as a guide for business managers and organizations seeking to promote good merger and

acquisition practices, thereby facilitating successful knowledge management

implementation.

Significance to Theory

The purpose of this qualitative descriptive phenomenological study was to

understand the merger-related knowledge management assets used by mid-level

managers in the retention of employees at recently merged medium-size information

technology firms in California from 2014 to 2019. The findings from the study may also

motivate mid-level managers to use the conceptual foundation to utilize the knowledge

management assets available to them during mergers. This study may benefit firms that

tend to expand in new markets or areas that have a greater potential of providing the

returns on investments (see Nayak, Acharya, & Mohanty, 2016). This study may also

illustrate the effectiveness of incorporating the Nonaka and Takeuchi conceptual

framework into organizational policies to improve mergers.

Significance to Practice

This research may contribute to business practice and business knowledge. The

results of this study may lead to updated training for mid-level managers to integrate the

knowledge management asset aspect of the merger process. This qualitative

phenomenological descriptive study may contribute to business practice and business

knowledge by helping managers enhance business performance through revenues and a

sustainable business environment (see Panda, Karve, & Mohapatra, 2014). Knowledge

intensive managers in businesses seeking to implement knowledge management may use

the findings, conclusions, and recommendations from this study to provide a knowledge

infrastructure to help retain, transfer, and capture critical knowledge of employees before

they retire (Joe, Yoong, & Patel, 2013). The study findings may also add to the body of

knowledge related to knowledge management and fill gaps about the importance of

knowledge management assets to an organization and the influence that implementation

has on business. Organizations may experience increases in social capital, innovation, and

creativity as well as improvements in the workplace (see Liu, 2013). This study may also

be useful for managers to become more effective in managing a diverse workforce and

addressing employees’ needs. The findings may be significant for leaders, managers, and

employees of firms that are planning to merge or are in the process of merging. Business

leaders may benefit from this study by improved competitive advantage, increased

innovation, improved organizational performance, reduced duplication of effort,

increased automation of business processes, and increased returns from financial

investment (see Massingham, 2014).

Significance to Social Change

Organizations that accept, use, and adopt a successful knowledge management

program may generate an organizational culture of knowledge sharing and knowledge

capturing (see Z. Zhang, Lee, Huang, & Huang, 2005). The results of this study may offer

a significant contribution to positive social change on an individual, community, and

practitioner level. Merger failures have multiple negative consequences that affect the

stakeholders, managers, and employees (Angwin & Meadows, 2015). Understanding the

knowledge management assets available to mid-level managers may increase the

awareness of management by providing strategies for successfully managing employees

during a merger. Employees’ retention may assist with greater organizational stability by

increasing job satisfaction and decreasing employee turnover. Employees who feel their

needs are met may be loyal to the management and contribute to the success of the

merger. Satisfied employees may contribute to the success of the organization by

ensuring customers are satisfied and return for future service. Understanding the

knowledge management assets available to managers during a merger may increase the

knowledge in the field of leadership.

Summary and Transition

In Chapter 1 I introduced the study, outlined its background, stated the research

problem, and explained the nature and significance of the study and its conceptual

framework. The research question was presented with the problem statement and purpose

statement. Definitions were provided for key terms, assumptions were explained to justify

why the expected outcome of the study was possible, and limitations were presented to

explain why the sample was selected.

Chapter 2 presents a detailed review of relevant literature. I draw on key concepts

of knowledge management, with particular attention on the knowledge creation model of

Nonaka and Takeuchi. I review literature and publications relevant to management,

organizational culture, information technology infrastructure, knowledge management,

employee involvement, teamwork, and employee empowerment to broaden the

understanding of knowledge management of a merger. I also review the history of merger

waves in the United States.

Chapter 2: Literature Review

The merger and acquisition failure rate among all companies is high at over 70%

(Steynberg & Veldsman, 2011). In the United States, 87% of mergers fall below

expectations or fail (Nalbantian, Guzzo, Kieffer, & Doherty, 2005). One of the major

contributing factors to merger failure is the loss of valuable tacit knowledge, and midlevel

managers do not have enough strategies for knowledge management (Michels et al.,

2012). The purpose of this qualitative descriptive phenomenological study was to

understand the merger-related knowledge management assets used by mid-level

managers in the retention of employees at recently merged medium-size information

technology firms in California from 2014 to 2019. I examined the strategies, patterns, and

themes that emerged from the lived experiences of mid-level managers who led merger

transactions in California. The conceptual framework for this study was the Nonaka and

Takeuchi (1995) organizational knowledge creation and transfer. The framework offers

four modes of knowledge conversion: socialization, externalization, collaboration, and

internalization (Nonaka & Takeuchi, 1995).

In Chapter 2 I present the literature search strategy and the conceptual framework

on which this study was based. I examine existing literature to highlight the historical

perspective of mergers, knowledge management assets, organizational culture,

information technology, and employee retention in California. Chapter 2 contains the

literature review and the inferences for the framework originated from secondary sources,

which included books, peer-reviewed journals, articles and relevant studies. According to

Hart (1989), a researcher should know the work and contributions others have made to

the knowledge pool relevant to their topic. Chapter 2 concludes with a summary and a

transition to Chapter 3.

Literature Search Strategy

The literature that I reviewed for this qualitative research was from Google

Scholar, peer-reviewed journal articles, Sage, EBSCO Host, and ProQuest. To gain a

historical context, the key search terms used were mergers, merger history, merger

failure, merger success, employee mergers, mid-level managers, employee retention,

effective leadership, integration, leadership, knowledge management, knowledge assets,

explicit knowledge, knowledge conversion, knowledge creation, knowledge dynamics,

knowledge sharing, tacit knowledge, organizational knowledge, workplace learning,

organizational knowledge and mergers, and new knowledge creation. Peer-reviewed

journals published within the last 5 years provided the literature for my review. Other

journals that were significant to the study guided me in understanding the historical

failure of mergers. These key search terms were also combined to determine whether

more relevant results could be identified. The keywords were searched to ensure

saturation of information.

Conceptual Framework

The conceptual framework for this study was the Nonaka and Takeuchi (1995)

organizational knowledge creation framework. Nonaka and Takeuchi in their study of

Japanese companies identified four processes of knowledge creation that produce success

in a collaborative setting: socialization, externalization, internalization and combination

(Nonaka & Takeuchi, 1995). Nonaka and Takeuchi defined knowledge as “the set of

justified beliefs that enhance an entity’s capability for effective action” (p. 51).

Knowledge is regarded as the core competency of an organization to grow and compete

with their rivals (Ceptureanu, 2016). Love, Roper, and Zhou (2016) defined knowledge as

the experience obtained from performance that allows individuals to describe, arrange,

shape, and learn to solve a problem or improve a situation. Knowledge creation begins

with the individual (Scott, 1998). Making individual knowledge available to others within

the organization is the quintessence of the knowledge-based model (S. Ceptureanu,

Ceptureanu, Olaru, & Popescu, 2018). The development of organizational knowledge

represents a process by which the knowledge created by individuals is widely

disseminated at the organizational level and incorporated in the network of knowledge of

the organization (Ceptureanu, 2015. Nonaka and Takeuchi’s knowledge management

model is premised on three assumptions:

•Knowledge that is created at an individual level is the result of constant

dialogue between explicit and tacit knowledge.

•There are four basic processes of knowledge conversion: socialization,

externalization, combination, and internalization.

•Within an organizational setting, knowledge creation is based on a spiral

diving force and can be created from these four processes.

The Nonaka and Takeuchi framework aligned with my research question because

knowledge is continuously converted and created as users practice, reflect, and learn.

Nonaka and Takeuchi (1995) considered two dimensions in the process of knowledge

creation in organizations: the ontological knowledge creation dimension and

epistemological knowledge creation dimension. The ontological dimension is the

conversion of knowledge from individual knowledge into group knowledge and the

transformation of the group knowledge into organizational knowledge (Bratianu, 2014).

The epistemological dimension is the conversion of knowledge from tacit knowledge into

explicit knowledge and from explicit knowledge into tacit knowledge (Bratianu, 2014).

With the combination of these two dimensions, Nonaka and Takeuchi developed a spiral

model for knowledge creation and transfer. Figure 2 shows how different dimensions of

Nonaka and Takeuch’s knowledge conversion model can move between different

domains. The Nonaka and Takeuchi model of organizational knowledge creation and

transfer aligned with my research question because it identified four ways of conversion

of individual knowledge, which represent the essence of the process of generating

organizational knowledge.

Figure 2. A diagram showing the knowledge conversion in Nonaka and Takeuchi’s

model. Source: Nonaka & Takeuchi, 1995, p.19. Reprinted with permission.

Socialization

Socialization requires the sharing of experiences and the creation of tacit

knowledge in the form of technical skills or knowledge structures that enable the

formation of accurate explanations, the coordination of actions, and the adaptation of

behavior (Cannon-Bowers, Salas, & Converse, 1993). The term socialization means that

tacit knowledge is exchanged through joint activities and generated by direct experience

such as observing, imitation, practice, experience, brainstorming, and collective sharing

of ideas in a formal and informal setting, team interaction mentoring, collaboration, and

in the same environment rather than through written or verbal instructions (Nonaka &

Takeuchi, 1995). Socialization not only brings new employees into an organization’s

culture, but also continues throughout their career (Matteson & Ivancevich, 1990).

Socialization begins with building a space of social interaction so that the practiced skills

become part of the existing knowledge with the organization.

Externalization

Externalization is the process of transforming tacit knowledge into explicit

knowledge (Nonaka & Takeuchi, 1995). In externalization, formal knowledge is

maintained in manuals, audio files, and documents. Externalization is the creation of new

concepts, ideas, and common goals through publishing and articulating knowledge

(Cannatelli, Smith, Giudici, Jones, & Conger, 2017). Externalization, which is typically

seen in concept creation, is triggered by dialogue and collective reflection. In

externalization, conversation management is an important knowledge enabler; not only

does it influence the sharing of tacit knowledge, it also influences every phase of the

knowledge creation process (Von Krogh, Ichijo, & Nonaka, 2000).

Combination

Combination involves the conversion of explicit knowledge to explicit knowledge

through organizing and integrating knowledge and the creative use of computerized

communications and large-scale databases (Bratianu, 2014). In practice, combination

relies on three processes. First, explicit knowledge is collected from inside or outside the

organization and then combined. Second, the new explicit knowledge is disseminated

among the organizational members. Third, explicit knowledge is edited or processed in

the organization to make it more usable (Nonaka & Toyama, 2015). Such knowledge can

be obtained from outside or inside the organization and then combined and edited to

create new knowledge (Nonaka, 1998).

Internalization

Internalization is the process of embodying explicit knowledge as tacit knowledge

(Nonaka, 1998). Through internalization, the created explicit knowledge is shared

throughout an organization, and this refers to the process of receiving knowledge and

reflecting on one’s ability (Chugh & Joshi, 2016). The accumulation of tacit knowledge

at the individual level can then set off a new spiral of knowledge creation when it is

shared with others through socialization. The internalization process denotes learning by

doing (Akbar, 2003; Nonaka et al., 2001) despite criticisms that this assumes an

unproblematic process of absorbing the existing knowledge and neglects the nature of the

learner of their relations unexplored (Newell, 1999). The internalization of knowledge is

continuously enhanced using formal knowledge (explicit) in real life.

Nonaka and Takeuchi’s model enabled organizations to work with their

knowledge structure and improve their competitive edge through innovation strategies

and product designs, lower cost, and better quality (Sarayreh, Mardawi, & Dmour, 2012).

Nonaka and Takeuchi’s model enhances the ability of management to make the most out

of the knowledge structure in their organization to make improvements. Some of the

benefits of the model include better knowledge creation, improvement in cost structures,

employee retention, workforce management, and business sustainability (Nonaka et al,

2014). Unlike other complex models, Nonaka and Takeuchi’s model provides a coherent

combination of effective modes of knowledge creation (Nejatian, Zarei, & Soltani, 2013).

Criticism of Nonaka and Takeuchi’s Model:–Knowledge Conversion Research

Nonaka and Takeuchi’s (1995) model enhances the utility of management to make

the most out of the knowledge structure in their organization and make various kinds of

improvements. Nonaka and Takeuchi’s model are clear and rigorous, allowing

management to identify and remove anomalies in the business structure. Although several

theorists argued that managers play an active role in the conversion of tacit to explicit

process (Nonaka & Takeuchi, 1995), little empirical research has addressed managerial

roles in this process. Polanyi (1966) coined the types of organizational knowledge as tacit

and explicit. Polanyi’s work laid the foundation for the social collaborative aspects and

the codification classification aspects of the knowledge conversion process.

A review of current literature about the conversion of tacit knowledge to explicit

knowledge indicated that the role of the manager in this process had been overlooked.

The manager must implement the organization’s knowledge management strategy in a

merger, the manager makes choices regarding which knowledge to convert and transfer,

and the manager must convince individual workers that certain knowledge has value

beyond that which is exchanged between two employees (Nonaka & Takeuchi, 1995).

Nonaka and Takeuchi’s (1995) model aligned with my research question because it

depicts the relationship among the constructs of the role of the manager, tacit knowledge,

and explicit knowledge in the knowledge conversion process. Both the framework and

research question dealt with middle managers as a bridge between the visionary ideas of

the top and the reality of those on the front line of business. Middle managers mediate

between the “what should be” mindset of the top and the “what is” mindset of the

frontline employees by creating mid-level business and product concepts (Nonaka &

Takeuchi, 1995).

Knowledge Management Authors

As organizations confront increasingly more complex global competition and mergers,

they must be able to assess their respective environments and change to meet the

demands of those environments. In the battle between tacit and explicit knowledge, where

theorists most often align themselves in one of the two camps, the most successful

approach to knowledge valuation may be to acknowledge that organizational knowledge

can be tacit or explicit, or both at the same time.

As the field of knowledge conversion began to take shape, several organizational

theorists published works that provided a framework in which to study the field. Michael

Polanyi (1966) coined the types of organizational knowledge as tacit and explicit.

According to Polanyi (1966), tacit knowledge resides in the minds of individual

employees and communities of practice. Polanyi (1966) noted that tacit knowledge has

many intangible aspects; it is hard to define, communicate, or codify. Tacit knowledge

conversion depends upon the ability of highly trained staff to demonstrate the knowledge

to new employees. On the opposite end of the spectrum is explicit knowledge. Explicit

knowledge is a more traditional, formalized knowledge codified in manuals, procedure

and process documents, and written reports (Nelson & Winter, 1982; Polanyi, 1966;

Winter & Zolio, 2001). Explicit knowledge is easily portable in that it can be transferred readily from

one place to the next, from one person to the next. Polanyi’s (1966) study lays the foundation for both

the social, collaborative aspects and the codification, classification aspects of the knowledge conversion

process. Although Polanyi’s (1966) research uses an individual level of analysis, most organizational

theorists assume that his concepts hold true at the organizational level as well. Empirical evidence to

support Polanyi’s position is limited. In the Nonaka and Takeuchi’s (1995) model as noted previously,

employees within the organization transform tacit knowledge into explicit knowledge through this

dynamic process. The larger question for Nonaka and Takeuchi is not whether knowledge is tacit or

explicit (because in their view it can be both) but how the knowledge is to be used within the

organization.

Spender (1995) built on the concept of tacit and explicit knowledge by

establishing a relationship between individual and social knowledge. In his study, social

knowledge is organizational knowledge. Each knowledge type can be further divided as

either conscious knowledge or automatic knowledge. Spender (1995) asserted that

organizational knowledge has a cultural dimension in that social knowledge is heavily

influenced by the shared values, beliefs, and assumptions of the organization. Taylor and

Van Every (2000) contribute to the knowledge management literature by asserting that

organizational knowledge is created through the structuring of language and action. In

their study, tacit and explicit knowledge became conversation and text. The space that

exists between these two constructs is where organization emerges. The dialectic nature

of conversation and text are mutually reinforcing. From the perspective of the study, the

conversion process of tacit to explicit knowledge involves codification. Only through

codification can tacit knowledge become explicit (Nonaka & Takeuchi, 1995). In this

way, the codification process is seen primarily as language. In current literature,

knowledge management with emphasis on knowledge conversion, transfer, and creation

has been studied as a phenomenon (Brown & Duguid, 2000; Connor & Prahalad, 1996;

Nonaka & Takeuchi, 1995; Spender & Robert, 1996) and as a means to innovation and

competitive advantage (Moreland, Argote, & Krishnan, 1996). Most theorists agree that

information and data are the antecedents to knowledge, whether the knowledge is tacit or

explicit. Tacit knowledge as a construct is derived from literature on knowledge typology

(Kogut & Zander, 1992, 1996; Lyles & Schwenk, 1992; Polanyi, 1996; Sackmann, 1992)

and in communities of practice (Barley, 1986; Brown & Duguid, 2000; Lave, 1998; Lave

& Wenger, 1991).

Literature Review

In current literature, knowledge management with emphasis on knowledge

conversion, transfer, and creation has been studied as a phenomenon (Brown & Duguid,

2000; Nonaka & Takeuchi, 1995; Spender & Robert, 1996) and as a means to innovation

and competitive advantage (Stewart, 1997). Most theorists agree that information and

data are the antecedents to knowledge, whether the knowledge is tacit or explicit. Tacit

knowledge as a construct is derived from literature on knowledge typology (Kogut &

Zander, 1996; Polanyi, 1996; Sackmann, 1992) and in communities of practice (Lave &

Wenger, 1991). The review of literature encompasses a systematic review of the content

and quality of knowledge already available and presents the reader the significance of

previous work of published and unpublished studies relating to a subject area (Ramsaroop

& Ramdhani, 2014).

Mergers

M & A is commonly used as a strategic tool to access new knowledge (Barney,

1991). Knowledge management in M&As involves not only the exchange of information,

but also substantial organizational learning process (Geppert & Clark, 2003). To

understand the concept of mergers and acquisitions, this section will expand on the

history of mergers. Mergers allow two corporations to integrate and share resources,

resulting in a larger corporation with a greater opportunity to expand their business. A

merger is defined as the act of two organizations combining to form one organization

(Jewoo & Tianshu, 2014). According to DePamphilis, (2011), a merger is defined as a

combination of tow corporations in which only one corporation survives, and the merged

corporation goes out of existence. Vazirani (2015), defines a merger as a circumstance

where a company, including all assets, liabilities, and people merge with another

company. A merger leads to the combination of two or more corporations in which all,

but one legally ceases to exist can have both positive and negative.

Historical Development of Mergers

Mergers and acquisitions are a combination consummated with a framework for

integration significant resources, operations, and technology (Lajoux, 2006). Mergers and

acquisitions are transactions that combine and possibly integrate two organizations.

Business managers use mergers and acquisitions to improve operational efficiency and

performance, access foreign market, expand, increase revenue growth, and obtain new

technology (Nalbantian, Guzzo, Kieffer, & Doherty, 2005).

Gaughan (1998) indicated that there are five dominant merger waves which

characterized the history of mergers. Merger waves have many effects on the

organizational outcomes, and it is important to understand the changes managers and

employees go through that allow the corporation to grow within the current market,

expand into another market, or do both. “These periods were characterized by cyclic

activity, that is, high levels of mergers followed by periods of relatively fewer mergers”

(Gaughan, 2010, p 29). In addition, Gaughan (1998) described how the European Union’s

economy and industry have been dramatically influenced by the prominent merger waves

of the United States. Gaughan (2002) described the five waves as instrumental, “They

were instrumental in transforming U.S. industry from a collection of small and

mediumsized businesses to the current state” (p. 29). These waves were influenced by

economic, technological, financial and legislative factors. In particular, it has been shown

that each merger wave is positively correlated to economic prosperity. The first merger

wave consisted of horizontal combinations, whereas mergers in the second wave were

mostly of a vertically integrated nature (Gaughan, 2010). The third merger wave was the

“conglomerate era”. Hostile takeovers, junk bond market, debt financing, and the

leverage buyout (LBO) were the main characteristics of the fourth merger wave. The fifth

merger wave focused on long-term strategy rather than short-term financial gains and the

transactions were financed by equity rather than debt. As Gaughan (1998) described in

Table 1 below, the first four waves occurred between 1897 and 1904, 1916 and 1929,

1965 and 1969, and 1984 and 1989. Merger activity declined at the end of the 1980s but

resumed again in the early 1990’s to begin the fifth merger wave (Gaughan, 2010, p29).

Capron (1996), noted that each wave of M&A has its own economic efficiency and

legitimacy that affect the U.S. economy. The five waves brought general macroeconomic

and micro-economic patterns to not only the U.S. economy, but also the world economy

(Capron, 1996. P.1).

Table 1

Dominant Mergers and Acquisitions Waves

1st Wave 1897–1904 Horizontal Mergers

2nd Wave 1916–1929 Oligopolies and Consolidations

3rd Wave

4th Wave

5th Wave

1965-1969

1984–1989

1992-Present

Conglomerates

Mega-mergers and Hostile

Takeovers

Consolidations

First Merger Wave, 1897–1904

The first U.S. merger wave occurred between 1897 and 1904 (Gaughan, 2010).

This merger wave was started during the economic expansion after the depression

(Vazirani, 2015). During the first merger wave, over 300 industrial combinations were

formed and involved about half of the country’s manufacturing capacity (Moody, 1904).

The emergence of the first merger wave is associated with the recovery of economic

growth that occurred in the period between 1892 and 1902, as well as with the

development of economic infrastructure (Gaughan, 2010). The first merger wave is

defined as a Horizontal Merger and played a pivotal role in creating large monopolistic

market structures in the United States economy (Gaughan, 2010). In various industries,

such as oil and steel, several domestic monopolies, most notably standard Oil and U.S.

Steel, contributed billions of dollars to improve the U.S. economy (Vazirani, 2015).

Becketti (1986) noted that this first set of mergers contributed to changes in the laws and

regulations regarding mergers. According to Capron (1999), to avoid head-to-head price

competition between organizations, companies brought a new perspective to mergers and

acquisitions by negotiating new alliances. Faulker, Teerikangas, and Joseph (2014), noted

the lack of regulation during the first wave and one of the factors that facelifted the

“merging for monopoly”. Firms did not face legal constraints in acquiring other

companies. For instance, United States Steel accounted for 75% of the U.S. steel

industry’s market share, American Tobacco held a 90% market share, while Standard Oil

accounted for 80% of its market (Gaughan, 2002). The first set of mergers allowed for

corporations to gain power, creating the need for regulations to be put in place to prevent

a monopoly. The horizontal integration of leading producers in the same industry created

a number of lasting dominant firms that still survive in the present, such as Du Pont, U.S.

Rubber, U.S. Steel, General Electric, Coca Cola, and National Biscuit.

Second Merger Wave, 1916–1929

The second wave of M&A occurred between 1916 and 1929. Gaughan (2010)

defined the second wave as merging for oligopoly and consolidation. While the second

wave was structures as an oligopolistic industry, several industries consolidated.

“Between 1926 and 1930, a total of 4,600 mergers took place, and from 1919 to 1930,

12,000 manufacturing, mining, public utility, and banking firm dissolved” (Gaughan,

2002, p. 30). Compared to the first wave, the antitrust environment was markedly more

challenging and controversial. Congress decided to take further action and passes the

Clayton Act in 1914, “a law that reinforced the anti-monopoly provisions of the Sherman

Act” (Gaughan, 2002, p.36). The Clayton Act preserved the competitive markets and

deterred unethical mergers and acquisitions. At this wave period, many companies in

unrelated industries merged and this period became the first indication of the formation of

conglomerates.

In 1929, the stock market crash and the Great Depression resulted in the end of the

second wave mergers (Lipton, 2006). As the Great Depression took hold in the U.S., the

second wave mergers were completely devastated so corporate mergers and acquisitions

declined significantly. The industries, corporations and companies were no longer

interested in expanding their businesses, preferring to focus simply on surviving the

depression (Faulker et al., 2014). The third merger wave emerged approximately 30 years

after the decline of the second (Faulker et. al., 2014). There was substantiated evidence

that post-depression, there were virtually no mergers and acquisitions. That led to

dramatic development of major technological changes in the United States. In 1950,

congress passed the Celler-Kefauver Act to enhanced safety and credibility of mergers

and acquisitions (Faulker et al., 2014).

Third Merger Wave, 1965–1969

The third wave began in 1965 and ended in 1969, this wave was historically the

highest level of merger activity (Gaughan, 2010: Tanimura & Wehrly, 2012). (Gaughan,

2010). “In contrast to the first two waves, which were restricted to the United States, the

third merger and acquisition wave took place not only in the United States, but also in the

United Kingdom and Continental Europe” (Faulker, et. al., 2014, p.22). Unlike the first

(horizontal) and second (vertical) merger waves, the third merger wave was characterized

by the formation of conglomerate merger. A conglomerate merger occurs when firms in

unrelated industries merge (Aytac & Kaya, 2016). According to the Federal Trade

Commission report of 1977, 80% of mergers in the third merger wave were of a

conglomerate nature. During this period, healthy companies and corporations aimed to

acquire smaller companies. Most of the M&A occurred when companies and corporations

were neither competitors, nor had a buyer-seller relationship within their industries

Gaughan (2002). According to Faulker et al. (2014), 80% of mergers and acquisitions

occurred in the third wave period. The authors noted that the intent of the larger

companies was to acquire as many smaller, non-competing companies as they could. The

first goal of the conglomerate mergers was to enhance both the takeover company’s profit

and reputation (Gaughan, 2002). During the conglomerate merger waves, firms

continually sought to expand, while antitrust regulations from the CellerKefauver Act of

1950 were employed to strengthen those put in place by the Clayton Act of 1914

(Capron,1999). With this reliance on the government, companies became more

enthusiastic regarding selling and buying to enhance their profitability. In 1968, Litton

Industries announced a decrease in earnings, and as a result the market saw a decline of

the third merger wave. This unusual phenomenon impacted the United States markets,

directly influencing conglomerates to the degree that the percentage of conglomerates

declined dramatically (Capron,1999). In 1968, the market eventually began to see through

these financial manipulations and the Attorney General announced plans to crack down

on conglomerates (Capron,1999). As a result, over the years, conglomerates mergers

declined in popularity in terms of companies aims to enhance their profitability.

Fourth Merger Wave, 1984–1989

The fourth wave occurred from 1984 to 1989 (Gaughan, 2010). In this wave,

changes in markets, technology, deregulation of airlines, trucking, telecommunications

and banking, as well as financial innovation brought sudden and dramatic change to many

industries. This merger wave is distinguished from the previous three waves by the size

and prominence of the merger targets. By the end of the fourth wave, the average USD

value of M&A activity increased by five times. The average USD value had risen from

USD 22.8 billion in the third wave to USD 146.2 billion in this wave (Megastat Review,

2002). According to Gaughan (2002), the statistics indicate that the acceleration of

mergers and acquisitions declined in 1982 for one year, then reversed direction again in

1983. In 1984, the first remarkable mergers and acquisitions occurred and brought new

perspective to the economy in terms of future credibility of M&As. A rise in hostile

takeover activities also made this fourth merger wave distinct from the other waves.

Gaughan (2002), explains friendly and hostile takeovers as “corporations and speculative

partnerships played the takeover game as a means of enjoying very high profits in a short

time” (p.72). In addition to hostile takeover, this wave period was noted for “junk bond”

financing and the steadily increased volume and size of leverage buyouts (LBOs)

(Capron, 1996). At this point, some of the United States largest corporations were

determined to be potential profitable targets and many of the M&As were successfully

transacted. This led to an economic expansion of hundreds of millions of U.S. dollars

(Gaughan, 2002). The fourth merger wave ended in the late 1980s as the junk bond

market collapsed, along with the introduction of Financial Institutions Reform, the

Recovery and Enforcement Act (1989), and the loan portfolio and capital problems of the

commercial banks.

Fifth Merger Wave, 1992–Present

The fifth wave occurred from 1992 to present. Beginning in 1992, the percentage

of mergers and acquisitions increased exponentially (Gaughan, 2002). The leading

industries in the fifth wave M&A activity were banking, telecommunications, oil and gas,

radio and TV stations with increasing ties developing between telecommunications and

radio and TV (Mergerstat Review, 1994). The increasing economic globalization,

combined with the technological revolution in the early 1990s, triggered the reawakening

of mergers and acquisitions. (Faulker et al., 2014). Important factors such as globalization

of competition, deregulation of financial institutions and telecommunications,

privatization of state-run enterprises on all continents, new technologies, favorable public

policy environment, and financial market conditions contributed to the fifth wave. It was

an indication of the “global wave involving intense acquisition activity in the United

States, Europe, and Asia” (Faulker et al., 2014, p. 25). A merger increased an

organization’s ability to compete in foreign markets by providing rapid access to an

established distribution system, knowledge of local markets, economies of scale, and

complementary products. This provided tremendous opportunities for domestic

companies to have an advantage with their competitors in the international market.

Gaughan (2010) stated that the mistakes from the 1980s would not be repeated in the

exponentially increasing the global economy. In this wave, M&As are based on longterm

strategic and economic motives rather than focusing on quick financial gains. Gaughan

(2010), noted that companies focused on more strategic deals resulting in winwin

outcomes for buyers and sellers. Faulker et al. (2014) explain the meaning of strategic

deals as “in contrast to 1980s merger and acquisition wave, acquirers relied primarily on

stock to complete transactions were entirely financed with stock” (p.25). Faulker et al.

(2014) argued that several companies had chosen to go with hostile acquisitions, which

had a negative effect on the increasing fifth merger wave in the global economy.

Knowledge Assets

Knowledge assets result from knowledge-creating processes that occur during

discussions and practices in workplaces. In today’s, fast-paced global economy,

corporations are undergoing mergers and acquisitions to move into new markets, gain

knowledge/intellectual property, and create synergies. M&A is commonly used as a

strategic tool to access new knowledge (Barney, 1991). The most common driver for

M&A is often the objective for gaining new knowledge from the acquired company

(Bresman, Birkinshaw, and Nobel, 1999). According to Grover and Davenport (2001), knowledge is

viewed as an asset in its own right and not only as an enhancement of other kinds of assets. Knowledge

assets or intellectual assets are economic assets in their own right. Knowledge assets are defined as

anything valued without physical dimensions that is embedded in people or derived from processes,

systems and the culture associated with an organization (Bukowitz & Williams, 1999). Knowledge

assets are stocks of knowledge that allow the organization and the provision of services for an unspecific

period (Boisot, 1998). Nonaka et al. (2000) define knowledge assets as firm-specific resources that are

indispensable to creating value for the firm. Nonaka places knowledge assets at the base of knowledge

creation process, explaining that they are the processes’ inputs, outputs and moderating factors (Nonaka

et al., 2000). They are often invisible, tacit and dynamic and this makes the capturing of their value

difficult, similarly to the economic perspective (Nonaka et al., 2000; Teece, 2000). Since knowledge

assets cannot always be readily bought or sold, they shape a firm’s competitive advantage (Teece, 1998;

Nonaka et al., 2000).

There are four types of knowledge assets corresponding to the four stages of the

knowledge creation (Nonaka et al., 2000): experiential knowledge assets, conceptual

knowledge assets, systemic knowledge assets, and routine knowledge assets (See Table 2

below). Since this research aspires to understand the interrelationships of the knowledge

creation process with its context and its content, an in-depth examination of these

knowledge assets is useful due to the fact that they define the content of this process

within the merged organizations.

Table 2

Four Categories of Knowledge Assets by Nonaka et al. (2000)

Note. Reprinted with permission.

Experiential Knowledge Assets

Experiential knowledge assets consist of the shared tacit knowledge that is built

through shared hands-on experience amongst the members of an organization, and

Experiential Knowledge Assets Conceptual Knowledge Assets

Tacit knowledge shared through common

experiences

•Skills and know-how of

individuals

•Care, love, trust, and security

•Energy, passion, and tension

Routine Knowledge Assets

Tacit knowledge routinized and

embedded in actions and practices

•Know-how in daily operations

•Organizational routines

•Organizational culture

Explicit knowledge articulated through

images, symbols, and language

•Product concepts

•Design

•Brand equity

Systemic Knowledge Assets

Systemized and packaged explicit knowledge

•Documents, specifications, manuals

•Database

•Patents and licenses

between the organization and its customers, suppliers and affiliated firms (Nonaka et al.,

2001). Their tacit nature not only makes efforts to capture, measure, evaluate or trade

difficult, but also makes them firm specific, difficult to imitate resources that can lead to

a competitive advantage. Organizations need to build their knowledge assets through their

own experiences. The experiential knowledge assets of skills and know-how that are

acquired and accumulated by individuals through experiences at work are of particular

importance to the present research, since the knowledge-routinized and a merged

organization depends on them for the performance of the tasks at hand (Blackler, 1995).

In addition, the experiential knowledge asset of know-how is linked to the skill

acquisition process. Know-how is the ability of an individual or a team to perform a

certain kind of activity or task smoothly and efficiently and requires the accumulation of

practical skill or expertise (Machlup, 1982). It must also be learnt and acquired, while

practice is required for its maintenance (Kogut & Zander, 1992).

Conceptual Knowledge Assets

Conceptual knowledge assets consist of explicit knowledge articulated of ideas

through images, symbols, and language (Doyle, 1999). This knowledge creation process

requires both stimulation and focus (Scarbrough, 2016). They are based on the concepts

held by members and customers of an organization (Nonaka et al., 2000). Brand equity

and concepts or designs, as perceived by customers and organization members, are also

conceptual knowledge assets (Nonaka et al., 2000). Since conceptual knowledge assets

are created with the use of images, symbols, languages, not only the existence of a

language known and accepted by all participants, but also conversation and its content, its

style and its management are important (Krogh & Ross, 1996; Von Krogh et al., 2000). In

contrast to experiential knowledge assets, they have tangible forms and are easier to

grasp, and since they have no habitat, they can be easily articulated and engineered

(Boisot, 1995).

Systemic Knowledge Assets

Systemic knowledge assets consist of systematized and packaged explicit

knowledge, such as explicitly stated technologies, product specifications, manuals,

reports, licenses, contracts, patents, and documented and packaged information about

customers which makes them easily transferable (Nonaka, et al., 2000; Klint & Verhoef,

2002; Nakhla, 2003). Systemic knowledge assets can be quantified relatively easily and

can be measured in contrast to other types of knowledge assets (Miles et al., 1998;

Sveiby, 2000). Since this kind of knowledge asset is the most “visible”, often the focus is

primarily on its storage, retrieval, access, and management.

Routine Knowledge Assets

Routine knowledge assets consist of the tacit knowledge that is routinized and

embedded in the patterns of thinking, the practices and the actions of organizational

members through continuous exercises (Nonaka et al., 2001). The formation of routine

knowledge is also facilitated when members share a common background and history.

Know-how, organizational culture and organizational routines for carrying out the dayto-

day business of the organization are examples of routine knowledge assets. Routines in

organizations are the equivalent to individual skills and they are formed by a tacit and

collective type of knowledge (Nelson & Winter, 1982; Matusik & Hill, 1998).

Organizational routines constitute a fundamental part of the organizational memory, since

they are accumulated stocks of know-how in the procedural knowledge (Nelson &

Winter, 1982; Cohen & Bacdayan, 1994). Socialization, education, imitation,

problemsolving, and personnel movement are basic ways for the transmission and

movement of organizational routines (Levitt & March, 1988). Besides organizational

routines, Nonaka’s framework views organizational culture as an additional routine

knowledge asset.

Table 3

summarizes how this research study links knowledge creation process with its context and its

content. Reprinted with permission.

Phase A Phase B Phase C Phase D

The SECI

Process

Socialization Externalization Combination Internalization

Skill acquisition

process

Fault identification

process

Planning and scheduling process Execution process

Knowledge

Assets

Experiential

Knowledge Assets

Conceptual

Knowledge

Assets

Systemic Knowledge Assets Routine Knowledge Assets

Skills and know-how

of individuals

Care, love, trust, and

security

Energy, passion and

tension

Product concepts

Design

Brand equity

Documents, specifications Know-how in daily operations

manuals Organizational routines

Database Organizational culture

Patents and licenses

Organizational Culture

Schein (1992) argued that culture represents the expression of new beliefs,

assumptions, and values by members of the organization or groups. Organizational

culture was a major determinant of the success or failure of mergers and acquisitions.

Weber and Tarba (2012), found organizational cultures could have a direct impact on the

manager and employee behaviors that can lead to the success of a merger. The concept of

culture suggests shared history, unwritten rules, social customs and expectations that

shape the behaviors of individuals within an organization (Ling, 2011). Organizational

culture is defined as the set of underlying beliefs, which are rarely articulated directly, but

which influence employees’ perceptions of communications and actions (Safa, Shakir, &

Boom, 2006). Muscalu (2014), defined organizational culture as having three key

elements: beliefs, behaviors, and attitudes of the people. During a merger, leaders often

do not value or consider organizational culture (Van Dyke, 2015). The culture of an

organization helps to create the norms and values that prevail in the working environment

during a merger. Establishing a new culture takes some time, however, managers need to

remain open and communicate with employees throughout the change implementation.

All of these factors are important for knowledge management success (Al Saifi, 2015;

Ling, 2011; Huang & Hsiao, 2010). Knowledge management is not a one-off practice but

needs to be embedded within these values and norms (Jones & Sallis, 2002).

Organization culture controls various patterns, as well as the behavior of

employees within the organization. It can be used in knowledge management

implementation, particularly in relation to knowledge sharing (Razmerita et al., 2016). At

the same time, there are challenges associated with the role of organizational culture in

knowledge management during a merger. The development of a knowledge management

system to achieve specific objectives requires various activities to change to become

knowledge-based, which has implications for organizational culture (Chong, 2006).

Employees also need to become knowledge-based workers, which involves the creation

of a knowledge management culture that supports sharing knowledge, as well as the

creation of value during a merger. Clearly, communication is not only essential for

knowledge management, but also for the entire organization during a merger. Open

communication of merger activities can help reduce or eliminate the unknown and have

the employees feel they are part of the merger process. Effective communication reflects

effective information sharing, which develops overtime, and efficient decision making

(Chen et al., 2016). In relation to knowledge management during a merger,

communication means collaboration, interaction, and information sharing, leading to

successful decision making that drives development and growth. Employers who

maintain open communication channels with employees during a merger will increase

trust, commitment, and innovation among the employee (Kim, 2011). Open

communication and information exchange are critical during a merger (Bansal, 2015).

With effective communication channels in place, knowledge sharing can become easy

within the organization. Knowledge is for anyone who can utilize it to achieve desired

outcomes. All these elements are derived from the organizational culture. A corporate

culture that lacks communication channels cannot motivate the workforce to trust each

other and share learning activities. The absence of communication channels also makes it

difficult for management itself (Murray & Peyrefitte, 2007). The core of successful

knowledge management lies in interaction and socialization so that information and

knowledge can be shared through efficient communication channels (Andreeva &

Ikhilchik, 2011).

Organizational culture is an indispensable element in the success of Nonaka’s

model (1995). Culture integrates multiple aspects of an organization. Nonaka and

Takeuch’s model propose that the culture prevailing in an organization should be based

on collaboration, learning and trust (Ling, 2011; Sankowska, 2013). Organizational

culture involves shared values, assumptions and beliefs that guide employees’ behavior in

the workplace. According to Nica (2013), every organization maintains and develops a

unique culture that includes boundaries and guidelines for the behavior of its employees.

Organizational culture has been identified as a fundamental determinant of the success or

failure of knowledge management, and extensive research has identified those aspects of

culture that promote knowledge creation and sharing (Al-adaileh & Al-atawi, 2011). The

general consensus is that knowledge sharing flourishes in less formalized, more

decentralized and entrepreneurial environments (Chen & Huang, 2007).

Each organization has its unique values that collectively represent its culture.

Ibrahim and Heng (2015), argued that effective socialization is highly dependent on

organizational culture and the interaction among individuals and collective individuals

such as corporations. Nonaka and Takeuchi (1995), identified socialization as the first

knowledge management transfer method (exchange of tacit knowledge). Socialization is

the process of collecting tacit knowledge through shared values and experiences (Nonaka

& Takeuchi, 1995). In addition, culture influences tacit knowledge sharing behavior. The

reason to focus on tacit knowledge retention is that it is becoming the only source for

competitive advantage for companies (Harlow, 2008). The following section examines

the four elements that represent organizational culture: trust, collaboration, learning and

motivation.

Trust

Trust should exist among top management, lower management and employees

because trust is an important determinant of productivity and the keys to effective and

efficient knowledge sharing (Ling, 2011; Sankowska, 2013). Establishing an environment

of trust where employees feel safe in sharing their knowledge is crucial. Trust in the

organization is important because it allows managers and employees to confidently

discuss organizational issues (Berraies, Chaher, & Yahia, 2014; Finley & Sathe, 2013).

According to Nica (2013), trust allows employees to voice their problems and input their

opinions to improve the organization. According to Buonon and Bowditch (1989), trust is

essential to the integration process during a merger. When managers take into

consideration the integration factors of employees’ uncertainty, dealing with conflict, and

feelings of insecurity, during mergers, it helps to maintain trust for the employees

(Thakur & Bansal, 2015). The transition time for the integration of processes can also

create an atmosphere of tension and mistrust. The integration processes can be viewed as

unfair by some employees (Hopkins & Weathington, 2006) since changes may occur in

both corporate programs. Employees are unaware of the intentions of the newly

combined organization; they might not trust the motives of the managers within the new

organization. Open communication of the intended changes will help to develop

employee trust (Bansal, 2016).

Collaboration

In recent decades, the complex and dynamic business environment has

encouraged the development of knowledge creation process through collaboration (Razi

& Karim, 2010). Trust is a prerequisite for creating a collaborative environment, which

can generate useful knowledge (Sankowska, 2013). Building a collaboration needs strong

leadership, and is based on communication, trust, and shared purpose and vision

(Berraies, Chaher, & Yahia, 2014). Collaboration is not a vague aspiration, but it may

estimate the value which can be developed through training of employees and executives,

practice and reflection across the organization. Effective collaboration is about increasing

the talent, time and tools to create organizational value (Finley & Sathe, 2013).

Learning

A learning organization is one that is always in the learning phase (Sarayreh,

Mardawi, & Dmour, 2012). In a merger, learning enhances understanding and increases

knowledge sharing. According to Bratianu (2014), the Nonaka model proposes that an

organization should create knowledge continuously. This is possible by restructuring

existing knowledge through the use of knowledge transformation processes. Knowledge

creation has an impact on the learning process, and it is believed that both organizational

learning and knowledge creation can help to create a new way of ensuring continuous

improvement and enhancement of organizational performance. Knowledge management

has attracted considerable attention in the past few years. Organizations are implementing

different models and theories to create, share and integrate knowledge to facilitate the

learning processes (Oye & Salleh, 2013). To compete effectively in the global world, it is

necessary to integrate learning processes, which can assist employees to learn new skills

to perform their work. Razi and Karim (2010) concluded that a learning culture enhances

knowledge creation process in relation to all four elements (i.e. socialization,

externalization, combination and internalization).

Incentives and Rewards

It is essential for organizations to provide an incentive and reward structure. A

diligent workforce deserves to be rewarded in order to keep everyone motivated

(Ramjeawon & Rowley, 2017). The incentive and reward structure help to keep

employees motivated and encourages them to participate and perform efficiently. It is

necessary to use performance management metrics and disseminate information about the

reward policies and strategies. In the process of knowledge management in a merger,

employees are required to participate and share knowledge with each other (Zhang, Zhao,

& Wang, 2016). Through socialization, employees communicate and facilitate processes

of learning and development. Jaleel and Verghis (2015) proposed that linking reward and

incentive schemes to the process of knowledge management positively impacts on

employees’ motivation to learn and develop skills to share knowledge with others.

Rewards which may be tangible or intangible, play a major role in motivating employees

to implement knowledge creation and sharing approaches and processes (Berraies,

Chaher, & Yahia, 2014). In any organization, incentive mechanism is valuable and has a

long-term effect on the behavior and activities of employees (Bratianu, 2014).

Information Technology

Information technology is always one of the major challenges for companies that

are merging (Chin, Brown, & Hu, 2004). Information technology had changed drastically

creating a critical issue for managers of merged organizations. Merging two organizations

can create an overabundance of technology programs. The managers will have the task of

deciding which programs best fit the new organization. The efficiency of the knowledge

management process depends on the availability of appropriate information technology

infrastructure (Mills & Smith, 2011). Sandhu, Jain and Ahmad (2011) argued that for

information technology to become a success factor for knowledge management,

organizations should develop an approach and content that reflect the needs of their users.

It is important to establish common portals for knowledge sharing, that databases contain

sufficient details, and that the systems support future growth. Appropriate training is also

important to ensure that individuals know how to use the information and communication

technology correctly.

Information technology involves more than merely processing data and

information. It aids in communication between individuals through chat rooms, video

conferencing and email. It also plays an increasing important role in knowledge

management (Willem & Buelens, 2009). Information technology plays an important role

in Nonaka and Takeuchi’s knowledge creation and sharing process. It is responsible for

managing and sharing databases and all other forms of explicit knowledge (Alazmi &

Zairi, 2003). Databases, information centers and dissemination of the databases need to

be effectively and efficiently supported to enhance knowledge management and

knowledge sharing within the business (Kumar, Jain & Tiwary, 2013). This includes

ensuring that all aspects of the business are integrated and that responsible personnel are

linked with the knowledge they need. This is important for knowledge creation as well as

knowledge sharing (Razi & Karim, 2010). The use of information technology in

supporting knowledge management is demonstrated in the extent to which information

technology supports collaborative work, communication, searching, accessing,

simulation, prediction, and systematic storing of information and data (Lee & Choi,

2003). Many researchers highlighted the importance of information technology

infrastructure in supporting knowledge creation process (Berraies, Chaher & Yahia, 2014;

Jeng & Dunk, 2013). Information technology makes available a range of tools such as

internet, intranet, groupware, workflow, datamining, and video conference to help

organizations manage knowledge. It allows employees to connect with reusable codified

knowledge and provides a conduit between newly created knowledge (Berraies, Chaher

& Yahia, 2014; Kuo & Lee, 2011). With information technology, mergers can absorb

vast amounts of information and share, apply and create knowledge (Gold, Malhotra, &

Segars, 2001).

Knowledge Management

Knowledge management can be evaluated using different models and

measurement techniques. The knowledge management process involves acquiring,

converting, applying and protecting knowledge within a structural, cultural, and

technological infrastructure. These vital organizational capabilities have the potential to

significantly and positively impact on the performance and effectiveness of organizations.

Performance measurement is defined as the collection of data and information about the

effectiveness and productivity of individuals, groups and organizations, suggesting its

association with key areas such as expansion, innovation and productivity (Carneiro,

2001). Measurement provides indicators and benchmarks from which organizational

goals, performance and improvements can be calculated (Conley & Zheng, 2009).

A positive relationship between performance measurement and successful

implementation of knowledge management was show (Moffett, McAdam, & Pakinson,

2003). According to Suppiah and Singh (2011), most organizations avoid measurement as

they consider this to be an investigation of their income and returns on investment.

Measures indicating the presence of knowledge flow, sharing or transformation indicate

the efficiency of the current operations or strategies (Ragab & Arisha, 2013) observed

that the development of a link between knowledge management strategies and core

business outcomes increases the flow of knowledge. Knowledge management

performance measurement programs enhance the detection, mapping, examination and

dissemination of intangible assets, knowledge flow patterns, social networks, essential

knowledge issues and best practices in an institution. They are crucial for control,

assessment and enhancement of knowledge practices and to ensure that the knowledge

management remains on track (Ramachandran, Chong, & Wong, 2013). According to

Nonaka and Takeuchi’s framework, any practical analysis or assessment of spiral

knowledge formation is an unattainable task (Bratianu, 2014). A knowledge management

value chain consists of four main activities: creation of knowledge, storage of knowledge,

distribution of knowledge, and application of knowledge (Lee & Buckthorpe, 2008).

Employee Involvement

Employees’ involvement in organizational activities, where they are responsible

for achieving a set of goals and objectives, is believed to motivate their efforts and lead to

further contributions (Wang, Noe, & Wang, 2014). Forcada et. al. (2013) commented that

encouragement and appreciation of employee involvement makes a social contribution

within the organization. In the context of a merger, it is widely perceived that employee

participation strengthens decision making within organizations and that the efficiency of

the interactions diminishes the need for close supervision. The execution of knowledge

management involves the participation of managers as well as employees (Chumjit,

2013). The exchange of knowledge has to be distributed within the organization from

bottom to top. Every employee needs to be included and encouraged to actively

participate in knowledge management. Creation and sharing of knowledge cannot be

achieved without employees’ involvement. The knowledge that is created and shared

enhances the knowledge base of the workforce to the benefit of the organization and

employees’ own performance (Chong & Choy, 2006; Lee & Choi, 2003). It is also

necessary for the organization to provide the necessary training and development to its

workforce. When employees work in a team, they tend to be highly effective since

teamwork balances out strengths and weaknesses (Holsapple, 2013).

Employees are also pivotal to the success of Nonaka’s knowledge creation and

sharing process. Employees are at the center of organizational knowledge creation

(Gottschalk, 2002; Scott, 1998). Knowledge management is 10% technology and 90%

employees (Scott, 1998). Updated knowledge can be acquired by employing new people

with specific skills (Chumjit, 2013; Nonaka & Takeuchi, 1995). T-shaped skills

embodied in employees are amongst the core capabilities in the knowledge management

field (Berraies, Chaher, & Yahia, 2014). T-shaped skills refer to specialist capabilities

that allow employees to have significant and synergistic conversations with one another

(Swap, Leonard, Shield, & Abrams, L, 2001). T-shaped sills represent the depth of skills

and expertise in a field. An organization with T-shaped skills has a skilled workforce that

is dedicated to the organization and has a wealth of knowledge. When an organization

hires knowledgeable employees, the knowledge base of the entire organization increases

and facilitates knowledge creation and sharing. Tacit and explicit knowledge can help the

business grow and develop an effective and efficient knowledge base (Berraies, Chaher,

& Yahia, 2014).

Teamwork

Teamwork is effective in initiating knowledge management as the organization

brings employees with distinctive skills and knowledge together, enhancing the

distribution of knowledge (Jimenez, Martinez-Costa & Sanz-Valle, 2014). The formation

of teams within an organization involves a process of skills diversification that can lead to

the efficient handling of organizational processes and critical problem solving

(Chuang, Jackson & Jiang, 2013). According to Calvo-Mora, Navarro-García,

ReyMoreno, & Periañez-Cristobal, (2016), corporates in the current era are highly

engaged in future learning and development of their employees. On the other hand,

bureaucratic organization restricts the sharing of knowledge. The best way to ensure that

employees are involved in knowledge management is through teamwork. This can be

achieved through the development of team-building activities that require employees to

function as a group (Chong & Choi, 2005). It also leads to the sharing of knowledge.

Teamwork can be employed during training and innovation programs. It is vital to create

a friendly culture in which knowledge management can be integrated, since the ability of

workers to function as a team is crucial. In a merger, teamwork can also be used to

improve the learning process (Kandel, Schwartz, Jessell, Siegelbaum, & Hudspeth.,

2000).

Employee Empowerment

According to many researchers, knowledge sharing is neither efficient nor

effective without the empowerment of employees (Amah & Ahiauzu, 2013). Employee

empowerment strengthens the application of skills and knowledge since the individual

feels focused, motivated and responsible for resolving complex situations (Kianto et. al.,

2014). Knowledge management plays an important role in mergers, as sharing enhances

strategic innovations, aligns performances, and results in higher effectiveness (Gong,

Zhou & Chang, 2013). A sense of entitlement or belonging encourages commitment and

participation. It also creates a conductively work environment and ultimately leads to

increased productivity. When the leaders of an organization introduce knowledge

management, employees’ attitude toward the practices will determine their participation

and the success of its implementation (Ramachandran, Chong & Wong, 2013). Having

employee participate in decision making in matters that affect the entire organization

enables empowerment. Employees can also be given new tasks and provided with

information to enable them to make the right choices. Empowered employees have the

authority to do their job as they see fit. Empowerment must be preceded by appropriate

training and development (Andreeva & Ikhilchik, 2011). Knowledge management

practices require the workforce to make independent yet correct decisions. A team

environment is beneficial (Hislop, 2013).

Summary and Conclusions

Mergers and acquisitions are widely seen as a way of surviving in the global

marketplace. This chapter is concerned with merger history in the United States,

including details of underlying factors which have influenced the merger waves and the

economic performance of the merger activities in each wave. This chapter demonstrates

that merger waves in the US are positively correlated to the country’s economic

prosperity. The main discussion is an understanding of the underlying factors which

influence the occurrence of historic waves, their characteristics, and the main reasons for

the end of each wave. Interestingly, each of the merger movements reflected some

underlying economic or technological factors. Every merger wave arose mainly from

external exogenous disturbances such as economic, technological and legal factors

(Caves, Forunato, and Ghemawt, 1984). This is because M&As represent the process of

resource allocation or reallocation in the economy and, as such, they will affect most

people within the economy (Weston, Mitchell, & Mulherin, 2014). This section of the

literature review aims to shed some light on the underlying factors that are favorable for

the mergers, the characteristics of mergers, and the reasons why the waves ended.

This literature review was not merely to present the framework that is used in the

pursuit of the research study, but also to show how it will explain the interrelations of

knowledge creation processes with their context and their content and the influence of

mid-level manager’s actions and interactions upon them. The chapter started with a

presentation of the definition of knowledge, a discussion on alternative perspectives on

knowledge. Then, it was argued that Nonaka and Takeuchi’s framework can address the

phenomenon of interest better than other structural frameworks. This framework has

become very influential worldwide and is widely acknowledge within the knowledge

management community (Andreeva & Ikhilchik, 2011).

Previous research has explored the advantages and disadvantages of Nonaka’s

model in the business sector (Nonaka et. al., 2014). Based on this literature review, it is

evident that there is a gap in both the literature and studies related to the phenomenon of

new knowledge creation when tacit knowledge is integrated with intuitive decision

processes. According to Reid, Bennett, Chen, Eldadah, Farrar, Ferrell, Zacharoff. (2011),

identifying the research gaps help the research and strengthens the research methods and

approaches. Nonaka (1994) explained that unlike the internalization process, the

externalization concept is not well developed, and he recommended further research. In

conclusion, this chapter not only establishes the importance of the Nonaka and

Takeuchi’s knowledge creation model as a lens through which the research makes sense

of knowledge creation processes, but also point out that empirical research has been

conducted in relation to its elements.

Chapter 3: Research Method

The purpose of this qualitative descriptive phenomenological study was to

understand the merger-related knowledge management assets used by mid-level

managers in the retention of employees at recently merged medium-size information

technology firms in California from 2014 to 2019. The research question in a qualitative

study is used to determine whom the participants will be, their number, and the topic of

study (Cleary, Horsfall, & Hayter, 2014). I collected data from 12 mid-level managers

who have worked in California and have been involved in a merger and acquisition.

This chapter begins with the method used to collect, record, and analyze the data.

This chapter also includes a discussion of the research design. I present a broad

description of the research methodology that was used in gathering the data. Also covered

in this chapter are details of the participant selection logic, instrumentation, recruitment

procedure, participation criteria, data collection plan, and data analysis. Lastly, I describe

elements of trustworthiness to explain credibility, transferability, dependability,

confirmability, and ethical considerations.

Research Design and Rationale

The research design for the study was phenomenological. To obtain a deeper

understanding of the source, dimensionality, and manifestation of the phenomenon, a

descriptive phenomenological design was employed (see Giorgi, 2012). This descriptive

phenomenological research design followed the process prescribed by Giorgi, which was

based on the work of Husserl (Giorgi, 2009, 2012). Giorgi was viewed as a leader in the

development and use of the phenomenological method for empirical psychological

studies (Churchill & Wertz, 2011). Giorgi’s framework emphasizes the researcher’s need

for psychological sensitivity/suspension of judgement, or epoché (Giorgi, 2012). The

framework preserves the scientific method of inquiry by creating a rigorous structure for

studying human experiential and behavioral phenomena (Giorgi, 2012). The purpose of

the current qualitative descriptive phenomenological study was to understand the

mergerrelated knowledge management assets used by mid-level managers in the retention

of employees at recently merged medium-size information technology firms in California

from 2014 to 2019. The following research question was used to guide the study: What

are the lived experiences of mid-level managers in their use of management assets to

retain employees of recently merged medium-size information technology firms in

California from 2014 to 2019?

The most characteristic element of the descriptive phenomenological research

design is to carefully and in an objective manner develop descriptions of the pattern of a

phenomenon’s underlying characteristics (Mills, Durepos, & Wiebe, 2010; Giorgio,

2012). The researcher’s goal in a descriptive phenomenological study is to remain as true

as possible to the descriptions provided by participants depicting the phenomenon as they

lived or experienced it (Giorgi, 2009; Jeanfreau & Jack, 2010). One of the main reasons

why I chose the phenomenological research design was that it is a means to establish and

understand the essence of human life experiences (see Lasch, Marquis, Vigneux, Abetz,

Arnould, Bayliss, & Rosa, 2010). The design also enabled an in-depth description of the

beliefs and thoughts of mid-level managers. In this study, data were collected through

semistructured interviews with 12 mid-level managers above the age of 18, and data

saturation was reached with these 12 participants. Small studies reach saturation before

larger ones, and saturation is required for the study to have quality and validity (Fusch &

Ness, 2015). In most cases, the design requires the interviewer to understand the setting

of the respondents and give appropriate prompting questions that allow participants to

provide answers relevant to the study topic (Wladis, Conway, & Hachey, 2016). The

design provides a basis to understand the respondents’ perceptions and ensure that the

right people narrate their experiences on the research issue. I ensured that the respondents

had lived experiences on the topic of the study. Regarding the phenomenological design,

it is important that every participant’s comments are taken with high consideration.

Other methodologies were considered but deemed lacking. The narrative design

was considered but rejected. This design includes only one or two participants (Marshall

& Rossman, 2016) and was therefore inappropriate for this study’s research question. The

case study design requires in-depth and detailed research and examination of the case

(Yin, 2009). A case study needs to focus on examining a specific phenomenon in its

reallife context. The case study design was not employed in the current study. The

grounded theory design was also considered. This approach includes participant

interviews to generate a theory through inductive data analysis techniques (Khan, 2014).

This approach was not applicable to my study because the goal was not to develop a

theory, but rather to gain an understanding of mid-level managers’ knowledge

management assets in the retention of employees during a merger. In ethnographic

research, researchers collect data through interviews and often live within the group

during data collection

(Kriyantono, 2012). This approach was not applicable to my study because it was not

necessary to observe and interact with mid-level managers in their operating

environments.

Role of the Researcher

In this qualitative descriptive phenomenological research, I played a key role as

the data collection instrument. I also selected the appropriate methodology and design,

recruited participants, interviewed participants, and analyzed the data. I am an

experienced project manager and used my experience to develop and facilitate the

interviews to gain an understanding of the lived experiences of mid-level managers

utilizing knowledge management assets in the retention of employees during a merger.

Data collection, analysis, and measurement processes were employed consistent

with those prescribed by Giorgi (2012). The phenomenological research method’s critical

processes of bracketing, epoché, phenomenological reduction, and synthesis were

employed throughout the study’s collection and analysis phase (see Giorgi, 2012; Norlyk

& Harder, 2010). These processes allow the researcher to remain objective when

capturing the persistent themes and essential meanings derived from the interview data

rather than from the researcher’s subjective preconceptions or biases (Giorgi, 2012;

Norlyk & Harder, 2010). The epoché is an affirmative and volitional psychological shift

by the researcher from the natural to the phenomenological attitude; with this attitude, a

critical consciousness is achieved to examine the phenomenon under investigation

(Englander, 2012; Giorgi, 2012). The concept of bracketing reflects a state of mind

divorced from the present and void of all prior knowledge, preconceptions, and biases

about the studied phenomenon to allow the researcher to experience it in a new way

(Giorgi, 2012). The concept of phenomenological reduction is achieved by applying a

psychological attitude toward the collected data, searching for changes or shifts in the

experiential descriptions expressing their essential meanings (Englander, 2012; Giorgi,

2012). I strived to be objective when conducting this research. I ensured that the

questions chosen would allow the participants to drive the content of the interviews.

The role of the researcher is to ensure the protection of the participants and the

data collected. I presented the consent form to each participant before the study, and I

emphasized that I would follow the ethical expectations of Walden University’s

Institutional Review Board (IRB) and the National Commission of the Protection of

Human Subjects. All participants were informed that they would have the option to

withdraw at any time throughout the study with no negative consequences. During the

interview, I created an environment that encouraged the participants to be comfortable

and confident. To ensure the participants were protected, I conducted interviews in a

neutral and agreed meeting place and time. I recorded the responses and conducted

transcript verification to ensure reliability, credibility, and validity of the data.

Methodology

This methodology section includes the research approach for this qualitative

study. The research method used for this study was qualitative. A qualitative research

method was selected to gain insight into the lived experiences of mid-level managers

utilizing knowledge management assets in the retention of employees at recently merged

medium-size information technology firms in California. This methodology was aligned

with the research question, nature of the study, and literature review (see Nutbrown &

Clough, 2014). This section includes the participant selection logic, instrumentation, and

procedures for recruitment, participation, data collection, and data analysis.

Participant Selection Logic

The target population for this study was 15 mid-level managers who worked for a

California company during a merger and were above the age of 18. There is no ideal or

minimum sample size in qualitative research. According to Marshall (1996), an

appropriate sample size for a qualitative study is one that adequately answers the research

question. In other words, the adequacy of the data for understanding a phenomenon is

more significant than the number of participants (Marshall & Rossman, 2014). One

approach to sampling in qualitative research is to continue collecting data until no new

categories, themes, or explanations emerge from the data; this is known as achieving

saturation (Marshall, 1996). Data saturation is reached when there is enough information

to replicate the study, when the inability to obtain additional new information has been

reached, and when further coding is no longer feasible (Fusch & Ness, 2015).

In this study, the sampling frame that enabled data saturation was 12 participants.

Participants were purposefully sampled based on being a mid-level manager involved

with employees in California and being involved in a merger process. To qualify for this

study, the participants were required to have directly managed employees while a merger

was taking place at a corporation. I sent an invitation through LinkedIn to connect with

15 or more mid-level managers in California to see who was interested in participating in

this qualitative study. LinkedIn is the most visited professional online social network that

allows individuals and groups to establish connections with other users (Briscariu, 2019).

Unlike other social networks, LinkedIn is dedicated to attracting professionals and

individuals in business (Boyd & Ellison, 2010). I first sent an invitation to three LinkedIn

professional groups to recruit participants for the study. After participants accepted my

connect invitation, I sent them a LinkedIn email asking if they would like to participate in

the study. Once I established a participant’s eligibility, I requested their phone number to

schedule interviews. I ensured that participants were above the age of 18 by looking at

their work experience. Participants were chosen in accordance with the study’s

framework to research the lived experiences of mid-level managers and their use of

knowledge assets during a corporate merger. Participants were recruited from diverse

backgrounds, cultures, and ethnicities so that the study findings would fair and unbiased.

Participants were age appropriate for informed consent and had education and

intelligence to participate in the study.

Purposeful sampling is commonly used in qualitative research for the

identification and selection of information-rich cases related to the phenomenon of

interest (Palinkas et al., 2015). Purposeful sampling is a common type of nonprobability

sampling strategy in qualitative research (Albaqami, 2015). The aim is to select

participants who have the most useful information that can be collected via interviews

(Patton, 2015). A good research design has its components working in harmony so the

study can be functional and successful (Maxwell, 2013). To have a successful study, I

made sure the participants understood the research question and the purpose of the study.

I used purposeful sampling to recruit participants in through LinkedIn social network

professionals.

Instrumentation

I was the primary data collection instrument in this qualitative study (see Rimando

et al., 2015). In this study, the data sources were interviews, a reflective journal, and an

observation sheet to increase the dependability of the results. The semistructured

interview process allows for follow-up questions in the interview to provide an in-depth

understanding of the responses (Yin, 2014). The interviews were conducted through

telephone and ranged between 30 and 60 minutes in length. The reflective journal

provides the researcher with cues in body language, voice, and “extra information that

can be added to the verbal answer of the interviewee on a question” (Opdenakker, 2006,

p. 3). Through reflective journaling process, I focused on the data being collected from

the account of the participants without entangling my own thoughts and feelings. The

observation sheet contained the interview questions and space for short answers. Content

validity was established through transcript verification. I used a digital audiotape so that

the data can be downloaded and played on the computer. I used NVivo software to

analyze the data from the study after transcribing the interview results.

Field Test

I conducted a field test on the interview questions to refine my procedures and

revise my interview questions. The field test aids in ensuring the reliability and validity of

the test instrument (Van Teijlingen & Hudley, 2002). The field test participants included

three experts in the qualitative field who analyzed the questions to ensure that they were

properly aligned with the research question. The experts that participated in the field text

were academia professionals with extensive knowledge with qualitative studies.

Since their main purpose was to assess the appropriateness of the projected interview

questions, their responses will not be included in the data analysis (Patton, 2015). I

recruited the experts by emailing five prospective participants a solicitation letter (See

Appendix B). The professors were able to provide new dimensions and conceptions for

consideration (Maxwell, 2013). As a result of the field test, three experts recommended

adjustments to the interview questions to ensure that they would result in data that would

answer the research question.

Procedures for Recruitment, Participation, and Data Collection

I conducted all interviews and performed all data collection and data analysis. To

conduct recruiting for this study, I posted a request for participants on three group

message boards on LinkedIn, a professional networking website. Each participant

meeting the criteria received the informed consent form through email to acknowledge “I

consent,” which they then return by replying to the original email. After the informed

consent form was returned agreeing to participate in the study, a follow-up email was sent

to the participants to schedule a day and time for the phone interview. Within the

informed consent form, the participants were made aware that participation was strictly

on a volunteer basis and their decisions to participate could be withdrawn at any time

without repercussions. The interviews were conducted using phone and all participants

received the interview questions within 24 hours of confirming the interview date and

time to provide a clear understanding of what would be asked of them.

Data Collection

Data collection occurred in my home office using the telephone and computer. My

role as the researcher was to collect data. The primary source of data collection for this

study consisted of transcripts generated from semi-structured interviews with qualified

participants. Interviewing is the process to obtain information through verbal

communication (Edwards & Holland, 2013). Interviews are considered a primary data

collection procedure for qualitative research (Norlyk & Harder, 2010). In this study, I

used semi-structured interviews to collect data on the lived experiences, perceptions, and

beliefs of the participants utilizing knowledge management assets in the retention of

employees during a merger, and to answer the research question. Additionally, it is

important to note that both the data collection and the data analysis procedures of this

study followed Hycner’s (1985) phenomenological data analysis. For a qualitative

interview, the researcher becomes the instrument by recognizing any conceptions that

prevent understanding the phenomenon under study (Patton, 2015). The reason for using

a semistructured interview is because of flexibility in the type of questions that

specifically cover the topic, and how participants choose to respond (Rubin & Rubin,

2012). The interviews were on average between 30 to 60 minutes audio-recorded phone

calls. Participants were asked questions pertaining to the study topic. The interviews were

audio recorded to help in further investigations and data analysis. The participants were

debriefed and given a chance to re-consent to the utilization of the data. I used the Hycner

(1985) phenomenological data analysis process to analyze the participants’ interview

answers.

In qualitative study, transcription is a process of translating audio-recorded

interviews from spoken text to written form analysis (Sutton & Austin, 2015).

Transcribing recorded interviews is essential for the researcher in making decisions that

impacts what is comprehended from the data. I transcribed the interviews for accuracy of

the generated meanings and perceptions shared by participants during the interviews

(Sutton & Austin, 2015). Before completing the data collection process, transcript

verification occurred by sending each participant a copy of their interview which I

transcribed for their review. Once the participant received the transcribed data and

approved those data for accuracy, I reiterated with them that participating in this research

study was voluntary and all information collected would remain confidential. Each

participant was informed that they had a week to get the transcription returned to me and

any transcripts not returned would be considered as approved.

Data Analysis Plan

In this research, the data analysis plan is based on Hycner’s (1985)

phenomenological analysis process. The use of this process was more feasible to my

study and permitted me to transcribe the raw data into useful data. The data analysis

experience helped me to explore the interview data to ensure it captured the lived

experiences of the participants. The five stages of the phenomenological data analysis by

Hycner (1985) include: (a) Bracketing and phenomenological reduction, (b) Delineating

units of meaning, (c) Clustering of units of meaning to form themes, (d) Summarizing

each individual interview, (e) Generating composite descriptions.

The first stage in the data analysis involves the process of bracketing and

phenomenological reduction (Hycner, 1985). Bracketing involves the process of the

researcher working to set aside their personal biases and preconceived ideas about the

topic in preparation for the analysis of the data. Phenomenological data reduction is the

process of reducing large chunks of data within a given test into smaller units of meaning

such as codes. These codes represent the smallest units of experience of the participant.

After completing each transcript and with an open mind, I looked closely at the

information without any pre-supposition or judgment to allow meaning to emerge and to

hear what the participant was saying. It was very important to understand their part of the

story and their world. I was conscious of my personal bias as I went through the data with

an open mins to understand what participants were saying.

The second stage of the data analysis is the delineation of units of meaning from

the data (Hycner, 1985). This process involves examining the units of meaning with

respect to the research question. If a participant’s response contributes to an

understanding of the research question, the comment is noted as a unit of relevant

meaning (Hycner, 1985). I compiled a preliminary list of units of meaning, which are

statements that are relevant to their experience. I went over every word, phrase, sentence,

and paragraph noting significant communication and made notes to provide coherent

meaning. In the process of delineating units of general meaning, I included all general

meanings including redundant ones.

The third stage of data analysis involves the clustering of units of meaning to form

themes (Hycner, 1985). Based on the developed codes, I organized the data into clusters

of themes based on their similarities with each other.

The fourth stage of data analysis involves summarizing the experience of each

participant (Hycner, 1985). I developed a summarized narrative of the lived experience of

each participant based on the analysis of the interview transcripts. The summarized

narrative contained direct quotes from participants to strengthen the findings.

The fifth stage of the data analysis is the generation of composite descriptions,

containing the general and unique themes developed from the data (Hycner, 1985). The

composite description is an abstracted narrative of the experience of the entire sample as

a group. The composite description does not rely on the experiences of a single

participant, but on experiences that occur in several participants in the sample group.

In addition, I used NVivo, a Computer Assisted Qualitative Data Software

(CAQDAS) that aided in data organization, categorizing, sorting, and storing of data

(Jackson, & Bazeley, 2019). The NVivo software program was developed to help

researchers to organize and analyze data collected through interviews. The program

allowed data to be coded and reorganized into themes noted from the collection of data. I

used NVivo for data analysis to create nodes for each interview question and sub nodes to

categorize the positive and negative responses from each participant. The words and

phrases from these sub-nodes helped in discovering matching patterns of how mid-level

managers utilizing knowledge management assets in the retention of employees at

recently merged corporation. Pattern matching was done through the word query feature

of the software, and source and reference data was provided to estimate saturation. Data

analysis used transcript verification to make sure my interpretations of what they said

were reflective of the participant’s experiences.

Issues of Trustworthiness

Rigor or quality of data ensures the trustworthiness of its findings (Miles,

Huberman, & Saldana, 2014). In a qualitative study, the intent of trustworthiness supports

the value and soundness of the research study’s findings by the accuracy of detailed data

(Miles, et al., 2014). Researchers need to make sure their studies are credible,

transferable, dependable and confirmable. According to Patton (2002), rigorous methods,

credibility of the researcher, and philosophical belief in the value of qualitative inquiry

are vital in assessing the quality of qualitative research. Anney (2014) identified four

criteria to judge trustworthiness in qualitative research–credibility, transferability,

dependability and confirmability. To ensure my study was in adherence to the four

conditions, the application of each of these criteria in my study is discussed in detail

below.

Credibility

Credibility or internal validity is assessed by examining whether the findings

obtained by the researcher match the personal constructions of the participants

(Albaqami, 2015). Credibility reflects the truthfulness of the study’s findings from the

data collected from interviews, notes, and audio recordings from participants in the study

(Anney, 2014). In this study, I established credibility through one-on-one interviewing

and audio-recordings to elicit descriptive information from the participants on the

phenomenon being investigated. Credibility means that one can have confidence in the

qualitative data and in the processes that have been adopted to interpret the data (Johnson,

Onwuegbuzie, & Turner, 2007). One way of establishing credibility in qualitative

research is to employ respondent validation of their interviews (Harper & Cole, 2012).

According to Guba and Lincoln (1981), credibility can best be achieved by using the

process of transcript verification. To achieve credibility in my study, 1 sent each

participant a copy of their transcript for verification which allowed the participants to

review, correct, or amend their responses. I collected all data to ensure its uniformity. I

performed an audit trail to confirm my findings.

Transferability

Transferability was achieved in this study by providing enough detail about

methods, data collection, and data analysis to provide other researchers ample

opportunity to transfer this study (Bowen, 2005). The research was detailed, so that

readers can determine easily if the study can be transferred to their own context. In

qualitative research, transferability of results refers to the generalization of the results

(Hays, Wood, Dahl, and Kirk-Jenkins, 2016). The participants in my study were midlevel

managers who had direct supervision of employees during a merger. I ensured

transferability by administering effective probing questions, keeping detailed notes during

the interview, and conversations were audio recorded with participants to provide a thick

description of the phenomenon (Geetz, 1973; Holloway & Wheeler, 2010; Ryle, 1949).

Holloway and Wheeler (2010) described thick description as similarities among people

that characterize the patterns of their behavior impacted by cultural and social

relationships and clarify its meaning. I used research aligned probing questions to

increase depth and maintain focus in discussion during the interview.

Dependability

Dependability is determined if the results have consistent themes and if the same

research process and data collection methods are applied (Billups, 2014). There are

several ways a researcher can ensure dependability in a research study. My interview

questions for this study were reviewed by the University of Walden dissertation

committee members and University Research Review to ensure they were free from bias.

All interviews were conducted in the same manner. The dependability of this study refers

to the replicability of the results in another research (Thomas & Magilvy, 2011). In this

study, dependability was accomplished by using audit trails to verify the accuracy of

research participants interview information.

Confirmability

Confirmability in research is the acceptance and accuracy of the study’s results

reflected by the perspectives of the participants (Anney, 2014). In order to get accurate

and factual answers from the participants, I made sure that participants were comfortable

and allowed to speak freely. Confirmability is determining if the results are neutral,

accurate, can be corroborated, and have minimal researcher bias or reflexivity (Billups,

2014). This dimension of trustworthiness assesses whether the research findings and

conclusions reflect the data. In this study, I addressed confirmability by documenting the

data collection (for an audit trail) and analysis processes in detail (Albaqami, 2015). This

will confirm that the answers are legitimately those of the participants as they were

spoken.

Ethical Procedures

Numerous ethical issues potentially emerge during the conduct of research,

particularly in the relationship between researcher and participants (Albaqami, 2015;

Merriam, 1998). Walden University expects all research done on humans to be approved

by Walden University’s Institutional Review Board (IRB). IRB application (Approved

No. 02-27-20-0380309) was completed and used to gain access to participant. IRB is

useful for the study of human subjects and it makes sure that participants will not be

harmed in any way (Jacob & Furgerson, 2012). I ensured ethical treatment of all the

participants and all recruitment materials and processes were stored to avoid any issues of

privacy and confidentiality.

To protect the rights of the participants and to prevent abuse, informed consent

forms were prepared for this research. I sent all participants an informed consent form

through email that contains all the information about the purpose of the study, the

benefits of the study, and the protection of participant identity. I asked all participants to

reply to the original email with the response of “I Consent” to participate in the study.

Once the consent form was received, I contacted each participant to schedule the best day

and time for the interview. All participants’ personal information, including informed

consent forms and other identifiable data, were assigned an internal code to conceal their

identities. Protecting participants’ rights is paramount. I informed the participants of their

rights to accept or reject the offer to participate in the study. The participants had the

right to withdraw at any time from the interview process without penalty as stated in the

informed consent form. If at any time a participant chose to not participate in the study,

the participant could withdraw without penalty and the data collected would be erased

from the data collection.

I treated all participants equally and assigned a coded number to protect their

identities. An internal coding system ranging from FMLM1(Female Mid-Level Manager

Number 1) to MMLM12(Male Mid-Level Manager Number 12) was used to identify

each participant to protect their identities and keep their participation confidential. I used

all the data collected for this study exclusively for the purpose of my research

dissertation. All recorded interviews were transcribed into data notes containing only the

coded identification of the participant. The transcribed notes will be stored for five years

in a locked file cabinet after the research study has been approved. During the five-year

storage time, the confidential transcribed interviews, informed consent and the

handwritten notes will remain in the confidential file’s cabinet storage in my home and

flash drive before being destroyed. Audio recordings and my flash drive content will be

erased, and interview notes shredded.

Summary

In Chapter 3, I discussed the research methods in completing the study. The major

elements for chapter 3 included the research strategy for answering the research question,

and data collection procedures and analysis. A description and explanation of the data

procedures, as well as, the role of the researcher, and sampling criterion for selecting

participants for the study were presented. Chapter 3 concluded with a detailed description

of the data analysis plan, and the strategies to show the study’s trustworthiness and

addressed ethical issues.

In chapter 4, I discuss the study’s findings from the data obtained from

participants’ interviews and recorded conversations.

Chapter 4: Results

The purpose of this qualitative descriptive phenomenological study was to

understand the merger-related knowledge management assets used by mid-level

managers in the retention of employees at recently merged medium-size information

technology firms in California from 2014 to 2019. In this study, data were collected from

12 mid-level managers who provided responses in a semistructured phone interviews.

The research narrative documents my analysis of the conversations during these 12

interview sessions to provide a rich and meaningful account of how these managers, in

their unique and special roles, experience the day-to-day use of knowledge management

assets. This was a phenomenological study using Hycner’s (1985) guidelines for the

phenomenological analysis of interview data. The guiding research question for this study

was the following: What are the lived experiences of mid-level managers in their use of

management assets to retain employees of recently merged medium-size information

technology firms in California from 2014 to 2019? In this chapter, I discuss the field test,

research setting, participants’ demographics, data collection, data analysis, and evidence

of trustworthiness. I also present the results of the study.

Field Test

I conducted a field test of the interview questions to refine my procedures and

revise my interview questions. The field test is used to help avoid misleading,

inappropriate, or irrelevant questions and to ensure consistency with research instruments

(Cook, Beard, Cook, & MacLennan, 2016). The field test participants included three

research professionals who analyzed the interview questions to ensure that they were

aligned with the research question. The professionals who participated in the field test

were academic professionals with extensive knowledge of qualitative methodology.

Because their main purpose was to assess the appropriateness of the projected interview

questions, their responses will not be included in the data analysis (see Patton, 2015). I

recruited the experts by emailing five prospective participants a solicitation letter (see

Appendix A). The experts were able to provide new dimensions and conceptions for

consideration (see Maxwell, 2013). The field test also validated and provided adequate

information to proceed with the final study. As a result of the field test, three experts

recommended adjustments to the interview questions to ensure that they would result in

data that would answer the research question. The field test indicated that the interview

questions and the sample size were feasible for this study without changes to the protocol.

Research Setting

I used LinkedIn to connect with mid-level managers who have been involved in a

merger and acquisition and were older than 18 years of age based on their work history. I

first sent an invitation to three LinkedIn professional groups to recruit participants for the

study. The assumption was that the 6,157 members across the three groups would yield a

sample of participants for the study. The posting yielded 23 positive results about the

study. The 23 professionals were sent the consent form by email, but only 12 returned the

signed consent email. Eleven potential participants initially showed interest but declined

to proceed with the study because of various reasons. One potential participant was

concerned about disclosing information that would cause him to lose his job. Another

participant did not want to move forward because of legal reasons.

Demographics

The participants included 12 mid-level managers in the San Francisco Bay Area.

Ten of the participants were male, and two were female. The participants’ leadership role

included sales manager, IT manager, business manager, operations manager, executive,

development manager, and managers. The participants’ years of M&A experience ranged

from 5 to 25. The demographics of the participants are listed in Table 4. To protect their

privacy and confidentiality, each participant was assigned a pseudonym. For example, the

first female mid-level manager participant was FMLM1, and the third male mid-level

manager participant was MMLM3. The pseudonyms were used to ensure the

confidentiality of the participants.

Table 4

Demographical Overview of the Study Participants

Participants

Gender

Leadership role Years of M&A

experience

FMLM1

FMLM2

Female

Manager

12 years

10 years

MMLM3

MMLM4

MMLM5

MMLM6

MMLM7

MMLM8

MMLM9

MMLM10

MMLM11

MMLM12

Male

Manager

Executive

Sales manager

IT manager

Operations manager

Development manager

Business manager

Manager

16 years

13 years

5 years

25 years

7 years

10 years

9 years

12 years

14 years

10 years

Data Collection

The data collection phase focused on the quality and richness of the data gathered

(see Anyan, 2013). After approval from the Walden University IRB (No. 02-27-

200380309), I collected data from 12 mid-level managers recruited from LinkedIn. To

recruit participants, I extended research invitations to LinkedIn members who possessed a

job title of manager. Additionally, I presented the members of four LinkedIn M&A

groups the opportunity to participate in the study. I sent 65 emails through LinkedIn to

determine the interests of mid-level managers who may have wanted to be involved in the

study. Of the 65 recipients and M&A LinkedIn groups, 23 individuals responded as

interested participants for the study, but only 12 participated. Each of the 12 participants

received a consent form by email, and I advised each participant to review the terms of

the study and to provide email consent of participation. Each of the participants consented

through email to participate, and each of the participants also gave consent to be digitally

recorded over the phone. Every participant provided potential interview dates and times.

The interview time ranged from 30 to 60 minutes.

The interview process took 2 weeks to complete with an average of one interview

per day. The participants emailed the best time to call them, and some accepted my

proposed time for the interview. Before the start of each interview, I expressed

appreciation for their participation and provided a brief overview concerning the study. I

repeated the benefits and risks the participant may encounter by participating in the study.

I reiterated there would be no compensation for participation in this study. I restated that

participation was voluntary. I reemphasized the right to withdraw from the study at any

point during the research process without penalty or retaliation. After assurance from

each participant of their desire to participate in the study, I initiated the interview. I

approached each interview with an open mind to ensure that my experiences,

understanding, and biases would be set aside so I would not prejudice the interview

responses.

The digital recorder that I used was the Olympus WS-853, which is advertised for

recording at meetings. The Olympus WS-853 is user friendly, can record for 2080 hours,

and has a storage capacity of 8 gigabytes. I recorded all interviews with the digital

recorder. I also maintained a reflective journal as part of this phenomenological study.

The purpose of the reflective journal was to keep notes and memos regarding what I

heard and experienced throughout the process. I transcribed each response from the

reflective journal onto a Microsoft Word document. At the end of each day, I listened to

each audio recording to ensure accuracy, and then I transcribed the interviews verbatim.

Hycner (1985) indicated that repletion (going through the recording several times while

listening) of the audio recording of each interview is necessary to develop a holistic

sense. Next, I conducted transcript verification by sending a copy of each interview

transcript to the corresponding participant through email. This gave all 12 participants an

opportunity of making any changes to the transcribed data. Conducting a transcript

verification helped ensure the research study had accuracy and added credibility to the

data collection (see Yin, 2018). All of the transcribed data were verified. The process of

transcript verification ensured that data collected were correct and relevant to the study. I

began the data analysis immediately after this verification.

After each participant had verified the transcribed interview responses, I entered

the data into NVivo software. I watched a video on YouTube to familiarize myself with

how to use the NVivo software. I asked for help from a Walden PhD graduate who had

used NVivo for her dissertation.

Data Analysis

I used NVivo 12 starter for students for data analysis, and I employed Hycner’s

(1985) method of phenomenological analysis. The first step of Hycner’s (1985) data

analysis process was the following:

1. Bracketing and reduction: Bracketing allows the meaning of the data to

emerge with the least amount of researcher influence possible during the

reduction of data. This step directs the researcher to identify personal

presuppositions as a means of helping the researcher suspend those

presuppositions. I looked closely at the information without any

presupposition or judgment to allow meaning to emerge and to understand

what the participant was saying.

2. Delineating units of meaning: These units include general meaning such as

“words, phrases, or para-linguistic which express a unique and coherent

meaning” (Hycner, 1985, p. 282). As I continued to bracket my

presuppositions, I tried to stay true to the data, as well as have a sense of the

whole of the interview as a context. In my attempts to delineate units of

meaning, I went over every word, phrase, sentence, and paragraph noting

significant communications and made notes to provide coherent meaning for

the expressed data.

3. Cluster units of meaning to form themes (in this case participants’ responses):

The interview transcripts were read to determine clusters of meaning. At this

stage of the research, it was important to bracket and suspend judgment,

assumptions, and presuppositions and to present the phenomenon as openly as

possible. Significant statements and descriptions were extracted and

categorized. Eight emergent themes were identified from the data. Significant

statements, thematic descriptions, and verbatim quotes were organized around

each theme.

4. Summarizing each interview, validating it, and where necessary modifying it.

5. Extracting general and unique themes from all the interviews and making a

composite summary (Hycner, 1985).

In preparation for analyzing the data in NVivo 12, I imported the 12 interview

transcripts from Microsoft Word into the NVivo software. NVivo is one of the most

popular analysis tools and is ideal for phenomenological work (Langdridge, 2007). I

formatted the transcripts to assist in the coding process. I also added the participants’

demographic data to the project. Using NVivo 12, I organized, managed, coded, and

categorized the data to identify themes, generalizations, and patterns that emerged from

the content (see Woods, Paulus, Atkins, & Macklin, 2016). I used NVivo 12 to cluster

data into categories and theme linkages and to remove redundant units of data.

I started data analysis by using the NVivo 12’s auto-code function to create a node

based on the interview questions by grouping the participants’ responses to the interview

questions. The coding in NVivo was achieved by assigning headings for interview

responses to the questions as standard text. The key terms arising from the interviews

were used to develop the emerging themes and relating the themes to the lived

experiences of the participants. Themes are the way in which a researcher can explain the

essence and meaning of the phenomenon based upon the mid-level managers’ responses

(Creswell, 2009). At the completion of the coding, the NVivo report revealed relevant

themes from the data. I reviewed the interview transcripts several times to ensure I

captured the themes that emerged from the data. Eight themes emerged from the data

analysis. NVivo 12 functioned as a tool I used to understand how data harmonized with

the Nonaka and Takeuchi’s model. I evaluated the data findings against the conceptual

frameworks that guided this study. The Nonaka and Takeuchi’s model served as lenses to

explore the data’s meaning and to understand its role in the merger-related knowledge

management assets used by mid-level managers in the retention of employees.

Evidence of Trustworthiness

Credibility

I achieved credibility by adopting the strategies of bias accountability, reflexivity,

transcript verification, and data saturation. Credibility is when a qualitative study is

believable based on the information of how the research process was conducted (Hays,

Wood, Dahl, & Kirk-Jenkins, 2016). In this study, I acknowledged personal biases, and

during the interview process I communicated to the participants any personal or

professional characteristics and their significance to the study. I used the technique of

reflexivity and reflection to acknowledge my perspectives and minimize research bias.

The process of self-reflexivity created a platform to recognize unrealized blind spots

(Gilmore & Kenny, 2014).

Transcript verification was another strategy used to validate, improve, and

strengthen the quality of the research data (Harvey, 2015). In this stage, I provided the

participants with an opportunity to review the accuracy of the interpretations of the

information given during the interviews through transcript verification. I sent transcribed

interviews to each participant through email, to ensure the accuracy of interpretations,

and to validate whether the interpretations captured what participants meant to convey

(Birt, Scott, Cavers, Campbell, Walter, 2016).

Data saturation was another technique used to certify the trustworthiness of the

study findings. The purpose of data saturation was to validate the replication of the

study’s findings by another researcher should one desire to repeat or conduct a similar

study (Hancock, Amankwaa, Revell, & Mueller, 2016). Data saturation occurred during

the data collection after the 10th participant, additional data were not leading to more

information, but I followed through with interviews to the 12th participant.

Transferability

Transferability refers to the generalizability of the results to other participants or

situation (Hays, Wood, Dahl, & Kirk-Jenkins, 2016). The procedures and process of the

entire study was written in great detail. I provided a detailed analysis on how I selected,

contacted, and recruited participants from LinkedIn. How the interview protocol and the

conceptual framework were aligned was explained. I have also addressed how the

interested participants received a consent form by emails as well as how I conducted

phone interviews. I have presented how I verified the transcribed data with the

participants through transcript verification and how I used NVivo software for data

analysis. I also addressed how I analyzed the themes for each coded node and

summarized them to make conclusions on the study results.

Dependability

Dependability is when a study can result in similar results among other

researchers (Hays, Wood, Dahl, & Kirk-Jenkins, 2016). To foster dependability of the

study, the transcribed data from the participants had to be accurate before being coded

with NVivo software. The participants also had an opportunity to review all transcribed

notes. Each participant had enough time to perform the Transcript verification procedure

by verifying his or her transcribed data for accuracy. Only after the transcript verification

process was conducted successfully did I code each transcribed data into the NVivo

software to derive the main themes from the coded nodes. Dependability was also

achieved through the conduct of a field test to determine the acceptability of the interview

questions and the interview process. The field test also served as expert validating the

capability of the interview questions generating responses that would answer the research

questions.

Confirmability

Confirmability refers to the interpretation of participants’ perceptions without the

bias of the researcher (Hays, Wood, Dahl, & Kirk-Jenkins, 2016). To ensure

confirmability, I explained in detail how the interpretations and outcomes were derived. I

demonstrated confirmability by using rich quotes from the participants that illustrated the

emerging perspectives, patterns, and themes. I employed transcript verification processes

to validate that the study’s findings exemplified the participants’ perspectives and

captured what the participants meant to convey. The entire interview was digitally

recorded, and handwritten field notes were taken for comparison.

Study Results

The results of this study are organized by major themes and then further divided

by the responses of mid-level managers. This framework provides an opportunity to elicit

and analyze essential themes from the data. Each theme is explored and relevant

quotations from each of the research participants are provided. To understand the

mergerrelated knowledge management assets used by mid-level managers in the retention

of employees, the focus of the study was on a central research question:

RQ: What are the lived experiences of mid-level managers in their use of

management assets to retain employees of recently merged medium sized information

technology firms in California from 2014–2019?

Figure 3 below was developed to show the eight major themes that evolved out of

the semi-structured interviews and to help answer research question 1.

Communication

Training and Development

Employee Retention Strategy

Organizational Culture

Knowledge Transfer

Information Technology

Trust

Research Question

(RQ)

What are the lived

experiences of mid-level

managers in their use of

management assets to

retain employees of

recently merged medium

sized information

technology firms in

California from 2014-

COrganizat 2019 ?

Figure 3. Paired research question and themes.

Management Support

Table 5

Research Themes and Frequency Theme 1: Communication

The participants responded to using communication as a resource to retain employees.

All participants mentioned communication when they answered the interview questions 1 and

2. One of the components outlined by the participants for M&A integrations is to

communicate to employees what knowledge was needed going forward and to ensure that the

knowledge was transferred to the right employees. Some participants stated that managers of

the merging organizations must ensure there is open and honest communication about their

Themes

Frequency %

Communication

Training and Development

Employee Retention Strategy

Organizational Culture

Knowledge Transfer

Information Technology

Trust

Management Support

100

respective organizations. From the interviews, most of the participants stated that

communication is essential for knowledge transfer within an organization. Eight

participants stated that managers within both organizations must possess the ability to

articulate the direction of the organization and the value employees bring to the success

of the combined organization. All 12 participants mentioned communication during the

interview and highlighted the importance of clearly stating the desired outcome. The

following comments provided support for Theme 1:

MMLM7. This participant mentioned the importance of communication for

conveying tacit knowledge. “Communication is key to build networks with people” “We

have common communities of interest where we share information. It is important to

build networks and I encourage my employees to build bridges with others within those

communities”. “Sharing knowledge is very important.”

MMLM10. “I think it is a managers responsibility to be aware of what is going on

and to take the trouble to communicate with your employees and participate in various

technical forums” At the core of any organization is communication. If one of my

employees feel like they are not getting the information they need to do their job, I will

ask, “What is your preferred method of communication?”

MMLM6. It is about communicating and building understanding and building

employees commitment. “Knowledge is acquired through talking to your colleagues”

Theme 2: Training and Development

The second knowledge management asset resources mid-level managers use to

retain employees is training and development. In question 9,10, and 11, 90% of the

participants mentioned training and development. They managers stated that training and

development of employees was critical to successfully implement knowledge

management. All 12 participants stated that ongoing training and education play a key

role in keeping employees up-to-date and reduce the uncertainties and complexities

knowledge workers might face in a M&A. This theme was defined as the use of hands-on

training to facilitate the transfer of tacit knowledge. The managers believed that training

creates a platform for employee development, innovation and creativity where knowledge

can be easily transferred and shared between people. It provides both employees and

managers with the skills and information they need to fulfill their everyday

responsibilities. The following comments provided support for Theme 2:

FMLM1. “Whenever a new employee is hired, or someone takes a new position it

is always best practice to have him or her shadow a seasoned employee”. Due to some of

the intricacies and specialized application in what we do, it is very helpful to have the

new employee shadow for at least two to three weeks depending on the position. We have

training schedule for new employees on what they should learn in those first few weeks.

Participant FMLM1 stated, “Working with people leads to training. Many organizations

have become learning organizations. These organizations view training as a long-term

investment rather than a cost”.

MMLM4. “For an organization to be truly knowledge-based, it must support its

activities with quality training and education”. Management must utilize their expertise in

training and development to identify the needs of their organizations and its employees.

Also analyze how they can contribute to the knowledge management and resources and

ensure their continued involvement in knowledge management. “All my staff are

encouraged to be involved in seminars or training that is very specific to what we do.

When employees go for training, they gain knowledge that benefit the organization”.

MMLM11. “I believe a well-informed workforce is the key in competitive

advantage for any organization”. A strategic goal for organizations is to continually

improve their overall performance to satisfy these requirements. This is achieved by

sharing knowledge among employees and employees can acquire new knowledge by on

the job training, and vendor training. Participant MMLM11 implied training with

references to “On the job training and mentoring, workshops are all very important for

self-development”.

Theme 3: Employee Retention Strategy

The third knowledge management assets resources mid-level managers use to

retain employees during an M&A is employee retention strategy. In this study, 85% of

the participants mentioned employee retention strategy when they answered the interview

questions 6, 9, and 10. In order to sustain an organization, tacit knowledge must reside in

organizational knowledge banks. Employee retention helps to protect intellectual capital

during M&A. All the participants recognized the importance to retain employees, because

they would play a key role in knowledge transfer, which would eventually make the

M&A successful. Employees are crucial to the organization and to the success of the

M&A, but they could walk out the door at any time. In addition, the new organization

needed to retain key employees who had strong understanding of the products,

technologies, and the market to preserve the knowledge. Retaining key employees was

given a priority. Participants stated that to prevent employees from leaving, they were

identified and put under a retention plan. The retention bonus was given to them as an

incentive to stay, at least for the period necessary to replace them, if they wanted to leave.

In my findings, retaining key employees was given a priority. The following comments

provided support for Theme 3:

MMLM6: “At the end of the day our business is people, but people can walk out

of the door tomorrow” “The biggest factor for a successful knowledge transfer was the

retention of people.

MMLM9: “Part of the process is to identify who the great people are, making

sure they’re on retention programs, making sure that they’re incented to stay as long as it

takes to get someone else familiar with what they’re doing”

MMLM11: “A lot of know-how was in people who developed a lot of experience

over time. So when you transfer knowledge, people are extremely important”. “We

offered stay bonuses to encourage them to stay and work with us, so that the transition

was as clean as it could be, with a minimal amount of disruption”.

Theme 4: Organizational Culture

The fourth knowledge management asset resources mid-level managers use to

retain employees is organizational culture. Eighty percent of participants mentioned

organizational culture when they answered the interview questions 1, 2 and 4. Culture

provides an identity or character for the organization on how things are done within the

organization. Organizational culture was characterized as the willingness to change, high

tolerance of uncertainty and flexibility of operation. The participants stated that

organizational culture is central to a successful implementation of knowledge

management. They noted that in an M&A, the biggest challenge facing most knowledge

management efforts lay in developing a culture that is supportive of learning and

innovation. The following comments provided support for theme number 4:

FMLM1. Participant FMLM1 stated that knowledge sharing happened when

people with similar belief systems and a common goal came together. “A friendly culture

reflects how an organization views and facilitates learning by promoting knowledge

generation”. Culture is a key component of managing organizational change and stability.

Participant FMLM1 highlighted that since knowledge management is an example of such

change, culture was identified as a dominant factor in the implementation of knowledge

management.

MMLM3. Participant MMLM3 highlighted the role of cultural learning.

“Nurturing a culture of learning is necessary for today’s organizations to implement

knowledge creation and foster knowledge sharing”. He elaborated on how his company

conducted a cultural assessment to learn about similarities and differences of the two

companies during M&A. The company used the assessment later to tailor communication

to employees. “For a knowledge-centric organization to perform successfully and gain

competitive advantage, a workplace climate and culture of learning that views knowledge

as an institutional asset is required”.

MMLM7. Participant MMLM7 stated the importance of alignment of values and

culture. “So, if you deal with people that are friendly and interactive, one is dealing with

people that are like-minded. “A collaborative environment sometimes has an ability to be

a sort of a fuse” To align culture and values, there needs to be a common set of shared

beliefs. He mentioned that alignment was critical, and that attitude plays a critical role in

an organization. A culture that respects alignment of values, privacy, equality and

involvement has the potential to promote communication, trust, and new ideas can be

easily shared. “I think team-building activities would also be great for the knowledge

sharing process”.

Theme 5: Knowledge Transfer

The fifth knowledge management asset resources mid-level managers use to retain

employees is knowledge transfer. In this study, 80% of the participants mentioned

knowledge transfer when they answered the interview questions 6, 7, and 8. This theme

created significant results regarding the mid-level managers perceptions of how tacit and

explicit knowledge enhances knowledge transfer. Knowledge can be divided into tacit

and explicit knowledge. Some participants stated that knowledge transfer as a part of

knowledge management should be the goal of any organization whose leaders aspire to

protect its intellectual capital. Results indicated that employees transfer and share

knowledge, but on a limited basis. Eighty percent of participants reported that knowledge

sharing occurs through unofficial mentoring. The following comments provided support

for Theme 5:

FMLM2. “I think one-on-one is the best way to transfer knowledge”. “The

oneon-one mentoring type of sharing is the best way to transfer knowledge among

employees”.

MMLM10. Participant MMLM10 mentioned the importance of time and

resources allocated for knowledge transfer. “If you work in a big company, you don’t get

the information delivered on a silver plate. One really has to look for the information and

search for the information at different areas”.

MMLM5. Participant mentioned that coordinated meetings are an integral part of

knowledge transfer during an M&A. “I think it is important to have structure and

regularity in those communications. Make sure that we have good governance set up so

that those work streams are communicating and interacting, besides just reporting back

on status”.

Theme 6: Information Technology

The sixth knowledge management asset resources mid-level managers use to

retain employees is information technology. All participants mentioned information

technology when they answered interview questions 5, 6, 7 and 8. In this study, 70% of

the participants interviewed mentioned the importance of information technology for

M&A integrations and knowledge management when they answered the interview

questions. The uses of information technology tools have been well researched in

knowledge management and much of the research has focused on the sole use of

technology to transfer knowledge. The participants described lived experiences relating to

the effect of information technology and its role in the practice of knowledge

management within their organizations. They identified information technology as one of

the most critical factors for knowledge management success. Seventy percent of the

participants agreed that information technology largely affects externalization.

Externalization is the process of transferring tacit knowledge into explicit knowledge.

When externalization occurs, knowledge is documented and made explicit, making it

easier for others to share. The following comments provided support for Theme 6:

MMLM6. “Information technology is an extremely important tool to support

knowledge management initiatives, enabling employees and management to

communicate better”. It should not, however, be the basis of the initiative itself.

Information technology should be used as reinforcement in the implementation of

knowledge management initiatives. “Information technology supports knowledge

preservation and accumulation”. Participant MMLM6 noted methods for enhancing

knowledge transfer; for example, intranets, twitter, RSS feeds, virtual meetings, emails,

newsletters, IM, and webcasts.

MMLM8. “Knowledge cannot be simply stored, transferred or exchanged without

an effective and efficient information technology system in place”. Technology has the

potential to empower employees to facilitate knowledge sharing within the organization.

Participant MMLM8 stated, “With hardware and software information technologies such

as intranet, virtual communities of practice can be created thereby facilitating interactions

and increasing the scope of knowledge sharing and creation”.

MMLM12. Positive reinforcement and motivation in using Information and

communication technology influence the practice of knowledge management. “The use of

technology for knowledge management has included both in-person and virtual methods

in today’s work environment”. “Organizations should encourage the use of technologies

such as video conferencing, electronic forums, and social media like twitter and Facebook

to share tacit knowledge”. Participant MMLM12 noted that these tools produce a

dynamic information infrastructure that facilitate effective communication and processing

of data, thereby easier and faster sharing of information. “Social media has the potential

for expediting the exchange of tacit knowledge, which is a necessity of businesses”.

Social media plays a key role in validating one’s research findings as it enables

individuals to collect, communicate, respond, and interpret data and information.

Theme 7: Trust

The seventh knowledge management asset resources mid-level managers use to

retain employees during an M&A is trust. In this study, 65% of the participants

mentioned trust when they answered interview questions 2, 6, and 9. Trust is based on

one’s expectations of another and is therefore formed in the conscious mind. As stated by

the participants, a knowledge-centered culture, inspired, and motivated by trust,

stimulates innovation. In this study, 65% of participants reported that trust is trust is

essential to knowledge sharing. The following comments provided support for Theme 7:

FMLM2. “When employees develop work relationships based on affective trust

their ability and willingness to share tacit knowledge in their organization will increase”.

“I think that if there is no trust, there will be no knowledge transfer”. “You need a general

environment in which people are comfortable with each other, and you only gain that if

people really know each other because when you get to know each other, you begin to

respect each other, and when there is respect, there is trust”.

MMLM5. “Organizations that develop a high level of trust and cooperation

among employees and managers will be more likely to transfer tacit knowledge”. “Trust

has a huge impact on the knowledge sharing process. The more you trust someone, the

more willing you are to share knowledge one way or another. I think trust affects the

knowledge sharing process”

MMLM11. “Employees have to trust the person they are working with be it a

manager, mentor, or whoever. Trust influences knowledge sharing between the

inexperienced and experienced employees”.

Theme 8: Management Support

The eight knowledge management asset resources mid-level managers use to

retain employees is management support. Sixty percent of the participants mentioned

management support when they answered the interview questions. Managers play a

crucial role in making sure that employees understand all aspects of the knowledge

management process to execute the mission of the organization effectively. Participants

noted that managers must provide the time and training to facilitate the knowledge

sharing process. To enhance knowledge sharing throughout the organization, the

managers in supervisory positions could provide more hands-on assistance to the

inexperienced employees. Having managers open and willing to share, encourage

employees to assist each other, and encourage employees to ask questions without

criticism or fear of retribution is critical to the knowledge management process within the

organization. Results of the interview also indicated an area of concern relating to

management support that could affect and be a potential barrier to the knowledge

management process within the organization. In this study, 20% of the participants noted

a lack of management support. The participants noted a lack of management support as a

factor that could negatively affect the knowledge management process within the

organization. The following comments provided support for theme 8:

MMLM6. “Managers play a part in supporting knowledge management by just

getting together with the workers and trying to make sure they have the right people to

train them for the type of work they do” “It is important to have someone that has a

thorough knowledge if they have questions, who to go to.”

MMLM7. “Expressive managers generally enhance knowledge management”.

Managers who relate well to the employees as opposed to introverted leaders”. “It is

important to have managers who passionately believe in sharing knowledge”. If

management do not believe in sharing knowledge, they will not promote it”.

MMLM11. “I think I want to see management get more involved. They hold

knowledge as well as years of contracting experience in Silicon Valley. “I think

information sometimes when filtered down, you have different stages and individuals,

and when it gets to the person how is information really expressed to employees.”

MMLM12. “Some of the negative effects of knowledge sharing is how management

treats employees” “Does management value you as an asset or liability? If they consider

you as a liability, they are not going to encourage knowledge sharing with you”.

Summary

In summary, Chapter 4 contains a discussion of the data collection methods and

data analysis of the findings of the lived experiences through phone interviews, using 11

semi-structured interview questions from 12 mid-level managers in Silicon Valley,

California. The in-depth interviews provided rich descriptions of the phenomenon and

were digitally recorded, transcribed, coded, and analyzed. The data analysis followed

Hycner’s (1985) method of phenomenological analysis. NVivo 12 application software

was used to facilitate the phenomenological reduction process and to create the data

structure. The overall research was guided by the central research question: What are the

lived experiences of mid-level managers in their use of management assets to retain

employees of recently merged medium sized information technology firms in California

from 2014–2019? Through data analysis, eight themes emerged : (a) Communication, (b)

Training and Development, (c) Employee Retention Strategy, (d) Organizational Culture,

(e) Knowledge Transfer, (f) Information Technology, (g) Trust, (h) Management Support.

In Chapter 5, I interpreted the findings, discuss the limitations of the study, and

present recommendations from the study. I finally address the implications and

conclusions of the study. In this final chapter, readers should be enlightened about the

merger-related knowledge management assets used by mid-level managers in the

retention of employees.

Chapter 5: Discussion, Conclusions, and Recommendations

The purpose of this qualitative descriptive phenomenological study was to

understand the merger-related knowledge management assets used by mid-level

managers in the retention of employees at recently merged medium-size information

technology firms in California from 2014 to 2019. I recruited mid-level managers on

LinkedIn to participate in the study and received consent from 12 mid-level managers. I

used the descriptive phenomenological research design to understand the essence of the

participants’ perceived lived experiences.

The findings of the research revealed eight themes that I used to answer the

research question: (a) communication, (b) training and development, (c) employee

retention strategy, (d) organizational culture, (e) knowledge transfer, (f) information

technology, (g) trust, and (h) management support. The results revealed a consensus from

the participants that there are many knowledge management assets available to mid-level

managers to assist in the retention of employees. My research findings revealed that

managers are a great resource, along with other organizational resources. The analysis of

findings is linked to the conceptual framework that guided the study. Chapter 5 includes

an interpretation of the findings, limitations of the study, recommendations for further

research, implications for positive social change, and a conclusion.

Interpretation of Findings

The conceptual framework for the study was Nonaka and Takeuchi’s (1995)

organizational knowledge creation and transfer. Nonaka and Takeuchi argued that when

tacit knowledge is transferred, it goes through four forms of knowledge conversion:

socialization (tacit to tacit knowledge), internalization (explicit to tacit knowledge),

externalization (tacit to explicit knowledge), and combination (explicit to explicit

knowledge). By implementing tacit knowledge transfer processes, organizations can fill

the gaps about the importance of knowledge management assets and the influence that

implementation has on business, which is critical for positive social change. Continuing

to a broader concept of knowledge, Polanyi (1966) focused on the importance and

complexity of tacit knowledge. Polanyi opposed the thought of knowledge management

and noted that the knowledge people possess in their minds is too complex to manage.

Knowledge of the tacit dimension is embedded in a person’s head, unstructured, and

inarticulate. In addition, Polanyi stated that tacit knowledge means hidden knowledge

(knowledge a person is unaware of). Polanyi noted that tacit knowledge can be explained

using basic concepts such as swimming and bicycle riding. Riding a bicycle requires

some coordinated mental effort to maintain balance on the bicycle while riding, whereas

swimming requires some coordination of the muscles and strokes in certain intervals

(Polanyi, 1966). Sanchez (1997) indicated that an organization’s tacit knowledge is more

likely to be a source of competitive advantage than its explicit knowledge. Prusak and

Davenport (1997) approach to knowledge is that it is not possible to manage it; rather,

organizations manage the environment that is made up of people, processes, and

technology to optimize knowledge and operational performance. This discussion below

Table 6 shows how the themes discovered in this study are related to Nonaka and

Takeuchi’s tacit knowledge conversion phases.

Table 6

Nonaka and Takeuch’s Tacit Knowledge Conversion Phases (SECI)

The knowledge transfer conversion model is interwoven into the analysis that follows.

The research question that guided the study was the following: What are the lived experiences

of mid-level managers in their use of management assets to retain employees of recently

merged medium-size information technology firms in California from 2014 to 2019? The

eight themes identified from the findings were used to answer the research question.

Emergent Theme 1: Communication

I found that a merger success or failure depends on the management’s ability to

communicate the direction, vision, and mission of the organization at all levels within the

organization. The literature on mergers and acquisitions indicated that communication is

an important determinant of merger success or failure. Adomako et al. (2013) suggested

Knowledge Management Assets Available to Mid-Level Managers During a Merger

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