Harnessing the Power of Culture and Cultural Intelligence within Knowledge Management

Abstract

As smart machines and artificial intelligence become more prevalent in the workplace, organizations must prioritize building a culture that supports knowledge management initiatives. However, cultural diversity may hinder effective knowledge sharing, transfer, and collaboration. Organizations must cultivate cultural intelligence to overcome these challenges and fully utilize the potential of culture. This chapter investigates the role of culture and cultural intelligence. It examines the significance of culture in knowledge management. It offers practical examples and best practices from organizations such as IBM and Unilever for utilizing culture to improve knowledge management practices. The chapter examines the relationship between culture and KM and discusses cultural intelligence, its importance, and its application. Additionally, the chapter delves into strategies employed by IBM and Unilever to cultivate a culture that supports knowledge management. By examining their success stories, valuable insights and best practices can be derived.

1. Introduction

Competing in the twenty-first century represents a paradigm shift compared to the past [1, 2]. Markets have become increasingly dynamic, fluid, and uncertain, while consumers exhibit higher levels of demand and discernment. Competitors now possess enhanced agility and display predatory tendencies, while employees are characterized by greater intelligence and transience. Consequently, competition on a global scale has undergone dramatic changes, especially post-COVID-19, and intensified over the last two decades. The dynamic forces of the globalization age have forced organizations to search within for their full main capabilities to meet the challenges of their imminent obligations. Nations around the globe reacted differently to the dynamic changes that are impacting their economies. The economic language has also changed from seeking economies of scale based purely on productivity and return on investment to managing the “Age of Thinking and Resilience” [3, 4] or, for some, the “Creative Age” [5] “Third Industrial Revolution” [3] or still the “Knowledge Age.”

The continuous advancements in computing power, the Internet, information technology (IT) infrastructure, and the integration of technologies from IoT to big data revolution and production advancements that could potentially lead to a future without work have resulted in widespread recognition of the power of information and connectivity. The accounts envisioning a future without work in the coming years draw inspiration from a body of research that argues that advanced technologies such as smart machines (e.g., algorithms, artificial intelligence, and the Internet of things) are progressively eliminating the concept of work, including knowledge-based task; nevertheless, Karakilic [6] emphasizes the ongoing importance of human involvement in knowledge work.

Multinational organizations face considerable challenges in managing knowledge across different cultural contexts. An organization’s culture shapes employees’ attitudes and behaviors toward knowledge sharing and collaboration [7]. It significantly influences how individuals and organizations create, share, and apply knowledge. Cultural differences pose communication barriers; divergent norms and values affect knowledge perception and collaboration; trust and relationship building are influenced by cultural nuances; power dynamics hinder knowledge sharing; contextual differences impact knowledge application; and resistance to change arises from cultural factors, emphasizing the importance of cultural Intelligence (CQ) in overcoming these challenges and promoting effective knowledge sharing and collaboration across cultural boundaries [8]. CQ represents the person’s capability to understand and effectively network with individuals from diverse cultural backgrounds [8]. In knowledge management (KM), CQ enables employees to navigate cultural differences, adapt communication styles, and build cross-border relationships [9]. By possessing CQ , employees are better equipped to comprehend and appreciate different perspectives, leading to improved knowledge sharing and collaboration within multinational organizations [10]. CQ also facilitates the development of cross-cultural communities of practice, where employees from various cultural backgrounds can collaborate and exchange knowledge [11].

Therefore, understanding the impact of culture and CQ on KM is crucial for developing effective strategies that promote knowledge sharing, learning, and innovation.

2. Knowledge management (KM)

Over the years, organizations such as Amazon, Microsoft, Apple, Nike, Siemens, Unilever, IBM, Intel, Procter & Gamble, Boeing, Ernst & Young, Honeywell, Miter, KPMG, and Ford Motor Company have undertaken many KM initiatives, developed a knowledge base, developed training materials and offered training sessions on KM, implemented knowledge management systems (KMS), created knowledge networks, and created knowledge-sharing cultures to tackle the loss of explicit and implicit knowledge. These initiatives can yield several advantages, including enhanced efficiency, productivity, and customer service. KM is crucial in stimulating individuals’ thinking and influencing their actions.

KM is a main competitive advantage in the era of the knowledge economy or the Third Industrial Revolution. KM encompasses a range of technological, cultural, and procedural approaches that organizations employ to enhance the value derived from knowledge [12]. This involves improving, identifying, collecting, sharing, and utilizing existing organizational knowledge and accessing or developing new knowledge through partnerships or ventures [13]. KM goes beyond the scope of information systems and technology, heavily drawing from social and cultural elements. It also intersects with organizational development, innovation, and competitive intelligence [14, 15, 16].

2.1 Knowledge management process

Knowledge management processes exhibit diverse forms and can be implemented in various configurations. Nissen [17] proposed a life cycle model that illustrates an organization’s seamless knowledge flow, encompassing six phases. Wiig [18] pioneered a knowledge management process consisting of eight activities. Whitmore & Albers [19] also identified a nine-step comprehensive framework.

Implementing KM within a business is undoubtedly a multifaceted process. Nevertheless, its potential benefits make it a valuable tool for businesses of all sizes. By diligently following these steps, organizations can embark on the path to successful KM implementation and reap its rewards (Figure 1).

1. Identification of knowledge needs: First and foremost, it is crucial to identify the knowledge needs specific to the organization. This encompasses customer information, product details, employee data, and other pertinent information relevant to the business’s operations.

2. Knowledge capture: The captured knowledge needs to be effectively stored and organized. This can be accomplished by establishing a comprehensive knowledge base, developing training materials, or utilizing alternative methodologies designed to capture and retain knowledge.

3. Knowledge sharing: Once the knowledge has been captured, the next step involves sharing it with employees. Cultivating a knowledge-sharing culture within the organization is essential, as it encourages employees to disseminate knowledge actively. Employing KMS or utilizing other appropriate channels facilitates the efficient and widespread distribution of knowledge among employees.

4. Knowledge management: Finally, managing shared knowledge is critical to ensure its relevance and accuracy. This includes regularly updating the knowledge base, providing training sessions to address new knowledge, and implementing appropriate methodologies to manage the knowledge repository effectively.

Figure 1.

Knowledge management process.

2.2 Knowledge management success factors

Within the established frameworks of KM implementation, several factors emerge as crucial elements demanding focused attention for the success of KM initiatives. However, if these factors are not properly and adequately addressed, they can transition from facilitators of KM into significant barriers that hinder the realization of KM’s benefits [20].

The crucial factors encompass organizational structure, strategy, leadership, technological infrastructure, culture, organizational processes, and measurement [21]. When these factors are appropriately addressed and aligned with the goals and direction of the organization, the likelihood of achieving KM success significantly increases.

3. Culture

An organization’s culture emerges from its members’ shared fundamental assumptions and beliefs. It operates unconsciously, shaping the organization’s self-perception and perception of the surrounding environment [22]. Hofstede [23] introduced a comprehensive definition of culture as the shared mental programming that sets one group apart from another. He posited that culture finds expression through symbols, heroes, rituals, and values, which manifest across multiple dimensions: power distance, individualism versus collectivism, femininity versus masculinity, uncertainty avoidance, long-term versus short-term orientation, and indulgence versus restraint. Culture encompasses the values, principles, unwritten rules, norms, and procedures that guide organizational behavior. Culture building is a slow process [24].

Culture acts as the binding force that unifies an organization and enacts a decisive part in shaping the utilization of an organization’s knowledge assets. It dictates both the capabilities and limitations of what can be achieved. As organizational theorists acknowledge, culture plays a significant role in organizational performance and long-term effectiveness [25]. Successful organizations embody a cohesive organizational culture, forming a harmoniously integrated entity where everyone’s contributions complement one another. Rather than solely relying on hard work, effective organizations emphasize working smarter. Within the organizational context, culture becomes the determining factor that defines the realm of possibilities.

3.1 Culture and knowledge management

In the context of an organization, culture influences and is influenced by infrastructure, strategy, and the organization’s mission, vision, objectives, and goals. Malhotra [26] emphasizes the critical role of a healthy corporate culture in the success of KM. KM is a critical organizational process that aims to create, share, and apply knowledge to achieve corporate objectives. Culture is pivotal in KM as it shapes employees’ beliefs, values, and behaviors related to knowledge sharing and collaboration.

Organizations must cultivate a culture and environment that align with KM objectives. Enhancing organizational culture should be a primary focus in strategic planning efforts [27]. Innovation and knowledge creation processes are deeply rooted in society and intricately tied to its culture. Culture significantly influences the methodologies, philosophies, and individuals within organizations. However, cultural variations can obstruct the effective transfer of knowledge [28].

By harnessing KM, competing and cooperating companies can effectively navigate cultural differences and establish fruitful business relationships with individuals from diverse countries. Achieving this objective entails understanding the intricate interplay between KM and culture and recognizing the inherent value each brings to the table [29].

To successfully implement KM processes, organizations must consider adopting a new cultural model or adapting their existing culture to foster sharing and collaboration. However, it is crucial to ensure that this cultural change is seen as an enhancement to employees’ professional and personal lives rather than an imposition. Developing a knowledge-sharing culture primarily relies on establishing a solid foundation of trust among individuals. KM-enabling culture is a trusting knowledge culture that actively encourages and rewards innovation, learning, experimentation, critical analysis, and reflection [30]. Trust is vital in facilitating knowledge sharing among organization members.

3.2 Cultural intelligence (CQ)

Cultural intelligence (CQ) is a complex framework encompassing knowledge and understanding of effective interactions across diverse cultures [8]. The acronym for cultural intelligence (CQ), short for cultural quotient, encompasses four dimensions: “behavioral CQ , motivational CQ , cognitive CQ , and meta-cognitive CQ” [8]. Behavioral CQ pertains to the verbal and nonverbal behaviors employed to interact with colleagues in multicultural environments, focusing on actions rather than emotional or psychological factors. Motivational CQ reflects the interest and drives to engage with and understand other cultures, encompassing intrinsic and extrinsic motivation. Cognitive CQ encompasses systematic knowledge of practices and norms in different cultures, which can be acquired through education or practice. Lastly, meta-cognitive CQ involves advanced thinking skills [31] that enable abstract cognitive strategies in diverse cultural settings [32].

CQ focuses on developing diverse skills applicable to various cultural contexts rather than solely acquiring knowledge about a single culture [33]. CI plays a crucial role in KM, with a positive association between CI and KM processes [34]. Meta-cognitive CI helps establish cultural commonalities, while cognitive CI enhances understanding of the international environment. Motivational CI promotes enjoyment during cross-cultural interactions and facilitates knowledge sharing, while behavioral CI enables effective cross-cultural communication and knowledge acquisition [35, 36].

Several studies have confirmed the positive impact of CI on knowledge sharing and standard and reverse knowledge transfer [37, 38]. Additionally, CI helps mitigate the negative effects of language barring on knowledge obscuring and collecting, leading to improved knowledge practices [39].

4. IBM

IBM, short for “International Business Machines,” is a globally recognized American multinational information technology corporation based in Armonk, New York. With over 175 countries, IBM has established itself as a prominent figure in the information technology industry for over a century. In recent years, the company has emerged as a global leader in cloud computing, data analytics, and artificial intelligence (AI) [40]. Presently, IBM places great importance on the ability of AI to deliver tangible value through collaboration with human interaction. This philosophy underpins developing an AI-enriched knowledge management system (KMS) designed explicitly for market and competitive intelligence. This system serves as a tool that empowers business professionals across the organization to make informed decisions based on available research assets. It is worth noting that this system is not intended to replace human expertise but rather to complement and enhance human capabilities.

IBM embarked on its knowledge management (KM) journey in the early 1990s and introduced its initial KM initiative, Asset Management, from the Business Unit Perspective, in 1994 [41]. The main purpose of this initiative was to create a repository of knowledge and work-related information contributed by colleagues. This knowledge base facilitated the reuse of assets and intellectual capital, enabling IBM to deliver client solutions with improved quality and efficiency. In 2000, the company established its KM Center of Excellence, which provides guidance and support to IBM employees regarding effective knowledge management practices. Additionally, IBM has developed various KM tools and products, such as Lotus Notes, IBM Connections, and IBM Watson. IBM encompasses a range of KM initiatives, including social learning through the internal sharing and collaboration tool Yammer and diverse communities of practice and knowledge repositories. IBM’s efforts in KM have garnered recognition from industry experts, with KMWorld honoring IBM as the “Knowledge Management Leader of the Year” in 2002 [41].

IBM has long recognized the significance of KM in driving organizational success. Operating in culturally diverse settings worldwide, IBM faces considerable challenges in effectively managing knowledge across borders. Acknowledging the pivotal role of culture in KM, IBM has fostered a knowledge-sharing and collaborative culture that is key to the company’s success. This culture of knowledge sharing and collaboration has contributed to several business benefits for IBM, including improved customer satisfaction, increased employee productivity, reduced costs, enhanced decision-making, and increased innovation [42].

IBM has implemented various strategies to cultivate a knowledge-sharing and collaboration culture. The company upholds an organizational culture of “THINK,” which emphasizes thinking and creating solutions. IBM’s cognitive quotient (CQ) measures the company’s ability to acquire, process, and apply knowledge. To overcome cultural barriers and promote knowledge sharing, IBM has established global communities of practice that bring together employees from diverse regions and backgrounds. These communities are platforms for sharing best practices, exchanging insights, and collaborating on projects [42]. By facilitating cross-cultural knowledge exchange, IBM encourages the development of innovative ideas and solutions that cater to diverse market needs.

Furthermore, IBM leverages technology to facilitate knowledge management across its global operations. Collaborative platforms and digital tools enable employees from different cultural backgrounds to access and share information easily, irrespective of geographical boundaries [42]. This technology-driven approach streamlines the flow of knowledge and fosters collaboration and collective learning within the organization.

Additionally, IBM has implemented training programs and initiatives to raise awareness about cultural differences and their impact on knowledge management. With a strong knowledge-sharing and collaboration culture and substantial investments in KM initiatives, IBM maintains a high CQ. The company’s continuous approach to measuring CQ involves data collection, analysis, and action to improve [43]. This approach has helped IBM maintain its leadership position in the IT industry. By promoting cultural sensitivity and understanding, IBM equips its employees with the skills necessary to navigate diverse cultural contexts and effectively collaborate with colleagues across the globe.

5. Unilever

Unilever, a global consumer goods company established in 1930, has a rich history of innovation and has played a leading role in developing various product categories, such as detergents, shampoos, and foods. Unilever, a global corporation with operations spanning over 190 countries, boasts a diverse workforce comprising employees from more than 100 nations. The company fosters a culture of diversity, inclusion, and respect, actively encouraging employees to share their ideas and perspectives. Recognizing the significance of cultural Intelligence (CQ) in a globalized environment, Unilever prioritizes the development of this essential skill among its employees.

Unilever’s leadership team plays a pivotal role in promoting the culture of CQ. Their commitment to cultivating cultural intelligence cascades throughout the organization, which reinforces its importance and influences employees at all levels. Unilever’s endeavors to promote CQ have earned recognition from various organizations. In 2019, Unilever was recognized as one of the top 15 companies for diversity and as a leading Inclusion Index company with inclusive culture as an integral part of growing a sustainable organization [44]. The Human Rights Campaign also acknowledged Unilever as one of the best places to work for LGBTQ employees in 2017 [45]. Unilever’s dedication to fostering CQ aligns with its strategy for success in the global marketplace. By cultivating a culture that embraces CQ , Unilever can attract and retain top talent, cultivate strong relationships with customers and partners worldwide, and effectively drive innovation. By prioritizing KM and CQ , Unilever is forging an agile and adaptable organizational culture that is better positioned to thrive in the global marketplace.

Unilever’s approach to KM is grounded in the belief that knowledge is a valuable asset that can enhance the company’s performance, while curiosity is seen as a core value. To effectively capture, share, and utilize knowledge, Unilever has implemented several initiatives, including:

1. A knowledge-sharing portal: This platform enables employees to access and exchange information, fostering a collaborative environment.

2. Communities of practice: Unilever facilitates the formation of communities where employees with shared interests can come together to share insights, experiences, and best practices; for example, within the culinary Category, and through effective knowledge-leveraging strategies, Unilever has made documentation, handbooks, and recognized professionals available, reducing time and improving efficiency in designing, planning, and commissioning new construction projects. Additionally, Unilever has adopted a common flavor language to facilitate seamless communication across regions, cultures, backgrounds, and experiences [46].

3. Mentoring program: Unilever’s mentoring initiative pairs less experienced employees with seasoned colleagues, providing an avenue for knowledge transfer and skills development.

Unilever’s organizational culture is characterized by open communication and collaboration, which nurture an environment conducive to knowledge sharing. Additionally, the company emphasizes training and development programs, enabling employees to expand their knowledge and enhance their skills.

Cultural intelligence (CQ), the ability to understand and adapt to different cultures, is a critical competency for employees working in multinational organizations like Unilever. To cultivate CQ among its workforce, Unilever employs various strategies, including:

1. Training and development programs: Unilever offers comprehensive training initiatives to enhance employees’ cultural understanding and sensitivity.

2. Cross-cultural assignments: Encouraging employees to work in diverse cultural contexts helps broaden their perspectives and develop their CQ.

3. Exposure to different cultures: Unilever promotes travel and exposure to different parts of the world, enabling employees to gain firsthand experience and understanding of diverse cultural practices.

CQ equips employees with several benefits, including:

Effective communication: CQ enables individuals to communicate more proficiently with people from diverse cultural backgrounds.

Relationship building: CQ facilitates positive relationships with individuals from different cultures, fostering collaboration and teamwork.

Cross-cultural collaboration: Employees with high CQ can work effectively in cross-cultural teams, leveraging the diversity of perspectives and experiences to drive innovation and problem-solving.

Unilever is committed to cultivating a culture of CQ within the organization. The company invests in comprehensive training and development programs to develop employees’ CQ and encourages cross-cultural assignments and international travel opportunities.

6. Insights and best practices

Organizations are intricate and dynamic systems that constantly evolve. They must navigate various elements such as profitability, culture, politics, social networks, communities, individuals, values, ethics, and goals within their environment. Knowledge databases become susceptible to rapid decay when sharing embedded knowledge is not ingrained within a specific culture [47].

Both IBM and Unilever share similarities in harnessing the power of culture and CQ within KM. To begin with, both organizations acknowledged the value of cultural diversity in their workforce, actively seeking talent from various backgrounds and promoting inclusivity. Next, they invested in CQ training programs to equip their employees with the necessary skills to navigate and adapt to diverse cultural contexts. Lastly, both companies instigated robust KMS systems and platforms to facilitate collaboration, knowledge sharing, and innovation.

Despite these similarities, there are notable differences between the two cases. As a technology company, IBM greatly emphasizes leveraging digital tools and platforms for KM. They developed AI-enriched systems for market and competitive intelligence, complementing human expertise. On the other hand, as a consumer goods company, Unilever focused on aligning its organizational culture with KM goals and driving innovation through curiosity and openness. They emphasized forming communities of practice and adopting common language and practices to facilitate knowledge sharing.

To harness the power of culture and CQ within KM, organizations can follow a series of best practices: embrace cultural diversity and inclusivity; invest in CQ training; leverage technology and AI; establish communities of practice; promote curiosity and openness; encourage cross-cultural assignments and exposure; invest in comprehensive training and development programs.

These practices collectively will drive innovation, collaboration, and organizational success.

7. Conclusions

The chapter unfolds structured, beginning with an introduction that sets the stage for subsequent discussions. This is followed by an in-depth examination of knowledge management, encompassing the knowledge management process and its critical success factors. Part 2 of the chapter provides an overview of culture, including its relevance to knowledge management culture and the significance of cultural intelligence [CQ] within the realm of knowledge management.

Sections 4 and 5 focus on the practical application of knowledge management, exemplified through the strategies employed by IBM and Unilever. Furthermore, these sections shed light on the pivotal role played by culture and cultural intelligence in the success of these organizations.

Drawing from these insights, the chapter closes by highlighting the implications and presenting best practices for leveraging culture and cultural intelligence in the context of knowledge management. Furthermore, the chapter is supported by a robust reference section, ensuring interested readers can delve deeper into the subject matter.

Conflict of interest

The authors declare no conflict of interest.

Appendices and nomenclature

AI	Artificial intelligence—a broad term that suggests smart actions performed by a computer without requiring explicit human programming.
CQ	The acronym for cultural intelligence (CQ), short for cultural quotient—a complex framework encompassing knowledge and understanding of effective interactions across diverse cultures.
IT	Information technology—a set of tools that help work with information and perform tasks related to information processing.
KM	Knowledge management—creating, storing, arranging, retrieving, and distributing an organization’s knowledge.
KMS	Knowledge management system—refers to using modern information technologies to systematize, enhance, and expedite intra- and inter-firm knowledge management.