Role of codification and personalization in organizational learning, innovation and performance: A conceptual framework and research propositions

Abstract

This paper first provides a literature review that summarizes the inter-relationships among knowledge management (KM), organizational learning (OL), organization innovation (INNO) and organizational performance (OP) and a conceptual framework is then proposed to improve the OP through appropriate KM strategies. Two widely-adopted KM strategies -codification and personalization- are examined. Codification is defined as the extraction and storage of explicit knowledge from employees while personalization refers to the activities, like communities-of-practice or storytelling, which facilitate the knowledge transfer and exchange in organizations. Several studies emphasize that organizations should adopt one of them predominantly, in a ratio of 80 to 20 - i.e. 80% for personalization while 20% for codification or vice versa. In contrast, some researchers advocate that organizations should strike a balance between two strategies. The prioritization or balance between codification and personalization remains questionable. Moreover, KM strategies are proven to influence the OP directly and indirectly through INNO in many studies. In addition, one recent study points out that OL plays the mediator role between KM and INNO. However, there have been limited studies to address the relationship between codification/personalization and OL. Further investigation is needed. To develop the conceptual framework in this paper, diverse literature on codification, personalization, OL, INNO and OP were reviewed. As mentioned, the key elements in KM strategies are codification and personalization. Commitment to learning, open-mindedness and experimentation and shared vision are the major components of OL. INNO is further classified into four sub-categories: Administrative, technical, product and process innovation. OP is measured in financial performance, customer intimacy, learning and growth and internal operation. This proposed framework seeks to enhance the understanding of different processes mediating KM strategies and OP. Understanding the roles of OL and INNO, senior management can gain the insights in prioritizing/balancing between different KM strategies and in turn improving OP.