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Advances in Environmental Biology Fattah Nazem and
Advances in Environmental Biology, 8(7) May 2014, Pages: 3341-3348
AENSI Journals
Advances in Environmental Biology
ISSN-1995-0756
EISSN-1998-1066
Journal home page: http://www.aensiweb.com/aeb.html
A Structural Equation Model of Knowledge Management for Empowerment
1
Fattah Nazem and 2Zahra Najafzadeh Ojghaz
1,2
Department of Education,College of Education and Counselling, Roudehen Branch, Islamic Azad University, Roudehen, Iran.
ARTICLE INFO
Article history:
Received 11 April 2014
Received in revised form 21 June 2014
Accepted 25 July 2014
Available online 20 September 2014
Keywords:
Knowledge
Management,
Empowerment, Universities
ABSTRACT
Objective: The purpose of the present study was to provide a structural equation model
of knowledge management for empowerment in universities. The population of the
research included all employees of Islamic Azad University (IAU) in Iran.
Background: 1906 employees were selected using stratified and cluster random
sampling method. The research instruments were two questionnaires which were
administered in 89 IAU branches and education centers: Spreitzer’s (1995)
empowerment questionnaire which consisted of 12 items with four underlying
constructs of meaning, competence, self-determination, and impact and Cronbach
Alpha of 0.84 ,and Sallis and Jones’s (2002) knowledge management questionnaire
which consisted of 42 items with ten underlying constructs of vision and mission,
strategy, organizational culture, intellectual capital, learning organization, leadership
and management, teamwork and learning communities, sharing knowledge, knowledge
creation and digital sophistication with Cronbach Alpha of 0.97. Results:The results of
path analysis using LISREL software indicated that dimensions of knowledge
management had a direct effect on empowerment with the indices of 0.53 .
Conclusion:The model also showed that the factor of learning organization in
knowledge management had the highest direct effect on the factor of meaning in
empowerment. It was also concluded that the proposed model showed full fit.
© 2014 AENSI Publisher All rights reserved.
To Cite This Article: Fattah Nazem, Zahra Najafzadeh Ojghaz., A Structural Equation Model of Knowledge Management for
Empowerment. Adv. Environ. Biol., 8(7), 3341-3348, 2014
INTRODUCTION
The higher education system has caused a great deal of changes in social, economic and political fields. In
addition, universities are social systems which have been known as the center of knowledge and information as
well as thinking bases for leading societies. In today’s complex, competitive world, employees empowerment is
considered as a competitive advantage for organizations. The features of the present-days organizations are
dynamicity, complexity, ambiguity, and anti-traditionalism. To overcome such an insecure, complex, and
dynamic condition, the only choice on the mangers' table is to empower the organization and employees by
gaining knowledge and skill which is rapidly out-dated. That is why having empowered and efficient workforce,
which is a vital asset for any organization, can make numerous benefits for the organizations, firms, and
economic enterprises. In the past two decades, empowerment has been an important topic of research as a new
paradigm in management [10]
Peters and Waterman's “In Search of Excellence” (1982) laid the foundations for the modern empowerment
movement [62], as organizations pursued advantage in an increasingly competitive global economy [59]
.Niehoff and Turnley (2000) equated empowerment as the process where authority and responsibility are passed
to individuals at lower levels of the organizational hierarchy who have the information and knowledge necessary
to work independent of managerial control. Also, Building on Thomas and Velthouse’s [59] ,model, Spreitzer
[54], defined psychological empowerment as a motivational construct manifested through four cognitions:
1. Meaning was defined by Thomas and Velthouse (1990, p. 668) as “the value of a work goal or purpose,
judged in relation to an individual’s own ideals or standards.” It refers to the fit between the task requirements
of a job and the employee’s own values, beliefs, and behaviors [8]. Low degrees of meaningfulness are believed
to result in feelings of apathy and detachment (May, 1969).
2. Competence is concerned with “an individual’s belief in his or her capacity to perform activities with
skill” [55]. In other words, it is the belief that one possesses the skills and abilities to perform a job well [25].
3. Self-determination is the feeling of having control over one’s work and focuses on the individual’s
sense of having a choice in initiating and regulating actions [13]. Impact is the belief that one has significant
influence over strategic, administrative, or operational outcomes at work [4].
Corresponding Author: Fattah Nazem, Department of Education,College of Education and Counselling, Roudehen Branch,
Islamic Azad University, Roudehen, Iran.
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Fattah Nazem and Zahra Najafzadeh Ojghaz, 2014
Advances in Environmental Biology, 8(7) May 2014, Pages: 3341-3348
Psychological empowerment refers to a set of psychological states that are necessary for individuals to feel
a sense of control in relation to their work role [56].
Organizations that have successfully implemented empowerment strategies have discovered improvements
in productivity, customer service, quality, absenteeism, and turnover [23] . Individual productivity has been
discovered to increase in organizations practicing empowerment [7] .When employees find their jobs more
meaningful, they have a more proactive perception of the organization and the organization's leadership. The
concept of employee empowerment has been integrated into the field of management and now forms a basic
assumption in many management techniques [62]. During the past two decades, employee empowerment has
been widely studied in different work groups or environments, such as faculty and administrators in colleges and
universities [44], nurses (Knol [36] .& Van Linge, 2009), hotel staff (Amenumey & Lockwood, 2008), life
insurance company staff (Thorlakson & Murray, 1996), public welfare caseworkers [48], accountants [57],
teachers (Dee, Henkin, & Duemer, 2003), and social workers [27].
In the recent climate of increasing global competition, there is no doubt about the value of knowledge and
learning in improving organizational competence [49]. An increasing number of firms realize that knowledge
management is a key resource for competetiveness, and a resource they can create and use to achieve greater
value from core competencies. In this sense, firms have become much more interested in stimulating
knowledge, which is considered as the greatest asset for their decision making and strategy formulation [32]. To
improve organizational performance and to compete successfully in global markets, organizations need to have
effective knowledge management. [11].
Darroch [12], defined knowledge management as “the process that creates or locates knowledge and
manages the sharing, dissemination, and use of knowledge within the organization” In their book entitled
“Knowledge management in education”, Sallis & Jones [51], offered a useful knowledge management selfassessment checklist with scoring elements such as
1. Vision and mission: It refers to having vision as a knowledge-based organization and sharing it with
the stakeholders and the mission as the knowledge creator and translating it into practical strategies.
2. Strategy: It refers to developing modeled scenarios and applying them in the management.
3. Organizational culture: It refers to the different dimensions of culture including the creating,
centralizing, sharing, and recognizing organizational culture as a key competence.
4. Intellectual capital: It includes recognizing the value of intellectual assets and codifying its tacit
knowledge.
5. Learning organization: Under learning organization, organization should create continuous learning,
define skills to create new knowledge, recognize EQ and its influences encourage creative thinking, and
promote action learning both for individuals and teams.
6. Leadership and management: In leadership and management, organizations are required to have seniormanagement support, have knowledge leaders and managers with appropriate leadership styles, and develop
strategies for promoting middle-managers.
7. Teamwork and learning communities: Under teamwork and learning communities, organization should
encourage learning communities and knowledge teams, establish trust, and recognize the need for intellectual
autonomy.
8. Sharing knowledge: It signifies that organizations ought to collect, record major organization events,
and share new information, and understand competitors’ knowledge management system.
9. Knowledge creation: It requires the organizations to recognize new knowledge, those known as
experts, and turn it into service.
10. Digital sophistication for the organization: In terms of digital sophistication, organizations are to
develop technologies among its employees by clear technological architecture, enhancing its knowledge, and
devising virtual collaborative systems and/or communities(pp.125-129).
Various studies have reported the consequences of effective knowledge management. For example, several
studies found that good knowledge management practices could enhance organizational performance [40], and
that knowledge management could create competitive advantages [3]. Other studies also indicated that effective
application of knowledge management strategies has a significant relationship with variables such as innovation
[34], change process [6] ,and productivity and effectiveness [63].
The results of a study by Khanalizadeh [33], indicated that there is a strong and positive relationship
between organizational learning and empowerment. Shiralipour (2010) also revealed the relationship between
organizational learning and the empowerment of the Tarbiat Modares University employees.
In a study by Chen and Xu (2010), the mechanism of knowledge management affecting the core
competence of industrial clusters was studied. The findings led to the construction of a knowledge management
system that helps to enhance the core competence of industrial clusters. Competence is one of the dimensions of
empowerment in the present research.
The results of a study by Bailey [5], indicated that there is a strong and positive relationship between
organizational culture and macro empowerment. In Joo and Shim's [29] ,study, the moderating effect of
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Fattah Nazem and Zahra Najafzadeh Ojghaz, 2014
Advances in Environmental Biology, 8(7) May 2014, Pages: 3341-3348
organizational learning culture on the relationship between psychological empowerment and organizational
commitment was found to be significant. Organizational culture is one of the dimensions of knowledge
management in the present research.
Wiggins' [61], findings suggested that when compared to traditional education, popular education can help
participants develop a deeper sense of empowerment and community and more multi-faceted skills and
understandings, with no accompanying sacrifice in the acquisition of knowledge. The results of the study by
Albrecht and Andreetta [1] were discussed in terms of the importance of training and development initiatives
aimed at promoting empowering leadership, empowerment and engagement in health service contexts.
According to Zhang [64], social learning was one of the important mechanisms in empowerment, while
members' participation was an important process and background to elicit their sense of empowerment.One of
the dimensions of knowledge management in this study is learning organization.
Wei et al.(2010) found out that the relationship between transactional leadership and subordinates' creative
performance is moderated by team empowerment climate. A host of studies indicate that there is a significant
relationship between leadership and empowerment [46]; [45]; [16]; [50]; [15]; [9]; [21]; [19];and [42]
.Leadership and management is also another dimension of knowledge management in this study.
Human empowerment would activate a potential capacity to benefit from an everlasting reservoir of
capabilities. Empowerment is a modern and effective technique to enhance productivity in an organization
through benefitting the employees' capabilities. The purpose of the present study was to provide a structural
model for empowerment in universities based on knowledge management.
Materials:
Research questions:
1. What is the structural model of the empowerment based on knowledge management in universities?
2. Which variables have the highest effectiveness on empowerment?
3. How predictive is knowledge management on promoting empowerment?
4. How much is the goodness of fit in this study?
The research methods which were used in this study are: library research to access the theoretical
framework and the related literature; survey method to collect, classify, describe, and analyze the data. The
population under investigation in this study consists of official staff working in 420 branches and educational
centers in 14 zones of Islamic Azad University in Iran. In order to estimate the least volume of
z 2 2
n
d 2 formula was used. Regarding the minimum sample required for the staff’s group which was
sample,
estimated as 1906 people, the same number of questionnaires of knowledge management and empowerment
were administered to the staff in 89 branches and educational centers. In order to select the research sample, two
methods of stratified and cluster random sampling were used.
The research instruments were as follows: Spreitzer’s [55] ,empowerment questionnaire which consisted of
12 items with four underlying constructs of meaning, competence, self-determination, and impact and Cronbach
Alpha of 0.84 and Sallis and Jones’s [51] ,knowledge management questionnaire which consisted of 42 items
with ten underlying constructs of vision and mission, strategy, organizational culture, intellectual capital,
learning organization, leadership and management, teamwork and learning communities, sharing knowledge,
knowledge creation and digital sophistication with Cronbach Alpha of 0.97. The results of the study were
calculated through path analysis using LISREL software.
Results:
The data collected from the administration of the instruments were analyzed. These data included the
different indexes of central tendency, variability and the distribution of staff’s groups, the staffs’ scores obtained
from knowledge management and empowerment questionnaires and their related components. The distribution
of the staffs’ scores in the given variables had tendency toward normality.
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Fattah Nazem and Zahra Najafzadeh Ojghaz, 2014
Advances in Environmental Biology, 8(7) May 2014, Pages: 3341-3348
Fig. 1: Path analysis model for components of knowledge management and empowerment
As shown in Figure 1, the Lambda rate of external latent variable of knowledge management components
was 0.72 for leadership and management, 0.73 for teamwork and learning communities, 0.68 for sharing
knowledge,0.77 for knowledge creation, 0.68 for digital sophistication,0.70 for vision and mission, 0.81 for
strategy, 0.81 for organizational culture, 0.79 for intellectual capital, and 0.83 for learning organization whose
accumulation form the knowledge management variable with the effectiveness rate of 0.53. It means that 53%
of the variation in the dependant variable of empowerment is explained by a collection of these indices. The
variable of learning organization indicate the highest amount of internal consistency in the external latent
variable.
The Lambda rate of internal latent variable of empowerment components was 0.53 for self-determination,
0.58 for competence, 0.70 for meaning ,and 0.67 for impact whose accumulation form the empowerment
variable. The variable of meaning indicates the highest amount of internal consistency in the internal latent
variable.
Since the model’s goodness of fit index is 0.91, it can be stated that it has an acceptable fit. The calculated
index indicates the direct effect of knowledge management components on empowerment. Moreover, the model
shows that the highest direct effect is related to learning organization , the component of knowledge
management, on empowerment in meaning component. The following table presents the indices related to the
model’s fit:
Table 1: Model’s fit indices
Interpretation
High fit (equal to or more than 0.90)
High fit (more than 0.90)
High fit (more than 0.70)
High fit (equal to or less than 0.05)
High fit (more than 0.90)
Rate
0.91
0.92
0.72
0.45
0.91
Index
Lewis-Tucker (Non-normed fit index)
Bentler-Bonett’s (Normed fit index)
Hoelter
Root Mean Square Error (RMSE)
GFI
The five goodness of fit indices presented model’s fit and empirical data. Therefore, desirability adaptation
is provided for the designed model and empirical data and can approve it as an appropriate model for the
performance.
Discussion:
The results of path analysis method revealed that dimensions of knowledge management have positive
impact on empowerment. The findings of the present study, furthermore, indicated the influential role of
knowledge management on empowerment. In a study by Chen and Xu (2010), the mechanism of knowledge
management affecting the core competence of industrial clusters was studied. The findings led to the
3345
Fattah Nazem and Zahra Najafzadeh Ojghaz, 2014
Advances in Environmental Biology, 8(7) May 2014, Pages: 3341-3348
construction of a knowledge management system that helps to enhance the core competence of industrial
clusters. Competence is one of the dimensions of empowerment in the present research. Shiralipour [52] ,also
revealed the relationship between organizational learning and the empowerment of the Tarbiat Modares
University employees. A host of studies indicate that there is a significant relationship between leadership and
empowerment [61]; [46]; [45]; [16]; [50]; [15]; [9]; [21]; [19] and [42], organizational culture and
empowerment [5], organizational learning, training and empowerment [29;1]; and [64]. Leadership,
organizational culture, and organizational learning are also dimensions of knowledge management in this study.
This is somehow an indication of a significant relationship between knowledge management and empowerment.
Nowadays, the active presence of the organization in the scene of the competition and technology, and the
creation of new job opportunities and the need to be multi-skilled have made empowerment inevitable. Through
empowerment programs, work capacity is increased by delegation of authority, increased responsibility,
autonomy in decision-making, and self-sufficiency which would result in high productivity and effectiveness.
Outcomes of employee empowerment are: increased employee self-efficacy [10], the opportunity to learn and
develop at lower levels of organization[38], improved performance [38], increased organizational effectiveness
[30] ,increased employee involvement [38] ,motivation for task accomplishment [10], enhancement of the value
of work for individuals, increased job satisfaction, and improved work productivity and success [55]. An
empowered workforce is more likely to perform at higher levels [58]. Employee empowerment is the most
successful way to improve employee morale, motivation, and job satisfaction so much as the topic has attracted
a great deal of effort delving into its intricacies. Much of the existing research on the topic explores the
relationship of employee empowerment to individual fulfillment needs, such as job satisfaction (Ugboro &
Obeng, 2000). In contrast, disempowered employees can be costly, not only in terms of turnover but also in
terms of reduced job satisfaction and increased absenteeism [31] , Nowadays, the gap between the nations and
societies is the existence and non-existence of knowledge. That is, having knowledgeable human resources is
the major challenge. Human resource is considered the most important, expensive, and valuable capital. Human
is the only intelligent being which can coordinate different factors. Without efficient human resource, there is no
organizational objective come true. That is why human resources play an important role in the success and
failure of the organizations. The significance of the human resources has long been proved and has been the top
of agenda for those successful organizations. Drucker [17] ,has compared the staff in the recent two decades and
concluded that the twentieth century is the century for the productivity of human resource. Although the most
valuable asset of an organization used to be the tools, today, human resources are the playing this role. That is
why the organization managers are required to reflect and redesign new methods and models about their human
resources. In interaction with the environment, organizations are required to transform from a traditional
organization into a modern ones. Experts in management and organizational psychologists suggest employee
empowerment to be able to face the challenges. The Empowerment of Employees results in the empowerment of
the organization which can guarantee the organization in the face of changing world. Having the ability to
empower, any one in any position is able to make decision and manage himself.
In today’s knowledge economy, tangible assets are clearly transient as they rarely provide a distinct
competitive advantage [22]. Knowledge has become a crucial strategic resource in most organizations as it plays
a more important role than tangible assets. Companies are now competing on their ability to create and utilize
knowledge [18]. Moreover, Eftekharzadeh, [20], states that effective and efficient knowledge management is a
predictor for organizations remaining competitive over time. Since the success of an organization lies more in its
intellectual capabilities than its physical assets, the capacity to leverage knowledge is fast becoming a critical
advantage. Yet, determining the value of an organization is becoming increasingly complex.
Higher education is an “enterprise of human beings” [39], where technology and service delivery are
primarily driven by human resources [28], Thus, an innovative organizational climate that maximizes the
potential of its members may be a viable option for an enhanced work environment where employees feel
empowered to experiment with new ideas [53], and ultimately, may become important to the long-term survival
of colleges and universities in today’s increasingly competitive environment [28]. The resource-based view
suggests that the potential to transform it into skilled action provide firm with competitive advantage [18].
With regard to the findings of this study which confirms the relationship between knowledge management,
especially the learning organization factor, on the Islamic Azad University employee empowerment, the author
suggests that the employee empowerment be upgraded applying appropriate management mechanisms and
improving indices of knowledge management particularly the learning organization factor. Since human
resource is considered as the most important and valuable asset in an organization, empowering this valuable
asset can be regarded as a competitive advantage in the present complex world. Underlining the effective role of
higher education in the economic, social, political, and cultural development, this study can be carried out in
other universities all around the world so as to practically take giant steps in performing knowledge
management.
In other words, utilizing the results of the present study, other universities can foster their staff
empowerment through improving the indices of knowledge management (including vision and mission,
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Fattah Nazem and Zahra Najafzadeh Ojghaz, 2014
Advances in Environmental Biology, 8(7) May 2014, Pages: 3341-3348
strategy, organizational culture, intellectual capital, learning organization, leadership and management,
teamwork and learning communities, sharing knowledge, knowledge creation and digital sophistication),
especially the learning organization factor. The scientific methods adopted in this study can also be used for
other universities to present their staff empowerment model based on the knowledge management which can
lead to empowering the staffs in those universities.
ACKNOWLEDGEMENTS
This paper is extracted from a research project sponsored by the research department of the Islamic Azad
University, Roudehen Branch to whom I owe a debt of gratitude.
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