How Knowledge Management helped Knowledge Intensive Business Services in Surviving COVID-19 and Creating Resiliency for New Normal: A Case Study of a GRC Training Firm in Indonesia

Since early 2020, COVID-19 pandemic has attacked many business sectors in many countries. In Indonesia, the government reacts to this situation by issuing several regulations, one of which is the large-scale social restrictions (PSBB) regulation. This regulation affects many business sectors, including Knowledge Intensive Business Services (KIBS) sectors. KIBS sectors have been developing quickly, especially in developing countries like Indonesia. Knowledge plays a crucial part for KIBS firms as these firms depend heavily on their workers’ knowledge. In this study, Lembaga Pelatihan Kerja Mitra Kalyana Sejahtera (LPK MKS) is being used as the research object for conducting the research. LPK MKS is a Governance, Risk, and Compliance (GRC) training firm, which included as one of KIBS business sectors. This study uses case study methodology by focusing on obtaining deep understandings about the knowledge management practices in KIBS training firm. The author obtains all the necessary data through in-depth qualitative interviews and secondary data. From the collected and analysed data, LPK MKS has implemented all of the success factors for managing knowledge. While the implementation of leadership and ICT are more notable, the implementation in organisational infrastructure is still not ideal. Nonetheless, the overall implementations of knowledge management help the firm in surviving the COVID-19 pandemic era and creating resiliency to face the new normal condition.

ORGANISATIONAL CULTURE AND WORK–LIFE BALANCE AS FACILITATORS OF SERVICE INNOVATION: STUDY IN A TECHNOLOGY KNOWLEDGE-INTENSIVE BUSINESS SERVICES FIRM

This study aimed at analysing the relationship among organisational culture, work–life balance, and service innovation in a technology-based Knowledge-Intensive Business Services (t-KIBS) firm. This quantitative, survey-typed, and cross-sectional research was performed in a sample of 278 respondents. Data were analysed using structural equation modeling by partial least squares. Our results showed that the adhocracy culture is positively related to work–life balance and service innovation. The results also showed a positive effect of work–life balance in the development of service innovations. Contributions of this study are focused on the understanding of the direct and indirect effects of organisational culture on the service innovation and work–life balance fields in a highly competitive industry as the t-KIBS’. Due to the dynamism of this market, urgent execution deadlines for demanding projects cause high levels of employee stress, making work–life balance policies more necessary, as they emerge on the leadership and organisational culture and impact its innovation. Thus, it is recommended to create a long-term sustainable competitive advantage in companies and promote service innovation, that organisational culture should be treated in synchrony with the strategic corporate objectives and simultaneously with programs and incentives to promote the balance between employees’ professional and personal lives.

Productivity dispersion in the Italian knowledge-intensive business services (KIBS) industry: a multilevel analysis

PurposeThis paper aims to provide an analysis of the productivity evolution of a sample of 18,459 knowledge-intensive business services (KIBS) firms operating in Italy over the period 2012–2018. The interaction between productivity heterogeneity firm localization and firm sector of business are also analyzed.Design/methodology/approachThe empirical setting is based on data envelopment analysis (DEA) to measure the multifactor productivity index (MPI) and on the multilevel models to investigate if the source of productivity heterogeneity among the Italian KIBS are due to the geographic location and/or to the specific business sectors in which firms operate. Data have been gathered from the AIDA database, which contains financial data of all Italian firms.FindingsThe empirical results show that MPI heterogeneity in the Italian KIBS firms' is sensitive to the regional context in which firms operate to the specific KIBS sector and above all at the interactions arising between region and sector.Originality/valueThe paper contributes to identify the source of productivity dispersion in the Italian KIBS.

Organizational Innovation in Knowledge Intensive Business Services: The role of Networks, Culture and Resources for Innovation

Among the service sector firms, knowledge-intensive business services (KIBS) are highly innovative. Traditionally, innovation has looked from a product or process innovation point of view. However, companies may also innovate in terms of their administrative processes and organizational structures, and this is referred to as Organizational Innovation (OI). Organizations have network relationships with their Customers (NC), Suppliers (NS), Select Competitors (NCOM) and Investors (NI). These networks are important sources of knowledge, technology and resources. Furthermore, the Culture for Innovation (CI) and Resources for Innovation (RI) within a firm needs to be considered. The study evaluates the role of NC, NS, NCOM, NI, CI and RI on OI. A cross-sectional survey of middle- to senior-level executives in KIBS firms in India was carried out, and it was found that CI and NI have a positive effect on OI, while NC has a moderately positive effect on OI. A culture for innovation in KIBS firms stimulates innovation. Strategic investors are able to bring knowledge from the outside world and thus play an important role in OI. Similarly, client relationships may foster OI as administrative processes, and organizational structures need to be aligned to the needs of the clients.

The Impact of the Coronacrisis on KIBS Sector

Knowledge-Intensive Business Services (KIBS) are problem-solvers for other organizations. The coronacrisis affects KIBS directly, but also means that their clients are confronting new problems. How are KIBS addressing these two sets of challenges? This paper draws on material available in the trade and industry press, on official reports and statistics, and the early academic studies addressing these themes. We find that KIBS have been active (alongside other organizations) in providing a substantial range of services aimed at helping their clients (and others) deal with various contingencies thrown up by the crisis. Not least among these is the need to conform to shifting regulatory frameworks, and requirements for longer-term resilience. KIBS themselves have had to adapt their working practices considerably, to reduce face-to-face interaction with clients and within teams collaborating on projects. Adaptation is easier for those whose tasks that are relatively standardized and codified, and it remains to be seen how far a shift to such activities - and away from the traditional office-based venues of activity - is retained as firms recover from the crisis. KIBS are liable to play an important role in this recovery from the crisis, and policymakers can mobilize their services. Some KIBS are liable to be critical for rendering economies more resilient in the face of future pandemics and we argue that these firms are also important for confronting the mounting climate crisis.

Knowledge-intensive business services in time of crisis: the coronavirus pandemic

Purpose Knowledge-intensive business services (KIBS) firms focus on applying their expert knowledge to help solve the business problems of their clients: these clients confronted major new problems due to the COVID-19 pandemic and policy measures such as social distancing and travel restrictions, designed to reduce the rapid spread of the illness. Many KIBS were reliant upon extensive contact with clients, and within teams working on projects; they found their practices disrupted. This study aims to examine how KIBS are evolving to cope with both the sets of changes: those in their own operations, and those involving the emerging business problems of clients. Design/methodology/approach The main data sources are material contained in websites of a sample of leading firms in a range of KIBS sectors, and in media reports and other documentation of efforts to confront the pandemic. Findings The results indicate considerable efforts in KIBS to address emerging client problems, as well as to adapt their own practices. Their substantial role in confronting the pandemic and associated business difficulties has implications for future crises. KIBS are likely to be important players in shaping responses not only to future pandemics but also to the looming climate crisis. Originality/value The study demonstrates the growing role of KIBS and their “second knowledge infrastructure” in modern economies, exemplified by their role in the context of an emerging crisis.