The Relationship between Social Capital and Organizational Knowledge Management, Human Resource Administration (Case Study in Urmia Justice)

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1 Vol. 102, No. 11; November 2013 NATIONALPARK-FORSCHUNG IN DER SCHWEIZ (Switzerland Research Park Journal) The Relationship between Social Capital and Organizational Knowledge, Human Resource Administration (Case Study in Urmia Justice) Fariba Rezapour Hesar1, Dr Masoud Ghahremani2, Dr Mehran Molavi3 1 Department of, Mahabad Branch, Islamic Azad University, Mahabad, Iran (Corresponding Author) 2 Department of, Mahabad Branch, Islamic Azad University, Mahabad, Iran 3 Department of, Mahabad Branch, Islamic Azad University, Mahabad, Iran Abstract: In this study we have examined the relationship between dimensions of social capital and knowledge management. Social capital accounted as a important issue to knowledge management. Social capital is a resource that is available from individual or business network. These sources include in formations, ideas, and tips and so on. The structure of organization for knowledge management includes essential prerequisites for implementing knowledge management in organization. Prerequisites include knowledge management structure for implementing knowledge management is essential. The structure of organizations for adaptation and implementing of knowledge management is an issue that organizations are less interested in them. For this reason, the use of these systems is faced with difficulties. The results show a significant relationship between social capital and knowledge management. The components of organizational structure all have significant and direct relationship with knowledge management that its value in all hypothesis equal to 0/000, which indicates a positive correlation between the variables. So the end result if study is that social capital plays as important role as its share in increasing knowledge management. Keywords: Social capital, knowledge management, Justice Staffs 1-Introduction In the information age, the main advantage lies in the knowledge capital. Knowledge is a fluid mix of experiences, values, contextual information, intelligence insight, Basic intuition and Bachelor systematic approaches that provide a framework to evaluate and offering experiences and new information (Lustri, 2007). In current advanced world, knowledge is rapidly becoming to a main competitive advantage of organizations. Progressive role of the knowledge, innovation and new technologies in creating strategic advantages and become important the knowledge resources in organization managing has led to the concept of knowledge management locate at the heart of the organization s strategic policies. Hence, 1528

2 having special attention to knowledge management seems essential and explains the role of knowledge management and its functions in organizations is the goal of the present study. Knowledge management considered as one of appropriate solutions to achieve effectiveness and efficiency in organizations. Hence, with the participation of different sectors in processes of innovation and knowledge management, could take effective steps in timely delivering of knowledge to researches and managers in sight of developing researches (Prosak & Danport, 1996; in translation of Abtahi and Salavati, 2006). Despite many studies on organizational learning, yet how different forms of knowledge developed through a process of interaction and communication between individuals is unclear (Alavi, 2001). For this we use the theory of social capital. Thereupon, it is very important to find a relationship between social capital and knowledge management as the organization s strategic supplier. Therefore, this study examines the relationship between these two intangible assets, in order to improve performance and create value. 2-Research explanation: The term of social capital was first used in the classic work of Jane Jacob (Death and life in American big cities), that in that work he explained that intensive social networks in older suburban areas of mixed urban, constitute a form of social capital. Social capital is closely related to organizational knowledge management (Alvani and Alireza Shirvani, 2004). Strategic Index (strategic variables) Social capital Table 1- Strategic indicators of social capital Purpose Index (Dimension) 1 Participation 2 Trust 3-Satisfaction Operational Index (Variable) Participation in Elections Participate in parades Political awareness Participate in Parties Participation in social institutions Participation in social networks Interpersonal trust Trust in social classes Trust in authorities Institutional trust family satisfaction Job satisfaction Social satisfaction Political satisfaction Adapted from: Strategic indicators, dimensions and cultural components, the Secretariat of the Supreme Council of the Cultural Revolution (2010), Third Edition Scholars don't know the physical, financial and monetary assets as the only assets in the life, but also offer new assets such as human capital and natural capital (natural resources) 1529

3 and recently introduced social capital, that each of which has a significant impact in the integrate development and economic growth and in modern economic literature, much has been paid. But meanwhile the human and social capitals has a particular conditions and characteristics (Saadat, 2007). Kashani and colleagues (1390) in their study for the effect of organizational culture on productivity, shows that social capital is significant for knowledge management purposes and could be understood as an intangible complementary and parallel assets such as human and intellectual capital. Also Fagihi and Feizi (1385) in their research on social capital as an new approach in the management of knowledge, on the efficient transfer of knowledge, concluded that the attraction capacity, learning and ability of integrity in organization learning has the highest positive relation with innovation process in knowledge transfer and organization learning processes are more important from social capital networks in the context of knowledge transfer.administrative system in any organization is considered as an integral part of the organization. This system is a handle for achieving the goals and objectives of the organization that in this regard, the general policies of the executive office were established. 3-Provisions 1 & 16 of overall administrative policies: - Provision 1: Institutionalize a corporate culture based on Islamic values and Human dignity and valuing to human and social capital - Provision 16: Knowledge based administrative system through the use of knowledge management principles and data integration relying on Islamic values (General Bureaucracy System Policies, 2010). Paldam (2000) as quoted by Lambert (2003) defined out-group capital as a bridge between different social groups (interaction of people with outside of the closed environment) that has positive effect on growth and social capital. Based on studies, the rate of religiosity, education, social status and individual s age were the most important factors affect social capital (Siahpoosh, 2008). The aim of this study, analysis of the social capital literature and its contribution to innovation performance, that thought a series of studies in the literature, analysis the origin concept of social capital and then offer explanation about the contribution of social capital in management and organizational studies. Moreover, social capital were studied as a facilitator of knowledge search and knowledge sharing activities and also considered the importance of investment in the innovation results and highlights the outcomes of social capital in two types of innovation (the original innovation versus incremental innovation). Finally, this paper analysis the structural dimension of social capital and its effects on innovation by focuses on the contribution of its two different form (distributes versus dense networks) and help to the social capital literature not only by discovering positive points, but also with its negative impediments. 4-Research importance Knowledge and information transfer among individuals and organizations at micro and macro level depends on people who facilitate and speed up this transfer. Therefore all factors that promote or hinder interpersonal communication could have effect on individual s information exchange, so the importance of communication based on trust and norms among individuals were emphasized in relation to development and application of 1530

4 knowledge. According to the stability of the institutional advantage of both issue that made for organizations and the most research in this field used in corporate and private organizations, so the necessity of this research made sensible in governmental and nonprofit corporate that the current research, study these two issues in Urmia Justice. In other hand, for a nature of Justice duties in regard of providing Justice, knowledge-centered, social accountability, the use of explicit and tacit knowledge, the importance and necessity of this research explained. 5-Research hypothesis: -Main hypotheses: There is a significant relationship between social capital and organizational knowledge management of human resources. -Sub-hypothesis: There is a significant relationship between the structural dimensions of social capital and organizational knowledge management of human resources There is a significant relationship between the cognitive dimensions of social capital and organizational knowledge management of human resources There is a significant relationship between the relational dimensions of social capital and organizational knowledge management of human resources -Research objectives In the contemporary world that has lighting pace of change in all fields and the nature of this transformation in line of evolution which lies on human nature, failing to manage these changes and less attention to social capital, condemned each community to death. And these changes create by human s dynamic force by training and motivation and optimal combination of material and spiritual resources. Given the importance and attention to social capital and planning to achieving, have an important role in organization status, so the objectives of this research as follows: 1 - Identify the relationship between social capital and knowledge management in studied organization 2 - Identify the inter-organizational components of social capital and knowledge management activities 3 Study the effect of inter-organizational social capital on knowledge management activities includes the acquisition of knowledge, knowledge record, knowledge creation, transfer and application of knowledge. -Research review Social capital in Iran is highly oscillatory, according to political, geographical and historical context of country. In some special political and historical circumstances, empathy and social capital shows a positive signal, but due to its incorrect management, has a descending trend. 1531

5 It turns out that Iran has a strong potential for social capital according to its religious and historical background. But due to lack of proper management and conduct of social capital in last century, there is not a proper use from this capital, and this has resulted in gradual loss of social capital (Saadat, 2007). 6-Materials and Methods In this study, the rate of change in one or more factors was studied by one or more other factors by achieving the correlation coefficient. Also, this research is an descriptive one, based on research classification according to the method of data collection (research project). 7-Survey results According to considered assumptions, for the studying the relationship between social capital and organizational knowledge management, the Pearson correlation and regression analysis test and structural equation model, and internal dimensions of social capital from Friedman test were used for prioritization and determining the distribution of Kolmogrov- Smirnov, respectively. In order to collect the required information in this study, the library and field research methods have been used. Thus, in order to collect the history and theoretical foundation, the methods based on library research by refer to documents, websites, databases and dissertations and etc, and field research method and collecting experts and professionals and clients were studied by the questionnaires regarding social capital within the organization and organizational knowledge management of human resources. In the current study, the Crinbach s alpha achieved by SPSS was used to calculation of reliability. By considering that, according to Nanly (1978), the minimum reliability coefficient that required for the questionnaire study is 0.7, noted that the achieved Cronbach s alpha coefficient is higher than this value. Descriptive statistics and inferential statistics were used to describe the data and study hypotheses analysis, respectively. Finally, in the order to perform clearer and more objective analysis and decision making whether there is a significant relationship between two variables, correlation coefficient were used. That the methods of Pearson correlation coefficient or Spearman s method were used based on whether there is a significant relationship between variables or no, respectively. 8-Data analysis Frequency and percentage distribution of respondents according to age groups as follows which 40% of the sample are individuals with the age of years, and the most frequency belongs to them, meanwhile the minimum frequency belongs to whom higher than 50 years (9%). The sample consisted of 95% men and 5% of women. 48% of the sample consist of whom with master s degree that the highest frequency dedicated to, however the minimum frequency is related to ones with Ph.D. (7%). As is evident, 39 percent of sample consists of individuals with work experience between 5-15 years that the highest frequency belongs to them. However the minimum frequency also for individuals who have lower than 5 years work experience (8%), and 34% of the studied sample consisted base managers and remaining 66% are middle ones. 1532

6 Data number Mean Standard deviation Normal parameters Kolmogorov-Smirnov statistic (Sig.) Table 2 - Results for normality test of variables Structural Cognitive relational dimension of dimension of dimensions of social capital social capital social capital Social capital Organizational knowledge management Based on results in table 2, as could be observed the significance level for all variables is greater than the level of study significance (α = 0.01), so will accept the normality of data assumption, and parametric methods and Pearson correlation will used to evaluate the hypothesis. Inferential analysis using Pearson s correlation coefficient: Test hypothesis: The main hypothesis of research: There is a significant relationship between social capital and organizational knowledge management of human resources. Table 3- correlation coefficient between two variables of Social Capital and Organizational Knowledge Enterprise Knowledge Social Capital Enterprise Knowledge Pearson Correlation ** Social Capital Pearson Correlation ** 1 **. Correlation is significant at the 0.01 level (2-tailed). 1533

7 According to the outputs of SPSS in table 3, we can see that the correlation value between two variables is 0.698, which indicates a relatively strong positive correlation. However, because of the lower significance level of current correlation (0.001) from coefficient of error (0.01), so null hypothesis will rejected and by 99% reliability, accept the research hypothesis. So conclude that there is a significant relationship between social capital and organizational knowledge management of human resources. First sub-hypothesis There is a significant relationship between the structural dimensions of social capital and organizational knowledge management of human resources Table 4- Correlation coefficient between two variables of structural dimension of social capital and Organizational Knowledge Enterprise structural Knowledge dimension of social capital Enterprise Knowledge structural dimension of social capital Pearson Correlation ** Pearson Correlation ** 1 **. Correlation is significant at the 0.01 level (2-tailed). According to the outputs of SPSS in table 4, we can see that the correlation value between two variables is 0.552, which indicates a positive correlation. However, because of the lower significance level of current correlation (0.001) from coefficient of error (0.01), so null hypothesis will rejected and by 99% reliability, accept the research hypothesis. So conclude that there is a significant relationship between structural dimension of social capital and organizational knowledge management of human resources. -Second sub-hypothesis There is a significant relationship between the cognitive dimensions of social capital and organizational knowledge management of human resources 1534

8 Table 5- Correlation coefficient between two variables of cognitive dimension of social capital and Organizational Knowledge Enterprise Knowledge cognitive dimension of social capital Pearson Correlation Enterprise Knowledge cognitive dimension of social capital ** Pearson Correlation ** 1 **. Correlation is significant at the 0.01 level (2-tailed). According to the outputs of SPSS in table 5, we can see that the correlation value between two variables is 0.503, which indicates a positive correlation. However, because of the lower significance level of current correlation (0.001) from coefficient of error (0.01), so null hypothesis will rejected and by 99% reliability, accept the research hypothesis. So conclude that there is a significant relationship between cognitive dimension of social capital and organizational knowledge management of human resources. -First sub-hypothesis There is a significant relationship between the relational dimensions of social capital and organizational knowledge management of human resources Table 6- Correlation coefficient between two variables of relational dimension of social capital and Organizational Knowledge Enterprise Knowledge Enterprise Knowledge Relational dimension of social capital Pearson Correlation ** Relational dimension of social capital Pearson Correlation ** 1 **. Correlation is significant at the 0.01 level (2-tailed). 1535

9 According to the outputs of SPSS in table 6, we can see that the correlation value between two variables is 0.741, which indicates a relatively strong positive correlation. However, because of the lower significance level of current correlation (0.001) from coefficient of error (0.01), so null hypothesis will rejected and by 99% reliability, accept the research hypothesis. So conclude that there is a significant relationship between relational dimension of social capital and organizational knowledge management of human resources. - Summary of test hypotheses results are given as follow Main result Accepted Accepted Accepted Accepted Table 7 summarizes of test hypotheses results Significance level Hypothesis There is a significant relationship between social capital and Significant organizational knowledge management of human resources. Significant Significant Significant There is a significant relationship between the structural dimensions of social capital and organizational knowledge management of human resources There is a significant relationship between the cognitive dimensions of social capital and organizational knowledge management of human resources There is a significant relationship between the relational dimensions of social capital and organizational knowledge management of human resources 9-Conclusion In the research with the title of Study the relationship between social capital and organizational knowledge management of human resource administration in Urmia Justice examines the relationship between social capital and organizational knowledge management of staffs. Based on the results, increase in cooperation, norms and values in an organization caused significant increased in knowledge management. Accordingly, Kim (2010) stated that social capital have beneficial effects on fundamental norms of organization and retrieval of information, and organizations must developed their perception for communication elements of social capital. Accordingly, Zhang et al (2009) in their research explain and development of social capital for the purpose of knowledge management has shown that social capital is significant for the purpose of knowledge management, and could be understood as a complementary and parallel with other intangible capitals such as human and intellectual capital. The results indicate that among the organizational barriers, lack of team-building and encourage in teamwork, prevent from creating social capital. A suitable and dynamic organization where the decision is based on social comments not on organization hierarchy and their rules supports of cooperation and collectivism, and could cause increase the social capital. Informal groups have an important role on creating social capital, and organizations should make efforts to established this groups to used their underlie capitals in regard of reduce the performance and managerial costs. 1536

10 References: 1. Abtahi, H. and Salavati, A. (2005). Knowledge management, Journal of management and development, No. 25, Pp: Alavi, Maryam; Dorothy E. Leidner Review: Knowledge management and knowledge management systems: conceptual and research issues. MIS Quarterly, Vol 25 (1): Alvani, M. and Shirvani, A. (2004). Social capital, core principle of development. Tadbir Magazine, No Amirkhni, T. (2008). Contemplating on the possibility of development if social anpital in the ligh of organizational justice. Journal of Public Administration, Vol, p Berggren, D. (2009). "The rational-legal framework and embeddedness in local social capital networks"; Journal of Enterprising Communities: People and Places in the Global Economy, Vol. 3, No Beugre, S. (2009). "Exploring the neural basis of fairness: A model of neuroorganizational justice"; Journal Organizational Behavior and Human Decision Processes Cloutier J., Lars V. (2008). "Procedural justice criteria in salary determination", Journal of Managerial Psychology, Vol. 23 No Faghihi, A. and Feizi, T. (2006). Social capital: a new approach to organizational knowledge management, Vol 19, No General Bureaucracy System Policies (2010) 10. Kashani, M. and Khanifer, H. (2011). The effect of organizational culture on productivity, thesis, Kim, S. (2010). "Factors contributing to rural consumers in shopping behavior effects of institutional environment and social capital"; The Current Issue and Full Text Archive of This Journal is Available, Vol. 28, No Lambert E. (2003). The impact of organizational justice on correctional stalf", Journal of criminal Justice, 31 (2). 13. Lee, H. J. (2001) A Stage Model of Organizational Knowledge : A Latent content Analysis. Expert systems with applications, 20: Lustri, D. (2007). Knowledge model: Practical Application Competency Development. The Learning vol 14 (2), Paldam M. (2009). Social capital and social policy; Arusha Conference, New Frontiers of Social Policy, December. 16. Rahman Seresh, H. (2008). Generalized use of social capital in the organization. Tehran, Proceedings of the fifth conference management. 17. Saadat, R. (2007). The estimation of social capital in Iran (using Fuzzy Method), Jahad Daneshgahi Site. 18. Seyyed Javadin, S. R. and Taheri Attar, G. (2008). Understanding how influence of organizational justice on various aspects of job and organizational satisfaction, Journal of Business, Vol 1, No Siahpoosh, A. (2008). Meta-analysis of social capital in Iran, Culture strategy. Vol 1, No. 3,

11 20. Strategic indicators, dimensions and cultural components, the Secretariat of the Supreme Council of the Cultural Revolution (2010), Third Edition 21. Zhang L., Ting N., Yongtai L.; "Matching organizational justice with employment modes"; Journal of Technology, in China, Vol. 4, No. 2,

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