International Journal of Management Academy (2013), 1 (1): 58-66 Received: February 2013 Accepted: August 2013

Copyright © 2013 by IJOMA

Original Article

The Correlation between Emotional intelligence and Knowledge Transformation (Case study: A research organization) Akbar Mirzagholia, Zahra Mirzagholib, Tavakol Ghobadic, Eghbal Hosseini Sadrd and Firoozeh Ghasemie MSc in Executive Management, Tehran, Iran. bMSc in Executive Management, Tehran, Iran. c MSc in Executive Management, Tehran, Iran. d Master of Science - Researcher in the field of human resource management, Tehran, Iran. eMSc in Marketing Management, Tehran, Iran. a

Abstract Organizational culture has a considerable impact on investment and acceptance of a new technology system such as knowledge management and especially it can be led to success or failure of knowledge management programs in the organization. According to scientific evidences, human characteristics are effective on knowledge management and the process of knowledge management by people contains their personal weaknesses and strengths. This survey studied the relationship between organizational culture and knowledge transformation and the role of emotional intelligence as one of the important personal characteristics. Having interviewed with managers and employees of three research organizations, it was estimated that they had adhocratic culture. Tool of data collection was a questionnaire with thirty-three questions and statistical sample size was equal to one-hundred five employees. Reliability coefficient of the questionnaire was obtained using cronbach alpha coefficient and face validity and content validity were confirmed by experts. Dimensions of emotional intelligence were measured based on five dimensions represented by Goleman (self-awareness, self-management, self-motivation, empathy and social skill). Dimensions of knowledge management cycle were measured according to dimensions of Nonaka and Takuchiʼs model and four aspects of socialization, externalization, combination and internalization. Having studied the impact of adhocratic organizational culture on dimensions of knowledge transformation, it was confirmed socialization and internalization have a suitable status. Data analysis reveals individualsʼ ability in different dimensions of knowledge transformation process is related to aspects of emotional intelligence. For instance, individualsʼ ability in socialization (one aspect of knowledge transformation process) has a positive and significant relationship with individualsʼ status in social skill. Keywords: adhocratic culture, knowledge management, Nonaka and Takuchiʼs fourdimensional model, emotional intelligence

Introduction Rapid development of information technology has changed the global economy * Corresponding author: E-mail: [email protected]

system to some extent which has increased the importance of paying attention to knowledge day by day (Chattopadhyay, 2007, Tseng 2009 & Ruiz-Mercader, Merono-Cerdan and Sabater-Sanchez, 2006). Through this, experts of management science believe knowledge is the ultimate substitute of production and money

Studying the Relationship between Emotional intelligence

emotional intelligence, motivation and volition play a special role in this regard (Zavareghi, 2008). Accordingly, Wilson says no one except the knowledge owner is able to manage knowledge accurately and appropriately (Zavareghi 2008, Wilson, 2002). McKeran, too, claims the role and impact of human factor has been ignored in knowledge management and he insists that knowledge creation is a personal activity. For this reason it contains weaknesses and strengths arising from human performance (Trentin, McKeran, 2008). Given to the above issues, it is clear that perceiving the interaction manner of organizational culture, knowledge management and emotional intelligence and obtaining a proportion among these three factors are necessary for success of effective knowledge management programs. Therefore, the present survey studied impact of adhocratic culture on knowledge transformation dimensions and the relationship among aspects of emotional intelligence and knowledge transformation dimensions.

capital (Toffler, 1990). Peter Druker in 2001 announced knowledge can replace machineries, equipments, capital, raw material and human force and it can play a role as the most important driving factor in industry (Drucker, 2010). These changes cause knowledge management and its procedures to be regarded not as a benefit but as a necessity (Seyyed Javadin, 2012). Knowledge management could be considered as knowledge creation, transfer, sharing and maintenance so that it can be used as an effective method in the organization (Hoffman James, Hoelscher Mark and Sherif Karma, 2005). Organizational culture training with regard to knowledge creation and knowledge sharing is a significant point for knowledge management success (DeTiene and Jackson 2001, Ford and Chan 2003 & Ooi, Teh and Chong, 2009). It is in a way that organizational culture has been mentioned as a highly important factor in acceptance of modern technologies system such as knowledge management (Hong Nga, 2005). This is while if an organization wants to train invisible culture of information sharing, it can be successful in knowledge management (Zhou, and Fink, 2003). Generally, organizational culture plays an important and special role in knowledge management (Fahey and Prusak 1998 & Gold, Malhotra and Segars, 2001) so that it has been mentioned as the most important and effective factor on knowledge management (Janz and Prasamphanich, 2003). Although numerous researches show organizational culture constitutes a major part of knowledge management success (Fliaster 2004), few researches have been conducted about the impact of this culture on knowledge transformation. Therefore, one of the purposes of this survey was to study the status of four dimensions of knowledge transformation in adhocratic culture. On the other side, it is generally agreed that knowledge is a personal reality and exists in the mind of the knowledge owner (Apshvalka and Wendorff, 2005). To put it differently, the individualʼs knowledge is mostly in his/her mind and is referred to as memory and physical place of knowledge. However, knowledge is intangible and nonphysical, thus mental characteristics,

Literature review Organizational culture Robins defines organizational culture as a “system of common sense that members have regarding their organization and this feature distinguishes two organizations” (Robins, 1999). Some experts believe organizational culture is like a powerful normative and social glue that has the capability of creating integration among various groups (Meyerson and Martin, 1987). In other words, the term organizational culture illustrates general characteristics of an organization which include mental and structural elements and are effective on behavior and understanding of employees (Rezaee Dolatabadi, et al., 2010). Quinn (1999) presented four types of organizational culture using two dimensions: one is flexibility against control and another shows control orientation inside and outside of the organization (Cameron & Quinn, 1999). Emotional intelligence Experts have presented different definitions for 59

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Table 1. Dimension index Emotional awareness: recognizing or understanding one's emotions or their effects Self-awareness

Proper self-evaluation: recognizing or understanding weaknesses and strengths and the existing limitations Self-assurance: feeling of aptitude, worthiness and capability Self-control: preventing emotional disorders and the existing tensions

Self-management

Dutifulness: accepting responsibility against personal performance Reliability: preserving honesty and truthfulness indexes Adaptation: flexibility in accepting change and controlling it Growth orientation: trying for improvement or achieving superior standards

Self-motivation

Commitment: harmonization with purposes of the group or organization Initiation: readiness to exploit the opportunities Optimism: perseverance in achieving purposes instead of observing the obstacles Understanding others: recognizing others' emotions and viewpoint and its impact on decisions

Empathy

Service orientation: prediction, identification and satisfaction of others' needs Guiding variety: development of opportunities by applying people of various cultures and races influence: using influential techniques to convince others Communication: proper listening and sending acceptable messages

Social skill

Conflict management: conversation and elimination of oppositions Leadership: boosting morale and guiding the group members Cooperation: team work in order to achieve common purposes

Goleman (31)

emotional intelligence given to its characteristics and functions. Doctor Peter Salovy and John Mayer believe the term emotional intelligence is a form of social intelligence that contains the ability to control oneʼs emotions and feelings and that of others and the ability to distinguish among feelings (Kamalian and Fazel, 2012). Baron considers emotional intelligence as the individualʼs ability in facing with environmental challenges which can predict his/her achievements in life (Khalili Shojaee and Moshabaki, 2009). Daniel Goleman is a scholar whose name has been entangled with emotional intelligence. He wrote a book entitled emotional intelligence in 1995 in which he presented interesting information about human brain, emotions and behavior (Momeni, 2006). He believes emotional intelligence is a skill through which individuals can control their mentalities through self-awareness; improve them through self-management; perceive their effect through empathy and behave through communication management so that enhance

their mentality and that of others (Duster and Khaef Elahi, 2004). A more detailed explanation of this model is presented in table 1. Goleman model and the related questionnaire were used in this survey given to its closeness with management topics and opinions of experts. Goleman believes three first aspects of emotional intelligence are related to selfmanagement skills and two aspects of empathy and social skills are related to the art of making relation with others (Aghayar and Sharifi Daramadi, 2008). Knowledge transformation Nonaka and Takouchi model is one of the proposed models and they believe there are two types of knowledge in organizations: implicit knowledge and explicit knowledge; though intuitions, values, perceptions, insights and metaphors are forgotten in most organizations (Nonaka and Takeuchi 1995). They stated in this model that knowledge transformation is a helical process in which these two types of knowledge are transformed 60

Studying the Relationship between Emotional intelligence

into each other. Four major states of knowledge transformation are as below: 1- Socialization: this process includes transformation of implicit knowledge into implicit knowledge that is established through making close relation among the individuals and as a result implicit knowledge is enriched (Alvani and Dehbeigi, 2008). It is necessary to provide common culture and the ability to perform tasks in group form in order to conduct socialization effectively (Newman & conard, 1999). In another definition, the knowledge that is created through socialization is called empathy knowledge (Davenport 1998). 1- Externalization: transformation of implicit knowledge into explicit knowledge is called externalization that requires statement of implicit knowledge in an understandable manner for others and causes to transform oral knowledge into written knowledge for all people. Thus the obtained new knowledge is useable for all. In other words, in this aspect the knowledge in our mind which could not be presented and perceived collectively is transformed as a transformable knowledge for all (Jafari Moghadam, 2005). Internalization: this state includes transformation of explicit knowledge into implicit knowledge that can be conducted through action learning. This step is led to creation of new implicit knowledge through acquiring the new implicit knowledge form the current explicit knowledge (Afraze, 2006). 2- Combination: it is transformation of dispersed explicit knowledge into integrated implicit knowledge that causes to move from individual explicit knowledge towards group explicit knowledge. It occurs when transformation is performed between explicit knowledge and implicit knowledge (Afraze, 2006).

culture in the related organizations and those with adhocratic culture were selected. Likert five-option scale was applied for questions related to emotional intelligence and knowledge transformation. Validity of the questionnaire was confirmed through an opinion poll from experts and its reliability was obtained equal to 0.79 that was acceptable. Subjects were selected based on common knowledge characteristic and it was tried to use individuals with academic education in the two organizations1. Deputies or managers of organizations constitute one part of participants and another part included human resources managers and experts who were active in the field of knowledge management and research and development sector. Data was collected during the summer and spring 2012. Since this survey studied knowledge management in organizations with adhocratic culture, managers or deputies of these organizations that were believed to have adhocratic culture were first interviewed. It was concluded that two organizations had adhocratic culture. Then 105 questionnaires were distributed in order to study the relationship between emotional intelligence and knowledge transformation using correlation test. Similarly, status of four dimensions of knowledge transformation in adhocratic culture was compared through t-test. Knowledge transformation questionnaire Given that identifying the status of knowledge transformation in adhocratic culture was one of the purposes of this survey, the questionnaire related to this issue was exploited which had been applied in reliable articles (Tseng, 2010, Tseng, and et al., 2011). This questionnaire consisted of eight questions related to four dimensions of knowledge transformation and the options were arranged as “totally disagree, disagree, no idea, agree, totally agree”. Its reliability has been approved in many studies and has a good validity too (Tseng, 2010, Tseng, and et al., 2011). Correlation coefficient among dimensions of knowledge transformation was calculated equal to 0.432, 0.694, 0.586, 0.690, 0.549 and

Methodology In this survey both interview and questionnaire were used. The questionnaire had three sections and included demographic information, emotional intelligence questions and knowledge transformation questions. Also managers and experts of organizations were interviewed in order to determine the dominant

1 Given to some restrictions, it is avoided to mention name of these organizations.

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Table 2. Sociological status of respondents. Row

Index

Status

1

Gender

62% male, 38% female

2

Age

(37.9%) below 30 years, (32.6%) between 30-35 years old, (19.2%) between 35-40 years old and (10.3%) more than 40 years old

3

Education

(5.2%) associates degree, (49.3%) B.A, (39.9%) M.A and (5.6%) PhD

4

Occupation

(44.1%) experts, (29.6%) supervisors, (17.1%) deputies and (9%) managers

5

Work experience

(40.7%) less than five years, (27%) between 5-10 years, (17.4%) between 10-15 years, (14.9%) more than 15 years

0.507 respectively and internal consistency was equal to 0.829 based on alpha coefficient (Tseng, 2010). Internal reliability of the questionnaire in this test based on alpha coefficient was equal to 0.73, 0.79, 0.83 and 0.78 for socialization, externalization, combination and internalization aspects respectively. Also experts confirmed validity of the whole questionnaire.

respondents. According to the survey results, among 105 participants 44.1% were experts, 29.6% were supervisors, 17.1% were deputies and 9% were managers. Also 5.2% had associates degree, 49.3% had B.A, 39.9% had M.A and 5.6% had PhD. In terms of age, 37.9% were below 30 years, 32.6% were between 3035 years old, 19.2% were between 35-40 years old and 10.3% were more than 40 years old. Sixty two percent (62%) were male and 38% were female.

Emotional intelligence questionnaire This questionnaire was proposed by H. Wizings and was introduced as emotional intelligence in his book. It has 25 items which measure emotional intelligence of people. Each person can obtain a score between 25-125 and the higher score shows high emotional intelligence, score between 50-100 shows medium emotional intelligence and scores less than 50 show low emotional intelligence. According to this and the obtained results, 65% of respondents had medium emotional intelligence, 4% had low emotional intelligence and 31% had high emotional intelligence. Reliability of the questionnaire was equal to 0.83, 0.80, 0.74, 0.82 and 0.87 for selfawareness, self-management, self-motivation, empathy and social skill aspects.

Studying the impact of demographic factors on knowledge transformation and emotional intelligence According to results in Table 3, education and work experience have a significant impact on emotional intelligence and knowledge transformation so that a positive relationship was observed among education, knowledge transformation and emotional intelligence. It means whatever individuals have higher education, they are more successful in the process of knowledge transformation. Meanwhile, individualsʼ emotional intelligence score is increased by enhancement of education level. The same results were obtained about individualsʼ work experience. Whatever work experience is higher, capability of individuals in knowledge transformation and emotional intelligence is enhanced.

Data analysis Analysis of mental information Table 2 shows sociological status of

Table 3. Results of correlation test among demographic information, knowledge transformation and emotional intelligence. Occupation

Education

work experience

Age

Gender

Knowledge transformation

0.152

0.312**

0.358**

0.032

-0.146

Emotional intelligence

-0.112

0.248*

0.279*

0.043

0.118

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Studying the Relationship between Emotional intelligence

Table 4. Results of mean test . Effective factors Knowledge transformation

95% Confidence Interval of the Difference

Socialization

3.6117

4.7437

Externalization

3.0043

3.7991

Combination

2.4366

3.5423

Internalization

3.5589

4.3643

Sum of mean

3.6326

Studying the relationship between emotional intelligence and knowledge transformation Given to Table 5, it is observed that there is a positive corelatoional relation among “socialization” and four aspects of “selfawareness”, “self-management”, “empathy” and “soxial skill”. This relationship is confirmed given that the significance amount is equal to zero. Whatever individuals have more capability in these four aspects, their capability in “socialization” is increased. According to obtained results there is a positive and significant correlation between “sympathy” and “social skill” that the relation is stronger in “sympathy” dimension. Also combination aspect has a positive correlational relation with “self-miotivation”. Positive correlation of “internalization” with “self-management” and “self-motivation” is acceptable. Results of correlation test are illustrated in table 3.

It is noteworthy that obtained significance level confirms the above results. No relationship was observed among other demographic information, knowledge transformation and emotional intelligence. Studying the status of knowledge transformation dimensions in adhocratic culture According to the obtained results of mean test in Table 4, it is observed that mean of four dimensions of knowledge transformation is equal to 3.6326. This is while the third option in the questionnaire is regarded as neutral. But status of socialization and internalization aspects is in a way that the obtained mean for these two dimensions is in the range 3.5-4.5 with 95% probability which indicates these two aspects have a very suitable status in adhocratic culture. About the other two aspects, i.e. externalization and combination given to the obtained mean, although they are not in a suitable status but their mean is more than 3 and is acceptable to some extent. Also externalization has a more suitable status than combination. The results are illustrated in table 2.

Discussion McKeran and Crissy emphasized inattention to the role of human factor and stressed that knowledge creation is a human activity and

Table 5. Results of correlation test among emotional intelligence dimensions and knowledge transformation.

Socialization

Pearson correlation Sig (2. tailed) N

Self-awareness

self-management

self-miotivation

Empathy

Social skill

0.310* 0.023 105

0.301** 0.000 105

-0.119 0.329 105

0.283* 0.000 105

0.393** 0.000 105

Externalization

Pearson correlation Sig (2. tailed) N

0.119 0.000 105

-0.146 0.217 105

0.118 0.285 105

0.317** 0.034 105

0.272* 0.000 105

Combination

Pearson correlation Sig (2. tailed) N

0.036 0.804 105

0.063 0.652 105

0.295** 0.030 105

0.70 0.613 105

0.223 0.166 105

Internalization

Pearson correlation Sig (2. tailed) N

0.128 0.378 105

0.258 0.008 105

0.334 0.001 105

63

-0.073 0.601 105

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and “social skill” which have a direct relationship with individualsʼ ability to make relation with others is not strange. Two dimensions of “selfawareness” and “self-management” which refer recognizing and managing of feelings are resulted in successful relations with others and help socialization. “Externalization” is another dimension of knowledge transformation that illustrates implicit knowlsge is transformed into explicit knoewledge. As in externalization we should transfer our implicit knowlage in an underestandble manner and state it to others, thus it is related to the ability of making relation with others and convincing them. For this reason, it is possible to justify positive correlation of externalization with “empathy” and “social skill” that are related to the ability of making relation with others and convincing them. Combination and internalization are two other dimensions of knowledge transformation which have a positive and significant relationship with self-miotivation. Because self-miotivated individuals are always active, dynamic and interested in progress and utilize opportunities success of such people in the above two dimensions is not improbable.

contains all human weaknesses and strengths due to the existence of human factor (Trentin and McKeran, 2008). This is while if the organization has no suitable culture for knowledge sharing, knowledge management would be limited and difficult (Zavareghi, 2008). Having studied the impact of demograophic factors on knowledge transformation and emotional intelligence, it is concluded that whatever individuals have higher education they are more successful in knowledge transformation besides their higher emotional intelligence. Similary whatever they have more work experience, they are more successful in knowledge transformation. Given to the obtained results, lower mean of two dimensions of combination and externalization in adhocratic culture is perceptible than the other two dimensions, although the obtained score in all dimensions is more than 3. Since this score is neutral it can be interpreted that adhocratic culture is appropriate for all dimensions of knowledge transformation, though “socialization” and “iinternalization” in this kind of organizational culture have a very appropriate mean. As “socialization” is accomplished through close relationship among people at work emnvironment strength of this dimension in adhocratic culture is not strange, since having a dynamic and flexible environment are characteristics of adhocratic culture which help close relationship among people. On the other hand, internalization in this kind of organizational culture has an acceptable mean, because internalization occurs through experience and action learning while creativity and entrepreneurship of people are emphasized in adhocratic culture and provides freedom of action for those who are willing to take risk. Also mean of two dimensions of combination and externalization is more than 3 which shows they are not weak in adhocratic culture. About the relationship among emotional intelligence and knowledge transformation dimensions, the following can be referred. There is a positive correlation among “socialization” and four dimensions of “self-awareness”, “selfmanagement”, “empathy” and “social skill”. Since “socialization” is accomplished through close relationship among people positive correlation of this dimension with “empathy”

Conclusion Given to scientifc evidences regarding the relationship among emotional intelligence, knowledge transformation and organizational culture, no comprehensive research has already been conducted in this regard. Therefore, it was tried in this survey to study and compare status of four dimensions of knowledge transformation (socialization, internalization, externalization and combination) in adhocratic culture using statistical methods and mean and correlation tests. Also correlation among these four dimensions with emotional intelligence aspects (selfawareness, self-management, self-miotivation, empathy and social skill) and demographic information was obtained. Results reveal all dimensions of knowledge transformation have a suitable status in adhocratic culture, though status of “socialization” and “internalization” is better than the other two dimensions and have higher mean. Also some aspects of emotional intelligence affect individualsʼ capability in knowledge transformation significantly. Fututre 64

Studying the Relationship between Emotional intelligence

studies can study this issue in organizations with other organizational cultures and other variables such as knowledge management process or organizational performance can be studied beside knowledge transformation.

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