The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia | 190
Structural Equation Modeling Organizational Culture, Internal Marketing and Knowledge Management in Private Hospital Company in Bengkulu
Muhartini Salim
1
, Praningrum
2
, Nurhasanah
3
1
Faculty of Economic and Business, University of Bengkulu muhartini_salimyahoo.co.id
2
Faculty of Economic and Business, University of Bengkulu ningrum-bklyahoo.co.id
3
Faculty of Economic and Business, University of Bengkulu
stikesbh03gmail.com ABSTRACT
Knowledge management is increasingly gaining popularity to be studied by scholar and researcher. Knowledge management is believed to be a key competitive advantage for many companies. Unfortunately, research on knowledge
management has not been done, especially in developing countries such as Indonesia. The aims of the study are to develop structural equation modeling the relationship between internal marketing,
organizational culture, and knowledge management. One hundred and fifty questionnaires were distributed and one hundred eleven were returned and analyzed. Structural equation model using AMOS 16.0 software employed to the
dataset. The result of this study identifies that organizational culture role as mediating variable between internal marketing and knowledge management. This study contribute that hospital company must be developing good
organizational culture in order to strengthen the role of internal marketing to develop knowledge management.
Keywords
:Organizational Culture, Internal Marketing, Knowledge Management
1. INTRODUCTION
Since the early 1990s, knowledge management have been increasingly recognized as a source of
competitive advantage for the firms. Drucker 1993 in his book Post Capitalist Society stated that the basic
economic resources is no longer capital, natural resources nor labor. It is and will be knowledge.
Thurow in Lee and Chen 2005 stated that the era of the 3rd wave of the industrial revolution had arrived,
and its scope included micro electronics, computers, information, specially manufactured materials, robots,
and biotechnology. In this era the main force of competitions between companies and people has
shifted from land, finance, and equipment etc. to the innovation, master, management, and application of
knowledge. The era of the knowledge economy has arrived, and this has encouraged the business world and
academic circles to give serious attention to the issue of knowledge management. Knowledge management is a
kind of operational strategy, and it assists companies in obtaining technology and competitive knowledge and
information that is related to the market. It also assists companies in innovating, circulating, transforming,
applying, storing, and maintaining or increasing the long-term
competitive abilities
of companies.
Knowledge is increasingly regarded as a survival tool in a dynamic and competitive environment Laudon
and Laudon, 2000. This is echoed by Nissen 2004, p. 186, who emphasizes that ‘‘efficient knowledge flow
is critical to enterprise performance’’ Haney p 2, 2003 cites, article from some of the
researchers who stated that the knowledge needs of an organization are shaped by the business context in
which that organization operates. In addition to the traditional
components of
business context
- competitors, customers, suppliers, and regulatory
environment - new factors are becoming increasingly visible. That these new components are in addition to
the traditional ones, rather than replacing them, suggests that the business context itself is becoming
more complex. Numerous authors in the literatures of management and strategy agree on four major areas in
which current changes are affecting business: 1, organizational structures; 2, workforce demographics;
3, employee roles and responsibilities; and 4, information technology. The knowledge resource needs
of an organization in order to respond quickly and effectively to this changing business environment are
becoming increasingly important. Darroch 2005 cites that knowledge management is
becoming increasingly important with the results of studies
that prove
that effective
knowledge management
contribute to:
competitive advantage,improve financial performance, innovation,
anticipated problems, enhance organizational learning, and superior use of information, and empirically prove
that the effect of knowledge management significantly on innovation and corporate performance.
Argote, et.al 2003 wrote that sussessful individual
performance depends on an individual’s ability, motivation and opportunities to perform, succesful
knowledge management also depends on ability,
The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia | 191
motivation and opportunity. Properties of knowledge management context could impact an individual’s
ability
to create, retain, or transfer knowledge. Or the context could provide people with the
motives
and incentives to participate in the knowledge management
process. Or the context could provide an individual with the
opportunity
to create, retain, or transfer can knowledge. Properties of the knowledge management
context can operate through more than one causal mechanism.
Heisig 2009, found, that four categories were constructed for considering context factors which are
critical for the success of knowledge management: 1 Human-oriented factors: culture
– people – leadership. 2} Organisation: process and structure. 3 Technology:
infrastructure and applications and 4 Management process: strategy, goals and measurement.
The empirical research on knowledge management in the hospital not been much done. Most of research was
examine the knowledge management in the company or industries. Thus the research must be done to further
open the insights of knowledge management in the hospital. This research was conducted to know the
influence of internal marketing and organizational culture on knowledge management.
2. LITERATURE REVIEW
