An exploratory study of knowledge creation and sharing in online ...

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An exploratory study of knowledge creation and sharing in online community: a social capital perspective a

Margaret Sheng & Rendi Hartono

a

a

Department of Business Administration, National Taiwan University of Science and Technology, No. 43, Keelung Road Section 4, Taipei, Taiwan Published online: 07 May 2013.

Click for updates To cite this article: Margaret Sheng & Rendi Hartono (2015) An exploratory study of knowledge creation and sharing in online community: a social capital perspective, Total Quality Management & Business Excellence, 26:1-2, 93-107, DOI: 10.1080/14783363.2013.776769 To link to this article: http://dx.doi.org/10.1080/14783363.2013.776769

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Total Quality Management, 2015 Vol. 26, No. 1, 93 –107, http://dx.doi.org/10.1080/14783363.2013.776769

An exploratory study of knowledge creation and sharing in online community: a social capital perspective Margaret Sheng and Rendi Hartono∗ Department of Business Administration, National Taiwan University of Science and Technology, No. 43, Keelung Road Section 4, Taipei, Taiwan This study uses a conceptual model that integrates three research streams – knowledge creation and sharing, social capital, and online communities – to explore how social capital facilitates the creation and sharing of knowledge in online communities. It incorporates data from three well-known multinational firms, namely, Adobe, Dell, and Starbucks (software applications, computer and IT peripherals, and a coffee franchiser in a service industry, respectively). Our results show (1) why and how knowledge is created and shared, cultivated in online communities and then adopted by firms; (2) that social capital positively facilitates the creation and sharing of knowledge in online communities; and (3) that the process of creating and sharing knowledge nourishes the following outcomes which benefit the firm: it accelerates the development of new products, enhances relationships with partners, raises the level of environment and community involvement, creates customer acknowledgement, and intensifies product and service innovation. Keywords: social capital; knowledge creation and sharing; online communities; online forums; blogs

Introduction Online communities have undergone rapid change in the current business context. Many firms routinely use an online community to communicate their needs (Maswera, Dawson, & Edwards, 2006) to develop new products and services (Lopez-Nicolasa & Molina-Castillo, 2008) and to engage and empower community members to co-create value (Brodie, Ilic, Juric, & Hollebeck, 2013). By directly establishing an online community, firms have become attentive to customer storytelling as an integral part of the organisational process of managing an excellent customer relationship (Gory & Westbrook, 2011). Many studies have used social capital theory to combine and integrate knowledge management into innovative solutions (Nahapiet & Ghoshal, 1998; Lang, 2001; Sherif, Hoffman, & Thomas, 2006), but few have addressed the creation and sharing of knowledge in online communities, nor how firms can benefit from the stimulation of social capital. Thus, this study explores how social capital facilitates the creation and sharing of knowledge in the two most popular online communities in a business context, online forums and blogs. By asking members to participate in the community and by encouraging the direct creation and sharing of knowledge, firms can benefit from the social capital effects developed in an online community. Nonaka (2007) indicates that successful companies create and disseminate knowledge throughout the organisation, with a view to quickly incorporating it into new services and ∗

Corresponding author. Email: [email protected]

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products. Lang (2001) argued that knowledge is best transferred through experience and informal social interaction. Informal mechanisms such as online communities promote socialisation and dynamic engagement and thereby generate social capital. Customers provide information and tacit knowledge during their engagement in an online community which firms can in turn appropriate (Hayes & Walsham, 2001). Therefore, it is reasonable to posit that social capital in an online community can enhance the creation and sharing of knowledge. Our research questions focused on (1) why and how social capital facilitates the creation and sharing of knowledge in an online community and (2) the outcomes firms obtained from such creativity and sharing. The present study should be of value to academics and has practical implications for firms. We develop a holistic conceptual model of how social capital facilitates the creation and sharing of knowledge in online forums and blogs, and demonstrate how firms can benefit. From a practical standpoint, we help firms cultivate five significant outcomes from the creation and sharing of knowledge in online communities and offer important insights to help sensitise firms to the effects of social capital in their online communities. Conceptual framework This section examines how social capital facilitates the creation and sharing of knowledge in online communities (online forums and blogs) and develops the framework in Figure 1. Social capital Social capital is defined as ‘the sum of resources in a social structure that firms can access or mobilize actively by possessing a durable network of relationships for social action’ (Nahapiet & Ghoshal, 1998, p. 9). The idea is that knowledge and resources are exchanged, work gets done, and value is created through social relationships (Rottman, 2008). Nahapiet and Ghoshal (1998) noted three dimensions of social capital: structural, relational, and cognitive. The structural dimension refers to the degree of communication and the relationships facilitated by a social network infrastructure, which allows firms to combine and share the resources of individuals. The structural dimension consists of network ties to connectivity and density (Sherif et al., 2006). Social ties bring a positive attitude and a sense of belonging and attachment to the community.

Figure 1. Knowledge creation and sharing in an online community.


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The relational dimension describes the kind of personal relationships that have developed through a history of interactions. This dimension is conceptualised here as social norms, obligation and expectation, trust and identity (Nahapiet & Ghoshal, 1998). Social norms in an online community, such as those relating to the submission of feedback and comments, encourage members to assist one another by sharing their knowledge (Hau & Kim, 2011). The desire to maintain a relationship with an online community creates a continuing sense of obligation to help based on shared communal experiences (Wasko & Faraj, 2005). Chiu, Hsu, and Wang (2006) considered trust to be a generally accepted set of values, norms, and principles followed by members of an online community, which increases the creation and sharing of knowledge. When strong ties exist, the network develops a high degree of trust that encourages partners to make greater commitments of resources to the relationship (Capaldo, 2007). Identity is a reflection of an individual’s effort to express and present themselves to others as grouped with another person or set of people (Ma & Agarwal, 2007). The cognitive dimension refers to those resources that provide shared representations, interpretations, and systems of meaning among parties (Cicourel, 1973). The cognitive dimension is articulated as a shared vision predicated on a common language, shared meanings, and an understanding of values and goals among the members of the network as they interact to realise collective goals (Baehr & Alex-Brown, 2010). Collective goals lead members to trust that other members’ self-interest will not influence them adversely, and they provide valuable knowledge that helps to accomplish mutual goals (Chow & Chan, 2008). Knowledge creation and sharing Polanyi (1967) described two types of knowledge: explicit or codified knowledge is transmittable in formal, systematic language, whereas tacit knowledge has a personal quality which makes it hard to formalise and communicate. Tacit knowledge is deeply rooted in action, commitment, and involvement in a specific context (Nonaka, 1994). Although explicit knowledge is the easier to share, tacit knowledge is more likely to be passed along among members of the same network (Darr, Argote, & Epple, 1995). Tacit and explicit knowledge feed each other in a continual process of knowledge sharing. The interaction between tacit and explicit knowledge tends to become faster and more extensive as more actors in and around the organisation become involved. These vcommunities of interaction’ contribute to the amplification and development of new knowledge (Nonaka, 1994, p. 15). Thus, new knowledge, once shared and expressed, leads to yet newer knowledge (Cohen, 1998). Moran and Ghoshal (1996) argued that all new knowledge is created through two generic processes: combination and exchange. These authors identified two conditions that must exist for the exchange and combination of knowledge actually to take place. First, the opportunity (or accessibility) must exist to make the combination or exchange. The second condition for the creation of new knowledge highlights the importance of motivation. Those involved must feel that their engagement in the knowledge exchange and combination process will be worth their while. Knowledge is also created through the interactions of individuals, groups and in the organisation’s cycle of reflection upon practice, experimentation, further reflection, sharing reflections, additional experimentation, and so forth.


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The effect of social capital in online communities An online community can be described as a specialised and non-geographically bound community, based on social communications and relationships among consumers (De Valck, Van Bruggen, & Wierenga, 2009), where knowledge flows among independent units (or individuals) (Baalen, Bloemhof-Ruwaard, & Heck, 2005). Furthermore, it is an environment where community members and visitors, through individual and collaborative efforts, create and co-create value for themselves, other members and/or organisations (Porter & Donthu, 2008; Schau, Mun˜iz, & Arnould, 2009). Online communities in this study are organised by firms to achieve a strong performance by communicating and exchanging information directly with customers. There are online communities for almost every product category (e.g. wines, cameras, and cars), hobby (e.g. rock climbing, music, and chess), or life situation (e.g. retirement, diseases, and pregnancy), which represent a large pool of product know-how and experience (Fuller, Jawecki, & Muhlbacher, 2007). Social capital facilitates the access of firms and individuals to other sources of knowledge within and outside the organisation, increases the willingness of the parties to engage in a two-way interaction and improves the efficiency of the creation and sharing of knowledge (Nahapiet & Ghoshal, 1998). When firms develop strong interactions in the network, they create social capital with substantial value that can increase their performance (Kambil, Eselius, & Monteiro, 2000). The greater the social capital and relationship the firm has, the greater its knowledge creation and sharing (Yli-Renko, Autio, & Tontti, 2002). Wellman and Gulia (1999) suggested that even people who are only connected through computer networks, such as online forums and blogs, should be regarded as constituting a social network. Singh, Liza, and Cullinane (2008) argued that informal systems, such as online forums and blogs, provide an opportunity to seize knowledge where it is created in an organisation and then share it throughout the organisation. The nature of informal mechanisms allows the generation of knowledge from mere information, which can be archived for later retrieval. After the thinking process, members discuss concepts, share up-to-date information and participate in further discussion. It is a distinctly open environment for advancing a topic that encourages intellectual exchanges. Research design The present study is based on a qualitative case study to emphasise a few conditions or events and their interrelation. The objective was to understand events and their ramifications and processes by recording analyses and observations. A case study describes, translates and otherwise comes to terms with the meaning of a certain phenomenon (Copper & Schindler, 2006). The unique strength of this approach is its ability to comprise an allencompassing method that covers the logic design, data collection techniques, and specific approaches to data analysis. This study presents three exploratory case studies (Adobe, Dell, and Starbucks, as Table 1 shows) based on data collected from online forum and blog archives (in the threads and comments from members or management teams), observations of the three companies’ online forums and blogs and data from other literature sources. The three firms were chosen because they are interest-oriented communities; customers gather to participate by suggesting modifications or improvements to products or services (Spaulding, 2010), and these firms are in highly competitive mass markets in different business categories. All three predominantly utilise online communities for direct customer



Table 1.

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Selected organisations.

Organisation

Business category

Adobe System Inc.

Software applications

Dell, Inc.

IT, computer and peripherals

Starbucks Corp.

Coffee franchisor (beverages and foods)

Online community type Online forum (http://forums.adobe.com) Comprise more than 70 different forums (ex. Adobe flash, reader, Adobe design, Adobe mobile and device, etc.) based on the products and its extensions with total 177,200 members Blog (http://ideas.acrobat.com) Launch since February 2009, with total: 435 ideas; 590 comments; 3080 votes; 1340 users Online forum (http://en.community.dell.com/forums) Dedicate for members to answering questions in technical issues and marketing topics (channel, small business, etc.); already had total 1,536,799 members Blog (http://en.community.dell.com/blog/ ideasinaction) Since February 2007, members have contributed 12,034 ideas, promoted 673,710 times, posted 85,012 comments and Dell has implemented 350 ideas Blog (http://blogs.starbucks.com/blogs/customer) Since March 2008, members already shared over 7000 ideas in the first year, 94 ideas have been put into action and 25 of those ideas have been launched

relations that are focused on the creation and sharing of knowledge between customers and the firm. These firms have an extensive number of members who regularly participate in the online community, which demonstrates a clear commitment to a product or service. Procedure We collected the data through online archival records and online participation and observation using Yin’s (2003) analysis steps. The first step was to present and organise the data. All the archival records were captured according to the segmentation needed for this study. The second step was to categorise the data according to the proposed theoretical model. In online forums and blogs, topic separation is based on different categories. We selected the category that most closely reflected the creation of knowledge and the sharing of social capital on the firm’s online forum and blog. The third step was internal validity of the identified relationship. If the final result of the relationship of the variables did not meet our expectation, the archival evidence was re-examined, additional data were gathered on particular issues, the theoretical propositions were revised and the evidence was examined once again from a new perspective in an iterative mode. The last step was replication logic, which meant beginning with one case study and comparing the findings with our propositions. Cases that failed to support the relationships would provide an opportunity to refine the initial propositions, whereas cases that confirmed the prepositions would enhance confidence in the validity of the relationships. Since online forums and blogs are Internet-based, most of the data used in this study came from online archival records and online direct participant observation of the three firms’ online forums and blogs. A field visit to the case study site creates the opportunity for direct observation. The means of field visits to the case study ‘site’ refers to participant


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observation, by signing up first as a regular member, and then browsing through the online forums and blogs of the three selected firms. The conversations selected and used in this study are publicly posted, and none are classified. Data were organised and analysed to reveal the flow of knowledge creation and sharing. The present study compared the categorisations of data throughout the development of the conceptual model until consensus was reached. Results Greater levels of communication and relationships between firms and community members will positively enhance knowledge creation and sharing Examination of the causes of knowledge creation and sharing begins with utilising communication and relationship-building of the firm’s social capital. Establishing and maintaining relationships to optimise knowledge creation and sharing require effort. The greater the social interaction, the greater the structural dimension of social capital (Coleman, 1998). Adobe manages its knowledge creation and sharing in two online communities. The first one is online forums, which provide an interactive environment for vibrant discussions of Adobe products and services. Adobe users ask questions, offer ideas and suggestions, and share tips and tricks. The second online community is the blog. Adobe’s Idea blog allows customers to collaborate and communicate in real-time, post ideas, vote on people’s ideas, submit comments, and share feedback. As the online community manager for Adobe’s Idea blog explains: We’ve also implemented a new site devoted entirely to ideas, Acrobat.com Ideas, where you can submit your thoughts and vote on which features should be our top priority.

Starbucks uses blogs to communicate with their customers by letting them share and discuss topics in four ways: (1) post new knowledge or suggest improvements to the company (Share), (2) let the community vote on other people’s ideas and decide which one they like best (Vote), (3) share knowledge through comments with Starbucks Idea Partners (Discuss), and (4) knowledge integration in action/implemented (See). Adobe classified the knowledge by categorising the information exchange and knowhow in order to identify, collect, and allocate accurate knowledge. Members benefit as more responsive, accessible knowledge is developed and shared. The categorisation of members’ knowledge in the ‘My Starbucks Idea’ blog helps to focus, combine, and translate knowledge into workable ideas. A Starbucks reusable tote was designed based on a specification recommended by three members in another product idea category. New Reusable Fall Tote, Other Product Ideas by sbx_nsav. You’ve asked us for more reusable bags, so we created the perfectly sized reusable tote for your lunch and snacks on the go. It’s designed specifically to fit your favorite Starbucks Bistro Box, and features the Starbucks siren on the snap and recycled leather patch . . . . Inspired by your ideas: Starbucks Tote Bags! by BrightMoments Linked Ideas: Starbucks Ecofriendly Bags by grdrip, Reusable shopping bags for sale at Starbucks by Reusablebag1. Greater levels of relational dimensions (norms, obligations and expectations, trust and identity) between firms and community members will positively enhance knowledge creation and sharing.



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Norms From the initial stage, the norms in online forums and blogs should be communicated to potential members to describe how a rule is socially enforced. Such rules are usually based on some degree of consensus and are enforced through social sanctions. The system needs to focus on the social structure, rather than exclusively reflect on the needs of individual users. Most firms have their own forum etiquette and best practices or blog terms and conditions to ensure that participants behave appropriately when posting on a forum or a comment on a blog. This procedure helps people learn how to interact, evolve, and socialise in the community. The My Starbucks Idea blog has norms that guide community members on how to share knowledge ethically, with a view to fostering a close environment in which members can post and discuss their knowledge. The norms of openness, cooperation, and a willingness to value and respect others are the key features of knowledge creation and sharing. The submission of your idea to Starbucks is entirely voluntary, non-confidential, gratuitous and non-committal. Your submission, including any personally identifiable information, is voluntary and subject to the Privacy Policy.

Obligations and expectations With respect to establishing good relationships, firms need to emphasise members’ expectations and obligations to influence both access to knowledge and the motivation to share and create knowledge. People rely on each other beyond contractual obligations if they enjoy working together, feel committed to the overall project and help others become involved. Compensation is considered unnecessary for new knowledge or for ideas contributed to the online forums or the blogs. Adobe, Dell, and Starbucks believe that the two online communities, online forums and blogs, work as a platform for members to participate in for their own good. Firms are not required to treat any knowledge submissions confidentially. A combination of the most popular and innovative ideas that are considered the best fit for the company is presented to the company’s key decision-makers with recommendations for how those ideas can be put to work. The submission of members’ knowledge to firms is entirely voluntary, non-confidential, gratuitous, and non-committal. For example, in the Adobe forums: I come to help and encounter new problems that encourage me to find solutions, improving my own knowledge.

Starbucks Idea in Action blog FAQ: We created My Starbucks Idea so you can share ideas that matter to you, and you can find out how we’re putting those ideas to work. Together, we will shape the future of Starbucks.

Trust Trust represents an increased willingness to experiment with knowledge creation and sharing. An atmosphere of trust should contribute to the free exchange of knowledge because decision-makers should feel that they do not have to protect themselves from opportunistic behaviour (Jarillo, 1988). Whenever trust is present, there will be a huge amount of knowledge ready to be created and shared. Members’ knowledge implementation, ideas in action and adopted ideas reported from firms to the members could


100 M. Sheng and R. Hartono bolster the level of trust because members feel recognised and therefore part of the firm. People love to be heard, and firms need to consider this goal as a priority for their online communities. Dell’s IdeaStorm blog was launched in February 2007 to solicit customer feedback and thereby build trust. Customer feedback is vital and organisations should use all available forms of feedback to implement corrective actions where necessary. Customers who complain and receive a satisfactory response put more trust in suppliers than those who have never complained because they now feel confident that the supplier will resolve any problems (Disney, 1999). The online ‘brainstorm’ sessions provided for customers facilitate the sharing of ideas and collaboration to solve problems. One of the members reacts: Shows people that Dell cares, and is trying to make changes based on people’s comments, complaints and suggestions! I feel that they really will put those comments into consideration for future product and service improvements.

Identity Firms build identity by respecting the knowledge of members, and this appreciation is shown by listing the member’s name in the recap or blog news. Special acknowledgement of members by using a nickname or a hyperlink to the member’s idea contribution page could enhance the motivation of all members because it means that their voices are being heard. Starbucks Idea blog Starbucks team sincerely acknowledge[d] to the members for the idea/knowledge contribution. I want to give special thanks to tealover, lorifw66 and JordanG [Members’ nicknames] for continuing to give us ideas for the Starbucks Card Program.

Every online forum and blog also has a spot that lists the highest contributors (Adobe Bright Idea Top Contributors), the top idea makers (My Starbucks Idea Leaderboard), and the top participants (Dell Storm Top Idea Contributors, Table 2) to the firm. This could be one of the factors that makes members feel accepted and part of the community. The identity gives every member a sense of belonging and encourages them to participate and increase the quality of knowledge and ideas they contribute in online forums and blogs. Greater levels of sharing stories through a common language of each focus domain between firms and community members will positively enhance knowledge creation and sharing Bruner (1990) proposed two different modes of cognition: the information mode and the narrative mode. The former suggests that knowledge creation is rooted in rational analysis and good arguments, whereas the latter is represented in narratives such as myths, stories, and metaphors. Myths, stories, and metaphors involve the exchange and preservation of Table 2.

Dell storm 20 top idea contributors.

Rank

Username

Ideas submitted

Comments

1 2 3 ... 20

jervis961 dhart badblood ... mistern

180 7 221 ... 67

5552 39 2436 ... 616


Total Quality Management 101 rich sets of meaning which enable the combination of different forms of knowledge. Shared norms support the transfer and creation of knowledge because the parties to the exchange feel they ought to do so, since they can see the benefits to both parties and/or because they expect the other party to cooperate equally (Barbara & Weber, 2007). Common understandings, shared code, or new shared paradigms within the community help to provide a valuable source of knowledge creation. In Adobe forums and blogs, Adobe establishes and maintains a community of practice that enables open and constant knowledge creation and sharing with other like-minded members of the community. Members navigate to the location where a particular bit of knowledge is available so that they may share their codes and interpretations, providing relevant knowledge or requests, particularly with regards to programming/software tools. In a community of creative experts, Help is not a document. It’s a conversation. Meet, ask, and follow community experts – join the vibrant discussions around Adobe products and technologies. Start by choosing a community . . . [Adobe community’s foreword]

In one discussion of Adobe Photoshop Scripting, one member asked a question and was answered with plenty of knowledge that could only be understood by other members fluent in the same technical language. In the end, the problem was solved but another knowledge issue arose. Is there a way to export multiple GROUPS into individual files, such as jpg? If I run the File . Scripts . Export LAYERS To Files, each LAYER becomes a jpeg, but I’d like each GROUP to be flattened and exported as a jpg. Is there a script or function that performs this task? You could try attached Script, You’d have to adapt it to jpg, currently, it saves pdfs. I have not tested it very extensively and only in CS4 though. The saving of top and bottom groups would be quite helpful when it comes to baking in a flexible variety of fades and backgrounds into output images.

Outcomes of Creation and Sharing of Knowledge: accelerate new product development, enhance relationships with partners, raise environmental and community involvement, create customer acknowledgement, and intensify product and service innovation. Outcomes of knowledge creation and sharing in the Adobe Blog The major outcome of knowledge creation and sharing in Adobe’s online forum and blog is the development of beta projects (accelerate new product development). The Adobe online forums are intended for those knowledgeable in the software project area, whereas the Adobe blogs are intended for a more general audience. Adobe combines these two online communities so that people can share their knowledge to develop new products (Figure 2). Presentations on Acrobat.com Labs are available today at http://labs.acrobat.com. This is an early review and more new developments to come.

Adobe Idea blog’s knowledge creation and sharing outcome has also been captured and applied to its ConnectNow program, which led to the development of screen sharing. Adobe team: This week, we released a new version of ConnectNow . . . You can now choose to share a particular window or application instead of sharing your whole desktop when using the screen sharing feature.

Outcomes of knowledge creation and sharing in Dell’s IdeaStorm Blog Dell’s product innovation occurs through a shortened product cycle (accelerate new product development). Released in May 2009, Studio 14z is a new generation of laptop


102 M. Sheng and R. Hartono

Figure 2. Adobe online forums threads.

revised from Studio 15′′ and 17′′ wide screen. On 25 October 2009, VijayKG (Dell IdeaStorm blog member) expected a ‘14’ size laptop on the Studio line of laptops and Dell launched this new product within seven months. Studio 14z laptop should have all the features of the Studio 15′′ . This will attract large audience of people who prefer light weight laptop with style and performance that suits daily travel needs.

The second outcome of Dell’s knowledge creation and sharing implementation is that it enhances relationships with partners and resellers. The sales channel/Dell’s channel members shared their knowledge with Dell’s marketing department, and after listening to the partners, Dell decided not to transition the partner accounts and to continually update partners through the blogs. During the past year and the evolution of PartnerDirect, the channel leadership team has taken the approach of doing everything possible NOT to transition accounts. . . . We will continue to update our Partners on our Channel Blog about programmatic updates and information that is invaluable to you.

The third goal of the blog is to raise environmental and community involvement. Dell announced its intention of becoming a ‘greener’ firm by introducing an exchange program (customers could trade their old electronics with Dell’s gift cards via a mail-back program and a trade-in program to buy back old models. Dell also pledged its commitment to becoming carbon neutral and making donations to help disabled and economically disadvantaged children and adults). Now, computer maker Dell Inc. is using the fast-growing member of the grass family as a replacement for paper, plastic and plastic foam packaging materials.

Outcomes of knowledge creation and sharing in the Starbucks Idea Blog Starbucks’ Idea blog has the highest interaction compared with Adobe and Dell’s blogs. The outcome of knowledge creation and sharing from Starbucks’ blog is


Total Quality Management 103 that it creates customer acknowledgement and intensifies product and service innovation. Customer acknowledgement rewards customers for their participation and loyalty to Starbucks: On 10/7 BillMac posted an idea called ‘Free Cup of Starbucks Coffee for Voters’ and a similar theme echoed by JavaOcha, Geraldo, rsj211, epiphanygalore, and a few others. On (11/4), head to your local US Starbucks and we’ll give you a FREE tall (12 oz) cup of brewed coffee at no charge as a celebration of this important day.

Product and Service Innovation Based on an overwhelmingly positive customer and partner response [on something for our lids], we are rolling out splash sticks nationwide this week. Also, to help minimize waste, you can save your splash stick to be cleaned and reused.

Discussion Our study has assessed knowledge creation and sharing in an online community from a social capital perspective. Although knowledge creation and sharing in some ways exist in the online community and affects outcomes, knowledge creation and sharing in firms do not directly produce or create value. In short, knowledge creation and sharing alone do not facilitate greater capability. The three dimensions of social capital (structural, relational, and cognitive) convey the high potential necessary for knowledge creation and sharing. The impersonal nature of structural social capital can be conceptualised as the overall pattern of relationships in a social network (Yang & Farn, 2009). We found that firms integrated knowledge creation and the sharing process by formally establishing online communities to develop a good relationship with customers that will facilitate the accumulation of structural social capital. These firms categorised their online forums and blogs into a very specific thread such as new technology, payment, and pick-up for the community members, and product ideas to provide an opportunity for members to discuss issues and receive feedback (from the firms). The interpersonal relationship (relational and cognitive dimension) involves the sharing of new ideas and information at the social level. Trust is a key component of the relational dimension, nevertheless, social norms, obligations, and expectations, along with identity, are also necessary to guide, involve and nurture members’ sense of belonging. Firms can stimulate members to participate in knowledge creation and the sharing of products or services by using a relational network. When there is a close relationship, there is a greater willingness to support and encourage innovative ideas, as the individuals involved feel confident enough to turn ideas into successful projects (Antonio, Gloria, & Carmen, 2010). Common language and the shared value of the cognitive dimension can promote communications among members and increase their level of competence when sharing problems and solutions. When social capital is present and cultivated, knowledge creation and sharing tend to have more significant outcomes than in the absence of social capital. The effect of social capital within an online community should be utilised to support and strengthen the outcomes of knowledge creation and sharing. The conceptual mechanism of knowledge creation and sharing in Figure 1 verified that the greater social capital in online communities can be transformed into various outcomes, provided the knowledge is processed effectively. This suggests that social capital creates a context that facilitates knowledge creation and the sharing of outcomes in online communities.


104 M. Sheng and R. Hartono The creation and sharing of knowledge in an online community can be considered an important collaboration that is heavily reliant on member’s sharing of knowledge. Collaboration in an online community can also facilitate the measurement of customer satisfaction or dissatisfaction with the firm’s product or service. When firms listen and adjust their product requirements or services by integrating changing customer demands, they are in effect acknowledging how customers have become more knowledgeable and have increasing expectations of value and convenience. Hence a customer relationship management strategy has become crucial for firms (Ku & Fan, 2009). Theoretical and practical implications In this study at least three separate bodies of literature on social capital (Nahapiet & Ghoshal, 1998; Sherif et al., 2006; Yli-Renko et al., 2002), knowledge creation and sharing (Nonaka, 1994; Polanyi, 1967), online communities, particularly in online forums and blogs (Singh et al., 2008), have been integrated into a comprehensive framework. This holistic view allows a better understanding of how to cultivate social capital in an online community to improve the creation and sharing of knowledge. However, prior studies have rarely considered the connections between these bodies of literature, a point that is the focus of this study. Furthermore, this study documents a holistic conceptual framework that links the creation and sharing of knowledge (independent constraint) with social capital as the facilitator, and delineates the processes that led to some outcomes for the firm. Online communities are excellent tools for promoting the creation and sharing of knowledge through social capital. This is true if the firm has set the value of socialisation as the goal of creating knowledge through sharing mechanisms. The social structure needs to be built with an informal governance system that can enrich personal and communal relationships, thereby forming a strong social tie based on the continuity of the communication. A fresh and easy-to-navigate layout can provide a good start for an online community. Loosening control of the interaction within an online community will give members more freedom to share their knowledge. In terms of obligations and expectations, the experiences of members appear to determine whether the threads will remain active. Problem solving and information exchanges lead to a broadening of personal thinking for all members. The longer a member has participated in the online community, the more they will attach themselves as a family with other members and with the company. When a member feels welcome in the group, he or she will feel strongly inclined to share their experiences. Firms should ideally periodically provide non-official activities, such as team reunions, to increase the personal familiarities between firms and members, and they should foster interaction in an online community through face-to-face meetings, irrespective of how advanced the IT happens to be. Regional meetings, fund raising, and watching live sports or other big events may improve the social interaction and gradually build trust. In addition, the firm should reduce any obstacles to collaborative creation and sharing of knowledge faced by the members (external) and the firm’s employees (internal). Both external and internal controls should be established and followed to heighten involvement in the creation and sharing of knowledge. Although members seem to understand that their submissions are non-committal, the firm may develop a significant reward mechanism that can motivate members to participate more eagerly. Value-added points can create positive conditions for members to become more committed, which results in the creation and sharing of knowledge.


Total Quality Management 105 Finally, the adoption of an online community will be made easier through management of the knowledge base and by making relevant knowledge accessible; social capital allows the creation and sharing of knowledge to flow across boundaries (Chong, Ooi, Teh, & Lin, 2010). Richard, Thirkell, and Huff (2007) claimed that the customer wants to have a relationship with the right people within the firm, with such communication creating a mutual interest in seeing an improved service or product. Good relationships depend on people, not systems or computers. Firm must also take some extra precautions in regard to unresolved issues to avoid any criticism. When the quality of service meets or exceeds customers’ expectations, an online community will act as an antecedent of customer satisfaction, leading to customer loyalty, repurchase intentions and positive word of mouth (Chang, Wang, & Yang, 2009). Limitations and future research directions There are three major considerations that require further research. First, how should the manager decide which knowledge need to be chosen and implemented? What strategies and tactics would be used by the firm to increase the quality of goods and services and to enhance the effectiveness of business? Second, who owns the intellectual property or knowledge given by members to the firm? When people register, contribute, and share knowledge in an online community, they are aware that it may be incorporated in a new product, service or organisation. Members may later claim ownership of knowledge. Furthermore, we know that anyone can browse through an online community. Members’ knowledge contributed freely and exclusively to an organisation can be stolen by lurkers or competitors and used in a product or service. Third, despite its ability to generate many useful insights, this study is inherently limited because case studies are generalisations of theoretical propositions rather than generalisations of the population or universe (Yin, 2003). This weakness can be partially compensated by the counter-balancing strengths of quantitative methods (Jick, 1979). References Antonio, C.-L., Gloria, C.-R., & Carmen, C.-M. (2010). Social and organizational capital: Building the context for innovation. Industrial Marketing Management, 39, 681–690. Baalen, P.J., Bloemhof-Ruwaard, J.M., & Heck, H.W.G.M. (2005). Knowledge sharing in an emerging network of practice: The role of a knowledge portal. European Management Journal, 23(3), 300 –314. Baehr, C., & Alex-Brown, K. (2010). Assessing the value of corporate blogs: A social capital perspective. IEEE Transactions on Professional Communication, 53(4), 358– 369. Barbara, W., & Weber, C. (2007). Corporate venture capital as a means of radical innovation: Relational fit, social capital, and knowledge transfer. Journal of Engineering and Technology Management, 24, 11 –35. Brodie, R., Ilic, A., Juric, B., & Hollebeek, L. (2013). Consumer engagement in a virtual brand community: An exploratory analysis. Journal of Business Research, 66(1), 105–114. Bruner, J.S. (1990). Acts of meaning. Cambridge, MA: Harvard University Press. Capaldo, A. (2007). Network structure and innovation: The leveraging of a dual network as a distinctive relational capability. Strategic Management Journal, 28, 585–608. Chang, H.H., Wang, Y.H., & Yang, W.Y. (2009). The impact of e-service quality, customer satisfaction and loyalty on e-marketing: Moderating effect of perceived value. Total Quality Management & Business Excellence, 20(4), 423–443. Chiu, C., Hsu, M., & Wang, E. (2006). Understanding knowledge sharing in virtual communities: An integration of social capital and social cognitive theories. Decision Support Systems, 42(3), 1872 –1888.


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