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Research Article | Volume 4 Issue 1 (Jan-June, 2023) | Pages 1 - 6
Assessing Km Maturity in Vegetable Farming (Case of Pt. Organic Farm)
 ,
1
School of Business Management, Bandung Institute of Technology, Bandung, Indonesia
Under a Creative Commons license
Open Access
Received
Jan. 3, 2025
Revised
Jan. 9, 2025
Accepted
Jan. 19, 2025
Published
Jan. 27, 2025
Abstract

Preserving knowledge in an organization is essential to increase productivity, resulting in competitiveness. Knowledge management can be implemented in many industries, including vegetable farming. This research aims to assess the knowledge management maturity level at PT. Organic Farm. A combination of quantitative and qualitative methods will be used to complement the research. The quantitative study is done by conducting a survey based on the APO Knowledge Management Framework and distributed to 13 respondents in the production team. Focus group discussions and interview with the leaders represent the qualitative study. The result shows that the company is still at the initiation level with a total APO KM Maturity score of 115,9. The highest score is obtained in the outcomes category with a total score of 20,7. However, the knowledge process received the lowest score of 13,2. The company has started to implement informal sharing but lacks knowledge of externalization and codification. Additionally, employee training is done coincidentally, depending on the leader's availability. Thus, creating a portal as knowledge storage, providing systematic training and performance-based rewards may enhance knowledge management implementation in the company.

Keywords
INTRODUCTION

Knowledge management plays a vital role in the success and competitiveness of a company. It involves identifying, capturing, organizing and disseminating knowledge in an organization. Knowledge management is about making the proper knowledge available to the right people. A previous study has confirmed a positive relationship between knowledge management and business performance. For instance, the implementation of knowledge management in the service sector in the Pakistani telecom sector. The company codified the knowledge to ease information search for mobile network operators [1]. The knowledge received by employees will be used as a basis to create new ideas that can turn into innovation. The innovation can be used to increase the company’s productivity. Hence, businesses that want to remain competitive in the market must put effort into managing the knowledge resources in the company [2]. Knowledge management can be implemented in all sectors, including vegetable farming. The steps of implementing knowledge management in vegetable farming and other sectors are similar. First, the company must assess the knowledge management maturity level. Assessing knowledge management maturity level is essential to understand the current knowledge management level, identify aspects that management needs to improve and propose the right strategy to enhance the current implementation [3].

 

There are several methods to assess knowledge management maturity levels, such as the Asian Productivity Organization framework (APO), Knowledge Management Maturity Model (KMMM) and American Productivity and Quality Center (APQC) [4,5]. According to Asian Productivity Organization [4], the APO framework is conducted by distributing questionnaires that cover 7 audit categories: leadership, process, people, technology, knowledge process, learning and innovation and knowledge outcomes. The respondents will give a rating from 1 (doing poorly) – 5 (doing very well). Escrivão and Silva [3], in KMMM, the maturity assessment is done by interviewing different groups and individuals playing different organizational roles. There are 8 aspects that are being assessed such as process, technology, strategy, environment, people, collaboration culture, leadership and knowledge structures. However, the company needs to hire a KM consultant for high-quality assessment results. Lastly, the APQC framework assesses twelve aspects: objectives, business case, budget, resources, governance and leadership, change management, communication, knowledge flow process, km approaches and tools, measurement, content management and information technology. As in the APO framework, the APQC framework also uses questionnaires to assess the knowledge management maturity level [6].

 

This research will focus on assessing knowledge management in vegetable farming by using Asian Productivity Organization (APO) framework. Vegetable farming is chosen because there is limited research on knowledge management implementation in this sector. Vegetable farming is often practiced on a small scale, making it less appealing to research institutions. APO framework is chosen because of its well-established model that has been applied in many research and offers a comprehensive and compact assessment compared to other frameworks. The researcher will spread the questionnaire to respondents according to the questions listed in the APO framework. In this research, maturity assessment will not merely rely on questionnaire results, just as in the previous studies, but also be strengthened by using a focus group discussion and interviews with related people mainly involved in the process.

THEORETICAL FOUNDATION

Knowledge Management Definition and Benefit

Knowledge management, which entails the initiatives, processes, strategies and systems that support and enhance the storage, assessment, sharing, repurposing and creation of knowledge, is the systematic management of an organization's knowledge assets to create value meet tactical and strategic requirements. There are several benefits of implementing knowledge management in the company [7], such as helping the firm to learn from past mistakes and successes, improving the firm’s ability to innovate and protecting its vital knowledge and competencies from being lost or copied, promoting a long-term focus on developing the right competencies and skills that will increase the organization’s productivity.

 

Knowledge Management, Innovation and Productivity

Ben [8] and Damanpour [9] explain that knowledge resources determine the firm capacity to innovate. To test the relationship between knowledge management and innovation, the researchers survey 200 companies via email and face-to-face. The questionnaire assesses the respondent’s level of perception on several items, such as organizational innovation, internal sources of knowledge and organizational performance. The result shows a positive correlation between knowledge resources and the organization’s innovation capacity.

 

Byukusenge and Munene [2] also analyzes the connection between knowledge management, innovation and productivity. A survey was conducted on 250 SMEs in Kigali city by face-to-face approach. The survey element is about knowledge management in terms of knowledge acquisition, knowledge sharing and responsiveness to indicate how knowledge is managed in their business. The result shows that innovation as the mediating variable in the relationship between knowledge management and business performance satisfies the condition. Knowledge sharing can increase the employees’ capabilities and if the employee applies the knowledge, it will become their basis for creating new ideas. The new ideas can then turn into innovation. Companies will use innovation to increase productivity or business performance. 

 

Knowledge Management Implementation in Small-Sized Company

Knowledge management is not only implemented in large-sized companies but also in small-sized companies. According to Montequín et al. [10],  Forijati et al. [11] and Perez et al. [12], knowledge management is implemented differently in small businesses than in large businesses. Implementing knowledge management can help small businesses solve issues related to competition, employee turnover and consumer dissatisfaction. In contrast, small companies may have more resources to facilitate the implementation of knowledge management. Although there are some implementation differences, small and large companies can benefit from knowledge management to enhance their organizational processes and performance. Some critical factors for the successful implementation of knowledge management are an organizational culture that promotes shared vision and collaboration, identifying the key knowledge, where it is and who possesses it. A Mexican SME trading company study reports success using a knowledge management strategy by developing a website for knowledge preservation and speeding up the searching process. Previously, all of the information in the company was uncategorized and scattered. Then, the company improves the information classification process and creates a website to integrate all the knowledge.

 

Knowledge Management Implementation in Farming

There needs to be more research on knowledge management implementation in farming. However, some studies confirm the benefit of implementing knowledge management in farming may increase productivity. The first study was conducted by Pooncharoen [13], who investigated the role of knowledge management practices on the productivity of small farmers in 17 provinces in North Thailand. Half of the provinces do not implement knowledge management; the rest use knowledge management practices by sharing knowledge from the leaders and among group members. The result also shows that the farmers implementing knowledge management have higher land productivity than those not. 

 

 

Figure 1: APO Framework

 

 

 Figure 2: KM Assessment Radar Chart

 

 

Figure 3: KM Maturity Level [4]

 

To add more, a study by Kusnadi et al. [14] was also done on cattle farming in Indonesia that focused on beef and dairy product production. Currently, beef production does not meet national needs because knowledge about cattle farming is still scattered and unstructured. The success of cattle farming is due to several factors, such as grazing systems, cages, nurseries, feeding systems and how to prevent cattle from diseases. To increase the success of cattle production, the author offers a knowledge management system to create, collect, store, maintain and disseminate knowledge. Furthermore, the portal allows the user to do knowledge capture and share knowledge.

 

APO KM Assessment Tools

APO KM assessment tools is a set of questions constructed by APO organization to evaluate the company’s readiness for knowledge management by understanding their strengths and weaknesses. It covers seven audit categories: leadership, process, people, technology, knowledge processes, learning and innovation and outcomes. The assessment is conducted by spreading questionnaires consisting of 42 questions with the highest score of 210 points. Questionnaires will be given to 70-80% of the employees working at the organization for at least six months. After gathering all the questionnaire answers, the next step is to determine the KM maturity models by calculating the average score for each audit category and plotting the result in a radar chart.

 

Table 1: KM Maturity Level [4]

Level

Description

Level 1: Reaction Level

The organization is not aware of what KM is and its importance in enhancing productivity and competitiveness.

Level 2: Initiation Level

The organization is beginning to recognize the need to manage knowledge or may already be initiating a pilot KM project.

Level 3: Expansion Level

KM is fully implemented and deployed.

Level 4: Refinement Level

Implementation of KM is continually evaluated for continuous improvement.

Level 5: Maturity Level

KM is fully mainstreamed within the organization.

 

The score shows the strength and weaknesses of the company from the seven audit categories. The aspect that has the lowest point will be the company’s focus (Figure 1).

 

The result of the KM maturity model is the organization's level of KM readiness. The range of readiness may vary from reaction level (the lowest level) to maturity level (the highest level) (Figure 2).

MATERIALS AND METHODS

The study aims to assess knowledge management maturity level in vegetable farming. The research is done in a vegetable farming company called PT. Organic Farm. PT. Organic Farm is one of the biggest agricultural companies in Indonesia. The company owns two organic farms in Bogor and Puncak to support its supply. Although the company has a vast land area, the amount of land that can be planted is only 50% because the location is too steep and requires sun exposure. The organic farm also functions as a warehouse and office for the employee. 

 

This research will use quantitative and qualitative methods to assess knowledge management maturity level. The quantitative method will be done by spreading the APO questionnaire to the production team, which consists of farm heads and farmers, the operation management head and the HRandGA head. The respondent was chosen because they had a direct impact on farming productivity. The total number of respondents that fit the APO standard (at least work for 6 months) is 13 people. The respondent would score each statement in the questionnaire with a rating of 1 (doing poorly or nothing at all) – 5 (doing very well). The interviewer (farm head) would fill out the farmers’questionnaire through the face-to-face interview because some farmers have difficulties reading and writing. The rest of the respondents would manually fill out the questionnaire.

 

A qualitative study is also done to strengthen and elaborate the implementation of knowledge management at PT. Organic Farm. Focus group discussion is conducted with the farm head and operation management head via Zoom and a semi-structured interview with the HRandGA head. HRandGA head is not included in the focus group discussion due to time constraints and to make the focus group discussion more focused on exploring knowledge management in the production team. The qualitative study is merely conducted at the leaders' level because they are the decision maker and have a holistic knowledge of the company. The qualitative study is done after the quantitative surveys are collected and analyzed. During the discussion, the interviewee will present the survey result and explore the issue and action plan that has been done to support knowledge management in the company.

RESULTS

Quantitative Analysis

Based on the survey, 46,2% of the respondents' age profiles are 26-35 years old. Next, 38,5% of the respondents are between 36-45 years old. Lastly, only 15,4% of the respondents were between 17 and 25 years old.

 

Besides age profile, most respondents have low education levels, with 38% graduating from high school and 31% merely finishing elementary school. Additionally, 15% of the respondents have a diploma level and the rest own a bachelor's degree. It can be concluded that most of the respondents are at productive age with low education level.

 

APO has been done to assess the company’s knowledge management readiness. From 13 respondents, the total score of the APO assessment is 115,9, which can be concluded that the current knowledge management readiness is at the initiation level. It means the company has started to realize the importance of knowledge management. The knowledge process category obtains the lowest score of 13,2, while the outcomes category receives the highest score of 20,7. Additionally, only the knowledge process is still in the reaction level, while the other category has achieved the initiation maturity level.

 

Qualitative Analysis

Moreover, to strengthen the knowledge management assessment, focus group discussions and interview were also conducted with the leaders, such as farm heads, operation management head and HRandGA head. Below is the result of the discussion for 7 audit categories in the APO framework:

 

Leadership

PT. Organic Farm’s management supports learning, innovation and collaborative work that can be proven by having a company’s value that is innovative and collaborative. Mrs. ER confirms the statement:

 

“I think the company has values that promote knowledge management. The core values in the company are collaborative and creative.”

 

It is only the farm head that has adequate knowledge about farming practices that makes the knowledge transfer limited from the farm head. On the contrary, limited knowledge of farming practices makes the farmer easier to be directed by the leaders. 

 

Process

Weekly routine evaluation has been done at PT. Organic Farm to assess the production productivity. The weekly meeting is attended by the operation head and farm head only because farmers are still busy with operational activities. Mr. RS commented:

 

“We do evaluation together every week. In this meeting, we solve problems together and implement new ideas to motivate us to be more productive in the future. Moreover, it is to keep our production target on track and share new improvements currently in progress.”

 

Apart from evaluation, in terms of process, the company still does not have an emergency plan when there is force majeure. Emergency plans are coordinated impromptu by the farm head when a problem arises. For instance, when the farmer is suddenly absent without any information, the operational activities like plant schedule will also be disturbed.

 

People

The company has not put people development as its current priority and has yet to allocate a specific budget for internal and external training. The company incidentally sends the farm head to join external training to get more experience and broader knowledge. Mrs.ER commented:

 

“Currently, the company has not allocated a budget for people development. They only send the farm head to join some external training according to the need. The external training has not covered all employees but only the head.”

 

However, the company facilitates the employees with onsite training. The training is not yet done regularly and is usually delivered by the Operation Management Head and HRandGA Head. The farm head also trains their farmers by conducting an informal knowledge transfer called “Sarasehan,” in which all farmers come together and the farm head shares his technical knowledge with the farmers.

 

Technology

The company has begun to facilitate technology in the form of the Internet, but the coverage area is still limited due to the geographical location of the farm. Additionally, the company also provides computers in the office area. 

 

The employee with access to computers, internet and email is only the farm head, while the farmers are focused on operational activity. Mr. A commented:

 

“In Jolok, access to the internet and computer is only for employees that stay in office (farm head). Not all employees can use computers due to the limited number.” 

 

Currently, the company has a website that enables online ordering from sales to PT. Organic Farm. However, the system has not covered the documentation of the production process.

 

Knowledge Process

The company has many improvement processes in the production area that are not well documented. High farmer turnover makes it challenging to deliver the knowledge perfectly. The knowledge process started in the form of socialization (tacit-tacit) from the farm head to farmer and farmer to farmer. Although knowledge sharing has been done, the company has not yet systematically stored knowledge. Knowledge documentation is only in the form of a presentation report file from the farm head to the operation head. No knowledge database can be accessed by all employees when they forget their knowledge. Moreover, the company has started benchmarking with other companies but is limited to Operation Management Head and farm head due to a limited number of farmers. They study other farms that are more modern compared to PT. Organic Farm.

 

Learning and Innovation

PT. Organic Farm encourages a learning and innovation culture in the company by motivating employees to try new things they have never done before. Mr. RZ confirms the statement:

 

“For me, innovation is a must. I encourage my team to try something new in every weekly coordination meeting. Most importantly, they want to try new things and as a leader, we are ready to take a risk. In real practice, sometimes the result is success or failure. However, the most important thing is that I always push them to create something new. If you want to get new results, you should try new ways.”

 

At the moment, PT. Organic Farm still motivates the employee to do knowledge sharing verbally. Incentives and rewards in conducting knowledge sharing or production performance-based rewards have yet to be in place. Mrs. ER commented:

 

“Organic farm has not implemented reward-based performance and knowledge sharing reward. What we do now is a motivational reward that is given incidentally. We choose the employee subjectively based on their discipline and good attitude.”

 

Outcomes

PT. Organic Farm focuses on farm productivity increase to maximize profitability. The company tries to improve processes such as pest management to increase crop output and manage the organic wastes from farming activity. Mr. RS commented:

 

“In Ciherang, so many organic wastes cannot be treated well. With limited knowledge, I create compost to increase soil nutrient content. To confirm the compost content, I try to apply the compost to plant bok choy and the result is quite good.”

 

As a result, pests can be more controlled, which decreases the rejection rate. Moreover, the company also does knowledge sharing improvement by conducting Sarasehan to enhance knowledge delivery to the employee. 

 

There is no difference between quantitative and qualitative data results. Both data strengthen each other to understand why specific categories have low or high scores. Relying on quantitative data or qualitative data only will mislead the company to propose a strategy to enhance knowledge management implementation. Hence, combining the two methods in the knowledge management maturity assessment will ensure validity.

CONCLUSION

To enrich the assessment result, the study aims to assess the knowledge management maturity level in vegetable farming using a mixed quantitative and qualitative analysis method. The study was conducted at PT. Organic Farm that located in Jolok and Ciherang. The result shows that the maturity level is still at the initiation level, with a total APO score of 115,9. The qualitative result, done by doing an interview and focus group discussion with the leaders, also strengthens the quantitative result. The implementation of knowledge management in the company is still in the form of informal sharing. The company lacks externalization and codification of knowledge, making the knowledge easily vanish and the production process unstable. Additionally, people's development in the form of training or reward-based performance is not yet in place. Some solutions offered to the company to improve knowledge management implementation are creating a knowledge management portal, providing regular training programs for employees and reward-based incentives to enhance knowledge management implementation.

REFERENCES
  1. Kianto, Aino et al. "The impact of knowledge management on knowledge worker productivity." Baltic Journal of Management, vol. 14, no. 2, 2019, pp. 178–197, https://doi.org/10.1108/BJM-12-2017-0404.

  2. Byukusenge, Eugene and J.C. Munene. "Knowledge management and business performance: Does innovation matter?" Cogent Business and Management, vol. 4, no. 1, 2017, p. 1368434, https://doi.org/10.1080/23311975.2017.1368434.

  3. Escrivão, Gabriela and Sérgio L. D. Silva. "Knowledge management maturity models: Identification of gaps and improvement proposal." Gestão and Produção, vol. 26, no. 3, 2019, e3890, https://doi.org/10.1590/0104-530x3890-19.

  4. Asian Productivity Organization. Knowledge management: Tools and techniques manual. APO, 2020, https://www.apo-tokyo.org/publications/knowledge-management-tools-and-techniques-manual/. Accessed 24 May 2025.

  5. Wijetunge, Pradeepa. "Assessing knowledge management maturity level of a university library: A case study from Sri Lanka." 2012.

  6.  APQC. APQC KM Capability Assessment Tool. 2016, https://www.apqc.org/sites/default/files/files/KMCAT_Webinar_Revised_201612.pdf. Accessed 24 May 2025.

  7. Hajric, Ema. A theoretical and practical guide for knowledge management in your organization. 2018.

  8. Ben, Z. "The relationship between organizational innovations, internal sources of knowledge and organizational performance." International Journal of Managing Value and Supply Chains, vol. 6, no. 1, 2015, pp. 53–67.

  9. Damanpour, Fariborz W. "Combinative effects of innovation types and organizational performance: A longitudinal study of service organizations." Journal of Management Studies, vol. 46, no. 4, 2009, pp. 650–675.

  10. Montequín, Víctor R. et al. "An integrated framework for intellectual capital measurement and knowledge management implementation in small and medium-sized enterprises." Journal of Information Science, vol. 32, no. 6, 2006, pp. 525–538, https://doi.org/10.1177/0165551506067127.

  11. Forijati, Meilina R. and Muhammad N. Muzaki. "Influence of personal knowledge, technology and communications on knowledge management of small and medium enterprises." International Journal of Research and Review, vol. 9, no. 10, 2022, pp. 334–343, https://doi.org/10.52403/ijrr.20221040.

  12. Perez, A. et al. "A methodology for the development and implementation of knowledge management strategy in a Mexican SME trading company." Management Studies, vol. 13, no. 2, 2015.

  13. Pooncharoen, Niti. "The effects of economic factors and knowledge management practices on the productivity of small farmers in the north of Thailand." International Business Management, 2016.

  14. Kusnadi, E. et al. "Implementation of knowledge management system in cattle farming." ILKOM Jurnal Ilmiah, vol. 13, no. 1, 2021, pp. 36–44, https://doi.org/10.33096/ilkom.v13i1.785.36-44.

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