10120140504009

International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 4, April (2014), pp. 73-88 © IAEME
73
ANALYSIS OF KNOWLEDGE MANAGEMENT IMPLEMENTATION AT
THE STATE-OWNED ENERGY SECTOR COMPANIES IN INDONESIA
Sri Suwarsi
Doctoral Student, Economic and Business Faculty of Padjadjaran University, Bandung, Indonesia
Lecturer of Bandung Islamic University, Bandung, Indonesia
Ernie Tisnawati Sule
Professor, Economic and Business Faculty of Padjadjaran University, Bandung, Indonesia
Hilmiana
Associate Professor, Economic and Business Faculty of Padjadjaran University, Bandung, Indonesia
Arief Helmi
Associate Professor, Economic and Business Faculty of Padjadjaran University, Bandung, Indonesia
ABSTRACT
An organizational environment has undergone dramatic change lately. To be able to win the
competition in the long term, the company should have the right strategy. In this case, the main task
of a leader associated with the management of human capital is how to encourage optimal
performance of human resources through the implementation of knowledge management to facilitate
knowledge workers to trasfer knowledge, so that he ables to construct, renew, and applying
knowledge to achieve organizational effectiveness.
The successful implementation of knowledge management in this research could be measured
by the 7 (seven) dimensions, namely: (1) Knowledge Creation, (2) Knowledge retention,
(3) Knowledge transfer, (4) Knowledge Utilization, (5) Managerial and Leadership suports,
(6) Corporate Entrepreneurship, (7) Application of technology.
The units of analysis in this study were the state-owned energy sector companies in
Indonesia, because these state companies have strategic roles in the Indonesian economy, especially
to ensure the availability of sources of energy supply to drive the industries in the process of
production, consumption, as well as a source of foreign exchange earnings. The research methods
were description and verification. The populations of study were all the branch offices or regional
offices on the 5 (five) state-owned energy sector companies in Indonesia. The units of observation
in this study were represented by the secondary manager, line manager and employees of the state-
INTERNATIONAL JOURNAL OF MANAGEMENT (IJM)
ISSN 0976-6502 (Print)
ISSN 0976-6510 (Online)
Volume 5, Issue 4, April (2014), pp. 73-88
© IAEME: www.iaeme.com/ijm.asp
Journal Impact Factor (2014): 7.2230 (Calculated by GISI)
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74
owned energy sector companies in Indonesia, which were 245 respondents spread over 25 (twenty
five) branch offices in thoroughly Indonesia.
The result showed that the implementation of knowledge management as measured by the 7
(seven) dimensions was classified well. The ranks of the seven dimensions were the highest score
was management and leadership suports, the second was the aplication of technology, the corporate
entrepreneurship was the third, the fourth sequence was the knowledge transfer, the knowledge
retention was the fifth, the sixth dimension was occupied by the knowledge utilization and
knowledge creation. Based on the average right side test (µ > 6), the results are significant at the 5%
significance level and the statistical null hypothesis was rejected. This means that the implementation
of knowledge management has been achieved well. Based on the measurement model (outer model
and the loading factor) with PLS, it could be concluded that the dimensions of corporate
entrepreneurship greatest effect on the variable, and it was able to predict the dimensions of
knowledge management utilization, and the dimensions of application technology was only able to
predict the implementation of knowledge management.
Keywords: Knowledge Management, Knowledge Creation, Knowledge Retention, Knowledge
Transfer, Knowledge Utilization.
BACKGROUND RESEARCH
Changes in the business environment is strongly to influence organizations, so they
requires organizations to constantly adapt to the changing demands of the various alignment with
the various environmental changes on the variety of strategies and policies, especially in terms of
increasing human knowledge.
Generally, the state-owned energy sector company problems in Indonesia mostly caused by
various factors, both internal and external factors. The internal factors are the lack of a culture of
creativity to come up with ideas, mostly focused on achieving profit and ignore the human
capital development, and so on. Thus, the organizational performance is not optimal, such an
attitude of service, innovation, productivity, and quality of human resources that lead to superior
organizational culture.
In fact, the government organizations and state-owned companies currently face high
demands in terms of service, nevertheless, based on research Barzelay (1992), the public
organization progress in terms of performance has not improved, that one factor is knowledge
(best practice) that was owned by the state was minimal. Besides that, the state-owned energy
sector companies were very limited in the control best practices to provide effective service and
low competitiveness.
Since the privatization program by the government to provide the opportunity for the
state-owned energy sector companies to go public and direct placement, inevitably, the
performance of the state-owned energy sector companies should spur them to face competition in
the global market, as well as a manifestation of the company's commitment to the confidence of
stakeholders, especially the shareholders. Besides the state-owned companies are also expected
to expand into overseas markets, as well as some of China's state-owned energy which is
currently acquiring energy resources abroad in anticipation of domestic energy security needs,
and even according to the Fortune 500, there are three Chinese state-owned energy the top 10
companies are China National Petroleum, Sinopec and State Grid. While in Indonesia, yet none
of the state-owned companies that made it even into the 500 list of large companies.
Along with the increasing population growth, economic activity, industry and technology,
it will also increase the need for the provision of energy to drive the activity. While on the other
hand, the state-owned energy sector companies still plenty of resources to rely on fossil energy

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supply which are very limited and non-renewable, such as oil, gas, and coal. If we look at the
elasticity of energy in Indonesia compared with other countries, it is still high. The energy
elasticity is the ratio between the growth rate of energy consumption with economic growth. The
smaller the elasticity, the more efficient use of energy in a country.
The energy source used for industry in Indonesia comes from electricity, and fuels
derived from fossil fuels such as diesel, gasoline and gas. This energy source is very important
role in industrial development and an increasingly modern society.
By looking at the conditions expected state-owned energy sector companies need to create new
breakthroughs in making strategic energy planning in Indonesia environmentally sound, raise the
price of energy so as to suppress the drop in energy demand, developing technologies to produce
energy more efficiently, and increase the creation of renewable energy innovation, energy
include water, energy mini / micro hydro, geothermal, biomass , solar energy and wind energy.
While it is to create a climate of innovation and learning processes, they companies can
implement the knowledge management, but the implementation requires a favorable climate for
the development of knowledge, maintenance of knowledge, transfer of knowledge, application of
knowledge, leadership support, knowledgeable staff, and the support of technology.
With a structured knowledge management and integrated systems, the state-owned energy
sector companies in Indonesia have a lot of knowledge workers as a source of knowledge
creation and corporate entrepreneurship in the face of complex challenges, Jones (2000). To
assess whether the application of knowledge management in the state-owned energy sector
companies in Indonesia has been able to improve organizational performance, it requires
evaluation. By the implementation of knowledge management performance assessment can be
determined whether the implementation of knowledge management has been achieved well or
not.
BASIC THEORY
Implementation of Knowledge Management is a process for creating, documenting,
sharing, and to update the knowledge in the organization is supported by the company's main
pillars which include Leardership, and technology, so that it becomes a culture of knowledge
sharing in the company (Nonaka,2009; Alavi (2001); Newman (1999)
Meanwhile, according to Davenport (1998) there are five strategies for implementing
KM, namely; Managerial, Leadership, Corporate Entrepreneurship, Organizational structure. KM
sharing and retention. Newman & Conrad (2000) described the process of implementing KM
models in four main activities, namely: (1) Knowledge Creation, which is an activity associated
with the entry of new knowledge into the organization that includes the development of
knowledge, knowledge discovery, and absorption of knowledge, (2) Knowledge retention, which
is an activity associated with the maintenance and storage of knowledge, including knowledge of
activities to keep the knowledge remains within the organization, (3) Knowledge transfer, which
is an activity that is related to the flow of knowledge from one party to the other party, which
includes communications, translation, conversion, filtering and knowledge translation, (4)
Knowledge Utilization, which is an activity associated with the application of knowledge to the
organization's business processes.
The successful implementation of knowledge management can also follow the criteria
MAKE (Most Admiral Knowledge Entreprises) Award was initiated by Teleos that serve as the
award through a national competition, Asia and globally. There are 8 indicators that serve as the
success of KM, namely: Knowledge driven culture, Knowledge workers, Knowledge-based
products/services/solutions, Maximizing entreprise intellectual capital, Collaborative knowledge

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sharing, learning organization, Value based on customer knowledge, Transforming enterprise
knowledge into wealth organization.
Based on the study of Chong (2005), Wong (2009) and Albers (2009), there are eight
factors were seen as a key factor in the successful implementation of knowledge management,
namely: (1) a structured process, (2) the existence of people who are experts, (3) the presence of
a champion, (4) the support of upper management, (5) organizational culture, (6) information
technology support, (7) the existence of a special unit of knowledge management and
(8) clear measure of success.
Based on a variety of these opinions, then the application of knowledge management
performance measurement in this study can be measured with 7 (seven) dimensions, can be seen
in the following Table 1:
Tabel 1: The Dimension of Implementation Knowledge Management
Dimensions of critical factors Related research studies
Knowledge Creation Nonaka & Takauchi : 1995; Horwitch & Armacost
:2002; Allee: 1997; Davenport: 1998; Alavi & Leidner
:2001; Bassi ; 1997; De Jamet :1996; Scarborough
:1999; dan Newman & Conrad (2000)
Knowledge Retention Schultze & Leidner :2002; Horwitch & Armacost
:2002; Laodon :1999; Bassi ; 1997;Quintas :1997;
Scarborough :1999; dan Newman & Conrad (2000)
Knowledge Transfer Maggie Haines: 2002; Schultze & Leidner :2002;
Hansen & Nohira : 1999; Bhatt : 2001; Allee: 1997;
Davenport: 1998; Alavi & Leidner :2001; Huysman &
De Wit : 2000; Beckman :1999; Bassi ; 1997; Bassi ;
1997; De Jamet :1996; Scarborough :1999; dan
Newman & Conrad (2000)
Knowledge Utilization Abell & Oxbrow :2001; David J Skyrme :1997;
Beijerise : 1999; O’Dell : 1997; De Jamet :1996;
Scarborough :1999; dan Newman & Conrad (2000)
Management and Leadership
Suport
Scarborough & Carter :2000; ( Nonaka : 2002; Alavi &
Leidner: 2001 , Newman & Conrad :2000); Kusno
Prijono : 2008; Jones : 2002; Davenport :1998; Chong
:2005; Wong : 2005; dan Albers : 2009.
Corporate Entrepreneurship Hibbard : 1997; Jones : 2002; Malhotra : 1998;
Beckman : 1999; dan Scarborough & Carter :2000.
Application of Technology Hansen & Nohira : 1999; Davenport :1998; Snowden:
1998; Bassi ; 1997; Frappaulo & Toms :1997; Nonaka
: 2002; Alavi & Leidner: 2001 , dan Newman &
Conrad :2000).
RESEARCH METHODS
The method of analysis used in this study was divided into two parts: (1) Descriptive
analysis and (2) inferential analysis. The unit of analysis of this study was the organization,
namely Branch Offices / Regional Offices of state-owned energy sector companies in Indonesia,

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which is spread over 25 (twenty five) branch offices or regional offices in thoroughly Indonesia on
the 5 (five) state-owned energy sector companies in Indonesia.The unit of observation in this study
was the number of 245 respondents consisting of 38 middle managers, 67 line managers and 140
employees / staff to assess how their perceptions of the variables being studied.
This questionnaire using Graphic Rating Scales in which respondents were asked to choose each
question with an answer on a scale of continum from 1 to 10, and their perceptions of the
phenomenon that was going through the survey. The scale used in the questionnaire was an
interval scale.
DISCUSSION
Entry Level Analysis of New Knowledge into the Organization
The knowledge creation is in the implementation of knowledge management activities
associated with the entry of new knowledge into the organization which can be measured by the
frequency of the development of new knowledge in the organization, the frequency of new
discoveries in the organization and knowledge absorption capability in the organization. The
implementation of knowledge management in knowledge creation dimensions were measured
using 3 point questions, the results can be seen in the following Table 2.
Table 2: Entry Level of New Knowledge in Organizations
No. Item Questions
Average
Score
Criteria
1
The level of development of new knowledge in
the organization
6.96 high enough
2
The frequency of discovery of new knowledge in
the organization
6.75 quite often
3
Knowledge absorption capabilities of employees
in the organization
6.84 quite capable
Sources: Processing questionnaire data in 2014
The summary results for the respondents knowledge creation dimension in the knowledge
management implementation indicate that the implementation of knowledge management in the
state-owned energy sector companies in Indonesia was quite good, meaning that the
implementation of knowledge management in the form of the entry into organizational knowledge,
as measured by the level of development of new knowledge in the organization considered quite
high, the frequency of discovery of new knowledge in the organization considered quite often, and
knowledge absorption capabilities of employees in the organization considered quite capable.
The knowledge creation in the knowledge management is the process of beginning to get the process
of knowledge creation, organization, dissemination and utilization of knowledge in organizations. A
good model of learning from a variety of information that exists outside the organization will
improve the quality of judgment and knowledge in order to create knowledge (knowledge creation).
Based on the data from many things were done by the state Energy Sector in Indonesia to
create knowledge creation in the organization, some of them to form the KM CoP (Community of
Practice) to create a forum sharing, collaboration and problem solving in the form of Sharing &
Discussion Forum (FDS), Peer Group Discussion (FGD), and the Working Group Discussion
(WGD).

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Maintenance Activity, Storage and Knowledge Organization Keeping Analyses
The knowledge retention is the implementation of knowledge management activities
associated with the maintenance and storage of knowledge, including knowledge of activities to
keep the knowledge remains within the organization. The knowledge retention can be measured
by the level of maintenance of an environment conducively to knowledge sharing, company or
organization's ability to document the existence of knowledge within the organization and
continuity of knowledge sharing as a means to retain knowledge. The implementation of
knowledge management in knowledge retention dimension was measured using 3 point questions.
The results can be seen in the following Table 3.
Table 3: Maintenance Activity, Storage and Organizational Knowledge Keeping Assessments
No. Item Questions
Average
score
Criteria
1 Climate for sharing knowledge 7.00 Conducive
2
The ability of an organization to document
knowledge
6.83
Good
Enough
3 Knowledge sharing routines 6.76
Simply
Routine
The summary scores for the dimensions of the calculation results in the retention of
knowledge knowledge management implementations described above indicated that the activities of
maintenance, storage, and how to maintain organizational knowledge on the state-owned energy
sector companies in Indonesia was quite good, meaning that the implementations of knowledge
management in that companies in Indonesia have supported with a climate that was conducive to
sharing knowledge among members of the group, the ability to document that knowledge was not
lost quite good, and routines for knowledge sharing fairly routine.
The climate conduciveness were to share knowledge through a variety of ways, either directly
or indirectly. The direct sharings were through the meeting forum, innovation forum, discussion and
problem solving. The indirect sharings were through the library, e-library, knowledge center, internet
media and email.
As for the activities of maintenance, storage and how to maintain knowledge on state-owned
energy sector companies in Indonesia and based on the observation and documentation, it can be
explained as follows PT Pertamina has implemented a culture of knowledge sharing through a
knowledge portal implemented formally or informally through a container called a community of
practice.
Various activities of maintenance, storage and method to retain knowledge that other
organizations such as PLN in (1) inventory and acquisition of knowledge through: knowledge
capturing, library, e-library, knowledge center, (2) knowledge activity through: engineering forums,
innovation forums, discussion forums for sharing problems, collaborations, discussion forum
sharings, peer group discussions, working group discussions. While among regions throughout
Indonesia, the sharing knowedge conducted periodically by presenting senior officials and experts
who were attended by the representatives of each unit. It aimed for sharing knowledge and
experience for a precaution in case of similar problems in other generating units.
Analysis of Willingness to Share Knowledge, Usefulness Forum, and Frequency Translation
of Knowledge
Knowledge transfer is an activity in the implementation of knowledge management related
to the flow of knowledge from one side to the other parties, which include communication,

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conversion, filtering, and the translation of knowledge through the forums. This activity can be
measured by the ability of employees to share knowledge between colleagues, use the forum to
gain new knowledge, and the frequency of communication and translation of knowledge through
learning process. The implementation of knowledge management in knowledge transfer dimension
was measured using a 3 point question, the results can be seen in the following Table 4.
Table 4: The Level of Willingness to Knowledge Sharing, Benefit Forum and Frequency
Translation of Knowledge
No. Item Question
Average
Score
Criteria
1 The level of willingness to knowledge sharing 6.94 High enough
2 The usefulness of the forum to gain knowledge 6.91 Quite Helpful
3
Frequency translation of knowledge through
communication
6.77 Quite Often
Respondents to the dimensions of knowledge transfer in knowledge management
implementation indicate that the level of willingness to share knowledge, usefulness forums, and
frequency translation of knowledge were good enough. This means that the implementations of
knowledge management in the state-owned energy sector companies in Indonesia were supported by
the willingness of individuals to share knowledge between individuals or groups were high enough.
The benefit of the forum to gain knowledge was quite useful, and the degree of elaboration of
knowledge through communication was still considered quite often.
The success of knowledge transfer in the implementation of knowledge management was
largely determined by the willingness of each individual to share knowledge. In many cases, the
failures were due to the implementation of knowledge management aspects of behavior that is an
unwillingness to share knowledge, indiscipline in writing what had been in what from the work
process (experience) and tend to the oral culture, still at least the employees who use the forum to
gain knowledge, and difficulties in the translation of knowledge into effective communication.
To support the success of knowledge transfer in the state-owned energy sector companies in
Indonesia, it has been implemented knowledge management. For example, in Pertamina, it called
comet which was launched in November 2008. Portal Pertamina which is a portal that uses web-
based technologies for making knowledge sharing for all stakeholders. The knowledge sharing
activities intended that each worker can share experiences and knowledge among colleagues.
Various methods have been carried some of the state-owned energy sector companies to get
the involvement and willingness of employees to share knowledge both offline and online. The off-
line activities include expert, roundtables, workshops, bulletin media, and company news. While, the
on-line activities include the community of practice, knowledge center, and ask the expert.
Analysis of the Application of Knowledge to Business Processes
Knowledge utilization is an activity in the implementation of knowledge management related
to the application of knowledge into business processes. The activity knowledge utilization can be
measured through the level of willingness of employees to share knowledge among colleagues, the
use of forums to gain knowledge, and frequency translation of knowledge through communication
and learning. The implementation of knowledge management in the utilization of this knowledge
dimension was measured using a 4 point questions. The results can be seen in the following Table 5.

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Table 5: Application of Knowledge into Business Processes
No. Item Question
Average
Score
Criteria
1 Frequency of product development /
knowledge-based solutions
6.7 quite Often
2 Knowledge management capabilities to create
value human
6.82 Capable Enough
3 Knowledge management capabilities to create
value for stakeholders
6.91 Capable Enough
4 The structure of the application process
knowledge
6.89
Structured
Enough
The results for dimensions of the respondents' assessment of knowledge utilization in the
implementation of knowledge management were the application of knowledge to indicate the
business process in the implementation of knowledge management in the state-owned energy sector
companies in Indonesia were quite good. It means the utilization of the results of the implementation
of knowledge management which includes the frequency of development of the product / solution
knowledge base was enough often, the knowledge management capabilities to enhance the value of
human to human capital and the value for stakeholders were capable enough, as well as the
knowledge of the application structured processes were quite structured.
The results of these assessments over a portrait of that application knowledge into business
processes in the state-owned energy sector companies in Indonesia were in good levels. In other
words they were not optimal yet, because the knowledge utilization was a measure of the utilization
of the implementation of knowledge management in order to increase the value of the actual
activities of the organizations.
In this case, it can be explained from the observation and documentation that the application
of knowledge in the business process can be done in various ways : (1) the forum, this method allows
its members to gain as much knowledge as possible through the process of interpersonal
communication about the topics through questioning and interaction directly where any new
information and knowledge can be distributed and received by the employees, (2) the media, through
the media, the company seeks to share knowledge to stakeholders through information that was
explicit knowledge. In addition, to share the corporate knowledge, they can also do the evaluation
and improvement of the company through customer feedback form of input and criticism from
customers, (3 ) on-line portal, used as a means for employees in order to work optimally seek
information and knowledge easily and quickly, and also as a means to transfer knowledge that is
more active, faster, and without a limit of distance and time.
If the levels were measured by using maturity models in the implementation of knowledge
management in the state-owned companies in the Energy Sector in Indonesia is categorized in level
3. It was a common process and approach, that characterized by the utilization rate results in real
business activity that was assessed fairly. Thus, the real results of the knowledge management were
still not optimized yet to improve the effectiveness and efficiency in the economies of scale.
Analysis of Leadership Support Level in Implementation of Knowledge Management
The implementation of knowledge management can run optimally if there is support from
the leadership with concrete steps to realize the implementation of knowledge management in any
business activity. The management support includes top management support, the existence of a
special unit to carry out activities of knowledge management is one form of management support,
and the willingness of leaders to make knowledge sharing as a work culture of the organization. The

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implementation of knowledge management on management and leadership support dimension was
measured using a 3 point question. The results can be seen in the following Table 6.
Table 6: The leadership support level in the implementation of knowledge management
No. Item Question
Average
Score
Criteria
1
Top-level management support in the implementation
of KM
7.18 support
2
Performance special unit set up to run the activities of
KM
7.03 high
3
The willingness of the leadership to make knowledge
sharing as the organization's work culture
7.36 high
The respondents to the dimensions of management and leadership support in the
implementation of knowledge management in the state-owned energy sector companies in Indonesia
were considered good. It means that the implementation of knowledge management has got the
support from upper management, supported by the high performance of a special unit set up to
execute knowledge management activities, and also the presence of a high willingness to make
knowledge sharing leadership as the organization's work culture .
The Implementations of knowledge management initiatives were good involvement in all
levels of the organization, the level of strategic, operational and tactical levels.
In the framework of implementation of any system in the organization, it will be able to work
optimally if they received the full support and commitment from top management. Similarly, in the
implementation of knowledge management it needs the support of top management and involvement
under management for successful implementation of knowledge management. The implementation
of knowledge management initiatives are good involvement in all levels of the organization, for the
level of strategic, operational and tactical levels, because the leadership role in providing support in
terms of providing resources and funding, motivating, organizing and evaluating the implementation
of knowledge management. The good management support and leadership in the implementation of
knowledge management in the state-owned energy sector companies become succesfull of capital
importance in the implementing knowledge management.
Analysis of Entrepreneurship Cultural Climate Level as Result of Implementation
Knowledge Management
Corporate entrepreneurship is a measure of the success of the implementation of knowledge
management in the company, namely the extent to which emerging entrepreneurial culture within
the organization in order to representing a new product / service. Dimensions of corporate
entrepreneurship can be measured by the number of knowledge workers (workers knowledgeable)
in the organization that is able to create innovations, improved problem solving in the organization,
and increased employee expertise in support of the development process, new products or services
within the organization. The implementation of knowledge management in the corporate dimension
was measured by using 3 entrepreneurhip questions. The results can be seen in the following
Table 7.

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Table 7: Entrepreneurship Cultural Climate levels as a resulting of knowledge management
implementation
No. Item Question
Average
Score
Criteria
1 The number of knowledge workers
(knowledgeable employees) 7.22 many
2 Support a culture of learning effort, the process
of problem solving, and innovation 6.97
Supporting
enough
3 Increased employee expertise in supporting the
development of processes, products / services
that are new
7.08 high
Sources: Data processing questionnaire in 2014
The assessment results for the dimensions of the respondents indicated that the
implementation of knowledge management in the state-owned energy sector companies in Indonesia
was considered by the aspect of corporate entrepreneurship, meaning that the implementation of
knowledge management has resulted in the many knowledge workers, lack of support enough as a
culture of learning, problem-solving process, and innovation, as well as an increase in high-skill
employees in supporting the development of processes, products / services those were new.
The knowledge management system that treats intellectual capital is as an asset that needs to
be managed so as to create widespread knowledge workers in the organization because of the
continuous learning process, and is able to create the expertise of employees to support the
development and creation of new products and services to meet the demands current business
developments. Especially business in the field of energy, it is need for new breakthroughs to create
new sources of energy in anticipation of the new scarcity of fossil energy sources to switch to
renewable energy. It requires employees to create a knowledgeable and skilled corporate
entrepreneurship.
Application of knowledge management in an organization will be visible when the
knowledge add value and will increase in size if used in knowledge transfer or knowledge sharing in
the form of delivery of a place, person or other parties. Implementation of knowledge management
will also serve members of the organization in the mental construct of entrepreneurship, innovation
and the knowledge to master the problem and the solution. This case is in line with studies by
Liebowitz and Chen (2003). The implementation of knowledge management will also encourage
individual behavior for continuous learning and sharing that will be a source of creativity and
innovation.
The stages that have been undertaken by the state-owned energy sector companies in creating
a climate of entrepreneurial culture were through awards both within and outside the country. For
example, in 2011, Pertamina received an award at the event Indonesian, Most Admired Knowledge
Entreprise (MAKE ), and in 2012 the event of MAKE Award based on Knowledge Management
organized by PT Dunamis Organization has won one state-owned company engaged in the field of
knowledge-based energy that the most admired in Indonesia.
Analysis of Role of Technology in Knowledge Transfer Process
The application technology is a dimension to measure the extent of technology play a role in
the process of knowledge transfer means whether the implementation of knowledge management is
supported by both technology and documentation in the process of knowledge transfer within the
organization. In addition, the level of access to which applications to share knowledge across all

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areas of the division / branches or regions that are not limited by distance and time and the level of
content on-line updating of the knowledge which is used as a reference source. The dimensions of
knowledge management implementation in the application of this technology were measured using
a 3 point questions. The results can be seen in the following Table 8.
Table 8: The role of technology in knowledge transfer process
No. Item Questions
Average
Score
Criteria
1
Information technology support for knowledge
transfer process 7.29 high
2
Frequency of access level existing applications to
share knowledge 7.00 often
3
The level of on-line updating of content as a
reference source of knowledge 7.01 high
Sources: Data processing questionnaire in 2014
Based on the results of the respondents' assessment of the role of technology in the
knowledge transfer process, it indicated that the implementations of knowledge management in the
state-owned energy sector companies in Indonesia have been well supported by the technology. This
means that the implementation of knowledge management has been supported by high technology in
the process of knowledge transfer; higher frequency (often), the level of access existing applications
to share knowledge, and has been supported by the high level of content on-line updating used as a
reference source to gain knowledge of employees.
No doubt, the implementation of knowledge management is now different from the old era,
where that current developments in information technology can be utilized to increase the speed and
ease in the process of acquiring and sharing knowledge without being limited by distance and time.
The main successful key of implementation of knowledge management consists of three main
components, namely people, place and content.
Based on the observation and documentation, state-owned energy sector companies have had web
site connected centrally with the Ministry of state-owned energy sector companies. Every state-
owned energy sector company had a web site that can be accessed by employees, partners, and
consumers who want to know various things about the company, and open a dialogue via email,
facebook, tweeter and a hotline.
In addition, each state-owned energy sector company for smooth communication among
workers and between management and labors have had and developed a corporate portal that can be
exploited and optimized by all workers to support communication in their daily work, which
features, among others: (1) corporate e-mail as a communication medium, (2) the application of e-
mail archiving sms to administer, (3) the application of e-absent to monitor the presence of workers;
application of knowledge management as a means of sharing knowledge and best practice in their
field of work each.
Table 8 describes the overall perception of the implementation of knowledge management in
thye state-owned energy sector companies in Indonesia, that measured by the 7 dimensions of the
actual value of 6.97 as classified quite well.

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Table 9: Recapitulation implementation of knowledge management of state-owned energy sector
companies in Indonesia
Dimension Total score Category
Knowledge Creation 6.85 Good Enough
Knowledge Retention 6.86 Good Enough
Knowledge Transfer 6.87 Good Enough
Knowledge Utilization 6.85 Good Enough
Management and Leadership Suport 7.19 good
Corporate Entrepreneurship 7.09 good
Application of Technology 7.10 good
Number Average
Good Enough
The sample size 245
Item 22
Actual Value 37.555 6.97
Based on the seven dimensions, when assessed by the categories,there are 4 dimensions
categorized quite well, which includes the dimensions of knowledge creation, knowledge retention,
knowledge transfer, and knowledge utilization. This means that the state-owned energy sector
companies in Indonesia in the implementation of knowledge management were not optimal from the
aspect of :
a) the rate of entry of new knowledge into the organization,
b) the maintenance activity and how to maintain storage of organizational knowledge,
c) the level of willingness to share knowledge, usefulness forums, and frequency translation of
knowledge,
d) the application of knowledge into business processes.
While, the dimensions are categorized covering management and leadership suport, corporate
entrepreneurship, technology and user application. This means that the state-owned energy sector
companies in Indonesia in the implementation of knowledge management have been aspects:
a) the level of leadership support in the implementation of knowledge management,
b) the level of entrepreneurial cultural climate as a result of the implementation of knowledge
management,
c) the role of technology in the process of knowledge transfer.
Table 10: Proportion test variables
variables
Ideal
Average
Actual
average
STD Z Remarks
Knowledge Management 6 6,97 1.191 4.087 significant
**
significance at the real level 0,05 (Ztabel = 1,645)
Source: Analysis Questionnaire, 2014

85
Hypothesis
H0: µ = 6 : Implementaion Knowledge management has not been achieved
with either
H1 : µ>6 : Implementation of knowledge management has been achieved with
good
Based on the Table 10 above, it can be explained that the average test the right to knowledge
management variables, the results are significant at the 5% significance level and a statistical null
hypothesis is rejected. This means that the implementation of knowledge management has been
achieved well.
Table 11: Outer model PLS
Latent
variable
Manifest
variables
Original Sample
Standard
Deviation
(STDEV)
Standard
Error
(STERR)
T Statistics
(|O/STERR|)Outer
loadings
Outer
weights
(O)
KM
X1 0.981969 0.150112 0.003423 0.003423 43.849203**
X2 0.971025 0.147161 0.002023 0.002023 72.749041**
X3 0.956317 0.145458 0.001961 0.001961 74.171026**
X4 0.984195 0.149433 0.003251 0.003251 45.963050**
X5 0.965157 0.146447 0.001867 0.001867 78.449489**
X6 0.960664 0.150260 0.003984 0.003984 37.717611**
X7 0.930354 0.148147 0.003195 0.003195 46.363723**
The Measurement Model Implementation of Knowledge Management
The measurement model (outer model) for latent variables predicted by the dimensional
knowledge management that knowledge creation (X1), knowledge retention (X2), knowledge
transfer (X3), knowledge utilization (X4), management and leadership support (X5), corporate
entrepreneurship (X6), and application of technology (X7), can be described as following Figure 1.
Measurement model KM (X)
X1 = 0.150112 X + 0.0357
X2 = 0.147161 X + 0.0571
X3 = 0.145458 X + 0.0855
X4 = 0.149433 X + 0.0314
X5 = 0.146447 X + 0.0685
X6 = 0.150260 X + 0.0771
X7 = 0. 148147 X + 0.1344
Figure 1: Knowledge management measurement model
X1
X2
X
0.0357
0.0855
0.150112
X3
0.0314 X4
X5
0.147161
0.145458
0.149433
0.146447
0.0571
0.0685
0.0771 X6
X7
0.150260
0.148147
0.1344

86
In the measurement model of knowledge management, the dimension that had most weighs
(outer weight) was the corporate entrepreneurship (X6) of 0.150260, while the smallest dimension
weight was possessed by the knowledge transfer (X3) of 0.145458. While, the largest value of the
raw payload (outer loading) was possessed by dimensions of knowledge utilization (X4) of 0.984195
and the comunality as 0.9686. It means the knowledge utilization dimension able to predict the
knowledge management of 96.86% and the mistake of 3.14%. The smallest value of the raw payload
was owned by the technology application dimension (X7) of 0.930354, the comunality of 0.8656.
This means that the dimensions of application technology was only able to predict the
implementation of knowledge management of 86.56% and the mistake reached 13.44%. The testing
results of the outer models shown in Table 10 was 4.35, where it shows all dimensions of knowledge
management which significance at 5% (T> 1.96).
CONCLUSIONS AND SUGGESTION
Conclusion
The implementation of knowledge management in the state-owned energy sector companies
in Indonesia have achieved well.
a) Using the findings of knowledge management in the state-owned energy sector companies in
Indonesia, it has not been optimized to improve the effectiveness and efficiency in economies
of scale, such as the ability in the development of products and solutions, its ability to improve
the human value to employees, and increased value for stakeholders, because it was not
supported by aspects of an environment conducive to knowledge transfer process, especially
aspects of people. Nevertheless, by the support of the leadership of the capital, the cultural
climate of entrepreneurship and technology, the knowledge management implementation could
be further enhanced to support the successful implementation of knowledge management in the
future.
b) The successful implementation of knowledge management in the state-owned energy sector
companies in Indonesia was largely determined by the presence of corporate entrepreneurship,
which means that the support of employees who were knowledgeable, support cultural learning
and skills upgrading of employees in the process of developing new products and services.
c) The dimensions of knowledge utilization are able to predict the successful implementation of
knowledge management most largely. It means that the successful implementation of
knowledge management if the results have been utilized (utilization) by the companies in the
sense that increasing the value of products / services were finally able to provide value to
customers and stakeholders, and also capable of increase the value of the human aspect, in this
regard was the employee. The technology was merely a tool to facilitate the process of
knowledge transfer and the dimensions of application technology is only able to predict the
smallest knowledge management implementation in the model.
Suggestion
The implementation of knowledge management in the state-owned energy sector companies
in Indonesia was still not optimal. Thus, the suggestion of researchers to this aspect are :
a) It should be an increase in activity associated with the entry of new knowledge into the
organization that includes the knowledge development, knowledge discovery and knowledge
absorption. The research suggestions are: (i) it is necessary to make improvements to the
process of knowledge creation through: socialization, externalization, combination, and
internalization. The exact form of socialization is the process through knowledge transfer and

87
experience widely into the organization by forming a forum to share knowledge and
experiences. The externalization can be done by encouraging individuals to always write down
the various knowledge or experience into a media company information such as company
magazine, intranet or the company's blog. The combination can be done in a way to guide
employees through direct practice commanded by senior and experienced employees. The
internalization can be done by appreciations for employees who have been able to practice new
knowledge into her work, for example in the form of rewards in the form of financial or non-
financial.
b) It is necessary to create a climate conducive to the maintenance of knowledge either directly or
indirectly. The former is through the meeting forum, innovation forum, discussion, problem
solving, and the latter is through the library, e-library, knowledge center, internet media, and
email.
c) It is necessary to increase the frequency of access applications have been built by the
company's employees as a medium to share knowledge. Considering the most of state-owned
energy sector companies had a branch or office of a large area spread across Indonesia. Thus,
the use of meda can improve the efficiency and optimization of untrammeled by distance and
time.
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