implementing elements of knowledge management in the years 2007-2012
3.3. Knowledge management and innovation introduction in food industry companies
Knowledge is a critical resource used in the management of the com-pany. Knowledge combined with the creativity, the innovation and skilful workers forming so-called innovative culture are important to the growth of innovative competitiveness of enterprises. The study identifi ed the sourc-es of knowledge used by the food businsourc-ess, and asssourc-esssourc-es their suitability on the basis of responses using the data source of knowledge. Adopted scale was from 0 to 3, where 0 – means disused source, 1 – source of little use, 2 – a useful source, 3 – very useful resource. Sources of information used by the surveyed enterprises of the food industry and the extent of their useful-ness are presented in Figure 21.
Surveyed companies among answers given in the questionnaire on sources of knowledge most often indicated partnership with customers and suppliers, as well as external training. Least likely knowledge came from the acquired businesses and the cooperation with universities or re-search centres. According to the respondents, useful or very useful source of knowledge is to work with customers – so considers 95.9% of the re-spondents, and cooperation with suppliers – so thinks 94.4% of respond-ents. For 75.7% of respondents useful or very useful are the external train-ings, and for 69.7% of such sources of knowledge is a market research.
For the less useful sources of knowledge were considered cooperation with universities or research centres – such opinion have 65.2% of respondents, and cooperation with consulting companies that 56.6% of respondents con-sidered a source of little use. The average ratings of the surveyed companies regarding the suitability of the different sources of knowledge are presented in Figure 22 (the higher the average the higher the usefulness of the source of knowledge).
9,7%
Universities and research centres cooperation
Clients cooperation
Suppliers cooperation
Strategic investors
Acquired companies
New employees No opinionLittle use Useful Very useful Fig. 21. Sources of information used by the surveyed enterprises of the food industry Source: own study.
1,7
2 1,8
1,4
2,1 1,9
1,5 1,2
2,7 2,7
1,7 1,4 1,9
0 0,5 1 1,5 2 2,5 3
Average note
Fig. 22. The rating the usefulness of sources of knowledge in the opinion of companies that have used them in 2007-2011
Source: own study.
On average, the best evaluated sources of knowledge, used by the sur-veyed enterprises of the food industry are: cooperation with customers and suppliers (average score 2.7), market research (mean score 2.1) and external training (average score 2.0). In contrast, the worst rated was collaboration with universities or research centres (average score 1.2), or with consult-ing companies (mean score 1.4), and the knowledge derived from acquired businesses (average rating 1.4).
The study also determined what actions support the acquisition and transfer of knowledge, which were carried out by the companies of the food industry in 2007-2011. The degree of usefulness of these measures for the purpose of acquisition and transfer of knowledge was also assessed.
The results are presented in Figure 23.
4,1%15,7%
9,7%
18,0%
9,0%15,0%
24,0% 10,1%
17,6%
39,7%
35,2%
13,9%
42,7%
52,8% 41,2%
38,2%
36,0%
39,3%
39,7%
30,3%
17,2% 44,6%28,5%14,6%
7,5%
37,5%
12,0%
6,0% 0 10 20 30 40 50 60 70 80 90 100й
Internal trainings
The education system of employees through training in the different departments and branch offices
The turnover of staff positions
Working teams of employees from different levels and departments Care of experienced staff on the development of junior staff careers (mentoring)
Informal meetings of employees such as field trips
Issuing a newspaper/newsletter No opinionLittle use Useful Very useful Fig. 23. Measures to support the acquisition and transfer of knowledge realized by the surveyed enterprises of the food industry in 2007-2011 Source: own study.
Among the listed activities that support the acquisition and transfer of knowledge enterprises usually pursue activities related to internal train-ing, supervision of experienced employees on career development jun-ior staff (mentoring) and a system of rotation of employees in positions.
The least frequent activities consisted of the issuance of a newspaper/
newsletter and the creation of working groups of employees from different levels and departments. According to the respondents useful or very use-ful measure supporting the acquisition and transfer of knowledge are train-ings – such answer was given by 85.8% of respondents using this source.
Next place is taken care of experienced staff on career development of jun-ior staff (mentoring), as assessed by 77.2% of respondents, and practices in different departments or branch offi ces (66.7% of respondents). Most re-spondents considered little useful the issuance of a newspaper/newsletter by the company (52.8% rating) and organizing the informal workers meetings (e.g. joint trips) – (42.7% rating). The average assessment of the usefulness of the indicated activities that support the acquisition and transfer of knowl-edge is presented in Figure 24.
2,4
2,1
1,7 1,7
2,3
1,6 1,4
0 0,5 1 1,5 2 2,5 3
Internal trainings The education system of employees through training in the different departments and branch offices The turnover of staff positions Working teams of employees from different levels and departments Care of experienced staff on the development of junior staff careers (mentoring) Informal meetings of employees such as field trips Issuing a newspaper /newsletter
Average note
Fig. 24. The assessment of activities that support the acquisition and transfer of knowledge in the opinion of enterprises implementing these
activities in 2007-2011
Source: own study.
On average, most respondents highly evaluated internal trainings for the acquisition and transfer of knowledge in the surveyed enterprises (mean
score 2.4) and the care of experienced staff on the development of lower-level employees career (average score 2.3). Considered to be the least useful was issuing newspapers/newsletters (average rating 1.4).
The surveyed companies used different types of systems and tools for storing information and internal communication (Fig. 25). Most business-es, as much as 91%, use the Internet and electronic mail (e-mail) – 82%.
The next most commonly used systems are workfl ow system (47%) and data warehousing (23%). The least frequently used means of communication are Intranet (8%) and video conferencing (5%).
15%
Management supporting system, i.e. SAP Client management supporting systems, i.e. CRM Data centres Systems workflows Team work supporting programmes Teleconferences
Fig. 25. The systems and tools used by the surveyed enterprises of the food industry
Source: own study.
Another part of the study concerned the knowledge management in the surveyed enterprises, which is defi ned as a collection of processes that enable the creation, dissemination and use of knowledge to achieve the ob-jectives of the company. The activities carried out by enterprises of the food industry in 2007-2011 were associated with the elements of the implementa-tion of knowledge management are presented in Figure 26.
19,9% Trainings in knowledge management
Addition of knowledge management to the employees motivation system
Yes No
Fig. 26. Activities related to the elements of knowledge management implemented by the surveyed enterprises of the food industry in 2007-2011
Source: own study.
In 2007-2011, about 36% of the enterprises of the food industry had not been fulfi lling any of the listed in the survey activities related to the ele-ments of the implementation of knowledge management. Of those compa-nies that have implemented this type of projects, most (33.3%) indicated that they organized training on knowledge management, and 21.0% have joined knowledge management system to motivate employees. In addition, 19.9% of respondents said they used the counselling/consulting in the im-plementation of knowledge management, and 13.1% indicated that their company has established a unit or created a job for the person responsible for the management of knowledge.
The next stage of the research was to identify the level of innova-tion of enterprises. Implementainnova-tion of innovainnova-tion is an essential element that allows the company to adapt to the changing environment in which it operates. Innovation determines the pace and direction of development, plays a key role in launching new products and services that meet the needs, desires and requirements of the customers. With innovation is an increase in the effi ciency of the company. For innovation recognizes the implementa-tion of a new or signifi cantly improved product (good or service) or process, a new marketing method or organizational business practice, workplace or-ganization or external relations. The minimum requirement for an innova-tion is that the product, process, marketing method or organizainnova-tional
meth-ods were new or signifi cantly improved for the company. Innovations are, therefore, products, processes and methods that a company has developed as the fi rst, and those that have been absorbed by other companies or enti-ties200. Given the nature of innovation activities, it is considered that they have an effect on the growth of competitiveness of the economy, including the food industry on a global, national and regional level201.
In international studies of innovative enterprises the most widely used model is the one developed by the OECD and Eurostat (i.e. The Oslo Manual). This pattern is also used in Poland in studies of innovative activ-ity of enterprises of the food industry. According to the innovation activi-ties, it includes activities of a scientifi c, technical, organizational, fi nancial and commercial area, aimed at introducing new or signifi cantly improved products to the market, or the application of new or improved production processes, with the proviso that these products and processes are new, at least for companies that are incorporated. In this perspective, technological innovations are classifi ed as product innovations and process innovations.
In 2005, the Oslo Manual Guide also introduced the concept of the so-called
“non-technological innovation”, including changes in the sphere of organi-zation (organiorgani-zational innovation) and marketing (marketing innovation)202. Among the surveyed enterprises of the food industry for almost 70% believe that it is an innovative enterprise (Fig. 27).
200 Oslo Manual: Guidelines for Collecting and Interpreting Innovation Data, third edition, Wyd. OECD/Eurostat, 2005.
201 K. Zieliński, D. Żmija, Innovativeness in the Polish Food Industry, The International Conference Hradec Economic Days 2013: Economic Development and Management of Re-gions, University of Hradec Králové, Hradec Králové 2013, p. 522.
202 D. Żmija, Innowacje technologiczne w przedsiębiorstwach przemysłu spożywczego w Polsce, Roczniki Naukowe Stowarzyszenia Ekonomistów Rolnictwa i Agrobiznesu, Tom XV, Zeszyt 3, Warszawa–Poznań–Rzeszów 2013, p. 403-408.
Company IS innovative
68,50%
Company IS NOT innovative
31,50%
Fig. 27. Evaluation of the surveyed enterprises innovation in the opinion of the respondents
Source: own study.
Nearly 62% of respondents declared that in recent years has changed its machinery, but only about a third of them introduced to their businesses modern management systems or sophisticated systems of quality. Among the companies that have put in the studied years quality systems, as many as 80%, introduced a system of ISO 9001 and HACCP – 12%.
The study indicates that in the period 2007-2011, slightly more than 53% of the enterprises of the food industry employed workers who are en-gaged in R&D work, and nearly 23% had purchased a license. Almost 14%
of companies said they received utility models and concluded a contract of know-how, and only slightly more than 12% of companies have patents.
Selected characteristics related to R&D activities in the surveyed enterprises are presented in Figure 28.
In 2007-2011, the average number of employees dealing with the R&D in the enterprises, which declared that employ such workers, was 10.8 people, while in companies that declared a patent, they obtained an aver-age of 39.5 per enterprise. Companies that declared obtain utility patents, gained their average of 6.1 per one company. In contrast, taking into ac-count the company, which declared the purchase of licenses or agreements of know-how, it should be noted that per one company an average of 6.6 license agreements and 4.6 of know-how agreements.
10,8
39,5 6,1
4,6 6,6
0 10 20 30 40 50 No. of employees working in R&D
No. of patents No. of utility models No. of know-how agreements No. of licenses
Fig. 28. Selected characteristics of R & D activity in the surveyed enterprises of the food industry (average value for the companies that have
declared such an activity)
Source: own study.
Table 17 presents the summary of the number of projects in the fi eld of product innovation and the expenditure incurred on them by the surveyed enterprises of the food industry in the period 2006-2011. In the analysed pe-riod, a total of 247 completed projects related to the implementation of prod-uct innovations were condprod-ucted in 138 companies, i.e. in 51.7% of sub-jects. The vast majority of these concerned the innovations implemented at the company level – 137, i.e. 55.47% of the total projects. Second, the com-pany implemented the project on innovation in local or regional scale (31, i.e. 12.55% of all projects). Among them, 26 projects were related to in-novation in the country, and 11 – on an international scale. Only 6 projects were associated with innovation on a national and international level. In 36 cases, the scale range of product innovation was not specifi ed.
Table 17. The numer of product innovations and the expenses incurred on them by food companies in the years 2006-2011 Implemented:
Implementation level: companieslocal/ regionalnationalinternationalnational and internationalNo dataTotal No.valueNo.valueNo.valueNo.valueNo.valueNo.valueNo.value Purchase of land91,467,5003394,0002100,0001800,0001800,000163,561,500 Purchase of buildings31,795,00031,795,000 Purchase of transport means294,653,0005410,00071,387,50042,340,0005240,000509,030,500 Purchase of machinery4426,992,0009941,70055,000,0004520,0001125,754,0007359,207,700 Purchase of building, machinery and transport1100,0001100,000 Purchase of equipment46,500,000120,000352,00086,572,000 Purchase of license542,800278,0003210,0001120,0001300,00012750,800 Building modernization202,415,000374,0003650,000263,139,000 Machinery modernization7432,000240,00013,000,000103,472,000 Construction of a building315,930,0002200,0001616,130,000 Other12348,5004136,0009750,00054,350,000111294,000425,878,500 Total13760,675,800312,293,700267,447,500117,610,00063,520,0003628,090,000247109,637,000 Source: own study.
Expenditure on product innovations most often included the purchase of equipment (73 projects) and the purchase of transport equipment (50 projects). To a lesser extent, it encompassed modernization of buildings, land purchase and modernization of machines. In individual cases includ-ed the purchase of licenses, new equipment, the construction or purchase of a building or other activities. In 36 cases, scale range of product innova-tion was not specifi ed.
Total spending on product innovations in the surveyed enterprises in the period 2006-2011 amounted to 109,637,000 PLN, which per company means expenditures in the amount of 794,471 PLN and 443,874 PLN per one project in the fi eld of product innovation. Innovation at the fi rm level was allocated 60,675,800 PLN, for innovation in national and international scale, respectively 7,447,500 PLN and 7,610,000 PLN. For product innova-tion at nainnova-tional and internainnova-tional received a total of 3,520,000 PLN. De-spite the relatively large number of projects relating to innovation at local or regional level, allocates only 2,293,700 PLN. From the point of view of most of the outlays earmarked funds for the purchase of equipment and construction of buildings – respectively 59,207,700 PLN and 16,130,000 PLN. Third, the companies they spent the money on the purchase of trans-port (9,030,500 PLN). Relatively large item of the purchase is the new equipment (6,572,000 PLN).
Another type of innovation is organizational innovation. Compari-son of the number of projects in the fi eld of organizational innovation and the expenditure incurred on them by the surveyed enterprises of the food industry in the years 2006-2011 are presented in Table 18.
In the analysed period, 65 companies of the food industry (24.3% of all surveyed companies) implemented the organizational innovation. 65 pro-jects were implemented, aimed at the implementation of this type of inno-vation, with more than half of them concerned on the new developments at the company level. Less than 1/3 of the projects referred to the innovation of local or regional level, while 11 were national in scope. Not solution which would be a new organizational solution internationally was implemented.
Frequently the company introduced new procedures for the operation and changing the way organizations work. Quite often were also introduced new methods of cooperation with customers or suppliers, or a new organization of work. In fi ve cases the change was made to the payroll system. Overall organizational innovations was allocated 2,117,380 PLN. As per the com-pany, this means expenditures in the amount of 32,575 PLN.
Table 18. Number of organizational innovations and expenses incurred on them by food companies in the years 2006-2011 Implemented:
Implementation level: companieslocal/ regionalnationalinternationalTotal No.valueNo.valueNo.valueNo.valueNo.value New organizational structure1100,000142,7002142,700 New cooperation methods with stakeholders11600510,0003307,7809319,380 New procedures6269,000560,000130,00012359,000 New processes increasing creativeness1bd.bd.bd.bd.1bd. New posts organization510,00016000616,000 Change in work organization9129,200362,50012191,700 Change in wages system450,0001500,0005550,000 Implementation and maintenance of analysis systembd.bd.1bd.bd.1bd. Other9108,600314,5005415,50017538,600 Total36668,40018689,70011759,280652,117,380 Source: own study.
Most of the funds allocated to innovation on a national scale, in the fur-ther innovation of local or regional level, and the least on forming a new solution innovation at the fi rm level. From the above data one can conclude that with increasing range of organizational innovation, increase the ex-penditure incurred on them.
The third type of innovation is marketing innovation. Comparison of the number of projects in the fi eld of innovation and marketing ex-penses incurred on them by the surveyed enterprises of the food industry in the years 2006-2011 are presented in Table 19. The research shows that marketing innovations were implemented by the 130 enterprises of the food industry (i.e. 48.7% of respondents). The total number of implementations of new marketing solutions in the surveyed companies was 134. Most com-panies implemented a marketing innovation in the local/regional market scale (44 projects) and at the level of their company (40 projects). Sub-sequently, it covered the domestic market (34 projects) and international market (7 projects). In 9 cases, the company did not reply to the scope of im-plementation. Total expenditures on marketing innovations in the surveyed enterprises in the period 2006-2011 amounted to 3,404,968 PLN, which per company means expenditures in the amount of 26,192 PLN and 25,410 PLN per one innovation in enterprise marketing. Innovation at the fi rm level was allocated 365,508 PLN, and at national and international level – only 13,000 PLN. Most funds have been allocated for marketing innovations across the country – 2,228,810 PLN, i.e. 65.46% of the total expenditure on this type of innovation. The average value of expenditures on market-ing innovations implemented at the national level was the highest and amounted to an average of 65,553 PLN for one innovative solution. From the point of view of most types of outlays measures implemented within the framework of marketing innovations expended to change the appearance of the product – 1,728,000 PLN, i.e. 50.75% of all funds. For the new ways to promote company was spent 980,800 PLN, i.e. 28.80%, and for the new packaging 531,210 PLN, i.e. 15.60% of the funds. Much less money was spent on changes in the fi eld of distribution and prices.
Table 19. Number of marketing innovations and expenses incurred on them in food companies in the years 2006-2011 Implemented:
Implementation level: companieslocal/ regionalnationalinternationalnational and internationalNo dataTotal No.valueNo.valueNo.valueNo.valueNo.valueNo.valueNo.value Change in the product design674,5008253,50041,400,0001191,728,000 Change in distribution324,2001424,200 Change in the price policy425585412,00011414,558 Change in the price policy and distribution
160,000160,000 New packages13149,25013250,95011114,3104870028000245531,210 New marketing method125000145000 New promotion1160,00015194,30012696,500220,000250001500043980,800 No data255,000160001200461,200 Total40365,50844763,750342,228,810728,700513,000452001343,404,968 Source: own study.
In the analyzed period in 76 enterprises of the food industry a total of 78 projects were realized in the innovation process (Tab. 20). The vast majority of these concerned the innovations implemented at the company level – 36 projects (i.e. 46.15%). Second, companies implement innova-tion at the local/regional level. Innovainnova-tion on this scale were established in 13 companies, i.e. 16.67% of all companies that have implemented the in-novation process. In 11 cases, implemented projects related to inin-novation in the country, and 2 – on an international scale. Only 3 of the projects were associated with innovation in national and international market. In 13 cases, the scale did not specifi ed the innovation process. These solutions frequently included changes in the technology of production (30 projects), the purchase of equipment (10 projects) and changes in the software (9 pro-jects). To a lesser extent, the scope of the changes concerned the technology services, purchases of computer equipment, new production processes and staff training.
Total expenditure on process innovations in the surveyed enterprises in the period 2006-2011 amounted to 6,862,300 PLN, which per company means expenditures in the amount of 90,293 PLN and 87,978 PLN per one project related to the implementation of process innovation. Innovation at the fi rm level allocated 2,708,800 PLN, on innovation at national and
Total expenditure on process innovations in the surveyed enterprises in the period 2006-2011 amounted to 6,862,300 PLN, which per company means expenditures in the amount of 90,293 PLN and 87,978 PLN per one project related to the implementation of process innovation. Innovation at the fi rm level allocated 2,708,800 PLN, on innovation at national and