Can a KIS Overcome Resource Scarcity?
AbstractTResource scarcity for managerial tasks is a major problem in Indonesia although many human resources are available. However, the majority of them does not have a sufficient qualification or adequate skills for performing a management task. This paper aims at describing how a Knowledge-intensive System (KIS) can be used as a tool to help manufacturers to overcome resource scarcity for managers. Our focus is on the Indonesian SME Garment Manufacturers (ISGMs). A prevailing question reads as follows. How does an ISGM employee handle a KIS as a tool to overcome resource scarcity for managers? We note that the KIS will support the ISGM owner in three areas: (1) recording the business transactions according to Indonesia’s accounting standards, (2) interpreting financial statements analyses, and (3) interpreting analyses on daily business indicators. To answer the research question, our research method consists of observations, in-depth interviews, and a semi-structured questionnaire. Thirty-one Indonesian garment managers and twenty-four Indonesian financial experts participated in the interviews and filled in the questionnaire. The findings of the study indicate that there exists a resource scarcity for managers. This gap is filled in by ad hoc managers. Using the financial interpretation provided by a KIS, the ad hoc ISGM manager may obtain an actual insight into the business performance. As a result, the ad hoc manager may well deal with the information, and talk at a par with the financial experts and funding agencies. Based on the interviews and the questionnaire, we conjecture that in the long run, the ad hoc managers will be able to learn how to overcome the resource scarcity problem by using the knowledge of the company and the knowledge extracted from a KIS.
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Bibliographic InfoPaper provided by Maastricht School of Management in its series Working Papers with number 2011/15.
Length: 22 pages
Date of creation: Nov 2011
Date of revision:
Knowledge-intensive System; Financial Analysis; Resource Scarcity; Indonesia SME Garment Manufacturers;
Find related papers by JEL classification:
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
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- Agus Gunawan & Mohamed Wahdan & H. Jaap Van Den Herik, 2010. "Increasing the managerial capabilities in Indonesian garment manufacturing," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 3(4), pages 346-367.
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