Chapter

Harnessing the Power of Culture

and Cultural Intelligence within
Knowledge Management
Leila Halawi

Abstract

As smart machines and artificial intelligence become more prevalent in the

workplace, organizations must prioritize building a culture that supports knowledge
management initiatives. However, cultural diversity may hinder effective knowledge
sharing, transfer, and collaboration. Organizations must cultivate cultural intelligence
to overcome these challenges and fully utilize the potential of culture. This chapter
investigates the role of culture and cultural intelligence. It examines the significance
of culture in knowledge management. It offers practical examples and best prac-
tices from organizations such as IBM and Unilever for utilizing culture to improve
knowledge management practices. The chapter examines the relationship between
culture and KM and discusses cultural intelligence, its importance, and its applica-
tion. Additionally, the chapter delves into strategies employed by IBM and Unilever to
cultivate a culture that supports knowledge management. By examining their success
stories, valuable insights and best practices can be derived.

Keywords: knowledge management, cultural intelligence, culture, IBM, Unilever

1. Introduction

Competing in the twenty-first century represents a paradigm shift compared to

the past [1, 2]. Markets have become increasingly dynamic, fluid, and uncertain,
while consumers exhibit higher levels of demand and discernment. Competitors
now possess enhanced agility and display predatory tendencies, while employees
are characterized by greater intelligence and transience. Consequently, competition
on a global scale has undergone dramatic changes, especially post-COVID-19, and
intensified over the last two decades. The dynamic forces of the globalization age
have forced organizations to search within for their full main capabilities to meet the
challenges of their imminent obligations. Nations around the globe reacted differ-
ently to the dynamic changes that are impacting their economies. The economic
language has also changed from seeking economies of scale based purely on produc-
tivity and return on investment to managing the “Age of Thinking and Resilience”
[3, 4] or, for some, the “Creative Age” [5] “Third Industrial Revolution” [3] or still
the “Knowledge Age.”

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The continuous advancements in computing power, the Internet, information

technology (IT) infrastructure, and the integration of technologies from IoT to big
data revolution and production advancements that could potentially lead to a future
without work have resulted in widespread recognition of the power of information
and connectivity. The accounts envisioning a future without work in the coming years
draw inspiration from a body of research that argues that advanced technologies such
as smart machines (e.g., algorithms, artificial intelligence, and the Internet of things)
are progressively eliminating the concept of work, including knowledge-based task;
nevertheless, Karakilic [6] emphasizes the ongoing importance of human involve-
ment in knowledge work.
Multinational organizations face considerable challenges in managing knowl-
edge across different cultural contexts. An organization’s culture shapes employees’
attitudes and behaviors toward knowledge sharing and collaboration [7]. It sig-
nificantly influences how individuals and organizations create, share, and apply
knowledge. Cultural differences pose communication barriers; divergent norms and
values affect knowledge perception and collaboration; trust and relationship build-
ing are influenced by cultural nuances; power dynamics hinder knowledge sharing;
contextual differences impact knowledge application; and resistance to change arises
from cultural factors, emphasizing the importance of cultural Intelligence (CQ ) in
overcoming these challenges and promoting effective knowledge sharing and collabo-
ration across cultural boundaries [8]. CQ represents the person’s capability to under-
stand and effectively network with individuals from diverse cultural backgrounds
[8]. In knowledge management (KM), CQ enables employees to navigate cultural
differences, adapt communication styles, and build cross-border relationships [9]. By
possessing CQ , employees are better equipped to comprehend and appreciate differ-
ent perspectives, leading to improved knowledge sharing and collaboration within
multinational organizations [10]. CQ also facilitates the development of cross-cul-
tural communities of practice, where employees from various cultural backgrounds
can collaborate and exchange knowledge [11].
Therefore, understanding the impact of culture and CQ on KM is crucial for devel-
oping effective strategies that promote knowledge sharing, learning, and innovation.

2. Knowledge management (KM)

Over the years, organizations such as Amazon, Microsoft, Apple, Nike, Siemens,
Unilever, IBM, Intel, Procter & Gamble, Boeing, Ernst & Young, Honeywell, Miter,
KPMG, and Ford Motor Company have undertaken many KM initiatives, developed
a knowledge base, developed training materials and offered training sessions on KM,
implemented knowledge management systems (KMS), created knowledge networks,
and created knowledge-sharing cultures to tackle the loss of explicit and implicit
knowledge. These initiatives can yield several advantages, including enhanced effi-
ciency, productivity, and customer service. KM is crucial in stimulating individuals’
thinking and influencing their actions.
KM is a main competitive advantage in the era of the knowledge economy or the
Third Industrial Revolution. KM encompasses a range of technological, cultural,
and procedural approaches that organizations employ to enhance the value derived
from knowledge [12]. This involves improving, identifying, collecting, sharing,
and utilizing existing organizational knowledge and accessing or developing new
knowledge through partnerships or ventures [13]. KM goes beyond the scope of
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information systems and technology, heavily drawing from social and cultural ele-
ments. It also intersects with organizational development, innovation, and competi-
tive intelligence [14–16].

2.1 Knowledge management process

Knowledge management processes exhibit diverse forms and can be implemented

in various configurations. Nissen [17] proposed a life cycle model that illustrates an
organization’s seamless knowledge flow, encompassing six phases. Wiig [18] pio-
neered a knowledge management process consisting of eight activities. Whitmore &
Albers [19] also identified a nine-step comprehensive framework.
Implementing KM within a business is undoubtedly a multifaceted process.
Nevertheless, its potential benefits make it a valuable tool for businesses of all sizes.
By diligently following these steps, organizations can embark on the path to success-
ful KM implementation and reap its rewards (Figure 1).

1. Identification of knowledge needs: First and foremost, it is crucial to identify

the knowledge needs specific to the organization. This encompasses customer
information, product details, employee data, and other pertinent information
relevant to the business’s operations.

Figure 1.
Knowledge management process.

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From Theory of Knowledge Management to Practice

2. Knowledge capture: The captured knowledge needs to be effectively stored and

organized. This can be accomplished by establishing a comprehensive knowl-
edge base, developing training materials, or utilizing alternative methodologies
designed to capture and retain knowledge.

3. Knowledge sharing: Once the knowledge has been captured, the next step
involves sharing it with employees. Cultivating a knowledge-sharing culture
within the organization is essential, as it encourages employees to disseminate
knowledge actively. Employing KMS or utilizing other appropriate channels
facilitates the efficient and widespread distribution of knowledge among em-
ployees.

4. Knowledge management: Finally, managing shared knowledge is critical to en-

sure its relevance and accuracy. This includes regularly updating the knowledge
base, providing training sessions to address new knowledge, and implementing
appropriate methodologies to manage the knowledge repository effectively.

2.2 Knowledge management success factors

Within the established frameworks of KM implementation, several factors emerge

as crucial elements demanding focused attention for the success of KM initiatives.
However, if these factors are not properly and adequately addressed, they can transi-
tion from facilitators of KM into significant barriers that hinder the realization of
KM’s benefits [20].
The crucial factors encompass organizational structure, strategy, leadership,
technological infrastructure, culture, organizational processes, and measurement
[21]. When these factors are appropriately addressed and aligned with the goals and
direction of the organization, the likelihood of achieving KM success significantly
increases.

3. Culture

An organization’s culture emerges from its members’ shared fundamental

a­ ssumptions and beliefs. It operates unconsciously, shaping the organization’s self-
perception and perception of the surrounding environment [22]. Hofstede [23] intro-
duced a comprehensive definition of culture as the shared mental programming that
sets one group apart from another. He posited that culture finds expression through
symbols, heroes, rituals, and values, which manifest across multiple dimensions: power
distance, individualism versus collectivism, femininity versus masculinity, uncertainty
avoidance, long-term versus short-term orientation, and indulgence versus restraint.
Culture encompasses the values, principles, unwritten rules, norms, and procedures
that guide organizational behavior. Culture building is a slow process [24].
Culture acts as the binding force that unifies an organization and enacts a decisive
part in shaping the utilization of an organization’s knowledge assets. It dictates both
the capabilities and limitations of what can be achieved. As organizational theorists
acknowledge, culture plays a significant role in organizational performance and long-
term effectiveness [25]. Successful organizations embody a cohesive organizational
culture, forming a harmoniously integrated entity where everyone’s contributions
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complement one another. Rather than solely relying on hard work, effective organiza-
tions emphasize working smarter. Within the organizational context, culture becomes
the determining factor that defines the realm of possibilities.

3.1 Culture and knowledge management

In the context of an organization, culture influences and is influenced by

i­ nfrastructure, strategy, and the organization’s mission, vision, objectives, and
goals. Malhotra [26] emphasizes the critical role of a healthy corporate culture in
the success of KM. KM is a critical organizational process that aims to create, share,
and apply knowledge to achieve corporate objectives. Culture is pivotal in KM as it
shapes employees’ beliefs, values, and behaviors related to knowledge sharing and
collaboration.
Organizations must cultivate a culture and environment that align with KM
objectives. Enhancing organizational culture should be a primary focus in strategic
planning efforts [27]. Innovation and knowledge creation processes are deeply rooted
in society and intricately tied to its culture. Culture significantly influences the
methodologies, philosophies, and individuals within organizations. However, cultural
variations can obstruct the effective transfer of knowledge [28].
By harnessing KM, competing and cooperating companies can effectively navigate
cultural differences and establish fruitful business relationships with individuals
from diverse countries. Achieving this objective entails understanding the intricate
interplay between KM and culture and recognizing the inherent value each brings to
the table [29].
To successfully implement KM processes, organizations must consider adopt-
ing a new cultural model or adapting their existing culture to foster sharing and
collaboration. However, it is crucial to ensure that this cultural change is seen as an
enhancement to employees’ professional and personal lives rather than an imposi-
tion. Developing a knowledge-sharing culture primarily relies on establishing a solid
foundation of trust among individuals. KM-enabling culture is a trusting knowledge
culture that actively encourages and rewards innovation, learning, experimentation,
critical analysis, and reflection [30]. Trust is vital in facilitating knowledge sharing
among organization members.

3.2 Cultural intelligence (CQ )

Cultural intelligence (CQ ) is a complex framework encompassing knowledge

and understanding of effective interactions across diverse cultures [8]. The acronym
for cultural intelligence (CQ ), short for cultural quotient, encompasses four dimen-
sions: “behavioral CQ , motivational CQ , cognitive CQ , and meta-cognitive CQ” [8].
Behavioral CQ pertains to the verbal and nonverbal behaviors employed to interact
with colleagues in multicultural environments, focusing on actions rather than
emotional or psychological factors. Motivational CQ reflects the interest and drives
to engage with and understand other cultures, encompassing intrinsic and extrinsic
motivation. Cognitive CQ encompasses systematic knowledge of practices and norms
in different cultures, which can be acquired through education or practice. Lastly,
meta-cognitive CQ involves advanced thinking skills [31] that enable abstract cogni-
tive strategies in diverse cultural settings [32].
CQ focuses on developing diverse skills applicable to various cultural contexts
rather than solely acquiring knowledge about a single culture [33]. CI plays a crucial
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From Theory of Knowledge Management to Practice

role in KM, with a positive association between CI and KM processes [34]. Meta-
cognitive CI helps establish cultural commonalities, while cognitive CI enhances
understanding of the international environment. Motivational CI promotes enjoy-
ment during cross-cultural interactions and facilitates knowledge sharing, while
behavioral CI enables effective cross-cultural communication and knowledge acquisi-
tion [35, 36].
Several studies have confirmed the positive impact of CI on knowledge sharing
and standard and reverse knowledge transfer [37, 38]. Additionally, CI helps mitigate
the negative effects of language barring on knowledge obscuring and collecting, lead-
ing to improved knowledge practices [39].

4. IBM

IBM, short for “International Business Machines,” is a globally recognized

American multinational information technology corporation based in Armonk, New
York. With over 175 countries, IBM has established itself as a prominent figure in the
information technology industry for over a century. In recent years, the company has
emerged as a global leader in cloud computing, data analytics, and artificial intelli-
gence (AI) [40]. Presently, IBM places great importance on the ability of AI to deliver
tangible value through collaboration with human interaction. This philosophy under-
pins developing an AI-enriched knowledge management system (KMS) designed
explicitly for market and competitive intelligence. This system serves as a tool that
empowers business professionals across the organization to make informed decisions
based on available research assets. It is worth noting that this system is not intended to
replace human expertise but rather to complement and enhance human capabilities.
IBM embarked on its knowledge management (KM) journey in the early 1990s
and introduced its initial KM initiative, Asset Management, from the Business Unit
Perspective, in 1994 [41]. The main purpose of this initiative was to create a reposi-
tory of knowledge and work-related information contributed by colleagues. This
knowledge base facilitated the reuse of assets and intellectual capital, enabling IBM
to deliver client solutions with improved quality and efficiency. In 2000, the company
established its KM Center of Excellence, which provides guidance and support to IBM
employees regarding effective knowledge management practices. Additionally, IBM
has developed various KM tools and products, such as Lotus Notes, IBM Connections,
and IBM Watson. IBM encompasses a range of KM initiatives, including social learn-
ing through the internal sharing and collaboration tool Yammer and diverse com-
munities of practice and knowledge repositories. IBM’s efforts in KM have garnered
recognition from industry experts, with KMWorld honoring IBM as the “Knowledge
Management Leader of the Year” in 2002 [41].
IBM has long recognized the significance of KM in driving organizational success.
Operating in culturally diverse settings worldwide, IBM faces considerable challenges
in effectively managing knowledge across borders. Acknowledging the pivotal role of
culture in KM, IBM has fostered a knowledge-sharing and collaborative culture that
is key to the company’s success. This culture of knowledge sharing and collaboration
has contributed to several business benefits for IBM, including improved customer
satisfaction, increased employee productivity, reduced costs, enhanced decision-
making, and increased innovation [42].
IBM has implemented various strategies to cultivate a knowledge-sharing and
collaboration culture. The company upholds an organizational culture of “THINK,”
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which emphasizes thinking and creating solutions. IBM’s cognitive quotient (CQ )
measures the company’s ability to acquire, process, and apply knowledge. To over-
come cultural barriers and promote knowledge sharing, IBM has established global
communities of practice that bring together employees from diverse regions and
backgrounds. These communities are platforms for sharing best practices, exchanging
insights, and collaborating on projects [42]. By facilitating cross-cultural knowledge
exchange, IBM encourages the development of innovative ideas and solutions that
cater to diverse market needs.
Furthermore, IBM leverages technology to facilitate knowledge management
across its global operations. Collaborative platforms and digital tools enable employ-
ees from different cultural backgrounds to access and share information easily,
irrespective of geographical boundaries [42]. This technology-driven approach
streamlines the flow of knowledge and fosters collaboration and collective learning
within the organization.
Additionally, IBM has implemented training programs and initiatives to raise
awareness about cultural differences and their impact on knowledge management.
With a strong knowledge-sharing and collaboration culture and substantial invest-
ments in KM initiatives, IBM maintains a high CQ. The company’s continuous
approach to measuring CQ involves data collection, analysis, and action to improve
[43]. This approach has helped IBM maintain its leadership position in the IT indus-
try. By promoting cultural sensitivity and understanding, IBM equips its employees
with the skills necessary to navigate diverse cultural contexts and effectively collabo-
rate with colleagues across the globe.

5. Unilever

Unilever, a global consumer goods company established in 1930, has a rich history
of innovation and has played a leading role in developing various product categories,
such as detergents, shampoos, and foods. Unilever, a global corporation with opera-
tions spanning over 190 countries, boasts a diverse workforce comprising employees
from more than 100 nations. The company fosters a culture of diversity, inclusion,
and respect, actively encouraging employees to share their ideas and perspec-
tives. Recognizing the significance of cultural Intelligence (CQ ) in a globalized
environment, Unilever prioritizes the development of this essential skill among its
employees.
Unilever’s leadership team plays a pivotal role in promoting the culture of CQ.
Their commitment to cultivating cultural intelligence cascades throughout the
organization, which reinforces its importance and influences employees at all levels.
Unilever’s endeavors to promote CQ have earned recognition from various organiza-
tions. In 2019, Unilever was recognized as one of the top 15 companies for diversity
and as a leading Inclusion Index company with inclusive culture as an integral part of
growing a sustainable organization [44]. The Human Rights Campaign also acknowl-
edged Unilever as one of the best places to work for LGBTQ employees in 2017 [45].
Unilever’s dedication to fostering CQ aligns with its strategy for success in the global
marketplace. By cultivating a culture that embraces CQ , Unilever can attract and
retain top talent, cultivate strong relationships with customers and partners world-
wide, and effectively drive innovation. By prioritizing KM and CQ , Unilever is forg-
ing an agile and adaptable organizational culture that is better positioned to thrive in
the global marketplace.
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From Theory of Knowledge Management to Practice

Unilever’s approach to KM is grounded in the belief that knowledge is a valuable

asset that can enhance the company’s performance, while curiosity is seen as a core
value. To effectively capture, share, and utilize knowledge, Unilever has implemented
several initiatives, including:

a. A knowledge-sharing portal: This platform enables employees to access and

exchange information, fostering a collaborative environment.

b. Communities of practice: Unilever facilitates the formation of communities

where employees with shared interests can come together to share insights,
experiences, and best practices; for example, within the culinary Category, and
through effective knowledge-leveraging strategies, Unilever has made documen-
tation, handbooks, and recognized professionals available, reducing time and
improving efficiency in designing, planning, and commissioning new construc-
tion projects. Additionally, Unilever has adopted a common flavor language to
facilitate seamless communication across regions, cultures, backgrounds, and
experiences [46].

c. Mentoring program: Unilever’s mentoring initiative pairs less experienced

employees with seasoned colleagues, providing an avenue for knowledge transfer
and skills development.

Unilever’s organizational culture is characterized by open communication and

collaboration, which nurture an environment conducive to knowledge sharing.
Additionally, the company emphasizes training and development programs, enabling
employees to expand their knowledge and enhance their skills.
Cultural intelligence (CQ ), the ability to understand and adapt to different
cultures, is a critical competency for employees working in multinational organiza-
tions like Unilever. To cultivate CQ among its workforce, Unilever employs various
strategies, including:

1. Training and development programs: Unilever offers comprehensive training

initiatives to enhance employees’ cultural understanding and sensitivity.

2. Cross-cultural assignments: Encouraging employees to work in diverse cultural

contexts helps broaden their perspectives and develop their CQ.

3. Exposure to different cultures: Unilever promotes travel and exposure to dif-

ferent parts of the world, enabling employees to gain firsthand experience and
understanding of diverse cultural practices.

CQ equips employees with several benefits, including:

Effective communication: CQ enables individuals to communicate more profi-
ciently with people from diverse cultural backgrounds.
Relationship building: CQ facilitates positive relationships with individuals from
different cultures, fostering collaboration and teamwork.
Cross-cultural collaboration: Employees with high CQ can work effectively in
cross-cultural teams, leveraging the diversity of perspectives and experiences to drive
innovation and problem-solving.

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Unilever is committed to cultivating a culture of CQ within the organization. The

company invests in comprehensive training and development programs to develop
employees’ CQ and encourages cross-cultural assignments and international travel
opportunities.

6. Insights and best practices

Organizations are intricate and dynamic systems that constantly evolve. They
must navigate various elements such as profitability, culture, politics, social net-
works, communities, individuals, values, ethics, and goals within their environment.
Knowledge databases become susceptible to rapid decay when sharing embedded
knowledge is not ingrained within a specific culture [47].
Both IBM and Unilever share similarities in harnessing the power of culture and
CQ within KM. To begin with, both organizations acknowledged the value of cultural
diversity in their workforce, actively seeking talent from various backgrounds and
promoting inclusivity. Next, they invested in CQ training programs to equip their
employees with the necessary skills to navigate and adapt to diverse cultural contexts.
Lastly, both companies instigated robust KMS systems and platforms to facilitate
collaboration, knowledge sharing, and innovation.
Despite these similarities, there are notable differences between the two cases. As
a technology company, IBM greatly emphasizes leveraging digital tools and platforms
for KM. They developed AI-enriched systems for market and competitive intelligence,
complementing human expertise. On the other hand, as a consumer goods company,
Unilever focused on aligning its organizational culture with KM goals and driving
innovation through curiosity and openness. They emphasized forming communities
of practice and adopting common language and practices to facilitate knowledge
sharing.
To harness the power of culture and CQ within KM, organizations can follow
a series of best practices: embrace cultural diversity and inclusivity; invest in CQ
training; leverage technology and AI; establish communities of practice; promote
curiosity and openness; encourage cross-cultural assignments and exposure; invest in
comprehensive training and development programs.
These practices collectively will drive innovation, collaboration, and organiza-
tional success.

7. Conclusions

The chapter unfolds structured, beginning with an introduction that sets the stage
for subsequent discussions. This is followed by an in-depth examination of knowledge
management, encompassing the knowledge management process and its critical
success factors. Part 2 of the chapter provides an overview of culture, including its
relevance to knowledge management culture and the significance of cultural intel-
ligence [CQ ] within the realm of knowledge management.
Sections 4 and 5 focus on the practical application of knowledge management,
exemplified through the strategies employed by IBM and Unilever. Furthermore,
these sections shed light on the pivotal role played by culture and cultural intelligence
in the success of these organizations.

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Drawing from these insights, the chapter closes by highlighting the implications
and presenting best practices for leveraging culture and cultural intelligence in the
context of knowledge management. Furthermore, the chapter is supported by a
robust reference section, ensuring interested readers can delve deeper into the subject
matter.

Conflict of interest

The authors declare no conflict of interest.

Appendices and nomenclature

AI Artificial intelligence—a broad term that suggests smart actions performed

by a computer without requiring explicit human programming.
CQ The acronym for cultural intelligence (CQ ), short for cultural quotient—a
complex framework encompassing knowledge and understanding of effec-
tive interactions across diverse cultures.
IT Information technology—a set of tools that help work with information and
perform tasks related to information processing.
KM Knowledge management—creating, storing, arranging, retrieving, and
distributing an organization’s knowledge.
KMS Knowledge management system—refers to using modern information
technologies to systematize, enhance, and expedite intra- and inter-firm
knowledge management.

Author details

Leila Halawi
Embry Riddle Aeronautical University, Daytona Beach, Florida, USA

*Address all correspondence to: [email protected]

© 2023 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of
the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0),
which permits unrestricted use, distribution, and reproduction in any medium, provided
the original work is properly cited.
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