Mitigating risks of tacit knowledge loss in state-owned enterprises in South Africa through knowledge management practices

Abstract

In the knowledge-based economy, organisational knowledge assets are the cornerstone and sources of superior performance, innovation and sustainability. The knowledge-based view (KBV) of the firm calls for the protection of organisational tacit knowledge assets through the investment in relevant knowledge management (KM) practices (Grant 1996; Phaladi 2021; Takeuchi 2013). Sultan Balbuena (2014:9) defines state-owned enterprises (SOEs) as entities established according to the statutory laws of the country; they can be either wholly or partially owned, with the government having a significant level of shareholding and ownership. Stateowned enterprises (SOEs) are the business entities owned by the government to meet the socioeconomic objectives or mandates of their home countries. They are economic transformation and job creation agents at the heart of economic and innovation development in many countries (Saxen & Das 2021). In their own right, SOEs are knowledge-creating and knowledge-based organisations which play an important role in the knowledge economy (Benassi & Landoni 2019). Globally, SOEs are economic drivers in both developed and non-developed countries (OECD 2018; Saxen & Das 2021). In South Africa, SOEs are central to positioning the country as a developmental state and play a critical role in the job creation space (Gumede, Govender & Motshidi 2011). State-owned enterprises play a significant role in the global knowledge economy (Benassi & Landoni 2019). These enterprises are most prevalent in strategic sectors such as energy, minerals, infrastructure, and other utilities and, in some countries, development financial services. State-owned enterprises are also used as instruments for socioeconomic development in South Africa (Gumede et al. 2011), but many of them are in perpetual struggle facing the issue of Background: State-owned enterprises (SOEs) in South Africa face a serious challenge of knowledge loss caused largely by resignations, the ageing workforce and a lack of knowledge management (KM) practices.