Barriers to effective knowledge management: Action research meets grounded theory

Although many knowledge management (KM) initiatives are known to miscarry, there has been relative little critical, in‐depth research into the causes of failure. In this paper, an action research (AR) project is described in a major motor manufacturer (WWM) focusing on one of their key knowledge processes (Design for Manufacturabilty) which was regarded as dysfunctional. The paper has two aims: to explore the substantive factors underlying this malaise, and to demonstrate how the rigour and respectability of AR as a research tool can be strengthened by the use of grounded theory (GT) methodology. Using the latter, a model was produced relating the effectiveness of the DFM process to a set of success factors. These factors resonate with key issues described in previous KM research, namely the need for a shared knowledge repository, a formal KM process, and a culture disposed towards knowledge sharing and re‐use. The model provided a rigorous platform for designing interventions to improve the DFM process. Whilst technical changes (creating infrastructure, defining process) are readily feasible, bringing about cultural change is less tractable and process improvements in WWM have tended to focus more on the former than the latter. As well as providing generalisable insights into KM success and failure, the paper also demonstrates the valuable role that GT can make in informing the design of organisational interventions, in evaluating their impact, and in adding rigour to the theory generation dimension of AR.