Skip to main content
SpringerLink
Log in

The Effects of the Internet of Things and Big Data to Organizations and Their Knowledge Management Practices

  • Conference paper
  • First Online:
Book cover Knowledge Management in Organizations (KMO 2015)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 224))

Included in the following conference series:

Abstract

New technologies are promising us many upsides like enhanced health, convenience, productivity, safety, and more useful data, information and knowledge for people and organizations. The potential downsides are challenges to personal privacy, over-hyped expectations, increasing technological complexity that boggles us. Our point is this change requires scientific discussion from the point of management, leadership and organizations – that is, it is time to discuss the meaning of these challenges seriously also in terms of existing traditions of management science. This review type article discusses the nature and role of the Internet of Things (IoT), Big Data and other key technological waves of ubiquitous revolution vis-á-vis the existing knowledge on management, organizations and knowledge management practices in organizations. Recent changes in the fields of robotics, artificial intelligence and automation technology indicate that all kinds of intelligence and smartness are increasing and organizational cultures are going to change indicating fast changes in the field of modern management and management sciences. Organizational processes form the base for the knowledge-based decision-making. Developing and utilizing smart solutions – like the utilization of Big Data – emphasize the importance of open system thinking. Digitalized services can for instance create new interfaces between service providers and users. Service users create social value while they are participating in co-producing activities. Hence, the IoT and Big Data undoubtedly strengthen the role of participation in service production, service economy, innovativeness in-between organizations (as a joint processes) and leadership models incorporated in service-dominant –logic. Moreover, IoT, Big Data, and especially digitalization bring about the renaissance of knowledge in decision-making.

At organizational level, smart organizations do no rely on knowledge production, but focus on knowledge integration instead. Knowledge integration becomes a key part of management systems. This also means that seminal theories with regard to decision-making and knowledge management do not suffice anymore. At organizational level there is a growing need to develop abilities to act in changing, not easy to forecasted and non-linear situations due to the complexity related to utilization and developing digitalization. Authentic and clinical leadership involves components such as awareness, unbiased processing, action, and relations. IoT and Big Data certainly effect organizations. The connection between IoT, Big Data, management systems as well as knowledge management practices at organizational level has not been analysed thoroughly in the KMO theories or empirically so far. In this scientific article this task and challenge will be performed.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    The basic concept of IoT was initially applied in the Radio-Frequency Identification RFID-tags to mark the Electric Product Code (Auto ID-Lab). The benefit of IoT concept it that it enables physical objects to be seamlessly integrated into the information network, where the physical objects can become active participants in business and management processes (see e.g. [7]).

  2. 2.

    Internet penetration index will probably increase in the world in next decades. In 1990 the number of internet hosts was were small, but today the number of internet hosts is considerable and increasing. Current forecasts indicate that internet penetration will slow down towards saturation at about 89 % by the year 2040. It will take 45 years for the Internet penetration process to be globally accomplished. Experts estimate that average time lag of development phases of Internet is a four years and there months. It is predicted that in 2015 the penetration index should reach 50 % of the world population. From then on it should asymptotically approach saturation at 79-89 % by 2035-2040 (see e.g. [10]).

  3. 3.

    To take an example: today over one billion people use it to communicate, search and share information, conduct business and enjoy entertainment. In 2010, online retail sale volume was estimated to be $697.8 billion in 2012 in the world. Thus, online retail has become an emergent trend throughout the world and the e-commerce industry continues to grow significantly across the world. Such issues like importance of convenience, personal innovativeness, impulsiveness, price consciousness, risk aversion, brand consciousness, variety seeking, attitudes towards online shopping and online advertising are key issues in the e-commerce market [12, 13]. In 2014 retail sales worldwide—including both in-store and internet purchases—will reach $22.492 trillion, according to new figures and statistics from eMarketer. The global retail market will see steady growth over the next few years, and in 2018, worldwide retail sales will increase 5.5 % to reach $28.300 trillion - See more at [14].

References

  1. Beck, U.: From industrial society to the risk society: questions of survival, social structure and ecological enlightenment. Theor. Cult. Soc. 9(1), 97–123 (1992)

    Article  Google Scholar 

  2. Cameron, K.S.: Effectiveness as paradox: consensus and conflict in conceptions of organizational effectiveness. Manag. Sci. 32(5), 539–554 (1986)

    Article  Google Scholar 

  3. Virtanen, P., Kaivo-oja, J.: public service systems and emerging systemic governance challenges. Working paper. Submitted to be published in the Journal of Service Theory and Practice (2014)

    Google Scholar 

  4. Boyd, D., Crawford, K.: Critical questions for big data: provocations for a cultural, technological, and scholarly phenomenon. Inf. Commun. Soc. 15(5), 279–662 (2012)

    Article  Google Scholar 

  5. Zalavsky, A., Perera, C., Georgakopoulos, D.: Sensing as a service and big data. In: Proceedings of the International Conference on Advances in Cloud Computing (ACC), Bangalore, India (2013). ref: arXiv:1301.0159x

    Google Scholar 

  6. Mayer-Schönberger, V., Cukier, K.: Big Data: A Revolution That Will Transform How We Live, Work, and Think. Houghton Mifflin Harcourt Publishing Company, New York (2013)

    Google Scholar 

  7. Öztayşi, B., Baysan, S., Akpinar, F.: Radio Frequency Identification (RFID) in Hospitality. Technovation 29(9), 618–624 (2009)

    Article  Google Scholar 

  8. Weiser, M.: The computer for the 21st Century. Sci. Am. 3, 3–11 (1991)

    Google Scholar 

  9. Zuehlke, D.: SmartFactory – towards a factory-of-things. Annu. Rev. Control 34(1), 129–138 (2010)

    Article  Google Scholar 

  10. Miranda, L.C.M., Lima, C.A.S.: Trends and cycles of the internet evolution and worldwide impacts. Technol. Forecast. Soc. Change 79(4), 744–765 (2012)

    Article  Google Scholar 

  11. Chen, Y., Hu, H.: Internet of intelligent things and robot as service. Simul. Model. Pract. Theory 34, 159–171 (2013)

    Article  Google Scholar 

  12. Mee, L.Y., Huei, C.T.: A profile of the internet shoppers: evidence from nine countries. Telematics Inform. 32(2), 344–354 (2015)

    Article  Google Scholar 

  13. Atzori, L., Iera, A., Morabito, G.: The internet of things: a survey. Comput. Netw. 54(15), 2787–2805 (2010)

    Article  Google Scholar 

  14. eMarketer: Retail Sales Worldwide Will Top $22 Trillion This Year Ecommerce eclipses $1.3 trillion, led by China and US (2014). Web: http://www.emarketer.com/Article/Retail-Sales-Worldwide-Will-Top-22-Trillion-This-Year/1011765#sthash.yrzMAR3s.dpuf

  15. Pine II, B.J., Korn, K.C.: Infinite Possibility: Creating Customer Value on the Digital Frontier. Barrett-Koehler Publishers, San Francisco (2011)

    Google Scholar 

  16. Miorandi, D., Sicari, S., De Pellegrini, F., Chlamtac, I.: Internet of things: vision, applications and research challenges. Ad Hoc Netw. 10(7), 1497–1515 (2012)

    Article  Google Scholar 

  17. Weber, R.H.: Internet of things - Governace quo vadis? Comput. Law Secur. Rev. 29(4), 341–347 (2013)

    Article  Google Scholar 

  18. Grieco, L.A., Rizzo, A., Colucci, S., Sicari, S., Piro, G., Di Paola, D., Boggia, G.: IoT-aided robotics applications: technological implications, target domains and open issues. Comput. Commun. 54(1), 32–47 (2014)

    Article  Google Scholar 

  19. Simon, H.A.: Making management decisions: the role of intuition and emotion. Acad. Manag. Executive 1(1), 57–64 (1987)

    Article  Google Scholar 

  20. Choo, C.W.: The knowing organization: how organizations use information to construct meaning, create knowledge and make decisions. Int. J. Inf. Manag. 16(5), 329–340 (1996)

    Article  Google Scholar 

  21. Feldman, M.S., March, J.G.: Information in organizations as signal and symbol. Adm. Sci. Q. 26(2), 171–186 (1981)

    Article  Google Scholar 

  22. Grant, R.M.: Toward a knowledge-based theory of the firm. Strateg. Manag. J. 17(2), 109–122 (1996)

    Article  Google Scholar 

  23. Spender, J.C.: Making knowledge the basis of a dynamic theory of the firm. Strateg. Manag. J. 17(2), 45–62 (1996)

    Article  Google Scholar 

  24. Hansen, M.T., Nohria, N., Tierney, T.: What’s your strategy for managing knowledge. Harvard Bus. Rev. 77(2), 106–116 (1999)

    Google Scholar 

  25. Firestone, J.M.: Key issues in knowledge management. Knowl. Innovation J. KCMI 1(3), 8–38 (2001)

    Google Scholar 

  26. Nonaka, I.: A dynamic theory of organizational knowledge creation. Organ. Sci. 5(1), 14–37 (1994)

    Article  Google Scholar 

  27. Andersen, N.: The undecidability of decision. In: Bakken, T., Hernes, T. (eds.) Autopoietic Organization Theory: Drawing on Niklas Luhmann’s Social Systems Perspective, pp. 235–258. Copenhagen Business School Press, Oslo (2003)

    Google Scholar 

  28. Brunsson, N.: The Irrational Organization: Irrationality as a Basis for Organizational Action and Change. Wiley, Chichester (1985)

    Google Scholar 

  29. Demarest, M.: Understanding knowledge management. Long Range Plan. 30(3), 374–384 (1997)

    Article  Google Scholar 

  30. Kuper, S., Szymanski, S.: Soccernomics. Nation Books, New York (2012)

    Google Scholar 

  31. Roberts, J.: The Modern Firm: Organizational Design for Performance and Growth. Oxford University Press, Oxford (2004)

    Google Scholar 

  32. Virtanen, P., Stenvall, J.: Älykäs Julkinen Organisaatio [In Finnish, An Intelligent Public Organisation]. Tietosanoma, Helsinki (2014)

    Google Scholar 

  33. Peters, T.J., Waterman Jr., R.H.: In Search of Excellence: Lessons from America’s Best-run Companies. Harper-Row Publishers, San Francisco (1982)

    Google Scholar 

  34. Porter, M.E.: Competitive Strategy. The Free Press, New York (1980)

    Google Scholar 

  35. Harrison, M.I., Shirom, A.: Organizational Diagnosis and Assessment: Bridging Theory and Practice. Sage Publications, Thousand Oaks (1999)

    Google Scholar 

  36. Schwaninger, M.: Intelligent organizations: an integrative framework. Syst. Res. Behav. Sci. 18(4), 137–158 (2001)

    Article  Google Scholar 

  37. Tsoukas, H.: Complex Knowledege: Studies in Organizational Epistemology. Oxford University Press, Oxford (2005)

    Google Scholar 

  38. Choo, C.W.: The knowing Organization: How Organizations Use Information to Construct Meaning, Create Knowledge, and Make Decisions. Oxford University Press, Oxford (1998)

    Google Scholar 

  39. Weick, K.E., Sutcliffe, K.E., Obstfeld, D.: Organizing and the Process of Sensemaking. Organ. Sci. 16(4), 409–421 (2005)

    Article  Google Scholar 

  40. Weick, K.E.: Sensemaking in Organisations. Sage Publications, London (1995)

    Google Scholar 

  41. Nonaka, I., Takeuchi, H.: The Knowledge-creating Company: How Japanese Companies Create the Dynamics of Innovation. Oxford University Press, Oxford (1995)

    Google Scholar 

  42. Argyris, C.: Organizational Traps: Leadership, Culture, Organizational Design. Oxford University Press, Oxford (2010)

    Book  Google Scholar 

  43. Karasek, R.: Job Demand, Job Decision Latitude and Mental Strain: Implications for Job Redesign. Adm. Sci. Q. 24(2), 285–308 (1979)

    Article  Google Scholar 

  44. Oldham, G.R., Hackman, J.R.: How job characteristics theory happened? In: Smith, K.G., Hitt, M.A. (eds.) Great Minds in Management: The Process of Theory Development, pp. 151–170. Oxford University Press, Oxford (2005)

    Google Scholar 

  45. Kaplan, R.S., Norton, D.P.: The Balanced Scorecard: Translating Strategy into Action. Harvard Business School Press, Boston (1996)

    Google Scholar 

  46. Pfeffer, J., Sutton, R.I.: Hard Facts, Dangerous Half-truths and Total Nonsense: Profiting from Evidence-based Management. Harvard Business School Press, Boston (2006)

    Google Scholar 

  47. Vedung, E.: Public Policy and Program Evaluation. Transaction Publishers, New Brunswick (1997)

    Google Scholar 

  48. Bouckaert, G., Halligan, J.: Managing Performance: International Comparisons. Routledge, London (2008)

    Google Scholar 

  49. Vargo, S.L., Lusch, R.F.: Evolving to a new dominant logic for marketing. J. Mark. 68(1), 1–17 (2004)

    Article  Google Scholar 

  50. Schillemans, T.: Does horizontal accountability work? Evaluating potential remedies for the accountability deficit of agencies. Adm. Soc. 43(4), 158–387 (2011)

    Article  Google Scholar 

  51. Bovens, M.: Public Accountability. In: Ferlie, E., Lynn Jr., L.E., Pollitt, C. (eds.) The Oxford Handbook of Public Management, pp. 182–208. Oxford University Press, Oxford (2005)

    Google Scholar 

  52. Kets de Vries, M.: The Leadership Mystique: Leading Behaviour in the Human Enterprise. Prentice Hall, Harlow (2006)

    Google Scholar 

  53. Kets de Vries, M.: Reflections on Groups and Organizations. Jossey-Bass, San Francisco (2011)

    Google Scholar 

  54. Hernes, T.: A Process Theory of Organization. Oxford University Press, Oxford (2014)

    Book  Google Scholar 

  55. McManus, S., Seville, E., Vargo, J., Brunsdon, D.: Facilitated process for improving organizational resilience. Nat. Hazards Rev. 9(2), 81–90 (2008)

    Article  Google Scholar 

  56. Hamel, G., Välikangas, L.: The quest for resilience. Harvard Bus. Rev. 81(9), 52–63 (2003)

    Google Scholar 

  57. McKenzie, J., van Winkelen, C.: Understanding Knowledgeable Organization: Nurturing Knowledge Competence. Thomson, London (2004)

    Google Scholar 

  58. McKinsey & Company: Big data: The Next Frontier for Innovation, Competition, and Productivity (2011). http://www.mckinsey.com/insights/business_technology/big_data_the_next_frontier_for_innovation

  59. Glova, J., Sabol, T., Vajda, V.: Business models for the internet of things environment. Procedia Econ. Finan. 15, 1122–1129 (2014)

    Article  Google Scholar 

  60. Mashal, I., Alsyryrah, O., Chung, T.-Y., Yang, C.-Z., Kuo, W.-H., Agrawal, D.P.: Choices for interaction with things on Internet and underlying issues. Ad Hoc Netw. 28, 68–90 (2015)

    Article  Google Scholar 

  61. Dar,K.,, Taherkordi, A., Baraki, H., Eliassen, F., Geihs, K.: A resource oriented integration architecture for the internet of things: a business process perspective. Pervasive Mobile Comput. (2015). In press

    Google Scholar 

  62. Wu, P.H., Uden, L.: Knowledge creation process as communication – connecting SECI and activity theory via cascading modes of communication. In: KMO 2015, pp. 403–412 (2015)

    Google Scholar 

  63. Krone, O., Syväjärvi, A., Stenvall, J.: Knowledge integration for enterprise resources planning application design. Knowl. Process Manag. 16(1), 1–12 (2009)

    Article  Google Scholar 

  64. Algera, P.M., Lips-Wiersma, M.: Radical authentic leadership: co-creating the conditions under which all members of the organization can be authentic. Leadersh. Q. 23(1), 118–131 (2012)

    Article  Google Scholar 

  65. Gardner, W.L., Avolio, B.J., Luthans, F., May, D.R., Walumbwa, F.: “Can you see the real me?” A self-based model of authentic leader and follower development. Leadersh. Q. 16(3), 343–372 (2005)

    Article  Google Scholar 

  66. Ladkin, D., Taylor, S.T.: Enacting the ‘true self’: towards a theory of embodied authentic leadership. Leadersh. Q. 21(1), 64–74 (2010)

    Article  Google Scholar 

  67. Syväjärvi, A., Uusiautti, S., Perttula, J., Stenvall, J., Määttä, K.: The reification of caring leadership in knowledge organizations research. J. Organ. Psychol. Educ. Stud. 3(2), 93–105 (2014)

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Finland Futures Research Centre, Turku School of Economics, University of Turku, Turku, Finland

    Jari Kaivo-oja

  2. School of Management, University of Tampere, Tampere, Finland

    Petri Virtanen & Jari Stenvall

  3. Turku University of Applied Sciences, Turku, Finland

    Harri Jalonen

Authors
  1. Jari Kaivo-oja
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Petri Virtanen
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Harri Jalonen
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Jari Stenvall
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Jari Kaivo-oja .

Editor information

Editors and Affiliations

  1. Staffordshire University, Stoke-on-Trent, United Kingdom

    Lorna Uden

  2. University of Maribor, Maribor, Slovenia

    Marjan Heričko

  3. National University of Kaohsiung, Kaohsiung City, Taiwan

    I-Hsien Ting

Rights and permissions

Reprints and permissions

Copyright information

© 2015 Springer International Publishing Switzerland

About this paper

Cite this paper

Kaivo-oja, J., Virtanen, P., Jalonen, H., Stenvall, J. (2015). The Effects of the Internet of Things and Big Data to Organizations and Their Knowledge Management Practices. In: Uden, L., Heričko, M., Ting, IH. (eds) Knowledge Management in Organizations. KMO 2015. Lecture Notes in Business Information Processing, vol 224. Springer, Cham. https://doi.org/10.1007/978-3-319-21009-4_38

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-21009-4_38

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-21008-7

  • Online ISBN: 978-3-319-21009-4

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics

Search

Navigation