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Knowledge-Based Economy and Its Support in Decision Making Proposal


Introduction

Although being based on rather rigid principles of business interactions, the economy depends significantly on the technological innovations introduced into its environment. Therefore, building a comprehensive and all-embracive knowledge system is critical for organizations since it defines the opportunities that they can select during decision-making (Miao, ‎Benneworth & Phelps 2015).

The change mentioned above is especially significant for the organizations that are struggling to integrate the latest and the most innovative tools into their corporate design in order to cement their position in the selected market as innovators and pioneers in the chosen area. For this reason, the principles of KBE have become very popular in developed markets, the UAE economic environment being one of the prime examples of the phenomenon. However, the specified innovation requires additional management since it has also entailed several challenges that the UAE organizations will need to address.

As a rule, the concept of KBE largely implies the use of the available technological tools, which involve information technologies at present primarily. Świątek et al. (2016) define the subject matter as the economy that is founded directly on the “production, distribution, and using the knowledge and the information” (p. 164). However, Świątek et al. (2016) also point to the underlying ambiguity of the specified definition, explaining that numerous features are attributed to the phenomenon of the knowledge-based economy, neither of the sets being viewed as the definitive one (Świątek et al., 2016). Nonetheless, the specified approach toward determining the concept of KBE seems legitimate since it allows recognizing the impact that innovative and disruptive technologies have on the economy and its development.

The phenomenon of KBE has permeated the economic setting of the UAE, affecting the way in which financial transactions and business operations take place in the specified setting. The current economic vision of the UAE can be described as KBE (Hvidt 2016).

Indeed, according to Parcero and Ryan (2017), the UAE follows the principles of KBE rather precisely in its choice of economic activities. Specifically, the recent transitioning to the innovation-driven stage of the state economic development occurred seamlessly in the UAE society over the past decade, thus allowing it to develop the KBE system. The specified choice has contributed to a radical change in the UAE economic setting, causing every agent in its decision-making process to make decisions with the help of the existing knowledge system (David 2016).

The process of decision-making occurring through knowledge has, in turn, affected the overall quality of relationships between the members of the UAE market (Lekhraibani, Rutledge & Forstenlechner 2015). Specifically, by developing the need to acquire new information and skills as a part of their economic routine, the participants of the market relationships gained the insight needed to build a strong economic presence in the UAE and the global markets.

Problem and Its Causes

While the UAE has managed to transition to a new stage of market relationships faster than the rest of the GCC states, it is currently facing difficulties in implementing the principles of KBE in its economic setting. Particularly, since the UAE has become the pioneer in the application of KBE among GCC, it lacks the experience and understanding of the intricate processes associated with maintaining the set framework efficient.

To be more accurate, the UAE organizations need to determine the methods of capturing and recording the business knowledge acquired in the course of the KBE implementation (Mehrara & Rezaei 2015). The specified goal is likely to become more challenging than it might seem to the UAE at present as the UAE needs to introduce every participant to the subject matter and ensure that all organizations transition to the KBE framework successfully.

The described step demands a significant effort in regard to the changes in the existing education system within the UAE. People need to be taught about the concept of KBE and the rules of operating in it. Locating the ways of capturing and recording knowledge is a particularly important skill that the members of the UAE economic environment will need to develop in order to deliver the best performance possible and sustain the existing system (Bagnoli et al. 2016).

Consequently, the methodological difficulties of selecting the approach toward KBE that will lead to the most effective outcomes, as well as the design of the teaching strategies that will help deliver the necessary knowledge to students, should be seen as major challenges (Hvidt 2016). In addition, the problem of knowledge management and the alignment of the existing knowledge with the goals of a company demands attention. By locating the strategies that will help companies develop sustainable approaches toward the specified issues, the UAE will create a platform for the KBE implementation.

Research Questions

  • What are the initiatives that took place in regard to the KBE implementation in the UAE?
  • What are the tools and techniques that are used to support decision making in the KBE?
  • What are the advantages and disadvantages of the KBE in regard to decision making?

Research Method

Data Description

This study depends on three research designs for analyzing the data, which are the cross-sectional design, the case study, and the comparative framework for collecting data. The selection of the specified strategies will enable us to gather qualitative information with the help of interviews and documentation related to the concept that we are studying. Moreover, doing a literature review on the topic of KBE will help to develop a profound understanding of the idea and the benefits to our research as this will cover primary and secondary data. The qualitative analysis will give insights into the problem with professional feedback and the opinions of various authors, as well as with the analysis of reports or related documents that show how KBE affects decision making (Taylor, Bogdan & DeVault 2015).

Data Collection Tools

There are many types of data collection techniques that can be used for gathering information, including focus groups and interviews. Unfortunately, due to time limitations for the course, we will not be able to use quantitative data. Therefore, in our qualitative research, we will ask respondents to specify their level of agreement or disagreement based on the size of a symmetric agree-disagree scale for questions.

The specified approach will be used to capture the executive’s and managers’ opinions on how a KBE vision helps in supporting decision-making (Morrow et al. 2015). The interview will mainly cover open-ended questions to ensure gathering maximum data. Furthermore, reviewing documentation and using observation will enable us to collect as much data as we can in order to relate to the key concepts and elaborate further on the subject matter.

We will interview executives and managers to answer the research questions. The outcomes of the interviews will give an in-depth understanding of KBE’s impact on decision-making and allow us to see the dynamics in the current situation in the UAE market. The further study of primary sources of information, such as peer-reviewed journal articles obtained from e-libraries, will inform the possible solutions and further recommendations.

Data Analysis Strategies

After generating data, we will collectively put together the information to attain the desired shape. The process of data analysis will be continuous since data will be gathered and analyzed in an almost simultaneous manner on a specific time slot. Thus, comparison and logical reasoning will be used to analyze qualitative data that will be presented in a descriptive way. Bullets points, a graph, or tables will be incorporated to reflect the trends that can be observed in the collected information.

Most of the concepts and the data are based on qualitative research, which is why the research questions will be answered by describing the phenomena and locating qualitative connections between them. Thus, one will be able to create a theory that will explain the hypothesis. The specified steps will be contrasted to the quantitative part, where data will be evaluated using statistical techniques. Hence, raw data will be converted into useful information.

Limitations

It could be difficult to reach the needed information pertaining to the research question or to disclose the approaches used in organizations even for research purposes. However, we will try to obtain senior-level support for our cause (). Moreover, due to time constraints, we might not be able to obtain as many the responses to the interviews as possible. In addition, there may be difficulties in recruiting the participants who can benefit from the research more than junior staff.

Interview Questions

The interview questions will have to provide exhaustive information about the current state of KBE implementation in the UAE setting. Particularly, the data that research participants will offer will need to include the changes in the corporate management that have been taken in order to facilitate the transfer to the KBE framework within the UAE market. For this purpose, one will need to ask the participants about the issues associated with the management of data within the specified environment, the willingness of staff members to accept the newly proposed system of economic relationships, and the quality of data transfer within the US market.

Furthermore, it will be necessary to obtain information about the strategies that companies developed to handle the identified concerns. Finally, the positive and negative effects that the KBE framework has had on the decision-making process in the context of the UAE market will be determined. In the course of the study, the managers will answer the following questions:

  1. What are the mission, vision, and objectives of your company?
  2. Does your company support the idea of KBE?
  3. What tools does your organization use in order to follow the KBE principles during decision-making?
  4. Are there any impediments to the decision-making process that occurs in your organization?
  5. How does your company address the specified obstacles?
  6. How has the use of KBE affected the way in which decisions are made in your company?
  7. What, in your opinion, are the strengths and weaknesses of a decision-making framework based on KBE?

The answers to the specified questions will inform the further choice of decision-making techniques that should be designed to improve the current situation in the UAE market. While the transfer to a KBE-powered management framework may have allowed for significant improvements in the UAE economic system, they have also created additional challenges for organizations. Specifically, the problem of staff and management education should be considered as an important issue.

Conclusion

The UAE has developed a unique approach toward managing its current economic processes by deploying the principles of KBE into its economic system. However, the specified approach has demanded significant changes to be implemented across industries in order to create a sustainable environment for decision-making. In addition, the lack of competency among staff members and the absence of the relevant skills affects the outcomes of decision-making in the described environment.

At present, a vast range of employees is unaware of the tools that they need to use in order to meet the KSE standards. Consequently, the quality of their performance may be comparatively low, which can be addressed by enhancing the existing framework for economic education. As soon as people become aware of the goals that KSE pursues, they can choose the decisions that will allow their organizations to benefit in the target market.

It is believed that to handle the observed difficulties, UAE companies will need to focus on creating a framework for educating its managers and staff members to adjust to the environment of a KBE-driven economy. Specifically, UAE organizations will have to teach the principles of knowledge sharing and data management within the setting of the local and global economies. As a result, a gradual change will occur in the context of the USE market.

The rearrangement of the existing education framework, in turn, will entail a change in people’s perspective and the willingness to accept the ideas of KSE. The alterations mentioned above are especially important for encouraging people to acquire new information regularly and adapt to the changes in the identified environment. Thus, they will be able to meet new and more challenging quality standards successfully and focus on unceasing personal and professional development. As a result, they will be ready to integrate the latest KBE strategies when analyzing the data obtained in the realm of the UAE market.

Reference List

Bagnoli, C, Mio, C, Garlatti, A & Massaro, M 2016, ECIC2016-proceedings of the 8th European Conference on Intellectual Capital: ECIC2016, Academic Conferences and publishing limited, Udine, Italy.

David, SA 2017, ‘Knowledge convergence towards economic polarisation undergraduate students’ postgraduate course choices in the UAE’, International Journal of Knowledge Management Studies, vol. 8, no. 3-4, pp. 316-328.

Hvidt, M 2016, ‘Challenges to implementing ‘Knowledge based economies’ in the Gulf region’, in Videnscenter Om Det Moderne Mellemøsten, Syddansk Universitet Southern Denmark, Denmark.

Lekhraibani, R, Rutledge, E & Forstenlechner, I 2015, Securing a dynamic and open economy: the UAE’s quest for stability’, Middle East Policy, vol. 22, no. 2, pp. 108-124.

Miao, JT, ‎Benneworth, P & Phelps, NA 2015, Making 21st century knowledge complexes: technopoles of the world revisited, Routledge, New York, NY.

Mehrara, M & Rezaei, A 2015, ‘Knowledge Economy Index (KEI) in Iran and comparison with other countries of region: the vision 1404 document’, International Journal of Applied, vol. 3, no. 2, pp. 1-7.

Morrow, JR, ‎Mood, D, Disch, J & Kang, M 2015, Measurement and evaluation in human performance, 5 edn, Human Kinetics, Champaign, IL.

Parcero, OJ & Ryan, JC 2017, ‘Becoming a knowledge economy: the case of Qatar, UAE, and 17 benchmark countries’, Journal of the Knowledge Economy, vol. 8, no. 4, pp. 1146-1173.

Świątek, J, Borzemski, L, Grzech, A & Wilimowska, Z 2016, Information systems architecture and technology, Springer, New York, NY.

Taylor, SJ, Bogdan, R & DeVault, M 2015, Introduction to qualitative research methods: a guidebook and resource, John Wiley & Sons, New York, NY.

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IvyPanda. (2020, December 22). Knowledge-Based Economy and Its Support in Decision Making. Retrieved from https://ivypanda.com/essays/knowledge-based-economy-and-its-support-in-decision-making/

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"Knowledge-Based Economy and Its Support in Decision Making." IvyPanda, 22 Dec. 2020, ivypanda.com/essays/knowledge-based-economy-and-its-support-in-decision-making/.

1. IvyPanda. "Knowledge-Based Economy and Its Support in Decision Making." December 22, 2020. https://ivypanda.com/essays/knowledge-based-economy-and-its-support-in-decision-making/.


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IvyPanda. "Knowledge-Based Economy and Its Support in Decision Making." December 22, 2020. https://ivypanda.com/essays/knowledge-based-economy-and-its-support-in-decision-making/.

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IvyPanda. 2020. "Knowledge-Based Economy and Its Support in Decision Making." December 22, 2020. https://ivypanda.com/essays/knowledge-based-economy-and-its-support-in-decision-making/.

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IvyPanda. (2020) 'Knowledge-Based Economy and Its Support in Decision Making'. 22 December.

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