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The Relevance of Knowledge Management and Its Implications on Groupon

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Introduction: The Relevance of Knowledge Management and Its Implications on Groupon

The contemporary world is extensively competitive and the business world is no less different than the other aspects. Business institutions, enterprises, and organisations are constantly trying to upgrade themselves via innumerable means. These processes of upgradation by the institutions often result in business benefits and they reap better organisational performances as a result. However, the processes of upgrading are innumerable and among them, Knowledge Management, also called KM, is a significant one. Knowledge management is a process by which organisations or institutions engaged in business “organise, assimilate, store, preserve and circulate” data, knowledge and information in their internal connections. The attributes of knowledge management have certain goals to achieve, which likely, benefit the organisation to taking up and formulating decisions rapidly and efficiently. Knowledge management also provides a holistic insight to the organisational management teams about the concerned organisation, which in turn is significant for identifying any underlying problems. Organisational performance as a whole is enhanced if the knowledge management sector of an organisation is sound and working properly. The main objective of this study is to outline the relevance of KM, in the context of the organisation Groupon, founded by Andrew Mason in 2008. Not only will the report follow the various implications of the knowledge process of KM, but it will also tend to comprehensively summarise the issues of a “community of practice and knowledge society”.


Figure 1: Groupon.

Question 1: SECI Model and its implications on Groupon

The SECI Concept

As discussed by the report in its introductory section, the modern business world is dynamic and requires extraordinary attributes for advancing its competitive advantages in the competitive market. Thus to increase one’s advantage in the competition, businesses take on different roles and actions to be in an advantageous position. Knowledge management and its access help business organisations formulate such action that they utilise to enhance their actions, plans, and decisions in the market which not only optimises their growth but also eradicates unnecessary competition. The process of knowledge creation is rigorous and there are multiple models by which it can be formulated. The study here will emphasise a specific model, the SECI model, which is an acronym for the four primary knowledge-creating dimensions: "socialisation, externalisation,, combination, and internalisation” (Zeeman, 2022). The SECI model systematically transforms the “tacit and explicit data” into “organisational knowledge”. “These researchers have paved the way for regarding tacit knowledge as a type of knowledge that has immense potential and value in a corporate organisational setting,” and as a result, it enhances business performances (‌Adesina, and Ocholla, 2019). “The model considers knowledge creation as a dynamic process, in which the continuous dialogue between tacit and explicit knowledge generates new knowledge and amplifies it across different ontological levels” (Farnese et al., 2019).

SECI Model

Figure 2: SECI Model.

Socialisation and its implications

The first process of the SECI model is "socialisation," which focuses on the transformation of organisational knowledge from "tacit to tacit" (‌Hajric, 2018). Tacit knowledge is those that are gained by the “living experiences” in the world and business sectors. This tacit knowledge is either gained by guidance, observation or learning (‌Oragui, 2020). The tacit knowledge is spread by formulating mentorship to newcomers, and others. This process of knowledge sharing here is dependent on the practice of achieving or gaining knowledge by "observation, practice and imitation" (‌Hajric, 2018). Organisational communication among employees and sharing of their knowledge form the basis for its success. An instance can be given here, for example, juniors learning about their job role in an organisation from the seniors who have already served the position. The knowledge that junior will gather, can be categorised as socialisation, as the data are primarily gathered from experiences. Groupon, the Chicago-based organisation, must deploy this first stage of the SECI model, in which they can initiate a comfortable work culture in which the knowledge sharing by the seniors with their juniors will be easy. This knowledge sharing will benefit the employees of Groupon by helping them develop their interpersonal and professional skills, positively impacting both organisational performance and revenue generation.

Externalisation and its implications

The second element of the SECI Model is the Externalisation process, which traces the transformation of knowledge from "tacit to explicit". Tacit knowledge and its attributes have been mentioned in the previous section; thus, the report now will focus on the explanation of explicit knowledge. Explicit knowledge is a type of knowledge that is well-formulated, codified, documented and structured and is not often based on experiences (Wainaina, 2022). The second process of knowledge conversion is believed to be a more difficult one, as the process includes codification and structuring the loose document into a structured format. The transformation of tacit knowledge into explicit, codified documents makes it easier for organisations to spread the required knowledge more rapidly (‌Hajric, 2018). As the knowledge that is being transformed here is from tacit to explicit, personal reflection and experiences form part of the explicit knowledge. However, even though explicit knowledge has a certain personal reflection in it, the ultimate outcomes resonate with the organisational aims and objectives alone. This rapid spread of knowledge within the organisational setup will enhance their performance levels and output. This formulation of new knowledge in the organisation of Groupon, which is formal, but has a personal reflection to it, will deliberately benefit it. The organisation will be aided by the creation of new knowledge, which will enhance its business growth and performance. The innovative creation of new explicit data based on employee engagement will also improve workers' skills.

Combination and its implications

This is the third element in the SECI Model and is considered the most simple in the knowledge conversion process, as it only follows the process of “explicit to explicit” (‌Hajric, 2018). Explicit knowledge is the codified or documented knowledge that is combined to formulate new knowledge in the organisational context. “Innovation and creativity” form the base of this elemental creation of knowledge; new data are manufactured from the already existing ones. The process here takes into account the pre-existing knowledge or codified document of the inter-organisational origins and formulates it into a more complex set of documents that are codified as well. formulation of new knowledge occurs here by deploying creativity and interconnecting the existing data in a more organised and systematically codified manner (‌Hajric, 2018). The combination process often takes up knowledge from external sources, and the organisation of concern here, that is, Groupon can deploy this method as well. As the combination method takes up databases, knowledge and information from outside of the organisational call, it will be beneficial for Groupon to utilise it for upgrading their skilled employees. Access to the combination knowledge will enable Groupon “to develop cross-organisational practices” among employees.

Internalization and its implications

The last elemental process of the SECI model is Internalisation, which is the opposite of the first process called socialisation. This process focuses on the transformation of knowledge from "explicit to tacit(Hajric, 2018). The explicit knowledge from the previous processes is generated and formulated to enhance the knowledge-sharing factors. The last process encompasses the internalisation of the explicit or documented knowledge by the stakeholders, followed by a complete process of transforming their internal knowledge capacity. Thus, the internalisation process meant the internalisation of the explicit data and the gradual resulting transformation of the stakeholders’ pre-existing tacit knowledge (Adesina and Ocholla, 2019). Thus, the last process modifies the users' tacit knowledge through codified and documented knowledge. Organisations can deploy this last method of internalisation, which will help them to provide a holistic learning environment for their stakeholders. The stakeholders and employees of Groupon can utilise this process, by which they will positively increase and expand their organisational and skill knowledge in the business field. This will not only make Groupon a strong organisation but will also enhance its employees' personal development. This process appears to be beneficial for organisational growth, and Groupon must deploy it for further development. However, despite the positive impacts, there are substantial issues that can arise in the internalisation process. As tacit knowledge is flexible, it is easier to interpret and mould it as per the requirement; however, explicit knowledge is the one that is documented and complex and often fails to pose any real appeal to modern world systems. This lacuna between the real-world requirements and the explicit knowledge often clashes with each other and does not serve the requirements. This often creates rifts and problems within the organisation, and thus, Groupon must avoid circumstances that will lead to certain clashes. For that, the organisation must undertake the process of internalisation in a dignified manner that will not only appeal to the real issues in the organisation but also provide better circumstances for growth.

Tacit and Explicit Knowledge

Figure 3: Tacit and Explicit Knowledge.

Question 2: Community of Practice and the Strategy to Groupon

Community of Practice

“Community of Practice,” also known as CoP, is a group or conglomerate of individuals that are together to discuss issues, concerns, and themes of relevant issues. They are together as a group and are mostly engaged in the process of knowledge sharing of the themes that are currently required in the business and the management world. The CoP shares knowledge, to address and achieve individualistic and group aims (‌Community of Practice, 2016). CoP shares knowledge through various methods and mediums, among them the virtual sharing of knowledge by using video conferencing, video calls, and other digital means. However, the Community of Practice are also based on “face-to-face” meetings alongside virtual practices (‌Community of Practice, 2016). The CoP is engaged as a group to spread business information and requirements and also believes in “sharing best practices and creating new knowledge”. This knowledge sharing by the community of practice advances sectors and professional practice as a whole. The community of practice are of greater relevance, especially at the organisational level. As they exchange knowledge with each other, it increases the knowledge base to an extensive level. Stakeholders engaged in the organisations are often benefited from this process. The organisational community of practice are often an internal sector of the organisation that is created to spread and document knowledge within an organisational context only. The main aim of the organisational CoPs is to collect and document the organisational performances of various strata and use them as knowledge during multiple required times. This has benefited organisations for a long time by enhancing their performances by analysing the mistakes of the past. There are three communities in total: “best-practice, knowledge-studying, and innovation communities” (‌Community of Practice, 2016). The CoPs benefit organisations by categorising, formulating, discussing, generating new strategies, planning new ideas, solving underlying issues, and incorporating strategies for enhancing initiatives. CoPs and their knowledge management processes are not only used in the business context but also in educational sectors, too. “One of the major strategies for managing knowledge for competitive advantage in universities is through CoPs” (Dei, and van der Walt, 2020).

Importance of Community or Practice

In the contemporary world, the issue of sharing knowledge and utilising it for the benefit of the organisation is something of greater relevance. The modern world operates on knowledge and the organisations that have a hold over it win the race. Thus, it is not only significant to analyse KM but it is also important to understand the relevance of CoPs in the contemporary context. The Community of Practice as a phenomenon has been described in the previous section of the report, and this section will aim to understand its relevance in the modern context. The community of practice not only formulates, categorises, and stores information or knowledge but also plays an active role in the spread of such dynamic, creative, and innovative ideas among the organisational stakeholders. This not only improves organisational performance but also provides a holistic environment for employees to grow in their sphere.

Community of Practice

Figure 4: Community of Practice.

The CoPs store knowledge of various themes and topics that can be utilised for innumerable purposes, including the growth of the organisation and the development of individual employees. The community is in a state of intermixing, in which knowledge is provided and knowledge is also gained. The formula of giving and receiving knowledge from internal and external sources is significant. This is significant as it helps organisations formulate plans and strategies for developing their business plans that are not only based on the internal explicit content and knowledge but also depend on the external explicit knowledge. This intermixed and enriched knowledge database provides organisations with a strong foundational base for growth and “drive strategy, solve problems, develop professional skills, and retain talents (‌Wenger, and Snyder, 2000). The process of storage and formulation of knowledge within the CoPs is extensive work, and often that results in the identification of several issues that underlie an organisation. This identification of the underlying problems within an organisation by CoPs benefits the former by eradicating them from the system. CoPs are found to incorporate behavioural practices among the participants that are often considered beneficial for the organisations. This implementation of practices is often considered the best way for organisational development, as the employees are trained holistically for growth. CoPs make the employees aware of market practices and enable them to understand the position of the organisation as well. The CoPs also help organisations to understand their position in the market, which is said to increase professionalism.

The concept of sharing knowledge is often regarded as personal and the community of practice often “capitalises on different learning styles”, as it undertakes the gathering of knowledge, in its tacit or explicit format from various individuals. The CoPs do not discriminate and take up knowledge from everyone, as it argue that “everyone has something to learn and something to teach(COMMUNITIES OF PRACTICE KNOWLEDGE MANAGEMENT BRIEFS ABOUT COMMUNITIES OF PRACTICE, n.d). Thus the CoPs are collaborative figures that not only share knowledge but also receive it for future reference or usage. The modern world and especially the business domain, is formed over the foundational base of networking, without which it is difficult to communicate with consumers and rivals. The CoPs forge various networking situations as they gain and share knowledge with innumerable stakeholders. “CoPs can bring together a network of diverse individuals around a similar interest and provide life-long professional connections that can ultimately stimulate innovative development practice”(COMMUNITIES OF PRACTICE KNOWLEDGE MANAGEMENT BRIEFS COMMUNITIES OF PRACTICE, n.d).

Limitations and Challenges of the Community of Practice

It will be an impossible task to provide recommendations unless there is a scrutinised study on the limitations of the CoPs as well. The CoPs are no doubt heavily beneficial for the development of the organisations, however, there is a substantial crisis in the CoPs that might hamper the growth. Initially, the nature of the CoPs can be focused on that shows, that these assimilations are often informal in their outcomes, thus making it difficult to consider them a source. Validate and sharing knowledge via the CoPs are often time constraining as the corporates are strict on the time issue (‌Gonçalves, 2019). This has often resulted in the rejection of CoPs as a resource to focus on conversing time. CoPs must inherit a democratic outlook in their functioning and it is quite difficult to access and share knowledge from the CoPs. Corporates are generally hierarchical in their outlook and structure, which often hampers the functionalities of the CoPs to their full potential (‌Gonçalves, 2019).


This section of the report will provide the concerned organisation, Groupon, with a strategic outlook by which they can either initiate a new product or a service to increase competition in the market. The strategy must initiate the process of defining goals and objectives. This process must include the initial stage, where Groupon will idealise the requirements of their target audiences and might analyse the new and creative ideas to explore the issues. To implement that, the organisation must take up the formulation of the members of the CoPs. As the development of a new product or service is done through virtual communities of practice, planning regular activities and building a network for promotion will be the second step of the strategy. The strategy must, however, open avenues by which feedback is gathered and regulated. This will not only help Groupon grow but will also develop their product line or service.

Question 3: Knowledge Society


The term Knowledge Society denotes an “enriched society” in which the members are inclined towards innovation and creation. The origin of this society was found in the works of various philosophers, and Marx also mentioned this in his works. “The knowledge society encompasses more than the knowledge economy or the digital economy, including such things as e-government, online education, digital medicine, and online volunteer work, e.g., the SETI project and protein folding” (Phillips et al., 2017). Thus, creativity and innovation form the basis of this society, and it have extreme relevance in the modern world. However, despite its various practical implications, there are issues regarding the knowledge society that are criticised.

Importance of Knowledge Society

The knowledge society is relevant as it provides the basis for developing any human society, that is, relevant knowledge. Knowledge forms the foundational base of all society, and the community of practice or knowledge management will be in the absence of the knowledge society itself. knowledge society not only shares valuable and significant data and information but also provides creativity and innovation as the basis for development. For organisations to grow and develop, they need to stay connected to the concept of the knowledge society. As the world is dynamic, society provides a holistic approach to keep its stakeholders updated about such changes and transformations.

Benefits of the concept of knowledge society on Groupon

The concept of knowledge society provides the members of Groupon with unrestricted opportunities for personal growth. It paves the way for more widespread production and use of knowledge of all types. It is the one responsible for advancing a country's economy and culture via the generation and dissemination of new information. In many communities, inequality is seen to be the result of people being left in the dark or left out of conversations. Human rights are prioritized in a knowledge society, which provides open, equitable, and ubiquitous access to all forms of information production (Costa, 2019). With the concept of human rights in a knowledge society the organization will allow itself in encouraging employees and workers from different communities and religions to have equal opportunity for different services offered by the business. The concept of knowledge society illustrates technological innovation. Thus, it can be assumed that the concept of a knowledge society will also allow the business to focus on innovations and motivate employees to develop an innovative mindset (Orzhel and Tryma, 2020).

Knowledge is essential to every society because it provides insight into the workings of the world and the means to make more informed choices. Groupon users embrace this idea of the information society as this allows them to think differently for executing operational tasks and activities (Muller and Young, 2019). They can better understand the issues facing the company and come up with novel, practical solutions. In a knowledge-based society, workers feel more empowered as they have the opportunity to gather knowledge on different scenarios and tasks. Groupon's staff adapted well to the modern world. In terms of their jobs, they assist one another by sharing knowledge on different topics. Members of this company's employee society are creative problem solvers and inspiring leaders. Employees begin cooperating as a consequence.

Criticism of knowledge society

The claim that the current civilization is an evolving culture of knowledge is challenged because all societies are knowledge societies.

Awareness, information, and the economy are all used interchangeably, demonstrating that there is still some uncertainty about the concept's precise definition. The idea of knowledge in connection to the knowledge society is as nebulous as the definition of the knowledge society itself. Knowledge and the knowledge society are both nebulous concepts, making it hard to quantify the knowledge society's impact (Bejinaru, 2019).

Since the information society is so elusive to quantify, it's tough to gauge to what extent it's permeated all sectors of modern life. The term "lifelong learning society" is often used to describe a knowledge society. Rather than being seen as an autonomous need of the knowledge society, initiatives to promote lifelong education are more likely to be seen as responses to mandates from the state. Knowledge failure or systemic waste is a significant issue, as shown by the many instances of system failure, deskilling, inadequate upskilling, redundant mountains of hardware, relentless innovation, forced innovation, professional and lifestyle stress and many more (Verburgt, 2020). These facts of the knowledge-based society cannot be ignored.

Knowledge-based societies are expected to advance human civilization, but they also come with a host of challenges related to education, employment, innovation, creativity, and infrastructure. It generates stress and disrupts both professional and personal life. The "digital divide" is a product of this global trend towards more computerization. As a result, members of various groups are exposed to a wide range of new information. One of the most significant complaints about modern society is that it is too reliant on the Internet. Thus, they have achieved the pinnacle of social fatalism, believing that technology should make all choices on their behalf.

Implication of the critics of knowledge society on Groupon

Groupon is a firm founded in Chicago that notifies its members by email about discounts at local businesses such as restaurants, spas, theatres, and more. The firm is a part of the information age and many of its workers are natives of this culture. However, contemporary critiques have hampered its effectiveness. Many detractors argue that there is no such thing as a knowledge society in the making; rather, all societies are already knowledge societies. As a result, Groupon has a hard time telling which of its workers are from that culture. People in today's culture, the critics said, are too reliant on the internet, which has led to a loss of identity. Even Groupon has to deal with this issue (Costa, 2019). The company's workers have become too reliant on their digital gadgets, which has stifled their ability to think beyond the box. They are stuck in a phase and are unable to innovate for the organization. Since innovation is crucial to survival in today's highly competitive industry, this is a setback for the organization. As a result, the business has not been able to influence itself in terms of knowledge in society. Workers are inefficient because they spend too much time on their digital gadgets. They can't keep to tight schedules and can't make independent choices.

Despite these complaints, the culture is beneficial to Groupon since the personnel are well-educated and have exceptional cognitive skills. They have a high rate of adaptation. Groupon employees have a sympathetic demeanour and are sensitive to the needs of their coworkers. The result is a more pleasant place to work. They consider their coworkers to be close friends. This aids in the upkeep of their rather harmonious society. Groupon employees have access to the internet and the ability to tackle a variety of complex challenges.


It can be concluded that an organization needs to adapt knowledge to society to improve the working environment for the employees and workers. The findings of the task illustrate that the employees and workers of Groupon are sensitive and concede towards the needs and requirements of their respective co-workers. The concept of knowledge society allows organizations to implement equal rights for employees and workers. This helps in creating an inclusive environment for the staff and employees. With the help of knowledge, social enterprises can understand issues more clearly and concisely.


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