DOI: 10.18488/picbsss.3/2015.3/3.35.42 ISBN: 978-969-9952-04-3 Handbook on Business Strategy and Social Sciences © 2015 Pak Publishing Group. All Rights Reserved. Handbook on Business Strategy and Social Sciences ISBN: 978-969-9952-04-3 homepage: http://pakinsight.com/?ic=book_detail&id=12 Conference venue : Langkawi Lagoon Resort, Malaysia Vol.3 , 2015 (3-4 October) 35 Organizational Capacity, Organizational Motivation, External Environment and Knowledge Transfer and Sharing: A Conceptual Framework Houcine Meddour 1 --- Abdul Halim Abdul Majid 2 --- Rushami Zien Yusoff 3 1,2,3 School of Business Management, Universiti Utara Malaysia, Sintok, Malaysia Abstract In times when the Multimedia Super Corridor (MSC) in Malaysia is designed as a catalyst for growth in achieving fully developed status by the year 2020. The MSC has a task of transforming Malaysia into knowledge based society. To this end, this paper presents a basic investigation on knowledge transfer and sharing in MSC status organizations by suggesting an integrated model which includes: organizational capacity, organizational motivation and external environment to facilitate knowledge transfer and sharing. The objective of this paper is to understand and assess the current practices of knowledge transfer and sharing in MSC status organizations by using SECI approach. This paper also highlights findings from its pilot study. Preliminary discussion and recommendations are posted toward the end of this paper. Keywords: Organizational capacity, Motivation, External environment, Knowledge transfer and sharing, SECI, Malaysia. 1. Introduction It has been widely known that the competitive advantage of organizations in today’s economy occurs from knowledge assets (Wei et al., 2009) which are determined as a process of creation and sharing knowledge effectively to increase organization effectiveness. This is based on the fact that knowledge assets have been linked to the organizational achievement as it is the source of competitive advantage (Nonaka and Toyama, 2003; Wei et al., 2009). Therefore, organization’s effectiveness can be improved through transferring and sharing useful knowledge. This is because knowledge plays an important role in creating competitive advantage in the organizations (Daud and Yusuf, 2008; Zack et al., 2009). However, it is also crucial to note that a sustainable economic development in a highly competitive world markets requires a direct involvement in the generation of knowledge (Wei et al., 2009). In this respect, Malaysia has experienced continuous transformation in economy (Daud and Yusoff, 2011). For instance. In 1960, Malaysian depended on agricultural economy; in 1970s, manufacturing industry, and two decades later, in 1991, the then Prime Minister of Malaysia, Tun Dr Mahathir Mohamad emphasized that it is necessary to transform and develop Malaysia economy towards a knowledge based economy in order to achieve vision of 2020 (Yap et al., 2010; Daud and Yusoff, 2011). Moreover, the establishment of the Multimedia Super Corridor (MSC) in 1996, started to change Malaysia from a production based economy to knowledge based economy. According to Daud (2012) this shift is to achieve Malaysia’s long term strategy to accomplish vision of 2020. Therefore, The main function of MSC status organizations is to put Malaysia into the information and knowledge age, which has three phases, namely phase one 1996-2003, phase two 2004-2010, phase three 2011-2020 (Khoo, 2009; Yap et al., 2010). According to Ramasamy et al. (2004) and Said et al. (2012) phase three is a challenging task for MSC status organizations as it deals with transforming Malaysia into a knowledge based society. In order to enhance MSC’s competitiveness, it is important to have a functional knowledge transfer mechanism which can improve their effectiveness by Contribution of Study This study is one of very few studies which have investigated knowledge transfer and sharing in MSC status organizations. Therefore, it contributes to provide better understanding by including the overall factors that affect knowledge transfer and sharing to achieve phase three 2011-2020 and compete locally and globally in business environment.