Literature Review – The Impact of Salary Inflation On the Saudi Labor Market in The Technology Sector and methodology

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Numbering the literature review as in the sample attached. Add more 5 references from the last 5 years.(from 2019) related to the literature review and the content of reference. (literature review is attached to be edited) Do presentation for the literature review as the sample. ( quote paragraph with references that is major in the literature review) – sample is attached to follow.Do methodology for the project in details in below area: ( from 6-7 pages) The study will use a mixed-method approach, combining quantitative data analysis with qualitative interviews. Secondary data on salary inflation metrics and firm financial performance will be gathered from government agencies, industry groups, and private datasets. Regression analysis will be conducted to test the hypothetical relationships. Additionally, semi-structured interviews will be held with human resource managers in technology companies and digital economy experts to provide context on salary inflation drivers and impacts. Thematic analysis will be used to derive insights from the interview data. The results from the quantitative and qualitative analyses will be triangulated to develop evidence-based conclusions and policy recommendations. The target population will comprise major technology sector firms and industry experts in Saudi Arabia. Appropriate sampling techniques will be applied based on data availability and interviewee accessibility. Project proposal is attached to have overview about the topic and have better understanding.

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Chapter 2: Literature Review
This chapter presented an overview of a significant literature review of knowledge
management and it impact on employees. It involves a clear definition and explanation of
knowledge, knowledge management and its impact employees. It then goes on to look at the
different types of knowledge, the value of conceptual frameworks, and how knowledge
management affects employee loyalty. The literature review will also include the impact of
Information technology, intellectual capital and organizational effectiveness on knowledge
management (KM), organizational learning, and KM as a whole.
Knowledge has a great contribution to an organization’s competitive advantage as well as
sustained performance. The sharing of knowledge leads to developed organizational
performance (Al Ahbabi et al., 2019). It is apparent that information sharing would be a
priority for such individuals, enabling effective performance and loyalty (Baran &
Sypniewska, 2020). The sharing of knowledge is important for firms to create personal and
institutional knowledge to form performance.
2.1 Impact of Information technology
With the growth of the economy, information and knowledge has become one of an
organization’s most valuable assets and a critical strategic resource for maintaining
competitive advantage. Many researchers theorize that information is the most valuable
resource for businesses; hence KM has become a standard business function. Lin (2019)
asserted that knowledge development is a critical component in determining whether or not a
company will succeed. Many leaders, on the other hand, misuse knowledge and do not foster
the necessary kind of knowledge for business success, which can lead to troubles for a
company. As a result, while knowledge innovation can help an organization maintain a
competitive advantage, it is difficult to handle and develop since knowledge is difficult to
quantify (Lin, 2019).
2.1.1 Knowledge and Knowledge Sharing
Knowledge has a great contribution to an organization’s competitive advantage as well as
sustained performance. The sharing of knowledge leads to developed organizational
performance (Al Ahbabi et al., 2019). It is apparent that information sharing would be a
priority for such individuals, enabling effective performance and loyalty (Baran &
Sypniewska, 2020). The sharing of knowledge is important for firms to create personal and
institutional knowledge to form performance.
Knowledge has several definitions, making it difficult to describe it to its fullest.
Knowledge broadly refers to skills, information, understanding, experience, education, and
understanding, achieved through learning and exploration. Understanding relationships and
causalities are critical for optimizing operations, developing business processes, and
forecasting the consequences of business practices. Knowledge could be implicit, such as in
the form of specific experiences and knowledge, or explicit, such as in the shape of
conceptual understanding.
2.1.2 Knowledge Management
Knowledge management is defined as the improvement, gathering, sharing, and extraction of
knowledge for subsequent recovery. Knowledge management has been employed as an
ingredient that plays a vital part in an organization’s revolutionary change. The value of
knowledge management is growing in emerging countries, and they are increasingly
capitalizing on it by implementing a knowledge management process in their organizations
(Lin, 2019). Developing a knowledge-sharing culture is critical when a company considers
knowledge management creation as one of its priorities. The main goal of knowledge
management is to practice the concept of information sharing in industries, which is why it
must be done. Thang & Tuan, (2020) stated that management of knowledge has been used as
creating, sharing, acquiring, and exploiting the knowledge to extoll organizational
performance. According to many researchers, the function of the management of knowledge
is to convert data into the form of information and in the same way information into
knowledge.
Knowledge management is a component that is used to enhance the organizational ability to
attain, use and share knowledge in many ways which develop its success as well as a term
(Naqshbandi & Jasimuddin, 2018). Based on the suggestion of Naqshbandi & Jasimuddin
(2018), knowledge sharing is the process that has a contribution to sharing knowledge by
using interchange and communicating with other members. The relationship of knowledge
sharing with individual work performance is also supported by Henttonen, Kianto, and Ritala
(2016). Individual job performance has many components. These components are used to
measure individual job performance.
2.1.3 Impact of Information Technology
Knowledge management (KM) needs the proper use of organizational strategies, as well as
the usage of information technology (IT). Knowledge management has been substantially
aided by the deployment of KMS. Enterprise resource planning systems, database decision
support systems, expert systems, lessons learned systems, and management information
systems are examples of IT services that enable knowledge management. Furthermore, social
mechanisms aid knowledge management. Such strategies include on-the-job coaching, faceto-face meetings, observational learning, and mentorship for knowledge transfer, and staff
rotation between departments.
Organizations’ capability to facilitate the transmission of information between employees has
substantially improved because of technological advancements. Information Technology has
long been a critical component of business management. The first goal was to automation
of business operations, which are the most basic procedures that underpin daily activity.
However, today’s IT job is primarily strategic. New information and communication
technologies have the potential to improve organizational performance while also allowing
for the establishment of long-term competitive advantages. Indeed, IT’ position in enterprises
has shifted from being a departmental operation to one that spans the entire company.
Hundreds of companies like Amazon, and FedEx uses information technology as a key
source of competitive advantage. Without new ICT (Information and Communications
Technology) infrastructure, knowledge management would not be at the sophisticated stage it
is now. Without them, the socialization and formalization of knowledge in organizations
would be nearly impossible.
In all KM processes, technological developments are essential and play a vital role in aiding
these processes. They are widely regarded as the most efficient means of capturing, storing,
transforming, and disseminating knowledge. And it is undoubtedly because of this
technology dimension that knowledge management has become increasingly significant in
today’s enterprises. Despite this, information technology is considered a facilitator of
knowledge management.
According to Brahma and Mishra (2015), ICT tools are used to improve knowledge
management, making an organization’s knowledge resources easy to identify and retrieve.
Technology, according to Brahma and Mishra (2015), is a key aspect in the adoption of KM
in businesses because it “enhances, complements, and enhances” the efficacy of the people
who work there. Brahma and Mishra (2015) argue that technology improves individuals’
knowledge work (KW) through enhancing the economic, labour-related, and work-related
parts of organizations.
According to most of the examined literature, the advancement of ICT has undoubtedly led to
a surge in the volume of information that can be easily accessible and duplicated.
Furthermore, Lopez et al. (2019) discovered that strong ICT competency improves
knowledge management methods such as knowledge development, codification, storage, and
transfer. It is also point out that ICT aids knowledge management by allowing knowledge to
be shared and revealed swiftly across knowledge networks.
2.1.4 Impact on Employee loyalty
Employee loyalty denotes a positive mind-set toward the company that motivates employees
to work harder than expected. Basheer et al. (2019) suggested that it has indirect effects on
obtaining maximum customer happiness, whereas Abbas (2017) argued that loyalty of
employees and job satisfaction are linked. Ahmed & Singh (2020) described loyalty as a
mental bonding, psychological reactions, and strong effect on organizational objectives and
principles, whereas Puspita et al. (2020) defined loyalty as a favored desire to be attached
with an organization for higher performance, wellness, and achievement of organizational
goals. Strong devotion, collective activities, and beneficial consequences for the organization
are all indicators of loyalty (Baran & Sypniewska, 2020).
Employee loyalty provides an operational concern toward the organization, which explains a
lot that can enhance KSB (Knowledge-Sharing Behavior) as a means of motivation. In line
with this, it is indicated that KSB and employee loyalty are connected positively. Some other
researches steadily exposed a strong relationship between these two variables (For example,
Kim and Park, 2017). In another study, it is explained that limited KSB can develop a lack of
loyalty and morale of employees which in turn amplifies employee turnover of the
organization. Similarly, Abbas (2017) included that employee having the opportunity to exist
in a knowledge-sharing environment disposed to be loyal to their organization. The research
result of Puspita et al. (2020) also supported a similar argument.
2.2 Impact of intellectual capital
Human capital, structural capital, and relational capital are the three components of
intellectual capital: human capital exists in the individual, structural capital exists in the
organization, and relational capital dwells in the interaction between the businesses. Different
settings and substance of intellectual capital dimensions determine the technique for
achieving superior firm execution (Hayaeian et al., 2021).
Previous research has proposed a variety of paradigms for deeper understanding IC and
making it easier to operationalize at the company level. According to research, IC is primarily
made up of two components: human capital and structural capital, which is further separated
into two subcategories: organisational capital and customer capital. It is find that three
primary components of IC have been universally acknowledged, based on existing
frameworks: human capital, structural capital, and relational capital (Wang et al., 2016).
Individual performance is vital for assessing an employee’s job abilities and determining their
work significance in an organization (Baran & Sypniewska, 2020). For the goal of measuring
work performance, five important factors have been used: job role, career, team, innovator,
and organization. Those five characteristics have been identified as the most important
factors in an organization’s success. These five factors are linked to the process of
information exchange.
2.2.1 Impact of Job Role
The role of the job is much significant for any employee working in an organization because
they spend a lot more time participating in their job role. It is a basic initiative of the
procedures of human resources. (e.g., analysis of work, performance appreciation, the
evaluation of basic salary, the equal decision of payment) (Welbourne, & Paterson, 2016). It
measures their job both in administrative and teaching under the process of key performance
index. An employee who is interested to share knowledge is more skilled in their job than the
employee who shares the knowledge at a low level (Hagemeister & Rodríguez-Castellanos,
2019).
2.2.2 Career Role
The term “career role” relates to the duties that must be fulfilled, the dimensions of the task,
and the ability to perform to achieve greater individual goals. The structure of the career
development ladder is usually prescribed as the achievement of individual employees (Ilyasa
et al., 2018). An individual with a mainly oriented career may devote a significant amount of
time and attention to self-promotion, the building of strategic contacts, credentialing through
formal as well as informal study and policy of an organization, all at the expense of work
performance (Welbourne, & Paterson, 2016). The proper way to introduce information
exchange is through a career.
2.2.3 Innovator Role
Because of the widespread interest in innovation in all sectors and the scarcity of research
reporting on the impacts of such a strategy, the role of innovator is a critical component to
numerous studies of identity inside businesses. The creation, capture, exchange, and
integration of knowledge, as part of knowledge sharing, have a significant impact on both
innovation and performance (Ilyasa et al., 2018).
2.2.4 Team Role
A knowledge team is formed by dyadic behavior in relation to the exchange of information,
coordination, network connection, mentoring, and guidance intended to facilitate the
effectiveness and efficiency for improving individuals and the actions of the organization.
Team role has a great contribution to knowledge sharing. The teams working among the
intra-organizational units may be so much interested to share essential knowledge and
reducing the performance of employees.
2.3 Impact of organizational effectiveness
Organizational culture is most significant to facilitate the sharing of knowledge and influence
performance (Thang & Tuan, 2020). There are lots of techniques and merit systems of
performance that have been made by organizations in both sectors including public and
private to defend and to improve the performance of its members (Madhushani & Mudalige,
2020). For example, previous research defines that Human Resources Management (HRM) is
carried out by the different organizations to evaluate the performance of the employee.
Scholars explored different concepts and definitions of organizational effectiveness over the
last few decades (Baran & Sypniewska, 2020). Amongst them, some researchers focused on
it as an effective solution for workers’ burnout (Juan et al., 2016), and some went more than
burnout and claimed it as a basic need in the job place (Kumar and Pansari, 2015). Schaufeli
(2017) characterized this concept as vigor, devotion, and adaptation. Maximum possible
employee engagement creates high levels of enthusiasm, mental health, and dedication in
work (Baran & Sypniewska, 2020).
2.3.1 Employee satisfaction
Employee satisfaction entails employees’ positive evaluations of their employment conditions
and facilities, supervision of supervisors, payment, and relationships with co-workers
(Madan, 2017). Statistical study shows that when employees are satisfied at work, they are
more committed to their jobs, and the likelihood of absenteeism decreases. And those
dedications to work have a good impact on the quality of products and services (Huang et al.,
2016). Employee satisfaction generates organizational values and immediately leads to the
achievement of ultimate goals, as well as acceptance of the organization as one’s liability
(Octaviannand et al., 2017). Furthermore, satisfied employees are more likely to be selfmotivated, willing to work hard, and demonstrate positive conduct toward their organization
than dis-satisfied employees (Ilea et al., 2020).
The relation between employee satisfaction, KSB, and other related concepts was
successfully established by researchers in their studies. Tang et al. (2020), for example,
conducted research on an electric company in China and discovered a favourable association
between employee happiness and KSB. The same outcome was discovered in the Indian
telecommunications business. Sánchez et al. (2015), on the other hand, investigated the
association between information sharing and employee job satisfaction. Hanaysha (2016), on
the other hand, conducted an empirical study on luxury hotels in Turkey and found no
correlation between information sharing and employee happiness. Furthermore, knowledge
sharing fosters a work atmosphere that enhances job enrichment and increases employee
satisfaction. To be more specific, information sharing increases employee happiness by
facilitating easy access to new knowledge and improving task efficiency.
2.3.2 Employee identification
Employee identification refers to the rational condition in which employees are regarded as
the organization’s most important component (Kumar and Pansari, 2015). Employees who
identify as members of the organization will always have a sense of direct duty and
responsibility for the company’s success and failure. Employees who have been identified
will accept organizational compliments as their own. When employees have a full
relationship and connection of identification with the organization, they will guide their
conduct with the internal environment in the organization and will only consider the
organization’s interests (Mohanty & Arunprasad, 2020). In a service-oriented industry such as
the hotel industry, management wants staff to give their all by providing the greatest
customer service possible.
Previous studies in the area of employee identification such as Ford et al. (2015) found that
this construct has a huge impact on the effectiveness and cohesiveness of organizational
activities. Besides, Schaufeli (2013) found that the learning behavior of employees depends
on collaborative KSB; whereas, Chiu et al. (2006) emphasized employee identification as a
driven factor for employee KSB within the organizational culture. On the other hand,
Albrecht et al. (2015) explained that intrinsic motivation and identification play a vital role
for KSB. Similarly, Lee & Song (2020) also followed the social exchange theory and
revealed that knowledge sharing relies much on strategic management and the employee
identification process. Another similar study, Ilyasa et al. (2018) revealed that trust and
employees’ work identification are related to KSB.
2.3.3 Employee commitment
Employee commitment motivates employees to go above and beyond the scope of their job
responsibilities. And it is the result of shared experiences with others that have resulted in this
possession. Employees that are committed to the organization protect organizational
confidentiality and give their all for the greater good (Lin, 2019). Previous research has
shown that employees that have a strong connection to their organization will not leave, will
maintain frequently, will do their best for corporate production, and will exhibit belonging
behaviour (Colnar & Dimovski, 2020). Commitments, on the other hand, produce stronger
attachment, involvement, and further superior benefits such as convincing customers as
service-based enterprises (Monga, 2019).
Several prior empirical pieces of evidence explained the association between employee
commitment and KSB. Monga (2019) claimed commitment as a tool for connecting
individuals and groups which leads to discretionary actions aligned with the organizational
interest, employee KSB and higher quality of services. Employees having a high level of
commitment tend to have a good quality of relationships as well as a greater degree of
innovation through knowledge sharing (Baran & Sypniewska, 2020).
2.4 Suitable Implementation to Achieve the Employee Loyalty.
Employee loyalty provides an operational concern toward the organization, which explains a
lot that can enhance KSB as a means of motivation. In line with this, previous researches
indicated that KSB and employee loyalty are connected positively. limited KSB can develop
a lack of loyalty and morale of employees which in turn amplifies employee turnover of the
organization. employee having the opportunity to exist in a knowledge-sharing environment
disposed to be loyal to their organization.
2.4.1 Through Knowledge Sharing
The core theme of knowledge management has been identified as knowledge sharing which
successfully helps in attaining employee loyalty. Its success is impossible to comprehend
(Ilyasa et al., 2018). According to Lee & Song (2020), knowledge sharing is defined as the
exchange of knowledge between two single people, where one person inquiries about
knowledge and the other just uses the knowledge. Therefore, knowledge sharing can be
referred to in the context of “sharing” as such and does not take a specific viewpoint on the
actualized transfer.
2.4.2 Enhancing Relationship Satisfaction
The satisfaction in a successful relationship can be regarded as the significant measure in
knowledge management and employee loyalty. The satisfaction in a relationship can be
termed as emotional or expressive situation toward the association with a product or
organization on the general assessment of the relationship. It is important, that satisfaction in
relationship in this case reveals collective analysis over the track of relationship other than
encounter-specific or transactional analysis. Furthermore, the satisfaction in a relationship
diverges from common satisfaction due to the fact that satisfaction indulges in a relationship
with a brand name or organization. The employees want to be satisfied with the association
with an organization when the workforce professed elevated level of the organizational
withholding orientation. The satisfaction in a relationship leads to higher efficiency and more
prospective interface. In this context, the effective satisfaction in a relationship influence
decision making, profit, and market share positively. Therefore, it can be said that, every
possible relationship satisfaction is necessary for effective employee loyalty.
2.4.2 Enhancing Job Performance
Employee performance is defined as the achievement of goals by employees at work, but
Cesário and Chambel (2017) viewed organizational success as a result of employee
performance. Prior research has shown that the effects of employee performance might be
productivity, organizational improvement, employee well-being, employee satisfaction,
organizational satisfaction towards employees, enhance loyalty (Colnar & Dimovski, 2020).
In this regard, studies such as Baran & Sypniewska (2020) revealed that employee
performance is strongly related to positive approaches such as information sharing. Individual
work performance in public sector organizations are influenced by knowledge sharing (i.e.,
people’s proclivity and actualized behaviors in sharing knowledge with other organizational
actors) (Henttonen, Kianto, & Ritala, 2016). Quigley et al. (2007) studied the sharing of
knowledge on standards as well as confidence. Their findings are found that the motivational
mechanisms provide facilities in sharing of knowledge between team members, improving
the direct and interactive impacts on individual performance.
Researchers like Buil et al. (2019) advocated that knowledge sharing can bring a vast level of
benefits to the organization by developing the human capital of the organization. In addition,
KSB contributes to developing the workforce to enhance employee performance (Lin, 2019).
The study of Guan & Frenkel (2018) in Xian, China found the connection between KSB and
employee performance in a quantitative approach. In another similar kind of research,
Sendawula et al. (2018) deliberated the impact of KSB in two different positions of employee
performance, namely individual and team level.
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1
Literature Review
A crucial aspect of Saudi Arabia’s Vision 2030 involves the establishment of a thriving
technology industry to facilitate economic diversification. Considerable funds have been allocated
towards the development of digital infrastructure and the implementation of incentives to
encourage innovation (Sarabdeen & Alofaysan, 2023). Nevertheless, the swift expansion has
resulted in inflated remuneration for proficient technology experts, giving rise to apprehensions
regarding the long-term viability. There is a need for a thorough examination of the factors,
consequences for organizations, and policy measures in response to the increase in technology
salaries in Saudi Arabia.
The rapid growth of the technology sector has led to a higher need for certain expertise,
such as software development and data science. The emergence of chronic pay inflation, driven by
variables such as workforce nationalization policies and global talent competitiveness, poses a
policy dilemma that has repercussions for firms, employees, and the larger economy. This
literature study examines the current body of research on the rise of wage inflation in Saudi
Arabia’s technology sector. It investigates the effects of this inflation on firm profitability and
operations, as well as its broader ramifications on the economy and labor market dynamics. The
investigation uncovers gaps across different academic disciplines in terms of accurately measuring
the factors that contribute to inflated wage trends. It also investigates the resulting implications on
hiring, turnover, and productivity within technology businesses. Findings from recent research can
provide guidance on balancing the objectives of advancing digital transformation and controlling
personnel expenses.