The impact of Web 2.

0 in the informal learning

of the Portuguese SME
Bruno Marques and Rui Brandão
Portuguese Industrial Association – Enterprise Confederation (AIP-CE) and
Centre of Studies on Portuguese Speaking Peoples and Cultures,
Portuguese Catholic University (CEPCEP/ UCP)

Summary
Small and medium enterprises (SME) are specially pressured in the competitive landscape
towards greater efficiency, specialization and innovation. Web 2.0 technologies can be used as
an answer to those needs, as enablers of new working methods, with special emphasis on the
role of communities and collaboration.

Recognizing the emergence of a learning and knowledge-based society, and the pivotal role of
SME in the European economy, AIP-CE and CEPCEP/UCP started a pilot study in Portugal.
The goal of this ongoing project is to contribute to the debate over SME usage of Web 2.0 tools
in the learning context, providing an insight over current trends as well as helping to design
future actions.

The researchers are using three different tools for empirical data collection: quantitative
surveys, workshops with “pioneer” SME and think tank sessions. As the study is not yet
completed, the focus of the current paper is to present the key ideas, conceptual model and
methodology, as well as our preliminary findings.

The preliminary results show the need of a deep change in the SME management paradigm
before the full exploitation of the Web 2.0 can occur. While the development of learning
environments and sharing networks is helping to configure an SME 2.0 vision, that vision won’t
have an easy time turning into reality due to the incipient usage of these tools and the existing
obstacles. Therefore, the concept of a fast, easy and global adoption in SME should be
discarded.

Nevertheless, the competitive enabler that a network based collaboration represents, the
recognized value of knowledge sharing and the willingness of people to participate in change
are all positive factors in the path towards the persistent and systematic development of the
SME 2.0 vision. Businesses and public policy makers should not be indifferent to this
opportunity and trend in the knowledge based society.

Keywords: Organizational learning, SME 2.0, Web 2.0, knowledge economy, collaborative
processes, informal learning

1 Introduction
In a world of new realities and demands, the SME answer to competitive pressure entails
knowledge and acquiring competencies, as well as extensive adoption of Information
Technologies (IT) in their business processes.

In this context, AIP-CE and UCP/CEPCEP started an exploratory study regarding informal
learning and the use of IT 2.0 in the Portuguese SME, with the purpose to contribute for the

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reflection regarding new skills but first and foremost on how this concepts could be translated
into the actual SME day to day reality, and having an insight on the current adoption and future
possibilities. The study received the financial support of POAT/FSE (Programa Operacional de
Assistência Técnica do Fundo Social Europeu).

Thus, the focus is to understand how Web 2.0 tools are being adopted on a strategic level,
especially for the development of their business processes with a logic of collaboration and
innovation. For this “SME 2.0” to become a reality, it is critical to devise the implementation plan
with proper consideration for the social and technical dimensions.

As a result, a few fundamental questions become clear: Are SME sensitive to this new
challenge? How to develop and support SME in their path towards this new vision?

As this is still an ongoing study, our main purpose is to set the key points, introduce the
conceptual model and methodology, as well as presenting our preliminary findings and future
orientations.

The Web 2.0 is currently “in the wild” and used for communication and
informal learning in a non professional context by millions.
Under competitive pressure in a knowledge based economy, are SME
adopting those tools for core business practices, namely knowledge
building informal learning?

2 Background
The European reference regarding business competitiveness and social cohesion and
development standards places a special emphasis on knowledge and innovation.

The wealth creation model is based upon new development standards, based on innovation
(applied knowledge): “In this new economic order, Europe cannot compete unless it becomes
more inventive, reacts better to consumer needs and preferences and innovates more.”
(Commission of the European Communities, 2006).

Aligned with the Lisbon Agenda, these strategic vectors become critically important with the
onset of the knowledge society.

With the goal of supporting learning in the organizations and the transfer of innovative
practices, the development of competencies and continuous human qualification are central
themes. In this context, naturally the focus becomes informal learning as knowledge
dissemination practice and a more productive and effective collaboration logic.

At the same time, SME have become of strategic importance at the political level, being the
centre of regional growth and employment in Europe. According to INE, in the year 2005, they
represented 99,6% of Portugal businesses, accounted for 75,2% of jobs and 56,4% of the
business in terms of value (IAPMEI, 2009). At the European level, circa 99% of the companies
are SME, which represents about 65 million jobs and are a decisive contributor for
entrepreneurship and innovation (Hamburg 2008). Therefore, It becomes clear that the
competitiveness of SME is critical for the overall economic performance.

Regardless of their collective importance, SME have obvious limits regarding IT investment,
talent retention and continuous investment on human capital.

In the current competitive context, infrastructure modernization, competency specialization and

the development of solid learning cultures, namely in the SME context, are unavoidable factors.

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In the learning perspective, it is relevant to increase the actual employees’ IT usage and the
informal learning contexts, with the specific goal of acquiring new competencies with business
value.

SME competitive race is also a race for learning!

2.1 Business strategies, competitiveness and knowledge

Companies that are more able to change, have a faster adoption of new working methods and
are more effective in selling knowledge based products will have a competitive advantage.

Organizational Learning becomes strategic, as a new factor – knowledge – becomes critical in

sustaining competitive advantage (Carneiro, R. 2003).

In fact, “In this new economy the ability to innovate, to differentiate, to create value, to adapt to
change are set by the way that old and new knowledge integrate value chains/networks, as
processes and products use useful critical knowledge, as well as by the companies,
governments (in general, organizations) and people’s ability to continuously learn. (Carneiro,
Fernandes e Conceição, 2001).

As we migrate from an industrial society towards information and knowledge based society,
intangible resources become the new competitive factors.

Table 1 – Change and competitiveness critical factors (Carneiro, 2003).

Industrial Age Information Age
• Muscle • Brain
• Tangibles • Intangibles
• Mass • Diversity
• Hierarchy • Networks
• Command • Persuasion
• Standardization • Customization
• Closed Systems • Open Systems
• Capital • Knowledge

Knowledge management is a tool with the potential to drive companies in the search for new
opportunities. Value networks compete and evolve based upon innovation, new idea generation
and new product development speed. The support of business development requires
collaborative abilities and cooperation strategies that often go beyond company borders. And
also requires the mobilization of collective knowledge and continuous learning in the
organizations (Pearn, 1994).

2.2 Organizational learning, knowledge management and SME

The emergence of a learning-based economy means the acceleration of knowledge creation

and sharing. The search for more favourable contexts for its application is an essential key for
greater productivity, along with new management principles (Stewart, 1997; Jashapara, 2004).
Therefore management must focus on Organizational Learning abilities, placing the human
potential and a cornerstone of competitive strategies (Bartlet & Goshal, 2001; Senior, 2000).

SME are depicted as having non-formal management system and a manly tacit action. Most do
not have a training strategy (Hamburg, 2008). Thus they could be prime candidates for the
consolidation of collaborative strategies based upon knowledge. But that requires a profound
change in the traditional management model, which is deeply rooted in the command and
control mindset with a low employee involvement, towards a new organization architecture: still
mainly informal but with structured explicit knowledge; effective but based on information
sharing; directive but taking into consideration all the experience and knowledge of the human

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structure; and more open, where socialization provided by physical proximity is enriched by
inter companies socialization.

Learning is always an active process. In the organizations it is predominantly a social process

(Nonaka & Kono, 1998; Adler, 2002; Pina e Cunha, Lopes, Ceitil & Rego, 2008; Schein, 1992),
where the individual knowledge transfer to the organizational level depends upon a complex set
of variables (Senior, 2001; Amaral & Pedro, 2004).

A collaboration culture is essential, as although learning may have an individual dimension it

occurs and is always applied in a social context. The value of the intangible components of
knowledge underlines the critical role of a culture of Collaboration in the organizations (Adler,
2002).

Learning also presupposes a social architecture that promotes ample and deep participation off
all workers-managers (Magalhães, 2005).

2.3 The rise of Web 2.0

Web 2.0 can be described as a vast group of information resources: wikis (of which Wikipedia is
the most famous example); blogs, Youtube; Google, social and Professional networks, etc,
made available through the Internet and where the users as a community are the driving force.
The great change in comparison to the previous generation is the materialization of the concept
of the Web as a social, connection based reality, where “multicast” is the norm, rather than the
exception.

The underlying promise of Web 2.0 is to change the way the business activities are organized,
towards a better coordination and increased and faster information sharing. With the mission of
supporting the activities of knowledge workers and a vision of organizations not as information
processors, but as social contexts dedicated to knowledge creation, the enterprise 2.0
paradigm comes into existence (McAfee, 2006).

Currently, Web 2.0 has had an undisputed leverage effect on information sharing and direct
access to knowledge resources. But regardless of its technological vitality and massive society
adoption, the corporate adoption does not occur in a neutral way. In other words, the Enterprise
2.0 potential is not fulfilled without the change in the traditional management models.

3 Vision, Conceptual model and intervention

3.1 A Vision towards SME 2.0

As referred, the investment in knowledge can result in new opportunities for the companies, in
the context of a struggle for competencies.

The Internet is a new paradigm, specially the value of the networks as tools for enabling
learning and new working methods, with special emphasis on the role of communities and
collaboration.

The decentralization of knowledge is now reachable, through the network and using powerful
collaboration tools. With the emergence of communities, the creation of shared and discussed
content, the Internet facilitates and widens the human connectivity. Informal learning is no
longer done only in the corporate hallways and coffee-breaks. The neighbouring pub is now a
twine of connections that exploded with the Web 2.0 websites (Viveiros, 2007).

In the end, what we look for is to promote network based learning models that foster
collaborative work, made viable by a social and relational climate that acts as a catalyst of wills
and affects the behaviour of the involved agents.

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3.2 Conceptual model

The vectors of the study were the new perspectives of knowledge based economy and learning
society, organizational learning, Web 2.0 tools and SME specific context. Taking into account
these factors, a knowledge management (KM) based approach was adopted for the study. KM
is a cross-disciplinary domain (Rebecca O. Barclay, Philip C. Murray, 1997), drawing from a
wide range of disciplines and technologies. Of special importance is the recognition that while
technology can be used in leveraging knowledge, alone it cannot deliver (McDermott, 1999).

As a result of the approach, we defined the following starting points:

− IT 2.0 adoption in SME (learning context) is in the first place a human and organizational
challenge, and only after a technological one;
− IT adoption in SME requires an internal change agenda, which can mean a structural
change;
− Informal learning values tacit knowledge. But it is conditioned by the internal culture
receptivity to the new paradigm and its collaborative focus;
− Informal learning signifies a vision centred not on “Information Technologies” but on
“Organizational Technologies”.

Organizational Learning is also interdisciplinary – therefore the analytical model implicit in the
study must take that into consideration (Zhang, MacPherson, Jones, 2006). We used a socio-
technical approach, deconstructing a tech 2.0 utopia which the idea of an unruly mass spread
of the tools would automatically translate into SME adoption, with neutral effects on the
business processes. As referred, “Organizational learning theory is multidisciplinary. Within the
literature, researchers note the relevance of psychology, organizational theory, innovation
management, strategic management, economics, organizational behaviour, sociology, political
science”. (Polito & Watson)

So our position is that Web 2.0 access and presence does not automatically translate into
companies 2.0. Regarding this, Carneiro, Fernandes e Conceição (2001) refer “(…) it is not yet
clear, in the mindset of many companies, that the medium-term success depends, in this ratio,
more of the well thought implementation of organizational, cultural and behavioural changes
than of a quantum of technology incorporation.”

The applied analytical model had the following underlying principles:

− Learning Organizations principles;
− (Informal) learning as a essentially social and dynamic process ;
− Focus on applied knowledge, with a knowledge model characterized by a group of
“organizational variables” that can speed up (facilitate) or slow down/block (hinder)
learning;
− Recognize that there is a transformation process derived from the impact of social IT on
SME learning

The following illustration depicts the above rational:

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 Learning Environment

Top Management 
Support

ICT  Collaboration 
Capabilities Model
Organizational 
Context
K Valorization Communication 
Model

Learning  Human Capital & 
Networks Competences

Web 2.0

Organizational Change Agenda
Illustration 1. Analytical Model (source: authors’ analysis).

The actual Organizational Context is translated into a set of catalysts – organizational

characteristics that can foster or hinder learning and knowledge (creation and sharing). These
catalysts were selected through the authors’ analysis, based upon different catalyst framework
(Quin ,1991; Senge, 1990; Stewart, 2007; Amaral & Pedro, 2004; Bartlet & Goshal, 1997).

SME 2.0 means a new management model, with business practices sustained on new ways to
collaborate, connecting people, groups, communities and companies.

The transformation towards an organizational paradigm of increased collaboration, learning and

using the potential of Web 2.0 tools is a multidimensional management challenge.

3.3 Intervention Model

One of the greatest challenges of the study regards its materialization in terms of the SME
activities. Although it is only an exploratory study, the observation of the actual reality was a
clear concern.

As referred, three different tools were used for empirical data collection:

Table 2. Tools for SME observation and data gathering.

Tool Description

Creation of a set of data gathering tools: surveys and structured interviews, to be

Survey
applied on a selection of statistically representative SME.

Workshops with SME, with the purpose of verifying adherence of the concepts to
reality – and, as a by-product, also some “evangelization” towards the importance
Knowledge Workshops of the theme.
During these workshops there was as strong emphasis in helping the participants
to translate their organizational context into values of catalysts, based upon their

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Tool Description
analysis of the organization. This process was strongly supported through
interaction with a facilitator.
It is also the area of scenario projection regarding possible evolution of informal
learning in SME.

Think Tanks with participants with varied backgrounds (sectors and activities),
Think-Tank
with the goal to draw up a common theoretical referential.

4 Empirical Component (field work)

At this time, six knowledge workshops and two think tank sessions were executed. The themes
of the Think Tanks were “Competencies, Qualifications and Employment” and “Change and
Learning”. Several exploratory interviews with SME were carried out, ad the quantitative survey
is currently on an answer reception stage.

Taking into consideration the available data, we will only present the preliminary findings based
upon qualitative analysis and how they relate regarding the initial assumptions of the study.

4.1 Key ideas field results

Key Idea #1: IT 2.0 adoption in SME (in the learning context) is in the first place a human and
organizational challenge, and only afterwards a technological one.

Empirical verification: This idea was debated during the workshops and there was a clear idea
the IT 2.0 is a mean to an end, and not the end on itself. Regarding the implementation
challenges we had the following observed gaps:

Illustration 2. Learning gaps (preliminary data).

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From the preliminary data a strategic gap surmises: insufficient valorisation of knowledge in the
current internal learning models.

This factor hinders learning dynamism and hurts employee creativity. Also, the collaboration
model does not help information sharing and easy communication.

In the future, there will be increasing demands on the human capital/competencies, and the
need for an effective top management support and a communication model that facilitates
learning and reinforces the human network.

Also of notice, technical abilities are considered by the SME as a weakness for the deployment
of new collaborative models.

Key Idea #2: IT adoption in SME requires an internal change agenda, which can mean a
structural change.

Empirical verification: In general, SME qualify the transformation as gradual, both at internal
and external levels.

Nevertheless, it is clearly recognized that this new processes represent a change. As an

example, top management support is qualified as being essential in the future, and human
capital/competences appear as a driver for change. Knowledge valorisation, the reinforcement
of internal and external networks and access to competencies are characteristics to be
developed.

Key Idea #3: Portuguese SME can currently take advantage of the new opportunity (Web 2.0
tools) and apply it on the day to day business reality

Empirical verification: Currently the adhesion on the field is feeble. On the short term no mass
adoption of tools 2.0 can be perceived, as depicted in the following graphic:

Illustration 3. Web 2.0 tools implementation: current and future (forecasted) adoption by SME
(preliminary data) (new implementations).

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There is no perspective of an automatic or generalized adoption. The most referred tools are
wikis and communities of practice and social networks. But taking into consideration the
timeframes that are presented, there is a strong suspicion of “wishful thinking”.

The current low adoption and the lack of IT resources also mean that there is room for a
support strategy for the SME, one that will have to increase the awareness for the potential
business impact of the web 2.0 tools and mature collaboration processes.

Key Idea #4: SME Management is aware of the potential and is open to change.

Empirical verification: SME management and employees have shown awareness of the
importance of network collaboration and value knowledge dissemination.

The motivation to participate in change towards new collaborative strategies is high, but their
positioning is not of a pioneer, but a more conservative standing.

The exploratory study suggests a low penetration of these themes, despite the high value
recognition and their agreement with the business challenges.

Despite being generically mentioned that future competitive demands will be met by increased
human competencies, enhanced collaborative strategies and greater employee involvement in
collective learning, there is a great gap regarding the actual implementation of Web 2.0 tools.

So the outcome on this idea is that while the management states as being sympathetic and in
agreement, in practice no steps towards the fulfilment of the concept have been taken.

Key Idea #5: There are facilitators that can impact on the implementation of informal learning
models by the using the potential of IT 2.0.

Empirical verification: The most important agents for facilitating the adoption of tools 2.0 were
identified as being the Consultants, Clients/Suppliers/partners, Schools/Universities, EU Project
funding and employees.

Illustration 4. Facilitators Evaluation (preliminary data).

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According to the respondents, all referred entities could improve their action. For example,
universities are seen as an entity with a strong potential for positive impact, but with low current
action. The same applies to Schools and to a lesser extent, Public Administration. Regarding
commercial entities, consultants are considered to be critical in the process. Interestingly,
employees are considered to be the facilitators that currently have the smallest gap compared
with their future role.

4.2 Synopsis of the Key Ideas

The following table presents the preliminary conclusions of the study. These should be
confirmed, rectified or even abandoned with the final results of the study.

Table 3. Empirical study synopsis (preliminary data)

Key Ideas Empirical Evidence

Status
1. IT 2.0 adoption in SME (in the
learning context) is in the first
place a human and organizational
challenge, and only afterwards a
technological one
Explanation
It is needed a multidisciplinary approach for the
introduction of the Tools 2.0 on SME.
The SME 2.0 vision not only depends of the technical
abilities – but these are required and there is a gap in
the companies that needs to be overcome.
Several other gaps that can block learning and
knowledge application also exist in the SME,

In general, SME refer that the required degree of

transformation is gradual, both on internal and
2. IT adoption in SME requires an
external level.
internal change agenda, which
Nevertheless, they recognize that these processes
can mean a structural change
represent a change and that top management support
is critical for its successful implementation.

The current adhesion to these tools is minimal.

3. Portuguese SME can currently
Furthermore, on the short term, there is no possibility
take advantage of the new
of an accelerated adoption of Tools 2.0 by the SME.
opportunity (Web 2.0 tools) and
There is room for a support strategy for SME adoption,
apply it on the day to day
but it must actively work and improve the maturity of
business reality
collaborative processes.

SME management did recognize the importance for

competitive performance of network collaboration and
knowledge sharing.
4. SME Management is aware of the
Also, the motivation in participating in change and new
potential and is open to change
collaborative practices is high.
Nevertheless, the positioning is not of pioneer, but a
less forward-looking one.

The most critical agents for facilitating the future

5. There are facilitators that can
adoption of Tools 2.0 were consultants,
impact on the implementation of
n.a. universities/schools, clients/suppliers
informal learning models by the
The change agents can be originated from the market,
using the potential of IT 2.0
public entities/policies and from the community

Legend:

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5 Preliminary conclusions
We stress that the exploratory study is not yet concluded, and the empirical data that we based
our findings is preliminary, hence these findings are likely to be changed.

Regardless of the preliminary status, the field work allows us to draw some conclusions, to be
confirmed, changed or withdrawn when the study is finalized.

Firstly, the key idea that informal learning means an “Organizational Technologies” centred
vision and not an “Information Technologies” centred one is confirmed in the empirical
observations. Knowledge valorisation, human competencies and top management support are
presented as critical in the learning organization challenge. The introduction of tools 2.0 should
take into consideration these organizational catalysts as well as the existing collaboration and
learning climate, with due concern with the maturity and sustained development.

The main results so far point for the need of a transformation process of the current SME
management paradigm in order for the potential of Web 2.0 to be captured by the SME. In fact,
the development of learning environments and sharing networks on the SME are an
opportunity, but the path for actual and generalized SME 2.0 implementation will not be easy
and not come into fruition without a certain degree of transformation.

It became apparent that any expectations regarding current widespread usage of tools 2.0 by
SME did not meet reality. Although indicators regarding the usage of “information society” in
Portugal do show a clear increase in access and usage, the business penetration of these tools
is still very incipient. Data suggests that Portuguese SME are still in a very early stage
regarding SME 2.0 vision. Also, the empirical data does not support expectations of a short
term widespread adoption of these tools in SME.

Against initial expectations, SME IT capabilities are still an issue, not only regarding the ability
to use IT as innovation support in collaborative process, but in the more common business
processes.

On the other hand, the competitive significance of network collaboration, the value of
knowledge sharing and the motivation to be a part of change are positive signs regarding the
perspective of the systematic development of SME 2.0 vision.

Public policies, schools, universities and EU project financing are referred as important factors
to enable that vision. Market related facilitators currently don’t have the influence that they are
expected to have in the future.

The preliminary findings represent new starting points, challenging all the stakeholders of these
themes to address the following issues:
− The concept of a knowledge based economy and a networked society is adopted by
current SME management that see in the competitive landscape the signs of this new
reality. This translates into the valorisation of human competencies, collaborative
strategies and the introduction of IT in the business processes.
− This vision and adhesion in principle are not yet translated into tools 2.0 usage, in which
seems to be a gap between strategy analysis and the actual implementation.
− In order to be successful, awareness raising strategies regarding SME 2.0 will probably
have to consolidate the “pioneer” SME efforts and increase the adhesion of the next
segment. Case studies and other means should be taken into consideration for the
implementation of the vision and the needed tools.
− IT capabilities represent a gap yet to be covered – although not sufficient, IT is a needed
factor.
− The harnessing of tools 2.0 potential will only be a reality with a change of the work
methods towards collaborative based ones.

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 − Due to the importance placed upon external facilitators, an intervention model will also
raise governance issues that should be attended.

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Authors

Bruno Marques
IT Governance coordinator at Global Seguros
Investigator at Centre of Studies on Portuguese Speaking Peoples and Cultures (CEPCEP) and
Assistant Teacher at Portuguese Catholic University (UCP)

Rui Brandão
Specialized Consultant at EDP
Investigator at Centre of Studies on Portuguese Speaking Peoples and Cultures (CEPCEP) and
Assistant Teacher at Portuguese Catholic University (UCP)

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Edition and production

Name of the publication: eLearning Papers

ISSN: 1887-1542
Publisher: elearningeuropa.info
Edited by: P.A.U. Education, S.L.
Postal address: C/ Muntaner 262, 3º, 08021 Barcelona, Spain
Telephone: +34 933 670 400
Email: editorial@elearningeuropa.info
Internet: www.elearningpapers.eu

eLearning Papers • www.elearningpapers.eu • 13

Nº 18 • February 2010 • ISSN 1887-1542