Knowledge Management Most Cited 4 -6 Hsin-Min Lu

Knowledge Management Most Cited 4 -6 Hsin-Min Lu March 21, 2007 MIS 580 1

Gunnar Hedlund Strategic Management Journal, 1994 A MODEL OF KNOWLEDGE MANAGEMENT AND NFORM CORPORATION 2

Introduction Two important issues for firms: ◦ Internal organization and management of firms ◦ Dynamics of firms Existing theories have limited analytic ability: ◦ Transaction cost ◦ Evolution theories Solution: ◦ A model of knowledge management 3

Types of Knowledge Individual Knowing Articulated calculus Knowledge (AK) Group Organization Interorganization Domain Quality circle’s Organizational documented chart analysis of its performance Cross cultural Team Tacit coordination Knowledge negotiation skills in complex (TK) work Corporate culture Suppliers’ patents and documented practices Customers’ attitudes to products and expectations 4

Knowledge transfer and transformation ASSIMILATION Individual Reflection Articulation Tacit Knowledge (TK) Appropriation Extension Dialogue Expansion DISSEMINATION Internalization Articulated Knowledge (AK) Group Interoranizational Organization domain 5

Knowledge transfer and transformation (cont) Articulation ◦ Tacit turns explicit ◦ Example: Senior engineers write down their design rationale Internalization ◦ Articulated turns tacit ◦ Example: Internalize the training materials Reflection = Articulation + Internalization ◦ The interaction between articulation and internalization ◦ Genuine Knowledge Creation ◦ Example: Writing an science paper 6

Knowledge transfer and transformation (cont) Extension ◦ Transfer of knowledge from lower → higher agency levels ◦ Example: An employee emails project charter Appropriation ◦ Transfer of knowledge from higher → lower agency levels ◦ Example: Group members coaches a new member Dialogue = Extension + Appropriation ◦ The interaction between extension and appropriation ◦ Different dialogue for different agency levels ◦ Example: Two members from different groups share their project experiences 7

Knowledge transfer and transformation (cont) Assimilation ◦ The input of knowledge ◦ Example: Hiring key individuals from outside Dissemination ◦ The output of knowledge ◦ Example: Selling of patents 8

Japanese Corporations Input: Articulated Assimilation (patent or tangible products) Tacit knowledge grows inside Exports in product form AK TK AK Weakness: large system design ◦ Rely on tacit knowledge for internal coordiation is less effective for complex tasks 9

Western Coporations Input: Tacit and articulated Process: Explicit, structured implementation Output: Tacit and artulated AK + TK Robust and expandable organzation structure ◦ Personel turnover ◦ Excel in managing large and complex system 10

N-form vs. M-form N-form Technological interdependence People interdependence Critical organizational level Communication network Top Management role Competitive scope Basic organizational form M-form Combination Division Temporary constellations, given pool of people Middle Permanent structures, changing pool of people Top Lateral Catalyst, architect, protector Focus, economies of depth, combinable parts Vertical Monitor, allocator Diversification, economies of scale and scope, semi independent parts Hierarchy Heterarchy 11

Citation Summary JOURNAL OF MANAGEMENT STUDIES STRATEGIC MANAGEMENT JOURNAL ORGANIZATION STUDIES ORGANIZATION SCIENCE INTERNATIONAL JOURNAL OF TECHNOLOGY MANAGEMENT 0 30 2 4 6 8 10 12 14 2005 2006 2007 Cited Record Count 25 20 15 10 5 0 1996 1997 1998 1999 2000 2001 2002 2003 12

Discussion N-form is associated with permanent personel pool. Is it necessary? M-form for radical innovation and N-form for incremental innovation? 13

George P. Huber Organization Science, 1991 ORGANIZATIONAL LEARNING: THE CONTRIBUTING PROCESS AND THE LITERATURES 14

Introduction An entity learns if, through its processing of information, ◦ The range of its potential behaviors is changed ◦ Does not have to be conscious or intentional ◦ May not results in behavioral changes Basic assumption: An organization learns if any of its units acquire knowledge that is recognizes as potentially useful to the organzation 15

Four Learning Constructs Knowledge Acquisition ◦ Obtain knowledge Information Distrubution ◦ Sharing and creating new knowledge Information Interpretation ◦ Derive common understanding Organization Memory ◦ Stored for future use 16

Knowledge Acquisition Acquire For information or knowledge example: ◦ Customer survey ◦ Research and development activities ◦ Performance reviews ◦ Analyses of competitor’s product 17

Five Types of Knowledge Acquisition 1. Congenital Learning ◦ Inherited Knowledge 2. Experimental Learning ◦ Organizational Experiment ◦ Organizational self-appraisal ◦ Experimenting organizations ◦ Unintentional or unsystematic learning ◦ Experience-based learning curves 18

Five Types of Knowledge Acquisition (cont) 3. Vicarious Learning ◦ Acquiring second-hand experience ◦ Corporate intelligence ◦ Imitate other organizations 4. Grafting ◦ Acquiring knowledge by hiring experienced personel from outside ◦ Acquisition of another organization for new knowledge 19

Five Types of Knowledge Acquisition (cont) 5. Searching and Noticing ◦ Scanning Wide-range sensing ◦ Focused Search Narrow segment search, often in response to problems or opportunities ◦ Performance monitoring Gain feedback for prespecified goals 20

Information Distribution Information distribution determins both the occurrence and breadth of organization learning Factors affect information distribution ◦ Information supplier knows who needs it ◦ Cost of routing the information ◦ Social status ◦ Workload 21

Information Interpretation The process of translating events and developing shared understanding and conceptual schemes Shared interpretation of new information is affected by ◦ ◦ Prior cognitive maps and framing Media richness used to convey the information Information overload on the interpreting units Unlearning needed before generating new interpretation 22

Organization Memory Main factors affect organzation memory: ◦ Membership attrition ◦ Information distribution and interpretation ◦ Norms and methods for storing informaiton Routine and nonroutine; SOP; ◦ Methods for locating and retrieving stored information Information system Expert system for organization memory 23

Citation Summary ACADEMY OF MANAGEMENT REVIEW JOURNAL OF MANAGEMENT STUDIES ORGANIZATION SCIENCE MANAGEMENT LEARNING STRATEGIC MANAGEMENT JOURNAL 0 90 5 10 15 20 25 30 35 40 Cited Record Count 80 70 60 50 40 30 20 10 0 1996 1997 1998 2000 2001 2002 2003 2004 2005 2006 24

Discussion Is imitation a good way of learning? What is the role of Information Technology in organization learning? 25

Bruce Kogut and Udo Zander Organization Science, 1992 KNOWLEDGE OF THE FIRM, COMBINATIVE CAPABILITIES, AND THE REPLICATION OF TECHNOLOGY 26

Introduction A major objective of a firm is to grow To achieve the goal, a firm must ◦ Codify tacit knowledge and faciliate technology transfer However, structured knowledge also lower the threshold of imitation How to overcome the shortcoming? 27

Two Kinds of Knowledge Information ◦ What something means ◦ Can be transmitted without loss of integrity ◦ Attribures of an object in programming language Know-how ◦ How to do something ◦ Like a recipe ◦ Methods of an object in programming language 28

What Prevents Knowledge Transfer and Replication? A firm’s functional knowledge is embedded in its organization structure and principles ◦ A common language must be developed for knowledge transfer ◦ Organization principles provide the mechanisms to codify technologies into a language accessible to a wider circle of individuals Without a common stock of knowledge, transfer of knowledge between groups is very difficulty 29

Create a Technology vs. Use a Technology Transferring technology need to reduce the cost of accessibility by creating a middle layer outside the core technology ◦ For example, OS on top of hardware ◦ Using a technology becomes easy However, the knowledge about how the technology work remians protected ◦ Knowing how to use Windows XP is not the same as knowing how to create a Windows XP The threshold of imitation remains high 30

Combinative Capabilities Generate new applications from existing knowledge Local search started from current position ◦ Similar technologies that do not requrie a change in an organization’s recipes of organizing research As the firm moves away from its knowledge base, its probability of success converges to that for a start-up operation. 31

Selection for Knowledge Development The competition dynamics force organizations make constant selection regarding product development Forward looking development strategy is critical for long-term thriving However, short-term survival pressure may force a firm to focus on less-valuable options Balance between long-term and shortterm goal is a complex quation 32

Make-Buy Decision The decision of whether build a component in-house of buy it on the market is determined by: ◦ The production knowledge is similar to their current organizing principles and information (make) ◦ The supplier has superior knowledge (buy) ◦ The development may lead to new markets (make) ◦ Immediate survival pressure (buy) 33

Cititaion Summary ACADEMY OF MANAGEMENT JOURNAL OF INTERNATIONAL BUSINESS STUDIES JOURNAL OF MANAGEMENT STUDIES ORGANIZATION SCIENCE STRATEGIC MANAGEMENT JOURNAL 0 120 10 20 30 40 50 60 70 80 90 Citation Record Count 100 80 60 40 20 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 34

Discussion What is the role of education system in transferring knowledge and replicating technology? 35

THANKS YOU FOR YOUR TIME AND ATTENTION QUSTIONS? 36