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E-Journals KM Articles
October 21, 2004MIS 580
Michael Fry & Yih-Jong FuDepartment of Management Information System
The University of Arizona
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A Model of Knowledge Management And The N-Form Corporation
By Gunnar Hedlund 1994
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Article outline
Introduction Knowledge Model Comparative approaches of Japanese
and Western companies N-From vs. M-Form
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Introduction
Currently there are no models/ thoeries that can correctly capture the relationship between organization and knowledge management
Goal: Capture the transfer and transformation of knowledge in an organization on a model
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Knowledge Model
Individual Group Organization Inter-Organizational
Articulated Knowledge
Express mathematical functions
Group evaluation form
Organization chart
Suppliers’ documented practices
Tacit Knowledge
Negotiation skills
Team coordination
Corporate culture
Clients’ expectation and satisfaction
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Knowledge Model
The model distinguishes 3 aspects of knowledge Cognitive knowledge Skills Knowledge embodied in products or services
These 3 aspect corresponds to 3 modes of corporate expansion Licensing – selling cognitive knowledge Capacity-increasing investment – transfer of skills Increased sales – embodied product
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Knowledge Model
The current model is static To make the model more dynamic, it
needs to show the processes of transfer and transformation of knowledge.
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Knowledge Model – Knowledge transfer and transformation
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Knowledge Model – Knowledge transfer and transformation
Articulation Tacit turns explicit Example: employee training session
Internalization Articulated turns tacit Example: Internalize the training materials
Reflection = Articulation + Internalization The interaction between articulation and internalization Genuine Knowledge Creation Example: employees create a knowledge of the org.
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Knowledge Model – Knowledge transfer and transformation
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: addressing to another organization
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Knowledge Model – Knowledge transfer and transformation
Assimilation The input of knowledge Example: Create a patent database
Dissemination The output of knowledge Example: Selling of patents
Expansion = Assimilation + Dissemination The interaction between assimilation and dissemination Market organizational capabilities Example: Creation and selling of patents database
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Japanese and Western companies
Japanese Western Tacit transfer of knowledge Group and Inter-organizational levels
Both tacit and articulated Individual and organization levels
Small improvement Rapid incremental development No explicit structure of knowledge = inconsistency Bureaucracy
Radical innovation Inflexible system of knowledge inhibits tacitness Bureaucracy
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Japanese and Western companies
Japanese Western Articulated assimilation (e.g. patents) of knowledge Dissemination of products instead of skills Organizational tacitness makes foreign implementation difficult. AK → TK → AK
Assimilation in both articulation and tacit Make explicit, structured implementation Reflect an organizational environment where articulation is the key focusAK + TK → AK → AK + TK
Weak in term of integration of large and complex system
Excel at managing large and complex system with articulation and systematic approach
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N-From vs. M-Form
The knowledge model and Japanese/ Western styles have to do with the different organizational behaviors
Now take a comparative approach to the different kinds of organizational behaviors in 2 types of company structure
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N-From vs. M-Form
N-Form M-Form
Technological interdependence
Integration of technology and combination of expertise
Divide complexity into independent units
People interdependence
Permanent people poolTemporary team of multifunctional, multinational and multidivisional
Changing people pool Clear structure of specialized roles
Critical organizational level
Focus on middle level will bring benefit to knowledge creating firm
Focus on top level of the firm
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N-From vs. M-Form
N-Form M-Form
Communication network
Lateral = horizontal coordination
Vertical
Top management role
Must know the business Build the infrastructure for interpersonal (culture) Promote and guard the investment in new knowledge
Monitor and resource allocator
Competitive scope
Shared focus enables combination of different pieces of knowledge
Diversifying rejects internalization of processes into tacit knowledge
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N-From vs. M-Form
N-Form M-Form
Basic organizational form
Heterarchy Network like
Hierarchy All relevant knowledge is brought to a central decision point
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Discussion
How can tacit transfer of knowledge be possible?
Blaming bureaucracy, a real problem or an excuses?
Lessons learned from the Japanese approach to internalization?
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Organizational Learning: The Contributing Processes and the Literatures
By George P. Huber 2001
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Article outline
Introduction Knowledge Acquisition Information Distribution Information Interpretation Organizational Memory
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Article outline
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Introduction
Organizational learning – intentional process directed at improving effectiveness
This view is narrow Does not have to be conscious or intentional Not always increase the effectiveness of learner May not results in behavioral changes
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Knowledge Acquisition
Common ways to obtain organizational knowledge Surveys, research, competitive analysis,
reading newspaper and communicating with other people
There are 5 different methods of acquisition: Congenital, Experiential, Vicarious, Grafting and Searching
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Knowledge Acquisition
Congenital Learning A.K.A. Inherited knowledge Firms carry knowledge at the time it was
created plus additional knowledge prior its creation
Congenital knowledge affect future learning – not yet support by any studies
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Knowledge Acquisition
Experimental learning – Organizational experiments Motivated by the feedback of cause and
effect relationships between organizational action and outcome
How? Successive Limited Comparison ~ similar to trial and error
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Knowledge Acquisition
Experimental learning – Organizational self-appraisal Focus on people interaction and
participation The goal is to improve the relationships
of people through interaction Some study suggest learning new frames
of reference
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Knowledge Acquisition
Experimental learning – Unintentional or unsystematic learning Opposite to other learning methods Random exploration that results in learning
Experimental learning – Experienced-based learning curve The increase in experience results in faster
learning
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Knowledge Acquisition
Vicarious learning Learning from second-hand experience E.g. corporate intelligence acquired
through consultants and net work professionals
Also by the way of imitation – mimic the competitor’s learned experience
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Knowledge Acquisition
Grafting Acquire knowledge through acquisition of
resources E.g. acquisition of another organization Study shows that grafting is a fast way to
acquire large amount of knowledge/ information
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Knowledge Acquisition
Searching and Noticing – Scanning Scan environment for clues as to what may
happen in the future Active scanning = high vigilance = react to
certain event in time Searching and Noticing – Performance
monitoring Measure performance against the expectation of
the management and stakeholders One problem – bureaucracy does not learn from
their mistake
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Knowledge Acquisition
Searching and Noticing – Focused search Has an objective Usually occurs when there is a problem
and solution is needed
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Information Distribution
Organizations often do not know what they know. While most organizations have systems
which routinely store “hard” information, they often only have weak systems for finding where a certain piece of information is known to the organization.
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Information Distribution
When information is widely distributed in an organization, retrieval efforts are more likely to succeed and individuals and units are more likely to be able to learn.
Therefore, information distribution leads to more broadly based organizational learning rather than new organizational learning.
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Information Interpretation
Definitions: “the process through which information is
given meaning” “the process of translating events and
developing shared understandings and conceptual schemes”
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Information Interpretation
Where does the most organizational learning come from? When all organizational units interpret the
information the same way?
- or - When the organizational units interpret
the information differently?
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Information Interpretation
Either way, more complete learning leads to a change in potential behaviors.
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Information Interpretation
Shared interpretation of new information in an organization is effected by five factors:
1. The uniformity of prior cognitive maps possessed by the organizational units.
2. The uniformity of the framing of the information as it is communicated.
3. The richness of the media used to convey the information.
4. The information load on the interpreting units.5. The amount of unlearning that might be
necessary before a new interpretation could be generated.
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Cognitive Maps and Framing
What are cognitive maps? A belief structure or mental representation.
A person’s prior cognitive maps will shape their interpretation of information.
The way an organization “frames” or labels information will affect the way units interpret the information. If information is not uniformly framed when
distributed to different units, uniform interpretations are less likely.
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Media Richness
Definition: “The communication medium’s capacity to
change mental representations within a specific time interval.”
What does this mean? How well and quickly can a medium be used for
learning. Research shows that managers who
consider media richness when choosing a communications medium are more effective.
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Information Overload
If the amount of information to be interpreted exceeds an organization’s processing capacity, the interpretation will be less effective.
Furthermore, overload that is not uniform across units leads to even greater differences of interpretation.
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Unlearning and Its Effects on Learning
What is unlearning? “A process through which learners discard
obsolete and misleading knowledge.” Unlearning opens the way for new learning
to take place. Organizational units who are not able to
move on from doing something in an outdated way are not being as effective as they could be.
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Organizational Memory
Organizational memory: The ways in which an organization stores
and retrieves its information.
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Storing and Retrieving Information
Organizations store a great deal of “hard” information routinely, but a lot of “soft” information has to be stored mentally by members in the organization.
If this non-routine information was stored deliberately, how could it be used to help make future decisions?
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Computer-Based Organizational Memory
Organizations are continually storing more and more information in computers.
As usability and capacity of computer system improves, the amount and types of information that can be stored increases.
Many organizations have created expert systems, but can these systems really substitute for human experts in areas such as influencing people or locating information through non-official, non-standard channels?
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Summary
1. Information acquisition depends in many instances on instances, which is directed by previous learning retained in memory.
2. Information distribution is affected by organizational decisions made using information contained in memory.
3. Information interpretation is greatly affected by cognitive maps or frames of references.
4. That which has been learned must be stored in memory and then brought forth from memory; both the demonstrability and usability of learning depend on the effectiveness of the organization’s memory.
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Discussion
What are the motivations for initiating organizational experiments?
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KNOWLEDGE OF THE FIRM, COMBINATIVE CAPABILITIES, AND THE REPLICATION OF TECHNOLOGY
By Bruce Kogut and Udo Zander, 1992
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Outline
Themes Information and Know-How The Inertness of Knowledge Transformation of Personal to Social Knowledge The Paradox of Replication Combinative Capabilities Selection Environment The Make Decision and Firm Capabilities Summary
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Themes
Organizations are social communities in which individual and social expertise is transformed into economically useful products and services.
Organizations are not merely mechanisms for transferring knowledge. By synthesizing and applying current and acquired knowledge, they create new knowledge/ learning.
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Information and Know-How
Two types of knowledge: information and know-how Information:
Knowledge which can be transmitted with loss of integrity once the rules for deciphering it are known.
Know-How: “Know-How is the accumulated practical skill or expertise
that allows one to do something smoothly and efficiently.”
Information implies knowing what something means. Know-how is a description of knowing how to do something.
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The Inertness of Knowledge
Why is knowledge not easily transmitted and replicated? Two dimensions that influence the transferability and
imitability of a firm’s knowledge: codifiability and complexity. Codifiability:
Not all kinds of knowledge are easily codifiable. I.e. Simply creating an instruction sheet for making a musical
instrument is unlikely to capture the skills of the craftsman. Complexity:
Knowledge varies in its complexity. I.e. Instructions for turning on a PC are simple, but the
instructions for creating a microprocessor would be extremely complex.
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Transformation of Personal to Social Knowledge
The teaching of know-how and information requires frequent interaction within small groups.
It is the sharing of common stock of knowledge, both technical and organizational, that facilitates the transfer of knowledge within groups.
Personal knowledge can be transmitted because a set of values are learned, permitting a shared language by which to communicate.
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The Paradox of Replication
For a firm to grow, it must develop organizing principles and a shared code by which to orchestrate large numbers of people, and potentially, varied functions.
Since personal and small group knowledge is expensive to re-create, firms desire to codify and simplify this knowledge to make it accessible to the wider organization.
While this type of codification reduces the cost of transferring knowledge, it runs the risk of encouraging imitation.
Being taught the functional skills of how to do something is different than being taught how to create it.
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Combinative Capabilities
New learning, such as innovations, are products of a firm’s combinative capabilities to generate new applications from existing knowledge.
What are combinative capabilities? The intersection of the capability of the firm to exploit its
knowledge and the unexplored potential of the technology or the degree of “technical opportunity.”
Firms learn in areas closely related their current practice.
As the firm moves away from its knowledge base, its probability of success converges to that of a start-up operation.
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Selection Environment
The ability of a firm to indulge in a forward-looking development of knowledge is strongly contingent on selection environment.
Long-term survival depends on a critical tradeoff between current profitability and investing in future capabilities. Future capabilities are of little value if the firm does not survive.
If the competitive environment is too rigid, especially in the early years of a firm’s development, it may impede subsequent performance by retarding a firm’s ability to invest in new learning.
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The Make Decision and Firm Capabilities
The decision to make or buy is dependant on three elements: How good a firm is currently at doing
something. How good a firm is at learning specific
capabilities. The value of these capabilities as
platforms into new markets.
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Summary
Firms are a repository of capabilities, as determined by the social knowledge embedded in individuals structured by organizing principles.
Switching to new capabilities is difficult because it forces individuals to go outside their organization’s common area of knowledge, thereby making the transfer of knowledge more difficult.
Firms create new knowledge by the concept of combinative capabilities, that is, combining their current knowledge with the potential capabilities of that knowledge.
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