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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
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Knowledge Management Knowledge Management Most Cited 4-6Most Cited 4-6Hsin-Min LuMarch 21, 2007MIS 580
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A MODEL OF A MODEL OF KNOWLEDGE KNOWLEDGE MANAGEMENT AND N-MANAGEMENT AND N-FORM CORPORATIONFORM CORPORATION
Gunnar HedlundStrategic Management Journal, 1994
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IntroductionIntroductionTwo important issues for firms:
◦Internal organization and management of firms
◦Dynamics of firmsExisting theories have limited
analytic ability:◦Transaction cost◦Evolution theories
Solution:◦A model of knowledge management
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Types of KnowledgeTypes of Knowledge
Articulated Knowledge (AK)
Tacit Knowledge (TK)
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Knowledge transfer and Knowledge transfer and transformationtransformation
ASSIMILATION
Individual Group OrganizationInteroranizational domain
Appropriation Extension
Articulatio
n
Internalization
Reflection
Dialogue
Expansion
DISSEMINATION
Articulated Knowledge (AK)
Tacit Knowledge (TK)
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Knowledge transfer and transformation Knowledge transfer and transformation (cont)(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
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Knowledge transfer and transformation Knowledge transfer and transformation (cont)(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 memberDialogue = Extension + Appropriation
◦ The interaction between extension and appropriation◦ Different dialogue for different agency levels◦ Example: Two members from different groups share
their project experiences
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Knowledge transfer and transformation Knowledge transfer and transformation (cont)(cont)Assimilation
◦ The input of knowledge◦ Example: Hiring key individuals from outside
Dissemination◦ The output of knowledge◦ Example: Selling of patents
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Japanese CorporationsJapanese CorporationsInput: Articulated Assimilation
(patent or tangible products)Tacit knowledge grows inside Exports in product formAK TK AK
Weakness: large system design◦Rely on tacit knowledge for internal
coordiation is less effective for complex tasks
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Western CoporationsWestern CoporationsInput: Tacit and articulatedProcess: Explicit, structured
implementationOutput: Tacit and artulatedAK + TK AK AK + TK
Robust and expandable organzation structure◦Personel turnover◦Excel in managing large and complex system
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N-form vs. M-formN-form vs. M-form
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Citation SummaryCitation Summary
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DiscussionDiscussionN-form is associated with
permanent personel pool. Is it necessary?
M-form for radical innovation and N-form for incremental innovation?
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ORGANIZATIONAL ORGANIZATIONAL LEARNING: THE LEARNING: THE CONTRIBUTING CONTRIBUTING PROCESS AND THE PROCESS AND THE LITERATURESLITERATURES
George P. HuberOrganization Science, 1991
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IntroductionIntroductionAn 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 changesBasic assumption: An organization
learns if any of its units acquire knowledge that is recognizes as potentially useful to the organzation
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Four Learning ConstructsFour Learning ConstructsKnowledge Acquisition
◦Obtain knowledgeInformation Distrubution
◦Sharing and creating new knowledgeInformation Interpretation
◦Derive common understanding Organization Memory
◦Stored for future use
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Knowledge AcquisitionKnowledge AcquisitionAcquire information or knowledge
For example: ◦Customer survey◦Research and development activities◦Performance reviews◦Analyses of competitor’s product
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Five Types of Knowledge Five Types of Knowledge AcquisitionAcquisition1. Congenital Learning
◦Inherited Knowledge2. Experimental Learning
◦Organizational Experiment◦Organizational self-appraisal◦Experimenting organizations◦Unintentional or unsystematic
learning◦Experience-based learning curves
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Five Types of Knowledge Five Types of Knowledge Acquisition Acquisition (cont)(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
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Five Types of Knowledge Five Types of Knowledge Acquisition Acquisition (cont)(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
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Information DistributionInformation DistributionInformation 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
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Information InterpretationInformation InterpretationThe 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
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Organization MemoryOrganization MemoryMain 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
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Citation SummaryCitation Summary
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DiscussionDiscussionIs imitation a good way of
learning?
What is the role of Information Technology in organization learning?
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KNOWLEDGE OF THE KNOWLEDGE OF THE FIRM, COMBINATIVE FIRM, COMBINATIVE CAPABILITIES, AND THE CAPABILITIES, AND THE REPLICATION OF REPLICATION OF TECHNOLOGYTECHNOLOGY
Bruce Kogut and Udo ZanderOrganization Science, 1992
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IntroductionIntroductionA major objective of a firm is to
growTo 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?
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Two Kinds of KnowledgeTwo Kinds of KnowledgeInformation
◦What something means◦Can be transmitted without loss of
integrity◦Attribures of an object in
programming languageKnow-how
◦How to do something◦Like a recipe◦Methods of an object in programming
language28
What Prevents Knowledge What Prevents Knowledge Transfer and Replication?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
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Create a Technology vs. Use Create a Technology vs. Use a Technologya 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 high30
Combinative CapabilitiesCombinative CapabilitiesGenerate new applications from
existing knowledgeLocal 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.
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Selection for Knowledge Selection for Knowledge DevelopmentDevelopmentThe 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 short-term goal is a complex quation
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Make-Buy DecisionMake-Buy DecisionThe 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 SummaryCititaion Summary
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DiscussionDiscussionWhat is the role of education
system in transferring knowledge and replicating technology?
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THANKS YOU FOR YOUR THANKS YOU FOR YOUR TIME AND ATTENTIONTIME AND ATTENTION
QUSTIONS?QUSTIONS?
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