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

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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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