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KM Most cited 4-6. October 20, 2005 MIS 480 Anh Ho Management Information System Undergrad. A Model of Knowledge Management and the N-form Corporation. By Gunnar Hedlund 1994. Outline. Introduction Model of Knowledge Japanese Diversification vs. Western companies From N-Form to M-Form.
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KM Most cited 4-6 October 20, 2005 MIS 480 Anh Ho Management Information System Undergrad
A Model of Knowledge Management and the N-form Corporation • By Gunnar Hedlund 1994
Outline • Introduction • Model of Knowledge • Japanese Diversification vs. Western companies • From N-Form to M-Form
Introduction • A model of knowledge management is developed. • The development of model between economics, organizational theory and strategic management • Transfer of knowledge from lower level to higher agency level in articulated or tacit form
The Model of Knowledge Articulated Knowledge (AK) Tacit Knowledge information (TK)
The Model of Knowledge • Small group often temporary in innovation and product development • Interorganizational domain of units interacting with the focal is critical to KM
The Model of Knowledge • Three aspects of knowledge • Cognitive knowledge • Skills • Knowledge embodied in products or services • Advantage of three forms: • Increased sales • Licensing • Capacity increasing Investment
The Model of Knowledge • Major concerns: • Storage • Transfer to transform
Knowledge Model ASSIMILATION Individual Interoranizational domain Group Organization Articulated Knowledge (AK) Appropriation Extension Internalization Reflection Articulation Dialogue Tacit Knowledge (TK) Expansion DISSEMINATION
Japanese Corporations • Articulated Assimilation (patent or tangible products) • Group and interorganizational levels • Dissemination of products • Important tacit element • AK TK AK • Bureaucratic corporation • Weakness: lack integration in large system
Western Coporations • Tacit and articulated • Explicit, structured implementation • Individual and organizational levels • Bureaucratic corporation • AK + TK AK AK + TK • Excel in managing large and complex system with articulation and systematic approach
Question today? • What happens in today’s leading companies in fast moving technological fields?
Organizational Learning: The Contributing processes and the literatures • George P. Huber 2001
Outline • Introduction • Knowledge Acquisition • Information Distribution • Information Interpretation • Organizational Memory • Summary
Introduction • Complete understanding of organizational learning • The important to challenge narrow concepts, phenomenon of organizational learning and the chances of encountering useful findings or ideas
Knowledge Acquisition • Acquire information or knowledge • Example are customers, survey, research, development activities, performance reviews, and analyses of competitor’s product
Knowledge Acquisition • 1. Congenital Learning • Inherited Knowledge • 2. Experimental Learning • Organizational Experiment • Organizational self-appraisal • Experimenting organizations • Unintentional or unsystematic learning • Experience-based learning curve
Knowledge Acquisition • 3. Vicarious Learning • Acquiring second-hand experience • Imitate other organizations • 4. Grafting • Acquiring knowledge through resources • Acquisition through another organization
Knowledge Acquisition • 5. Searching and Noticing • Scanning • Focused Search • Performance monitoring
Information Distribution • System routine Index • Hard Information
Information Interpretation • 1. Cognitive maps and Framing • 2. Media richness • 3. Information Overload • 4. Unlearning
Organization Memory • 1. Storing and Retrieving information • 2. Computer based Organizational Memory
Summary • Information acquisition depends in many instances on instances, which is directed by previous learning retained in memory. • Information distributionis affected by organizational decisions made using information contained in memory. • Information interpretation is greatly affected by cognitive maps or frames of references. • 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.
Knowledge of the firm, Combinative capabilities and the replication of technology • Bruce Kogut and Udo Zander 1992
Outline • Introduction • Information and Know How • The Inertness of knowledge • Transformational of Personal to Social Knowledge • The paradox of Replication • Combinative Capabilities • Selection Environment • The Make decision and Firm Capabilities • Conclusions
Introduction • The central competitive dimension of what firms know how to do is to create and transfer knowledge efficiently within an organization • Organizational knowledge into information and know how based a distinction that corresponds to used in artificial intelligent of declarative and procedural knowledge.
Information and Know-How • 2 categories: information and know-how • Information: knowledge which can be transmitted with loss of integrity once the rules for deciphering it are known • Know-how: the accumulated practice skill or expertise that allows one to do something smoothly an efficiently
The Inertness of Knowledge • Why knowledge is not easily transmitted and replicated? • 2 dimensions of codifiability and complexity • Examples
The paradox of Replication • Goal of the firm to reduce cost while preserving the quality and value of the technology • Firm may codify and simplify such knowledge to be accessible. • Why software has been successful that is codified as to demand a lower fixed cost on general user?
Combinative Capabilities • Distinction between exploiting and developing capability. Example: Japanese shop and American operations • Combinative Capability • As the firm moves away from its knowledge base, its probability of success converges to that of a start-up operation.
Selection Environment • The ability of a firm to indulge in a forward-looking development of knowledge • Short-term survival and long-term development of capabilities
The Make decision and Firm capabilities • The decision to make or buy is dependant on three elements: • How good a firm is currently at doingsomething. • How good a firm is at learning specific capabilities. • The value of these capabilities as platforms into new markets.
Summary • Firms should follows organizing principles as the primary unit of analysis of understanding the variation in performance and growth. • Switching new capability is difficult as neither the knowledge embedded in the current relationships and principle is well understood nor the new learning.