Discussed by Manny Martinez Yi-Hsuan Lee

1. •A model of knowledge management and N-form corporation•Organization learning: The contributing processes and the literatures•Knowledge of the firm, combinative capabilities, and the replication of technology Discussed by Manny Martinez Yi-Hsuan Lee

2. Agenda • Organization structures vs. knowledge management • Organization Structures • The gap between the firms in Japan and U.S. • Organizational Learning • Growth of knowledge of the firm • The problem needed to be overcome • The suggestion

3. Organization Structures Vs. Knowledge Management • Knowledge is embedded in structured individual relationships. • The knowledge of the firm can be understood as resting in the organizing of human resources. • The “share” concept in information distribution is important. • Units that have information and units that need this information can find each other quickly. • Knowledge management is affected strongly by organization structure.

4. Organization Structures • U-form • Unitary form / Functional form • Decomposed into specialized/functional units which are similar tasks (such as production and sales)

5. Organization Structures • M-Form • Multi-divisional Form • By Alfred Sloan, CEO of GM, 1924 • Decomposed into divisional/business units

6. Organization Structures • M-form and U-form are the two ends of the line on which every firm’s organization structure lies. • N-form U-form M-form Toyota Microsoft Sony IBM

7. The Gap between The Firms in Japan and U.S. • Japanese firms historically were smaller and less diversified. More recently, a new trend has developed. This represents a shift from the “U” to the “M” form. • Sony: become similar to western firms–increased size, more diversified. • U.S. firm are moving in the opposite direction, realizing the power of team interactions and the benefit of centralization. • The gap between eastern and western firms is getting smaller because of globalization. • The diversification is increasing in both countries.

8. Organizational Learning • Sony + Ericsson (Strategic Alliance) • Information Acquisition • The Alliance helps them to learn from each other. • Different organization structures lead them to different way in learning. • “Share”, or interaction, is still the key point.

9. Growth of Knowledge of the Firm • Through combinative capabilities, Sony and Ericsson internalize the information to form their growth of knowledge after external learning, and finally develop the market opportunities. Internal learning Market Oppor-tunities Information knowhow Combinative Capability Organizing and Technological Opportunities SonyEricsson Alliance External learning

10. The Problem Needed to Be Overcome • According to Huber, researchers of organizational learning do not share information . • Similarly, the divisions of the organization, such as IBM, do not maximize “cross-fertilization”. • SonyEricsson Alliance also needs more shared knowledge. • Question – How can we promote meaningful interactions between divisions?

11. N-form Might Be The Solution • N-form can help solve this interaction problem through institutionalized team work and inclusion of lower level employees. • But the form still has some weakness • Large complex projects, lack of cohesive vision. • What we recommend for firms such as IBM ? ？

12. The Suggestion • Organizations must understand the needs of their consumers. For IBM, creating task forces across product lines (pc’s, servers) can create holistic solutions for the customer. This is the “N” structure. • However, the ability of a hierarchical organization to deal with complexity and allocate resources effectively is important. This is the “M” structure. • As a result, managers must strive to balance response flexibility to retaining the ability to manage complex situations.