International Management

1. International Management Phatak, Bhagat, and Kashlak

2. Chapter 11 Managing Technology and Knowledge

3. Technology … is composed of a systematically developed set of information, skills, and processes that are needed to create, develop, and innovate products and services

4. Types of Technologies • Product-embodied technology • Process-embodied technology • Person-embodied technology

5. Description of Technology Types • Product-embodied technologies are transferred by transferring the physical product itself • Process-embodied technology is concerned with blueprint or patent rights of the actual scientific processes and engineering details from the developer to another • Person-embodied technology is concerned with creating continuous dialogue between the supplier and the recipient organizations pertaining to the intrinsic nature, diffusion, and utilization of certain scientific forms that are hard to articulate in the form of either process or product

6. Factors Influencing Technology Transfer • Similar language • Common ancestry and shared history • Physical proximity • Technical competence of the workforce • The complexity of the technology at the time of transfer • The number of successful prior transfers

7. Factors Causing Difficulty in Technology Transfer • Differences in strategic thinking • Characteristics of the technology involved • Differences in organizational and corporate cultures • Differences in societal cultures

8. Ex. 11-1: Rate of Innovation and New Technology Creation

9. Ex. 11-2: A Conceptual Model for Understanding Cultural Constraints on Technology Transfer Antecedent Characteristics of Technology Involved Product-embodied Process-embodied Person-embodied Societal Culture-Based Differences in Terms of Uncertainty avoidance Power distance Individualism vs. collectivism Masculinity vs. femininity Abstractive vs. associative Effectiveness of Technology Transfer Across Nations Antecedent differences in organizational cultures between the transacting organizations Absorptive Capacity of the Recipient Organization Local vs. cosmopolitan orientation Existence of an already sophisticated technical core Strategic management process Presumed causal influences Presumed moderating influences

10. Knowledge “Fluid mix of experience, values, contextual information, and expert insight that provides a framework for evaluating and incorporating new experiences and information”

11. Features of Knowledge(summarized by Nonaka and Takeuchi) First, knowledge, unlike information, is about beliefs and commitment. Knowledge is a function of a particular stance, perspective, or intention. Second, knowledge, unlike information, is about action. It is always knowledge ‘to some end.’ And third, knowledge, like information, is about meaning. It is context-specific and relational.

12. Intellectual Capital … of a global corporation is the sum total of its stock of knowledge, which is described in procedures and manuals as well as systematically embedded in its unique culture and in the individuals of the organization

13. Processes for Transforming Information to Knowledge • Comparison • Consequences • Connections • Conversation

14. Tacit and Explicit Knowledge Tacit knowledge is knowledge that is highly personal, difficult to communicate, and highly specialized. It is hard to process and transfer because it is a part of the historical and cultural context in which the organization exists. Explicit knowledge is knowledge that can be written and transmitted. It is discrete or digital, stored in repositories such as libraries and databases.

15. Ex. 11-3: Spiral of Knowledge Creation

16. Ex. 11-4: The Knowledge Life Cycle

17. Effective Management of Knowledge • Strategic Considerations • Strategic intent for knowledge creation, emphasis on innovation, tangible and administrative support for innovation • Technical Systems • Research and development systems, the sophistication of management information systems, quality and competence of technical and administrative staff • Administrative Heritage • Historical emphasis on knowledge creation, the values and practices of founders and senior managers (leadership legacy and organizational culture), the nature of organizational communication and quality of professional interactions

18. Ex. 11-5: Knowledge Management Effectiveness as a Product of Strategic Consideration, Technical Systems, and Administrative Heritage

19. Ex. 11-6: Techniques for Enhancing the Creation and Use of Organizational Knowledge • Incorporate learning on an individual and team basis as an important part of corporate culture • Encourage systematic collection and recording of knowledge in blueprints and manuals • Evaluate the contribution of existing knowledge to the value chain • Appoint “knowledge brokers” to foster and disseminate knowledge in various subsidiaries • Nominate senior managers who can act as “boundary spanners” to sense and monitor the development of new knowledge from the external environment • Encourage the formation of multi-functional project groups and quality circles • Create networks of professionals who can share information within the organization as well as with relevant parties outside • Develop appropriate organizational structures and information systems • Encourage professional competence and team development • Provide rewards for creating and sharing knowledge

20. Ex. 11-6 (contd.) • Develop routines and rules for sharing knowledge continuously • Encourage experimentation with knowledge creation and accept occasional failures as part of the process • Provide valued resources, including uninterrupted time, for learning • Encourage job rotation leading to a breadth and depth of knowledge and experience • Provide opportunities for learning by doing • Follow examples of leading organizations in the global marketplace • Encourage learning as a primary objective during joint ventures and strategic alliances • Make effective use of consultants