MIS 580 Knowledge Management
KM Most-Cited 4 to 6
Harsha Gunnam | Hetal Mehta | Nargis Memon | Manish Wadhwa
Articles Covered
A model of knowledge management and n-form
corporation, Strategic Management Journal
Organizational learning: the contributing process and the
literatures, Organization Science
Knowledge of the firm, combinative capabilities, and the
replication of technology, Organization Science
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MIS 580: Knowledge Management
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A MODEL OF KNOWLEDGE MANAGEMENT
AND N-FORM CORPORATION
Gunnar Hedlund
Strategic Management Journal 1994
Outline
Introduction
Knowledge Model
Japanese vs. Western companies
Organization Structure vs. Knowledge Management
N-Form vs. M-Form
Where the N-form fails?
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MIS 580: Knowledge Management
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Introduction
Two trends in analysis of corporate strategy of firms
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Internal organizations and management of firms
Dynamics (change & innovation) of firms
These dynamics does not capture relationship between
organization and knowledge management
Solution: A model of Knowledge Management which
captures knowledge types and transfer and
transformation in an organization
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MIS 580: Knowledge Management
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Knowledge Model
Types of Knowledge
Individual
Group
Organization
Articulated
Knowledge
Quality circle’s
documented
Knowing calculus
Organization chart
analysis of its
performance
Tacit
Knowledge
Team
coordination
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Negotiation skills
InterOrganizational
Suppliers’
documented
practices
Clients’ attitude
Corporate culture to products &
expectations
MIS 580: Knowledge Management
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Knowledge Model
Transfer and Transformation
ASSIMILATION
Individual
Group
Extension
Dialogue
Expansion
Articulation
Reflection
Tacit
Knowledge
(TK)
Organization
Appropriation
Internalization
Articulated
Knowledge
(AK)
Interorganizational
domain
DISSEMINATION
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MIS 580: Knowledge Management
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Knowledge Model
Knowledge transfer and transformation (cont)
Articulation
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Tacit made explicit
Example: Senior engineers write down their design rationale
Internalization
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Articulated becomes tacit
Example: Internalize the training materials
Reflection = Articulation + Internalization
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The interaction between articulation and internalization
Necessary for genuine knowledge creation
Example: Writing a science paper
MIS 580: Knowledge Management
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Knowledge Model
Knowledge transfer and transformation (cont)
Extension
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Transfer of knowledge from lower to higher agency levels
Example: An employee sends product design for approval
Appropriation
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Transfer of knowledge from higher to lower agency levels
Example: Group members coaches a new member
Dialogue = Extension + Appropriation
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The interaction between extension and appropriation
Example: Dialogue between teacher and student
MIS 580: Knowledge Management
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Knowledge Model
Knowledge transfer and transformation (cont)
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Assimilation
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Dissemination
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The input of knowledge
Example: Selective recruiting of key individuals
The output of knowledge
Example: Selling of patents
Expansion=Assimilation + Dissemination
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The interaction between assimilation and dissemination
Example: Creation and selling of patents database
MIS 580: Knowledge Management
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Japanese vs. Western companies
Japanese Companies
Western Companies
AK  TK  AK
AK + TK  AK  AK + TK
Input: patent or products
Input: recruitment at senior level
patent, product, selective
Process: employee commitment and
participation
Process: replaceable parts and people,
division of labor
Output: patent or products
Output: product, consulting
E.G. IBM
E.G. Toyota
Weakness in integration of large systems
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Excel at managing large and complex
system with articulation and systematic
approach
MIS 580: Knowledge Management
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Organization Structure Vs. Knowledge
Management
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Knowledge model applied on Japanese and Western
companies show organizational characteristics like
employment policies
Knowledge is embedded in structured individual
relationships and so knowledge of the firm can be
understood from the organization of human resources Organization Structure
Effective knowledge management requires a departure from
the logic of hierarchical (U-form) organization and multidivisional organization (M-form)
N-form
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Additional Research
Organization Structures
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U-form: Unitary form / Functional form
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Process focused, similar tasks grouped together
M-form: Multi-divisional Form
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Product focused, complimentary tasks grouped together
Reference: Coordination and Experimentation in M-Form and U-Form
Organizations(2005, December 26). Retrieved March 18, 2008 from Berkeley.edu at
http://elsa.berkeley.edu/~yqian/coordination%20and%20experimentation.pdf
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Additional Research
Organization Structures (cont)
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N-form: Networked form
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Information is shared and available throughout the firm
Leadership and decision-making changes depending on the situation for
optimal organization effectiveness
Skills are constantly evaluated and upgraded
Emphasis is on establishing trust, relationships, and networks
Information tentacles reach out to customers and into suppliers
E.G. Dell Inc.’s business model exists because of efficient & extremely
low cost communication across supply chain, in manufacturing, and in
customer service
Reference: The Rise of the Networked Organization (2004, Spring). Retrieved March 18, 2008
from Diamondconsultants at
http://exchange.diamondconsultants.com/pdf/Network_Org_White_Paper.pdf
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N-form vs. M-form
N-form
Technological
Interdependence
People
interdependence
Combination
M-form
Division
Temporary constellations, Permanent structures,
given pool of people
changing pool of people
Middle
Top
Lateral
Vertical
Top Management role
Catalyst, architect,
protector
Monitor, allocator
Competitive scope
Focus, economies of
depth, combinable parts
Critical organizational
level
Communication
network
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MIS 580: Knowledge Management
Diversification, economies
of scale and scope, semi
independent parts
7/12/2016
Where the N-form fails?
N-form Weaknesses
M-form Strengths
Radical innovation not achieved by
(re)combination and experimentation
Radical innovation through
specialization
Long time to acquire fundamental
new knowledge because of
restrictions on senior recruitment
and acquisitions
Rapid infusion and diffusion of
drastically new perspectives through
people, acquisitions, and spinoffs
Difficulty in coordinating very large
projects because of reliance on small
groups
Large systems design capability
through complex articulation and
tightly controlled complexity
Difficult to change overall vision
because of internal management
promotion
Change of basic direction and culture
through external recruitment of top
management
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MIS 580: Knowledge Management
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Summary
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Knowledge Model: Types of knowledge, transfer and
transformation process
Application of knowledge model on Japanese and
Western patterns of knowledge management
Relationship between organization structure and
knowledge management
Differences in N-form and M-form organization
Where is M-form superior over N-form
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MIS 580: Knowledge Management
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Discussion Questions
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Which approach is better in Knowledge Management?
Japanese or Western?
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ORGANIZATIONAL LEARNING: THE
CONTRIBUTING PROCESS AND THE
LITERATURES
George P. Huber
Organization Science 1991
Outline
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Introduction
Knowledge Acquisition
Information Distribution
Information Interpretation
Organizational Memory
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Introduction
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Organizational learning – intentional process directed at
improving effectiveness: Narrow View
Focus on broader view of organizational learning
Complete understanding of organizational learning
through four constructs:
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Knowledge Acquisition
Information Distribution
Information Interpretation
Organizational Memory
MIS 580: Knowledge Management
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Introduction
Constructs &
Processes
1.0. Knowledge
Acquisition
Sub-Constructs &
Sub-Processes
1.1. Congenital
Learning
1.2. Experiential
Learning
1.3. Vicarious
Learning
1.4. Grafting
1.5. Searching &
Noticing
2.0. Information
Distribution
Sub-Constructs &
Sub-Processes
1.2.1 Organizational
Experiments
1.2.2 Organizational
Self-appraisal
1.2.3 Experimenting
Organizations
1.2.4. Unintentional or
Unsystematic Learning
1.2.5. Experience-based
Learning Curve
1.5.1. Scanning
1.5.2. Focused Search
3.1. Cognitive Maps
and Framing
1.5.3. Performance
Monitoring
3.2. Media Richness
3.0. Information
Interpretation
3.3. Information
Overload
3.4. Unlearning
4.0. Organizational
Memory
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4.1. Storing and
Retrieving Information
4.2. Computer-Based
Organizational Memory
MIS 580: Knowledge Management
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Knowledge Acquisition
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It is the process by which knowledge is obtained
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Example: Customer surveys, Research and development
activities, Performance reviews, Analyses of competitor’s
products
The five processes that organizations use to acquire
information or knowledge are:
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Congenital Learning
Experimental Learning
Vicarious Learning
Grafting
Searching and Noticing
MIS 580: Knowledge Management
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Knowledge Acquisition
Congenital Learning
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Inherited Knowledge obtained since organization’s
conception
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Knowledge acquired by drawing from already existing
knowledge at organization’s birth.
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Congenital knowledge strongly affects future learning –
yet to be investigated
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Pro-active Learner: American Oil
http://findarticles.com/p/articles/mi_m4339/is_6_21/ai_71969770/pg_14
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MIS 580: Knowledge Management
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Knowledge Acquisition
Experimental Learning
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Organizational Experiments
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Enhanced by the feedback of cause and effect relationships
between the actions and outcomes of organizations
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Learning facilitated through two methods:
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Successive Limited Comparisons
Logical Incrementalism
MIS 580: Knowledge Management
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Knowledge Acquisition
Experimental Learning (cont)
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Organizational Self-Appraisal
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Focus on member interaction and participation
Aim to improve mental health and relationships of members
Experimenting Organizations
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Directed towards adaptability
Focus on operation in a mode of change
MIS 580: Knowledge Management
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Knowledge Acquisition
Experimental Learning (cont)
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Unintentional or Unsystematic Learning
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Contrasting method when compared to other learning
methods
Random exploration that results in learning
Experienced-based Learning Curve
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Experience enhances performance
Predictable and measurable results
MIS 580: Knowledge Management
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Knowledge Acquisition
Vicarious Learning
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Learning from “ Corporate Intelligence”
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Example: Acquiring corporate intelligence through channels like
consultants and networks of professionals
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Observation of other organizations – mimic the
competitor’s learned experience
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Also by Second-hand experience
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Vicarious Learner: Canada West Oil, Hospitals
http://findarticles.com/p/articles/mi_m4339/is_6_21/ai_71969770/pg_14
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MIS 580: Knowledge Management
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Knowledge Acquisition
Grafting
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Acquire knowledge through acquisition of resources not
possessed by the organization
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Example: acquisition of another organization
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Method faster than acquisition through experience and
complete than acquisition through imitation
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Grafting is the most frequently used method of acquiring
knowledge in today’s world
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Knowledge Acquisition
Searching & Noticing
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Knowledge acquired through noticing and searching
environment and performance of organization
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Scanning
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Wide range sensing of organization’s external environment
Scan for clues as to what may happen in the future
Active Scanning, Passive Scanning
Focused Search
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Search with respect to response for problems or opportunities
Has an objective
MIS 580: Knowledge Management
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Knowledge Acquisition
Searching & Noticing (cont)
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Performance Monitoring
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Includes both focused an wide-range sensing of organization’s
effectiveness
Measure performance against the expectation of the
management and stakeholders
Noticing is the unintended acquisition of information
relating to the organization’s:
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External environment
Internal environment
Performance
MIS 580: Knowledge Management
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Information Distribution
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Sharing of information between organizational units
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Leads to more broadly based organizational learning &
new organizational learning
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Precursor to aspects of organizational learning that
involve information interpretation
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Information Distribution
Propositions
Probability that member or unit A will route information to
member or unit B
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Positively related to A's view of the information's relevance to
B
Positively related to B's power and status
Negatively related to A's view of A's costs of routing the
information to B
Negatively related to A's workload
Positively related to the rewards and negatively related to the
penalties that A expects to result from the routing and
Positively related to the frequency with which A has
previously routed information to B in the recent past
Reference: Huber (1982) and Huber and Daft (1987)
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Information Distribution
Propositions
Probability or extent of information distortion by A when
communicating to B
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Positively related to A's view of the consequent increase in A's
goal attainment that will result from the distortion
Negatively related to the penalty that A expects to incur as a
result of introducing the distortion
Positively related to the amount of discretion allowed in the
presentation format
Positively related to the difference between the actual
information and the desired or expected information
Positively related to A's work overload and
Positively related to the number of sequential links in the
communication chain connecting A with B
Reference: Huber (1982) and Huber and Daft (1987)
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Need for Effective Information Distribution
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Access to Synergistic Information
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Identifying Key Sources
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High Availability
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Information Interpretation
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The process through which information is given meaning
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The process of translating events and developing shared
understandings and conceptual schemes
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More learning occurs with varied interpretations affecting
organization‘s potential behaviors
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Information Interpretation
Factors Affecting Interpretation
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The uniformity of prior cognitive maps possessed by the
organizational units
The uniformity of the framing of the information as it is
communicated
The richness of the media used to convey the information
The information load on the interpreting units and
The amount of unlearning that might be necessary before
a new interpretation could be generated.
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Information Interpretation
Cognitive Maps and Framing
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Belief structure or mental representation or frame of
reference will shape interpretation of information
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Framing & labeling affects information interpretation
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Non uniformly framed distribution implies non uniform
interpretations
Information Interpretation
Media Richness
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Extent to which information is given common meaning by
the sender and receiver of a message
“Medium's capacity to change mental representations
within a specific time interval“
Two underlying dimensions 
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The variety of cues that the medium can convey and
The rapidity of feedback that the medium can provide
Managers choosing rich communication medium are
more effective
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Information Interpretation
Information Overload
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Interpretation is less effective if the information to be
interpreted exceeds the units' processing capacity
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Overload detracts from effective interpretation
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Organization designs minimizing the need for information
distribution should be adopted by organizations in
excessively rich information environments
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This "design for informational autonomy“ would consequently
curtail some types of organizational learning
Information Interpretation
Unlearning
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A process through which learners discard obsolete and
misleading knowledge
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Effects:
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Temporarily inactive in the context where this knowledge had
been used
New learning to take place
Organizational Memory (OM)
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Concerns:
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Personnel turnover - great loss organization's memory
Non anticipation of future needs - great amount of data not
stored
No idea of whereabouts of information possessed or stored by
other members
Variables influencing effectiveness of OM :
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Membership attrition
Information distribution and organizational interpretation of
information
The norms and methods for storing information and
The methods for locating and retrieving stored information
Organizational Memory
Storing and Retrieving Information
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Great deal of routine information stored
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When to store non-routine information?
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Variables governing non-routine information storage:
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The degree to which the future needs are predictable
The scope of future needs that the member can envision
The commitment to the well-being of the organization and
The accessibility and utility of the channels and mechanisms
available for storage
Organizational Memory
Computer-Based Organizational Memory
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Information concerning the time is more frequently
resident in computers as transactions artifacts
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Automatic capturing and sophisticated retrieval of
information result in completeness and precision
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Computer-based expert systems provide accessibility,
reliability, and "own-ability,"
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Summary
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Little cumulative work and little integration
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Information distribution is affected by organizational
decisions
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Information interpretation is greatly affected by cognitive
maps or frames of reference
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Organizational memory is critical to organizational
learning
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Discussion Questions
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In the various methods of knowledge acquisition, which
approach would be most suitable for a certain
organization?
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How to handle conflicting interpretation?
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Shouldn't researchers build on others research?
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How do you retain the knowledge of new employees
before unlearning?
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KNOWLEDGE OF THE FIRM,
COMBINATIVE CAPABILITIES, AND THE
REPLICATION OF TECHNOLOGY
Bruce Kogut and Udo Zander
Organization Science, 1992
Outline
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Introduction
Information and Know-How
Inertness of Knowledge
Personal To Social Knowledge
Paradox of Replication
Combinative Capabilities
Selection Environment
Make Buy decision
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Introduction
Theory of firm knowledge
A major objective of a firm is to grow
To achieve the goal, a firm must
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Codify tacit knowledge and facilitate technology transfer
Paradox – Technology transfer and imitation are two
sides of a coin
How firms create new knowledge?
Make or Buy Decision
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MIS 580: Knowledge Management
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Information and Know-How
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Two types of knowledge: information and know-how
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Information:
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Know-How:
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Knowledge which can be transmitted with loss of integrity once
the rules for deciphering it are known.
Information implies knowing what something means.
“Know-How is the accumulated practical skill or expertise that
allows one to do something smoothly and efficiently.
Know-how is a description of knowing how to do something.
MIS 580: Knowledge Management
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The Inertness of Knowledge
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Why knowledge is not easily transmitted and replicated?
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2 dimensions : Codifiability and Complexity
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Codifiability and complexity are related
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MIS 580: Knowledge Management
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Transformation of Personal To Social
Knowledge
Individual
Group
Organization
Network
Information
-facts
-who knows
what
-profits
-prices
-accounting data
-whom to contact
-formal &
-who has what
Informal structure
Know-how
-skill of how to
communicate
-problem
solving
-recipes of
organizing such
as Taylorist
methods or craft
production
-higher order
organizing
principles of how
to coordinate
groups and
Transfer
knowledge
-how to cooperate
-how to sell and
buy
Use of common language and organizing principles for
knowledge transfer within small groups
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MIS 580: Knowledge Management
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The Paradox of Replication
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Goal of the firm to reduce cost while preserving the
quality and value of the technology
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Firm may codify and simplify such knowledge to be
accessible.
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While this type of codification reduces the cost of
transferring knowledge, it runs the risk of encouraging
imitation
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MIS 580: Knowledge Management
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Combinative Capabilities
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Distinction between exploiting
and developing capability.
Example: Japanese shop and
American operations
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Combinative Capability- the
degree of "technological
opportunity."
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MIS 580: Knowledge Management
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Selection Environment
The ability of a firm to indulge in a forward-looking
development of knowledge
Long-term survival depends on a critical tradeoff
between current profitability and investing in future
capabilities.
Future capabilities are of little value if the firm does not
survive.
If the competitive environment is too rigid, especially in
the early years of a firm’s development, it may impede
subsequent performance by retarding a firm’s ability to
invest in new learning.
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MIS 580: Knowledge Management
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The Make Buy decision and Firm
capabilities
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The decision to make or buy is determined by :
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The production knowledge is similar to their current
organizing principles and information (make)
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The supplier has superior knowledge (buy)
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The development may lead to new markets (make)
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Immediate survival pressure (buy)
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Sony Ericsson Alliance
http://www.ugma.unige.ch/Article_Archives/ArticleArchivesPrize2002-2.pdf
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MIS 580: Knowledge Management
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Summary
Firms are a repository of capabilities, as determined by
the social knowledge embedded in individuals structured
by organizing principles.
Switching to new capabilities is difficult because it forces
individuals to go outside their organization’s common
area of knowledge, thereby making the transfer of
knowledge more difficult.
Firms create new knowledge by the concept of
combinative capabilities, that is, combining their current
knowledge with the potential capabilities of that
knowledge.
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MIS 580: Knowledge Management
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Discussion Questions
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How can we resolve the major challenge of knowledge
sharing between two firms with different culture in case
of Sony Ericsson alliance ?Does ‘N- form’ help to resolve
this issue ?
Is Consulting a source of external learning? If yes then
what are the challenges faced in this case ?
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MIS 580: Knowledge Management
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Information Distribution
Propositions
Probability or extent of delay in the routing of information
by A to B
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Positively related to the workload of A
Positively related to the number of sequential links in the
communication chain connecting A to B and
Negatively related to A's view of the timeliness of the
information for B
Reference: Huber (1982) and Huber and Daft (1987)
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