Session Summary

Session Number:714
Session ID:S271
Session Title:The Dynamics of Knowledge Within Organizations (Knowledge)
Short Title:Knowledge Dynamics (K)
Session Type:Division Paper
Hotel:Hyatt East
Floor:LL2
Room:Columbus I/J
Time:Monday, August 09, 1999 12:20 PM - 2:10 PM

Sponsors

OMT  (Joseph Porac)j-porac@staff.uiuc.edu (217) 244-7969 

General People

Discussant Kogut, Bruce  U. of Pennsylvania kogut@wharton.upenn.edu (215) 898-1093 
Chair Meszaros, Jacqueline  U. of Washington, Bothell meszaros@u.washington.edu 425-352-5282 

Submissions

Knowledge Dynamics: Reconciling Competing Hypotheses of Knowledge Flow 
 Knott, Anne Marie  U. of Pennsylvania knott@wharton.upenn.edu (215)573-9628 
 McKelvey, Bill  U. of California, Los Angeles mckelvey@anderson.ucla.edu 310-825-7796 
  A striking schism between economics and sociology is found in opposing null hypotheses regarding the flow of knowledge. In general, economists hold that knowledge flows freely, and that the challenge is to impede that flow. In contrast, sociologists hold that knowledge is inert, and that the challenge is to facilitate knowledge flow. The problem with opposing null hypotheses is that they may lead to competing prescriptions that cancel each other such that there is no innovation or growth. We examine the origins of these competing perspectives, as well as the empirical results sustaining them. We synthesize the empirical regularities of knowledge flow from both fields, in an effort to specify a model of knowledge dynamics. Our goal for the model is first, to reconcile the competing null hypotheses, and second, to develop a set of prescriptions that allow each field to achieve its respective objectives regarding knowledge flows. Through simulation we find that both fields are partially correct. More importantly, we find that the two fields' prescriptions for knowledge growth, rather than canceling each other, actually are mutually reinforcing.
 Keywords: knowledge
Exploring Inflows of Knowledge into Subunits of MNCs: A Relevance Theory Perspective 
 Schulz, Martin  U. of Washington martinus@u.washington.edu (206) 543-4777 
 This paper explores inflows of knowledge from peers and supervising units into subunits of multinational corporations (MNCs). The core assumption is that inflows of knowledge into organizational subunits depend on the relevance of the knowledge to the operations performed at the receiving subunit. The study explores three groups of factors which affect the relevance of external knowledge to subunits: Factors related to the local knowledge base of the subunit, factors related to the remote knowledge base (of other organizational units of the MNC), and factors related to the strategic context. Empirical tests of the effect of these factors on inflows support most of the predictions of relevance theory.
 Keywords: knowledge flows; absorptive capacity; multinational corporations
Competing for attention: The challenge of sharing knowledge in an information-rich organization 
 Hansen, Morten T. Harvard U. mhansen@hbs.edu (617)-495-5590 
 Haas, Martine R. Harvard U. mhaas@hbs.edu (617) 495-6495 
 Applying the concept of attention scarcity from organization decision theory to the topic of knowledge sharing in organizations, we develop a model of how knowledge-providing groups in an information-rich organization seek to gain attention for their codified knowledge. Our empirical context is a professional services firm in which 43 so-called practice groups publish their knowledge in electronic databases and seek to gain employees' attention so that they will use their databases. Regression results of database usage among employees in the firm show that a focal practice group gains attention for its database through processes of commitment, legitimization, and reputation building. Signing on affiliate and senior members, adhering to strict publishing criteria, and providing a regular flow of new documents results in higher database usage. However, the same factors that work for a focal group also work against it when adopted by groups that are similar: usage of a focal group's database decreases when similar groups engage in these activities. These results demonstrate that there is considerable competition for attention among the groups in our sample. Implications for theories of knowledge sharing in organizations are discussed.
 Keywords: Knowledge management; Knowledge sharing; Attention
Learning to build a car: An empirical investigation of organizational learning 
 Mischke, Gary A. U. of Manitoba mischke@ms.umanitoba.ca (204) 474-6464 
 Dyck, Bruno  U. of Manitoba bdyck@ms.umanitoba.ca (204) 474-8184 
 Starke, Frederick  U. of Manitoba starkefa@ms.umanitoba.ca (204) 474-8510 
 Mauws, Michael K. U. of Alberta michael.mauws@ualberta.ca (403) 492-2311 
 This study provides an empirical examination of basic elements of Nonaka's (1994) dynamic theory of organizational knowledge creation. The data provide strong support that knowledge creation in organizations proceeds through a four stage process: 1) socialization (tacit knowledge amplification); 2) externalization (tacit knowledge is transformed into explicit knowledge); 3) combination (explicit knowledge amplification); and 4) internalization (explicit knowledge is transformed into tacit knowledge). In addition to empirical support for the model, the findings extend previous research in two ways. First, we found that the overall level of knowledge creation is lowered during times of equilibrium (after an innovation has been implemented). Second, we observed a fifth phase in the learning cycle (labeled tacit error correction) which is characterized by a dual emphasis on externalization and internalization.
 Keywords: learning; knowledge creation; innovation