Researchers have used the absorptive capacity construct to explain various organizational phenomena. In this article we review the literature to identify key dimensions of absorptive capacity and offer a reconceptualization of this construct. Building upon the dynamic capabilities view of the firm, we distinguish between a firm's potential and realized capacity. We then advance a model outlining the conditions when the firm's potential and realized capacities can differentially influence the creation and sustenance of its competitive advantage.

https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=5629&context=lkcsb_research

Absorptive Capacity: A Review, Reconceptualization, and Extension

How has Japan become a major economic power, a world leader in the automotive and electronics industries? What is the secret of their success? The consensus has been that, though the Japanese are not particularly innovative, they are exceptionally skilful at imitation, at improving products that already exist. But now two leading Japanese business experts, Ikujiro Nonaka and Hiro Takeuchi, turn this conventional wisdom on its head: Japanese firms are successful, they contend, precisely because they are innovative, because they create new knowledge and use it to produce successful products and technologies. Examining case studies drawn from such firms as Honda, Canon, Matsushita, NEC, 3M, GE, and the U.S. Marines, this book reveals how Japanese companies translate tacit to explicit knowledge and use it to produce new processes, products, and services.

The knowledge-creating company : how Japanese companies create the dynamics of innovation

The Social Psychology of Organizations.

The paper is concerned with spatial clustering of economic activity and its relation to the spatiality of knowledge creation in interactive learning processes. It questions the view that tacit knowledge transfer is confined to local milieus whereas codified knowledge may roam the globe almost frictionlessly. The paper highlights the conditions under which both tacit and codified knowledge can be exchanged locally and globally. A distinction is made between, on the one hand, the learning processes taking place among actors embedded in a community by just being there dubbed buzz and, on the other, the knowledge attained by investing in building channels of communication called pipelines to selected providers located outside the local milieu. It is argued that the co-existence of high levels of buzz and many pipelines may provide firms located in outward-looking and lively clusters with a string of particular advantages not available to outsiders. Finally, some policy implications, stemming from this argumen...

/pdf/clusters-and-knowledge-local-buzz-global-pipelines-and-the-29bsuyvekg.pdf

Clusters and knowledge: local buzz, global pipelines and the process of knowledge creation

How have Japanese companies become world leaders in the automotive and electronics industries, among others? What is the secret of their success? Two leading Japanese business experts, Ikujiro Nonaka and Hirotaka Takeuchi, are the first to tie the success of Japanese companies to their ability to create new knowledge and use it to produce successful products and technologies. In The Knowledge-Creating Company, Nonaka and Takeuchi provide an inside look at how Japanese companies go about creating this new knowledge organizationally. The authors point out that there are two types of knowledge: explicit knowledge, contained in manuals and procedures, and tacit knowledge, learned only by experience, and communicated only indirectly, through metaphor and analogy. U.S. managers focus on explicit knowledge. The Japanese, on the other hand, focus on tacit knowledge. And this, the authors argue, is the key to their success--the Japanese have learned how to transform tacit into explicit knowledge. To explain how this is done--and illuminate Japanese business practices as they do so--the authors range from Greek philosophy to Zen Buddhism, from classical economists to modern management gurus, illustrating the theory of organizational knowledge creation with case studies drawn from such firms as Honda, Canon, Matsushita, NEC, Nissan, 3M, GE, and even the U.S. Marines. For instance, using Matsushita's development of the Home Bakery (the world's first fully automated bread-baking machine for home use), they show how tacit knowledge can be converted to explicit knowledge: when the designers couldn't perfect the dough kneading mechanism, a software programmer apprenticed herself withthe master baker at Osaka International Hotel, gained a tacit understanding of kneading, and then conveyed this information to the engineers. In addition, the authors show that, to create knowledge, the best management style is neither top-down nor bottom-up, but rather what they call "middle-up-down," in which the middle managers form a bridge between the ideals of top management and the chaotic realities of the frontline. As we make the turn into the 21st century, a new society is emerging. Peter Drucker calls it the "knowledge society," one that is drastically different from the "industrial society," and one in which acquiring and applying knowledge will become key competitive factors. Nonaka and Takeuchi go a step further, arguing that creating knowledge will become the key to sustaining a competitive advantage in the future. Because the competitive environment and customer preferences changes constantly, knowledge perishes quickly. With The Knowledge-Creating Company, managers have at their fingertips years of insight from Japanese firms that reveal how to create knowledge continuously, and how to exploit it to make successful new products, services, and systems.

The knowledge-creating company

The mainstream literature on contracts, rules and procedures presumes that formalization is directed at coordination and control, and that its influence on performance is contingent upon firm, transaction and contextual characteristics. In response to recent calls for inquiries into dialectics in interorganizational relationships, and in an effort to provide managerial choice with a more prominent position in research on formalization, a complementary perspective is here being developed. We propose a framework in which formalization is presented as a duality, involving trade-offs between its functions and dysfunctions, and eventuating in dialectic tensions with which managers have to cope. In line with this, we argue that researchers should not only be preoccupied with assessing the `rightness' of governance solutions, but also with the trade-offs and tensions associated with them. Our framework is illustrated by a case study of an alliance between a major European financial services firm and one of the w...

Towards a Dialectic Perspective on Formalization in Interorganizational Relationships: How Alliance Managers Capitalize on the Duality Inherent in Contracts, Rules and Procedures

Mastering Strategic Renewal

Despite the mounting evidence that innovation in management can fuel competitive advantage, we still know relatively little about how firms introduce new ways of managing. The goal of this introductory essay—and the Themed Section it introduces—is to advance this knowledge. To this end, we first synthesize the main developments in the field of management innovation and show that the field has branched into four main theoretical perspectives (rational, institutional, international business, and theory development perspectives). We then address the fragmentation issue that emerges from our review by proposing a co-evolutionary framework of management innovation that takes into account the dynamic and multilevel nature of the concept; we thus integrate the generation, diffusion, adoption, and adaptation phases of the management innovation process at the organizational, inter-organizational and macro level. Our integrative framework also addresses the role of human agency (managerial intentionality of internal and external change agents) and makes a distinction between three types of management innovations (new to the world, new to the organization and adapted to its context, and new to the organization without adaptation). Furthermore, we discuss the contributions of the studies included in the Themed Section and identify several avenues for future research that we consider priorities for driving the further development of the field.

/pdf/advancing-management-innovation-synthesizing-processes-2690tidwh3.pdf

Frans van den Bosch

Papers

Towards a Dialectic Perspective on Formalization in Interorganizational Relationships: How Alliance Managers Capitalize on the Duality Inherent in Contracts, Rules and Procedures

Mastering Strategic Renewal

Advancing Management Innovation: Synthesizing Processes, Levels of Analysis, and Change Agents

Interorganizational collaboration and firm innovativeness: Unpacking the role of the organizational environment

Entrepreneurial orientation and firm performance : drawing attention to the senior team