Knowledge Management as the Basis of Sustained High Performance

doi:10.1111/J.1467-6486.2007.00667.X

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Knowledge Management as the Basis of Sustained High Performance

Journal Article•DOI•

Knowledge Management as the Basis of Sustained High Performance

William C. Bogner¹, Pratima Bansal²•Institutions (2)

Georgia State University¹, University of Western Ontario²

01 Jan 2007-Journal of Management Studies (Blackwell Publishing Ltd)-Vol. 44, Iss: 1, pp 165-188

TL;DR: In this paper, the authors deconstruct the key elements of the resource-based view and the knowledgebased view of the firm and suggest that there are three components to knowledge management systems that influence firm performance: the firm's ability to produce new knowledge, its ability to build on that knowledge, and its effectiveness in capturing a high proportion of the subsequent spin-offs.

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Abstract: By deconstructing some of the key elements of the resource-based view and the knowledge-based view of the firm, we suggest that there are three components to knowledge management systems that influence firm performance: the firm's ability to produce new knowledge, its ability to build on that knowledge, and its effectiveness in capturing a high proportion of the subsequent spin-offs. Using regression analysis to analyse data from 30,022 patent records from 42 firms, we find that a firm's growth rate is positively associated with its ability to generate rare and valuable knowledge, and to build on that knowledge.

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Posted Content•

The Concept of Corporate Strategy

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Rivera Rodríguez¹, Hugo Alberto•Institutions (1)

Del Rosario University¹

01 Dec 2009-Social Science Research Network

TL;DR: The concept of corporate strategy was introduced in this paper by Kenneth R. Andrews and R. D. Homewood, III., 1980 Revised Ed. xi, 180 p., 24 cm.

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Abstract: The Concept of Corporate Strategy. Por Kenneth R. Andrews. Homewood, III.: R. D. Irwin, 1980 Revised Ed. xi, 180 p.; 24 cm. Incluye referencias e indice. ISBN 0-256-02371-9.

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1,019 citations

Journal Article•DOI•

A Capability‐Based Framework for Open Innovation: Complementing Absorptive Capacity

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Ulrich Lichtenthaler¹, Eckhard Lichtenthaler²•Institutions (2)

WHU - Otto Beisheim School of Management¹, ETH Zurich²

01 Dec 2009-Journal of Management Studies

TL;DR: In this article, the authors merge knowledge management, absorptive capacity, and dynamic capabilities to arrive at an integrative perspective, which considers knowledge exploration, retention, and exploitation inside and outside a firm's boundaries.

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Abstract: We merge research into knowledge management, absorptive capacity, and dynamic capabilities to arrive at an integrative perspective, which considers knowledge exploration, retention, and exploitation inside and outside a firm's boundaries. By complementing the concept of absorptive capacity, we advance towards a capability-based framework for open innovation processes. We identify the following six ‘knowledge capacities’ as a firm's critical capabilities of managing internal and external knowledge in open innovation processes: inventive, absorptive, transformative, connective, innovative, and desorptive capacity. ‘Knowledge management capacity’ is a dynamic capability, which reconfigures and realigns the knowledge capacities. It refers to a firm's ability to successfully manage its knowledge base over time. The concept may be regarded as a framework for open innovation, as a complement to absorptive capacity, and as a move towards understanding dynamic capabilities for managing knowledge. On this basis, it contributes to explaining interfirm heterogeneity in knowledge and alliance strategies, organizational boundaries, and innovation performance.

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931 citations

Cites background from "Knowledge Management as the Basis o..."

...…management processes, many authors have distinguished knowledge exploration or creation on the one hand and knowledge exploitation or application on the other, sometimes explicitly mentioning the need for retaining knowledge over time (Argote et al., 2003; Bogner and Bansal, 2007; Nonaka, 1994)....
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...With regard to a firm’s critical knowledge management processes, many authors have distinguished knowledge exploration or creation on the one hand and knowledge exploitation or application on the other, sometimes explicitly mentioning the need for retaining knowledge over time (Argote et al., 2003; Bogner and Bansal, 2007; Nonaka, 1994)....
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...As such, this article provides a basis for empirical studies, whose relatively limited number has been highlighted as a deficit of knowledge management research (Argote et al., 2003; Bogner and Bansal, 2007)....
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Journal Article•DOI•

A Longitudinal Study of the Impact of R&D, Patents, and Product Innovation on Firm Performance

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Kendall W. Artz¹, Patricia M. Norman¹, Donald E. Hatfield², Laura B. Cardinal³•Institutions (3)

Baylor University¹, Virginia Tech², University of Houston³

01 Sep 2010-Journal of Product Innovation Management

TL;DR: In this article, the authors investigated the relationship between a firm's commitment to research and development and its innovative outcomes and found that R&D spending was positively related to patents and new product announcements.

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620 citations

Reference Book•DOI•

Handbook of organizational learning and knowledge management

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Mark Easterby-Smith, Marjorie A. Lyles

01 Jan 2006

TL;DR: The full revised and updated version of this successful Handbook is welcomed by management scholars world-wide as discussed by the authors, which provides a unique and valuable overview of current thinking about how organizations accumulate knowledge and learn from experience.

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Abstract: The fully revised and updated version of this successful Handbook is welcomed by management scholars world-wide. By bringing together the latest approaches from the leading experts in organizational learning & knowledge management the volume provides a unique and valuable overview of current thinking about how organizations accumulate 'knowledge' and learn from experience. Key areas of update in the new edition are: - Resource based view of the firm - Capability management - Global management - Organizational culture - Mergers & acquisitions - Strategic management - Leadership

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373 citations

Journal Article•DOI•

Knowledge sharing, intellectual capital and firm performance

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Zhining Wang¹, Nianxin Wang², Huigang Liang³•Institutions (3)

China University of Mining and Technology¹, Jiangsu University², East Carolina University³

30 May 2014-Management Decision

TL;DR: In this paper, the authors investigated the impact of knowledge sharing on firm performance and the mediating role of intellectual capital (IC) and found that tacit knowledge sharing significantly contributes to all three components of IC, namely human, structural and relational capital, while explicit KS only has a significant influence on human and structural capital.

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Abstract: Purpose – The aim of this paper is to investigate the impact of knowledge sharing (KS) on firm performance and the mediating role of intellectual capital (IC). Design/methodology/approach – A research model was developed based on prior KS and IC studies. A survey was administered to a sample of high technology firms in China and 228 usable responses were collected. Structural equation modeling (SEM) was employed to test the research model. Findings – Tacit KS significantly was found to contribute to all three components of IC, namely human, structural and relational capital, while explicit KS only has a significant influence on human and structural capital. Human, structural and relational capital, enhance both operational and financial performance of firms. The effect of KS on firm performance is mediated by IC. Explicit KS has a greater effect on financial performance than operational performance, whereas tacit KS has a greater impact on operational performance than financial performance. Research limit...

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361 citations

Cites background from "Knowledge Management as the Basis o..."

...According to the knowledge-based view (KBV), knowledge-related resources are more likely to contribute to a firm’s attaining and sustaining superior performance than tangible resources (Bogner and Bansal, 2007)....
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References

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Journal Article•DOI•

Absorptive capacity: a new perspective on learning and innovation

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Wesley M. Cohen¹, Daniel A. Levinthal²•Institutions (2)

Carnegie Mellon University¹, University of Pennsylvania²

01 Mar 1990-Administrative Science Quarterly

TL;DR: In this paper, the authors argue that the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends is critical to its innovative capabilities.

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Abstract: In this paper, we argue that the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends is critical to its innovative capabilities. We label this capability a firm's absorptive capacity and suggest that it is largely a function of the firm's level of prior related knowledge. The discussion focuses first on the cognitive basis for an individual's absorptive capacity including, in particular, prior related knowledge and diversity of background. We then characterize the factors that influence absorptive capacity at the organizational level, how an organization's absorptive capacity differs from that of its individual members, and the role of diversity of expertise within an organization. We argue that the development of absorptive capacity, and, in turn, innovative performance are history- or path-dependent and argue how lack of investment in an area of expertise early on may foreclose the future development of a technical capability in that area. We formulate a model of firm investment in research and development (R&D), in which R&D contributes to a firm's absorptive capacity, and test predictions relating a firm's investment in R&D to the knowledge underlying technical change within an industry. Discussion focuses on the implications of absorptive capacity for the analysis of other related innovative activities, including basic research, the adoption and diffusion of innovations, and decisions to participate in cooperative R&D ventures. **

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31,623 citations

"Knowledge Management as the Basis o..." refers background in this paper

...The more adept a firm becomes at building on prior knowledge developments, the more effective and efficient it becomes at doing so (Cohen and Levinthal, 1990)....
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Journal Article•DOI•

Dynamic capabilities and strategic management

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David J. Teece¹, Gary P. Pisano², Amy Shuen³•Institutions (3)

University of California, Berkeley¹, Harvard University², San Jose State University³

01 Aug 1997-Strategic Management Journal

TL;DR: The dynamic capabilities framework as mentioned in this paper analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change, and suggests that private wealth creation in regimes of rapid technology change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm.

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Abstract: The dynamic capabilities framework analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. The competitive advantage of firms is seen as resting on distinctive processes (ways of coordinating and combining), shaped by the firm's (specific) asset positions (such as the firm's portfolio of difftcult-to- trade knowledge assets and complementary assets), and the evolution path(s) it has aflopted or inherited. The importance of path dependencies is amplified where conditions of increasing retums exist. Whether and how a firm's competitive advantage is eroded depends on the stability of market demand, and the ease of replicability (expanding intemally) and imitatability (replication by competitors). If correct, the framework suggests that private wealth creation in regimes of rapid technological change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm. In short, identifying new opportunities and organizing effectively and efficiently to embrace them are generally more fundamental to private wealth creation than is strategizing, if by strategizing one means engaging in business conduct that keeps competitors off balance, raises rival's costs, and excludes new entrants. © 1997 by John Wiley & Sons, Ltd.

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27,902 citations

"Knowledge Management as the Basis o..." refers background in this paper

...These concepts of new knowledge and new knowledge development tie strongly to the broader perspective of dynamic capabilities (e.g. Eisenhardt and Martin, 2000; Teece et al., 1997; Zollo and Winter, 2002)....
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Competitive advantage: creating and sustaining superior performance

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M.E. Ponter

01 Jan 1998

TL;DR: Porter's concept of the value chain disaggregates a company into "activities", or the discrete functions or processes that represent the elemental building blocks of competitive advantage as discussed by the authors, has become an essential part of international business thinking, taking strategy from broad vision to an internally consistent configuration of activities.

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Abstract: COMPETITIVE ADVANTAGE introduces a whole new way of understanding what a firm does. Porter's groundbreaking concept of the value chain disaggregates a company into 'activities', or the discrete functions or processes that represent the elemental building blocks of competitive advantage. Now an essential part of international business thinking, COMPETITIVE ADVANTAGE takes strategy from broad vision to an internally consistent configuration of activities. Its powerful framework provides the tools to understand the drivers of cost and a company's relative cost position. Porter's value chain enables managers to isolate the underlying sources of buyer value that will command a premium price, and the reasons why one product or service substitutes for another. He shows how competitive advantage lies not only in activities themselves but in the way activities relate to each other, to supplier activities, and to customer activities. That the phrases 'competitive advantage' and 'sustainable competitive advantage' have become commonplace is testimony to the power of Porter's ideas. COMPETITIVE ADVANTAGE has guided countless companies, business school students, and scholars in understanding the roots of competition. Porter's work captures the extraordinary complexity of competition in a way that makes strategy both concrete and actionable.

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17,979 citations

"Knowledge Management as the Basis o..." refers background in this paper

...The argument concludes that if competitive situations such as this can be created by secondmovers, and at lower costs, then the second-mover’s return on investment may be even greater than that of the first-mover’s (Dos Santos and Peffers, 1995; Lieberman and Montgomery, 1988; Porter, 1985)....
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Journal Article•DOI•

A Dynamic Theory of Organizational Knowledge Creation

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Ikujiro Nonaka¹•Institutions (1)

Hitotsubashi University¹

01 Feb 1994-Organization Science

TL;DR: In this paper, the authors propose a paradigm for managing the dynamic aspects of organizational knowledge creating processes, arguing that organizational knowledge is created through a continuous dialogue between tacit and explicit knowledge.

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Abstract: This paper proposes a paradigm for managing the dynamic aspects of organizational knowledge creating processes. Its central theme is that organizational knowledge is created through a continuous dialogue between tacit and explicit knowledge. The nature of this dialogue is examined and four patterns of interaction involving tacit and explicit knowledge are identified. It is argued that while new knowledge is developed by individuals, organizations play a critical role in articulating and amplifying that knowledge. A theoretical framework is developed which provides an analytical perspective on the constituent dimensions of knowledge creation. This framework is then applied in two operational models for facilitating the dynamic creation of appropriate organizational knowledge.

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17,196 citations

"Knowledge Management as the Basis o..." refers background in this paper

...This allows managers and researchers to better anticipate and identify future opportunities related to new knowledge within the firm (Cockburn et al., 2000; Nonaka, 1994)....
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...The second of these capabilities, knowledge sharing, transforms and exploits the new knowledge throughout the organization, eventually converting and incorporating value-creating resources into operating routines (Nonaka, 1994; Szulanski, 1996; Zahra and George, 2002; Zollo and Winter, 2002)....
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...…argument suggests that the basis for sustained competitive advantage is a firm’s ability to develop rare and valuable knowledge through learning, and to subsequently build upon, and spread, that rare knowledge throughout the organization (Dierickx and Cool, 1989; Lei et al., 1996; Nonaka, 1994)....
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Book Chapter•DOI•

The Core Competence of the Corporation

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C. K. Prahalad¹, Gary Hamel²•Institutions (2)

University of Michigan¹, London Business School²

01 Jan 2006-Harvard Business Review

TL;DR: The most powerful way to prevail in global competition is still invisible to many companies as discussed by the authors, which is why the concept of the corporation itself has not yet been recognized as a powerful competitive advantage.

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Abstract: The most powerful way to prevail in global competition is still invisible to many companies. During the 1980s, top executives were judged on their ability to restructure, declutter, and delayer their corporations. In the 1990s, they’ll be judged on their ability to identify, cultivate, and exploit the core competencies that make growth possible — indeed, they’ll have to rethink the concept of the corporation itself.

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15,465 citations

"Knowledge Management as the Basis o..." refers background in this paper

...The first of these capabilities, creating new knowledge, captures an ongoing series of learning activities wherein the new knowledge developed from each learning event is a rare input for future learning (Helfat and Raubitschek, 2000; Lei et al., 1996; Prahalad and Hamel, 1990)....
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...Looking back at the conceptual literature, we see that Prahalad and Hamel (1990) understood that intermediate knowledge outcomes are ‘core products’, platforms from which further market-oriented innovations are launched....
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