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Part Two KM Approaches

KM as a Process Approach

Chapter Four Knowledge Creation Process

Lecture (4 )

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Learning Objectives

1. Introduction2. KM approaches 3. KM as a process4. KM Processes and the Dynamic Capabilities5. Knowledge Creation Process6. Nonaka's Theory of Organizational K Creation7. The spiral model of organizational knowledge creation8. Knowledge Creation Process in Practice9. CASE STUDY: Japanese-Style versus Western-Style in Organizational

Knowledge Creation

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Introduction

• The term KM is often problematic; it is complex phenomena (Alavi and Leidner 2001)

• there are a variety of perspectives on what KM is about ;

KM is about systems and technologies. KM is about people and learning organizations. KM is about processes, methods and techniques. KM is about managing knowledge assets. KM is about management practice and philosophy. KM is a holistic initiative across the entire

organization.

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KM Approaches

• According to the literature, three main approaches can be determined in addressing KM;

1. KM as a process approach 2. KM as an infrastructure approach 3. KM as an intellectual capital approach

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KM Approaches •

Intellectual capital Approach

Infrastructure Approach

Process Approach

K codificati

on

K dissemin

ation

K utilization

K acquisitio

n

K creation

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KM as a PROCESS APPROACH

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KM is defined as" the process that creates Knowledge and manages

the dissemination and use of knowledge within and between

organizations" (Darroch 2003:41).

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• According to this approach knowledge is viewed as a flow and KM is focusing on the processes of creation, sharing, and distribution and using this knowledge.

• 73% of 260 UK and European organizations voted for the business definition of KM as the collection of processes that govern the creation, dissemination, and utilization of knowledge to fulfill organizational objectives (Murray & Myers 97 P: 29)

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• KM process can be considered a source of competitive advantage.

• If organizations success in creating new knowledge, spread it within and between organizational units and use it into new products and services (Nonaka and Takeuchi, 95).

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Knowledge Management CycleAcquisition

Storage

Dissemination

Integration

Creation

Learning

Utilization

Categorization

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KNOWLEDGE MANAGEMENT AS A PROCESS APPROACH

• However the variety of KM processes as a numbers and as a level of details, we recognized that there is no agreement among authors about how KM begins, or how it is end, but there is a strong relation between KM activities some of these activities run in parallel, and they to some extent support each other.

• Organization aims through the application of km process to achieve several objectives such as making better decision , create value, increase the payoff,……..etc

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KM Processes and the Dynamic Capabilities

• KM processes is determined as an organizational capability which increase firm's ability to renew and develop its k resources through some activities.

• In the dynamic environment, for firms to achieve and sustain competitive advantages it will be insufficient to have just the organizational capabilities ; it must posses a strong dynamic capabilities which increase firm's ability to renew and develop its resources (Teece et al. 1997).

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Organizational capabilities

• Refers to” the firm's ability to perform repeatedly a productive task

• It relates to a firm's capacity for creating value through effecting transformation of inputs into output.

• The result of this capabilities is the ability to produce goods and services.

(refers to firm’s ability to exploit the existing resources )

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Dynamic capabilities

• refers to the firm's ability to integrate , build and reconfigure internal and external competences to address rapidly changing environment

• so the result of this capabilities is the ability to renewing and developing the firm's resources and organizational capabilities .

• (refers to firm's ability to renew and develop its resources)

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• The firm dynamic capabilities stems from its processes and its development, exploitation,

and protection of the-strategic assets (knowledge )

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• According to literature there are abundant of mechanisms to create the dynamic capabilities. Nielsen (2006) suggested that one of them is the integration of the KM activities into three key dynamic capabilities ;

• First : the knowledge development capability ;• where the firm creates, acquires and subsequently captures new knowledge.• Second : The knowledge re-combination capability ;• where knowledge-based resources in the firm is being combined and

integrated in order to form organizational capabilities .• Third : knowledge use capability ; • where the firm's existing and already integrated k resources are being used in

the value creating activities of the firm.

• These three dynamic capabilities are seen as key to achieve the value from the investment in knowledge

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Knowledge process as a main sources of dynamic capabilities in organizations

• We will focus in details on three of the km process; k. creation, k. shared/ transfer (dissemination) and k. utilization as a source of the key dynamic capabilities in the firm, through which companies can achieve and sustain the competitive advantages.

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Knowledge Creation Process

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Knowledge Creation Process• K creation process has many terms;

• k integration ; k coordination ; K conversions; k harvesting k generation and development; k innovation ; K. construction ;

• It defines as “ the process which concerned with the development of new organizational k in the firm”

• It is also defined as “ the process by which organization adds value to previous knowledge through innovation “.

• However, K creation is concerned with the development of new organizational knowledge in the firm ,it is also related to knowledge addition and /or the correction of existing knowledge .

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Nonaka's Theory of Organizational K Creation

• To understand the knowledge creation process, we must understand Nonaka's theory, Professor Ikujiro Nonaka, dubbed "Mr.Knowledge" by the Economic magazine (May 31, 1997 issue), he is the most influential thinkers in the km movement. Through the dynamic theory of organizational k creation, he addressed the k creation process through two dimensions; epistemologically and ontologically

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Epistemological Dimension

ExplicitKnowledge

OntologicalDimension

Tacitknowledge

Individual Group Organization Inter-organization

Knowledge Level

Two Dimensions of Knowledge Creation

CurrentFocus

Source: Adapted from Knowledge-Creating Company, p. 57.

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• Epistemologically; knowledge creation is recognized as the

conversion process between the two famous types of knowledge (tacit k and explicit k)

which included four modes;

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1- The Socialization mode (from tacit to tacit)

• Refers to conversion of tacit k to new tacit knowledge through social interactions and shared experience among organizational members.

– A process of sharing experiences – Apprenticeship through observation, imitation, and practice

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2- The Externalization mode (from Tacit to Explicit)

Refers to converting tacit knowledge to new

explicit knowledge– A process of articulating tacit knowledge into

explicit concepts – A quintessential knowledge-creation process

involving the creation of metaphors, concepts, analogies, hypothesis, or models

– Created through dialogue or collective reflection

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3- The Combination mode (From Explicit to Explicit)

• Refers to the creation of new explicit

knowledge by merging categorizing, reclassifying, and synthesizing existing explicit

knowledge.– A process of systemizing concepts into a knowledge

system – Reconfiguration of existing information and knowledge

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4- The Internalization mode (from Explicit to Tacit)

Refers to creation of new tacit knowledge from explicit

knowledge.– A process of embodying explicit knowledge into tacit

knowledge– Learning by doing– Shared mental models or technical know-how– Documents help individual internalize what they

experience

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Four SECI Modes of Knowledge Conversion

Socialization Externalization

Internalization Combination

Tacitknowledge

Explicitknowledge

Tacit knowledge Explicit knowledge

To

From

Source: Knowledge-Creating Company, p. 62.

1 + 1

3

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Knowledge Spiral

Socialization Externalization

Internalization Combination

Dialogue (Collective Reflection)

LinkingExplicitKnowledge

FieldBuilding

Learning by Doing

Source: Knowledge-Creating Company, p. 71.

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Contents of Knowledge Created in Four ModesTo

From

Source: Knowledge-Creating Company, p. 72.

Tacitknowledge

Explicitknowledge

Tacit knowledge Explicit knowledge

(Socialization)SympathizedKnowledge

(Externalization) Conceptual Knowledge

(Internalization)OperationalKnowledge

(Combination)Systemic

Knowledge

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Contents of Knowledge Created in Four Modes

• Sympathized knowledge: Shared mental models and technical skills.

• Conceptual knowledge: Analogies & metaphors of products or processes.

• Systemic knowledge: Prototypes or new technologies.

• Operational knowledge: Project management, production process, new product usage, and policy implementation

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• Ontologically, knowledge is created only by individuals. Since organization cannot create knowledge without individuals, therefore the role of organization is just support the creative individuals and provides a context for such individual to create knowledge.

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• As a result organizational knowledge creation can be understood as a" process in which organization amplifies the knowledge created by individuals and crystallizes it as a part of its knowledge network”

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• Through the integration of the two dimensions (the epistemological and the ontological) Nonaka introduce the spiral Model for the organizational k. creation as the following figure (2-3) illustrates.

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Epistemological Dimension

ExplicitKnowledge

OntologicalDimension

Tacitknowledge

Individual Group Organization Inter-organization

Knowledge Level

Two Dimensions of Knowledge Creation

Source: Adapted from Knowledge-Creating Company, p. 73.

Inter

nalize

d

Externalized

Socialization

Combination

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The spiral model of organizational knowledge creation

• The idea behind this model is that the interaction between tacit and explicit k will be larger in scale and faster in speed as more actors in, and the process of knowledge creation can be viewed as an upward spiral endless process, starting at the individual level and expanding as it moves through communities of interaction (individual- group- organization – inter organization).

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The concept of Ba• It is useful to consider the conditions and environments that facilitate

new k creation. • Nonaka and Konno (1998) introduced a term (Ba) defined as “a shared

context in which k is created, shared, and utilized “ .• For the Japanese Ba defined as a “common place or space for

knowledge creation”

• it has a function of serving as a platform of knowledge creation, • Ba -------- can be a physical space (a meeting room),• Ba---------can be a virtual space (e-mail - teleconference), • Ba ---------can be a mental space (shared experiences, ideas -mental

model) • Ba -------can be a combination of them (Bas).

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Criticism

Some authors ( Boland et.al, 94 ) criticize Nonaka theory since it is difficult to use the distinctive categories of knowledge which are in

the social practice interrelated and inseparable items.

Others found it is difficult to focus on the abstract integration of these inseparable categories apart from the way firms use k in practice

(Tsoukas 1996 ). Others also claimed that the SECI model failed to explain some

important keys such as; how individual generate tacit k. , how the emerging problems are resolved , and what are the closure means

for k creation in organizations , . Spender (1996) However Nonaka's theory still has a wide acceptance and application

among km authors and practitioners

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Knowledge Creation Process in Practice

• Regarding to the tacit ness nature of knowledge K. creation process cannot be managed in the traditional management.

• Authors replaced it by the concept of knowledge enablers and barriers

• The explaining factors that influences positively (enablers) and some factors influence negatively on knowledge creation process

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K. Creation Enablers The most important k creation enablers are:-

1. Management commitment 2. knowledge asset (KAs) 3. The available degree of relationship- 4. the organizational culture 5. the organizational structure 6. The 7 Cs (connection, concurrency, comprehension communication,

conceptualization, collaboration, and collective intelligence),7. Resource allocation . • Generally speaking we can consider the lack of any of knowledge

creation facilitator as barriers for successful knowledge creation process.

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CASE STUDY Japanese-Style versus

Western-StyleIn Organizational Knowledge

Creation

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Japanese-Style vs. Western-Style Organizational Knowledge Creation

• Group-based• Tacit knowledge-oriented• Strong on socialization and internalization

• Emphasis on experience• Danger of group thinking & over-

adaptation to past successes• Ambiguous organizational intention• Group autonomy• Creative chaos through overlapping tasks

• Requisite variety through cross-functional teams

Japanese Organization Western Organization

• Individual-based• Explicit knowledge-oriented• Strong on externalization and

combination• Emphasis on analysis• Danger of paralysis by analysis

• Clear organizational intention • Individual autonomy• Creative chaos through individual

differences• Requisite variety through individual

differences

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The End

I wish to know what we knew