1. 15 Nov 2005MIS 580 - KM Most Cited 13-15 By: Sven Thoms KM Perspectives on Resources and Organizational Memory Knowledge Management Paper Analysis

2. 15 Nov 2005MIS 580 - KM Most Cited 13-15 Papers Analyzed Wernerfelt,Birger. “A Resource-Based View of the Firm”. Strategic Management Journal, 1984 Von Hippel, Eric. “Sticky Information and the Locus of Problem Solving: Implications for Innovation. Management Science, 1994 Walsh, James; Ungson, Gerardo. “Organizational Memory”. The Academy of Management Review, 1991

3. 15 Nov 2005MIS 580 - KM Most Cited 13-15 A Resource-Based View of the Firm Wernerfelt, Birger, Professor of Management Science, M.I.T.

4. 15 Nov 2005MIS 580 - KM Most Cited 13-15 Resource-Based View Wernerfelt coined term in 1984 1994 Strategic Management Journal Best Paper Prize Key Elements: –Scarce Resources can create competitive advantage –Resource Identification, Profitability Assessment, and Development using Porter’s 5 Forces Model

5. 15 Nov 2005MIS 580 - KM Most Cited 13-15 Resource-Based View Resources are assets tied to firm, e.g. –Machinery –Processes –Brand Names –Skilled Workers –Technology Know-How –Trade Contacts Current and Future Resources provide strategic insights into the firm’s competitiveness

6. 15 Nov 2005MIS 580 - KM Most Cited 13-15 Resource-Based View Recall: Porter’s 5 Forces  Product-Based

7. 15 Nov 2005MIS 580 - KM Most Cited 13-15 Resource-Based View Buyers, Suppliers, Substitutes –Resources in few hands limit user’s return –Bad if product from resource only sold to few buyers –Substitute resources always a threat to suppliers Example: –Diamonds, DeBeers –Oil vs. Hydrogen –Gallium Arsenide chips for military and NASA

8. 15 Nov 2005MIS 580 - KM Most Cited 13-15 Resource-Based View New Entrance Barriers –Resource Position Barriers Temporary advantage from holding a key resource –Barriers within same market ! Resource-Entry Barrier Duality –Create barrier to entry from exclusive access to resource AND from product-based entry barriers Example: Pharma patents and skill sets

9. 15 Nov 2005MIS 580 - KM Most Cited 13-15 Resource-Based View Attractive: –Machine Capacity –Customer Loyalty –Production Experience Do Portfolio Analysis of Resources Generate Technical Lead and keep it by employing knowledgeable staff Look for supplementary and complementary resources in mergers

10. 15 Nov 2005MIS 580 - KM Most Cited 13-15 Resource-Product Matrix An aid to resource identification Links resources and profitability potential Primary and secondary resources Balancing Existing and New Resources

11. 15 Nov 2005MIS 580 - KM Most Cited 13-15 Related Paper Gold, Malhotra, Segars. “Knowledge Management: An organizational capabilities perspective”. University of North Carolina, 2001 Related Theme: –knowledge infrastructure (techn, structure, culture) and knowledge process capability (acquision, conversion, application, protection) combine to form organizational effectiveness

12. 15 Nov 2005MIS 580 - KM Most Cited 13-15 Sticky Information and the Locus of Problem-Solving Von Hippel, Eric Professor of Management Innovation and Entrepreneuship, M.I.T.

13. 15 Nov 2005MIS 580 - KM Most Cited 13-15 Sticky Information Sticky: –Tacit –Bound to one place Depending on: –Nature of Information –Transfer Problems –Mismatch of Buyer-Seller needs and capabilities Key Elements: –Makes problem-solving more complex

14. 15 Nov 2005MIS 580 - KM Most Cited 13-15 Mitigating Sticky Information in Innovation 4 Approaches: –Solve problem where information is –Iterate between sites to solve problem –Subdivide tasks to fit resource availability –Decrease stickiness by technological means

15. 15 Nov 2005MIS 580 - KM Most Cited 13-15 Cross-Cutting Theme Once resource (information) is identified as in Wernerfelt’s model, then strategic use of the sticky information can be discussed Cost of transfer can be seen as a barrier to intra-company effective use, similar to barriers for other firms to use information resources Relevancy: –Allen Curve, BMW Research and Innovation Center –Expert Systems –Consulting environment, on-site presence –Videoconferencing, Content Mgt Systems

16. 15 Nov 2005MIS 580 - KM Most Cited 13-15 Related Paper Audretsch, Feldman. “Knowledge Spillovers and the Geography of Innovation”. University of Toronto, 2003 Key concept: –Innovation clusters, R&D center of expertise development –Innovation happens best where resources are concentrated, facilitating tacit knowledge interchange

17. 15 Nov 2005MIS 580 - KM Most Cited 13-15 Organizational Memory Walsh & Ungson Business Administration, U. Mich., International Business, San Francisco State

18. 15 Nov 2005MIS 580 - KM Most Cited 13-15 Analogies Human Brain processes and stores past information Flawed concepts of organizations’ memory Key Questions: –How is organizational memory different –How do individuals retrieve from organizational memory –Can knowing an organization’s past experience really help with current decision-making?

19. 15 Nov 2005MIS 580 - KM Most Cited 13-15 Assumptions Organizations process information Organizations interpret environmental facts and changes with help of memory Semantics given to information by shared meanings and interaction in organization Systems perspective to organizational memory

20. 15 Nov 2005MIS 580 - KM Most Cited 13-15 Definition Staff Members develop knowledge, share it, becomes part of organization Decision Factors and Lessons Learned, Outcomes Framework of information acquision, retention, and Processing needed 3 roles –Informational –Control –Political

21. 15 Nov 2005MIS 580 - KM Most Cited 13-15 Memory Processes Information –Acquisition –Retention –Retrieval

22. 15 Nov 2005MIS 580 - KM Most Cited 13-15 The Framework Individuals Culture Transformations Structures Ecology External Archives  Acquire, Process, Retrieve

23. 15 Nov 2005MIS 580 - KM Most Cited 13-15 Walsh’s Suggestions Make current decisions in past’s context Less Resistance to decisions if backed up by past experience Unlearn old information to adapt to present Past can confuse, need also to be able to retrieve it Automated retrieval = routine responses Analysis Paralysis Rewriting History to suit organizational power plays is a danger Design Organization with memory in mind Retain knowledge workers

24. 15 Nov 2005MIS 580 - KM Most Cited 13-15 Related Themes Kleiner, Roth: How to make experience your company’s best teacher (2000) –Learning histories, narratives Argvris, Chris: Teaching Smart People How to Learn (1991) –Defensive Reasoning Ginsburg, Mark: Annotate A Web-based Knowledge Management Support System for Document Collections (1998) –Enable document annotations and usage history tracking of DMSs Link to Article

25. 15 Nov 2005MIS 580 - KM Most Cited 13-15 Conclusion Von Hippel’s Sticky Information Concept very intuitive Wernerfelt’s Resource-Based model universally applicable –Mathematics hard to grasp Walsh’s observations on organizational memory akin to 11 Deadly Sins of Knowledge Management by Prusak and Fahey