1. A model of knowledge management and N-form corporation Organization learning: The contributing processes and the literatures Knowledge of the firm, combinative capabilities, and the replication of technology Discussed by Manny Martinez Yi-Hsuan Lee

2. Agenda Organization structures vs. knowledge management Organization Structures The gap between the firms in Japan and U.S. Organizational Learning Growth of knowledge of the firm The problem needed to be overcome The suggestion

3. Organization Structures Vs. Knowledge Management Knowledge is embedded in structured individual relationships. The knowledge of the firm can be understood as resting in the organizing of human resources. The “ share ” concept in information distribution is important. Units that have information and units that need this information can find each other quickly. Knowledge management is affected strongly by organization structure.

4. Organization Structures U-form Unitary form / Functional form Decomposed into specialized/functional units which are similar tasks (such as production and sales)

5. Organization Structures M-Form Multi-divisional Form By Alfred Sloan, CEO of GM, 1924 Decomposed into divisional/business units

6. Organization Structures M-form and U-form are the two ends of the line on which every firm ’ s organization structure lies. N-form IBM Microsoft Sony Toyota

7. The Gap between The Firms in Japan and U.S. Japanese firms historically were smaller and less diversified. More recently, a new trend has developed. This represents a shift from the “ U ” to the “ M ” form. Sony: become similar to western firms – increased size, more diversified. U.S. firm are moving in the opposite direction, realizing the power of team interactions and the benefit of centralization. The gap between eastern and western firms is getting smaller because of globalization. The diversification is increasing in both countries.

8. Organizational Learning Sony + Ericsson (Strategic Alliance) Information Acquisition The Alliance helps them to learn from each other. Different organization structures lead them to different way in learning. “ Share ”, or interaction, is still the key point.

9. Growth of Knowledge of the Firm Through combinative capabilities, Sony and Ericsson internalize the information to form their growth of knowledge after external learning, and finally develop the market opportunities. Information knowhow Combinative Capability Organizing and Technological Opportunities External learning Internal learning SonyEricsson Alliance Market Oppor- tunities

10. The Problem Needed to Be Overcome According to Huber, researchers of organizational learning do not share information. Similarly, the divisions of the organization, such as IBM, do not maximize “ cross- fertilization ”. SonyEricsson Alliance also needs more shared knowledge. Question – How can we promote meaningful interactions between divisions?

11. N-form Might Be The Solution N-form can help solve this interaction problem through institutionalized team work and inclusion of lower level employees. But the form still has some weakness Large complex projects, lack of cohesive vision. What we recommend for firms such as IBM ?

12. The Suggestion Organizations must understand the needs of their consumers. For IBM, creating task forces across product lines (pc ’ s, servers) can create holistic solutions for the customer. This is the “ N ” structure. However, the ability of a hierarchical organization to deal with complexity and allocate resources effectively is important. This is the “ M ” structure. As a result, managers must strive to balance response flexibility to retaining the ability to manage complex situations.