Ji-Ren Lee

Department of International BusinessNational Taiwan University

2004 NCCU Global Management Forum

Commentary Remarks on

“Knowledge Governance in Organizational Knowledge Creation:

A Knowledge Governance Perspective”

by Chi-Wei Liu and Pei-Wen Huang

Conceptual Presentation of the ThesisConceptual Presentation of the Thesis What’s the story deliveredWhat’s the story delivered

So, What’s New?So, What’s New? Intended contributionIntended contribution

CommentsComments Theoretical IntegrationTheoretical Integration Multilevel PhenomenonMultilevel Phenomenon Knowledge Governance PerspectiveKnowledge Governance Perspective Thesis PresentationThesis Presentation

Suggestion for Future Research Suggestion for Future Research

Presentation OutlinePresentation Outline

Conceptual Presentation of the ThesisConceptual Presentation of the ThesisO

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Organizational Knowledge Creation

Knowledge Communication

the exchange of information, ideas or thoughtsamong organization members which results in

mutual understanding and shared sense-making

Knowledge Consolidationthe act of integrating, intermingling and leveraging existing

individual knowledge into a unified and organizationalone by bridging the cognitive distance among organizationmembers through the interaction of their learning activities

• Knowledge Search

• Knowledge Acquisition

• Knowledge Transfer

• Knowledge Transform

• Knowledge Replication

• Knowledge Construction

• Knowledge Reconfiguration

• Knowledge Application

Incentive

Identity/Shared Value

Mutual Trust

InformalCommunication

Organizational knowledge creation (OKC)Organizational knowledge creation (OKC) A multilevel phenomenon: from individual to collective unitsA multilevel phenomenon: from individual to collective units

OKC cannot separate from organizational contextOKC cannot separate from organizational context

Organizational context that facilitates OKC constitutes as Knowledge GovernOrganizational context that facilitates OKC constitutes as Knowledge Govern

ance (KG)ance (KG)

KG= (KCommunication + KConsolidation) * ( Incentive + Identity + Trust + InfKG= (KCommunication + KConsolidation) * ( Incentive + Identity + Trust + Inf

ormal Communication)ormal Communication) Governance is to motivate and coordinate the process of OKC Governance is to motivate and coordinate the process of OKC

Economic-social behavior model, but emphasizing a social context to manage cogEconomic-social behavior model, but emphasizing a social context to manage cog

nitive distancenitive distance

Governance as both process-loss avoidance and process-gain facilitationGovernance as both process-loss avoidance and process-gain facilitation

Intended Contributions: Intended Contributions: Provide a holistic model of OKC centering around two types of KM activitiesProvide a holistic model of OKC centering around two types of KM activities

Suggest governance mechanisms for OKC based on a conceptual “integratioSuggest governance mechanisms for OKC based on a conceptual “integratio

n” from n” from TCE, KBV, Relational Embeddedness, and Cognitive literatureTCE, KBV, Relational Embeddedness, and Cognitive literature

So, What’s New? So, What’s New?

Theoretical Underpinning and IntegrationTheoretical Underpinning and Integration

Firm as a repository of knowledge and governance mattersFirm as a repository of knowledge and governance matters

Role of self-interest / opportunism in organization and market governanceRole of self-interest / opportunism in organization and market governance

KBV could exist without self-interest assumptionKBV could exist without self-interest assumption

Thinking beyond TC as sole contributor to economic incentives of governanceThinking beyond TC as sole contributor to economic incentives of governance

TC in fact did not suggest incentive mechanismsTC in fact did not suggest incentive mechanisms

Property Right Theory (Alchian & Demsetz, 1972; Grossman and Hart, 1986)Property Right Theory (Alchian & Demsetz, 1972; Grossman and Hart, 1986) Properly assign ownership based on property right contributedProperly assign ownership based on property right contributed

Agency Theory: Incentive and Control Mechanisms (Eisenhardt, 1989)Agency Theory: Incentive and Control Mechanisms (Eisenhardt, 1989)

Organization as a purposive adaptation, not a substitution of market (Ghoshal aOrganization as a purposive adaptation, not a substitution of market (Ghoshal a

nd Moran, 1996)nd Moran, 1996)

Issues to be resolved:Issues to be resolved:

Organizational learning as a governance mechanism?Organizational learning as a governance mechanism?

Integration and balance between economic and social behavior in KM (3M example)Integration and balance between economic and social behavior in KM (3M example)

Specific content of social governance mechanismsSpecific content of social governance mechanisms

Comments (1/2)Comments (1/2)

OKC is multilevel phenomenonOKC is multilevel phenomenon KM need to explain how knowledge is created across levels, e.g., Nonaka’s KM need to explain how knowledge is created across levels, e.g., Nonaka’s

SECI processSECI process

Exchange + Integration + Intermingling + Leveraging = Creation?Exchange + Integration + Intermingling + Leveraging = Creation?

Figure 2: How social context affects these process differently and interactivelFigure 2: How social context affects these process differently and interactivel

y?y?

What Left for Building a Knowledge Governance Perspective ?What Left for Building a Knowledge Governance Perspective ? PerspectivePerspective

““the way in which a situation or problem is judged, so that proper consideration anthe way in which a situation or problem is judged, so that proper consideration an

d importance is given to each part” (Longman’s)d importance is given to each part” (Longman’s)

““the interrelation in which a subject or its parts are mentally viewed” (Webster’s) the interrelation in which a subject or its parts are mentally viewed” (Webster’s)

Issues to be resolved:Issues to be resolved: Clear and Solid Framework for Capturing Content of KGClear and Solid Framework for Capturing Content of KG

Figure 2: problematic with mixed constructs and unexplored contentFigure 2: problematic with mixed constructs and unexplored content

The linkage between social context and KM activitiesThe linkage between social context and KM activities How is cognitive distance managed that will contribute to OKC?How is cognitive distance managed that will contribute to OKC?

Comments (2/2)Comments (2/2)

Strengthen Theoretical IntegrationStrengthen Theoretical Integration Resolve incommensurability problem before integrationResolve incommensurability problem before integration

Thinking beyond TC for economic incentive in knowledge Thinking beyond TC for economic incentive in knowledge

governancegovernance

Bringing more insight from cognitive theoryBringing more insight from cognitive theory

Social Governance and Cognitive ManagementSocial Governance and Cognitive Management How do they interact?How do they interact?

Toward a Management Theory of OKCToward a Management Theory of OKC

Dynamic Process Issues of Knowledge CreationDynamic Process Issues of Knowledge Creation

Knowledge Creation within and between OrganizationsKnowledge Creation within and between Organizations

Work out clinical cases firstWork out clinical cases first

Suggestions for Future ResearchSuggestions for Future Research

Cognition School

Resource-based view

Relational embeddedness theory

Transaction Cost Theory

KGP

DIMENSIONS OF ORGANIZATIONAL BEHAVIOR WAY OF THINKING: AN ECONOMIC-SOCIAL MODLE OF BEHAVIOR

Knowledge sharing

Knowledge transfer

Organizational learning

Knowledge spiral

Knowledge integration

Incentive mechanismShared identityTrustInformal communication ChannelsOrganizational learning

KnowledgeCommunication

Knowledge Consolidation

Knowledge Creation

CONCEPTUAL MODEL