Learning by Networking :

1
Learning by Networking
Knowledge Search and Sharingin the Multinational
Enterprise

• James Nebus
• Northeastern U
• Kendall Roth
• U of South Carolina
• October 4, 2003

2
Agenda

• Problem Statement, Research Questions
• Context and Assumptions
• Previous Research
• Trade-Offs During Knowledge Search
• Theoretical Framework
• Knowledge Search Model
• Research Design
• Sample
• Results
• Implications for Practice

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Problem Focus, Research Questions

• Firms competing with an Innovation Strategy
• Successful MNEs are competing with a strategy
  based on discovering, mobilizing, and leveraging
  untapped knowledge, wherever this knowledge may
  be located
• Underlying assumption in Knowledge Transfer lit
• Knowledge source has been identified Studies
  refute this
• Problem Statement Searching for Knowledge
• Number one barrier to knowledge sharing is
  recipient not being aware the knowledge already
  existed in-house, or unit possessing knowledge
  not being aware that another sub-unit is in need
  of such knowledge. (Szulanski, 1994)
• Research Questions
• Whom do persons contact for knowledge? Why do
  they contact them? What motivates them to search
  across borders?

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Outcomes, Context, Assumptions

• Predicted Binary Outcome Contacted/Not Contacted
  
• When the searcher knows several people who can
  contribute knowledge to the situation, which
  persons are contacted?
• People are Most Important Sources of Information
• Despite availability of online sources, 85 of
  managers interviewed contacted other people for
  knowledge that was critical to project success
  (Cross, 2000)
• MNE organizational environment
• Presents a worst case scenario for effective
  search due to geographic dispersion and cultural
  differences of subsidiaries
• Assumes Intellectual Task
• Task is impetus for Search Search boundaries
  unconstrained
• Learning by Networking
• Knowledge searchers follow their informal
  networks rather than asking appointed experts

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Research on Information Sources
Antecedents

• Expertise
• Credibility
• Availability
• Costs (including Time)
• Trustworthiness
• Sources responsiveness
• Geographic distance
• Cultural distance
• Organizational separation
• Demographic similarity

• Zmud, 1978
• O'Reilly Roberts, 1976
• Culnan, 1983 O'Reilly, 1982
• Hansen Haas, 2002
• Andrews Delahaye, 2000
• Gerstberger Allen, 1968
• Monge, Rothman, Eisenberg, Kristie, 1985
• Kogut Singh, 1988
• Seaman Basili, 1977
• Zenger Lawrence, 1989

Contributes Overarching Theory, International
context
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Knowledge Search Trade-Offs
Expert Pool
Social Contacts
Xi
Xj
Me
Ego (Team Member Performing Search)
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Experts Who are Also Social Contacts
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Theoretical Framework

• Knowledge Search based on theories of Choice
• Expectancy Theory Rational, Economic (Vroom,
  1964)
• Prospect Theory Heuristic (Kahneman Tversky,
  1979)
• Assumptions of Expectancy and Prospect Theory are
  two extremes of a continuum
• Expectancy Theory assumes people
• have info on value and cost of potential
  knowledge sources
• behave to maximize utility
• Choice based on each contacts knowledge value
  and cost moderated by expectation (probability)
  of achieving each
• Prospect Theory assumes people
• dont have enough info to assess potential
  knowledge
• cognitively limited, tend to satisfice
• Choice based on contacts willingness to share,
  accessibility

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Knowledge Search Model

• Determinants of Perceived Value
• l Expertise of j in the task H5a ()
• l Cognitive Trust of j H5b ()
• l Credibility of j H5c

Research Question What is the Probability that
the ego will contact person j? l Pr E
j
Perceived Value
H5
Determinants of Obtaining Value l Affective
trust H6a () l Obligation of Reciprocation
H6b () l Mutual friends with Expert H6c () l
Previous Responsiveness H6d () l Reputation
for Helping H6e ()
H1
H6
Expectation of Obtaining Value

H3
Prob of Person j Contacted
-
Indicators of Perceived Cost l Monetary Costs to
Contact H2a () l Time Duration of Response
H2b () l Time to Adapt Knowledge H2c () l
Social Cost H2d ()
Perceived Cost
H2
Expectancy Theory l Interaction Effects l H1,
H2 Prospect Theory l Direct Effects l H3, H4
H4
H7
Perceived Accessibility
Antecedents to Perceived Risk l Cultural
Distance H7a() l Geographic Distance H7b
() l Organizational Separation H7c () l
Frequency of Contact H7d (-)
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Research Design

• Field Study within 12 European Subsidiaries of
  one American HQ based Software / IT Services
  Corp.
• Research Population
• Engineers, Sales, Project Managers, Industry
  Consultants
• Task
• Developing IT customer project proposals (RFP
  response)
• Opportunity to leverage knowledge from others
• Interview Members Searching for Knowledge
• Understand the nature of knowledge being sought
• Obtain list of person contacted and those who
  could have been contacted, but were not
• Surveys on Dyads (level of analysis) which were
  either
• (Searcher Person Contacted)
• (Searcher Person NOT Contacted)
• Surveys captured antecedents

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Population Sample
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Results Knowledge Search Model
Perceived Value of Knowledge
H1
Research Question What is the Probability that
the ego will contact person j?
Expectation of Obtaining Knowledge

Prob of Person j Contacted
H3
86 of Contacts Predicted Correctly
-
H2
Perceived Cost
H2 Significant Interaction is Perceived Social
Cost x Accessibility (Ease of Contact)
Perceived Accessibility
H4
p lt .01
p lt .05
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Determinants of Perceived Value of
Knowledge,Expectation of Obtaining Knowledge

• Determinants of Perceived Value
• l Expertise of j in the task H5a ()
• l Cognitive Trust of j H5b ()
• l Credibility H5c ()
• R2.52

Perceived Value of Knowledge
H5

• Determinants of Obtaining Value
• l Affective trust H6a ()
• l Formal Obligation to Help H6b ()
• l Mutual friends with Expert H6c ()
• l Helped Searcher Previously H6d ()
• l Reputation for Helping H6e ()
• l Informal Obligation to Help H6f ()
• 
  R2.35

Expectation of Obtaining Knowledge
H6
p lt .01
p lt .05
14
Perceived Cost,Perceived Accessibility

• Indicators of Perceived Cost
• l Monetary Costs to Contact H2a ()
• l Time to Obtain Knowledge H2b ()
• l Time to Adapt Knowledge H2c ()
• l Social Cost (Obligation) H2d ()

Perceived Cost
R2.11

• Determinants of Perceived Accessibility
• l Cultural Distance H7a ()
• l Geographic Distance H7b ()
• l Frequency of Interaction at Work H7c ()
• l Freq of Interaction Outside of Work H7d ()
• l Freq of Face to Face Interaction H7e ()
• l Freq of Interaction for Knowledge H7f ()
• 
  R2.53

H6
Perceived Accessibility
p lt .01
p lt .05
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Implications for Practice

• What are some mechanisms that management can use
  to motivate associates, and make knowledge search
  more effective?
• Increase Perceive Value
• give visibility to knowledge available in other
  subsidiaries
• publish lists of experts in different areas
• Increase Expectation of Receiving Value
• increase the willingness to share knowledge
• reward sharing knowledge, create sharing culture
• Increase Accessibility / Decrease Cost
• create organizational forums in which experts
  meet associates
• organize work for international teams which build
  relationships, and increase access, across
  subunit boundaries