A model of knowledge management and Nform corporation Organization learning: The contributing proce

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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

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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

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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.

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Organization Structures

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

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Organization Structures

• M-Form
• Multi-divisional Form
• By Alfred Sloan, CEO of GM, 1924
• Decomposed into divisional/business units

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Organization Structures
M-form
U-form
Microsoft
Toyota
IBM
Sony

• M-form and U-form are the two ends of the line on
  which every firms organization structure lies.
• N-form

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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 firmsincreased
  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.

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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.

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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.

Internal learning
Market Oppor-tunities
Information knowhow
Combinative Capability
Organizing and Technological Opportunities
SonyEricsson Alliance
External learning
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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?

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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 ?

?
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The Suggestion

• Organizations must understand the needs of their
  consumers. For IBM, creating task forces across
  product lines (pcs, 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.