Andre Saito at JAIST

Grandori, Anna

--05.5.18--

--Grandori & Kogut, 2002, Dialogue on Organization and Knowledge--
Kogut: intellectual roots of the knowledge approach to understanding what firms do: massive literature on technology transfer.

Kogut: Technology transfer is not mechanical, but interactive and embedded in existing capabilities on both sides and in the social relationships between both sides of the transaction. This occurs in three levels, institutional, firm, project. Absorptive capacity. Learning to learn can explain differences in growth and wealth among coutries (Dasgupta, Stiglitz). Single-loop, double-loop learning (Argyris and Schon).

Kogut: firms invest in learning depending upon the degree of competition and imitation (Cohen and Levinthal). The knowledge literature overfocuses on the learning dimension and misses the competitive aspect.

Kogut: New learning depends on social understandings and situated cognition. Social and technical capabilities of countries matter deply. Firms are heterogeneous and differ in their abilities to absorb foreign technologies.

AG: knowledge complexity, differentiation and specialization, complementarity, and interdependence are emerging as important contingencies affecting effective organization and governance solutions. Simon and March, information cost perspective. Knowledge provides many more coordination and governance mechanisms. ... enlarge the perspective to include processes of knowledge articulation and deliberate hypotheses testing. ... more varied trajectories of learning open up. ... knowledge and cognition, rather than just information and information costs, heuristic, theoretical, and paradigmatic knowledge, rather than just routine-based knowledge.

BK: ... historical roots... cultural roots... ... situated practice...

Theory of the firm:

BK: knowledge and incentives are independently sufficient conditions.

AG: neither incentives nor knowledge independently explain the need for islands of shared property rights. ...firms can be explained as communities of shared knowledge and identity (Kogut). Communities of shared knowledge do exist across firm boundaries. ... mechanisms governing them: face-to-face interactions, common computer-based knowledge exchange networks, shared practices and theories, certification bodies and rules. ... little evidence that incentives to share knowledge are generally stronger within the same organization than across its boundaries. ... we do have both communities of knowledge (shared objectives) and knowledge markets (differentiated knowledge and conflicting interests) both within and across firm boundaries. There can be internal islands of shared rights (internal corporate ventures), as there can be external islands of shared rights (interfirm joint ventures).

BK: the effort was... to understand firms as consisting of patterns of behavior that persist even if there is turnover in individuals.

AG: conflit in the firm: lack of incentive compatibility, but also conflict in rooted judgement (different training and orientation).

BK: division of labor organizes our occupational identities, how we see the world, how we learn.

AG: ...occupational identities, industrial identities (e.g. industrial districts), social group identities may be stronger than firm identities. ... many boundaries to a firm, at least (legally defined) property rights boundary, (de facto) knowledge possession boundary, and contractual boundaries (like HR service providers).

BK: certainly identity is not limited to the firm. ... four levels of knowledge, one of them the network. ... explain boundary choice by other factors than incentive conflicts (knowledge-based view). ... endorse this perspective of networks. ... knowledge and incentives are influenced by firm boundaries. ... we cannot create a continuum of organizational forms from the market to the firm. ... Theories of capabilities, competence, and knowledge have forced a major rethinking of the source of differences among firms. ... in firms, coordination, learning and communication are facilitated, but at the cost of a lost in variety. ... identities rule out paths of exploration, alternative visions of organization, and competence. ... the cost of socialization is homogeneity. ... differences among firms and increasing costs incurred by variety. ... identities, learning and coordination are to be found in the interstices among firms and in the occupational communities. ... It is increasingly clear that communities of practice are critical to understanding regions and transfer of ideas by the movement of people.

AG: ... should be possible to explain governance arrangements (firms too) by means of a more general theory that does not rely on particular configurations of power. ... knowledge is an important factor in this more general theory.

 
 
 

Last Modified 5/22/05 9:53 AM