Ji-Ren Lee Department of International Business National 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 Thesis Conceptual Presentation of the Thesis What’s the story delivered What’s the story delivered So, What’s New? So, What’s New? Intended contribution Intended contribution Comments Comments Theoretical Integration Theoretical Integration Multilevel Phenomenon Multilevel Phenomenon Knowledge Governance Perspective Knowledge Governance Perspective Thesis Presentation Thesis Presentation Suggestion for Future Research Suggestion for Future Research Presentation Outline

Conceptual Presentation of the Thesis Organizational Level Group Level Individual Level Organizational Knowledge Creation Knowledge Communication the exchange of information, ideas or thoughts among organization members which results in mutual understanding and shared sense-making Knowledge Consolidation the act of integrating, intermingling and leveraging existing individual knowledge into a unified and organizational one by bridging the cognitive distance among organization members 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 Informal Communication

Organizational knowledge creation (OKC) Organizational knowledge creation (OKC) A multilevel phenomenon: from individual to collective units A multilevel phenomenon: from individual to collective units OKC cannot separate from organizational context OKC cannot separate from organizational context Organizational context that facilitates OKC constitutes as Knowledge Governance (KG) Organizational context that facilitates OKC constitutes as Knowledge Governance (KG) KG= (KCommunication + KConsolidation) * ( Incentive + Identity + Trust + Informal Communication) KG= (KCommunication + KConsolidation) * ( Incentive + Identity + Trust + Informal 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 cognitive distance Economic-social behavior model, but emphasizing a social context to manage cognitive distance Governance as both process-loss avoidance and process-gain facilitation Governance 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 activities Provide a holistic model of OKC centering around two types of KM activities Suggest governance mechanisms for OKC based on a conceptual “integration” from TCE, KBV, Relational Embeddedness, and Cognitive literature Suggest governance mechanisms for OKC based on a conceptual “integration” from TCE, KBV, Relational Embeddedness, and Cognitive literature So, What’s New?

Theoretical Underpinning and Integration Theoretical Underpinning and Integration Firm as a repository of knowledge and governance matters Firm as a repository of knowledge and governance matters Role of self-interest / opportunism in organization and market governance Role of self-interest / opportunism in organization and market governance KBV could exist without self-interest assumption KBV could exist without self-interest assumption Thinking beyond TC as sole contributor to economic incentives of governance Thinking beyond TC as sole contributor to economic incentives of governance TC in fact did not suggest incentive mechanisms TC 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 contributed Properly 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 and Moran, 1996) Organization as a purposive adaptation, not a substitution of market (Ghoshal and 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 mechanisms Specific content of social governance mechanisms Comments (1/2)

OKC is multilevel phenomenon OKC is multilevel phenomenon KM need to explain how knowledge is created across levels, e.g., Nonaka’s SECI process KM need to explain how knowledge is created across levels, e.g., Nonaka’s SECI process Exchange + Integration + Intermingling + Leveraging = Creation? Exchange + Integration + Intermingling + Leveraging = Creation? Figure 2: How social context affects these process differently and interactively? Figure 2: How social context affects these process differently and interactively? What Left for Building a Knowledge Governance Perspective ? What Left for Building a Knowledge Governance Perspective ? Perspective Perspective “the way in which a situation or problem is judged, so that proper consideration and importance is given to each part” (Longman’s) “the way in which a situation or problem is judged, so that proper consideration and 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 KG Clear and Solid Framework for Capturing Content of KG Figure 2: problematic with mixed constructs and unexplored content Figure 2: problematic with mixed constructs and unexplored content The linkage between social context and KM activities The 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)

Strengthen Theoretical Integration Strengthen Theoretical Integration Resolve incommensurability problem before integration Resolve incommensurability problem before integration Thinking beyond TC for economic incentive in knowledge governance Thinking beyond TC for economic incentive in knowledge governance Bringing more insight from cognitive theory Bringing more insight from cognitive theory Social Governance and Cognitive Management Social Governance and Cognitive Management How do they interact? How do they interact? Toward a Management Theory of OKC Toward a Management Theory of OKC Dynamic Process Issues of Knowledge Creation Dynamic Process Issues of Knowledge Creation Knowledge Creation within and between Organizations Knowledge Creation within and between Organizations Work out clinical cases first Work out clinical cases first Suggestions 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 mechanism Shared identity Trust Informal communication Channels Organizational learning Knowledge Communication Knowledge Consolidation Knowledge Creation CONCEPTUAL MODEL