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Nov 6, 2013 (4 years and 3 days ago)

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McGraw
-
Hill/Irwin

International Management

© 2005 The McGraw
-
Hill Companies, Inc., All Rights Reserved.

International Management

Phatak, Bhagat, and Kashlak

McGraw
-
Hill/Irwin

International Management

© 2005 The McGraw
-
Hill Companies, Inc., All Rights Reserved.

Chapter 11

Managing Technology and
Knowledge

11
-
3

Learning Objectives

Understand the concept of technology and the process of
technology transfer.

Explain the relevance of appropriate technology transfer for
international management.

Define and distinguish among the concepts of data, information,
and knowledge.

Understand the relevance of these three commodities for
international management.

Explain the process of creation, transformation, and transfer of
knowledge.











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-
4

Learning Objectives
(contd.)

Identify the processes that integrate management of technology
and knowledge with strategic processes of international and
global corporations.

Understand the concept of learning organizations.

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5

Chapter Topics


Understanding Technology

Technology and Technology Transfer

The Role of Strategy and Cultural Issues

Knowledge in Organizations

The Process of Knowledge Management

Managing the Knowledge Life Cycle

Integration of Strategic Processes with Knowledge Management

The Learning Organization

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6

Technology

… is composed of a systematically
developed set of information, skills, and
processes that are needed to create, develop,
and innovate products and services

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7

Types of Technologies

1)
Product
-
embodied technology

2)
Process
-
embodied technology

3)
Person
-
embodied technology

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8

Description of Technology Types

Product
-
embodied technologies

are transferred by
transferring the physical product itself

Process
-
embodied technology

is concerned with blueprint
or patent rights of the actual scientific processes and engineering
details from the developer to another

Person
-
embodied technology

is concerned with creating
continuous dialogue between the supplier and the recipient
organizations pertaining to the intrinsic nature, diffusion, and
utilization of certain scientific forms that are hard to articulate in
the form of either process or product

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9

Factors Influencing Technology Transfer

Similar language

Common ancestry and shared history

Physical proximity

Technical competence of the workforce

The complexity of the technology at the time of
transfer

The number of successful prior transfers

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10

Factors Causing Difficulty in Technology
Transfer

Differences in strategic thinking

Characteristics of the technology involved

Differences in organizational and corporate cultures

Differences in societal cultures


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11

Ex. 11
-
1: Rate of Innovation and New
Technology Creation








Japan












US



















India



















UK
















France












Brazil





Rate of innovatio
n
or new technology

creation

Collectivistic
Countries

Individualistic
Countries

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12

Ex. 11
-
2: A Conceptual Model for Understanding
Cultural Constraints on Technology Transfer

Antecedent Characteristics
of Technology Involved

Product
-
embodied

Process
-
embodied

Person
-
embodied

Antecedent differences in
organizational cultures
between the transacting
organizations

Societal Culture
-
Based Differences in
Terms of

Uncertainty avoidance

Power distance

Individualism vs. collectivism

Masculinity vs. femininity

Abstractive vs. associative

Absorptive Capacity of the Recipient
Organization

Local vs. cosmopolitan orientation

Existence of an already sophisticated
technical core

Strategic management process

Effectiveness of
Technology Transfer
Across Nations

Presumed causal

influences

Presumed moderating

influences

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13

Knowledge

“Fluid mix of experience, values,
contextual information, and expert
insight that provides a framework for
evaluating and incorporating new
experiences and information”

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14

Features of Knowledge

(summarized by Nonaka and Takeuchi)

First, knowledge, unlike information, is about
beliefs

and
commitment
. Knowledge is a
function of a particular stance, perspective, or
intention. Second, knowledge, unlike
information, is about
action
. It is always
knowledge ‘to some end.’ And third,
knowledge, like information, is about
meaning
. It is context
-
specific and relational.

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15

Intellectual Capital

… of a global corporation is the sum
total of its stock of knowledge, which
is described in procedures and
manuals as well as systematically
embedded in its unique culture and in
the individuals of the organization

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16

Processes for Transforming Information to
Knowledge

Comparison

Consequences

Connections

Conversation


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Tacit and Explicit Knowledge

Tacit knowledge

is knowledge that is highly
personal, difficult to communicate, and highly
specialized. It is hard to process and transfer
because it is a part of the historical and cultural
context in which the organization exists.

Explicit knowledge

is knowledge that can be
written and transmitted. It is discrete or digital,
stored in repositories such as libraries and
databases.

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18

Ex. 11
-
3: Spiral of Knowledge Creation



























Combination



Internalization

Internalization

Articulation

Articulation

Socialization


Socialization


Socialization


Combination



Explicit Knowledge

Tacit Knowledge

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19

Ex. 11
-
4: The Knowledge Life Cycle


















P
ERCENTAGE OF
P
EOPLE
OR
O
RGANIZATIONS
THAT HAVE ACCESS TO

THE KNOWLEDGE IN
QUESTION

TIME

Creation

Mobilization

Diffusion

Commoditization














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20

Effective Management of Knowledge

Strategic Considerations

Strategic intent for knowledge creation, emphasis on innovation, tangible
and administrative support for innovation

Technical Systems

Research and development systems, the sophistication of management
information systems, quality and competence of technical and
administrative staff

Administrative Heritage

Historical emphasis on knowledge creation, the values and practices of
founders and senior managers (leadership legacy and organizational
culture), the nature of organizational communication and quality of
professional interactions

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Ex. 11
-
5: Knowledge Management Effectiveness as a Product of
Strategic Consideration, Technical Systems, and Administrative
Heritage



















































Strategic
Considerations

Technical
System
s

Effectiveness of
HRM Knowledge
and Systems

Administrative
Heritage













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22

Ex. 11
-
6: Techniques for Enhancing the Creation and
Use of Organizational Knowledge

Incorporate learning on an individual and team basis as an important part of corporate
culture

Encourage systematic collection and recording of knowledge in blueprints and
manuals

Evaluate the contribution of existing knowledge to the value chain

Appoint “knowledge brokers” to foster and disseminate knowledge in various
subsidiaries

Nominate senior managers who can act as “boundary spanners” to sense and monitor
the development of new knowledge from the external environment

Encourage the formation of multi
-
functional project groups and quality circles

Create networks of professionals who can share information within the organization as
well as with relevant parties outside

Develop appropriate organizational structures and information systems

Encourage professional competence and team development

Provide rewards for creating and sharing knowledge



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Ex. 11
-
6
(contd.)

Develop routines and rules for sharing knowledge continuously

Encourage experimentation with knowledge creation and accept occasional failures as
part of the process

Provide valued resources, including uninterrupted time, for learning

Encourage job rotation leading to a breadth and depth of knowledge and experience

Provide opportunities for learning by doing

Follow examples of leading organizations in the global marketplace

Encourage learning as a primary objective during joint ventures and strategic alliances

Make effective use of consultants

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Key Terms and Concepts

Data

Information

Knowledge

Technology

Technology transfer

Tacit knowledge

Explicit knowledge

Knowledge life cycle

Strategic significance of knowledge