Knowledge Management Most Cited (1-3). Prepared by: Francisco J. Gonzalez Jr. March 19, 2007 MIS 580. Overview. Firm Resources and Sustained Competitive Advantage Jay Barney Published: March 1991 The eleven deadliest sins of knowledge Management Liam Fahey, Laurence Prusak
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Knowledge Management Most Cited (1-3)
Prepared by: Francisco J. Gonzalez Jr.
March 19, 2007
Firm Resources and Sustained Competitive Advantage
Resource Based Model
Environmental Models of Competitive Advantage
A firm’s formal reporting structure, its formal and informal planning, controlling, and coordinating systems, as well as informal relations among groups within a firm and between the firm and those in its environment
The physical technology used in a firm, a firm’s plant and equipment, its geographic location, and its access to raw materials.
The training, experience, judgment, intelligence, relationships, and insight of individual managers and workers in a firm.
Sustained Competitive Advantage
A firm is said to have a sustained competitive advantage when it is implementing a value creating strategy not simultaneously being implemented by any current or potential competitors andwhen these other firms are unable to duplicate the benefits of this strategy
A firm is said to have a competitive advantage when it is implementing a value creating strategy not simultaneously being implemented by any current or potential competitors.
To have potential of Sustained Competitive Advantage:
Resources are valuable when they enable a firm to conceive of or implement strategies that improve its efficiency and effectiveness. Attributes become resources only when they can exploit opportunities and neutralize threats in a firm’s environment.
There must be no strategically equivalent valuable resources that are themselves either not rare or imitable.
If a valuable firm resource is possessed by many firms, then each of these firms can exploit this resource, thereby implementing a common strategy that gives no one firm a competitive advantage. This, implicitly, means that the resource is not rare.
History Dependent Casual Ambiguity Social Complexity
Firm Resource Heterogeneity
Firm Resource Immobility
If formal is a substitute for informal -> not a source of SCA
If formal is not a substitute for informal -> may be a source of SCA
The Eleven Deadliest Sins of Knowledge Management
1: Not developing a working definition of knowledge
2: Emphasizing knowledge stock to the detriment of knowledge flow
3: Viewing knowledge as existing predominantly outside the heads of individuals
4: Not understanding that a fundamental intermediate purpose of managing knowledge is to create shared context
5: Paying little attention to the role and importance of tacit knowledge
6: Disentangling knowledge from its uses
7: Downplaying thinking and reasoning
8: Focusing on the past and the present and not the future
9: Failing to recognize the importance of experimentation
10: Substituting technological contact for human interface
11: Seeking to develop direct measures of knowledge
Capture Store Retrieve Transmit
Three actions to avoid the errors:
I. Continuously reflect on knowledge as organizational phenomenon
II. Managers must be obsessive about noting and correcting errors in their stock of knowledge
III. Managers must be vigilant about detecting errors in their the generating, moving, and leveraging of knowledge throughout the firm.
An organization must engage in critical, sustained, and honest self-reflection about the errors noted in this article. By doing this, it can avoid the pitfalls that are evident in the approaches of many organizations’ attempts to work with knowledge.
What’s Your Strategy For Managing Knowledge?
Knowledge is the core asset of consultancies
First to pay attention to and invest in KM
Aggressively explore use of IT to capture and disseminate knowledge
Experience relevant to companies that depend on smart people and flow of ideas
However, consultants do not take uniform approaches to managing knowledge
Assuming the answers to these questions are clear, ask the following questions:
Questions and Comments?