The MNC as a Knowledge Structure The Roles of Knowledge Sources and Organizational Instruments in MNC Knowledge Management

Recent research on the differentiated MNC has concerned knowledge flows between MNC units. While linking up with this literature, we extend in two directions. First, we argue that conceptualizing the MNC as a knowledge structure furthers the understanding of intra-MNC knowledge flows. Thus, we see MNC knowledge elements as being structured along such dimensions as their type and degree of complementarity to other knowledge elements, and their sources, for example, whether they are mainly developed from external or internal knowledge sources. These dimensions matter in terms of knowledge flows, because they influence the costs and benefits of knowledge transfer and, hence, the actual level of knowledge transferred. Second, based on this conceptualization, we argue that MNC management can influence the development, characteristics and transfer of knowledge through choices regarding organizational instruments (control, motivation and context). We test six hypotheses derived from these arguments against a unique dataset on subsidiary knowledge development. The dataset includes information on organizational instruments, sources of subsidiary knowledge, and the extent of knowledge transfer to other MNC units. It covers more than 2,000 subsidiaries located in seven different European countries.Knowledge structure, complementarity, knowledge transfer, the MNC

Discovering Strategies to Improve Business Value in Outsourcing Projects

This paper deals with the problem of leveraging client business value in a software development outsourcing relationship. We have observed software development projects from two different Dutch IT outsourcing companies and studied the approach they apply in their (successful) projects. The results show that they create a role dedicated to facilitate communication. This arrangement has the potential to put team members in a better position to communicate, facilitating the transfer of information supporting the rationale behind design decisions. Teams are thus better equipped to anticipate change and to react faster in solving everyday problems. This paper describes our observations and the practical implications we expect, such as the improvement of re-buy intention on the client's side

Advice seeking network structures and the learning organization

Organizational learning can be described as a transfer of individuals’ cognitive mental models to shared mental models. Employees, seeking the same colleagues for advice, are structurally equivalent, and the aim of the paper is to study if the concept can act as a conduit for organizational learning. It is argued that the mimicking of colleagues’ advice seeking structures will induce structural equivalence and transfer the accuracy of individuals’ cognitive mental models to shared mental models. Taking a dyadic level of analysis authors revisit a classical case and present novel data analyses.The empirical results indicate that the mimicking of advice seeking structures can alter cognitive accuracy. It is discussed the findings’ implications for organization learning theory and practice, addressed the study’s limitations, and suggested avenues for future research

A Network Perspective on Inter-Organizational Transfer of R&D Capabilities: A Study of International Joint Ventures in Chinese Automobile Industry

Multinational enterprises' transfer of R&D capabilities to their international joint ventures in the less developed countries has been an emerging phenomenon. The purpose of this study is to understand the transfer of R&D capabilities between organizations embedded in drastically different organizational contexts using a network perspective. We identified different networks involved in the R&D capability transfer process from the perspectives of source organization, recipient organization and the interface between them, and analyzed the impact of different attributes of these networks on the effectiveness of R&D capability transfer, based on the notion that R&D capabilities are largely collective knowledge.http://deepblue.lib.umich.edu/bitstream/2027.42/39746/3/wp362.pd

Internet of things security implementation using blockchain for wireless technology

Blockchain is a new security system which group many data into a block or so called classifying the data into a block. The block can have many types and each of them content data and security code. By using a decentralize mechanism, one security code protect all the data. That could happen at the server. In this research, a network of wireless sensor technology is proposed. The transmission of sensor data is via the Internet of things (Internet of Thing) technology. As many data transmitted, they have to classified and group them into a block. All the blocks are then send to the central processing unit, like a microcontroller. The block of data is then processed, identified and encrypted before send over the internet network. At the receiver, a GUI or Apps is developed to open and view the data. The Apps or GUI have an encrypted data or security code. User must key in the password before they can view the data. The password used by the end user at the Apps or GUI must be equivalent to the one encrypted at the sensor nodes. This is to satisfy the decentralized concept used in the Blockchain. To demonstrate the Blockchain technology applied to the wireless sensor network, a MATLAB Simulink function is used. The expected results should show a number of block of data in cryptography manner and chain together. The two set of data. Both have the data encrypted using hash. The black dots indicate the data has been encrypted whereas the white dot indicate indicates the data is not encrypted. The half white and half black indicates the data is in progress of encrypted. All this data should arrange in cryptography order and chain together in a vertical line. A protocol called block and chain group the data into the block and then chain then. The data appears in the blocks and send over the network. As seen in the simulation results, the yellow color represents the user data. This data has a default amplitude as 1 or 5. The data is chained and blocked to produce the Blockchain waveform Keywords: Blockchain, Internet of things, Wireless Sensor Network and MATLAB Simulin

The internationalization of family SME

Purpose – Owing to its specificities, the family small and medium enterprise (SME) shows a particular behavior as for the creation, development, sharing, protection and transmission of knowledge. The purpose of this paper is to study the specificities of the processes of knowledge creation and development in family firms. Design/methodology/approach – Through a questionnaire, hypotheses of the model were tested. The study is based on 118 firms belonging to various industries. After evaluating the reliability and validity of the items through exploratory and confirmatory factor analysis, the model was tested through structural equation modeling (LISREL). Findings – The model retained induces the following conclusions. Internationalization knowledge positively influences internationalization degree of the firm. The conservatism of family SME does not directly influence the level of internationalization knowledge. The influence of conservatism on internationalization knowledge is exerted only through the decisional dimension of independence orientation. The independence orientation of family SME, then with its two dimensions simultaneously (decisional and resource independence), does not significantly influence internationalization knowledge. Contrary to decisional independence which influences indirectly the degree of internationalization (through the intermediation of internationalization knowledge), resource independence influences directly the dependant variable. The mediation of internationalization knowledge is thus not totally proven. Social networking positively influences the amount of internationalization knowledge. Research limitations/implications – A major weakness is the absence of a synchronic approach as the dependent and independent variables are measured at the same moment. A more longitudinal approach would be valuable to analyze the causal relationships between the independent variables and internationalization knowledge and internationalization degree. A second limitation is that the characteristics of the sample may limit the generalizability of the results.Family firms, Small to medium-sized enterprises, Globalization, Learning organizations, Knowledge management

How Does Knowledge Transfer from Foreign Subsidiaries Affect Parent Companies' Innovative Capacity

The paper addresses reverse knowledge transfer (RKT) from foreign subsidiary to parent company. Specifically, it aims at investigating to what extent the effectiveness of such a transfer is influenced by: (i) the organizational mechanisms employed for transferring knowledge; (ii) the subsidiary’s role, its autonomy, and its relationships with the local context. The empirical analysis considers 162 transfers of best practices possessed by foreign subsidiaries and transferred back to their Italian parent companies. Results confirm that the impact of RKT on the parent company’s innovativeness is greater when: (i) person-based mechanisms are employed for transferring knowledge; (ii) subsidiaries are competence-creating; and (iii) knowledge developed by subsidiaries benefits from local external linkages.External linkages; organizational mechanisms; parent company's innovativeness; reverse knowledge transfer, subsidiary’s characteristics

Organizational Learning and Knowledge DevelopmentPeculiarities in Small and Medium Family Enterprises

The aim of this theoretical contribution is to analyze the processes of organizational learning and knowledge development within the small and medium sized family firm. Due to its founding characteristics, family SME seems to be a closed, hermetic and rigid organization. Besides, the specificity of mechanisms of learning and knowledge management, in general, within this entity are justified by:- First, the overlapping of "family" and "company" spheres: the family sphere realizes a unique contribution because it constitutes a supplementary source of knowledge inbound to the company compared to a firm without family involvement, - Then, the frequency of the exchanges within the organization: the processes of exchange of piece of information and knowledge take place not only in the organizational context but also and especially in the family context. The family meetings constitute, for example, supplementary occasions for exchange and sharing of knowledge.Schematically, two major characters inherent to this entity constitute obstacles to organizational learning. Indeed, conservatism and independence orientation strongly influence the processes of learning and knowledge development.The literature suggests that the family system attempts to create and maintain a cohesiveness that supports the family "paradigm" which is described as the core assumptions, beliefs, and convictions that the family holds in relation to its environment. Information that is not consistent with this paradigm is resisted or ignored (Davis, 1983). The search for security, conformism and tradition are characteristic of conservative organizations. Particularly to the family firm, the conservative posture could be studied through three dimensions (Miller and ali., 2003). First, on the governance level, the conservatism is exhibited by the plateauing and the growing rigidity of the owner-manager and by the inefficacy of the board of directors. Second, on the strategy level, conservative family SME favorites its actual markets, customers and products and globally is unwilling to change and adopt new paradigms. Then, on the organizational and cultural levels, this entity tends to be closed and introvert. These three components have an impact on knowledge development as the conservatism tends to limit the variation and the exposition to new environments. In short, within this entity the level of organizational knowledge would be weak.The second variable influencing the processes of development of knowledge within family SME is the independence orientation. This orientation is a consequence of the family long-term commitment to the business. Paradoxically, this commitment has two contradictory effects on growth. First, it implies the pursuit of future development and continuity of the firm to make sure that the family heritage is passed on to the following generations. On the other hand, commitment implies a strategy of conservation of the heritage which passes by a strong seek for the independence. Aiming to guarantee its continuity, the (small and medium-sized) family firm establishes an independence orientation of three different types. First, from the financial point of view, it avoids as much as possible turning to outside partners (Hirigoyen, 1985). Then, on the human plan, it would be favorable to the appointment of family members or individuals belonging to the close relational circle to the posts of direction and would be reluctant to the recruitment of professional directors. Finally, to maintain the decision-making in hands of the family, the family firm tends to avoid the inter-organizational relations, cooperative investments, and tries to limit the sharing of the control of its investments. The contribution of outsiders (financiers, directors or partner organizations) can, however, be precious to the company. And the introversion would be a major obstacle to the perpetuity of the firm because it inhibits growth. As a consequence, independence orientation limits the accumulation of knowledge because, on one hand, the horizons of the company will be limited and little varied, and on the other hand, the potential valuable knowledge contribution of outsiders is excluded.The study of these variables raises questions about the efficacy of the organizational memory within the family firm. This organization runs particular risks because of the peculiarity of its knowledge management mechanisms. Because of its founding natural characteristics, the family firm nurtures mechanisms which reinforce the causal ambiguity (Nelson and Winter, 1982) by strengthening the voluntary effort to avoid either a too fast imitation or the loss of knowledge-based resources if the individual or the group holding it leaves the organization (Arrégle, 1995). In short, family firms show an inclination to concentrate the processes of knowledge management around its tacit dimension by encouraging its formation contrarily to the explicit component. However the weak externalization of knowledge coupled with the avoidance of sharing outside the family causes serious risks. First, an obvious risk of deterioration is present because of the weak importance of the organizational protection mechanisms and the strong reliance on individual memory. Moreover, we suggest a risk of erosion of knowledge due to the fragmentation caused by successions that do not preserve the unity of the firm. There is risk of "fragmentation" of the strategic knowledge if the company is shared between the potential successors. This risk would be less pronounced if a prior sharing of knowledge with outside directors had been engaged.Another particularity of family firms is about the intergenerational transmission and transfer of knowledge (Cabrera-Suarez and ali., 2001). Mechanisms inciting to intergenerational transfer of knowledge must be set up because of the negative impact of conservatism and independence on organizational knowledge and due to the fragility of family firm organizational memory.Organizational knowledge, family business, conservatism, independence orientation

THE EFFECTS OF COMMUNITIES OF PRACTICE ON THE SUCCESS OF AN EXPERT RECOMMENDING SERVICE

This article presents an explorative study of the impact of Communities of Practice (CoPs) on the success of a certain category of Knowledge Management Systems, hereafter called Expert Recommender Information Systems. They regroup Information Systems that identify and display individuals who have been qualified by the system as experts, and who are in a position to help users solve problems involving a business process breakdown. Rather than focusing on the Expert Recommending Information System itself, the author concentrates on the service it delivers, the Expert Recommending Service (ERS). Using multiple case study research, five different organizations were investigated, essentially in order to identify how CoPs influence the success of their ERS.IS success; Communities of Practice; Expert Recommending Services; Experts