Managing Knowledge Diversity in Distributed Organizational Structures

Knowledge in organizations can be compared with human memory. There is no unique place for creating and conserving knowledge. Knowledge in Multinationals realize it’s potential with various tools of management. The diversity of tools leads to the issue of coordinating levels of management. How managing different tools of KM without disrupting the knowledge creating process? To address this issue we analyses several knowledge management strategies of high technologies industries (computer, telecommunications and pharmacy). In these cases diversity encourages implementation of knowledge management tools. The precision of these tools indicates the firm’s competence in managing and diffusing knowledge. An important conclusion that can be drawn is that several factors (redundancy, diversity, discussion and duration) can reinforce these competences and, in fact: network mechanisms in organization.

Developing a Standardization Best Practice by Cooperation Between Multinationals

This Chapter presents a case of knowledge sharing between multinational companies. The companies cooperated to develop a common best practice for the development of company standards through sharing their practices. The Chapter describes how this best practice was developed and tested. Experiences in this successful project may help other multinationals to also profit from knowledge sharing. Critical success factors are the willingness to be open, the culture of cooperation and the involvement of academia.

Global Knowledge Management Technology Strategies and Competitive Functionality

Information and knowledge management technologies and globalization have changed how firms in service industries formulate, implement and sustain competitive advantage. This research project contributes to our understanding of the relationships between Global Knowledge Management Technology Strategies and Competitive Functionality from Global IT. Based on field research this study found that Global Knowledge Management Technology strategies have a positive impact on Competitive Advantage from Information Technology Applications Functionality from Global IT. This study provides recommendations to International Engineering, Procurement and Construction Industry executives regarding the impact of knowledge management strategies and global information technology on competitive advantage of firms in their industry.

KM Technologies and the Organizational LOE

The potential benefits of utilizing KM technologies in multinational and global organizations are of particular significance due to the inherent geographic distance and diversity of such organizations. Unfortunately, the process of constantly changing technology can be extremely disruptive at both the individual and organizational level. This chapter explores the relationship between KM technology change within the organization and the theory of an organizational loss of effectiveness (LOE). “The general Theory of Organizational Loss of Effectiveness is predicated upon organizational behavior resulting from a loss of stability, e.g. technology change, within an organization.” (Grady, 2005) The loss of stability, in the context of this theory, occurs when a defined set of symptoms develop in individuals and groups undergoing a change in technology. The assertion is that the development of these symptoms is predictable, and when viewed collectively, results in an organizational loss of effectiveness.

KAFRA

Multiple case studies in India, The Gambia, and Nigeria are the background for an empirically grounded framework of knowledge management (KM). Cultural diversity and gaps in the provision of infrastructure make managing knowledge challenging but necessary in developing countries. These cultural and infrastructural issues are also related to governmental, educational, political, social, and economic factors. These environmental factors interact with organizational variables and information technology to enable or constrain knowledge management processes in the creation and protection of knowledge resources. The framework can help organizations to prepare their KM projects, to reveal problems during the project, and to assess its outcomes.

The Building of Intellectual Capital Statements in Multinationals

Multinational companies (MCNs) are facing important challenges within the current economic context. Rapid technological changes, the globalization of the economy, the existence of increasingly demanding consumers are, among other factors, the origin of the difficulties involved in achieving and sustaining a competitive advantage in the long-term. One of the keys for overcoming these difficulties is to manage knowledge-based resources appropriately. However, in order to be able to manage these resources, the multinationals need to know, with complete transparency, just what these resources are, and this is achieved by quantifying them. The quantification of knowledge-based resources and the preparation of intellectual capital statements represent two strategic challenges for the MNCs.

Technology Trends in Knowledge Management Tools

A large number of tools are available in the software industry to support different aspects of knowledge management (KM). Some comprehensive applications and vendors try to offer global solutions to KM needs; other tools are highly specialized. In this paper, state-of-the-art KM tools grouped by specific classification areas and functionalities are described. Trends and integration efforts are detailed with a focus on identifying current and future software and market evolution.

Architecting Knowledge Management Systems

Organizations need well architected systems for Knowledge Management (KM). This chapter begins with a review of approaches adopted by organizations for developing KM solutions. It defines a set of components that can form the building blocks for developing a Knowledge Management system. The relevance of the principles of Service Oriented Architecture (SOA) to KM solutions is explained. It presents the architecture of a generic Knowledge Management system based on the components defined and the principles of SOA. It then discusses the patterns for implementing the architecture followed by maturity levels of Knowledge Management systems.

Knowledge Creation in Commitment-Based Value Networks in Multinational Organizations

The digital networked economy has gone global and is reshaping traditional business models. “Free” and “open source” software (Raymond, 1999) along with more recent successes in the private, public and social sectors offer a vision of a radically new globally networked economy. This economy is characterized by new sources of value creation and competition as barriers to entry are lowered and substitution made easier. It also requires a more stratified, localized approach to the marketplace (Hart and Milstein, 2003) to meet more specialized demands from customers and the societies and environments within which they live. These challenges have implications for almost every aspect of a firm’s strategy and business model, especially its ability to leverage these networks to create value through innovation. Yet, most multinational firms are ill – equipped to take advantage of the knowledge creation derived from high value relationships with suppliers, complementors and customers. This chapter shows the importance of developing a corporate strategy which takes into account ways in which an innovation focus must integrate with installed business processes. This chapter considers the challenges associated with knowledge disclosure, diffusion and utilization (Snowdon, 2002; Spinosa, Flores and Dreyfus, 2001) across value networks and concludes that while successful examples exist in “Free” and “open source” software projects (Raymond, 1999) commercialization of innovation becomes more challenging when increasing levels of personal and financial commitment are required (Mauer, Rai and Sali, 2004). Choosing the most appropriate value networking strategy can have serious implications for success. This chapter adds to studies on knowledge creation and knowledge transfer in multinational corporations by proposing a conceptual model of commitment based value networking strategy. It is hoped this will contribute to future research by offering a theoretical foundation upon which this research may be based and explains why and under what conditions people in commitment based value networks share knowledge.

HRM Practices and Knowledge Transfer in Multinational Companies

This chapter introduces HRM practices that help MNCs to overcome knowledge transfer barriers (knowledge-driven HRM practices). It argues that MNCs can institute various HRM practices that impact knowledge transfer barriers associated with behavior of knowledge senders and receivers. HRM practices relevant for absorptive capacity of subsidiary employees form two groups – cognitive (job analysis, recruitment, selection, international rotation, career management, training and performance appraisal) and stimulative (promotion, performance-based compensation, internal transfer, orientation programs, job design and flexible working practices). The application of cognitive HRM practices enhances the ability of knowledge receivers to absorb transferred knowledge, while the use of stimulative HRM practices increases their motivation. Temporary and permanent types of international assignments respectively influence the ability and motivation of expatriate managers to share their knowledge.