IDEAS home Printed from https://ideas.repec.org/a/inm/ororsc/v13y2002i3p274-289.html
   My bibliography  Save this article

Knowledge as a Contingency Variable: Do the Characteristics of Knowledge Predict Organization Structure?

Author

Listed:
  • Julian Birkinshaw

    (London Business School, Sussex Place, Regents Park, London, United Kingdom NW1 4SA)

  • Robert Nobel

    (Stockholm School of Economics, P.O. Box 6501, 5113-83, Stockholm, Sweden)

  • Jonas Ridderstråle

    (Stockholm School of Economics, P.O. Box 6501, 5113-83, Stockholm, Sweden)

Abstract

This paper examines the validity of knowledge as a contingency variable. Building on recent advances in thinking about the dimensions of knowledge assets (Winter 1987, Zander and Kogut 1995), we argue that such dimensions might have an important influence on organization structure. More specifically, we focus on two dimensions of knowledge—observability and system embeddedness—and their influence over the level of unit autonomy and interunit integration in an international network of R&D units. Statistical analysis of questionnaire responses from 110 R&D unit managers show strong association between the dimensions of knowledge and organization structure. It also indicates partial support for the “fit” hypothesis in contingency theory.The paper makes two important contributions to the knowledge management literature. First, we find support for the contingency logic, suggesting that effective organization design has to take into account the underlying characteristics of the firm's knowledge base. Second, we shed light on a relatively neglected dimension of knowledge that we call system embeddedness . This is the extent to which knowledge is a function of the social and physical system in which it exists. In the statistical analysis it emerges as a strong predictor of organization structure. Moreover, it also appears to be conceptually distinct from the tacit-articulate dimension that is normally emphasized. This allows us to speculate on four generic forms that a firm's knowledge might take, that we label integrated, isolated, opaque, and transparent. These are discussed using examples from the data.

Suggested Citation

  • Julian Birkinshaw & Robert Nobel & Jonas Ridderstråle, 2002. "Knowledge as a Contingency Variable: Do the Characteristics of Knowledge Predict Organization Structure?," Organization Science, INFORMS, vol. 13(3), pages 274-289, June.
    • Handle: RePEc:inm:ororsc:v:13:y:2002:i:3:p:274-289
    DOI: 10.1287/orsc.13.3.274.2778
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/orsc.13.3.274.2778
    Download Restriction: no
    File URL: https://libkey.io/10.1287/orsc.13.3.274.2778?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bruce Kogut & Udo Zander, 1992. "Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology," Organization Science, INFORMS, vol. 3(3), pages 383-397, August.
    2. Sumantra Ghoshal & Nitin Nohria, 1989. "Internal differentiation within multinational corporations," Strategic Management Journal, Wiley Blackwell, vol. 10(4), pages 323-337, July.
    3. Marcie J. Tyre & Eric von Hippel, 1997. "The Situated Nature of Adaptive Learning in Organizations," Organization Science, INFORMS, vol. 8(1), pages 71-83, February.
    4. Hakanson, Lars & Nobel, Robert, 1993. "Determinants of foreign R&D in Swedish multinationals," Research Policy, Elsevier, vol. 22(5-6), pages 397-411, November.
    5. Bruce Kogut & Udo Zander, 1993. "Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(4), pages 625-645, December.
    6. Eric von Hippel, 1994. ""Sticky Information" and the Locus of Problem Solving: Implications for Innovation," Management Science, INFORMS, vol. 40(4), pages 429-439, April.
    7. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 411-432, September.
    8. Bruce Kogut, 1991. "Country capabilities and the permeability of borders," Strategic Management Journal, Wiley Blackwell, vol. 12(S1), pages 33-47, June.
    9. Robert A. Burgelman, 1991. "Intraorganizational Ecology of Strategy Making and Organizational Adaptation: Theory and Field Research," Organization Science, INFORMS, vol. 2(3), pages 239-262, August.
    10. Helmy H. Baligh & Richard M. Burton & Børge Obel, 1996. "Organizational Consultant: Creating a Useable Theory for Organizational Design," Management Science, INFORMS, vol. 42(12), pages 1648-1662, December.
    11. George P. Huber, 1991. "Organizational Learning: The Contributing Processes and the Literatures," Organization Science, INFORMS, vol. 2(1), pages 88-115, February.
    12. D. Charles Galunic & Kathleen M. Eisenhardt, 1996. "The Evolution of Intracorporate Domains: Divisional Charter Losses in High-Technology, Multidivisional Corporations," Organization Science, INFORMS, vol. 7(3), pages 255-282, June.
    13. Udo Zander & Bruce Kogut, 1995. "Knowledge and the Speed of the Transfer and Imitation of Organizational Capabilities: An Empirical Test," Organization Science, INFORMS, vol. 6(1), pages 76-92, February.
    14. John Seely Brown & Paul Duguid, 1991. "Organizational Learning and Communities-of-Practice: Toward a Unified View of Working, Learning, and Innovation," Organization Science, INFORMS, vol. 2(1), pages 40-57, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Martin Schulz, 2003. "Pathways of Relevance: Exploring Inflows of Knowledge into Subunits of Multinational Corporations," Organization Science, INFORMS, vol. 14(4), pages 440-459, August.
    2. Pak, Yong Suhk & Ra, Wonchan & Lee, Jong Min, 2015. "An integrated multi-stage model of knowledge management in international joint ventures: Identifying a trigger for knowledge exploration and knowledge harvest," Journal of World Business, Elsevier, vol. 50(1), pages 180-191.
    3. Dellestrand, Henrik & Kappen, Philip, 2011. "Headquarters Allocation of Resources to Innovation Transfer Projects within the Multinational Enterprise," Journal of International Management, Elsevier, vol. 17(4), pages 263-277.
    4. Daniel Z. Levin & Rob Cross, 2004. "The Strength of Weak Ties You Can Trust: The Mediating Role of Trust in Effective Knowledge Transfer," Management Science, INFORMS, vol. 50(11), pages 1477-1490, November.
    5. Thomas Hutzschenreuter & Tanja Matt, 2017. "MNE internationalization patterns, the roles of knowledge stocks, and the portfolio of MNE subsidiaries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(9), pages 1131-1150, December.
    6. Jerker Denrell & Niklas Arvidsson & Udo Zander, 2004. "Managing Knowledge in the Dark: An Empirical Study of the Reliability of Capability Evaluations," Management Science, INFORMS, vol. 50(11), pages 1491-1503, November.
    7. Samina Karim & Aseem Kaul, 2015. "Structural Recombination and Innovation: Unlocking Intraorganizational Knowledge Synergy Through Structural Change," Organization Science, INFORMS, vol. 26(2), pages 439-455, April.
    8. Schmid, Stefan & Schurig, Andreas, 2003. "The development of critical capabilities in foreign subsidiaries: disentangling the role of the subsidiary's business network," International Business Review, Elsevier, vol. 12(6), pages 755-782, December.
    9. Da Mota de Pina E Cunha, A.M., 1998. "Determinants of Product Innovation in Organizations : Practices and Performance in the Portugese Financial Sector," Other publications TiSEM e6e4e56e-b72a-4392-8d79-f, Tilburg University, School of Economics and Management.
    10. Rickley, Marketa & Karim, Samina, 2018. "Managing institutional distance: Examining how firm-specific advantages impact foreign subsidiary CEO staffing," Journal of World Business, Elsevier, vol. 53(5), pages 740-751.
    11. Joshua K Ault & Aloysius Newenham-Kahindi & Sanjay Patnaik, 2021. "Trevino and Doh’s discourse-based view: Do we need a new theory of internationalization?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(7), pages 1394-1406, September.
    12. Kappen, Philip, 2011. "Competence-creating overlaps and subsidiary technological evolution in the multinational corporation," Research Policy, Elsevier, vol. 40(5), pages 673-686, June.
    13. Maria Adenfelt & Katarina Lagerström, 2008. "The development and sharing of knowledge by Centres of Excellence and transnational teams: A conceptual framework," Management International Review, Springer, vol. 48(3), pages 319-338, May.
    14. Beth A. Bechky, 2003. "Sharing Meaning Across Occupational Communities: The Transformation of Understanding on a Production Floor," Organization Science, INFORMS, vol. 14(3), pages 312-330, June.
    15. Wanda J. Orlikowski, 2002. "Knowing in Practice: Enacting a Collective Capability in Distributed Organizing," Organization Science, INFORMS, vol. 13(3), pages 249-273, June.
    16. Thomas Hutzschenreuter & Ingo Kleindienst & Christina Guenther & Martin Hammes, 2016. "Speed of Internationalization of New Business Units: The Impact of Direct and Indirect Learning," Management International Review, Springer, vol. 56(6), pages 849-878, December.
    17. Michailova, Snejina & Zhan, Wu, 2015. "Dynamic capabilities and innovation in MNC subsidiaries," Journal of World Business, Elsevier, vol. 50(3), pages 576-583.
    18. Ambos, Björn & Schlegelmilch, Bodo B., 2004. "The use of international R&D teams: an empirical investigation of selected contingency factors," Journal of World Business, Elsevier, vol. 39(1), pages 37-48, February.
    19. Malik, Tariq H., 2013. "National institutional differences and cross-border university–industry knowledge transfer," Research Policy, Elsevier, vol. 42(3), pages 776-787.
    20. Augustine A. Lado & George S. Vozikis, 1997. "Transfer of Technology to Promote Entrepreneurship in Developing Countries: An Integration and Proposed Framework," Entrepreneurship Theory and Practice, , vol. 21(2), pages 55-72, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ororsc:v:13:y:2002:i:3:p:274-289. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.