Organizational learning and technology development
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ORGANIZATIONAL LEARNING AND TECHNOLOGY
DEVELOPMENT
Mahan SepehrifarAmir Hossein Semsarzadeh
Amin Dehdarian
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Purpose
A model of organizational learning A model of crisis construction
Why Hyundai??? Leader automaker on its own despite the global
shakeout Increasing production more tan tenfold every
decade Largest automobile producer in a developing
country
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Research Questions
1. How to move from imitative ”learning by doing” to innovative “learning by research”?
2. Difference between learning in catching-up process in a developing country and a developed one?
3. Crisis construction is useful for OL?
4. Can these models be imitated?
5. Any implications?
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Organizational learning
CreationDistribution & Communicatio
n
Integration into strategy
& management
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Source: Crossan (1995)
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Source: Daniel Kim (1993)
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Absorptive Capacity
Ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends (Cohen & Levinthal . 1990)
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Source: Cohen & Levinthal (1990)
R&D Spending
Absorptive Capacity
Technological Opportunity
AppropriabilityCompetitor
Interdependence
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Sources of a Firm’s Technical Knowledge
Source: Cohen & Levinthal (1990)
Own R&DTechnical
Knowledge
Absorptive Capacity
Spillovers of Competitors Knowledge
Extraindustry Knowledge
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Knowledge & Learning
Anderson’s ACT model Ryle’s classifications Polanyi
Declarative knowledge
Knowing that sth. “Exists” Tacit
Procedural knowledge Knowing “How” it operates Explicit
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Modes of knowledge creation (conversion)
Socialization Externalization
Internalization Combination
Tacit knowledge
Taci
t know
ledge
Explicit knowledge
Explic
it
know
ledge
To
From
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Spiral of Organizational Knowledge creation
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Learning Systems
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Source: Nonaka (1994)
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Crisis & Learning
Need to tacit & explicit knowledge Elevating the level of ACAP External or internal
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Catching-up in Hyundai
Pre-crisis era Agreement with Ford Transferring packaged technology Training of Hyundai engineers
Results: Translating explicit knowledge to tacit knowledge Valuable migratory knowledge Higher prior knowledge level
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Catching-up in Hyundai
Phase 1 (Internal crisis in the absence of external crisis) Complete plant construction in shortest time Acquire a production capability in shortest time (For
production members)
Prior knowledge base Intense interaction among the members Reassembling cars for routinization
Intensity of effort 16 hours a day, seven days a week
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Catching-up in Hyundai
Phase 2 Shift from assembly production to development of locally
designed cars (By government) Assimilating the imported foreign technology ASAP
Prior Knowledge base Studying all related literature Licensing agreements with Italdesign & Mitsubihi Approaching 26 firms to receive unpackaged sources Hiring a manager to put knowledge together
Intensity of effort Intensive interaction among members (in Italy)
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Catching-up in Hyundai
Phase 3: Translating external crisis to internal Oil crisis Developing next generation FF car and tripling production
Prior knowledge base Approaching Mitsubishi for licenses Studying about CAM/CAD Studying Catia package for expanding knowledge
Intensity of effort 14 months for internalizing literature 36 months of hard preparatory work
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Catching-up in Hyundai
Phase 4: Internal Crisis Becoming independent Developing a state-of-the-art engine
Prior knowledge base Opening R&D centers and doing research Recruiting Korean-American engineers from US Collecting all English & Japanese literature Agreement with British Ricardo Engineering for technical training
Intensity of effort Dividing taskforce to do research 14 months of trial & error before first prototype and 11 broken ones!
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ussion
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A Model of Absorptive Capacity
Source: Zahra & George (2002)
Knowledge source and
complementarity
Experience
Competitive Advantage
Strategic FlexibilityInnovation
Performance
Social Integratio
n Mechanis
m
Regimes of Appropriabili
ty
Absorptive Capacity
Activation Triggers
Potential Realized
Acquisition
Assimilation
Transformation
Exploitation
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Implications
1. Catching-up firms in developing countries reverse the sequence of R,D,E of advanced countries
2. Migratory knowledge that is available for catching-up firms, gives rise to prior knowledge base
3. Crises were constructed proactively rather than reactively
4. Past successes in transforming crises into creative learning evoke the self-confidence that leads to further risk-taking by crisis construction
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Discussion
Can Hyundai also use crisis construction for pioneering?
Can catching-up firms in other countries emulate Hyundai’s learning model?
What are the benefits and risks of internal crisis against external ones?
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