Organization Theories in the Making by Rouleau Linda;

Author:Rouleau, Linda; [Linda Rouleau]
Language: eng
Format: epub
Publisher: Oxford University Press, Incorporated
Published: 2022-08-19T16:25:03+00:00

Figure 5.2 Dynamic capabilities*

*Adapted from Teece, 2007, p. 1342.

‘Seizing’ opportunities, the second micro-foundation of dynamic capabilities of the Teece (2007) framework, corresponds to knowledge ‘integration’ and ‘utilization’ in the Eriksson (2014) framework. To consolidate the renewal capability initiated by knowledge accumulation, firms use a variety of ways to integrate and embed new knowledge coming from external and internal sources. Also, Salunke, Weerawardena, and McColl-Kennedy (2019) put forth the notion of ‘knowledge integration capabilities’, which refer to the firm’s capacity to synthesize and apply current and acquired knowledge with the aim of reinforcing its competitive advantage. Following interviews with senior managers from project-oriented service firms, the authors suggest that knowledge integration capabilities are strongly driven by entrepreneurial behaviours and client-focused tools. Furthermore, the authors mention that to reach optimal innovation performance in this type of firm, it is important to balance knowledge acquisition coming from external and internal sources.

Knowledge ‘utilization’—according to Eriksson (2014)—brings us back to knowledge sharing and the conversion between tacit and explicit knowledge, as discussed in Section 5.2. According to RBV and dynamic capabilities, organizational knowledge grows the more it is used or elaborated (as opposed to other resources, which tend to get depleted with use). As such, to get the full benefits of organizational knowledge, managers must stimulate the use of knowledge and knowledge sharing. Drawing on a governance approach, Andersson, Buckley, and Dellestrand (2015) studied 169 innovation projects in multinational contexts and looked at knowledge transfer effectiveness (i.e. the use and adoption of knowledge). The results of their study suggest that ‘hierarchical and formal governance tools are not positively related to transfer effectiveness, but that lateral relationships affect transfer effectiveness positively’ (Andersson et al., 2015, p. 41). Put differently, headquarters have very little influence on the knowledge used by their subsidiaries, while knowledge transfer between subsidiaries happens to be much more beneficial for multinationals.

The knowledge ‘reconfiguration’ process, or ‘reconfiguring’ in the Teece (2007) framework, involves ‘generating new combinations of existing knowledge or leveraging existing knowledge for new purposes or in new ways’ (Eriksson, 2014, p. 71). Mention, Barlatier, and Josserand (2019) piloted a special issue in Technological Forecasting and Social Change about social media and innovation. Social media are more and more used by firms not only to communicate with a wide range of stakeholders but also for the purpose of enhancing innovation capabilities and generating new knowledge. According to the authors, the papers published in this special issue all show how firms recombine, or ‘reconfigure’, their dynamic capabilities by engaging in multiple knowledge sources and empowering internal human resources towards an open and collaborative culture.

As opposed to the knowledge management stream, where individuals are the holders of knowledge, the economic stream of research assumes knowledge resides in organizations and appears to be an essential asset endowed with economic value key to building firms’ competitive advantage. As knowledge is embodied in organization systems and in the goods and services produced and sold by organizations, existing research essentially considers it as an independent variable influencing firms’ performance. Hence, knowledge can be objectified through proxies and measures.

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