Knowledge Transfer Barriers Quiz

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Questions and Answers

What is a significant barrier to knowledge transfer related to the source?

  • Absorptive Capacity
  • Fear of losing competitive advantage (correct)
  • Barren Organizational Context
  • Integration

Absorptive capacity refers to a recipient's ability to forget old knowledge.

False (B)

What are the four stages of knowledge transfer?

Initiation, Implementation, Ramp-up, Integration

The lack of support systems for knowledge transfer is termed a _____ organizational context.

<p>barren</p> Signup and view all the answers

Match the company with its knowledge transfer outcome:

<p>Xerox = Successful knowledge transfer General Motors = Challenging knowledge transfer</p> Signup and view all the answers

Which of the following best describes 'Retentive Capacity'?

<p>The ability to institutionalize transferred knowledge. (D)</p> Signup and view all the answers

Incentivizing knowledge-sharing is sufficient for effective knowledge transfer.

<p>False (B)</p> Signup and view all the answers

Based on empirical findings, which two knowledge-related barriers were more significant than motivational factors?

<p>Causal ambiguity and absorptive capacity</p> Signup and view all the answers

What does the Resource-Based View (RBV) framework primarily focus on?

<p>Unique resources driving performance (D)</p> Signup and view all the answers

Tangible resources include intangible assets like brand equity.

<p>False (B)</p> Signup and view all the answers

Name one characteristic of strategically valuable resources.

<p>Inimitable, Durable, Non-Substitutable, Controlled, or Superior.</p> Signup and view all the answers

Companies must _____ their resources to maintain competitive advantage.

<p>upgrade</p> Signup and view all the answers

Match the following types of resources with their descriptions:

<p>Tangible = Physical assets such as equipment Intangible = Brand equity and customer relationships Capabilities = Embedded routines and processes</p> Signup and view all the answers

Which factor is NOT associated with R&D investment levels?

<p>Employee turnover rates (D)</p> Signup and view all the answers

Collaborating in R&D is important despite knowledge spillovers.

<p>True (A)</p> Signup and view all the answers

What can be a result of leveraging resources across markets?

<p>Unlocking value or competitive advantage.</p> Signup and view all the answers

Which strategy do successful organizations focus on simultaneously?

<p>Both growth and profit (D)</p> Signup and view all the answers

A paradox perspective allows organizations to embrace conflicting demands simultaneously.

<p>True (A)</p> Signup and view all the answers

What is the term used to describe strategic initiatives emerging outside the scope of the current strategy?

<p>Exploration</p> Signup and view all the answers

The ____ theory suggests that organizational systems are more effective when they achieve alignment among internal elements.

<p>contingency</p> Signup and view all the answers

Match the following concepts with their descriptions:

<p>Exploration = Strategic initiatives outside current strategy Exploitation = Utilizing existing resources and capabilities Paradox perspective = Managing conflicting demands simultaneously Contingency theory = Aligning organizational systems with the environment</p> Signup and view all the answers

What is the best option for market capitalization growth according to GROFIT?

<p>From -14 to 23 (B)</p> Signup and view all the answers

Successful organizations should focus on either profits or growth, but not both.

<p>False (B)</p> Signup and view all the answers

Name one company mentioned that illustrates the success of combining customer satisfaction and profitability.

<p>Coolblue</p> Signup and view all the answers

What is the primary aim of exploitation in a business strategy?

<p>Maximizing short-term profits (D)</p> Signup and view all the answers

Exploration and exploitation require similar organizational structures and competences.

<p>False (B)</p> Signup and view all the answers

What is the result of organizations becoming trapped in the success or competence trap?

<p>Long-term obsolescence</p> Signup and view all the answers

Ambidextrous organizations are associated with up to ____ times higher performance levels.

<p>nine</p> Signup and view all the answers

Match the strategic focuses with their descriptions:

<p>Exploration = Entering new product-market domains Exploitation = Maximizing short-term profits Success trap = Short-term benefits leading to long-term issues Failure trap = High cost of experimenting without benefits</p> Signup and view all the answers

Which of the following best describes organizational ambidexterity?

<p>Managing both exploratory and exploitative efforts (A)</p> Signup and view all the answers

The balance between exploration and exploitation is considered secondary to organizational performance.

<p>False (B)</p> Signup and view all the answers

What trap results from an overemphasis on exploration?

<p>Failure trap</p> Signup and view all the answers

What is essential for long-term success of platforms beyond user growth?

<p>Adapting to new opportunities and challenges (A)</p> Signup and view all the answers

Micro-level actions are not significant for platform success compared to macro factors.

<p>False (B)</p> Signup and view all the answers

What do decision-making heuristics help leaders in platforms do?

<p>Manage scaling and react effectively to changes</p> Signup and view all the answers

LEGO identifies itself as a company that spurs __________ and imagination.

<p>creativity</p> Signup and view all the answers

Which of the following is NOT an implication mentioned for platform growth?

<p>Focus solely on increasing user numbers (C)</p> Signup and view all the answers

Match the following companies or concepts with their descriptions:

<p>LEGO = Company that encourages creativity Shell = Company struggling to redefine its core identity TMT = Top Management Team Data Network Effects = Using data to enhance user experiences</p> Signup and view all the answers

A company can maintain its original identity while innovating.

<p>False (B)</p> Signup and view all the answers

What factor related to TMTs can affect innovation adoption?

<p>Framing of innovations</p> Signup and view all the answers

What is a key component of the essence of international operations?

<p>Expansion of managerial control through governance and structure (A)</p> Signup and view all the answers

The simultaneous exploitation of existing advantages and exploration for future advantages is a defining characteristic of multinational enterprises (MNEs).

<p>True (A)</p> Signup and view all the answers

What type of mindset is essential for effective international operations?

<p>global managerial mindset</p> Signup and view all the answers

MNEs must accommodate their natural disadvantage, the cost of managing _____ operations.

<p>far-flung</p> Signup and view all the answers

Match the following managerial factors with their effects on international success:

<p>TMT composition = Comfortable on the world stage Global disposition = Integrated strategies that are hard to duplicate Knowledge and innovation = Global imperative Lean organization = Close to customers</p> Signup and view all the answers

Why is a global strategy considered unavoidable?

<p>It maximizes synergies across its stakeholder base. (B)</p> Signup and view all the answers

Aggressive investment is not necessary for the implementation of integrated strategies in international business.

<p>False (B)</p> Signup and view all the answers

What is created through the development of distinctive MNE competences?

<p>mobile intangible assets</p> Signup and view all the answers

Flashcards

Knowledge Transfer Barriers

Obstacles that prevent the effective movement of knowledge within an organization.

Absorptive Capacity

The recipient's capability to understand and apply new knowledge.

Retentive Capacity

The ability to integrate transferred knowledge into usual procedures.

Knowledge Transfer Stages

Step-by-step process for transferring knowledge: Initiation, Implementation, Ramp-up, and Integration

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Knowledge-related Barriers

Issues related to the knowledge itself, such as ambiguity in knowledge or absorptive capacity.

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Organizational Context Barriers

Difficulties caused by the organizational environment or relationships within the company that affect knowledge sharing.

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Xerox Example (Knowledge Transfer)

An organization that used internal benchmarking for knowledge transfer, highlighting effective knowledge gaps identification.

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General Motors (Knowledge Transfer Challenge)

An example where transferring manufacturing knowledge across divisions faced obstacles due to context and relationships.

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R&D Investment

The amount of money a company spends on research and development.

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Resource-Based View (RBV)

A strategic management framework focusing on a company's internal resources and capabilities to achieve competitive advantage.

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Inimitable Resource

A unique resource that's difficult to copy by competitors.

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Tangible Resource

A physical asset that contributes to a company's success.

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Intangible Resource

A non-physical asset that contributes to a company's success like brand recognition.

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Competitive Advantage

A company's ability to outperform its competitors through unique resources and capabilities.

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Continuous Investment

Investing regularly to improve and update resources.

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GROFIT

A framework representing a company's performance based on growth and profit, with potential paths focused on revenue growth, profit maximization, or a combination of both.

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Contingency Perspective

An approach that emphasizes adapting organizational systems to align with internal elements and external environments, emphasizing flexibility and fit.

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Paradox Perspective

A perspective acknowledging that successful organizations often embrace and manage seemingly contradictory demands, such as growth and profit, simultaneously.

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Underlying Tensions

Elements within a paradox that appear logical individually but create contradictions or absurdity when considered together.

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Exploration vs. Exploitation

Two contrasting strategies used by companies to manage innovation and growth, with exploration focused on new ideas and exploitation maximizing existing strengths.

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Coolblue Paradox

An example of a company embracing the paradox of customer satisfaction and profitability, by ensuring both are prioritized simultaneously.

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Transitions and Incumbents

Organizational shifts to navigate change, requiring incumbents to adapt their processes, structures, and leadership to accommodate exploration and exploitation.

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Strategic Initiatives

Actions or projects that are outside the company's current strategy and focus on exploring new opportunities or markets.

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Innovation Horizons

Different stages of innovation, with each horizon representing a different level of novelty and impact on the business. Horizon 1 focuses on incremental improvements, Horizon 2 on adjacent markets, and Horizon 3 on entirely new markets.

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Exploitation vs. Exploration

Two contrasting approaches to innovation: Exploitation focuses on maximizing existing capabilities and resources for short-term gains; Exploration focuses on developing new capabilities and entering new domains for long-term growth.

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Reinforcing Dynamics of Learning

When an organization is successful in one area, it can become too focused on that area, neglecting other areas, and hindering long-term growth.

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Success Trap

Over-reliance on successful strategies and processes can lead to rigidity and hinder the ability to adapt to change.

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Failure Trap

Excessive exploration without a clear strategy can lead to wasted resources and unsustainable experimentation.

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Ambidextrous Organizations

Companies that are adept at balancing exploration and exploitation, allowing them to simultaneously explore new opportunities and optimize existing processes.

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Organizational Ambidexterity

The dynamic capability of an organization to effectively manage both exploration and exploitation activities, requiring specific routines, processes, and resource allocation.

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Strategic Paradoxes

Contradictory forces that organizations face when attempting to balance exploration and exploitation, requiring careful navigation and balancing over time.

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Platform Growth Beyond Users

Platforms need to evolve beyond simply gaining users. They must adapt to new opportunities and challenges to succeed in the long run.

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Data-Driven Platform Growth

Leveraging data for personalization, increasing order value, and improving user/partner retention is crucial for long-term platform success.

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Micro vs. Macro Success Factors

Focusing on small, actionable decisions alongside larger strategic goals is essential for platform scaling.

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Decision-Making Heuristics

Leaders use simple decision-making rules (heuristics) to manage scaling. Adapting these rules over time is crucial for efficient growth.

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Core Purpose for Platform Growth

Clearly defining the core purpose of a platform (its value) is essential for long-term growth and innovation.

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Redefining Company Identity for Growth

Companies need to adapt their identity to embrace new opportunities, even if it means moving beyond their original focus.

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TMT Framing of Innovations

How top management teams frame innovations (their interpretation and communication) plays a crucial role in adoption decisions.

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Challenges to Innovation Adoption

Obstacles to adopting new ideas include resource allocation, technical requirements, and business model compatibility.

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MNE Essence

The fundamental aspect of multinational enterprises (MNEs) involves expanding managerial control, leveraging existing advantages while exploring new ones, and developing unique competencies to succeed in a global market.

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Global Mindset

A way of thinking that prioritizes understanding and adapting to diverse cultures, markets, and business practices on a global scale.

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Mobile Intangible Assets

Resources that aren't physical but can be easily transferred across borders, like brand reputation, intellectual property, or employee expertise.

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System-wide Optimization

A strategy that optimizes operations across the entire organization, from sourcing to production, marketing, and distribution, to achieve efficiency and cost savings globally.

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Global Strategy Advantages

Having a global strategy offers benefits like increased market access, cost reductions, and greater resource utilization, outweighing potential drawbacks.

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Global Market Synergies

Maximizing the combined benefits of various stakeholders (customers, employees, investors) across different regions to enhance company performance and profitability.

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Internationalization: Unavoidable

In the modern world, it is almost inevitable for companies to expand operations internationally to compete effectively and capture growth opportunities.

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Study Notes

Knowledge Transfer Barriers

  • A significant barrier to knowledge transfer is lack of absorptive capacity in the recipient.
  • Absorptive capacity is the ability to assimilate, understand, and apply new knowledge. It is not about forgetting old knowledge.
  • The four stages of knowledge transfer are identification, acquisition, utilization, and diffusion.
  • Lack of support systems for knowledge transfer is termed a fragmented organizational context.

Knowledge Transfer Barriers

  • Lack of motivation and lack of trust are two knowledge-related barriers more significant than motivational factors.

Resource-Based View (RBV)

  • The Resource-Based View (RBV) framework primarily focuses on how firm resources lead to competitive advantage.
  • Tangible resources include physical assets and financial resources.
  • Intangible resources include brand equity, reputation, and intellectual property.
  • A characteristic of strategically valuable resources is rarity.
  • Companies must manage and develop their resources to maintain competitive advantage.

Types of Resources

  • Tangible resources are physical assets like buildings, equipment, and inventory.
  • Intangible resources encompass brand reputation, patents, and customer relationships.
  • Human resources refer to employee skills, knowledge, and expertise.
  • Organizational resources include firm structure, culture, and processes.

R&D Investment

  • Industry characteristics are not associated with R&D investment levels.
  • R&D collaboration is crucial despite the risk of knowledge spillovers.

Leveraging Resources

  • Leveraging resources across markets can lead to economies of scale, lower costs, and increased market share.

Strategic Focus

  • Successful organizations focus on both exploration and exploitation simultaneously.
  • Exploration involves developing new products, processes, and markets.
  • Exploitation involves improving efficiency and effectiveness in existing operations.
  • Paradox perspective enables organizations to embrace competing demands concurrently.
  • Strategic initiatives emerging outside the current strategy are termed emergent strategies.
  • Alignment theory suggests organizational systems are more effective when internal elements align.

GROFIT Framework

  • According to the GROFIT framework, customer satisfaction and profitability are the best options for market capitalization growth.
  • Combining customer satisfaction and profitability is a key strategy for successful organizations, as illustrated by companies like Amazon.

Exploitation & Exploration

  • The primary aim of exploitation in a business strategy is efficiency and effectiveness in existing operations.
  • Exploration and exploitation require different organizational structures and competences.
  • Becoming trapped in the success (or competence) trap can lead to an inability to adapt to changing environments.

Ambidextrous Organizations

  • Ambidextrous organizations achieve both exploration and exploitation effectively.
  • This can lead to up to three times higher performance levels.

Organizational Ambidexterity

  • Organizational ambidexterity is the ability to simultaneously engage in both exploration and exploitation.
  • The balance between exploration and exploitation is crucial for organizational performance.
  • Inertia trap results from overemphasizing exploration at the expense of exploitation, leading to inefficiency and declining profitability.

Platform Success

  • User growth and community engagement are crucial for long-term success of platforms.
  • Micro-level actions are significant for platform success, alongside macro factors.
  • Decision-making heuristics assist platform leaders in making efficient decisions despite limited information.

Platform Implications

  • LEGO identifies as a company that spurs creativity and imagination.
  • A platform can leverage network effects to enhance its value proposition.
  • Platform evolution is a continuous process of adapting to changing market demands.
  • Platform entrepreneurship involves creating new platform business models.

International Operations

  • Companies can maintain their original identity while innovating by adopting a glocal approach.
  • Top Management Team (TMT) characteristics, like international experience and openness to change, impact innovation adoption.
  • Cross-border collaboration is the core component of international operations.
  • MNEs (Multinational Enterprises) achieve competitive advantage through simultaneous exploitation of existing benefits and exploration for future opportunities.
  • Global mindset is essential for effective international operations.
  • MNEs face a natural disadvantage: cost of managing diverse operations.

International Success Factors

  • Strategic decision-making and cultural sensitivity are critical for international success.
  • Effective leadership and global talent management contribute to sustained success.

Global Strategies

  • Global strategies are becoming unavoidable due to interconnected markets and increased competition.
  • Integrated strategies in international business require strategic partnerships and resource allocation.
  • Distinctive MNE competences are developed by leveraging cross-border innovation, resource optimization, and culture-sensitive market entry.

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