Market-Based Organisational Learning - Theoretical Reflections and Conceptual Insights

As an area of academic inquiry, organisational learning has matured to such an extent that it can now be described as an institutionalisation of a body of knowledge. Nonetheless, underlying the apparent maturity of this literature lies the proliferation of disciplines that claim aspects of this theoretical territory, each with their own ontological premises and schools of thought resulting in frequently conflicting theories which often reflect a diverse pattern of phenomenological domains, interpretative issues, methodological predilections and conflicting operationalisations. The marketing literature is characteristic in detecting elements in cognate disciplines and introducing them within the guise of mainstream marketing thought. Consequently, it was a matter of time before marketing academicians became interested in exploiting seams of organisational learning research that are relevant to areas of marketing. Consequently, a recent announcement by the Marketing Science Institute finds that market-based organisational learning is now a 'second tier' research priority for 2002-2004, reflecting its developing attraction in organisational, conceptual, theoretical and empirical respects. In this paper, an attempt will be made to address the following: to delineate the organisational learning concept by reviewing multi-disciplinary contributions; to evaluate the intellectual roots to market-based organisational learning by considering its theoretical heritage; to propose a model of the theoretical properties of market-based organisational learning; to consider the extent to which market-based organisational theory satisfies criteria for theory construction in marketing and organisation science; to identify critical gaps in our knowledge of market-based organisational learning; and, to indicate the contextual issues surrounding the development of market-based organisational learning programs in firms.     

What changes the rules of the game in wholly owned subsidiaries? Determinants of knowledge acquisition from parent firms

We examine key factors affecting the extent of knowledge acquisition from multinational enterprises (MNEs) in their wholly owned subsidiaries (WOSs). As the volume of foreign direct investment (FDI) by MNEs is rapidly growing, empirical studies dealing with knowledge acquisition from parent firms in subsidiaries are in the limelight. However, as far as we know, none has attempted to identify primary mechanisms influencing subsidiary learning by dividing WOSs based on ‘investment mode’ and ‘investment direction’. We believe WOSs are characterized by these two issues and thus this research contributes to current literature by providing a detailed picture of learning mechanisms in subsidiaries. We advance a series of propositions to achieve the research objective by using a sample of WOSs established by MNEs in Korea. By doing this, we reveal that subsidiary learning depends significantly on absorptive capacity in learning organizations, relational capital and parent firms’ behavior. Also, we confirm that factors facilitating knowledge acquisition are influenced by investment mode and investment direction. Based on the results, this study provides some useful implications for MNEs and policy makers in local markets.     

A Multi-level Perspective for the Integration of Ethics,Corporate Social Responsibility and Sustainability (ECSRS) in Management Education

In recent years, much discussion has taken place regarding the social role of firms and their responsibilities to society. In this context, the role of universities is crucial, as it may shape management students’ attitudes and provide them with the necessary knowledge, skills and critical analysis to make decisions as consumers and future professionals. We emphasise that universities are multi-level learning environments, so there is a need to look beyond formal curricular content and pay more attention to implicit dimensions of the learning process in order to create significant learning. With this in mind, we propose an integrative and holistic approach to guide the integration of ethics, corporate social responsibility and sustainability in management education that aims to improve students’ knowledge and attitudes. In this model, we consider three interdependent levels of analysis–the institutional level, the curricular level and the instrumental level–which together produce a leverage effect on student learning. For each level, we identify the main issues and aspects that need to be considered, based on an extensive literature review in this field.     

The concept of learning in the Uppsala internationalization process model: a critical review

In behavioral models dealing with the internationalization process, such as the Uppsala Internationalization Process Model, knowledge and learning have a profound impact on how the firm is seen to approach foreign markets. In the light of recent work on learning in organizations, this paper addresses some issues related to how the process of learning is conceptualized in the Uppsala Model. It is argued that the model builders apply a more narrow interpretation of learning than that allowed by the literature, which limits the ability of the model to explain certain forms of internationalization behavior. It is also claimed that perceiving a firm to be a loosely coupled organization causes some problems in relation to the model’s possibility to predict the internationalization behavior. The consequences of the strong emphasis on individuals as the holders of market-specific knowledge are also discussed. The paper concludes with some remarks on the emergence of interesting research issues about the internationalization behavior if a broader concept of organizational learning is applied.     

Radical innovation in (multi)family owned firms

By integrating organizational learning theory with the family firm literature, we seek to enhance our understanding of radical innovation in (multi)family-owned firms. We theorize that the goal diversity and path dependency that multifamily ownership creates negatively affects the positive relationship between knowledge integration and radical innovation. However, this is not the case for multifamily-owned firms in which family members embrace a commitment to change. We contend that commitment to change mitigates the negative moderating effect of multifamily ownership by ensuring the effective translation of integrated knowledge into radical innovation within the firm. Overall, our results highlight the complexity of radical innovation in (multi)family-owned firms as a product of the joint effect of knowledge integration, the number of unrelated owning families, and a commitment to change.     

Supporting Technologies and Organizational Practices for the Transfer of Knowledge in Virtual Environments

A field study of a global science/technology company provides evidence of the value of both organizational practices and technology tools for supporting knowledge attainment (the combined tacit and explicit knowledge gained in a focal area – in this study we focus on product knowledge attainment) in virtual environments. We present a three-dimensional typology of knowledge management systems. Method of input, form of content, and how the users accrue the benefit of the knowledge help us to argue that organizational practices and technological tools will have independent positive effects on user knowledge attainment. We find attendance at face-to-face community of practice meetings, use of searchable archives, video-on-demand, and full-text search of video-on-demand all positively predict knowledge attainment. We suggest that organizations develop both organizational practices and technical supports for knowledge transfer. An interview with the video-on-demand vendor gives us the context to discuss issues for the support of tacit knowledge in more virtual environments as well as issues of expertise as it relates to support for formal and informal learning.     

Interplay between dual dimensions of knowledge sharing within globalized chaebols: The moderating effects of organization size and global environmental munificence

Existing literature exploring ambidexterity based on the organizational and network learning perspectives is sparse. In particular, there are few studies dealing with the characteristics of ambidexterity construct in the context of inter-organizational relationships, and existing studies are limited. To date, studies have suggested only vague and inconclusive conceptualizations and empirical findings. Our research tackles this overlooked area of thought by dismantling the mechanisms of ambidextrous knowledge sharing among group-affiliated companies within the large complex Korean business group known as a chaebol and the impact of those mechanisms on the companies’ global performances. An internationalized chaebol is a cradle of transnational knowledge and resource sharing that functions as a business group–level knowledge reservoir. Conceptually, our research employs two dimensions of ambidextrous knowledge sharing, “balance dimension (BD) of ambidextrous knowledge sharing” and “synergistic dimension (SD) of ambidextrous knowledge sharing,” among group-affiliated companies within a chaebol. In this way, we clarify the conceptual issues regarding the degree to which ambidextrous knowledge sharing affects the extent of explorative relative to exploitative knowledge sharing or affects the combined synergistic extent of both activities. We collect survey data from 337 manufacturing multinational group-affiliated companies that belong to 61 internationally diversified chaebols. We analyze this data using ordinary least squares (OLS) regression with the hierarchical method. Our results show that having a balance between explorative and exploitative knowledge sharing among group-affiliated companies (i.e., BD) within a chaebol increases the global performance of that chaebol’s group-affiliated companies. High synergistic levels of ambidextrous knowledge sharing among group-affiliated companies (i.e., SD) also enhance the group-affiliated companies’ global performance. In addition, our study reveals the moderating effects that organization size and environmental munificence have on the interactions of BD and SD.     

Experience and a firm's performance in foreign markets: A commentary essay

Wu and Lin (2010) extend several prominent themes in the experience and subsidiary performance literature in their empirical examination of the foreign expansion of Taiwanese MNEs. This commentary essay considers the themes in Wu and Lin (2010) against the backdrop of the considerable volume of research that has been conducted on experiential learning and firm performance in both the international business and strategy literatures. Five weak axioms about the relationships between experience, foreign market entry strategy, and performance emerge in this review. Based on these weak axioms, the commentary concludes that scholars need to concentrate future research on understanding the management and process-related issues that concern the effective management of a firm's experiential learning processes to foster better capability and knowledge development from a firm's experience, as well as translate such developments into improved performance prospects for a firm.     

中小企业学习代理模式与组织学习绩效关系实证研究

中小企业通过学习代理人从组织外部获取知识是促进组织学习的重要途径.因此,如何通过有效学习代理模式获取组织所需要知识,如何处理企业发展过程的学习策略以提高学习绩效,成为目前研究中小企业战略的重要课题.文章从学习代理基本理论出发,分析了学习代理的内涵与构成,提出了中小企业三种学习代理模式,提出了学习代理模式与组织学习绩效的概念模型与假设,通过实证研究对假设进行了统计验证,得出了基本结论与进一步研究展望,最后建议中小企业通过学习代理有效获取知识从而提升学习绩效.     

Small firm internationalization through experiential learning: The moderating role of socialization tactics

The importance of experiential knowledge for small firm internationalization has been emphasized in the process model of internationalization, the international new venture or born-global frameworks and the management characteristics perspective in the exporting literature. However, none examines in detail under what conditions experiential learning is more important for internationalization. We borrow insights from the socialization tactics literature to theorize how the context, content and social aspects of a foreign sojourn offer different opportunities for the acquisition of experiential knowledge to support the internationalization of small firms. We suggest that socialization tactics moderate the relationship between individual international experiential knowledge and small firm internationalization. We propose that the opportunities for international experiential learning are superior when the socialization context is individual and formal (rather than collective and non-formal), the socialization content is sequential and fixed (rather than random and variable) and when socialization involves serial and investiture (rather than disjunctive and divestiture) social aspects.     

Learning process and capability formation in cross-border buyer–supplier relationships: A qualitative case study of Taiwanese technological firms

This paper examines the alliance learning process from the perspective of local suppliers in a Global Production Network (GPN). After reviewing critical literature in the field, we employed a qualitative case research method to explore alliance learning antecedents, process and outcomes. Six Taiwanese technological firms with different positions in a GPN were examined and we found that these well-performing firms integrate both inter- and intra-organizational learning, as well as a bi-directional learning process. A framework of cross-level knowledge flow is proposed with refined alliance learning antecedents and outcomes. We also extend the typology of GPN positioning level. Propositions are suggested with results discussed for future research.     

Crowdsourced translation for rapid internationalization in cyberspace: A learning perspective

This paper explores how Facebook effectively used crowdsourced translation to accelerate its rapid internationalization. We apply the learning perspective of internationalization theory to unpack what the firm learned in order to mobilize crowd-based knowledge to facilitate internationalization in the virtual context, and how it did so. Increasingly, global activities are conducted in virtual space and virtual markets and thus the paper offers insights into successful expansion in this new terrain. The findings highlight two key points: (1) the firm used cognitive/explicit learning to acquire external and codified knowledge, rather than the experiential knowledge traditionally suggested in the literature on the process of internationalization, and (2) the firm's success rested on its ability to use virtual learning tools and incentive systems to acquire, articulate and integrate knowledge from communities of internationally dispersed users – the “crowd” – to accelerate its internationalization in cyberspace. This empirical study extends internationalization theory regarding knowledge and organizational learning.     

Understanding Absorptive Capacity from a Network Perspective

The term absorptive capacity refers to the notion that firms may have differing capabilities to innovate and to recognise the value of new knowledge, assimilate it, and apply it to creating business value. Developing such capabilities often requires firms to become part of a value network. We therefore apply the notion of absorptive capacity to the level of both the firm, and the wider value network in that it is embedded. The purpose of this research is to understand how absorptive capacity process may be moderated by contingent factors so that a more complete picture of absorptive capacity development emerges from our research. We identify from the literature on learning, innovation, and networks several theoretical perspectives that may help researchers to understand how contingent factors may facilitate and/or inhibit the development of absorptive capacity capabilities. We offer a set of propositions that may guide research into learning and innovation in business networks, and we discuss the managerial implications of these propositions.     

Foreign subsidiaries as vehicles of industry 4.0: The case of foreign subsidiaries in a post-transition economy

We ask whether foreign subsidiaries may work as entities that neutralize the threat of marginalization of the post-transition economies in terms of Industry 4.0 (I4.0) adoption. Building on a conceptual model of foreign subsidiaries as I4.0 vehicles, we conducted interviews with 440 foreign subsidiaries from the manufacturing sector established in Poland. The originality of the paper concerns three key issues. First, our study shows that the strategy adopted by the headquarters is critical, as it impacts the possibility of foreign subsidiaries to act as vehicles of I4.0 transformation in host economies. Second, embeddedness in local environment guarantees the transition of knowledge, whereas the innovation capacity of a foreign subsidiary does not seem to play any role. Third, we focus on foreign subsidiaries established in a post-transition economy. The results of our research enrich the literature on types of foreign subsidiaries in transmitting and diffusing the knowledge received from headquarters and expose the prominent role of links with host market entities.     

Individual and organizational learning from inter‐firm knowledge sharing: A framework integrating inter‐firm and intra‐firm knowledge sharing and learning

Literature has highlighted but not explored links between knowledge sharing and learning at inter‐firm and intra‐firm levels. Using the single case of an aviation refuelling company as the basis for our research methodology and collecting data through 34 semi‐structured interviews, we develop a framework that integrates knowledge sharing and learning at inter‐firm and intra‐firm levels. We show that intra‐firm knowledge sharing capabilities facilitate the diffusion of inter‐firm learning within organizations. Moreover, inter‐firm trust manifests in different forms that affect individual and organizational learning. The purpose of collaboration determines what a firm learns or discards. The findings are important for organizations facing a shortage of skills. © 2018 ASAC. Published by John Wiley & Sons, Ltd.     

Unpacking the effect of exploration during environmental uncertainty: Evidence from the information technology sector

Environmental uncertainty can render managerial decision‐making about resource deployment particularly difficult. Integrating the knowledge‐based view of the firm and the organizational learning literature, we make a case for deploying specific knowledge‐based resources to cope with specific types of environmental uncertainty. We unbundle knowledge‐based resources into technology‐based and social‐network‐based resources and, using Milliken's (1987) typology of environmental uncertainty, we hypothesize that (a) technological exploration will be more effective during state uncertainty and (b) while being generally beneficial, social exploration will prove more effective during response uncertainty. An analysis of the financial performance of information technology (IT) firms in the United States over the period 1995–2004 generally supports our hypotheses. Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.     

An Assessment of Experiential Learning of Global Poverty Issues Through International Service Projects

Service learning has been used to supplement a standard business curriculum, but not typically in an international business context. We report the results of two short-term study abroad programs in which we incorporated service learning projects, one in Cambodia and the other in Vietnam. Our objective is to assess how we organized and delivered effective service learning projects in short-term study tours, and to assess students’ learning outcomes on global poverty issues in a business curriculum. We used both quantitative and qualitative assessment measures. The findings suggest that several types of learning outcomes did occur through the service learning projects, as the literature suggested. Seeing poverty firsthand and doing something about it through service learning may be a first experience for many students, but it seems to be a transformational one for many. We conclude that students may approach business and even political decisions with a greater understanding of their impact on poverty in the developing world.     

Organizational learning in exporting: A bibliometric analysis and critical review of the empirical research

In the latest decades, empirical research on organizational learning in the export context has recorded an increasing trend. On the other hand, in spite of the wealth of research on the subject, no effort has yet been made to offer an integrative review to investigate the improvement of this body of knowledge. To fill this gap, this study endeavors to synthesize the stream of empirical research on organizational learning in the field of exporting published between 1997 and 2017. Initially, the relevant studies were bibliometrically analyzed on the basis of the data gathered from the Web of Science database. The bibliometric data analysis indicates the most influential publication outlets, most influential institutions, most influential scholars, and most influential articles in relation to organizational learning in the export literature. Additionally, each article was content-analyzed in terms of scope of research, research methodology, and empirical issues. The content analysis reveals that albeit significant progress, organizational learning research within the context of exporting is still at the introduction stage and certain weaknesses in scope, research designs, and conceptual understanding attract criticism.     

The Role of Ethics in the Commercialization of Indigenous Knowledge

Much has been written about indigenous knowledge and intellectual property rights (IPRs) in fields like anthropology and law. However, it remains an under-examined topic in business and management literature. In this article, we review the emerging contentious discourse, definitional issues and underlying assumptions of the western IPR and indigenous knowledge management systems. We highlight the similarities and differences between the two approaches. We argue that adopting a view that law is socially constructed with ethical underpinnings helps sort out the thorny issues related to indigenous knowledge ‘expropriation’. To do this, we draw on the role of ethical norms in the historical evolution of IPRs regimes. Finally, grounded in Stakeholder Theory, we conclude with a discussion of managerial implications.