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• A model of knowledge management and N-form
corporation
• Organization learning: The contributing
processes and the literatures
• Knowledge of the firm, combinative capabilities,
and the replication of technology
Discussed by
Manny Martinez
Yi-Hsuan Lee
Agenda
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Organization structures vs. knowledge
management
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Organizational Learning
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Organization Structures
The gap between the firms in Japan and U.S.
Growth of knowledge of the firm
The problem needed to be overcome
The suggestion
Organization Structures Vs.
Knowledge Management
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Knowledge is embedded in structured
individual relationships.
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The “share” concept in information
distribution is important.
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The knowledge of the firm can be understood as
resting in the organizing of human resources.
Units that have information and units that need
this information can find each other quickly.
Knowledge management is affected strongly
by organization structure.
Organization Structures
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U-form
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Unitary form / Functional form
Decomposed into specialized/functional units which are
similar tasks (such as production and sales)
Executive
Human Resource
Finnance
Marketing
MIS
Recruitment
Accounting
Product
Website
Training
Investment
Sales
Database
Organization Structures
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M-Form
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Multi-divisional Form
By Alfred Sloan, CEO of GM, 1924
Decomposed into divisional/business units
Headquarter
Asia Division
America Division
Business Consulting
Global Service
Marketing
Marketing
CRM
Technical Support
HR
HR
B2B
Maintenance
Organization Structures
Toyota
Microsoft
Sony
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IBM
M-form and U-form are the two ends of the line
on which every firm’s organization structure lies.
N-form
The Gap between The Firms in
Japan and U.S.
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Japanese firms historically were smaller and less
diversified. More recently, a new trend has
developed. This represents a shift from the “U” to
the “M” form.
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Sony: become similar to western firms–increased size, more
diversified.
U.S. firm are moving in the opposite direction,
realizing the power of team interactions and the
benefit of centralization.
The gap between eastern and western firms is
getting smaller because of globalization.
The diversification is increasing in both countries.
Organizational Learning
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Sony + Ericsson (Strategic Alliance)
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Information Acquisition
The Alliance helps them to learn from each other.
Different organization structures lead them to
different way in learning.
“Share”, or interaction, is still the key point.
Growth of Knowledge of the Firm
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Through combinative capabilities, Sony and Ericsson
internalize the information to form their growth of
knowledge after external learning, and finally develop
the market opportunities.
Internal learning
Information
knowhow
Combinative
Capability
External learning
SonyEricsson
Alliance
Organizing and
Technological
Opportunities
Market
Opportunities
The Problem Needed to Be Overcome
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According to Huber, researchers of
organizational learning do not share
information .
Similarly, the divisions of the organization,
such as IBM, do not maximize “crossfertilization”.
SonyEricsson Alliance also needs more shared
knowledge.
Question – How can we promote meaningful
interactions between divisions?
N-form Might Be The Solution
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N-form can help solve this interaction
problem through institutionalized team work
and inclusion of lower level employees.
But the form still has some weakness
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Large complex projects, lack of cohesive vision.
What we recommend for firms such as IBM ?
The Suggestion
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Organizations must understand the needs of their
consumers. For IBM, creating task forces across
product lines (pc’s, servers) can create holistic
solutions for the customer. This is the “N” structure.
However, the ability of a hierarchical organization to
deal with complexity and allocate resources
effectively is important. This is the “M” structure.
As a result, managers must strive to balance
response flexibility to retaining the ability to manage
complex situations.