8/13/2019 Gs Thesis

1/104

8/13/2019 Gs Thesis

2/104

Table of Contents

P%ge No

KNOWLEDGE-BASED STRATEGY APPRAISING KNOWLEDGE CREATIONCAPABILITY IN ORGANISATIONS#By #

Professor George Stonehouse#PhD y !u"#$%t#on#N%!#er &n#'ers#ty( E)#nurgh#

August *++,#T%"e of Contents# P%ge No#

Astr%$t###A$.no/"e)ge0ents'11 Intro)u$t#on1

Table 1: PhD Articles: Methodology and Methods, Contribution and related thesis

chapters.......................................................................................................................3

1* Str%teg#$ 2%n%ge0ent3Str%teg#$ 0%n%ge0ent #s st#"" #n the e%r"y st%ges of #ts )e'e"o!0ent %s %n%$%)e0#$ )#s$#!"#ne A"though there #s no s#ng"e %gree) )ef#n#t#on of the ter04str%teg#$ 0%n%ge0ent5( %n) there #s 0u$h )#s%gree0ent %out #ts s$o!e( #t $%n ero%)"y $on$e!tu%"#se) %s % set of theor#es %n) fr%0e/or.s through /h#$h0%n%gers $%n en'#s#on %n) !"%n for the "ong ter0 future of the org%n#s%t#on %s %/ho"e Des!#te the "%$. of $onsensus on #ts )ef#n#t#on( there #s $ons#)er%"e%gree0ent on the $ore %$t#'#t#es #n'o"'e) #n 4)o#ng5 str%tegy 62$K#ern%n( 177892#nt:erg et %"( 177,%( Stonehouse et %"( *++3; Str%teg#$ 0%n%ge0ent( orstr%teg#s#ng %s #t #s so0et#0es $%""e) to)%y( #n$or!or%tes se'er%" #nter"#n.e)%$t#'#t#es #n$"u)#ng str%teg#$ th#n.#ng( str%teg#$ "e%rn#ng( str%teg#$ !"%nn#ng( %n)str%tegy #0!"e0ent%t#on( re'#e/ %n) %)%!t%t#on 31< Kno/"e)ge( Le%rn#ng( Cre%t#'#ty %n) Str%tegy=13 The Org%n#s%t#on%" D#0ens#on=1= Rese%r$h Conte>t?1? O'er'#e/ of Pu"#$%t#ons?18 Rese%r$h A#0 %n) O@e$t#'es81, O'er'#e/ of Su0#ss#on Do$u0ent,Ch%!ter *1+Rese%r$h 2etho)o"ogy1+*1 Intro)u$t#on1+** Rese%r$h Ph#"oso!hy( E!#ste0o"ogy %n) Onto"ogy11*< 2o)e * Rese%r$h %n) #ts 2etho)o"og#$%" I0!"#$%t#ons1**3 Rese%r$h 2etho)s13*= Con$"us#ons1=Ch%!ter

8/13/2019 Gs Thesis

3/104

8/13/2019 Gs Thesis

4/104

Abstract

Th#s thes#s sets out % @ourney /h#$h $u"0#n%tes #n the )e'e"o!0ent of %n %n%"yt#$%"

fr%0e/or.( the 4Org%n#s%t#on%" Cre%t#'#ty A!!r%#s%"5 /h#$h #s #nten)e) to %ss#st

org%n#s%t#ons #n e'%"u%t#ng the#r %#"#ty to su!!ort %n) )e'e"o! $re%t#'#ty Th#sfr%0e/or. #s )er#'e) fro0 the $o00on thre%) of the thes#s( /h#$h #s )r%/n fro0 %

r%nge of rese%r$h %n) $onsu"t%n$y !ro@e$ts( %n) the resu"t#ng !u"#she) /or.(

s!%nn#ng %n e#ght ye%r !er#o)( $entr#ng on the ro"e of .no/"e)ge %n) $re%t#'#ty #n

the str%tegy %n) !erfor0%n$e of org%n#s%t#ons

The "#ter%ture of str%tegy( "e%rn#ng %n) $re%t#'#ty #n$re%s#ng"y re$ogn#ses th%t

org%n#s%t#on%" $onte>t #s $r#t#$%" to the for0%t#on of str%tegy( to the $ontent of the

str%tegy %n) to #ts su$$essfu" #0!"e0ent%t#on The thes#s e>!"ores the /%ys #n

/h#$h "e%rn#ng %n) $re%t#'#ty( the %s#s of .no/"e)ge-%se) str%tegy( %re

#nf"uen$e) y org%n#s%t#on%" $onte>t or so$#%" %r$h#te$ture The rese%r$h e>!"ores

the /%ys #n /h#$h 0%n%gers $%n g%#n gre%ter un)erst%n)#ng of the so$#%"

%r$h#te$tures of the#r org%n#s%t#ons so %s to %ss#st #n su!!ort#ng the#r str%teg#$

)e'e"o!0ent

The $entr%" $ore of the thes#s #s the n#ne !u"#she) !%!ers u!on /h#$h #t #s %se)

ut #t %"so )er#'es fro0 the ro%)er !ers!e$t#'e of 0y !u"#she) /or. #n the for0 of

oth %rt#$"es %n) oo.s The thes#s further )r%/s u!on 0y o/n e>!er#en$e %s %

"e%)er %n) 0%n%ger #n the $onte>t of un#'ers#ty us#ness s$hoo"s %n) %s %

$onsu"t%nt( rese%r$her %n) )e'e"o!er #n the $onte>t of % r%nge of #ntern%t#on%"

!r#'%te %n) !u"#$ se$tor org%n#s%t#ons

The /or. #s %se) u!on % !re0#se th%t theory shou") #nfor0 !r%$t#$e %n) th%t

!r%$t#$e shou") #nfor0 theory The 4Org%n#s%t#on%" Cre%t#'#ty A!!r%#s%"5 fr%0e/or.

#s #nfor0e) y oth theory %n) !r%$t#$e %n) #s #nten)e) to %ss#st #n 0%n%ge0ent

!r%$t#$e There #s no %ssu0!t#on th%t 0%n%ge0ent rese%r$h $%n %rr#'e %t

!res$r#!t#ons for 0%n%ger#%" %n) org%n#s%t#on%" eh%'#our On the other h%n)

0%n%ge0ent rese%r$h $%n usefu""y #nfor0 0%n%ge0ent %n) org%n#s%t#on%"

eh%'#our( %s "ong %s #t #s e0!"oye) #n % $r#t#$%""y ref"e$t#'e 0%nner

iii

8/13/2019 Gs Thesis

5/104

The 4Org%n#s%t#on%" Cre%t#'#ty A!!r%#s%"5 !resente) #n th#s /or. shou") e reg%r)e)

%s the fr%0e/or. #n #ts !resent for0 /h#$h #s "#.e"y to )e'e"o! further %s 0y

rese%r$h !rogresses #n the future

i+

8/13/2019 Gs Thesis

6/104

Acknowledgements

I /#sh to e>!ress 0y th%n.s to Dr Anne 2unro( 0y su!er'#sor( for her !%t#en$e %n)

su!!ort )ur#ng the $o0!"et#on of th#s thes#s %n) to Dr on Pe0erton( Dr Son%"

2#no$h%( %n) Professor Br#%n Sno/)on /ho $o""%or%te) /#th 0e #n 0u$h of the

rese%r$h !resente) here %n) /#thout /hose su!!ort %n) en$our%ge0ent I $ou")

not h%'e ho!e) to su$$ee)

+

8/13/2019 Gs Thesis

7/104

Chapter 1

Introduction and Overview

1.1 Introduction

Th#s thes#s for0s % n%rr%t#'e sett#ng out the st%ges #n % @ourney of )#s$o'ery /h#$h

#s not( %n) !ro%"y ne'er /#"" e( $o0!"ete It #s #n 0%ny /%ys % n%rr%t#'e /h#$h

retros!e$t#'e"y see.s to r%t#on%"#se %n) g#'e % $o00on sense of !ur!ose to %

nu0er of !#e$es of /or. e%$h of /h#$h /%s #n one sense $ont%#ne) ut %t the

s%0e t#0e e0erge) %s !%rt of % $ons#stent the0e the ro"e of .no/"e)ge %n)

$re%t#'#ty #n the str%tegy of org%n#s%t#ons The !u"#$%t#ons s!%n % !er#o) of e#ght

ye%rs ut h%'e to e $ons#)ere) #n the $onte>t of %n %$%)e0#$ $%reer rese%r$h#ng(

te%$h#ng( $onsu"t#ng %n) tr%#n#ng #n the f#e") of str%teg#$ 0%n%ge0ent /h#$h goes

%$. %"0ost t/enty ye%rs Th#s $%reer h%s rought 0e #nto $ont%$t /#th '%r#ous

0%n%gers( org%n#s%t#ons %n) %$%)e0#$s /h#$h h%'e sh%!e) the )#re$t#on %n)

)e'e"o!0ent of 0y /or. throughout th%t !er#o) of t#0e 2ore re$ent"y( for the "%st

f#'e or s#> ye%rs I h%'e foun) 0yse"f %s % !r%$t#$#ng str%teg#st #n 0y ro"es %s %

sen#or 0%n%ger #n % us#ness s$hoo" %n) % un#'ers#ty Th#s )#re$t e>!osure to

r#ng#ng %out str%teg#$ $h%nge #n org%n#s%t#ons h%s un)oute)"y #nf"uen$e) %n)$h%nge) 0y th#n.#ng At the s%0e t#0e #t h%s $onf#r0e) %n) re#nfor$e) 0u$h of 0y

th#n.#ng %n) th#s !r%$t#$e %se h%s "ent % f%r gre%ter re"e'%n$e to 0y /or. y

for$#ng 0e to ref"e$t f%r 0ore $r#t#$%""y %s % "e%)er on the !ur!oses( !ro$esses(

0etho)s %n) org%n#s%t#on%" f%$tors #0!%$t#ng u!on $re%t#'#ty %n) str%teg#$ $h%nge

#n org%n#s%t#ons

Wh#"st th#s thes#s #s fo$use) on %n) !resents n#ne !u"#she) !%!ers( #t #s roote) #n(

%n) )r%/s u!on( % f%r /#)er o)y of 0y /or. #n ter0s of oth %rt#$"es %n) oo.s In

!%rt#$u"%r( so0e of the ref"e$t#ons u!on the e>#st#ng o)y of "#ter%ture( %n) the

$on$e!tu%" th#n.#ng /h#$h sh%!es th#s thes#s( /ere f#rst !u"#she) #n t/o of the

three oo.s /h#$h I h%'e $o-%uthore) A"though these oo.s %re not !resente) %s

!%rt of the thes#s they %re /#)e"y referen$e) throughout the /or.

1

8/13/2019 Gs Thesis

8/104

It #s #0!ort%nt to stress th%t the thes#s #s not ent#re"y retros!e$t#'e %n) #s( #n f%$t(

"#'e #n the sense th%t the 4Cre%t#'#ty A!!r%#s%"5( !resente) %s one of the 0%@or

$ontr#ut#ons of 0y /or.( #s % too" /h#$h #s st#"" 'ery 0u$h un)er )e'e"o!0ent( e'en

though #t h%s een #n use( #n one for0 or %nother( for se'er%" ye%rs

In %))#t#on to e#ng % @ourney #n ter0s of 0y $r#t#$%" th#n.#ng on str%tegy( the /or.

!resente) #n the thes#s( %"so !resents /h%t h%s een %n e'en 0ore )r%0%t#$ %n)

te0!estuous !erson%" 'oy%ge of )#s$o'ery #n ter0s of e!#ste0o"ogy %n)

0etho)o"ogy A )o0#n%nt !os#t#'#st !%r%)#g0( %n) #ts often he%'y re"#%n$e on

u%nt#t%t#'e %!!ro%$hes( h%s een "%rge"y re!"%$e) y % '#e/ of the /or") /h#$h #s

"ess $ert%#n( 0ore uest#on#ng( 0ore ref"e$t#'e %n)( #n so0e /%ys 0ore $onfuse)

The on"y $ert%#nty #s th%t there %re no $ert%#nt#es At the s%0e t#0e( #t #s #0!ort%nt

to stress 0y $on'#$t#on th%t the 0%@or r%#son )5etre for 0%n%ge0ent rese%r$h #s to

#nfor0 0%n%ge0ent th#n.#ng %n) !r%$t#$e or 0e th#s $onne$t#on #s essent#%"

A$%)e0#$ !eer re'#e/ #s %n essent#%" $o0!onent #n e'%"u%t#ng the $ontr#ut#on of

rese%r$h ut so %re the '#e/s of !r%$t#t#oners the0se"'es In th#s $onte>t( /h#"e th#s

thes#s offers no !res$r#!t#ons for 0%n%gers( #t )oes %tte0!t to )e'e"o! %n) !resent

$on$e!ts( fr%0e/or.s %n) too"s /h#$h 0%y e of %ss#st%n$e to the0 #n str%tegy

%n) str%teg#s#ng /#th#n the#r org%n#s%t#ons

The re0%#n)er of th#s $h%!ter "o$%tes s$o!e %n) o@e$t#'es of the rese%r$h #n the

$onte>t of the )#s$#!"#ne of str%teg#$ 0%n%ge0ent %n) rese%r$h !h#"oso!hy #n ro%)

ter0s efore these %re%s %re $r#t#$%""y e>!"ore) #n )et%#" #n suseuent $h%!ters

2

8/13/2019 Gs Thesis

9/104

Table 1: Ph Articles: !ethodolog" and !ethods# Contribution andrelated thesis chapters

Article !ethodolog"$ methods

Contribution %elatedthesischapters

1 Stonehouse( G %n) Sno/)on( B

6*++8; 4Co0!et#t#'e A)'%nt%ge

Re'#s#te)F 2#$h%e" Porter on Str%tegy

%n) Co0!et#t#'eness5( Journal of

Management Inquiry( 1?( 6

8/13/2019 Gs Thesis

10/104

Lessons ro0 A#r"#ne Reser'%t#on

Syste0s5( "ong #ange !lanning( o"

8/13/2019 Gs Thesis

11/104

0ust e %se) u!on str%teg#$ "e%rn#ng y the org%n#s%t#on %out #tse"f 6#n ter0s of

resour$es( $o0!eten$es( %$t#'#t#es( !ro$esses( syste0s( $u"ture( stru$ture et$; %n)

#ts en'#ron0ent 6$usto0ers( 0%r.ets( su!!"#ers( $o0!et#tors et$; Th#s str%teg#$

"e%rn#ng #s #nten)e) to !ro)u$e str%teg#$ .no/"e)ge 6Non%.%( 1771; /h#$h en%"es

the 0%.#ng of str%teg#$ )e$#s#ons on the future )#re$t#on of the org%n#s%t#onStr%teg#$ !"%nn#ng engen)ers the sett#ng of "ong o@e$t#'es( %n) the )e'e"o!0ent

%n) #0!"e0ent%t#on of !"%ns )es#gne) to %$h#e'e the0 for the org%n#s%t#on Su$h

str%teg#$ !"%ns 0ust e re'#e/e) %n) %)%!te) #n the "#ght of $h%ng#ng

$#r$u0st%n$es

1.( )nowledge# *earning# Creativit" and 'trateg"

The )e'e"o!0ent of str%teg#$ 0%n%ge0ent h%s seen( %n) /#"" $ont#nue to see(

0%ny t/#sts %n) turns The )es$r#!t#on of str%teg#$ 0%n%ge0ent #n the !re$e)#ng

se$t#on re!resents % '#e/ of /here the o)y of th#n.#ng eh#n) str%tegy #s to)%y

Th#s #n #tse"f #s %n o'ers#0!"#f#$%t#on /h#$h /#"" e e>!"ore) #n suseuent $h%!ters

Ne'erthe"ess( 0u$h of the re$ent th#n.#ng #n str%tegy h%s $entre) %roun) the nee)

for $ont#nuous #nno'%t#on %n) the $onte>t of % r%!#)"y $h%ng#ng( $o0!"e> %n)

)yn%0#$ en'#ron0ent In th#s st%te of f"u> #t h%s een %rgue) th%t .no/"e)ge(

"e%rn#ng %n) $re%t#'#ty %re the on"y 0e%ns y /h#$h $o0!et#t#'e %)'%nt%ge $%n e%$h#e'e) %n) sust%#ne) 6Non%.%( 17719 Non%.% et %"( *+++9 Stonehouse %n)

Pe0erton 1777; Th#s thes#s #s u#"t u!on these "#nes of th#n.#ng %n) e>!"ores ho/

the "#ter%ture of str%tegy h%s %rr#'e) %t th#s !o#nt %n) /here #t 0%y go #n the future

1.+ The Organisational imension

Rese%r$h %n) "#ter%ture #n the f#e") #n$re%s#ng"y re$ogn#ses th%t org%n#s%t#on%"

$onte>t /#th#n /h#$h str%tegy #s 0%)e 6or e'o"'es; %n) #s en%$te) #s $r#t#$%" to oth

the str%tegy /h#$h #s )eter0#ne) %n) to #ts #0!"e0ent%t#on 6Senge( 177+%( 177+9

2#nt:erg et %"( 177,; In other /or)s the su$$ess of 0%.#ng %n) )o#ng str%tegy

6str%teg#s#ng; #s he%'#"y )e!en)ent u!on the $onte>t #n /h#$h #t t%.es !"%$e Th#s

h%s een %n #0!ort%nt f%$tor un)er"y#ng %n) runn#ng throughout 0y rese%r$h %n)(

#n)ee)( #s %0ong the $entr%" the0es e>!"ore) #n th#s thes#s The uest#on !ose) #s

)

8/13/2019 Gs Thesis

12/104

/h%t #s the #nf"uen$e of the org%n#s%t#on%" $onte>t on str%teg#s#ng %n) ho/ 0%y

0%n%gers %n) org%n#s%t#ons g%#n gre%ter un)erst%n)#ng of #t #n or)er to f%$#"#t%te

the#r str%teg#$ )e'e"o!0ent

1., %esearch Conte-t

A"ongs#)e the )e'e"o!0ent of th#n.#ng #n str%tegy %n) 0y eng%ge0ent /#th #t #s the

$h%ng#ng n%ture of the /%y rese%r$h h%s een $on)u$te) #n the f#e") In#t#%"

)o0#n%n$e $%0e fro0 the #n)ustr#%" e$ono0#sts /#th % he%'y re"#%n$e on %

!os#t#'#st#$ !%r%)#g0 %n) u%nt#t%t#'e rese%r$h 0etho)o"og#es %n) 0etho)s The

sh#ft to %n e0!h%s#s on the org%n#s%t#on%" )#0ens#on of str%tegy h%s een

%$$o0!%n#e) y % $h%nge to/%r)s #nter!ret#'#st !%r%)#g0s %n) u%"#t%t#'e

rese%r$h te$hn#ues These $h%nges #n 0etho)o"ogy %n) 0etho)s %re ref"e$te) #n

0y o/n /or. Yet there h%s not een % $o0!"ete sh#ft #n 0y fun)%0ent%"

e!#ste0o"ogy Wh#"st there #s no e"#ef th%t /e $%n 0%.e !res$r#!t#ons for

su$$essfu" str%tegy( there #s % e"#ef th%t /e $%n 0%.e suggest#ons /h#$h /#""

#nfor0 0%n%ge0ent th#n.#ng %n) %$t#on Th#s $re%t#'e tens#on $%n e seen

throughout the %rt#$"es /h#$h for0 th#s thes#s

1. Overview of Publications

A"though there #s $ons#)er%"e "#ter%ture on str%tegy( org%n#s%t#on%" "e%rn#ng %n)

.no/"e)ge $re%t#on( there h%s een f%r "ess rese%r$h #nto the f%$tors /h#$h en%"e

%n) #nh##t the )e'e"o!0ent of .no/"e)ge-%se) str%teg#es /#th#n org%n#s%t#ons

The 0%@or $ontr#ut#on of 0y /or. to oth .no/"e)ge %n) !r%$t#$e #s #n the

)e'e"o!0ent of % fr%0e/or. /h#$h su!!orts org%n#s%t#ons #n %n%"y:#ng the#r

$%!%#"#ty to $re%te %n) %!!"y .no/"e)ge #n the#r $o0!et#t#'e str%teg#es

The )e'e"o!0ent of th#s fr%0e/or. eg%n /#th the !u"#$%t#on of the 1777 %/%r)-

/#nn#ng %rt#$"e 4The Inte""#gent Org%n#s%t#on5 /h#$h set out % $on$e!tu%" fr%0e/or.

re!resent#ng the @u>t%-!os#t#on of #n)#'#)u%" %n) org%n#s%t#on%" "e%rn#ng #n the

$re%t#on of org%n#s%t#on%" .no/"e)ge %s the %s#s of .no/"e)ge-%se) $ore

$o0!eten$es Th#s %rt#$"e /%s !%rt#%""y $on$e!tu%""y %se) %n) !%rt#%""y %se)

u!on e0!#r#$%" /or. #n the %#r"#ne #n)ustry The suseuent %rt#$"es e>!"ore the

8/13/2019 Gs Thesis

13/104

or#g#ns %n) n%ture of str%tegy 6Stonehouse %n) Sno/)on( *++8; "e%)#ng to the

e0ergen$e of "e%rn#ng %n) .no/"e)ge-%se) str%teg#es 6Pe0erton %n)

Stonehouse( *+++;( the n%ture of str%teg#s#ng 60%.#ng %n) )o#ng str%tegy;

6Stonehouse et %"( *++1( Pe0erton( Stonehouse %n) Y%rro/ *++1( Stonehouse

%n) Pe0erton( *++*; /h#"e the re0%#n#ng %rt#$"es 6Stonehouse %n) Pe0erton*++=( Stonehouse *++=( Stonehouse %n) Sno/)on *++8; #n'est#g%te

org%n#s%t#on%" %ttr#utes /h#$h #0!%$t u!on the %#"#ty of org%n#s%t#ons to $re%te

ne/ .no/"e)ge eff#$#ent"y %n) effe$t#'e"y On the %s#s of the e0!#r#$%" %n)

$on$e!tu%" /or. % fr%0e/or. J 0%n%ge0ent too" .no/n %s the 4Kno/"e)ge-

Cre%t#'#ty A!!r%#s%"5 /%s )es#gne) /h#$h h%s een e0!"oye) /#th#n $%se stu)y

org%n#s%t#ons to %ss#st the0 #n %ssess#ng the#r $%!%#"#ty to $re%te ne/ .no/"e)ge(

/h#$h ser'es %s the %s#s of the#r $o0!et#t#'eness It #s the 4Kno/"e)ge-Cre%t#'#ty

A!!r%#s%"5 /h#$h re!resents the $u"0#n%t#on of the $ontr#ut#on to .no/"e)ge %n)

!r%$t#$e )e'e"o!e) through the referee) !u"#$%t#ons !resente)

The !ro!ose) stru$ture #s r%ther un$on'ent#on%" #n th%t #t )oes not %)o!t the

tr%)#t#on%" thes#s stru$ture( n%0e"yF #ntro)u$t#on9 "#ter%ture re'#e/9 0etho)o"ogy9

f#n)#ngs9 %n%"ys#s9 %n) $on$"us#on Inste%) the $h%!ters e>!"ore )#fferent %s!e$ts of

str%teg#$ 0%n%ge0ent rese%r$h( theory %n) fr%0e/or.s %n) 0y $ontr#ut#on to

the0 through rese%r$h %n) !u"#$%t#on( %fter %n #ntro)u$t#on %n) e>!"or%t#on of

rese%r$h 0etho)o"ogy These $h%!ters %re fo""o/e) y % $h%!ter /h#$h out"#nes

the $u"0#n%t#on of 0y $ontr#ut#on to str%tegy %"re%)y )es$r#e) %s the 4Kno/"e)ge-

Cre%t#'#ty A!!r%#s%"5

1./ %esearch Aim and Ob0ectives

8/13/2019 Gs Thesis

14/104

The o'er%"" %#0 of th#s thes#s #sF

To )e'e"o! % $on$e!tu%" fr%0e/or. /h#$h %ss#sts org%n#s%t#ons #n the

e'%"u%t#on of the#r "e%rn#ng %n) $re%t#'e !otent#%"s

In or)er to %$h#e'e th#s %#0 the 0%#n o@e$t#'es of the thes#s %reF

1 To #n'est#g%te %n) $r#t#$%""y e'%"u%te the ro"e of .no/"e)ge( "e%rn#ng %n)

$re%t#'#ty #n str%tegy %n) str%teg#s#ng

* To #)ent#fy %n) $r#t#$%""y e'%"u%te the f%$tors #nf"uen$#ng "e%rn#ng %n)

.no/"e)ge $re%t#on /#th#n org%n#s%t#ons

t of the "#ter%ture of

str%teg#$ 0%n%ge0ent( org%n#s%t#on%" "e%rn#ng %n) .no/"e)ge $re%t#on

3 To e>!"%#n %n) e'%"u%te the rese%r$h 0etho)o"ogy %n) 0etho)s /h#$h

un)er"#e the #n)#'#)u%" %rt#$"es /h#$h $o0!r#se the 0%#n o)y of the

thes#s

1. Overview of 'ubmission ocument

Th#s $h%!ter h%s g#'en %n o'er'#e/ of the $onte>t %n) s$o!e of the /or. !ro'#)#ng

the theoret#$%" %n) 0etho)o"og#$%" sett#ng /#th#n /h#$h the rese%r$h /%s

$on)u$te) %n) the %rt#$"es /r#tten Ch%!ter * $ons#)ers the !h#"oso!h#$%" %n)

0etho)o"og#$%" #ssues /h#$h I h%'e f%$e) %n) %tte0!te) to %))ress #n the $ourse

of 0y rese%r$h %n) #n )e'e"o!#ng #ts $oheren$e It e>!"ores % r%nge of

e!#ste0o"og#$%" %n) onto"og#$%" uest#ons "o$%t#ng the0 #n the sett#ng of

0%n%ge0ent rese%r$h %n) #n re"%t#on to the %#0s %n) o@e$t#'es of the thes#s In

%))#t#on to the !h#"oso!h#$%" %n) theoret#$%" %$.groun) the $h%!ter e>!"ores the

!r%$t#$%" %s!e$ts of the rese%r$h %n) #ts "#0#t%t#ons

Ch%!ters

8/13/2019 Gs Thesis

15/104

.no/"e)ge effe$t#'e"y E%$h of these $h%!ters %"so e'%"u%tes the $ontr#ut#on of 0y

rese%r$h to these %s!e$ts of the theory %n) "#ter%ture of str%teg#$ 0%n%ge0ent

On the %s#s of th#s e'%"u%t#on of 0y rese%r$h %n) #ts $ontr#ut#on to the theory %n)

"#ter%ture of str%tegy( Ch%!ter ? sets out the nee) for org%n#s%t#ons to e %"e to%!!r%#se the#r !otent#%" for "e%rn#ng %n) $re%t#'#ty %n) then $r#t#$%""y e'%"u%tes 0y

$ontr#ut#on( n%0e"y( the Kno/"e)ge-Cre%t#'#ty A!!r%#s%" The Kno/"e)ge-

Cre%t#'#ty A!!r%#s%" re!resents % too" /h#$h 0%y %ss#st org%n#s%t#ons #n %ssess#ng

the#r $%!%#"#ty for "e%rn#ng %n) .no/"e)ge $re%t#on

The thes#s $on$"u)es y re'#s#t#ng the rese%r$h %#0s %n) o@e$t#'es %n) !ro'#)#ng

% su00%ry of the $ontr#ut#on of 0y /or. to the theory %n) !r%$t#$e of str%teg#$

0%n%ge0ent Th#s f#n%" $h%!ter %"so %tte0!ts to #)ent#fy %n) )#s$uss the "#0#t%t#ons

of the rese%r$h %n) #ts $ontr#ut#on %n) goes on to #)ent#fy the !otent#%" for further

rese%r$h #n the %re%

8/13/2019 Gs Thesis

16/104

Chapter &

%esearch !ethodolog"

&.1 Introduction

The !ur!ose of th#s $h%!ter #s to $ons#)er so0e of the 0etho)o"og#$%" #ssues #n 0y

/or. %n) ho/ they h%'e een %))resse) ro0 % 0etho)o"og#$%" !ers!e$t#'e %

PhD y !u"#$%t#on #s #ne'#t%"y )#fferent fro0 % 0ore $on'ent#on%" PhD In the

$%se of % 0ore $on'ent#on%" PhD 0%ny of the 0etho)o"og#$%" #ssues /#"" h%'e

surf%$e) e%r"y #n the rese%r$h %n) %re %))resse) throughout the !ro@e$t( /#th on"y

0#nor %)@ust0ents 0%)e %t the en) The o!!os#te #s true #n the $%se of % PhD y

!u"#$%t#on The 0etho)o"og#$%" #ssues 0%y often on"y e $ons#)ere) su!erf#$#%""y

%s e%$h !#e$e of rese%r$h #s un)ert%.en 2%ny of the #ssues of !h#"oso!hy(

e!#ste0o"ogy %n) onto"ogy %re on"y e>!"#$#t"y %))resse) %t the en) of the !ro$ess

or th#s re%son I )o not #nten) to un)ert%.e % )et%#"e) )#s$uss#on of the '%r#ous

)#0ens#ons of rese%r$h 0etho)o"ogy( r%ther I /#sh to e>!"%#n 0y o/n

)e'e"o!0ent%" @ourney #n the $ourse of rese%r$h#ng %n) /r#t#ng the %rt#$"es /h#$h

$o0!r#se th#s thes#s Essent#%""y 0y %!!ro%$h #s th%t of !r%g0%t#s0 #n th%t I )o not

/#sh to e $%tegor#se) or $onf#ne) y %ny !%rt#$u"%r onto"ogy or e!#ste0o"ogy I

$ert%#n"y h%'e no $on'#$t#on th%t o@e$t#'#ty #s !oss#"e or essent#%"( nor th%t %

!os#t#'#st#$ %!!ro%$h #s su!er#or to others Ne#ther $%n I e $on'#n$e) th%t see.#ng

% )egree of o@e$t#'#ty #s un)es#r%"e I %"so h%'e % e"#ef th%t 0#>e) 0etho)s

6u%nt#t%t#'e %n) u%"#t%t#'e; %re % h#gh"y !r%$t#$%" 0e%ns of #n'est#g%t#ng 0%ny

0%n%ge0ent su@e$ts As %00ers"ey 6177?F

8/13/2019 Gs Thesis

17/104

&.& %esearch Philosoph"# 2pistemolog" and Ontolog"

ro0 0y !ers!e$t#'e 0y !erson%" '#e/s on so$#%" re%"#ty r%n. eu%""y %"ongs#)e

the n%ture %n) !ur!ose of the rese%r$h to e $on)u$te) #n ter0s of )eter0#n#ng 0y

%!!ro%$h Wh#"st I h%'e so0e sy0!%thy for the !ost0o)ern#st %n) #nter!ret#'#st#$

'#e/ th%t there %re no %so"ute truths #n $o0!"e> so$#%" eh%'#our( I st#"" h%'e %

strong e"#ef th%t rese%r$h %n) theory $%n !"%y %n #0!ort%nt ro"e #n %ss#st#ng #n

#0!ro'#ng the !erfor0%n$e of org%n#s%t#ons %n) the #n)#'#)u%"s /ho 0%.e the0 u!

2y '#e/ #s th%t /h#"e the out!uts of 0%n%ge0ent rese%r$h $%n ne'er e !os#t#'#st

%n) !res$r#!t#'e( they $%n #nfor0 %n) gu#)e the %$t#ons of 0%n%gers %n)

org%n#s%t#ons In 0y $%se the !ur!ose of 0y rese%r$h #s to #nfor0 the !r%$t#$e of

0%n%ge0ent( #n the !%rt#$u"%r s!here of see.#ng to %ss#st #n enh%n$#ng the $re%t#'e

!otent#%" of org%n#s%t#ons %n) the#r %#"#ty to tr%ns"%te $re%t#'#ty #nto the#r !r%$t#$e

%n) us#ness %$t#'#ty Th#s #s the %#0 /h#$h un)er"#es 0y rese%r$h %!!ro%$h

ro0 th#s !o#nt of '#e/( #t #s unsur!r#s#ng th%t 0y %!!ro%$h h%s essent#%""y gro/n to

e 0ost he%'#"y #nf"uen$e) y !r%g0%t#s0F

4W#th the#r feet f#r0"y !"%nte) #n the groun)( !r%g0%t#sts h%'e een %t $ons#)er%"e

o))s /#th these $on'ent#on%" theoret#$%" %n) !ro$e)ur%" !ers!e$t#'es ro0 the

st%rt( the !r%g0%t#st !o#nt of )e!%rture h%s een th%t the so$#%" /or") /h%te'er

#ts "e'e"s or )#0ens#ons #s % 0%tter of !r%$t#$e5 6Se%"e et %" *++3F 3;

I sh%re the '#e/ th%t 4The re%" #s ne'er %%n)one) y the !r%g0%t#st( ut r%ther

sens#"y !ut to the test of e'ery)%y "#fe5 6Se%"e et %" *++3F3; Th#s %!!ro%$h

$o0#nes r#gour /#th % )es#re for !r%$t#$%" %n) %!!"#$%"e out$o0es %n) s#0#"%r"y

en$our%ges the use of 40%ny %n) '%r#e) 0etho)s %n) !ro$e)ure5 6Se%"e et %"

*++3F=; Wh#"st 0y %!!ro%$h )r%/s u!on % !ost0o)ern#st %n) so$#%"

$onstru$t#on#st !ers!e$t#'e th%t #t #s #n%!!ro!r#%te 4to 'et /h%t !eo!"e s%y for #ts

4%$$ur%$y5( 4re"#%#"#ty5( or 4'%"#)#ty5 6Se%"e et %"( *++3F1*7; I ne'erthe"ess th#n. th%t

r#gour )e0%n)s th%t /e e0!"oy % r%nge of 0etho)s to #)ent#fy $onf#r0%t#ons %n)

$ontr%)#$t#ons /#th#n the '#e/s %n) )%t% th%t /e g%ther #n our rese%r$h

11

8/13/2019 Gs Thesis

18/104

&.( !ode & %esearch and its !ethodological Implications

Of $ourse( %n essent#%" $o0!onent of 0y !r%g0%t#$ %!!ro%$h #s % /#sh to %)'%n$e

oth 0%n%ge0ent .no/"e)ge %n) !r%$t#$e The %)'%n$e0ent of 0%n%ge0ent

.no/"e)ge #s #0!ort%nt( %n) #t #s #0!ort%nt th%t the rese%r$h un)ert%.en #s r#gorous

6uff( *+++9 '%n A.en( *++=9 Pe#r$e( 17?+; It #s eu%""y %s #0!ort%nt th%t the

rese%r$h #s re"e'%nt to the !r%$t#$e of 0%n%ge0ent On th#s %s#s Pett#gre/ 6*++1;

%rgues th%t 0%n%ge0ent rese%r$h shou") s#0u"t%neous"y !%ss the 4)ou"e hur)"e5

of r#gour %n) re"e'%n$e( #n the sense th%t the rese%r$h shou") #nfor0 the !r%$t#$e of

0%n%gers A nu0er of /r#ters h%'e #)ent#f#e) %n) )#s$usse) the g%! et/een

0%n%ge0ent rese%r$h %n) #ts #0!%$t on !r%$t#t#oners 6G#ons et %"( 17739

Tr%nf#e") %n) St%r.ey 177,9 o)g.#nson( *++19 %n A.en( *++=; In the $ourse of

th#s )e%te these rese%r$hers 0%)e the #0!ort%nt )#st#n$t#on et/een 2o)e 1 %n)

2o)e * .no/"e)ge !ro)u$t#on 2o)e 1 .no/"e)ge !ro)u$t#on #s $h%r%$ter#se) %s

e#ng 4!ure"y %$%)e0#$ %n) 0ono-)#s$#!"#n%ry( /h#"e 2o)e * #s 0u"t#)#s$#!"#n%ry

%n) %#0s %t so"'#ng $o0!"e> %n) re"e'%nt f#e") !ro"e0s5 6'%n A.en( *++=;

By #0!"#$%t#on 2o)e * rese%r$h see.s to #nfor0 !r%$t#$e %n) !erfor0%n$e #n the

f#e") of 0%n%ge0ent %n) th#s h%s een fun)%0ent%" to %"" 0y /or. 2o)e *

rese%r$h h%s the t/#n !ur!ose of % r#gorous %!!ro%$h to the $on)u$t of the

rese%r$h %n) eu%""y reu#res the !ro)u$t#on of 4.no/"e)ge for %$t#on5 6Argyr#s(

177!"%n%tory s$#en$es 6eg n%tur%" s$#en$es %n) so$#o"ogy; %n) the 0%#n !ur!ose #s

to 4)es$r#e( e>!"%#n %n) !re)#$t5 2o)e * rese%r$h( on the other h%n)( #s 0ore

#ns!#re) y the 4)es#gn s$#en$es5 "#.e 0e)#$#ne %n) eng#neer#ng( /here the 0%#n

!ur!ose #s to )e'e"o! .no/"e)ge th%t /#"" e use) y !rofess#on%"s #n the )es#gn of

so"ut#ons to re%" !ro"e0s Stonehouse %n) Pe0erton 6*++*; !o#nt out the

#00%tur#ty of str%tegy %s % )#s$#!"#ne #n th%t #ts too"s %n) te$hn#ues %re not /#)e"y

e0!"oye) y !r%$t#t#oners( !%rt#$u"%r"y #n s0%""er enter!r#ses %n) e'en #n "%rger

enter!r#ses us%ge #s !%t$hy

12

8/13/2019 Gs Thesis

19/104

In us#ness %n) 0%n%ge0ent there h%s een % re"u$t%n$e %0ong %$%)e0#$s to

0%.e gener%"#s%t#ons %n) !res$r#!t#ons for eh%'#our Th#s !%rt"y %r#ses fro0 %

re$ogn#t#on of the $o0!"e> n%ture of so$#%" org%n#s%t#ons /h#$h 0%y /e"" !re$"u)e

!res$r#!t#ons for %$t#on ut nee) not !re$"u)e gu#)%n$e %n) %)'#$e There #s %"so %

n%tur%" s$e!t#$#s0 of 0%n%ge0ent "#ter%ture( often ter0e) %#r!ort "ounge "#ter%ture(/h#$h 0%.es o") %ssert#ons ut o'#ous"y "%$.s r#gour 6Burre""( 17,7;

Perh%!s /h%t #s reu#re) #s % s"#ght"y 0ore $onser'%t#'e %!!ro%$h /here

0%n%ge0ent rese%r$h %n) theory #nfor0( r%ther th%n !res$r#e( 0%n%ge0ent

)e$#s#ons Th#s #s 'ery 0u$h #n "#ne /#th rese%r$h #n the 4)es#gn s$#en$es5 Where%s

rese%r$h #n the 4n%tur%" s$#en$es5 #s %se) u!on see.#ng 4truth5 #n the sense of

u#")#ng sh%re) e>!"%n%t#on %n) un)erst%n)#ng of ho/ %n) /hy th#ngs h%!!en( the

4)es#gn s$#en$es5 go eyon) th#s #nto see.#ng to !ro)u$e .no/"e)ge /h#$h /#""

#nfor0 %n) %ss#st )e$#s#on-0%.#ng( !ro"e0 so"'#ng( %n) %$t#on R%ther th%n

see.#ng to for0 %"gor#th0#$ ru"es for !res$r#!t#'e )e$#s#on-0%.#ng #t #s 0ore usefu"

to )e'e"o! gu#)e"#nes /h#$h %re heur#st#$ #n n%ture %n) %$t %s )es#gn e>e0!"%rs

6'%n A.en( *++=; Su$h heur#st#$ gu#)e"#ne ru"es 0e%n th%t 0%n%ge0ent

!r%$t#t#oners $%n %rr#'e %t so"ut#ons to the#r !ro"e0s /h#$h %re #nfor0e) y the

rese%r$h( theor#es %n) e>!er#en$e of other !r%$t#t#oners %n) %$%)e0#$s #n the#r

%re% 6'%n A.en( *++=;

or su$h heur#st#$s to e '%"u%"e they 0ust e groun)e) #n r#gorous rese%r$h %n)(

eu%""y( #n 0%n%ge0ent !r%$t#$e In other /or)s there 0ust e so0e %tte0!t to

g%uge the effe$t#'eness of the heur#st#$ gu#)e"#nes through test#ng /#th#n

org%n#s%t#ons Th#s #0!"#es th%t !r%$t#t#oners h%'e tr#e) %n) %!!"#e) the heur#st#$s #n

the f#e") %n) th%t the#r e>!er#en$es %re then use) for #n$or!or%t#on #nto %n)

0o)#f#$%t#on of the heur#st#$s In th#s /%y the )e'e"o!0ent of the heur#st#$s $%n e

seen %s % "og#$%" %n) #n$re0ent%" !ro$ess 6'%n A.en( *++=; It /#"" e$o0e e'#)ent

th%t r#gour( !r%$t#$%" test#ng %n) e'%"u%t#on %re essent#%" to 0y rese%r$h %s #s the

f%$t th%t the out!ut #s of !r%$t#$%" '%"ue to 0%n%gers %n) 0%y #nfor0 the#r

eh%'#our %n) %$t#ons

13

8/13/2019 Gs Thesis

20/104

&.+ %esearch !ethods

The t#0e !er#o) o'er /h#$h 0y rese%r$h h%s een $on)u$te) %n) #ts ro%) s$o!e

suggests th%t % r%nge of 0etho)s /#"" h%'e een e0!"oye) Th#s #s #n)ee) the

$%se ut the 0etho)s use) h%'e een 0ore #nf"uen$e) y % )es#re for r#gour

together /#th % e"#ef th%t )#fferent 0etho)s %re 0ore %!!ro!r#%te for g%ther#ng

)#fferent ty!es of '#e/s( )%t%( !ers!e$t#'es %n) #nfor0%t#on We 617??; %rgues

th%t rese%r$hers often use % '%r#ety of 0etho)s to tr#%ngu"%te the#r /or. %n) further

$onf#r0 the#r #)e%s

Hu%nt#t%t#'e 0etho)s h%'e the %)'%nt%ge of 0%.#ng #t !oss#"e to ot%#n )%t%

/h#$h g#'es % 0%$ro "e'e" '#e/ of % su@e$t #n % re"%t#'e"y short !er#o) of t#0e

$o0#ne) /#th %n e%se of !ro$ess#ng %n) %n%"ys#ng On the other h%n) they %re

f%r "ess effe$t#'e %t % 0#$ro "e'e" #n g%#n#ng #n)#'#)u%" '#e/s %n) the sut"et#es th%t

"#e eh#n) the0 Den:#n %n) L#n$o"n 0%.e %n #0!ort%nt )#st#n$t#onF

Both u%nt#t%t#'e %n) u%"#t%t#'e rese%r$hers %re $on$erne) /#th the #n)#'#)u%"5s

!o#nt of '#e/ o/e'er( u%"#t%t#'e #n'est#g%tors th#n. they $%n get $"oser to the

%$tor5s !ers!e$t#'e through )et%#"e) #nter'#e/#ng %n) oser'%t#on They %rgue th%t

u%nt#t%t#'e rese%r$hers %re se")o0 %"e to $%!ture the#r su@e$ts5 !ers!e$t#'es

e$%use they h%'e to re"y on 0ore re0ote( #nferent#%" e0!#r#$%" 0etho)s %n)

0%ter#%"s 6Den:#n %n) L#n$o"n( *+++F 1+;

Perh%!s 0ore #0!ort%nt"y( 4u%nt#t%t#'e %n) u%"#t%t#'e )%t% nee) to e tre%te) %s

ro%)"y $o0!"e0ent%ry( though not ne$ess%r#"y %s $o0!%t#"eM5 6Den:#n( 178+;

They !ro'#)e )#fferent !ers!e$t#'es /h#$h 0%y or 0%y not e $o0!"e0ent%ry ut

$ert%#n"y 0%.e for etter un)erst%n)#ng

2y %!!ro%$h to rese%r$h h%s $ert%#n"y e'o"'e) o'er t#0e ut I st#"" h%'e % e"#ef

th%t % 0#> of 0etho)s g#'e )#fferent !ers!e$t#'es %n) she) "#ght on % s#tu%t#on #n

)#fferent /%ys %s /e"" %s $ontr#ut#ng to the r#gour of the rese%r$h I sh%re

%00ers"ey5s 6177?F

8/13/2019 Gs Thesis

21/104

61; tr#%ngu"%t#on or $orroor%t#on of u%nt#t%t#'e )%t% through u%"#t%t#'e )%t%

%n) '#$e 'ers%

6*; f%$#"#t%t#on of $o""e$t#on of one ty!e of )%t% y %nother 6#nter'#e/s to he"!

)es#gn % uest#onn%#re et$;6 of

u%nt#t%t#'e %n) u%"#t%t#'e %!!ro%$hes The rese%r$h u!on /h#$h Stonehouse %n)

Pe0erton 61777;( Pe0erton %n) Stonehouse( Stonehouse et %" 6*++1;(

Stonehouse %n) Pe0erton 6*++*;( Stonehouse %n) Pe0erton 6*++=; %n)

2#no$h% %n) Stonehouse 6*++?; #s %"" essent#%""y 0#>e) 0etho) %se)

Ref"e$t#ng on 0y %!!ro%$h to rese%r$h h%s een fun)%0ent%" to 0y )e'e"o!0ent

%s % rese%r$her I e"#e'e th%t 0y !r%g0%t#$ %!!ro%$h to rese%r$h #s !%rt#$u"%r"y

%!!ro!r#%te to 0y /#sh to $on)u$t rese%r$h /h#$h #s r#gorous %n) 0%.es % re"e'%nt

$ontr#ut#on to oth 0%n%ge0ent theory( %n) fro0 0y !ers!e$t#'e( !otent#%""y to

0%n%ge0ent !r%$t#$e

1)

8/13/2019 Gs Thesis

22/104

Chapter (

3ature and Purpose of 'trategic !anagement

(.1 Introduction

The un#fy#ng thre%) of th#s thes#s #s str%teg#$ 0%n%ge0ent Th#s $h%!ter e>!"ores

the n%ture( !ur!ose %n) e'o"ut#on of str%teg#$ 0%n%ge0ent( together /#th % r%nge

of )#fferent %!!ro%$hes /h#$h $%n e %)o!te) to #t It then e>%0#nes the nee) for

%)o!t#ng % 0ore ho"#st#$ %!!ro%$h to the su@e$t %n) the nee) to $ons#)er str%teg#$

s#tu%t#ons fro0 % r%nge of )#fferent !ers!e$t#'es %n) through % r%nge of theoret#$%"

"enses so %s to g%#n % etter un)erst%n)#ng of the #ssues #n'o"'e) %n) the %$t#ons

reu#re) It then $on$"u)es y $r#t#$%""y e'%"u%t#ng 0y $ontr#ut#on to the

)e'e"o!0ent of the su@e$t %n) #ts $on$e!ts %n) too"s

(.& 'trateg" 4 Thinking# ecisions# *eadership and !anagement

A"" so$#%" org%n#s%t#ons( /hether us#ness or other/#se( e>#st for % s!e$#f#$ set of

e>!"#$#t %n) #0!"#$#t !ur!oses %n) re"%te) go%"s or us#nesses the !ur!oses %n)

go%"s $entre on !ro'#)#ng goo)s or ser'#$es to $usto0ers #n % /%y /h#$h #s

!rof#t%"e The !r#0%ry fo$us for us#ness #s on %$h#e'#ng !rof#t through

!erfor0%n$e #0!ro'e0ent /h#$h resu"ts #n /h%t 0#ght e ter0e) 4$o0!et#t#'e

%)'%nt%ge5 or 4su!er#or !erfor0%n$e5 At the s%0e t#0e there #s #n$re%s#ng

!ressure on !u"#$ se$tor %n) not for !rof#t org%n#s%t#ons( "#.e the he%"th ser'#$e(

e)u$%t#on %n) $h%r#t#es( to !ro'#)e h#gh u%"#ty ser'#$e %t the s%0e t#0e %s 0%.#ng

eff#$#ent use of the#r resour$es They str#'e to %$h#e'e $o0!et#t#'e %)'%nt%ge or

'%"ue for 0oney ser'#$es $%n e reg%r)e) %s the )o0%#n of str%tegy %n) str%teg#$

0%n%ge0ent An org%n#s%t#on5s str%tegy $%n e reg%r)e) %s the )eter0#n%t#on of

%n org%n#s%t#on5s "ong ter0s o@e$t#'es %n) go%"s %n) 0e%ns 6!"%ns( !o"#$#es %n)

%$t#ons; through /h#$h #t see.s to %$h#e'e the0

The #nter$h%nge%"e us%ge #n the "#ter%ture of str%tegy $%n $%use $ons#)er%"e

%0#gu#ty %n) $onfus#on It #s therefore ne$ess%ry to #)ent#fy %n) )#st#ngu#sh

et/een so0e of the .ey ter0s #n the "#ter%ture( s!e$#f#$%""y( str%teg#$

1

8/13/2019 Gs Thesis

23/104

0%n%ge0ent( str%teg#$ th#n.#ng %n) "e%)ersh#!( str%teg#$ "e%rn#ng %n) str%teg#$

!"%nn#ng 6Stonehouse %n) Pe0erton( *++*;

&trategic management#s !erh%!s est reg%r)e) %s % $o""e$t#on of theor#es(

fr%0e/or.s( too"s %n) te$hn#ues( )r%/n fro0 rese%r$h %n) us#ness !r%$t#$e(/h#$h %re #nten)e) to %ss#st 0%n%gers #n un)erst%n)#ng the !os#t#on %n)

!erfor0%n$e of the#r org%n#s%t#on %s % %s#s for the )e'e"o!0ent %n)

#0!"e0ent%t#on of str%teg#es %n) !"%ns )es#gne) to )e"#'er sust%#ne)

#0!ro'e0ents #n org%n#s%t#on%" !erfor0%n$e Su$h #0!ro'e0ents )e!en) u!on

strategic t'in(ing and leaders'i$/h#$h re"%te to the %#"#ty of %n org%n#s%t#on5s

"e%)ers to "oo. $re%t#'e"y %n) str%teg#$%""y #nto the future( thus )er#'#ng the '#s#on

%n) 4str%teg#$ #ntent5 /h#$h %$t %s the %s#s of $o0!et#t#'e %)'%nt%ge 6Pr%h%"%)

%n) %0e"( 177+; Su$h str%teg#$ th#n.#ng #s %se) u!on str%teg#$ "e%rn#ng( /h#$h

#s $on$erne) /#th the !ro$esses y /h#$h "e%)ers %n) org%n#s%t#ons "e%rn %out

the0se"'es /h#$h( #n turn( for0 the %s#s of the ne/ .no/"e)ge %n) $re%t#'#ty u!on

/h#$h su!er#or !erfor0%n$e #s %se) 6Non%.%( 1771;

&trategic $lanning#s the !%rt of str%teg#$ 0%n%ge0ent /h#$h %tte0!ts to for0%"#:e

str%teg#$ th#n.#ng #nto o@e$t#'es( str%teg#es %n) o!er%t#on%" !"%ns /h#$h %re

)es#gne) to %$h#e'e org%n#s%t#on%" o@e$t#'es Str%teg#$ !"%nn#ng h%s een

$r#t#$#:e) y( %0ong others 2#nt:erg 6177

8/13/2019 Gs Thesis

24/104

(.( Competitive Advantage

Perh%!s the 0ost #0!ort%nt o@e$t#'e of str%teg#$ 0%n%ge0ent %n) str%tegy #s the

%$h#e'e0ent of $o0!et#t#'e %)'%nt%ge Co0!et#t#'e %)'%nt%ge #s the %#"#ty of %n

org%n#s%t#on to out!erfor0 #ts $o0!et#tors Sust%#n%"e $o0!et#t#'e %)'%nt%ge #s

the %#"#ty of the org%n#s%t#on to out!erfor0 #ts r#'%"s o'er % sust%#ne) !er#o) of

t#0e There #s no s#ng"e 0e%sure of $o0!et#t#'e %)'%nt%ge Inste%) there %re

se'er%" #n)#$%tors /h#$h( #f '#e/e) o'er t#0e( ser'e %s e'#)en$e th%t %n

org%n#s%t#on #s %$h#e'#ng sust%#ne) su!er#or !erfor0%n$e These #n)#$%tors

6Stonehouse et %"( *++3; #n$"u)eF

Br%n) %/%reness %n) $usto0er !er$e!t#on /#)es!re%) %/%reness of %

r%n) %0ong $onsu0ers %n) % !er$e!t#on th%t #t !ro'#)es etter 4'%"ue for

0oney5 th%n $o0!et#tors

Prof#t%#"#ty %o'e the #n)ustry %'er%ge

Pr#$#ng e'#)en$e of the %#"#ty to $o00%n) % !re0#u0 !r#$e

2%r.et sh%re % "%rger 0%r.et sh%re th%n $o0!et#tors

Return on #n'est0ent %o'e the #n)ustry %'er%ge

Eff#$#en$y "o/er un#t $osts th%n $o0!et#tors

It #s #0!ort%nt to re$ogn#:e th%t %n org%n#s%t#on reg%r)e) %s !ossess#ng

$o0!et#t#'e %)'%nt%ge 0%y or 0%y not %$h#e'e 0%r.et "e%)ersh#! #n ter0s of %""

these #n)#$%tors s#0u"t%neous"y( #t #s "#.e"y to e %0ong the 0%r.et "e%)ers #n %

0%@or#ty of $%ses 2ore #0!ort%nt"y( th#s "e%)ersh#! /#"" e %!!%rent o'er %

sust%#ne) !er#o) of t#0e

(.(.1 Achieving Competitive Advantage

A"though the 0%#n r%#son )5etre of str%tegy %n) str%teg#$ 0%n%ge0ent #s to !ro'#)e

e>!"%n%t#ons of ho/ org%n#s%t#ons $%n %$h#e'e %n) sust%#n su!er#or !erfor0%n$e(

there #s no un#'ers%" %gree0ent %0ong theor#sts( nor %0ong !r%$t#t#oners( %s to

ho/ th#s $%n e %$$o0!"#she) Th#s $%n e e>!"%#ne) #n ter0s of the youth of

str%tegy %s % )#s$#!"#ne It #s ne$ess%ry to e>!"ore the '%r#ous s$hoo"s of thought

1

8/13/2019 Gs Thesis

25/104

/#th#n the )#s$#!"#ne #n or)er to g%#n % gre%ter un)erst%n)#ng of /h%t rese%r$hers

%n) !r%$t#t#oners suggest 0%y )e"#'er $o0!et#t#'e e)ge

(.+ Approaches to 'trateg" and 'trategic !anagement

The or#g#ns of str%tegy %s %n %$%)e0#$ )#s$#!"#ne $%n e foun) #n the 17?+s It h%s

)#'erse roots #n % r%nge of )#s$#!"#nes /h#$h #n$"u)e #n)ustr#%" e$ono0#$s(

0%r.et#ng( f#n%n$e( !sy$ho"ogy( the eh%'#our%" s$#en$es %n) 0#"#t%ry h#story %n)

t%$t#$s 6Stonehouse %n) Sno/)on( *++8F *=8; It #s therefore not sur!r#s#ng th%t

)e%te $ont#nues on the su@e$t of #ts .ey $on$e!ts %n) fr%0e/or.s Rese%r$hers

h%'e ten)e) to %!!ro%$h the su@e$t fro0 the !ers!e$t#'e of one or other of

str%tegy5s 4root5 )#s$#!"#nes or e>%0!"e( Professor 2#$h%e" Porter( one of the

su@e$t5s foun)#ng f%thers h%s %n %!!ro%$h /h#$h #s )r%/n fro0 #n)ustr#%"

e$ono0#$s( /h#"e Professor enry 2#nt:erg %)o!ts %n %!!ro%$h /h#$h #s roote)

#n 0%n%ge0ent %n) the eh%'#our%" s$#en$es

Se'er%" /r#ters h%'e %tte0!te) to $re%te ty!o"og#es of str%teg#$ 0%n%ge0ent

2$K#ern%n 61778; #)ent#f#es four /e"" est%"#she) %!!ro%$hes to str%teg#$

0%n%ge0entF the 4Pres$r#!t#'e A!!ro%$h5 6%"so $%""e) the 4De"#er%te5 or 4P"%nne)

A!!ro%$h5;9 the 4E0ergent 6or Le%rn#ng; A!!ro%$h59 the 4Co0!et#t#'e Pos#t#on#ng

A!!ro%$h59 %n) the 4Resour$e( Co0!eten$e %n) C%!%#"#ty A!!ro%$h5 2#nt:erg

et al) 6177,;( #n the &trategy &afari( #)ent#fy ten s$hoo"s of str%tegyF the Des#gn

S$hoo"9 the P"%nn#ng S$hoo"9 the Pos#t#on#ng S$hoo"( the Entre!reneur#%" S$hoo"9

the Cogn#t#'e S$hoo"9 the Le%rn#ng S$hoo"9 the Po/er S$hoo"9 the Cu"tur%" S$hoo"9

the En'#ron0ent%" S$hoo"9 %n) the Conf#gur%t#on S$hoo" or the !ur!oses of th#s

thes#s the 2$K#ern%n ty!o"ogy #s re'#e/e) %n) e0!"oye)( on the %s#s of the $"%r#ty

/#th /h#$h #t e>!"%#ns )e'e"o!0ents /#th#n the su@e$t A f#fth %!!ro%$h( %)'%n$e)

y the %uthor( /#"" e $ons#)ere) #n the $on$"u)#ng st%ges of th#s $h%!ter

The "#ter%ture of str%teg#$ 0%n%ge0ent so0et#0es !resents these s$hoo"s of

thought %s e#ng ent#re"y )#st#n$t %n) $ontr%)#$tory Th#s !re0#se #s e>!"ore) "%ter

#n th#s $h%!ter together /#th % '#e/ th%t the s$hoo"s 0%y( #n re%"#ty( e seen %s

#nter)e!en)ent %n) $o0!"e0ent%ry( !ro'#)#ng )#fferent !ers!e$t#'es %n) fr%0es

1

8/13/2019 Gs Thesis

26/104

through /h#$h str%teg#$ s#tu%t#ons $%n e '#e/e) %n) through /h#$h str%teg#$

)e$#s#on-0%.#ng $%n e %ss#ste) E%$h s$hoo" !ro'#)es )#fferent too"s %n)

fr%0e/or.s /h#$h %#) 0%n%gers #n /h%t /e $%n $%"" str%teg#s#ng the 0%.#ng %n)

)o#ng of str%tegy

It #s ne$ess%ry to e>%0#ne the .ey th#n.#ng( #ssues %n) $on$e!ts of e%$h s$hoo"( #n

or)er to e'%"u%te the#r $ontr#ut#ons to our un)erst%n)#ng of ho/ org%n#s%t#ons 0%y

%$h#e'e %n) sust%#n $o0!et#t#'e %)'%nt%ge

(.+.1 The Planning 'chool

The 4!"%nn#ng s$hoo"5 of str%teg#$ th#n.#ng #s often referre) to /#th the %"tern%t#'e

ter0s of the !res$r#!t#'e or )e"#er%te or !"%nne) %!!ro%$h It #s )e'e"o!e) fro0

the '#e/ th%t $o0!et#t#'e %)'%nt%ge #s est %$h#e'e) through % !ro$ess of )et%#"e)

"ong ter0 !"%nn#ng /h#$h see.s to %$h#e'e % f#t et/een the str%tegy of the

us#ness %n) the en'#ron0ent #n /h#$h #t o!er%tes A$$or)#ng to Stonehouse et %"

6*++3; Th#s %!!ro%$h '#e/s str%teg#$ 0%n%ge0ent %s % h#gh"y syste0%t#se) %n)

)eter0#n#st#$ !ro$ess 6Ansoff( 17?=9 Argent#( 1783( An)re/s( 17,8;( /#th e%$h

st%ge of the str%teg#s#ng !ro$ess e#ng h#gh"y stru$ture) %n) !res$r#e)

Of $ourse( there %re $ert%#n o'#ous %)'%nt%ges of syste0%t#:e) !"%nn#ng(

es!e$#%""y #n "%rge $o0!"e> org%n#s%t#ons /here fo$us( $o-or)#n%t#on %n)

0%n%ge0ent of %$t#'#t#es %n) resour$es %re )#ff#$u"t ut %so"ute"y essent#%" to

su$$essfu" !erfor0%n$e 6Stonehouse et %"( *++3( Stonehouse %n) Pe0erton(

*++*; P"%nn#ng reu#res the stru$tur#ng of $o0!"#$%te) )%t% %n) #nfor0%t#on( #t

ensures th%t there %re $"e%r"y )ef#ne) %n) un)erstoo) org%n#s%t#on%" o@e$t#'es

throughout the us#ness( #t f%$#"#t%tes the sett#ng of t%rgets %n) #n)#$%tors %g%#nst

/h#$h !erfor0%n$e $%n e 0on#tore)( %n) #t gener%""y %ss#sts #n the fun$t#ons of

$o-or)#n%t#ng %n) 0%n%g#ng the us#ness

2ost 'o$%" %0ong the $r#t#$s of the !"%nn#ng s$hoo" h%s een enry 2#nt:erg

62#nt:erg( 177+( 177

8/13/2019 Gs Thesis

27/104

str%teg#$ !"%nn#ng %n) th%t there #s often % s#gn#f#$%nt g%! et/een !"%nne) %n)

%$tu%" 64re%"#se)5; str%tegy out$o0es There %re se'er%" f%$tors /h#$h 0%y %$$ount

for su$h % 4g%!5 #n$"u)#ng the $o0!"e>#ty %n) )yn%0#s0 of the us#ness

en'#ron0ent 6St%$ey( *+++; /h#$h $%n e 'ery $h%ot#$ %n) $o0!"e> The

#nfor0%t#on u!on /h#$h !"%nn#ng #s %se) $%n( %$$or)#ng"y( e un$ert%#n %n) often#n%$$ur%te To %)o!t r#g#)"y )ef#ne) !"%ns %se) u!on #n$o0!"ete #nfor0%t#on 0%y

resu"t #n f"%/e) )e$#s#on 0%.#ng A$$or)#ng"y( str%teg#es 0ust e %)%!te) to t%.e

%)'%nt%ge of un%nt#$#!%te) o!!ortun#t#es %n) to )e%" /#th un%nt#$#!%te) thre%ts

The !res$r#!t#'e !%r%)#g0 of str%teg#$ 0%n%ge0ent h%s een $r#t#$#:e) %s e#ng

unre%"#st#$ !%rt#$u"%r"y #n t#0es of r%!#) %n) turu"ent $h%nge Ne'erthe"ess( the

nee) to set "ong-ter0 o@e$t#'es %n) to for0u"%te ro%) !"%ns %n) !o"#$#es #s

ne$ess%ry for the sur'#'%" %n) !rogress#on of %ny org%n#s%t#on Det%#"e) %n)

#nf"e>#"e "ong ter0 !"%nn#ng #s( on the other h%n)( unne$ess%ry %n) often

$ounter!ro)u$t#'e Co0!et#t#'e %)'%nt%ge $%n e g%#ne) y e#ng o!!ortun#st#$

%n) t%.#ng %)'%nt%ge of unforeseen o!!ortun#t#es

(.+.& The Competitive Positioning 'chool

The $o0!et#t#'e !os#t#on#ng !%r%)#g0( )r%/#ng "%rge"y on the /or. of Porter 617,+

%n) 17,=; )o0#n%te) str%teg#$ 0%n%ge0ent #n the 17,+s It %"so e0!h%s#ses the

#)e% of 4str%teg#$ f#t5 et/een the org%n#s%t#on %n) #ts en'#ron0ent so %s to %$h#e'e

$o0!et#t#'e %)'%nt%ge( ter0#ng th#s %s 4$o0!et#t#'e !os#t#on#ng5 The %!!ro%$h #s

often )es$r#e) %s 4outs#)e-#n5 %s the #n#t#%" e0!h%s#s #s on %n%"ys#s of the

en'#ron0ent efore )eter0#n#ng ho/ to %$h#e'e % str%teg#$%""y )es#r%"e !os#t#on

Porter5s fr%0e/or.s( the fi*e forces 6use) for %n%"ys#ng the org%n#s%t#on5s

$o0!et#t#'e en'#ron0ent; generic strategy 6use) to #)ent#fy sour$es of $o0!et#t#'e

%)'%nt%ge;%n)t'e *alue c'ain 6use) to %n%"yse the %$t#'#t#es %n) resour$es of the

org%n#s%t#on; st#""( 0ore th%n *+ ye%rs %fter the#r )e'e"o!0ent y Porter( !ro'#)e

so0e of the 0ost usefu" too"s of str%teg#$ %n%"ys#s #n use to)%y

The f#'e for$es fr%0e/or. 6Porter( 17,+; #s % too" /h#$h %ss#sts 0%n%gers of %

us#ness #n the %ssess0ent ofF

21

8/13/2019 Gs Thesis

28/104

oth the %ttr%$t#'eness 6!otent#%" !rof#t%#"#ty; of #ts #n)ustry %n) #ts $o0!et#t#'e

!os#t#on /#th#n th%t #n)ustry through %n e'%"u%t#on of the strength of the thre%t of

ne/ entr%nts to the #n)ustry9 the thre%t of sust#tute !ro)u$ts9 the !o/er of uyers

or $usto0ers9 the !o/er of su!!"#ers 6to f#r0s #n the #n)ustry;9 %n) the )egree %n)n%ture of r#'%"ry %0ong us#nesses #n the #n)ustry A$$or)#ng to Porter( the

$otential for % f#r0 to e !rof#t%"e #s neg%t#'e"y %sso$#%te) /#th #n$re%se)

$o0!et#t#on( "o/er %rr#ers to entry( % "%rge nu0er of sust#tutes( #n$re%se)

%rg%#n#ng !o/er of $usto0ers %n) su!!"#ers 6Stonehouse %n) Sno/)on( *++8F

*=8;

o""o/#ng th#s %n%"ys#s of the $o0!et#t#'e en'#ron0ent Porter 617,=; suggests th%t

%n org%n#s%t#on $%n )e'e"o! % gener#$ $o0!et#t#'e str%tegy of 4)#fferent#%t#on5 or

4$ost "e%)ersh#!5( $%!%"e of )e"#'er#ng su!er#or !erfor0%n$e y %!!ro!r#%te"y

!os#t#on#ng the f#r0 #n #ts #n)ustry A 4$ost "e%)ersh#! str%tegy5 #s %se) u!on e#ng

the "o/est $ost !ro)u$er of % !ro)u$t or ser'#$e In th#s $%se the f#r0 e%rns %o'e

%'er%ge !rof#ts y $h%rg#ng % s#0#"%r !r#$e to $o0!et#tors ut #n$urr#ng 0u$h "o/er

$osts of !ro)u$t#on A 4)#fferent#%t#on str%tegy5 reu#res the f#r0 to $re%te the

!er$e!t#on th%t #ts !ro)u$t or ser'#$e #s su!er#or to th%t of $o0!et#tors( through

f%$tors "#.e )es#gn( r%n)( u%"#ty( !erfor0%n$e( so th%t the f#r0 $%n $h%rge %

!re0#u0 !r#$e for #ts !ro)u$ts Th#s /#"" %g%#n en%"e % f#r0 %)o!t#ng su$h %

str%tegy to e%rn %o'e %'er%ge !rof#ts Both the $osts "e%)ersh#! str%tegy %n) the

)#fferent#%t#on str%tegy $%n e e0!"oye) %$ross %"" 0%r.et seg0ents 6ro%)-%se)

str%tegy; or they $%n e )e!"oye) #n % s#ng"e 0%r.et seg0ent #n the for0 of % fo$us

str%tegy A$$or)#ng to Porter 617,=;( f%#"ure to %)o!t )#fferent#%t#on or $ost

"e%)ersh#! str%tegy /#"" resu"t #n $o0!et#t#'e f%#"ure %s the f#r0 /#"" e 4stu$. #n the

0#))"e5( #n ter0s of $o0!et#t#'e !os#t#on %n) so e un%"e to %$h#e'e su!er#or

!erfor0%n$e

The f#n%" !"%n. of Porter5s th#n.#ng "#es /#th#n the '%"ue $h%#n fr%0e/or. Porter

617,=; %rgues th%t f#r0s see. to %)) '%"ue to the #n!uts to the#r !ro$esses so th%t

the f#n%" '%"ue of the out!uts 6!ro)u$ts; e>$ee)s the '%"ue of the resour$es use) #n

the#r $re%t#on( so resu"t#ng #n !rof#t A$$or)#ng to Stonehouse et %" 6*++3;

22

8/13/2019 Gs Thesis

29/104

Co0!et#t#'e %)'%nt%ge )e!en)s u!on the %#"#ty of the f#r0 to org%n#:e #ts

resour$es %n) '%"ue %))#ng %$t#'#t#es #n % /%y /h#$h #s su!er#or to #ts $o0!et#tors

%"ue $h%#n %n%"ys#s #s % te$hn#ue )e'e"o!e) y Porter 617,=; for un)erst%n)#ng

% f#r0s '%"ue %))#ng %$t#'#t#es %n) the re"%t#onsh#!s et/een the0

The !ur!ose of '%"ue $h%#n %n%"ys#s #s to !er0#t 0%n%gers to #)ent#fy /here '%"ue

#s $urrent"y %))e) #n the#r f#r05s syste0 %n) /here there #s !otent#%" to %)) further

'%"ue #n the future y re$onf#gur%t#on of %$t#'#t#es In Porters fr%0e/or. '%"ue #s

%))e) %s resu"t of %$t#'#t#es %n) the "#n.%ges et/een the0 Porter )#'#)es

us#ness o!er%t#ons #nto !r#0%ry %n) su!!ort %$t#'#t#es !rimary acti*ities6#noun)

"og#st#$s( o!er%t#ons( outoun) "og#st#$s( 0%r.et#ng %n) s%"es( %n) ser'#$e; %re

those /h#$h )#re$t"y $ontr#ute to the !ro)u$t#on of the goo)s or ser'#$es %n) #ts

!ro'#s#on to the $usto0er &u$$ort acti*ities6f#r0 #nfr%stru$ture( hu0%n resour$e

0%n%ge0ent( te$hno"ogy )e'e"o!0ent %n) !ro$ure0ent; %re those /h#$h %#)

!r#0%ry %$t#'#t#es Through '%"ue $h%#n %n%"ys#s %n) suseuent re$onf#gur%t#on of

'%"ue %))#ng %$t#'#t#es to su!!ort #ts gener#$ str%tegy( the f#r0 $%n %$h#e'e

$o0!et#t#'e %)'%nt%ge

The f#'e for$es( gener#$ str%tegy %n) '%"ue $h%#n fr%0e/or.s re!resent !o/erfu"

too"s for 0%n%gers #n est%"#sh#ng the $o0!et#t#'e !os#t#on#ng of the#r us#ness %n)

they re!resent the $enter!#e$e of the Co0!et#t#'e Pos#t#on#ng P%r%)#g0

6Stonehouse %n) Sno/)on( *++8F *=8;

The $o0!et#t#'e !os#t#on#ng s$hoo"( %n) Porter5s /or. #n !%rt#$u"%r( h%s een

$r#t#$#:e) %s e#ng !res$r#!t#'e %n) st%t#$ #n n%ture The f#'e for$es fr%0e/or.

s#0!"y g#'es % sn%!shot %t % s#ng"e !o#nt #n t#0e( %n) $h%nges #n the us#ness

en'#ron0ent 0e%n th%t su$h %n%"ys#s #s of "#0#te) '%"ue Porter #)ent#f#es the

#n)ustry %s e#ng the s#ng"e 0ost #0!ort%nt )eter0#n%nt of !rof#t%#"#ty The )egree

of $o0!et#t#on( %s #n)#$%te) through the re"%t#'e strengths of the f#'e for$es( /#""

g#'e %n #n)#$%t#on of /h#$h #n)ustr#es %re the 0ost !rof#t%"e to o!er%te /#th#n

Other rese%r$hers 6Ru0e"t( 1771( B%)en-u""er %n) Sto!for)( 177*; h%'e !o#nte)

out th%t #n)ustry !rof#t%#"#ty 0%y not e the s#ng"e 0ost #0!ort%nt )eter0#n%nt of

the !rof#t%#"#ty of #n)#'#)u%" f#r0s /#th#n the0 The f#r0 #tse"f 0%y e %n e'en 0ore

23

8/13/2019 Gs Thesis

30/104

#0!ort%nt )eter0#n%nt of #ts !rof#t%#"#ty #gh"y !rof#t%"e f#r0s $%n e>#st #n h#gh"y

$o0!et#t#'e( %n) !erh%!s "ess !rof#t%"e( #n)ustr#es Ru0e"t 61771; foun) th%t on"y

1+< !er $ent of the !rof#t%#"#ty of us#ness un#ts $ou") e )#re$t"y e>!"%#ne) y

$ho#$e of #n)ustry so th%t f#r0 s!e$#f#$ f%$tors /ere( %rgu%"y( of gre%ter

#0!ort%n$e There %re so0e f"%/s #n th#s re%son#ng %s Ru0e"t %ttr#utes 33=!er$ent of f#r0 !rof#t%#"#ty to une>!"%#ne) f%$tors These f%$tors $ou") /e"" !ro'e to

e #n)ustry s!e$#f#$ In 1778 2$G%h%n %n) Porter $on)u$te) % ro%)er %n) 0ore

r#gorous stu)y th%n th%t of Ru0e"t %n) they $on$"u)e) th%t #t /%s #0!oss#"e to

se!%r%te the #nf"uen$e of the f#r0 fro0 $o0!et#t#'e en'#ron0ent #n /h#$h #t

o!er%tes The#r f#n)#ngs suggest th%t the #n)ustry #n /h#$h % f#r0 o!er%tes )#re$t"y

%$$ounts for 17 !er$ent of '%r#%t#on #n us#ness s!e$#f#$ !rof#ts %n)

8/13/2019 Gs Thesis

31/104

com$etences ordistincti*e ca$abilities r%ther th%n fro0 #ts en'#ron0ent6Pr%h%"%)

%n) %0e"( 177+9 %0e" %n) Pr%h%"%) 17739 St%".( E'%ns %n) Shu"0%nn( 177*9

K%y( 177!"o#t these $o0!eten$es #n %!!ro!r#%te

#n)ustr#es %n) 0%r.ets

The %!!ro%$h $%n e $r#t#$#:e) on se'er%" groun)s #rst"y( #t "%$.s the /e""

)e'e"o!e) %n%"yt#$%" fr%0e/or.s of the $o0!et#t#'e !os#t#on#ng s$hoo" 2$K#ern%n

61778; As % $onseuen$e the %!!ro%$h "%$.s the %$%)e0#$ r#gour %n) !r%$t#$%"

%!!"#$%#"#ty of #ts 0%@or r#'%"( the $o0!et#t#'e !os#t#on#ng s$hoo" It #s r%ther #s #ron#$

th%t #t #s 2#$h%e" Porter /ho )e'e"o!e) one of the 0ost usefu" too"s for #ntern%"

resour$e %n%"ys#s #n the '%"ue $h%#n 62$K#ern%n( 1778F ?7? ; Se$on)"y( #ts

#ntern%" fo$us 0%y 0e%n th%t the #0!ort%n$e of the $o0!et#t#'e en'#ron0ent #s

2)

8/13/2019 Gs Thesis

32/104

un)er est#0%te) There #s strong e'#)en$e th%t su$$essfu" org%n#s%t#ons 0ust e

sens#t#'e to $usto0er nee)s( !%y#ng $%refu" %ttent#on to the us#ness en'#ron0ent

6Pr%h%"%) %n) %0e"( 177+( N%r'er %n) S"%ter( 177+( Green"ey %n) O.te0g#"(

177?; They suggest th%t us#ness 0ust e 0%r.et )r#'en %n) sens#t#'e to

$usto0er nee)s There #s % )%nger #f su$h %n %!!ro%$h #s too #ntern%""y fo$use)th%t en'#ron0ent%" f%$tors su$h %s $usto0er nee)s( $o0!et#tor eh%'#our(

$h%nges #n te$hno"ogy 0%y not e g#'en suff#$#ent %ttent#on /hen $"e%r"y they h%'e

s#gn#f#$%nt #0!%$t on $o0!et#t#'e !erfor0%n$e 6Stonehouse et %"( *++3;

The e0!h%s#s on org%n#s%t#on%" "e%rn#ng %s % sour$e of $o0!et#t#'e %)'%nt%ge h%s

resu"te) #n rene/e) #nterest #n .no/"e)ge %s %n org%n#s%t#on%" $o0!eten$e 6Hu#nn

177*( Gr%nt 1778( S%n$he: %n) eene 1778( De0%rest( 1778; The resour$e

%se) %!!ro%$h %"so e0!h%s#ses the !otent#%" %)'%nt%ges of $o""%or%t#on

et/een org%n#s%t#ons /hose $o0!eten$es %re 0utu%""y $o0!"#0ent%ry 6S%n$he:

%n) eene( 1778;

De'e"o!0ents #n #nfor0%t#on %n) $o00un#$%t#ons te$hno"ogy h%'e tr%nsfor0e)

$o""%or%t#'e re"%t#onsh#!s so th%t $o-o!er%t#ng org%n#s%t#ons $%n e $h%r%$ter#se)

%s /h%t h%'e e$o0e .no/n %s 4'#rtu%"5 $or!or%t#ons 6D%'#)o/ %n) 2%"one 177*;

It #s therefore no "onger suff#$#ent to %n%"yse the str%teg#es of #n)#'#)u%"

org%n#s%t#ons The )yn%0#$s of "#n.e) org%n#s%t#ons %n) the#r str%teg#es 0ust e

e>%0#ne)

(.+.+ The 2mergent or *earning 'chool

The f#n%" of 2$K#ern%n5s four s$hoo"s of str%teg#$ thought #s the e0ergent or

"e%rn#ng s$hoo" 6L#n)"o0( 17=79 2#nt:erg %n) W%ters( 17,=9 2#nt:erg et %"(

177=; These /r#ters e0!h%s#:e the '#e/ th%t the )yn%0#$ %n) hy!er$o0!et#t#'e

us#ness en'#ron0ent of the "%te *+th%n) e%r"y *1st$entury #s % sour$e of

$ons#)er%"e un$ert%#nty for str%teg#sts The $onseuen$e #s th%t there /#"" %"0ost

%"/%ys e % g%! et/een the 4!"%nne)5 %n) 4re%"#se)5 str%teg#es of org%n#s%t#ons

The )yn%0#$ %n) $h%ng#ng en'#ron0ent 0e%ns th%t us#nesses 0ust $h%nge %n)

2

8/13/2019 Gs Thesis

33/104

%)%!t str%tegy #n$re0ent%""y on the %s#s of org%n#s%t#on%" "e%rn#ng Th#s %!!ro%$h

!"%ys )o/n the #0!ort%n$e %n) effe$t#'eness of str%teg#$ !"%nn#ng

The %"tern%t#'e to !"%nne) str%tegy #s then th%t str%tegy 4e0erges5 o'er t#0e

6L#n)"o0( 17=7( 2#nt:erg %n) W%ters( 17,=( 2#nt:erg( Hu#nn %n) Ghosh%"(177=; So0e /r#ters h%'e gone %s f%r %s to suggest th%t #n the f%$e of % $h%ot#$

en'#ron0ent( org%n#s%t#ons s#0!"y 0u))"e through Hu#nn5s rese%r$h 6178,;

ho/e'er( $ontr%)#$ts th#s '#e/ !ro!os#ng #nste%) th%t us#nesses %)%!t the#r

str%teg#es to $h%ng#ng en'#ron0ent%" f%$tors Th#s %!!ro%$h of e'o"'#ng str%tegy

o'er t#0e #n res!onse to $#r$u0st%n$es #s .no/n %s logical incrementalism

There #s % )%nger #n '#e/#ng 4no !"%nn#ng5 %s %n o!t#on( es!e$#%""y #n "%rge $o0!"e>

tr%nsn%t#on%" org%n#s%t#ons 2#nt:erg %n) W%ters 617,=; suggest th%t str%tegy #s

% $o0#n%t#on of )e"#er%te !"%ns %n) e0ergent %)@ust0ents o'er t#0e Log#$%"

#n$re0ent%"#s0 h%s ten)e) to e$o0e %n %0%"g%0 of !"%ns %n) #n$re0ent%"

%)%!t%t#on %s $#r$u0st%n$es reu#re

(., Contribution

(.,.1 *earning# Creativit" and )nowledge5based 'trateg"

It #s e'#)ent fro0 the !re$e)#ng )#s$uss#on of the )e'e"o!0ent of th#n.#ng #n

str%teg#$ 0%n%ge0ent th%t( %t oth the $on$e!tu%" "e'e" %n) the !r%g0%t#$ "e'e" of

us#ness( #t /ou") e he"!fu" to t%.e % ho"#st#$ '#e/ of str%tegy E%$h of the s$hoo"s

of thought g#'es % )#fferent "ens through /h#$h to e>%0#ne str%teg#$ #ssues(

!ro"e0s %n) )e$#s#ons The 0%.#ng of str%teg#$ )e$#s#ons #n the !r%$t#$%" $onte>t

of us#ness( #n f%$t( ne$ess#t%tes e>%0#n#ng #ssues %n) !ro"e0s fro0 se'er%"

)#fferent !ers!e$t#'es The $on$e!ts( too"s %n) fr%0e/or.s fro0 e%$h of thes$hoo"s of thought $%n $ontr#ute to !ro'#)#ng these %"tern%t#'e !ers!e$t#'es on %

str%teg#$ s#tu%t#on

It #s #n th#s res!e$t of r#ng#ng together the rese%r$h %n) $on$e!ts of the )#fferent

s$hoo"s #nto 0u"t#)#0ens#on%" fr%0e/or.s th%t I h%'e 0%)e 0y f#rst s#gn#f#$%nt

2

8/13/2019 Gs Thesis

34/104

$ontr#ut#on to the )e'e"o!0ent of th#n.#ng #n str%teg#$ 0%n%ge0ent %n) to

f%$#"#t%t#ng #ts use #n str%teg#$ )e$#s#on 0%.#ng #n org%n#s%t#ons

2y $ontr#ut#on "#es #n further#ng the )e'e"o!0ent of th#n.#ng #n the )#s$#!"#ne

str%teg#$ 0%n%ge0ent I h%'e $ontr#ute) to $"%r#fy#ng so0e of the 0%@or $on$e!ts#n the )#s$#!"#ne #n$"u)#ng those of $o0!et#t#'e %)'%nt%ge %n) str%teg#$ !"%nn#ng(

str%teg#$ 0%n%ge0ent( str%teg#$ th#n.#ng %n) str%teg#$ "e%)ersh#! 6Stonehouse %n)

Pe0erton( *++*; The $"%r#f#$%t#on of these $on$e!ts #s #0!ort%nt oth to the

)e'e"o!0ent of the su@e$t )#s$#!"#ne %n) to #ts e#ng e0r%$e) y 0%n%ge0ent

!r%$t#t#oners Th#s $ontr#ut#on h%s een %ug0ente) y e>!"or#ng %n) e'%"u%t#ng

the e>tent to /h#$h the %n%"yt#$%" fr%0e/or.s )e'e"o!e) y th#n.ers %n)

rese%r$hers #n the )#s$#!"#ne %re %$tu%""y e0!"oye) y !r%$t#t#oners #n the us#ness

/or") #n the#r str%teg#s#ng 6Stonehouse %n) Pe0erton( *++*; The e'#)en$e

suggests th%t( #n th#s res!e$t str%tegy #s st#"" #n #ts #nf%n$y %s )e0onstr%te) y the

"#0#te) use of the %$%)e0#$ fr%0e/or.s y str%teg#$ 0%n%ge0ent !r%$t#t#oners(

!%rt#$u"%r"y /#th#n S2Es( th%t /e foun) #n our rese%r$h

A se$on) str%n) to 0y $ontr#ut#on "#es #n he"!#ng to e'o"'e % ho"#st#$ %!!ro%$h to

the su@e$t %re% 6Stonehouse %n) Pe0erton( *++*9 Stonehouse %n) Sno/)on(

*++89 Stonehouse et %"( *++3; Su$h %n %!!ro%$h $o0!r#ses %"" the )#0ens#ons of

the org%n#s%t#on 6#ts resour$es( $%!%#"#t#es( $ore $o0!eten$es( str%teg#es( syste0s

%n) %$t#'#t#es; %n) #ts re"%t#onsh#!s /#th the en'#ron0ent 6$usto0ers( su!!"#ers(

$o0!et#tors( go'ern0ent( "eg#s"%t#on( te$hno"ogy et$; Pre'#ous"y the )#s$#!"#ne h%)

ten)e) to e f%$t#on%"#:e) #nto )#'ergent s$hoo"s of thought 62#nt:erg et %"(

177,%( 2$K#ern%n( 1778;

The ho"#st#$ %!!ro%$h #s )er#'e) fro0 %s!e$ts of e%$h of the s$hoo"s of thought #n

str%tegy( /h#$h h%'e een "en)e) #nto % )er#'%t#'e of the "e%rn#ng %!!ro%$h(

/h#$h $%n !erh%!s est e ter0e) the "e%rn#ng %n) .no/"e)ge-%se) %!!ro%$h to

str%teg#$ 0%n%ge0ent The roots of th#s %!!ro%$h $%n e foun) #n the /or. of

Non%.% 6Non%.%( 17719 Non%.% %n) T%.eu$h#( 177=9 Non%.% et %"( *+++9 Senge(

177+%( 177+9 De0%rest( 1778; I h%'e $ontr#ute) to the )e'e"o!0ent of th#s

%!!ro%$h #n se'er%" of 0y !u"#$%t#onsF Stonehouse %n) Pe0erton( 17779

2

8/13/2019 Gs Thesis

35/104

Stonehouse et %"( *++19 Pe0erton %n) Stonehouse( *+++9 Stonehouse %n)

Sno/)on( *++8 The $entr%" th#n.#ng of th#s %!!ro%$h #s th%t #0!ro'e)

!erfor0%n$e %n) $o0!et#t#'e %)'%nt%ge %r#se fro0 the )e'e"o!0ent y

org%n#s%t#ons of ne/ %n) su!er#or .no/"e)ge through the !ro$esses of

org%n#s%t#on%" "e%rn#ng %n) $re%t#'#ty( #n the sense of .no/"e)ge $re%t#on %n)%!!"#$%t#on I h%'e %rgue) th%tF

#t #s the .no/"e)ge-%se) %!!ro%$h th%t $urrent"y offers the est !ers!e$t#'e fro0

/h#$h to %n%"yse the )eter0#n%nts of %n #n)#'#)u%" f#r05s $o0!et#t#'e e)ge

6Stonehouse et %"( *++1F 11?;

Where%s the $o0!et#t#'e !os#t#on#ng %n) $ore $o0!eten$e 6or resour$e-%se);

%!!ro%$hes to str%tegy /ere seen %s e#ng '#rtu%""y !o"%r o!!os#tes I h%'e

%tte0!te) to )e0onstr%te th%tF

Str%tegy %n) str%teg#s#ng %re y the#r 'ery n%ture e$"e$t#$ %n) /#"" )r%/ u!on %

r%nge of '#e/!o#nts %n) )#s$#!"#nes 6Stonehouse %n) Sno/)on( *++8F *?+;

2y /or. h%s %"so h#gh"#ghte) so0e of the !%st #n%)eu%$#es of the )#s$#!"#ne #n the

$onte>t of % r%!#)"y $h%ng#ng %n) $o0!"e> en'#ron0ent The $on'ent#on%"

%!!ro%$hes to str%tegy ten)e) to e r%ther st%t#$ 6Stonehouse %n) Pe0erton(

17779 Pe0erton %n) Stonehouse( *+++( Stonehouse et %"( *++1( Stonehouse

%n) Pe0erton( *++*9 Stonehouse %n) Sno/)on( *++8; The %!!ro%$h to

str%tegy %se) u!on "e%rn#ng %n) $re%t#'#ty( %)'o$%te) throughout 0y !u"#she)

/or. %n) )e'e"o!e) #n the suseuent $h%!ters of th#s thes#s( h%s $ontr#ute) to

)e'e"o!0ent of oth % )yn%0#$ %!!ro%$h to the su@e$t %n) the )e'e"o!0ent of

%n%"yt#$%" fr%0e/or.s /h#$h %re su#t%"e for use #n % )yn%0#$ %n) $o0!"e>

en'#ron0ent

urther0ore( I h%'e %rgue) th%t $o0!et#t#'e %)'%nt%ge %r#ses fro0 the %#"#ty of %

us#ness to $re%te ne/ .no/"e)ge %n) !rote$t #ts .no/"e)ge %ssets fro0

$o0!et#tors 6Stonehouse et %"( *++1F 117; In ter0s of the !r%$t#$e of str%tegy(

2

8/13/2019 Gs Thesis

36/104

th#s *++1 %rt#$"e $ont%#ne) % 2%n%ger5s Gu#)e to u#")#ng %n) sust%#n#ng

$o0!et#t#'e %)'%nt%ge through .no/"e)ge-%se) str%tegy

#n%""y( #t h%s een oth % !r#'#"ege %n) % $h%""enge to $ontr#ute to the h#story %n)

)e'e"o!0ent of str%teg#$ 0%n%ge0ent y e'%"u%t#ng( $r#t#u#ng %n) !"%$#ng #n$onte>t the $ontr#ut#on of the f%ther of the su@e$t( Professor 2#$h%e" Porter

6Stonehouse %n) Sno/)on( *++8; I /%s %"e to )e0onstr%te th%t( )es!#te oth

'%"#) %n) #n'%"#) $r#t#$#s0s of h#s /or.( Porter5s $ontr#ut#on to the su@e$t #s /#thout

!%r%""e" to th#s !o#nt #n t#0e

3

8/13/2019 Gs Thesis

37/104

Chapter +

)nowledge# *earning and Creativit"

+.1 introduction

Th#s $h%!ter eg#ns to fo$us on .no/"e)ge( "e%rn#ng %n) $re%t#'#ty #n ter0s of the#r

ro"e %n) #0!ort%n$e #n $ontr#ut#ng to the $o0!et#t#'e %)'%nt%ge of org%n#s%t#ons

The !re'#ous $h%!ter set out so0e of the %!!ro%$hes /h#$h $%n e %)o!te) to

str%teg#$ 0%n%ge0ent %n) e>!"%#ne) 0y $ontr#ut#on to the0 %n) to/%r)s

)e'e"o!#ng % 0ore ho"#st#$ '#e/ of 0%.#ng %n) )o#ng str%tegy W#th#n th#s $h%!ter

the n%ture %n) !otent#%" of .no/"e)ge( "e%rn#ng %n) $re%t#'#ty %re e>!"ore) #n

re"%t#on to str%teg#$ 0%n%ge0ent

+.& The )nowledge56ased Approach to 'trateg"

In the "%st )e$%)e or so( rese%r$h #n the f#e") of str%tegy h%s sh#fte) #ts %ttent#on to

e>!"or#ng the ro"e of .no/"e)ge( "e%rn#ng %n) $re%t#'#ty #n %$u#r#ng %n) sust%#n#ng

$o0!et#t#'e %)'%nt%ge 6Senge( 177+%( 177+9 Non%.%( 17719 Argyr#s( 177*9

Non%.% et %"( *+++9 S.yr0e( *+++9 D%'en!ort %n) Prus%.( 177,9 Stonehouse %n)

Pe0erton( *++=9 Stonehouse %n) Pe0erton( 17779 Stonehouse( *++=;)Th#s

/or. h%s fo$use) on see.#ng to un)erst%n) the n%ture %n) str%teg#$ #0!ort%n$e ofF

.no/"e)ge

#ts $re%t#on %n) 0%n%ge0ent 6#n$or!or%t#ng org%n#s%t#on%" "e%rn#ng;

the org%n#s%t#on%" f%$tors /h#$h f%$#"#t%te or #nh##t #ts $re%t#on %n)

0%n%ge0ent

The .no/"e)ge-%se) %!!ro%$h to str%teg#$ 0%n%ge0ent #s not )#'or$e) fro0 nor

gener%""y #n $onf"#$t /#th the other s$hoo"s of thought )#s$usse) #n Ch%!ter

8/13/2019 Gs Thesis

38/104

+.( The 3ature of )nowledge

The n%ture of .no/"e)ge #s )#ff#$u"t to un)erst%n)( %n) the uest to g%#n gre%ter

un)erst%n)#ng h%s t%>e) 0%ny of the gre%test th#n.ers for $entur#es( fro0 the

%n$#ent Gree. !h#"oso!hers to the !resent t#0e It #s eyon) the s$o!e of th#s

thes#s to re'#s#t 0u$h of th#s )e%te Inste%) #t #s usefu" to su00%r#se the st%n$e

t%.en on the n%ture of .no/"e)ge throughout the !u"#$%t#ons !resente) here( so

th%t /e $%n $on$entr%te on those %s!e$ts of .no/"e)ge /h#$h %re 0ost re"e'%nt to

str%teg#$ 0%n%ge0ent In short( the fo""o/#ng uot%t#on su00%r#ses the

un)erst%n)#ng of the n%ture of .no/"e)ge /h#$h runs $ons#stent"y throughout 0y

/or.F

Kno/"e)ge #s % $o0!"e> !heno0enonF #t #s )yn%0#$ %n) $onst%nt"y )e'e"o!#ng9 #t

#s so$#%" #n n%ture %n) )e'e"o!s through the #)e%s of #n)#'#)u%"s %n) grou!s9 #t

e>#sts #n % nu0er of for0%ts #n$"u)#ng t%$#t %n) e>!"#$#t( %s /e"" %s #n)#'#)u%" %n)

org%n#s%t#on%" Wh#"e 0%ny )ef#n#t#ons %n) !ers!e$t#'es of .no/"e)ge %oun)(

fro0 %n org%n#s%t#on%" !ers!e$t#'e( the .ey e"e0ents $%n e $ryst%""#:e) #ntoF

Kno/"e)ge $ons#sts of the f%$ts( !r#n$#!"es %n) !ro$e)ures th%t go'ern the

)e'e"o!0ent %n) %$t#'#ty of the org%n#s%t#on9

Org%n#s%t#on%" .no/"e)ge #s e0o)#e) #n the $u"ture( !ro)u$tsJser'#$es(

!ro$esses( te$hno"ogy of the org%n#s%t#on9

Kno/"e)ge $%n e e>!"#$#t 6for0%"#se)( tr%ns0#tt%"e %n) e>!resse)

syste0%t#$%""y; or #0!"#$#t 6res#)#ng #n the 0#n) %n) e>!ert#se of the

#n)#'#)u%"( e#ng therefore )#ff#$u"t to %rt#$u"%te %n) sh%re;9

Ne/ .no/"e)ge $h%nges the /%y th%t the org%n#s%t#on goes %out #ts

us#ness %n) the n%ture of #ts !ro)u$ts %n) ser'#$es9

Kno/"e)ge #s $re%te) oth /#th#n the 0#n)s of #n)#'#)u%"s %n) through

#nter%$t#ons et/een #n)#'#)u%"s %n) grou!s 6Stonehouse( *++=F *1;

32

8/13/2019 Gs Thesis

39/104

In or)er to g%#n %n) sust%#n $o0!et#t#'e e)ge org%n#s%t#ons 0ust $ont#nuous"y

$re%te ne/ .no/"e)ge %s /e"" %s 0%n%g#ng e>#st#ng .no/"e)ge effe$t#'e"y %n)

eff#$#ent"y through !ro$esses of .no/"e)ge 0%n%ge0ent Th#s ensures th%t

org%n#s%t#on%" .no/"e)ge #s e0o)#e) /#th#n the org%n#s%t#on5s $ore $o0!eten$es

%n) '%"ue %))#ng %$t#'#t#es There #s therefore % )#re$t $onne$t#on et/een the.no/"e)ge-%se) %!!ro%$h %n) #ts %nte$e)ents #n the "e%rn#ng %n) $ore

$o0!eten$e %se) %!!ro%$hes to str%teg#$ 0%n%ge0ent 6Stonehouse %n)

Pe0erton( 17779 Pe0erton %n) Stonehouse( *+++9 Pr%h%"%) %n) %0e"( 177+;

As %"re%)y st%te) .no/"e)ge $%n e reg%r)e) %s % sh%re) $o""e$t#on of !r#n$#!"es(

f%$ts( s.#""s( %n) ru"es /h#$h go'ern the !erfor0%n$e of the org%n#s%t#on

6De0%rest( 17789 Stonehouse %n) Pe0erton( 1777; Kno/"e)ge $%n t%.e se'er%"

)#fferent for0s It $%n e e>!"#$#t or t%$#t 6#0!"#$#t; 6Non%.%( 177+9 De0%rest( 17789

Non%.% et %" *+++9 Stonehouse %n) Pe0erton( 17779 Pe0erton %n)

Stonehouse( *+++; E>!"#$#t .no/"e)ge #s t%ng#"e( #s re%)#"y %'%#"%"e( $"e%r"y

st%te)( %n) %'%#"%"e to others #n % r%nge of for0%ts %n) 0e)#% or e>%0!"e( the

.no/"e)ge !resente) #n % oo. or %n %rt#$"e #s "%rge"y e>!"#$#t .no/"e)ge Su$h

.no/"e)ge $%n e re"%t#'e"y e%s#"y tr%nsferre) fro0 #n)#'#)u%" to #n)#'#)u%" %n)

sh%re) %$ross %n org%n#s%t#on T%$#t or #0!"#$#t .no/"e)ge $%n !erh%!s e est

un)erstoo) %s the e>!ert .no/"e)ge of #n)#'#)u%"s g%#ne) fro0 the#r e>!er#en$e

/h#$h res#)es "%rge"y #ns#)e the#r o/n 0#n) It #s y n%ture 0ore )#ff#$u"t to re$or)(

store( tr%nsfer( un)erst%n) %n) sh%re In)#'#)u%"s %re often he%)-hunte) y

org%n#s%t#ons for the#r t%$#t .no/"e)ge %n) the e'#)ent )#ff#$u"t#es #n %$u#r#ng su$h

.no/"e)ge y %ny other 0e%ns T%$#t .no/"e)ge $%n e %n #0!ort%nt sour$e of

$o0!et#t#'e %)'%nt%ge to %n org%n#s%t#on e$%use of the )#ff#$u"t#es for $o0!et#tors

#n $o!y#ng so0eth#ng so #nt%ng#"e On the other h%n)( there #s s#gn#f#$%nt )%nger

of "os#ng $o0!et#t#'e %)'%nt%ge #f su$h #n)#'#)u%"s "e%'e the org%n#s%t#on(

!%rt#$u"%r"y #f they @o#n % $o0!et#tor

Kno/"e)ge $%n %"so e #n)#'#)u%" or org%n#s%t#on%" Org%n#s%t#on%" .no/"e)ge #s

th%t /h#$h #s gener%""y sh%re) %0ong the 0e0ers of %n org%n#s%t#on It #s often

e>!"#$#t( %s /r#tten )o/n #n #nstru$t#ons %n) 0%nu%"s( ut $%n e t%$#t %s e'#)en$e)

#n the org%n#s%t#on5s $u"ture /h#$h e>#sts #n % 0%#n"y #nt%ng#"e for0 Co0!et#t#'e

33

8/13/2019 Gs Thesis

40/104

%)'%nt%ge )e!en)s u!on oth e>!"#$#t %n) t%$#t .no/"e)ge %n) u!on #n)#'#)u%" %n)

org%n#s%t#on%" .no/"e)ge 6Non%.% et %"( *+++; An un)erst%n)#ng of the n%ture of

these for0s of .no/"e)ge #s therefore essent#%"

Kno/"e)ge #ne'#t%"y eg#ns #ts "#fe %s t%$#t( #n)#'#)u%" .no/"e)ge 6Pe0erton %n)Stonehouse( *++1; The )#"e00% for org%n#s%t#ons #s to sh%re su$h 4e>!ert

.no/"e)ge5 %0ong #ts 0e0ers /#thout #t $o0#ng #nto the h%n)s of $o0!et#tors In

ter0s of sh%r#ng .no/"e)ge /#th#n the org%n#s%t#on( th#s #s %$h#e'e) through %

$o0#n%t#on of eh%'#ours( syste0s( !ro$esses %n) te$hno"og#es( %n) #n)ee) y

the f%$t th%t so0e t%$#t .no/"e)ge #s #ne'#t%"y tr%nsfor0e) #nto e>!"#$#t .no/"e)ge

o'er t#0e Co0!et#t#'e %)'%nt%ge #s #ne'#t%"y to so0e e>tent )e!en)ent on the

%#"#ty of the org%n#s%t#on to sh%re .no/"e)ge %0ong re"e'%nt 0e0ers eff#$#ent"y

%n) effe$t#'e"y through #ts .no/"e)ge 0%n%ge0ent !r%$t#$es %n) syste0s Th#s #s

e>!"ore) 0ore fu""y #n the suseuent se$t#ons of th#s $h%!ter %n) #n the

suseuent $h%!ters of th#s thes#s

At the s%0e t#0e org%n#s%t#ons t%.e ste!s to !rote$t the#r .no/"e)ge fro0 the#r

$o0!et#tors so %s to %tte0!t to !ro"ong %n) sust%#n the $o0!et#t#'e e)ge /h#$h #t

g#'es %n) to !rote$t the #n'est0ent 0%)e #n %$h#e'#ng th%t %)'%nt%ge 6Stonehouse

et %"( *++1; Th#s $%n e %$h#e'e) through '%r#ous %$t#ons %n) through the "%/ #n

ter0s of #nte""e$tu%" !ro!erty "eg#s"%t#on( #n$"u)#ng !%tents %n) $o!yr#ghts

It #s #0!ort%nt to note th%t .no/"e)ge /h#$h re0%#ns unuse) #n the sense th%t #t #s

not e0!"oye) or e0o)#e) /#th#n the org%n#s%t#ons( syste0s %n) !ro$e)ures( $ore

$o0!eten$e( !ro)u$ts %n) ser'#$es /#"" not g#'e $o0!et#t#'e %)'%nt%ge

6Pe0erton %n) Stonehouse( *+++; Kno/"e)ge 0ust e e0o)#e) #nto % f#r0s

.no/"e)ge %ssets /h#$h #n$"u)e #ts $ore $o0!eten$es( te$hno"ogy( '%"ue-%))#ng

%$t#'#t#es( !ro$esses( syste0s( !ro$e)ures( te$hno"ogy( stru$tures( !ro)u$ts %n)

ser'#$es %n) so on E>%0!"es of su$h e0o)#0ent of .no/"e)ge( #n$"u)e the

.no/"e)ge of )es#gn %n) eng#neer#ng te$hno"ogy /h#$h for0 the %s#s of

Pors$he5s $ore $o0!eten$es or the .no/"e)ge of soft/%re )es#gn e0o)#e) #n

2#$rosoft5s !ro)u$ts /h#$h g#'es #t su$h huge $o0!et#t#'e e)ge

34

8/13/2019 Gs Thesis

41/104

It #s e'#)ent th%t org%n#s%t#on%" .no/"e)ge $on$erns %ny %s!e$t of us#ness %$t#'#ty

6e>%0!"es #n$"u)e rese%r$h %n) )e'e"o!0ent( sour$#ng( !ro)u$t#on( 0%r.et#ng(

)#str#ut#on; %n) th%t #t #s the $ont#nuous $re%t#on of ne/ .no/"e)ge( e0o)#e) #n

$ore $o0!eten$es( '%"ue %))#ng %$t#'#t#es( te$hno"ogy( !ro)u$ts %n) ser'#$es(

/h#$h )e"#'ers %n) sust%#ns $o0!et#t#'e %)'%nt%ge Co0!et#t#'e %)'%nt%ge)e!en)s u!on oth e>!"#$#t %n) t%$#t .no/"e)ge It #s r%ther !%r%)o>#$%" th%t( %t one

"e'e"( t%$#t .no/"e)ge g#'es $o0!et#t#'e %)'%nt%ges /h#$h %re #nt%ng#"e %n)

therefore )#ff#$u"t for $o0!et#tors to e0u"%te ut th%t( %t the s%0e t#0e( th#s

#nt%ng##"#ty 0%.es #t )#ff#$u"t for org%n#s%t#ons to $on'ert #n)#'#)u%" .no/"e)ge #nto

org%n#s%t#on%" .no/"e)ge( thus s!re%)#ng #ts enef#ts further

+.+ )nowledge Creation# Organisational *earning and

)nowledge !anagement

The !re$e)#ng se$t#on 0%)e the $%se th%t %$u#r#ng %n) sust%#n#ng $o0!et#t#'e

%)'%nt%ge #s )e!en)ent u!on $ont#nuous $re%t#on %n) e>!"o#t%t#on of ne/

.no/"e)ge y org%n#s%t#ons It #s therefore #0!ort%nt to un)erst%n) the !ro$esses

%n) syste0s through /h#$h .no/"e)ge #s $re%te) %n) 0%n%ge) /#th#n

org%n#s%t#ons Th#s se$t#on )#s$usses these $on$e!ts %n) the re"%t#onsh#!s

et/een the0 so %s to #n$re%se un)erst%n)#ng of ho/ org%n#s%t#ons $%n $re%te

%n) 0%n%ge .no/"e)ge 0ore effe$t#'e"y thus g#'#ng % gre%ter !oss##"#ty of

#0!ro'#ng the#r $o0!et#t#'e !erfor0%n$e

The ter0s .no/"e)ge $re%t#on( org%n#s%t#on%" "e%rn#ng %n) .no/"e)ge

0%n%ge0ent %re often use) #nter$h%nge%"y Th#s $%n e 0#s"e%)#ng %n)( %s %

$onseuen$e( #t #s ne$ess%ry to $"%r#fy the ter0s %n) the re"%t#onsh#!s et/een

the0 %s !resente) #n the !u"#she) %rt#$"es /h#$h for0 th#s thes#s Kno/"e)ge

0%n%ge0ent #s est reg%r)e) %s %n u0re""% ter0 /h#$h re"%tes to the !eo!"e(

!ro$esses %n) syste0s /h#$h %re )#re$t"y $on$erne) /#th the 0%n%ge0ent of

.no/"e)ge /#th#n the org%n#s%t#on As /e"" %s 0%n%g#ng e>#st#ng sto$.s of

.no/"e)ge #t %"so en$o0!%sses org%n#s%t#on%" "e%rn#ng %n) .no/"e)ge $re%t#on

Org%n#s%t#on%" "e%rn#ng #n'o"'es the %$u#s#t#on of .no/"e)ge y the org%n#s%t#on

%n) #ts 0e0ers %n) the sh%r#ng of th%t .no/"e)ge Kno/"e)ge $re%t#on #s t'e

3)

8/13/2019 Gs Thesis

42/104

creation and e+$loitation of new (nowledgey the org%n#s%t#on C"e%r"y

org%n#s%t#on%" "e%rn#ng %n) .no/"e)ge 0%n%ge0ent %re ne$ess%ry ut %re not

suff#$#ent for the $re%t#on of new.no/"e)ge Org%n#s%t#on%" "e%rn#ng %n)

.no/"e)ge 0%n%ge0ent %""o/ the org%n#s%t#on to %$u#re .no/"e)ge( often

.no/"e)ge /h#$h #s %"re%)y #n e>#sten$e Kno/"e)ge $re%t#on #s $on$erne) /#thcreati*ity resu"t#ng #n the $re%t#on of $o0!"ete"y ne/ .no/"e)ge %n) #ts )e!"oy0ent

#n the $o0!et#t#'e en)e%'ors of the us#ness It #s the $%se th%t org%n#s%t#on%"

"e%rn#ng %n) .no/"e)ge 0%n%ge0ent f%$#"#t%te $re%t#'#ty ut they )o not gu%r%ntee

#t As the )ef#n#t#ons of these $on$e!ts h%'e e'o"'e) o'er t#0e there #s #ne'#t%"y

st#"" so0e %0#gu#ty #n the "#ter%ture #n the#r us%ge

+., Organisational *earning and Creativit"

Org%n#s%t#on%" "e%rn#ng #s % .ey e"e0ent of .no/"e)ge $re%t#on %n) #s $o0!r#se) of

t/o $o0!onents of "e%rn#ngF #n)#'#)u%" %n) org%n#s%t#on%" In)#'#)u%" "e%rn#ng #s

th#s #n#t#%" st%ge of "e%rn#ng /#th#n org%n#s%t#ons 6K%0o$he( 1778; It #s #n)#'#)u%"s

/ho %re the #nst#g%tors %n) or#g#n%tors of "e%rn#ng %n) the $re%t#'#ty /h#$h "e%)s to

ne/ .no/"e)ge Eu%""y( the #n)#'#)u%" "e%rn#ng !ro$ess %n) the %$u#s#t#on of

.no/"e)ge #s un)oute)"y %$$e"er%te) %n) enh%n$e) y the sh%r#ng of #nfor0%t#on

%n) #)e%s( %$$o0!%n#e) y %n o!enness th%t en$our%ges uest#on#ng( )e%te %n)

)#s$uss#on of e>#st#ng %n) future !r%$t#$es 6A!!e"%u0 %n) G%""%gher( *+++F =+;

Su$h % so$#%" en'#ron0ent ser'es %s % !"%tfor0 u!on /h#$h to test #n)#'#)u%" #)e%s

%n) e"#efs !r#or to the#r tr%nsfor0%t#on #nto org%n#s%t#on%" .no/"e)ge

6Stonehouse %n) Pe0erton( 17779 %n) Stonehouse( *++=;

In)#'#)u%" "e%rn#ng %r#ses fro0 % !erson5s e>!er#en$es( %n) e>!er#ent#%" "e%rn#ng

through $r#t#$%" ref"e$t#on on %$t#'#ty %n) !erfor0%n$e( fro0 stu)y %n) %n%"ys#s(

fro0 $re%t#'e th#n.#ng( %n) fro0 test#ng %n) e>!er#0ent%t#on 6Ko" et %"( 1771;

&"t#0%te"y #t #s the )e'e"o!0ent of ne/ .no/"e)ge %n) #ts %!!"#$%t#on #n the

syste0s( %$t#'#t#es( stru$ture( re"%t#onsh#!s %n) $u"ture of the org%n#s%t#on( /h#$h

enh%n$e oth #n)#'#)u%" %n) org%n#s%t#on%" !erfor0%n$e

3

8/13/2019 Gs Thesis

43/104

It #s #0!ort%nt to $ons#)er the n%ture of "e%rn#ng efore )#s$uss#on of the $on$e!t of

org%n#s%t#on%" "e%rn#ng %$.son 6177

$ogn#t#'e %!!ro%$h #0!"#es th%t there #s % 4th#n.#ng5 e"e0ent to the "e%rn#ng !ro$ess

If the $ogn#t#'e %!!ro%$h #s %$$e!te) then the #0!ort%n$e of the org%n#s%t#on to

oth #n)#'#)u%" %n) org%n#s%t#on%" "e%rn#ng %n) $re%t#'#ty #s #00e)#%te"y %!!%rent

The org%n#s%t#on !ro'#)es the so$#%" $onte>t /#th#n /h#$h %"" for0s of "e%rn#ng t%.e

!"%$e The so$#%" $onte>t of the org%n#s%t#on therefore h%s the !otent#%" to e#ther

f%$#"#t%te or h#n)er oth ty!es of "e%rn#ng %n) $re%t#'#ty

As Hu#nn 6177*; !o#nts out .no/"e)ge #s one of the fe/ %ssets th%t gro/s 0ost

- usu%""y e>!onent#%""y - /hen sh%re) Hu#nn goes on to st%te th%tF By

$on$entr%t#ng on .ey e"e0ents of the "e%rn#ng !ro$ess $o0!%n#es $%n "e'er%ge

#nte""e$t enor0ous"y To !ut th#s %nother /%y( org%n#s%t#ons $%n h%'e % s#gn#f#$%nt

#0!%$t on the#r o/n %#"#ty to "e%rn %n) to $re%te ne/ .no/"e)ge Th#s #s the

su@e$t of )#s$uss#on #n the ne>t $h%!ter of th#s thes#s

Org%n#s%t#on%" "e%rn#ng #s $on$erne) /#th the u#")#ng %n) %)%!t%t#on of

.no/"e)ge( ut /#th 0ore for0%"#se) stor%ge( sh%r#ng( tr%nsfer %n) $o-or)#n%t#on of

#ts .no/"e)ge %se through #ts .no/"e)ge 0%n%ge0ent syste0s 6Stonehouse

%n) Pe0erton( 1777F 1

8/13/2019 Gs Thesis

44/104

Le%rn#ng $%n e further $%tegor#:e) #n se'er%" /%ys Argyr#s 6177*; #)ent#f#e) the

$on$e!t of 4)ou"e "oo! "e%rn#ng5 Dou"e "oo! "e%rn#ng )oes not on"y !ro'#)e the

#00e)#%te so"ut#on to % !ro"e0 6Argyr#s %n) S$hon( 178,9 Argyr#s( 177*;( ut

4)e'e"o!s !r#n$#!"es th%t 0%y #nfor0 %n) )eter0#ne future eh%'#our5 6Stonehouse

%n) Pe0erton( 1777; Senge 6177+%( 177+; suggests $on$e!ts s#0#"%r to s#ng"e%n) )ou"e "oo! "e%rn#ng #n the for0 of the $on$e!ts of 4%)%!t#'e %n) gener%t#'e

"e%rn#ng5 Wh#"e %)%!t#'e "e%rn#ng #s $on$erne) /#th "e%rn#ng /h#$h t%.es !"%$e

re%$t#'e"y #n res!onse to en'#ron0ent%" $h%nges( gener%t#'e "e%rn#ng "e%)s to the

)e'e"o!0ent of ne/ .no/"e)ge %s the %s#s of ne/ /%ys of )o#ng us#ness

Non%.% et %" 6*+++; %rgue th%t $ont#nuous .no/"e)ge $re%t#on #s the .ey to

$o0!et#t#'e %)'%nt%ge Kno/"e)ge $re%t#on t%.es !"%$e through four #nter"#n.e)

!ro$esses /h#$h for0 % 4s!#r%" of #nter%$t#on5 et/een e>!"#$#t %n) t%$#t .no/"e)ge

%n) et/een #n)#'#)u%" %n) org%n#s%t#on%" .no/"e)ge Th#s s!#r%" of #nter%$t#on #s

.no/n %s SECI 6so$#%"#s%t#on( e>tern%"#s%t#on( $o0#n%t#on( #ntern%"#s%t#on;

So$#%"#s%t#on #s the !ro$esses of sh%r#ng e>!er#en$es %n) t%$#t .no/"e)ge et/een

#n)#'#)u%"s Th#s $%n t%.e !"%$e #n oth for0%" %n) #nfor0%" sett#ngs An e>%0!"e

0#ght e % younger 0e0er of st%ff /or.#ng /#th % 0ore e>!er#en$e) 0e0er to

"e%rn ho/ % @o #s )one E>tern%"#s%t#on #n'o"'es %rt#$u"%t#ng t%$#t .no/"e)ge #nto

e>!"#$#t $on$e!ts through 0o)e"s( 0et%!hors( %n%"og#es Co0#n%t#on #s the

syste0#s#ng of .no/"e)ge #n 0eet#ngs( )o$u0ents %n) $o0!uter net/or.s #n%""y(

#ntern%"#s%t#on #s the e0o)y#ng of t%$#t .no/"e)ge #nto e>!"#$#t .no/"e)ge It #s

often %se) u!on "e%rn#ng y )o#ng

In %))#t#on( Non%.% %n) T%.eu$h# 6177=; %rgue th%t .no/"e)ge $re%t#on #s %n

essent#%""y so$#%" !ro$ess %"though Bu.o/#t: %n) W#""#%0s 61777; %rgue

#nfor0%t#on te$hno"ogy $%n !"%y %n #0!ort%nt ro"e #n the stor%ge %n) sh%r#ng of

.no/"e)ge( thus %$t#ng %s % $%t%"yst #n #ts $re%t#on

At th#s st%ge #t #s #0!ort%nt to 0%.e the #0!ort%nt )#st#n$t#on et/een "e%rn#ng %n)

$re%t#'#ty Le%rn#ng #s $on$erne) /#th the %$u#s#t#on %n) %sor!t#on of e>#st#ng

.no/"e)ge %n) ref"e$t#on u!on $urrent !r%$t#$es Cre%t#'#ty( ho/e'er( goes eyon)

3

8/13/2019 Gs Thesis

45/104

"e%rn#ng #nto the $re%t#on of ne/ .no/"e)ge( the )e'e"o!0ent of ne/ $ore

$o0!eten$es %n) !r%$t#$es %n) the#r #0!"e0ent%t#on throughout the us#ness

6Stonehouse %n) Pe0erton( 17779 Stonehouse et %"( *++19 2#no$h% %n)

Stonehouse9 *++?;

+. Critical %eflection and Contribution

+..1 )nowledge# *earning and Creativit" 4 Creative Advantage

2y rese%r$h %n) !u"#$%t#ons h%'e $entre) on )e'e"o!#ng %n %!!ro%$h to str%tegy

%se) u!on .no/"e)ge( "e%rn#ng %n) $re%t#'#ty The $entre !#e$e of th#s /or. #s the

!re0#se th%t $o0!et#t#'e %)'%nt%ge )e!en)s u!on $re%t#ng %n) e>!"o#t#ng ne/

.no/"e)ge %n) th%t #n to)%y5s hy!er$o0!et#t#'e( g"o%"( )yn%0#$ %n) turu"ent

us#ness en'#ron0ent #t #s ne$ess%ry for org%n#s%t#ons to "e%rn str%teg#$%""y %n) to

fo$us on g%#n#ng $re%t#'e %)'%nt%ge through the gener%t#on of ne/ .no/"e)ge

Th#s #s e$%use Kno/"e)ge #s % $o0!"e> !heno0enonF #t #s )yn%0#$ %n)

$onst%nt"y )e'e"o!#ng9 #t #s so$#%" #n n%ture %n) )e'e"o!s through the #)e%s of

#n)#'#)u%"s %n) grou!s 6Stonehouse( *++=F *1;

One s#gn#f#$%nt $ontr#ut#on of 0y /or. h%s een to "#n. the ne/ .no/"e)ge %n)

"e%rn#ng %!!ro%$hes to str%tegy to the 0ore tr%)#t#on%" %!!ro%$hes #n the

)#s$#!"#ne I h%'e est%"#she) the $"ose "#n.s et/een .no/"e)ge %n) $ore

$o0!eten$e #n org%n#s%t#ons $o0!et#t#'e %)'%nt%ge %r#ses fro0 #ntern%""y

)e'e"o!e) $ore $o0!eten$es or )#st#n$t#'e $%!%#"#t#es %se) u!on .no/"e)ge

)e'e"o!e) through org%n#s%t#on%" "e%rn#ng 6Stonehouse %n) Sno/)on( *++8F

*=7; It #s #0!ort%nt to )#st#ngu#sh et/een %n org%n#s%t#on5s $o0!eten$es %n)

$ore $o0!eten$es /hen see.#ng to un)erst%n) #ts $o0!et#t#'e !erfor0%n$e An

org%n#s%t#on 0ust !ossess $ore $o0!eten$es( %s )#st#n$t fro0 the $o0!eten$es

!ossesse) y %"" the org%n#s%t#ons #n % !%rt#$u"%r se$tor( #f #t #s to )e'e"o! su!er#or

!erfor0%n$e 2y /or. h%s est%"#she) th%t su$h $ore $o0!eten$es %re %se)

u!on t/o !%rt#$u"%r ty!es of .no/"e)geF s!e$#f#$ %n) t%$#t Where%s %"" the

org%n#s%t#ons #n % !%rt#$u"%r se$tor /#"" !ossess the gener#$ .no/"e)ge reu#re) to

3

8/13/2019 Gs Thesis

46/104

o!er%te /#th#n #t( the org%n#s%t#ons /h#$h !erfor0 est !ossess s!e$#f#$ .no/"e)ge

/h#$h )#st#ngu#shes the0 fro0 the#r $o0!et#tors Th#s 0%y e .no/"e)ge of

te$hno"ogy( of $usto0ers or of %ny str%teg#$%""y #0!ort%nt )#0ens#on of the#r

us#ness A further f%$tor #)ent#f#e) #n 0y /or. #s the nee) to !rote$t $ore

$o0!eten$es fro0 e0u"%t#on y $o0!et#tors y s%fegu%r)#ng the t%$#t .no/"e)geof #ts 0e0ers %n) y sh%r#ng th%t t%$#t .no/"e)ge throughout the org%n#s%t#on

6Stonehouse %n) Pe0erton( 17779 Pe0erton( Stonehouse %n) r%n$#s( *++*9

Stonehouse %n) Pe0erton( *++=; Su$h t%$#t .no/"e)ge 0ust e e0o)#e) #n %n

org%n#s%t#on5s $ore $o0!eten$es( !ro)u$ts %n) $usto0er ser'#$es( $u"ture(

te$hno"ogy( %n) syste0s 6Pe0erton %n) Stonehouse( *+++;

If #t #s %$$e!te) th%t $re%t#ng %n) sust%#n#ng su!er#or !erfor0%n$e %re )e!en)entu!on the for0%t#on of ne/ .no/"e)ge then org%n#s%t#ons 0ust fo$us on #0!ro'#ng

the !ro$esses through /h#$h "e%rn#ng o$$urs %n) .no/"e)ge #s $re%te)

6Stonehouse %n) Pe0erton( 17779 Pe0erton %n) Stonehouse( *+++9

Stonehouse %n) Pe0erton( *++=9 Stonehouse( *++=; %n) u!on the

org%n#s%t#on%" surroun)#ngs #n /h#$h th#s t%.es !"%$e 6Ch%!ter =;

The fun)%0ent%"s of #n)#'#)u%" %n) org%n#s%t#on%" "e%rn#ng %n) of .no/"e)ge

$re%t#on h%'e een /e"" est%"#she) through the /or. of Argyr#s 61788( 177*;(

Argyr#s %n) S$hon 6178,;( Senge 6177+%;( Non%.% 61771;( %n) Non%.% et %"

6*+++; 2y $ontr#ut#on h%s een to e0!h%s#:e %n) )e'e"o! the #0!ort%n$e of the

$ogn#t#'e %n) so$#%" )#0ens#ons of "e%rn#ng %n) $re%t#'#ty 6Stonehouse %n)

Pe0erton( 17779 Pe0erton %n) Stonehouse( *+++9 Stonehouse %n) Pe0erton(

*++=9 Stonehouse( *++=9 2#no$h% %n) Stonehouse( *++?; Essent#%""y I h%'e

he"!e) to )e'e"o! the $on$e!ts of tr#!"e "oo! "e%rn#ng( str%teg#$ "e%rn#ng %n)$re%t#'#ty( together /#th the #)e% of $re%t#'e %)'%nt%ge Argyr#s %n) Senge

res!e$t#'e"y #ntro)u$e) the #)e%s of s#ng"e %n) )ou"e "oo! "e%rn#ng( %n) %)%!t#'e

%n) gener%t#'e "e%rn#ng Dou"e "oo! %n) gener%t#'e "e%rn#ng /ere seen %s the

%s#$ sour$es of ne/ .no/"e)ge 2y /or. h%s fo$use) on the not#ons of

org%n#s%t#on%" #nte""#gen$e %n) str%teg#$ "e%rn#ng These %re $on$erne) /#th %n

org%n#s%t#on un)erst%n)#ng the nee) for %n) the n%ture of "e%rn#ng( %n) eyon)

4

8/13/2019 Gs Thesis

47/104

th#s( $re%t#'#ty( so %s to $re%te %n #ntern%" en'#ron0ent 6org%n#s%t#on%" $onte>t or

so$#%" %r$h#te$ture; /h#$h #s su!!ort#'e of "e%rn#ng %n) $re%t#'#ty To !ut th#s

%nother /%yF str%teg#$ "e%rn#ng sy0o"#ses .no/"e)ge $re%t#on %n) tr%nsfer %s %

$ore !h#"oso!hy /#th#n /h#$h to g%#n $re%t#'e %)'%nt%ge 62#no$h% %n)

Stonehouse( *++?F 1$e""en$e

The foun)%t#on of 0y /or. "#es #n 4Le%rn#ng %n) Kno/"e)ge 2%n%ge0ent #n the

Inte""#gent Org%n#s%t#on5 6Stonehouse %n) Pe0erton( 1777; Th#s !%!er )e'e"o!s

the #0!ort%n$e of the re"%t#onsh#!s et/een #n)#'#)u%" %n) org%n#s%t#on%" "e%rn#ng

%n) the #nter%$t#ons of th#s !ro$ess /#th the org%n#s%t#on5s "e%rn#ng $onte>t or

so$#%" %r$h#te$ture In !%rt#$u"%r( #t stresses the #0!ort%n$e of .ey !ro$esses #n.no/"e)ge $re%t#on( /h%t %re ter0e) "e%rn#ng "oo!s( n%0e"yF #n)#'#)u%" "e%rn#ng9

the grou! e>!osure of "e%rn#ng9 the for0%"#:%t#on %n) stor%ge of .no/"e)ge9 %n)

the )#ffus#on %n) $o-or)#n%t#on of .no/"e)ge /#th#n the org%n#s%t#on It #s the /%y #n

/h#$h the org%n#s%t#on ref"e$ts u!on %n) "e%rns %out #ts "e%rn#ng !ro$esses /h#$h

/#"" %ss#st #n )e'e"o!#ng % so$#%" %r$h#te$ture /h#$h #s $on)u$#'e to $re%t#'#ty

These $on$e!ts %n) 0o)e"s %re )e'e"o!e) further #n Pe0erton %n) Stonehouse(

*+++( Stonehouse et %"( *++1( Pe0erton( Stonehouse %n) r%n$#s( *++*(

Stonehouse( *++=( Stonehouse %n) Pe0erton( *++= %n) 2#no$h% %n)

Stonehouse( *++?

un)%0ent%" to str%teg#$ "e%rn#ng %n) $re%t#'#ty %re the for0%t#on( sh%r#ng %n)

e>!"o#t%t#on of .no/"e)ge( %n) the #0!ort%n$e of ref"e$t#ng on !r%$t#$e #n )o#ng

th#s 2y /or. h%s e0!h%s#:e) the nee) to sh%re #)e%s %n) .no/"e)ge %t

#n)#'#)u%"( grou! %n) org%n#s%t#on%" "e'e"s #f the str%teg#$ "e%rn#ng !ro$ess #s to e%$$e"er%te) 6Stonehouse %n) Pe0erton( 17779 Pe0erton %n) Stonehouse(

*+++9 Stonehouse %n) Pe0erton( *++=9 Stonehouse( *++=9 2#no$h% %n)

Stonehouse( *++?; The ne>t $h%!ter e>%0#nes the ro"e of org%n#s%t#on #n

su!!ort#ng %n) f%$#"#t%t#ng "e%rn#ng %n) $re%t#'#ty %n) Ch%!ter ? e>!"ores ho/

org%n#s%t#ons $%n %$t#'e"y $h%nge to foster str%teg#$ "e%rn#ng %n) $re%t#'#ty

41

8/13/2019 Gs Thesis

48/104

Chapter ,

The Conte-t of *earning and Creativit" in Organisations

,.1 Introduction

Wh#"e the !re'#ous $h%!ters h%'e $ons#)ere) the n%ture of $o0!et#t#'e %)'%nt%ge(

the 0e%ns y /h#$h org%n#s%t#ons see. to %$h#e'e #t through the#r str%teg#es( the

ro"e of .no/"e)ge( "e%rn#ng %n) $re%t#'#ty #n #ts %$h#e'e0ent( th#s $h%!ter

#n'est#g%tes the #0!ort%n$e of the org%n#s%t#on%" $onte>t 6Stonehouse %n)

Pe0erton( 1777; or so$#%" %r$h#te$ture 6Senge( 177+%( 177+; #n !ro'#)#ng %n

en'#ron0ent #n /h#$h ne/ .no/"e)ge $%n e $re%te) 0ore re%)#"y The $h%!ter

goes on to $ons#)er the /%ys #n /h#$h the '%r#ous )#0ens#ons of so$#%"

%r$h#te$ture( n%0e"y "e%)ersh#!9 $u"ture9 stru$ture %n) #nfr%stru$ture( #nf"uen$e the

eff#$#en$y %n) effe$t#'eness of org%n#s%t#on%" "e%rn#ng %n) $re%t#'#ty

,.& Organisational Conte-t and 'ocial Architecture

It #s the n%ture of "e%rn#ng %n) $re%t#'#ty /h#$h !"%$es org%n#s%t#on%" $onte>t %n)

so$#%" %r$h#te$ture %t the $entre of the !ro$esses #n'o"'e) In the !re'#ous $h%!ter

#t /%s est%"#she) th%t "e%rn#ng %n) $re%t#'#ty %re essent#%""y $ogn#t#'e( $ons$#ous(

%n) e>!er#ent#%" Le%rn#ng %n) $re%t#'#ty $%n e $ons#)ere) fro0 % nu0er of

!ers!e$t#'es #n$"u)#ng so$#o"og#$%"( eh%'#our%"( %n) te$hno"og#$%" In the 177+s(

!ro%"y "%rge"y e$%use of the r%!#) !%$e of #nno'%t#on #n #nfor0%t#on %n)

$o00un#$%t#ons te$hno"og#es( there /%s so0eth#ng of % fo$us on the $ontr#ut#on

of te$hno"ogy to "e%rn#ng %n) $re%t#'#ty Th#s %!!ro%$h h%s "%rge"y een re!"%$e)

y % so$#o-te$hno"og#$%" one /h#$h e0!h%s#:es the $ontr#ut#ons of %n)

#nter%$t#ons et/een te$hno"ogy %n) the so$#%" )#0ens#ons of org%n#s%t#on "#.e

"e%)ersh#!( $u"ture( stru$tures %n) syste0s In the !re'#ous $h%!ter the ro"e of

#n)#'#)u%" %n) org%n#s%t#on%" "e%rn#ng #n the $re%t#'e !ro$esses /ere $ons#)ere)

%n) h#gh"#ghte) C"e%r"y( the so$#%" %n) te$hno"og#$%" )#0ens#ons of org%n#s%t#ons

$%n %n) )o !"%y %n #0!ort%nt ro"e #n e#ther f%$#"#t%t#ng or h#n)er#ng the %$t#'#t#es %n)

!ro$esses through /h#$h "e%rn#ng %n) $re%t#'#ty t%.e !"%$e

42

8/13/2019 Gs Thesis

49/104

In)#'#)u%" "e%rn#ng( org%n#s%t#on%" "e%rn#ng %n) $re%t#'#ty %re #nter)e!en)ent

!ro$esses /h#$h t%.e !"%$e /#th#n /h%t 0%y e reg%r)e) %s the $onte>t( sett#ng or

e$osyste0 of the org%n#s%t#on In'est#g%t#ons h%'e "oo.e) #nto the #0!ort%n$e of

f%$tors "#.e org%n#s%t#on%" $"#0%te 6A0%#"e Grys.#e/#$:( 17,7;( grou!

#nter%$t#ons 6S$ott %n) Bru$e( 1773; %n) org%n#s%t#on%" stru$ture 6Ar%)( %nson(%n) S$hn#e)er( 1778; #n $re%t#'#ty Non%.% et %" 6*+++; use the %!%nese /or)

4B%5 to )es$r#e the org%n#s%t#on%" $onte>t for "e%rn#ng %n) $re%t#'#ty /h#"e Senge

6177+; ter0s #t 4so$#%" %r$h#te$ture5 Wh#$he'er ter0 #s use) th#s org%n#s%t#on%"

sett#ng /#th#n /h#$h .no/"e)ge #s )e'e"o!e) through "e%rn#ng %n) $re%t#'#ty

$ons#sts of f%$tors "#.e "e%)ersh#!( $u"ture( stru$ture( #nfr%stru$ture %n) syste0s

S#n$e so$#%" %r$h#te$ture /#"" #0!%$t u!on the eff#$#en$y %n) effe$t#'eness /#th

/h#$h "e%n#ng %n) $re%t#'#ty /#"" t%.e !"%$e #t #s ne$ess%ry to $ons#)er e%$h of the

f%$ets of org%n#s%t#on%" $onte>t %n) the#r !otent#%" #0!%$ts on .no/"e)ge $re%t#on

To !ut th#s %nother /%y( org%n#s%t#ons /#"" see. to 40%n%ge5 .no/"e)ge %n) #ts

$re%t#on #n % s#0#"%r /%y to th%t #n /h#$h they see. to 0%n%ge other resour$es %n)

%ssets "#.e !eo!"e %n) f#n%n$e In f%$t( 0%ny org%n#s%t#ons h%'e gone to gre%t

"engths to 4"e%rn %out "e%rn#ng5 #n or)er to )e'e"o! $u"tures( stru$tures( syste0s

%n) eh%'#ours /h#$h su!!ort "e%rn#ng %n) .no/"e)ge $re%t#on There h%s een

%n #n$re%se) fo$us on )#fferent %s!e$ts of "e%rn#ng %n) the !otent#%" org%n#s%t#on%"

#0!%$ts u!on the0 #n$"u)#ng the $on$e!ts of "#0#n%" "e%rn#ng 6Turner( 17,3;

)eutero"e%rn#ng( se$on) or)er "e%rn#ngJ"e%rn#ng ho/ to "e%rn 6B%teson( 178*;(

tr#!"e "oo! "e%rn#ng 6S/#er#ng% %n) W#er)s0%( 177*; or "e%rn#ng %out "e%rn#ng

#tse"f 6B%teson( 178*9 Argyr#s %n) S$hon( 177?9 Pe0erton %n) Stonehouse(

*+++; As 2#no$h% %n) Stonehouse 6*++?; e>!"%#n #tF

These $on$entr%te on the /%ys #n /h#$h org%n#s%t#ons $%n #0!ro'e the r%te %t

/h#$h they "e%rn y )e'e"o!#ng %n effe$t#'e "e%rn#ng $u"ture 6A.su %n) B%h%tt#n(

*++=9 %0!)en-Turner %n) Tro0!en%%rs( *++?9 Be"" %n) Be""( *++=;( "e%)ersh#!

6G#geren:er( *++?;( syste0s 6K%r..%#nen %n) %""#.%s( *++?9 Perrott( *++3; %n)

stru$tures 6#nes et %"( *++3; In other /or)s these /or.s e#ther e0!h%s#se the

#0!ort%n$e of the "e%rn#ng s!%$e or 4!res$r#e5 f"u#)#ty #n the so$#%" %r$h#te$ture

6Bogenre#)er( *++*; of the org%n#s%t#on 62#no$h% %n) Stonehouse( *++?F 1

8/13/2019 Gs Thesis

50/104

At th#s st%ge #t #s !ro%"y usefu" to $ons#)er the 0%@or %s!e$ts of so$#%"

%r$h#te$ture #n re"%t#on the#r !otent#%" #0!%$ts on "e%rn#ng %n) $re%t#'#ty

,.( *eadership

The $on$e!t of "e%)ersh#! h%s een the su@e$t of % 0u"t#tu)e of %$%)e0#$ stu)#es

%n) there %re % host of %rt#$"es %n) oo.s on the su@e$t #n oth the %$%)e0#$ %n)

us#ness !ress It #s /e"" eyon) the s$o!e of th#s thes#s to e>!"ore th#s "#ter%ture

fu""y R%ther I /#"" $on$entr%te on th%t !%rt of the "#ter%ture /h#$h $ons#)ers

"e%)ersh#! #n re"%t#on to "e%rn#ng %n) $re%t#'#ty

In gener%" ter0s "e%)ersh#! #s %se) on )e'e"o!#ng % '#s#on for the org%n#s%t#on #n

the future( ensur#ng th%t the '#s#on %n) #ts su!!ort#ng 0#ss#on %re sh%re) %n)

e0r%$e) throughout the org%n#s%t#on( then tr%ns"%t#ng the '#s#on #nto str%teg#$

re%"#ty through % str%tegy /h#$h e0r%$es the $re%t#on of ne/ .no/"e)ge /h#$h( #n

turn( #s e0o)#e) #n the $u"ture( syste0s( !ro$esses( !ro)u$ts %n) ser'#$es of the

org%n#s%t#on through $ont#nuous #nno'%t#on A$$or)#ng to Re#ter-P%"0on %n) I""#es(

*++3F =7; Le%)ersh#! h%s een #)ent#f#e) %s % $onte>tu%" '%r#%"e $ontr#ut#ng to

the $u"ture %n) $"#0%te of the org%n#s%t#on %n) !er$e!t#on