The Firm.
The author wants to highlight problems with transfer of internal knowledge within firms and also disagree to previous beliefs of the cause for the lack of transfer, blaming knowledge related factors as the cause for this “internal stickiness”.
The ability to transfer best practices internally is critical for companies to get a competitive advantage.
The author analyzes “internal stickiness” of knowledge and tests the resulting model using canonical correlation analysis of data.
The conventional view blames motivational factors as barriers whereas this study blames the lack of transfer on knowledge related factors: the recipients’ lack of absorptive capacity, casual uncertainty, and a difficult relationship between the source and the recipient.
Definitions:
Practice: refers to the organizations routine use of knowledge and often have an understated component, embedded partly in individual skills and partly collaborative social arrangements.
Transfer: is used to emphasize that the movement of knowledge within the organization is a distinct experience and depends on the characteristics of everyone involved.
“Transfer of best practice” is seen as dyadic exchanges of organizational knowledge between a source and a recipient unit in which the identity of the recipient matters.
Four stages in the transfer process:
1. Initiation: all events that lead to the decision to transfer.
2. Implementation: begins with the decision to proceed with the transfer. Resources flow between the recipient and the source.
3. Ramp-up: begins when the recipient starts using the transferred knowledge. Concerns with identifying and resolving unexpected problems.
4. Integration: begins after the recipient achieves satisfactory results with the transferred knowledge. Use of the transferred knowledge gradually becomes rutinized.
Information is difficult to