Transfer of Tacit Knowledge

The role of tacit knowledge in innovation management
January 2004 Ragna Seidler-de Alwis Institute of Information Science University of Applied Sciences, Cologne Claudiusstr. 1 50678 Cologne, Germany Tel.: ++49 221 8275-3387 Mobile: ++49 175 1861855 Email: [e-mail] Evi Hartmann A.T. Kearney Platz der Einheit 1 D – 60327 Frankfurt, Germany Tel: [phone] Fax: [phone] Mobile: [phone] Email: [e-mail] Hans Georg Gemünden Institute of Technology and Innovation Management Technical University of Berlin Hardenbergstr. 4 – 5, HAD 29, 10623 Berlin Tel: [phone] Fax: [phone] Email: [e-mail] RAGNA SEIDLER- DE ALWIS, Professor at the Institute of Information Science at the University of Applied Sciences in Cologne, Germany. EVI HARTMANN, PhD, Consultant at A.T. Kearney, Frankfurt, Germany. HANS GEORG GEMÜNDEN, Professor, Chair of the Institute of Technology and Innovation Management at the Technical University of Berlin, Germany.

Competitive Paper submitted to the 20 Annual IMP Conference in Copenhagen, 2th - 4th September 2004 th 1

Abstract Innovation management includes the management of processes to strive for novel assignments through the combination and integration of different knowledge components. Besides, next to explicit knowledge, tacit knowledge has a crucial influence on the success of innovation processes in companies. The sole application of tacit knowledge cannot guarantee an effective innovation process as organizational knowledge for innovation is created through a continuous dialogue between tacit and explicit knowledge, where four different modes of knowledge conversion can be postulated. Tacit knowledge is mobilized through a dynamic combination of the different modes of knowledge conversion in a process, which can be called a “spiral model” of knowledge creation. Tacit knowledge is an important driver in the innovation process and its application

References: Aregger, K. (1976): Innovation in sozialen Systemen – Einführung in die Innovationstheorie der Organisation, Bern/Stuttgart Barnett, H.G. (1953): Innovation: The Basis of Cultural Change, New York Becker, S. W., Whisler, T. L. (1967): The Innovative Organization. A Selective View of Current Theory and Research, in: Journal of Business, 40, 462-469 Blümm, C. (2002): Die Bedeutung impliziten Wissens im Innovationsprozess, Gabler, Wiesbaden Bohinc, T., Erichson, J. (2002): Innovationsmanagement, in: Telekommunikation, 56(7+8), 1-59 Brockhoff, K. (1992): Forschung und Entwicklung – Planung und Kontrolle, München/Wien Carter, C., Williams, B. (1957): Industry and Technical Progress, Oxford University Press Cavusgil, S.T., Calantone, R.J., Zhao, Y. (2003): Tacit knowledge transfer and firm innovation capability, in: Journal of Business & Industrial Marketing, 18 (1), 6-21 Corso, M. (2002): From product development to Continuous Product Innovation: mapping the routes of corporate knowledge, in: International Journal of Technology Management, 23(4), 322-340 Davenport, T. H., De Long, D. W., Beers, M. C. (1998): Successful knowledge management projects, in: Sloan Management Review, 39(2), 41-56 20 Davenport, T. H., Marchard, D. (1999): Is KM just good information management, in: Financial Times Mastering Information Management Supplement, Financial Times, London March 8th, 2-3 Faulkner, W., Senker, J. (1995): Knowledge frontiers: Public sector research and Industrial innovation in biotechnology, engineering ceramics and parallel computing, Oxford University Press, Oxford Forrest, J. E. (1991): Models of the Process of Technological Innovation, in: Technology Analysis & Strategic Management, 3(4), p. 439-453 Franke, N., von Braun, C. F. (1998): Innovationsforschung und Technologiemanagement: Konzepte, Strategien, Fallbeispiele, Berlin Goldhar, J. D. (1980): Some modest Conclusions, in: Management of Research and Innovation, Amsterdam/New York/Oxford, 283-284 Grant, R. M. (1997): The knowledge-based view of the firm: implications for Management Practice, in: Long Range Planning, 30(3), 450-454 Hall, R., Andriani, P. (2002): Managing knowledge for innovation, in: Long Range Planning, 35, 29-48 Hauschildt, J. (1993): Innovationsmanagement, Vahlen, München Howells, J. (1996): Tacit Knowledge, Innovation and Technology Transfer, in: Technology Analysis & Strategic Management, 8(2), 91-106 Imai, K. (1991): Globalization and Cross-border Networks of Japanese Firms, Paper presented to Japan in a Global Economy Conference, Stockholm School of Economics, 5-6 September Kieser, A. (1969): Innovationen, in: HWO (1), Grochla, v. E. (1969), 741-750 Knight, K. E. (1967): A Descriptive Model of the Intra-Firm Innovation-Process, in: The Journal of Business, 40, 478-496 König, H., Licht, G., Staat, M. (1994): F&E Kooperationen und Innovationsaktivität, in: Gahlen, B., Hesse, H., Ramser, H.J. (1994), Europäische Integrationsprobleme aus wirtschaftswissenschaftlicher Sicht, Tübingen, 219-244 Leonard, D., Sensiper, S. (1998): The Role of Tacit Knowledge in Group Innovation, in: California Management Review, 40(3), 112-125 Li, M., Gao, F. (2003): Why Nonaka highlights tacit knowledge: a critical review, in: Journal of Knowledge Management, 7 (4), 6-14 Madeuf, B. (1984): International technology transfers and international technology payments, Definitions, measurements and firm’s behaviour, in: Research Policy, 13, 125-140 Mansfield, E., Rapoport, J., Schnee, J., Wagner, S., Hamburger, M. (1971): Research and Innovation in the Modern Corporation, W. W. Norton & Co., London Martin, M. J. C. (1984): Managing Technological Innovation and Entrepreneurship, Prentice Hall, Englewood Cliffs Moore, W. L., Tushman, M. L. (1982): Managing Innovation over the Product Life Cycle, in: Readings in the Management of Innovation, Boston/London/Melbourne/Toronto, 131-150 Mowery, D. C., Rosenberg, N. (1978): The Influence of Market Demand upon Innovation: A Critical Review of Some Recent Empirical Studies, in: Research Policy, 8(4) Myers, S., Marquis, D. G. (1969): Succssful Industrial Innovation, National Science Foundation, Washington Nahapiet, J., Ghoshal, S. (1998): Social capital, intellectual capital and the organizational advantage, in: Academy of Management Review, 23, 242- 266 Nonaka, I. (1991): The knowledge-creating company, in: Harvard Business Review, November – December, 96-104 Nonaka, I. (1994): A dynamic theory of organizational knowledge creation, in: Organization Science, 5(1), 14-37 21 Nonaka, I., Konno, N. (1998): The Concept of “Ba”, in: California Management Review, 40(3), 40-54 Nonaka, I., Toyama, R., Konno, N. (2000): SECI, Ba and Leadership: a unified model of dynamic knowledge creation, in: Long Range Planning, 33(4), 4-34 Pfeiffer, W. Staudt, E. (1975): Innovation, in: HWB (4), Grochla, v. E., Wittmann, W. (1975), 1943-1953 Polanyi, M. (1966): The Tacit Dimension, Routledge & Keagan Paul, London Polanyi, M. (1969): The Logic of Tacit Inference. Knowing and Being, Routledge & Keagan Paul, London Rickards, T. (1985): Stimulating Innovation – A Systems Approach, London Ritter, T. (1998): Innovationserfolg durch Netzwerkkompetenz, Gabler, Wiesbaden Roberts E. B. (1987): Introduction: Managing Technological Innovation Technology-Based Organization, in: Sloan Management Review, 22, 19-34 Rogers, E. M. (1983): Diffusion of Innovations, New York Rosenberg, N. (1982): Inside the black box. Technology and Economics, University Press, Cambridge, 143 Rothwell (1974): Innovation in Textile Machinery: Some Significant Factors in Success and Failure, Science Policy Research Unit, 2(6) Rothwell, R. (1992): Successful industrial innovation: critical factors for the 1990s, in: R&D Management, 22 (3), p. 221- 239 Rothwell, R., Zegveld, W. (1985): Reindustrialization and Technology, Longman, Harlow Rüdiger, M., Vanini, S. (1998): Das Tacit knowledge Phänomen und seine Implikationen für das Innovationsmanagement, in: DBW, 58(4), 467-480 Scarbrough, H. (2003): Knowledge management, HRM and the innovation process, in: International Journal of Manpower, 24 (5), 501-516 Schmidt-Tiedmann, K. J. (1982): A new model of the innovation process, in: Research Management, 25, 18-21 Schmookler, J. (1966): Invention and Economic Growth, Cambridge Senker, J. (1993): The Contribution of Tacit Knowledge to Innovation, in: AI & Society, 7, 208-224 Senker, J. (1995a): Tacit knowledge and models of innovation, in: Industrial and Corporate Change, 4(2), 425-447 Senker,J. (1995b): Networks and Tacit Knowledge in Innovation, in: Economies et Sociétés, 29 (9), 99-118 Spring, M. (2003): Knowledge management in extended operations networks, in: Journal of Knowledge Management, 7 (4), 29-37 Stover, M. (2004): Making Tacit Knowledge explicit, in: Reference Services Review, 32 (2), 164-173 Sutton, R. I., Hargadon, A (1996).: Brainstorming groups in context, in: Administrative Science Quarterly, 41 (4), 685-718 Takeuchi, H., Nonaka, I. (1986): The new new product development game, in: Harvard Business Review, January-February, 137-146 Tornatsky, L. G., Eveland, J. D., Myles, G. B., Hetzner, W. A., Johnson, E. C., Roitman, D., Schneider, J. (1983): The Process of Technological Innovation: Reviewing the Literature, in: National Science Foundation, Washington, p. 17 Twiss, B. (1980): Managing Technological Innovation, Longman, London Uhlmann, L. (1978): Der Innovationsprozess in westeuropäischen Industrieländern, Berlin/München Utterback (1971): The process of technological innovation with the firm, in: Academy of Management Journal, 14, pp. 78 22 Utterback, J. M., Abernathy, W. J. (1981): Multivariate models for innovation, in: Omega, 9, p. 429-436 Vedin, B.-A. (1980): Large Company Organization and Radical Product Innovation, Lund/Goch/Bromley Witte, E. (1973): Organisation für Innovationsentscheidungen, Göttingen Zaltman, G., Duncan, R., Holbeck, J. (1984): Innovations & Organizations, Malabar 23