Peter Ping Li The Duality of Knowhow and

Peter Ping Li The Duality of Know-how and Know-who Peter Ping Li Copenhagen Business School May 2015

The st 1 Problem The Need for a Complete Theory 李平of Peterthe Ping Li Firm: 加州州立大学商学院管理系 终身正教授 Firm’s boundary/scope is often mixed up with firm’s governance mode

The nd 2 Problem The Need for a Complete Theory 李平 of. Peter Knowledge: Ping Li 加州州立大学商学院管理系 终身正教授 Technical knowledge is overemphasized at the expense of social knowledge

Two Dimensions Resource Configuration 李平 Peter Ping Li [Resource-based View] 加州州立大学商学院管理系 终身正教授 vs. Resource Coordination [Transaction Cost View]

Four Components Resource Configuration Narrow focus for specialization 李平 Peter Ping Li 加州州立大学商学院管理系 Broad option终身正教授 for diversification Resource Coordination Formal control for compliance Informal trust for commitment

TCE & RBV Biases TCE: Cost reduction for each transaction event 李平 Peter Ping Li 加州州立大学商学院管理系 终身正教授 RBV: Intra-firm value creation via resource bundles KBV: Intra-firm value creation via shared identity & routines

Transaction Value Lens TVL: Inter-firm joint value creation due to a portfolio of options for an 李平 Peter Ping Li privileged access [social capital & trust) 加州州立大学商学院管理系 终身正教授 to others’ diverse resources [derived from the specialized focus of each] The access serves as strong bridges to connect firms as diverse islands

Formal & Informal Knowledge Application of TVL to Knowledge 李平 Peter Ping Li 加州州立大学商学院管理系 终身正教授 Technical Know-how [for island] [Task, stock, narrow & similar knowledge] Social Know-who [for bridge] [Awareness & Access to distributed know-how] [People, flow, broad & diverse knowledge]

Know-How & Know-Who IQ/rational EQ/emotional Task People Exploitation Exploration MQ/moral

Know-Who as Informal Option Temporal: Sequential Options [deferral & growth options] Task People Spatial: Simultaneous Options [versatile & Novel options]

Know-Who as Informal Option Dyadic Level: Tie strength [Strong tie vs. Weak tie] Relational Embeddedness Dyad Network Level: Portfolio Structure [Diverse statuses & Dense links] Structural Embeddedness

Know-Who & AC Technical Know-how Social Know-who New Absorptive Capacity (AC) Traditional AC focuses on know-how, while I integrates know-how with know-who beyond the relational AC

Know-Who & E-E Know-how for Exploitation: Path-dependent Narrow & deep Intra-firm learning Know-who for Exploration: Path-breaking Broad & diverse Inter-firm learning

Know-Who & Alliance 1 Ex Ante SA Content Design: Know-how Configuration Ex Post SA Process Execution: Know-who Coordination

Know-Who & Alliance 2 Each Island Emphasizing Current Core for Exploitation Bridge Portfolio Emphasizing New Core for Exploration

Framework of SA Learning Antecedent: Theory of the Firm Mediation: Knowledge Consequence: Learning Trust [Informal] External Coord. to Enhance Harmony Know-Who Bridge of Diversification & Novelty Exploration Path-Breaking Learning Option [Broad] Island of Specialization & Standardization Spatial Interplay Control [Formal] Internal Coord. to Reduce Conflict Know-How Temporal Interplay Internal Configuration for Unity Cross-level Awareness Focus [Narrow] Cross-level Access External Configuration for Diversity Exploitation Path-Dependent Learning

Semi-Formal Organization Formal Elements: Path-dependent Narrow & deep Intra-firm learning Informal Elements: Path-breaking Broad & diverse Inter-firm learning

Yin-Yang Balancing Social Issues: Most Paradoxes and Dualities Yang: Path-dependent Narrow & deep Intra-firm learning Yin: Path-breaking Broad & diverse Inter-firm learning