Knowledge that Transforms

A qualitative, longitudinal study of two groups of experienced professionals beginning work in a research organization provided insights into how newcomers with work experience adjust to and become assimilated into new jobs and work settings. Multiple methods were used to collect data on the newcomers' work experiences before and after assuming their new jobs. Repeated interviews with them during their first six months in their new jobs revealed that their past experience affected their assimilation in three primary ways: through the personal identities they had developed and carried with them, through the know-how they had acquired in past jobs and how well it fit with their new jobs, and through the personal tactics they had learned for managing their work and managing change. In general, newcomers with diverse experience adjusted better than those with narrow experience because (1) they found it easier to enact dimensions of their personal identities that allowed them to function effectively in the new situation, (2) they more easily found a fit between know-how gleaned from that experience and their new jobs, and (3) they could draw on a wider variety of personal tactics that they had previously used to help them adjust.

Past literature using the resource-based view of the firm has concentrated on attributes of firms' capabilities and on strategies for exploiting existing firm-specific assets. Comparatively little research has been conducted on how a firm develops, manages, and deploys capabilities to support its business strategy. This study seeks to understand the process of capability development and to establish a model that has both theoretical and practical significance. A longitudinal case study of the electronic commerce strategy formation and implementation at Bolsa de Valores de Guayaquil, an Ecuadorian stock exchange, yielded qualitative data that allowed inductive modeling of the capability development process. The model reveals that capability development in support of a new strategy is a gradual process that is cumulative, expansive, and very dependent on the way that difficult-to-imitate resources and actions are combined. At Bolsa de Valores de Guayaquil, actions that supported the development of the firm's capability to strategize seem to have contributed the most in the initial phase of the strategy formation and implementation; actions that helped the development of the firm's capability to be flexible appear to have contributed the most during the middle phase; and actions that supported the development of the firm's capabilities to integrate and engender trust seem to have contributed the most in the final phase. In addition, the key resources that supported the overall capabilities development process included leadership, organizational culture, information technology, long-term view, and social networks. Implications of this model for both research and practice are discussed.

Theories on the motivation underlying firm boundaries have recently sparked renewed debate. What best explains whether a firm relies on market control or hierarchical control to secure required resources? How do the characteristics of the resources come into play? In this study, we consider a comprehensive path model of the governance mode decision for sourcing technological know-how. By integrating different perspectives on firm boundaries, including transaction cost economics, a resource-based view, and an options perspective, we link characteristics of the technology (i.e., uniqueness, barriers to imitation, commercial uncertainty, technological dynamism) to the perceived threat of opportunism, the potential for sustainable advantage, and the pursuit of a licensing agreement vis-à-vis the outright acquisition of the firm that possesses the desired know-how. We use structural equation modeling to analyze 127 sourcing arrangements. Our results show that technological dynamism and barriers to imitation indirectly influence the governance mode decision by increasing the perceived threat of opportunism. Commercial uncertainty directly influences the governance mode and decreases the likelihood of an acquisition vis-à-vis a licensing agreement. Although uniqueness and barriers to imitation are also positively associated with the perceived potential for sustainable advantage, the potential for sustainable advantage had no direct effect on governance mode. Implications and suggestions for further research are offered.

A strongly identified workforce presents a paradox during times of radical organizational change. Though it may bind people together behind the change initiative, strong organizationwide identification often blinds and potentially blocks the view of new possibilities. Prior research on identity change has tended to either ignore the paradox or resolve it by advocating some middle ground such as hybrid organizational identities or group-level identifications. This paper presents an identity transformation model that capitalizes on the paradoxical tensions over time by unpacking the processes by which individual and organizational levels of identity interact. It operationalizes the model by suggesting linguistic markers that describe the different stages of the process and rhetorical techniques that leaders can use to guide people through the process. To illustrate the model and its application, the paper highlights moments across a 10-year period at Tech-Co, a high-technology company undergoing a significant identity transformation.

Successful application of concurrent development processes (concurrent engineering) requires tight coordination. To speed development, tasks often proceed in parallel by relying on preliminary information from other tasks, information that has not yet been finalized. This frequently causes substantial rework using as much as 50% of total engineering capacity. Previous studies have either described coordination as a complex social process, or have focused on the frequency, but not the content, of information exchanges. Through extensive fieldwork in a high-end German automotive manufacturer, we develop a framework of preliminary information that distinguishes information precision and information stability. Information precision refers to the accuracy of the information exchanged. Information stability defines the likelihood of changing a piece of information later in the process. This definition of preliminary information allows us to develop a time-dependent model for managing interdependent tasks, producing two alternative strategies: iterative and set-based coordination. We discuss the trade-offs in choosing a coordination strategy and how they change over time. This allows an organization to match its problem-solving strategy with the interdependence it faces. Set-based coordination requires an absence of ambiguity, and should be emphasized if either starvation costs or the cost of pursuing multiple design alternatives in parallel are low. Iterative coordination should be emphasized if the downstream task faces ambiguity, or if starvation costs are high and iteration (rework) costs are low.

In this paper, we integrate findings from three field studies of technology intensive organizations to explore the process through which change occurred. In each case, problems were well recognized but had become entrenched and had failed to generate change. Across the three sites, organizational change occurred only after some event altered the accustomed daily rhythms of work, and thus changed the way people experienced time. This finding suggests that temporal shifts—changes in a collective's experience of time—can help to facilitate organizational change. Specifically, we suggest that temporal shifts enable change in four ways: (1) by creating a trigger for change, (2) by providing resources needed for change, (3) by acting as a coordinating mechanism, and (4) by serving as a credible symbol of the need to change.

We empirically explore the legitimating accounts for and against policies precluding workplace discrimination against gay, lesbian, bisexual, and transgender people, focusing on how agents working at both the national level and within organizations use broader cultural accounts in building their legitimating accounts in local settings. The diffusion perspective in institutional theory has portrayed how agents import “ready-to-wear” cultural accounts. In contrast, translation theory depicts how agents interpret and adapt cultural accounts as they fashion them into legitimating accounts for a local setting. An alternative would theorize accounts that are neither strictly borrowed nor idiosyncratically tailored. We advanced a third perspective, drawing on frame analysis as it is used in social movement theory. Framing theory attends to both the importance of cultural building blocks and the embedded ways in which agents relate to and shape systems of meaning and mobilize collective action to change social arrangements. We find that legitimating accounts are intertwined with the construction of social identities, which serve to legitimate, on the one hand, an account maker's participation in the discourse and set of claims, and on the other hand, the involvement of proponents and crucial audiences. We suggest that the mobilizing potential of legitimating accounts rests in part on their messages becoming “autocommunicational,” so that listeners identify themselves with the message.