Question

Write an essay of 1000+ words on the topic ‘The Strategic Management of Knowledge, Technology and Innovation.’

Answer 1

ANS.The Strategic Management of Knowledge, Technology and Innovation.

Innovation is feasible in knowledge-based organizations for different reasons. First and foremost, in terms of organization structure, it is often either flat with little hierarchical level , or hierarchical but flexible consisting of three levels; bureaucratic, project team and knowledge layer . A considerable number of authors also state that autonomy is a factor that assists innovation processes. In addition, management’s role is to create and promote a vision of knowledge sharing and creativity both internally and in the external environment of the organization and to orient this flexible and less hierarchical structure ‘toward purposeful knowledge creation.

According to the literature, innovation also requires knowledge acquisition and sharing within the organization. The acquisition depends both on the organization’s existing knowledge base), as well as on knowledge and information coming from the external environments . Many knowledge-based organizations innovate because they have the capacity to absorb new ideas and to adjust new external knowledge to their operations.

Knowledge sharing is essential, because it is easier to generate and formulate new ideas based on existing knowledge. Knowledge workers are the owners of knowledge, which is the most vital asset in a knowledge-based organization . Knowledge can be explicit or tacit; the former is codified in systems or embedded in processes, while the latter is in people’s heads, highly personal and not easily expressible . It is therefore hard to capture tacit knowledge or to communicate it to others. Acquiring and sharing knowledge can be achieved in formal (e.g. meetings) or informal (e.g. chats) ways and it is the key facilitator of organization learning, which is the process of developing new knowledge from insights and experience of people in the organization . Several knowledge-based organizations encourage social networking to enable information and knowledge flow and sharing of tacit knowledge and, lastly, to promote an environment of communication, trust and freedom to innovate

Innovation is conceptualized in different ways in the literature, but the main idea is the introduction of a new idea or behavior. Damanpour (1991) gives a dual definition to innovation, referring to its technical (new products or services) and administrative aspects (new methods, procedures and information flows). An innovation orientation, which is an orientation that enables innovation, can have both positive and negative outcomes for organizations . It seems, however, that in some knowledge-based organizations, negative implications of innovation can outweigh the positive ones; although they maintain a good level of innovation, they cannot achieve high efficiency.

Information technology (IT) can help knowledge-based organizations find a balance between innovation and efficiency through systems that effectively support innovation business processes, control and decision-making, as well as knowledge management (KM). According to Malone (1997), as communication costs decrease, control becomes decentralized and decision-making is divided among connected decision-makers. This encourages creativity and flexibility, as well as efficiency thanks to reduced costs.

In terms of knowledge management, the extent to which IT can assist in balancing innovation and efficiency in a knowledge-based organization depends on the organization’s approach; cognitive or community network . The former emphasizes on static IT-based networks (IT has a crucial role) and information flows, whereas the latter focuses on communication and socializing (IT has an enabling role). Technology offers tools that organize knowledge and resources, enable social interactions internally and externally, encourage organizational learning and help knowledge-workers become more innovative and efficient.

Despite the difficulties involved, knowledge-based organizations can balance the competing nature of innovation and efficiency by addressing problems that an overemphasis on innovation causes: effectively managing knowledge, focusing on meaningful innovations, efficiently utilizing organizational slack and enabling social-networking, as well as culture of collaboration and knowledge-sharing. IT can assist in redressing the innovation-efficiency balance, however IT investments should be targeted and applied appropriately; technology is no cure for an organization’s problems.