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Proceedings of the 3rd European Conference on Intellectual Capital

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Andrei Stefan Nestian<br />

envir<strong>on</strong>ment, in order to make <str<strong>on</strong>g>the</str<strong>on</strong>g> Ba <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> organizati<strong>on</strong> an important attractor in <str<strong>on</strong>g>the</str<strong>on</strong>g> envir<strong>on</strong>ment <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> organizati<strong>on</strong>. This is <str<strong>on</strong>g>the</str<strong>on</strong>g> strategy that <str<strong>on</strong>g>the</str<strong>on</strong>g> innovative companies adopt to impose to <str<strong>on</strong>g>the</str<strong>on</strong>g> followers<br />

rhythm <str<strong>on</strong>g>of</str<strong>on</strong>g> evoluti<strong>on</strong> <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> market. Hamel and Prahalad state that <str<strong>on</strong>g>the</str<strong>on</strong>g> focus <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> strategic process<br />

must be that <str<strong>on</strong>g>of</str<strong>on</strong>g> transforming <str<strong>on</strong>g>the</str<strong>on</strong>g> industry, and not that <str<strong>on</strong>g>of</str<strong>on</strong>g> transforming <str<strong>on</strong>g>the</str<strong>on</strong>g> organizati<strong>on</strong>.(Hamel and<br />

Prahalad, in Bechtold, 1997: 196) The organizati<strong>on</strong> must <str<strong>on</strong>g>the</str<strong>on</strong>g>refore improve its ”c<strong>on</strong>trol-ability”, in<br />

order to be able to ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r c<strong>on</strong>trol <str<strong>on</strong>g>the</str<strong>on</strong>g> envir<strong>on</strong>ment than <str<strong>on</strong>g>the</str<strong>on</strong>g> o<str<strong>on</strong>g>the</str<strong>on</strong>g>r way round. Ano<str<strong>on</strong>g>the</str<strong>on</strong>g>r soluti<strong>on</strong>,<br />

c<strong>on</strong>nected to <str<strong>on</strong>g>the</str<strong>on</strong>g> improvement <str<strong>on</strong>g>of</str<strong>on</strong>g> “resp<strong>on</strong>se-ability” is <str<strong>on</strong>g>the</str<strong>on</strong>g> opening <str<strong>on</strong>g>of</str<strong>on</strong>g> organizati<strong>on</strong> in order to let <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

influences <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> attractors in <str<strong>on</strong>g>the</str<strong>on</strong>g> envir<strong>on</strong>ment manifest inside, allowing <str<strong>on</strong>g>the</str<strong>on</strong>g> development <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> early<br />

warning systems. Early Warning systems are similar to boxes <str<strong>on</strong>g>of</str<strong>on</strong>g> acoustic res<strong>on</strong>ance, created to<br />

maximize <str<strong>on</strong>g>the</str<strong>on</strong>g> impact <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> external attractors. They are based <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> maximisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> informati<strong>on</strong><br />

and envir<strong>on</strong>mental knowledge circulati<strong>on</strong> speed, so <str<strong>on</strong>g>the</str<strong>on</strong>g>y lead to <str<strong>on</strong>g>the</str<strong>on</strong>g> soluti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> beeing instantly<br />

informed by acting simultaneously with <str<strong>on</strong>g>the</str<strong>on</strong>g> envir<strong>on</strong>ment.<br />

Both soluti<strong>on</strong>s mean an orientati<strong>on</strong> towards accepting in <str<strong>on</strong>g>the</str<strong>on</strong>g> SECI cycle <str<strong>on</strong>g>of</str<strong>on</strong>g> as much as possible<br />

c<strong>on</strong>tributors. Brigid L. Bechtold affirms that <str<strong>on</strong>g>the</str<strong>on</strong>g> chaos <str<strong>on</strong>g>the</str<strong>on</strong>g>ory imposes a process <str<strong>on</strong>g>of</str<strong>on</strong>g> c<strong>on</strong>tinuous<br />

strategic development, which involves all members <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> organizati<strong>on</strong> and customers and suppliers.<br />

In her opini<strong>on</strong>, <str<strong>on</strong>g>the</str<strong>on</strong>g> strategic planning should become a c<strong>on</strong>tinuous process because <str<strong>on</strong>g>the</str<strong>on</strong>g> changes in<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> envir<strong>on</strong>ment will need strategic repositi<strong>on</strong>ing most frequently. Involving all members <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

organizati<strong>on</strong> will lead to growth in <str<strong>on</strong>g>the</str<strong>on</strong>g> knowledge <str<strong>on</strong>g>of</str<strong>on</strong>g> organizati<strong>on</strong>s, and to its better matching to <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

envir<strong>on</strong>ment.(Bechtold, 1997: 196)<br />

5. Crises<br />

Passing from an area <str<strong>on</strong>g>of</str<strong>on</strong>g> E-type or NTE-type factors in a FFE-type or FC-type factors area, will be <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

element that produces <str<strong>on</strong>g>the</str<strong>on</strong>g> maximum possible pressure. This passing is characteristic for <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

appearance <str<strong>on</strong>g>of</str<strong>on</strong>g> crises. An organizati<strong>on</strong>al crisis is a low-probability, high-impact event that threatens <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

viability <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> organizati<strong>on</strong> and is characterized by ambiguity <str<strong>on</strong>g>of</str<strong>on</strong>g> cause, effect, and means <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

resoluti<strong>on</strong>, as well as by a belief that decisi<strong>on</strong>s must be made swiftly (Pears<strong>on</strong> and Clair, 1998, p. 60)<br />

The descripti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> organizati<strong>on</strong>’s crisis involves <str<strong>on</strong>g>the</str<strong>on</strong>g> need for resilience <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> organizati<strong>on</strong>, and in<br />

particular <str<strong>on</strong>g>the</str<strong>on</strong>g> resilience <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> knowledge creati<strong>on</strong> system, in chaotic c<strong>on</strong>texts. Pears<strong>on</strong> and Clair<br />

claim that ”Effective crisis planning aims at identifying <str<strong>on</strong>g>the</str<strong>on</strong>g> early warning signals for <str<strong>on</strong>g>the</str<strong>on</strong>g> crisis. The<br />

chr<strong>on</strong>ic crisis stage is sometimes called <str<strong>on</strong>g>the</str<strong>on</strong>g> “clean-up” stage <str<strong>on</strong>g>of</str<strong>on</strong>g> a crisis situati<strong>on</strong>, when <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

organizati<strong>on</strong> tries to recover from <str<strong>on</strong>g>the</str<strong>on</strong>g> crisis, identify its vulnerabilities and learn from <str<strong>on</strong>g>the</str<strong>on</strong>g> failures and<br />

successes <str<strong>on</strong>g>of</str<strong>on</strong>g> its resp<strong>on</strong>se. The crisis resoluti<strong>on</strong> stage is when <str<strong>on</strong>g>the</str<strong>on</strong>g> organizati<strong>on</strong> comes back to<br />

normality and resumes full functi<strong>on</strong>ality”. Identifying early signals is essential when <str<strong>on</strong>g>the</str<strong>on</strong>g>ir evoluti<strong>on</strong> is<br />

n<strong>on</strong>-linear, learning from crisis is essential for <str<strong>on</strong>g>the</str<strong>on</strong>g> implementing future changes and <str<strong>on</strong>g>the</str<strong>on</strong>g> final point is<br />

returning to a new functi<strong>on</strong>al state.<br />

6. Using knowledge<br />

Using tacit knowledge under <str<strong>on</strong>g>the</str<strong>on</strong>g> c<strong>on</strong>diti<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> change in <str<strong>on</strong>g>the</str<strong>on</strong>g> evoluti<strong>on</strong>al directi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> system<br />

caused by <str<strong>on</strong>g>the</str<strong>on</strong>g> influence <str<strong>on</strong>g>of</str<strong>on</strong>g> a new attractor will have to start from testing new c<strong>on</strong>texts and states<br />

through which a system will need to pass, in order to determine <str<strong>on</strong>g>the</str<strong>on</strong>g> new tacit knowledge, relevant for<br />

new c<strong>on</strong>texts. Mobilizing <str<strong>on</strong>g>the</str<strong>on</strong>g> tacit knowledge will have to be d<strong>on</strong>e starting from <str<strong>on</strong>g>the</str<strong>on</strong>g> z<strong>on</strong>es <str<strong>on</strong>g>of</str<strong>on</strong>g> tacit<br />

knowledge explored and validated, but unused in previous c<strong>on</strong>texts, because <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g>ir inadequati<strong>on</strong> to<br />

those c<strong>on</strong>texts. A significant strength <str<strong>on</strong>g>of</str<strong>on</strong>g> tacit knowledge is in its efficiency and efficacy as internal<br />

patterns are combined with incoming informati<strong>on</strong> to develop situati<strong>on</strong>-focused resp<strong>on</strong>ses that are<br />

c<strong>on</strong>text sensitive. (Bennet and Bennet, 2008: 88)<br />

The idea <str<strong>on</strong>g>of</str<strong>on</strong>g> accumulating knowledge through socializing experiences is <str<strong>on</strong>g>the</str<strong>on</strong>g> best way to produce <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

activati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> new tacit knowledge accumulated in <str<strong>on</strong>g>the</str<strong>on</strong>g> past. The characteristic <str<strong>on</strong>g>of</str<strong>on</strong>g> chaotic systems to<br />

repeat a certain behavior each time in a different form leads to <str<strong>on</strong>g>the</str<strong>on</strong>g> idea <str<strong>on</strong>g>of</str<strong>on</strong>g> developing tacit knowledge<br />

and not explicit knowledge. This latter statement is supported by <str<strong>on</strong>g>the</str<strong>on</strong>g> necessity <str<strong>on</strong>g>of</str<strong>on</strong>g> relating to a c<strong>on</strong>text<br />

which makes sense, when defining knowledge. Explicit knowledge is transferable between individuals,<br />

but hardly transferable in o<str<strong>on</strong>g>the</str<strong>on</strong>g>r c<strong>on</strong>texts, while <str<strong>on</strong>g>the</str<strong>on</strong>g> tacit knowledge is difficult to transfer between<br />

individuals, but easily transferable in o<str<strong>on</strong>g>the</str<strong>on</strong>g>r c<strong>on</strong>texts.<br />

The role <str<strong>on</strong>g>of</str<strong>on</strong>g> potentially useful knowledge becomes very important in <str<strong>on</strong>g>the</str<strong>on</strong>g> c<strong>on</strong>text <str<strong>on</strong>g>of</str<strong>on</strong>g> chaotic<br />

envir<strong>on</strong>ment. Be it tacit or explicit, knowledge already accumulated when <str<strong>on</strong>g>the</str<strong>on</strong>g> new attractor manifests<br />

will allow tensi<strong>on</strong> reducti<strong>on</strong> and thus risk reducti<strong>on</strong> towards <str<strong>on</strong>g>the</str<strong>on</strong>g> integrity and identity <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> system, or<br />

else rapid adaptati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> its behavior. We recommend previous explorati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> marginal evoluti<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> envir<strong>on</strong>ment which could in fact be early signals <str<strong>on</strong>g>of</str<strong>on</strong>g> future development <str<strong>on</strong>g>of</str<strong>on</strong>g> a new attractor in <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

300

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