Ideas and Knowledge (HRACS) Flashcards
3 ways in which knowledge can flow.
- Face-to-face communication, like meeting in a local coffee shop, which is also referred to in the literature as local buzz
- Global pipelines or temporary clusters - so two workers from two companies from around the world, meeting in one city for a conference to discuss a new product.
- And virtual channels of communication like using email, message boards, conference calls or social media.
What is tacit knowledge?
Knowledge being understood by only a small group of insiders, people who understand the local context of
the knowledge as there is no common vocabulary.
Why are face to face interactions richer and more detailed?
You have many levels of intentional and unintentional transmission occurring at the same time so verbal, physical, contextual etc.
It builds trust.
Apple is paying over 5 billion dollars for its new office complex in California to keep over 20,000 of its workers densely clustered in one space so they can have lots of face-to-face meetings and create and receive local buzz which presumably helps them come up with great new ideas and innovations.
Whats a global pipeline?
Companies can set up a permanent partnership or satellite base in that location.
So Google is also headquartered in California but it has opened up offices in New York and London because it thinks having a presence in these cities as well will allow it to pick up on local buzz and hire the best local talent.
So whether they set up their own office or establish a relationship with a local firm in that cluster this is usually called a global pipeline.
Why make global pipelines?
And the idea is that firms develop global pipelines not only to exchange products or services, but also in order to benefit from outside knowledge inputs and growth impulses.
But in the past few years with the wonderful new technology we have the weaknesses of virtual channels are disappearing
Grabher and Ibert (2014)
Instead of being less rich than face-to-face, using internet forums and message boards can be even better in some respects.
Sourcing information from round the world
Bathelt (et al 2004)
“even world-class clusters cannot be permanently self-sufficient in terms of state-of-the-art knowledge creation. New and valuable knowledge will always be created in other parts of the world and firms who can build pipelines to such sites of global excellence gain competitive advantage.”
Maskell (2006) and Power and Jansson (2008)
But what if firms want to build a global pipeline to access global knowledge but can’t afford to set up a permanent presence in another location? Well according to the readings by Maskell (2006) and Power and Jansson (2008) firms can participate in temporary clusters.
Maskell et al. 2006,
“Global face-to-face interaction taking place at international professional gatherings such as trade fairs, conventions and conferences, in many ways functions as a substitute for the buzz of a permanent cluster and may even exceed it.”
Power and Jansson (2008)
Talks about furniture trade fairs where producers and retailers from all over the world meet in cities like Milan at the same time every year to interact and exchange knowledge.
Instead of being less rich than face-to-face, using internet forums and message boards can be even better in some respects.
Grabher and Ibert (2014)
“even world-class clusters cannot be permanently self-sufficient in terms of state-of-the-art knowledge creation. New and valuable knowledge will always be created in other parts of the world and firms who can build pipelines to such sites of global excellence gain competitive advantage.”
Bathelt (et al 2004)
But what if firms want to build a global pipeline to access global knowledge but can’t afford to set up a permanent presence in another location? Well firms can participate in temporary clusters.
Maskell (2006) and Power and Jansson (2008)
“Global face-to-face interaction taking place at international professional gatherings such as trade fairs, conventions and conferences, in many ways functions as a substitute for the buzz of a permanent cluster and may even exceed it.”
Maskell et al. 2006,
Talks about furniture trade fairs where producers and retailers from all over the world meet in cities like Milan at the same time every year to interact and exchange knowledge.
Power and Jansson (2008)
