• No results found

Tacit knowledge transfer: an antecedent for innovative ambidexterity : an empirical study in the Dutch communication consultancy industry

N/A
N/A
Protected

Academic year: 2021

Share "Tacit knowledge transfer: an antecedent for innovative ambidexterity : an empirical study in the Dutch communication consultancy industry"

Copied!
90
0
0

Bezig met laden.... (Bekijk nu de volledige tekst)

Hele tekst

(1)

         

Tacit knowledge transfer: an antecedent for innovative ambidexterity. 

~ An Empirical Study in the Dutch Communication Consultancy Industry ~         Written by  Mitchell Steven Bakker              University of Amsterdam  Master of Business Administration  Entrepreneurship & Innovation Track    Thesis: Master  Version: Final  Supervisor:  Dr. Wietze van der Aa  Second reader: Dr. Ileana Maris­de Bresser  Student: Mitchell S. Bakker (10884467)   

(2)

 

Statement of Originality 

This document is written by Student  ​Mitchell Steven Bakker who declares to take full  responsibility for the contents of this document.  I declare that the text and the work presented in this document is original and that no sources  other than those mentioned in the text and its references have been used in creating it.    The Faculty of Economics and Business is responsible solely for the supervision of completion  of the work, not for the contents.    Signature ________________________________ date:    ​  August 19th, 2016         

(3)

Acknowledgements 

After working fulltime in the advertising industry for more than five years, I decided to turn the        ship around by resigning from my job and obtaining a Masters degree in Business        Administration at the Amsterdam Business School. This paper is my personal contribution to the        existing business management literature along with practical recommendations for the        advertising industry. I take full responsibility for every word in this paper, but I also received        help and guidance from others, so, therefore, I would like to express my gratitude to a select        group of people who made this paper possible.  

First of all, I would like to thank my supervisor, Dr. Wietze van der Aa, who gave me the        opportunity to work on a topic that was of my personal interest. His expertise, guidance and        particularly his patience made the process of writing a Master’s thesis an interesting and        satisfying one. From the very first start to the moment of the final deadline, he showed utmost        trust in me and my research, which made it a real pleasure working with him. 

Secondly, I am highly indebted and thoroughly grateful to Cees Wijnnobel and Daisy        Verma from the VEA. Without our partnership and their help I would probably not have been        able to collect such high quality data for my sample in such short amount of time. They way they        showed their trust in our collaboration works inspiring.  

Last but not least, I am thankful to my family, friends, and especially my girlfriend        Janouk van Beek for their support. I am fully aware that none of them have seen much of me the        last couple of weeks, but all of them knew it was for a good cause. I would be lying if I did not        need the occasional motivational words every now and then, so I am very grateful to them to take        on this role. 

   

(4)

Table of contents 

 

Acknowledgements   Abstract 5     Ch. 1 Introduction    Ch. 2 Theoretical Foundation 11  2.1 Competitive Advantage 11  2.2 Knowledge as Competitive Advantage 13  2.3 Absorptive Capacity as Competitive Advantage 20  2.4 Innovative Ambidexterity 23    Ch. 3 Conceptual Framework 27  3.1 Level of Analysis 27  3.2  Tacit Knowledge Transfer and Innovative Ambidexterity 27  3.3 Tacit Knowledge Transfer, Innovative Ambidexterity and  29  Absorptive Capacity   3.4 Organizational Hierarchy Structure 30  3.5 Research Model 31    Ch. 4 Methodology 33  4.1 Research Design 33  4.2  Data Collection and Sample 33  4.3 Measures 35    Ch. 5 Data Analysis and Results 41  5.1  Data Analysis 41 

(5)

5.2 Results 48    Ch. 6 Discussion 53    Ch. 7 Conclusion 59  7.1 Conclusion 59  7.2 Limitations and Future Research 60  7.3 Managerial Implications 61    References 64    Appendices 74         

(6)

Index Tables and Figures 

  Table 1: Respondents ­ Education 42  Table 2: Agency ­ Focus 42  Table 3: Means, Standard Deviation and Variance of IA, TKT, AC, and OHS 45  Table 4a: Descriptive Statistics ­ Normal Distribution 46  Table 4b: Descriptive Statistics ­ Normal Distribution Adjusted 47  Table 5: Means, Standard Deviations, Correlations 48  Table 6: Mediation Effect (Process) 50  Table 7: Results of Hypothesis 52    Figure 1: Research Model 32  Figure 2: Simple Mediation Model 4 (Preacher & Hayes, 2008) 49  Figure 3a:  Simple Moderation Effect on Innovative Ambidexterity Model 1 51  Figure 3b: Simple Moderation Effect on Absorptive Capacity Model 1 51         

(7)

Abstract 

Dutch communication consultancy agencies identify attracting qualified personnel as the largest        barrier for growth. The goal of this study is to find an unconventional solution to this problem,        from an intraorganizational perspective. In order to do so, the relationship between tacit        knowledge transfer, innovative ambidexterity, absorptive capacity, and organizational hierarchy        structure is being studied. It is proposed that tacit knowledge transfer is positively related to        innovative ambidexterity, suggesting that agencies that are capable of transferring tacit        knowledge more successfully outperform agencies that are less capable of tacit knowledge        transfer, whereas innovative ambidexterity functions as a proxy for firm performance. In        addition, a firm’s absorptive capacity is expected to play a significant role in the relationship        between tacit knowledge transfer an innovative ambidexterity. Also, organizational hierarchy        structure is expected to moderate the effect of both the relationship between tacit knowledge        transfer and innovative ambidexterity, as well as the relationship between tacit knowledge        transfer and absorptive capacity. Empirical data has been collected from leading communication        consultancy agencies in the Netherlands (       ​n = 97) via an online survey that was sent out in the        beginning of June 2016. Findings of this paper reveal a positive significant correlation between        tacit knowledge transfer and innovative ambidexterity. Moreover, absorptive capacity appears to        partially mediate this relationship. When examining the effect of organizational hierarchy        structure, no significant correlation effect has been found between both aforementioned relations.        However, there is a positive significant correlation identified between organizational hierarchy        structure and organizational size. The results of this paper enlarge our understanding of the        constructs of knowledge management, absorptive capacity, innovation and organizational        structure, and could also be beneficial for managers in the communication consultancy industry        and beyond to improve their current knowledge base and, thus, improve their sustained        competitive advantage.  

 

Key words​: innovative ambidexterity, tacit knowledge transfer, embedded knowledge, 

absorptive capacity, communication consultancy agencies, organizational hierarchy structure.

 

(8)

Chapter 1: Introduction 

 

"Tell me and I forget. Teach me and I remember. Involve me and I learn."  ~ Benjamin Franklin ~ 

 

The Dutch communication consultancy industry is, with more than 29.000 registered agencies,        known as a very competitive industry (CBS, 2015). Despite the economical crisis, media        spendings continue to grow annually with an average percentage of 1.9% resulting in a total net        market value of € 4.63 billion in 2014. The number of agencies and freelancers also continues to        increase as a result from the attractive industry and easy market entrance, which causes an even        more intensified competitive environment. There is a growing trend among agencies changing        their business models from full­service towards specialized offerings to improve their        competitive position. Also, due to the shift from ‘traditional’ television, radio and print        advertising towards ‘online’ services, agencies are almost obliged to offer holistic solutions to        satisfy its clients.  

According to an extensive industry study conducted by True and Emerce in 2015, the      1    2        largest barrier for growth faced by agencies is the fact that they experience difficulties in        attracting qualified personnel (Emerce, 2015). This is problematic, because communication        consultancy agencies differentiate themselves not only by the strategy they choose and the        specific services they offer, but mostly through the quality and creativity of their customized        solutions. These solutions are, to put in context, the product of an agency's most important set of        resources: its employees and their skills and knowledge. According to Alavi and Leidner (2001),        knowledge­based resources, such as the knowledge of qualified personnel, are usually complex        and difficult to imitate suggesting that knowledge lies at the core of the creation and maintenance        of a competitive advantage (Volberda et al., 2010). So, what if agencies could find an        unconventional way of creating a sustained competitive advantage, not from an HR perspective,        but through the optimization of its current resources? 

(9)

Approaching this question from a resource­based perspective, it is arguable that        communication consultancy agencies could, in theory, outperform other agencies not only by        selecting the resources appropriately, but also by creating an environment where these resources        are able to perform to their full potential (Barney, 1992). Especially the latter can be challenging,        because the organization's knowledge resides within its employees and needs to be expressed and        transferred in such a way that co­workers are able to interpret it in order to become of value        (Alavi & Leidner, 2001). Despite the recognized importance of knowledge transfer, distributing        the right knowledge from the right people to the right people at the desired time is one of the        biggest challenges in knowledge sharing (Nahapiet & Ghoshal, 1998; Adler & Kwon, 2000).        Therefore, it is not surprising that the transfer of knowledge within the organization is a widely        studied subject (Eisenhardt & Martin, 2000). 

Theory shows us that there are two types of knowledge: explicit and tacit knowledge        (Polanyi, 1996). The latter is subject of this study and entails the type of knowledge that can only        be learned through practical experiences in a relevant context (Nonaka, 1994). Lam (2000)        describes tacit knowledge as 'learning­by­doing' and it is seen as the most powerful type        knowledge because it holds the key to a sustained competitive advantage as it cannot be codified        and easily imitated, which makes it difficult to transfer (Holste & Fields, 2010). 

However, the literature remains unclear whether organizations with high tacit knowledge        transfer capabilities are more successful than organizations with less tacit knowledge transfer        capabilities. An answer to this question ought to be found by using innovative ambidexterity as a        proxy for organizational success (Tushman & O'Reilly, 1996). Innovative ambidexterity entails a        firm's capability to simultaneously 'explore new possibilities' and 'exploit old certainties' (March,        1991), and studies show that there is empirical evidence in the relationship between innovative        ambidexterity and sales growth (He & Wong, 2004).  

Also important, following Cohen and Levinthal's (1990) construct of absorptive capacity,        it is not sufficient that co­workers share or transfer their knowledge to other co­workers to        become of value. They state that the value of the newly acquired knowledge should be        recognized, assimilated and actually applied, before it is successfully transferred and, thus, adds        extra value to the organization. Therefore, it is important to take the agency's absorptive capacity       

(10)

into account when studying the relation between tacit knowledge transfer and innovative        ambidexterity.  

In addition, Teece (1996) states that formal and informal organizational structures have        an important bearing on the strength and the kind of innovative activity. He presents several        frameworks to indicate how firm structure and the nature of innovation are linked, and states that        hierarchies are often associated with organizational properties inimical to innovation, such as        slow (bureaucratic) decision making and weak incentives. Therefore, the effect of organizational        hierarchy structure will also be taken into account in this research. 

 

Thus, as the intention is to find an unconventional solution to the practical challenge that Dutch        communication consultancy agencies face, the following research question is formulated: 

 

What is the effect of internal tacit knowledge transfer on innovative ambidexterity? And                          how does absorptive capacity and organizational hierarchy structure influence this                    relationship? 

 

Finding an answer to this question is important as it adds new insights to the existing literature        because the relationship between these constructs has not yet been studied in previous research.        Also, finding a positive correlated relationship between tacit knowledge transfer and innovative        ambidexterity could be of use for managers of communication consultancy agencies, or        managers in general, to create a work environment where tacit knowledge transfer is encouraged.        Moreover, if organizational hierarchical structure and/or absorptive capacity play a substantial        role within these relationships, managers could learn from this paper and adjust their        organization structure or culture if necessary.  

 

Empirical evidence is provided through data from an online questionnaire that was distributed        under the leading communication consultancy agencies of the Netherlands in the beginning of        June 2016. The dataset consists of 97 completed questionnaires and was primarily filled out by        CEOs, Board Members, and Managers. With a response rate higher than 57%, it is safe to say       

(11)

that managers of communication consultancy agencies are sincerely interested in alternative        ways to improve their competitive advantage through the use of internal tacit knowledge transfer.    

The remainder of this paper is structured as follows. Chapter two provides a brief overview of        the existing theory on the three constructs of innovative ambidexterity, tacit knowledge transfer,        and absorptive capacity. These constructs form the foundation for the conceptual model, which        will be presented in chapter three. This model is accompanied by several proposed hypotheses.        Chapter four will describe the design of this research, including measurement scales. Thereafter,        the data will be analyzed and hypotheses will be tested in chapter five. This paper ends with a        critical discussion of the results and an answer to the research question in the conclusion. Also,        practical recommendations for managers in the advertising industry, future research suggestions,        and limitations of the present research will be discussed. 

   

(12)

Chapter 2 ­ Theoretical Foundation 

This chapter provides a brief overview of the literature on the extensive constructs of the        resource­based view, tacit knowledge transfer, absorptive capacity, and innovative        ambidexterity. These constructs are all of importance to be able to address the research question        of this paper. Therefore, after each construct, a concise interim summary is provided that        includes conclusions learned from the literature, creating the context of this study. This chapter        will serve as a foundation for the development of the conceptual framework in the next chapter.   

2.1 Competitive Advantage 

Every successful business requires an effective business model (      Johnson et al., 2008: 60). There        are many different business models out there, but all models consist of several interlocking        elements that together create and deliver value. Commercial businesses usually generate profit        by creating value for their customers in the form of products or services.       In an environment      where competition is high, companies not only need to make a profit to survive, they also need to        establish a sustainable competitive advantage (Barney, 1991). A competitive advantage is        achieved when a firm implements a value creating strategy that is not simultaneously being        implemented by any other current or potential competitor. A competitive advantage is        sustainable when other firms are unable to duplicate the benefits of this strategy (Barney; 1991:        102). Moreover, empirical evidence shows that competitive advantage positively correlates with        firm performance (Day, 1984; Porter, 2011). 

 

From Positioning School to Resource­Based School 

Based on the strategic management literature, there are basically two ways of looking at the        construct of competitive advantage: from an external (industry) perspective and from an internal        (firm) perspective. The first outside in view stems from Structure­Conduct­Performance        paradigm, which illustrates that industry structure determines much of the performance of the        firms within an industry, but that individual firms can outperform others by choosing successful        strategies (Bain, 1968). Porter’s (1979) 5­forces model shows the importance of analyzing the        industry’s competition and attractiveness, and demonstrates that the collective strength of these       

(13)

external forces are the core drivers of a firm’s strategic advantage and profitability. Hence,        profitable firms are those firms that create a competitive advantage by occupying favorable        positions in attractive industries (Porter, 1979). This positionings perspective rests on the        neoclassical market model and assumes that all firms have equal access to all the resources that        are necessary to enter a market and that all firms will therefore be the same (Diamond, 1965).  

Despite this highly recognized school of thought in the 1980s, the assumption that all        firms in one industry are equal led to the counter internal perspective in the 1990s that is known        as the resource­based view (Wernerfelt, 1984; Barney, 1991). This view focuses merely on        internal strengths and weaknesses of the organization, rather than external opportunities and        threats of the industry, and argues that firms are bundles of heterogeneous resources and        capabilities that are imperfectly mobile across the firm (Barney, 1991). As a consequence, the        imperfect mobility of heterogeneous resources can lead to a competitive advantage for firms that        have superior resources or capabilities. Empirical evidence shows that a sustained competitive        advantage is best achieved when organizational resources and capabilities are rare, valuable,        non­substitutable, and imperfectly imitable (Barney, 1986; 1991).  

 

Firm Dynamic Capabilities 

An extension of the resource­based view was initiated by Teece et al. (1997) after explaining that        the resource­based view does not adequately explain how and why certain firms have a        competitive advantage in unpredictable markets that change rapidly (Eisenhardt & Martin,        2000). Teece (2007) shows empirical evidence that the sustainable competitive advantage of        firms depends on their ability to create, transfer, utilise and protect of difficult­to­imitate        commercial and industrial knowledge assets by assessing large enterprises. These assets include        both technical and organizational tacit and codified know­how, which can be protected through        trade secrets, copyrights or patents. The extent to which these assets are transferable and usable        inside the firm, but also difficult for outsiders to attain access to or to recreate, determine how        sustainable the competitive advantage is.  

   

(14)

Interim Summary: Competitive Advantage of Communication Consultancy Agencies 

In sum, theory shows us that it is important for communication consultancy agencies to create a        competitive advantage relative to other agencies, especially in high competitive markets such as        the communication industry, because evidence shows us that a competitive advantage is        positively related to firm performance. Not only is it important for organizations to determine the        proper strategy and selecting an attractive market (outside in approach), it is equally important        for firms to develop dynamic capabilities in order to be able to react to market changes (inside        out approach). The resource­based perspective entails that the best way of doing this is by        choosing optimal resources, which are, in the case of communication consultancy agencies, its        employees. In addition, the most important asset that these employees carry are their unique set        of skills and knowledge. 

 

2.2 Knowledge as competitive advantage 

According to Alavi and Leidner’s (2001) extensive literature study, knowledge­based resources        are usually difficult to imitate and complex, which has led to multiple studies suggesting that        knowledge lies at the core of the creation and maintenance of competitive advantage (Volberda        et al, 2010). So, what defines knowledge? 

 

2.2.1 Knowledge definition 

Some authors address the task of defining knowledge through the distinction between        knowledge, information, and data. A generally held view is that data is raw numbers and facts,        information is processed data, and knowledge is authenticated information (Dretske, 1981;        Machlup, 2014; Vance, 1997). In order for information to become knowledge, it has to be        individually interpreted and personalized based on individual’s personal experiences,        competences and skills. In other words, knowledge is information possessed in the mind of        individuals: it is personalized information (which may or may not be new, unique, useful, or        accurate) related to facts, procedures, concepts, interpretations, ideas, observations, and        judgments (Alavi & Leidner, 2001: 109). Because knowledge is personalized, in order for        individual’s or group’s knowledge to be useful for others, it must be expressed in such a way that       

(15)

receivers are able to interpret it. Therefore, individuals must share a certain knowledge base to        arrive at the same understanding of data or information (Alavi & Leidner, 2001). 

 

2.2.2 Knowledge perspectives 

Knowledge can be seen from several perspectives: (1) a state of mind, (2) and object, (3) a        process, (4) a condition of having access to information, or (5) a capability (Alavi & Leidner,        2001). Schubert et al. (1998) have described knowledge as “a state or fact of knowing” and refer        to knowing as a condition of “understanding gained through experience or study; the sum or        range of what has been perceived, discovered, or learned.” The first perspective of knowledge as        a state of mind focuses on enabling individuals to expand their personal knowledge and apply it        to the organization’s needs. The second perspective defines knowledge as an object that can be        viewed as a thing to be stored and manipulated (Eriksson & Raven, 1996; McQueen, 1998).        Thirdly, knowledge can also be seen as a process of simultaneously knowing and acting. This        perspective focuses on applying expertise knowledge (Zack, 2002). The fourth perspective posits        the access to information, and claims that organizational knowledge must be organized to        facilitate access to and retrieval of content (McQueen, 1998). This view is often seen as an        extension of the second view that sees knowledge as an objective, but then with a special        emphasis of the accessibility of the knowledge objects. Finally, Carlsson et al. (1996) claim that        knowledge can be viewed a capability with the potential for influencing future action. This view        is redefined by Watson (2008), suggesting that knowledge is not so much a capability for        specific action, but rather the capacity to use information.  

The implication of these different concepts of knowledge is that each view suggests a        different strategy for managing knowledge. This research follows Alavi and Leidner’s        (2001:110) article that states that the perspective that is relied upon most implies the distinction        of knowledge from data and information, which is closely related to the first perspective of        ‘knowledge as a state of mind’. Knowledge as a state of mind implies that employees are able to        expand their personal knowledge for the sake of the organization's needs. So, in an industry as        the communication consultancy industry, where the employee’s knowledge is a key antecedent       

(16)

for developing a competitive advantage, it is justifiable to look at knowledge from this particular        perspective. 

 

2.2.3 Knowledge dimensions 

When analyzing knowledge of organizations, two dimensions are identified: the epistemological        and the ontological dimension (Lam, 2000). The first refers to the expression of knowledge,        namely, Polanyi’s (1966) distinction between tacit and explicit knowledge. The latter        distinguishes between the loci of knowledge which can reside at the individual or collective        level. 

 

The Epistemological Dimension: Explicit vs. Tacit knowledge 

Looking at the epistemological dimension, human knowledge can be articulated explicitly or        manifested implicitly (tacit), and there are three critical differences between them (Lam, 2000:        490). The first difference involves the area of codifiability and mechanisms for the transfer of        knowledge. Explicit knowledge can be codified, be abstracted and stored in the ‘objective        world’, and be understood and shared without the ‘knowing subject’. Popper (1972) refers to this        world as ‘World three’. Tacit knowledge, in contrast, is intuitive and unarticulated and resides in        Popper’s ‘World two’ where knowledge cannot be communicated, understood or used without        the ‘knowing subject’. Examples of human tacit knowledge in organizations are operational        skills and know­how acquired through practical experience. Because this type of knowledge is        action­oriented and has a personal quality, it is therefore difficult to formalize or communicate.        Explicit knowledge, on the other hand, can be formulated, abstracted and transferred across time        and space (Lam, 2000). Secondly, the main method of acquisition and accumulation differs        between the two forms of knowledge. Explicit knowledge can be generated through logical        deduction and acquired by formal study, whereas tacit knowledge can only be acquired through        practical experience in relevant context (Nonaka, 1994). The latter is also referred to as        ‘learning­by­doing’ (Lam, 2000: 490). The final difference between both types of knowledge lies        within their potential for aggregation and modes of appropriation. Explicit knowledge can be        aggregated and stored in one or more locations, such as libraries, databases, computers, etc.,       

(17)

without the participation of the knowing subject. Tacit knowledge, on the contrary, is personal        and contextual. 

Although it is possible to distinguish conceptually between external and tacit knowledge,        in practice they are closely connected. Nonaka and Takeuchi (1995) claim that new knowledge is        generated through the combination and via dynamic interaction of both types by presenting        empirical evidence from Japanese companies. However, Lam (2000) explains that firms differ in        their capacity for fostering the interaction between them, which means that the relative        importance and status of the two types could vary. Holste and Fields (2010: 128) refer to several        studies empirical evidence shows that tacit knowledge is the most useful type of knowledge in        some professional organizations. More importantly, the creation of new knowledge in itself        requires the use and generation of tacit knowledge. Thus, Polanyi (1966) states that the learning        and innovative capability of an organization critically depend on its capacity to mobilize tacit        knowledge and foster its interaction with explicit knowledge.  

 

The Ontological Dimension: the Individual vs. Collective 

The second dimension of knowledge entails that knowledge within the firm can both exist at the        individual level or be shared among members of the organization (Nonaka, 1994; Cabrera &        Cabrera, 2002). Individual knowledge is that part of the organization’s knowledge which is        embodied in the brains and skills of the individual. This knowledge differs per person and is        transferable to others (Lam, 2000). Due to the cognitive limits of the individual, the individual's        knowledge is specialized and domain­specific. This is known as the ‘bounded rationality’        problem (Simon, 1957).  

Collective knowledge resembles the ‘memory’ or ‘collective mind’ of the organization,        and exists rather between individuals than within individuals (Walsh & Ungson, 1991). Glynn        (1996) describes that collective knowledge can be seen as the sum of the individuals’ knowledge,        depending on the mechanisms that translate individual into collective knowledge. Lam (2000)        adds that the accumulated knowledge of the organization is stored in its rules, procedures,        routines, and shared norms which guide the problem­solving activities and patterns among its        members.  

(18)

The distinction between the individual or the collective knowledge dimension allows us        to determine the level of analysis, which is, in this research, the collective level. 

 

The Two Dimensions of Knowledge Connected 

Collins (1993) was the first to relate the explicit­tacit and individual­collective dimensions of        knowledge and made the distinction of dividing knowledge into four categories: (1) embrained,        (2) embodied, (3) encoded, and (4) embedded knowledge. With this distinction, he tried to        explain the psychological and behavioural aspects of knowledge. This typology is adapted by        Blacker (1995) to describe the different ‘images’ of knowledge within organizations by        integrating the cognitive and organizational dimensions (Lam, 2000). 

Embrained knowledge (individual­explicit) depends on the conceptual skills and        cognitive abilities of the individual. It is formal, abstract or theoretical knowledge and is seen as        a privileged social status in Western societies (Layton, 1974).  

Embodied knowledge (individual­tacit) is action oriented and depends on abstract        theoretical reasoning and builds upon practical experiences. Its generation cannot be separated        from application (Lam, 2000).  

Encoded knowledge (collective­explicit) has been codified and stored in recipes,        blueprints, written rules, and procedures. It generates unified and predictable patterns of        behaviour and knowledge in organizations. It is, according to Lam (2000), simplified and        selective, and therefore it fails to capture and preserve the tacit skills and judgment of        individuals.  

Embedded knowledge (collective­tacit) resides in organizational routines and shared        norms. This category is contextual, relation­specific and spread out over the organization. Lam        (2000) explains that it is organic and dynamic: due to absence of written rules, knowledge that is        capable of supporting complex patterns of interaction emerges.  

According to Spender (1996), organizational knowledge results from the uninterrupted        interaction between these four classes of knowledge, which requires that the individual’s        knowledge and skills are accumulated into organizational and shared knowledge (Spender,        1996). All individuals learn and gain experience­based knowledge in their daily work. Once this       

(19)

personal knowledge and its meaning is shared with others, co­workers for instance, they can start        benefiting from it. At this moment, personal knowledge has become a public (organizational)        good (Wasko & Faraj, 2000).  

In addition, according to Nonaka et al. (2006), organizational knowledge is not only a        result of the sum of the knowledge of its co­workers, it is also a result of the interaction between        the organization and its environment. This suggests that organizations are also subject to the        changing and evolving nature of knowledge. In order to create new organizational knowledge,        adjustments and updates based on new insights and newly developed ideas that arise from        practice should be captured, categorized and contextualized throughout all layers of the        organization. To conclude, this means that organizations can actually learn and acquire        knowledge over time, and that individual and organizational knowledge are interdependent and        cannot be separated.  

 

2.2.4 Transfer knowledge assets 

The literature describes knowledge transfer as the most important component of knowledge        management, because it proves to be the essential element for organizational learning and        innovation (Goh, 1998), and it holds the key to a competitive advantage (Desouza, 2003).  

Smedlund (2008) states that the transfer of knowledge assets is successful not only when        knowledge becomes accessible but when they are used to create accumulated value. In other        words, without actually using the shared information, knowledge transfer in organizations is not        successfully completed.  

Eisenhardt and Martin (2000) indicate that the transfer of knowledge assets can both        reside within the firm (intraorganizational) or between firms (interorganizational).        Interorganizational knowledge transfer is embedded in its organizational process, procedures,        routines and structures, and cannot be moved into an organization without the transfer of clusters        of individuals with established patterns (Teece, 2000: 36). Empirical evidence presents that this        is most frequently accomplished via personal relations or through alliances, joint ventures, or        mergers and acquisitions of business units. Intraorganizational knowledge transfer, in the        contrary, involves organizational learning among different units or colleagues (Tsai, 2001). Since       

(20)

knowledge assets are grounded in the experience and expertise of those individuals working in a        company, therefore, a firm has to provide the right learning structure to shape knowledge into        competencies (Smedlund, 2008). Not only physical and resource allocation structures are        important drivers for knowledge transfer, also the social structure is key in intraorganizational        knowledge transfer (Teece, 2000).  

Smedlund (2008) states that the transfer of knowledge assets within organizations relies        on four components: social network structure, norms, beliefs, and trust. Norms form the common        context for the functions performed in the social network of an organization. Shared beliefs        include a common vision of the future and function as a motivational element. Finally, trust        among individuals or in the organizational structure ensures that the activities of others are        considerably predictable (Nahapiet & Ghoshal, 1998; Adler & Kwon, 2000). Smedlund (2008)        based this claims on a thorough literature study, and identifies trust as the most dominant factor        of tacit knowledge transfer, because: “When the message is uncodified, trust has to reside in the        quality of the personal relationships that bind the parties or people through shared values and        expectations rather than the intrinsic plausibility of the message” (Nahapiet & Ghoshal, 1998:        255).  

Despite the recognized importance of knowledge transfer, distributing the right        knowledge from the right people to the right people at the right time is one of the biggest        challenges in knowledge sharing (Riege, 2005: 23). Barriers of knowledge transfer reside within        the individual, but could relate to either other individuals or groups within or between business        functions. Riege (2005) developed a list of 17 potential individual barriers for knowledge        sharing, ranging from: general lack of time to share knowledge to low awareness of potential        value of knowledge sharing, and use of strong hierarchy to lack of trust in people. Many of these        barriers are discussed separately, but will more likely be intertwined. He also developed a        14­point list of potential organizational barriers for knowledge sharing. These organizational        barriers range from missing or unclear incentives for knowledge sharing to the shortage of        formal and informal spaces to share, reflect and generate (new) knowledge, and from lack of        leadership in clearly communicating the benefits and values of knowledge sharing practices to        internal competitiveness within business units.  

(21)

 

Interim Summary: Tacit Knowledge Transfer in Communication Consultancy Agencies 

In sum, theory suggests that that an organization’s knowledge lies at the core of developing a        competitive advantage. This is particularly the case in the communication consultancy industry,        because the most valuable assets or resources are the agency’s employees. This study follows the        practical concept of knowledge as ‘a state of mind’, meaning that employees expand their        knowledge for the benefit of the agency. Also, the theory makes a distinction between tacit and        explicit knowledge, whereas tacit knowledge is seen as the key antecedent for a sustained        competitive advantage because it is personal, action­oriented and context­related, which makes it        difficult to formalize and communicate. Tacit knowledge also exists within the organization,        which is the sum of the individual's knowledge and it is stored in the organization's rules,        procedures, routines and norms. The combination of tacit­collective knowledge is called        ‘embedded knowledge’. Polanyi (1966) states that an agency’s capacity to mobilize its tacit        knowledge the determinant is of the agency’s innovative capabilities. In order to mobilize tacit        knowledge, it needs to be shared or transferred among co­workers. However, transferring the        knowledge by making it accessible is not enough: it also needs to be properly used. This process        of knowledge transfer is known as a firm’s absorptive capacity.  

 

2.3 Absorptive Capacity as Competitive Advantage 

The term absorptive capacity was first mentioned in a study on international technology transfer        (Kedia & Bhagat, 1988). Nonetheless, it only became one of the most studied research topics of        the previous two decades since the contribution of Cohen and Levinthal’s (1990) paper in early        90s. This paper defined absorptive capacity as ‘the ability of a firm to recognize the value of        new, external information, assimilate it, and apply it to commercial ends’ (Cohen & Levinthal,        1990: 128). This means that access to new knowledge solely is not enough; firms need to        develop the capability to manage the new knowledge (Zahra & George, 2002). Empirical        evidence shows that absorptive capacity can be seen as an explanation of competitive advantage        (Cohen & Levinthal, 1990), and, thus, firm performance (Lane et al., 2001; Tsai, 2001).        Moreover, the ability to exploit external knowledge is also the key component of innovative       

(22)

capabilities. Cohen and Levinthal (1990) state that the firm’s ability to recognize the value of        new, external information, assimilate it, and apply it to commercial ends is essential to its        innovative capabilities.   

 

Key Antecedents of Absorptive Capacity 

Key antecedents of absorptive capacity include managerial antecedents, intraorganizational        antecedents, interorganizational antecedents and prior related knowledge (Volberda et al., 2010:        941).  

Firstly, dominant managers could affect the absorptive capacity of an organization by the        limits of their cognitive capabilities to scan broadly for new knowledge, and identifying and        using key employees who could serve as gatekeepers and boundary spanners (Volberda, 1996).        This also accounts for the capacity of managers to create, extend, or modify the knowledge        resource base of an organization (Adner & Helfat, 2003). In addition, the absorptive capacity of a        firm could be influenced by various formal and informal managerial incentives (Volberda et al.,        2010).  

Secondly, intraorganizational factors could influence the level and type of absorptive        capacity (Van den Bosch et al., 1999). Examples of these factors are the organizational form,        such as organizational hierarchy structure, incentive structures, informal networks, and internal        communication. Despite the fact that Cohen and Levinthal (1990) emphasized the importance of        these organizational mechanisms on absorptive capacity, empirical evidence is still missing        (Volberda et al., 2010). 

Thirdly, interorganizational antecedents like gaining knowledge from external sources        and learning are essential in absorptive capacity. The path and organizational context may        influence a firm’s absorptive capacity; such as social embeddedness and network position        (Volberda et al., 2010). 

Fourthly, prior related knowledge was accepted by many as the most important        antecedent to absorptive capacity (Cohen & Levinthal, 1990). This is, however, challenged by        more recent contributions to the literature (Van den Bosch et al., 1999). The understanding of the        knowledge absorption on lower level of analysis, such as the individual or group level, is still       

(23)

limited, which means that the process that connects prior related knowledge to the firm’s        absorptive capacity remains unclear.  

 

Absorptive Capacity Process 

These antecedents all affect the process of absorptive capacity (Volberda et al., 2010). Theory on        the process of absorptive capacity varied over the years. It started with Cohen and Levinthal’s        well known dimensions of recognition, assimilation, and exploitation (1990). Zahra and George        (2002) altered this into four dimensions and splitted up the construct of absorptive capacity into        potential and realized absorptive capacity. Potential absorptive capacity contains knowledge        acquisition and knowledge assimilation, whereas realized absorptive capacity refers to the        transformation and exploitation of knowledge.  

Knowledge acquisition refers to the identification and acquisition of knowledge relevant        for the organization (Zahra & George, 2002). Step two includes knowledge assimilation, which        is the inclusion, conversion, and interpretation of information (Cohen & Levinthal, 1990). In the        transformation phase, new and existing information is combined (Zahra & George, 2002). In the        final and fourth step, transformation, the application of knowledge is commercialized.  

To sum up, the literature clearly describes the process of absorptive capacity in detail and        how they change over time (Volberda, et al., 2010:942). Despite these alterations by different        studies, the absorptive capacity process remains close to Cohen and Levinthal’s original process        three­step process of knowledge recognition, assimilation and application.  

 

Outcomes of Absorptive Capacity 

Most studies have focused on the tangible outcomes of absorptive capacity, but also seem to        result in intangible outcomes (Volberda et al., 2010). Examples of intangible outcomes include        knowledge search (Shenkar & Li, 1999), interorganizational learning (Lane et al., 2001), and        intraorganizational transfer of knowledge (Gupta & Govindarajan, 2000).  

When it comes to tangible outcomes, absorptive capacity is seen as an explanation of        competitive advantage (Cohen & Levinthal, 1990), firm performance (Lane et al., 2001; Tsai,       

(24)

2001), innovation (Stock et al., 2001), and exploitation/exploration orientation (Lewin et al.,        1999).  

 

Interim Summary: Absorptive Capacity in Communication Consultancy Agencies 

In sum, theory shows us that a firm’s absorptive capacity is often seen as the explanation of a        competitive advantage (Zahra & George, 2002), as it describes a firm’s ability to recognize,        assimilate and apply new and external knowledge (Cohen & Levinthal, 199). This also accounts        for communication consultancy agencies as they are no exception for the need of developing        absorptive capacities to enhance their competitive advantage. Despite alteration of the theory on        the absorptive capacity process over the years, the majority of the theories remain close to Cohen        and Levinthal’s (1990) original three­step process. In addition, Volberda et al. (2010) have        identified several antecedents of absorptive capacity (managerial, intraorganizational,        interorganizational, and prior related knowledge), and their paper suggests that empirical        evidence is still missing, making them interesting study topics. This paper can not cover all        antecedents, and will therefore focus on only one of them: organizational hierarchy structure of        communication consultancy agencies. This is a conscious decision by the researcher because        DeCanio et al. (2000) show empirical evidence that organizational hierarchy structure is the most        important factor for the adoption of innovations. Finally, absorptive capacity can also be seen as        an outcome, both tangible and intangible. The outcome of absorptive capacity studied in this        paper is tangible in nature. Cohen and Levinthal (1990) state that absorptive capacity is essential        to a firm’s innovative capabilities. For a communication consultancy agency to develop        innovative capabilities, it needs to be able to deal with both exploitation and exploration of its        knowledge base. 

 

2.4 Innovative Ambidexterity 

There is a growing tendency in the academic literature that the best firms are those who can        simultaneously balance explorative innovation with exploitative innovation in an ambidextrous        way (He & Wong, 2004; Morgan & Berthon, 2008; Raisch & Birkinshaw, 2008; Tushman &        O’Reilly, 1996). Tushman and O’Reilly (1996: 11) claim that almost all successful organizations       

(25)

evolve through relatively long periods of incremental (exploitative) innovations disrupted by        environmental shifts and revolutionary change. These interruptions may be driven by        competitors, regulations, technology, or significant changes in political and economic conditions,        and can upset the congruence that has been part of the organization’s success. Unless the        competitive environment remains stable, which is high unlikely, firms must confront        revolutionary change (Tushman & O’Reilly, 1996: 12). If an environment is stable and changes        only gradually it is possible for an organization to evolve slowly through continuous incremental        change. But, many managers have learned that slow evolutionary change in a fast­changing        industry is just a path to the graveyard. 

 

Innovation Definition and Ambidexterity Construct 

This paper follows Bessant and Tidd’s (2007) definition of innovation, which states that        innovation is the process of translating ideas into useful new products, processes, and services.        Exploitation of ideas is associated with activities such as selection, refinement, efficiency, and        implementation, and exploration of ideas refers to the concepts of experimentation, search,        efficiency, and discovery (Raisch & Birkinshaw, 2008: 375). March (1991) briefly summarizes        the distinction in ‘exploration of new possibilities’ and ‘exploitation of old certainties’.        Exploitation of existing capabilities is often required to explore new capabilities, and exploration        of new capabilities simultaneously enhances a firm’s existing knowledge base. Thus, exploration        and exploitation form a dynamic path of absorptive capacity (He & Wong, 2004: 483). 

In order to be ambidextrous, firms need to coordinate the inherent tension that exist        between acts of exploration and exploitation (March, 1991). Chang and Hughes (2012) explain        that these tensions are brought about conflicting task demands and competing firm design        requirements. Traditionally, these problems were addressed as an inevitable trade­off forcing        organizations to choose either explorative or exploitative innovation pathway due to scarce        resources (Raisch & Birkinshaw, 2008). Ahuja et al. (2001) show empirical evidence that        exploitation­focused firms may improve short­term performance, however, they might not be        able to adequately respond to environmental changes resulting in a competency trap. In contrast,        exploration­focused firms may improve the organization’s ability to renew and improve its       

(26)

knowledge base, but could easily fall into the trap of deliberately looking for innovation without        rewards (Volberda & Lewin, 2003). Jansen et al. (2005) confirm that pursuing both opposing        strategies are increasingly important, especially when competition intensifies and technical        renewal accelerates. Firms that are not able to develop and maintain this balance have the risk of        missing superior performance (Volberda, 1996; Eisenhardt & Martin, 2000). Moreover,        empirical evidence shows that the interaction between explorative and exploitative innovation        strategies is positively related to sales growth rate. Also, the relative imbalance between        explorative and exploitative innovation strategies is negatively related to sales growth rate (He &        Wong, 2004). So, how can a firm engage in sufficient exploitation to ensure its current viability,        and, simultaneously, devote enough energy to exploration to ensure its future viability? 

 

Difference in Innovative Ambidexterity in SME and Large Enterprises 

Despite wide consensus that balance between the two innovation types is key, a clear        understanding of how innovative ambidexterity can be achieved leaves a disproportionate gap in        the literature, especially in small­to­medium­sized (SME) firms (Chang & Hughes, 2012). Prior        studies have shown that SMEs tend to use different means to pursue innovative ambidexterity in        comparison to larger organizations. Larger firms often have superior access to internal and        external resources, which allows them to benefit from a combined dimension of innovative        ambidexterity. Resource­constrained firms, such as SMEs, however, could benefit from the use        of a balanced dimension of innovative ambidexterity. Cao et al. (2009: 782) state that balanced        dimension refers to ‘the match in the relative magnitude of explorative and exploitative        activities’ and that combined ambidexterity refers to ‘increase of combined magnitude of both        explorative and exploitative activities’. In addition, it is widely mentioned in the literature that        SMEs differ from larger firms on multiple levels: the availability of resources such as human        capital and financial capital (Forbes & Milliken, 1999), the level of managerial expertise (Forbes        & Milliken, 1999) to effectively manage changing internal and external environments (Ebben &        Johnson, 2005). In addition, SMEs tend to be less structured, bureaucratic and diversified than        larger firms (Forbes & Milliken, 1999), and possess less formal systems like procedures and        planning activities (Busenitz & Barney, 1997). Andriopoulos & Lewis (2009) therefore conclude       

(27)

that SMEs face greater challenges in dealing with contradictions, tensions, and tradeoffs        associated with explorative and exploitative innovation compared to larger firms.  

 

Organizational Hierarchy Structure and Innovative Ambidexterity 

Organizations with strong hierarchies are often associated with organizational characteristics that        are harmful to innovation, such as slow (bureaucratic) decision making. Every type of        innovation, regardless of it is explorative or exploitative by nature, requires access to capital        (Teece, 1996: 200). Financial decision making in strong hierarchical organizations usually        requires approval from top management or some financial committees, which slows down the        innovation process. Also, when more people are involved in the innovation decision making        process, the more likely it is that internal politics will influence the decision making process and        compromises will be made, instead of acting in the organization’s best interests.  

 

Interim Summary: Innovative Ambidexterity in Communication Consultancy Agencies 

In sum, theory shows us that the best firms simultaneously balance between explorative and        exploitative innovation, whereas balance refers to the match in the relative magnitude of both        contradicting activities (Cao et al, 2009). March (1991) explains the different activities as the        ‘exploration of new possibilities’ and the ‘exploitation of old certainties’. Empirical evidence        that suggests that a balance between the two activities is provided through a significant        correlation effect between a balanced innovative ambidexterity and sales growth (He & Wong,        2004). However, achieving such balance appears to be difficult due to the scarcity of resources        (Raisch & Birkinshaw, 2008), especially for SMEs (Chang & Hughes, 2012). To conclude,        innovative ambidexterity forms the dynamic path of absorptive capacity (He & Wong, 2004).    

(28)

Chapter 3 ­ Conceptual Framework 

This chapter advances the understanding relationship between tacit knowledge transfer on        innovative ambidexterity, whereas innovative ambidexterity is seen as a proxy for firm        performance and, thus, organizational success (Tushman & O’Reilly, 1996). As discussed in the        previous chapter, absorptive capacity plays a central role in both concepts knowledge transfer        and innovation exploration/exploitation (Goh, 1998; Smedlund, 2008; Volberda et al., 2010).        This paper ought to create a better understanding of the relationships between these three        constructs, including the role of organizational hierarchical structure. In the following sections,        the expected relations between the three constructs are discussed and hypotheses are formulated.        This chapter ends with a physical representation of the research model.  

 

3.1 Level of analysis 

In order to achieve a better understanding of the relation between the three constructs, it is        important that all of the constructs are studied at the same level. Crossan and Apaydin (2010)        explain with their multidimensional framework of organizational innovation that there are three        determinants of innovation: (1) the individual and group level, (2) the organizational level, and        (3) the process level. Since this paper follows the resource­based and the knowledge­based view,        in combination with the dynamic capabilities perspective, the level of analysis of this paper will        focus solely on the organizational level. To study the organizational level of absorptive capacity,        intraorganizational tacit knowledge transfer and the organization's innovative ambidextrous        capabilities, managers of Dutch communication consultancy agencies were asked to score their        organization in terms of these constructs. Therefore, the unit of analysis are the agency’s        managers, the level of analysis is the organizational level, and the unit of observations are the        aforementioned constructs.  

 

3.2 Tacit Knowledge Transfer and Innovative Ambidexterity 

The resource­based view (Wernerfelt, 1984; Hamel, 1991; Prahalad & Hamel, 1990; Barney,        1991) and the dynamic capabilities perspective (Teece et al., 1997; Eisenhardt & Martin, 2000)        highlight the importance of both resources and dynamic capabilities of firms in order to develop       

(29)

a competitive advantage. Barney (1991) states that a sustained competitive advantage is best        achieved when a firm’s resources and capabilities are rare, valuable, non­substitutable, and        imperfectly mobile. In line with this reasoning is the knowledge­based view, which indicates that        a firm’s knowledge lies at the core of the creation and maintenance of a competitive advantage        (Volberda et al., 2010), because knowledge­based resources are usually difficult to imitate and        complex (Alavi & Leidner, 2001).  

Looking at the two dimensions of knowledge, knowledge can be expressed explicitly or        implicitly (tacit), and can reside at the individual or at the collective level (Polanyi, 1966;        Nonaka, 1994; Lam, 2000). When putting both tacit and explicit knowledge to the test of        Barney’s four attributes of a potential sustained competitive advantage, we can assume that tacit        knowledge plays a more dominant role in developing a sustained competitive advantage than        explicit knowledge. This is because explicit knowledge, in contrast with tacit knowledge, can be        codified and easily imitated or spread throughout the organization by sharing the codified        knowledge in the form of documents. Tacit knowledge, in contrary, is experience­based and        cannot be codified or spread through documentation. In other words, despite that explicit and        tacit knowledge can both be rare and valuable, tacit knowledge is more difficult to imitate and to        transfer than explicit knowledge and is therefore considered more powerful in creating a        sustained competitive advantage. This line of reasoning is confirmed by Holste and Fields        (2010), because they state that the creation (innovation) of new knowledge requires the use and        generation of tacit knowledge, and by Grant (1996) stating the importance of tacit knowledge for        sustaining a firm's competitiveness.  

In order for an organization to gain from an employee’s individual knowledge, it needs to        be transferred to other co­workers. Without the transfer of knowledge to others, it stays within        the individual and, thus, cannot be seen as ‘collective mind’ (Walsh & Ungson, 1991). Glynn        (1996) adds that collective knowledge can be seen as the sum of the individual’s knowledge,        depending on the mechanisms that translate individual into collective knowledge. Therefore, in        order for knowledge to become a collective organizational good, it not only needs to be shared        among co­workers, it also has to be used (Smedlund, 2008). Collins (1993) refers to the        combination of collective­tacit knowledge as ‘embedded knowledge’.  

(30)

In addition, Leonard and Sensiper (1989: 112) clearly describe the importance of tacit        knowledge in group innovation. They claim that tacit knowledge is even essential to the        innovation process, because the process of innovation is about translating ideas into useful new        products, processes, and services (Bessant & Tidd, 2007). Moreover, the process of new idea        creation and development require tacit knowledge capabilities, such as problem solving, problem        finding, and prediction and anticipation (Leonard & Sensiper, 1989: 114). These capabilities        cannot be learned through explicit knowledge, but solely through (tacit) experiences.  

The literature suggest that the best firms are those who can simultaneously balance        explorative innovation and exploitative innovation in an ambidextrous way (i.e. He & Wong,        2004; Raisch & Birkinshaw, 2008). In order to be ambidextrous, firms are capable of        coordinating the tension between innovation exploration and innovation exploitation options        (March, 1991). Empirical studies show that balance between the two types of innovation are        positively related to sales growth rate, and thus, firm performance (He & Wong, 2004). 

To conclude, tacit knowledge is a requirement for the innovation process, and since        innovation ambidexterity is seen as one of the antecedents of firm performance (He & Wong,        2004), this research suggests to test the relationship, which has never been studied before,        between tacit knowledge transfer and innovative ambidexterity through the most important        hypothesis of this research: 

 

Hypothesis 1: Tacit knowledge transfer is positively related to innovative ambidexterity.   

3.3 Tacit Knowledge Transfer, Innovative Ambidexterity and Absorptive Capacity 

In addition to the relationship between tacit knowledge transfer and innovative ambidexterity,        this research suggests a mediating role for absorptive capacity. The literature describes that        absorptive capacity most likely has positive outcomes because it is often seen as an explanation        of competitive advantage, innovation, exploitation/exploration orientation, and firm performance        (Cohen & Levinthal, 1990; Stock et al., 2001; Lewin et al., 1999; Lane et al., 2001; Tsai, 2001),        but firms can also have too much absorptive capacity (Volberda et al., 2010). Several studies        suggest that those firms that focus too much on knowledge acquisition and assimilation       

(31)

(potential absorptive capacity) are able to continuously renew their knowledge base, but may        suffer from the costs of acquisition without gaining benefits of exploitation (Zahra & George,        2002; Lichtenthaler, 2009). In contrary, firms that focus on transformation and exploitation        (realized absorptive capacity) may achieve short­term benefits but are more likely to fall into a        competence trap (Ahuja & Lampert, 2001; Jansen et al., 2005; Andriopoulos & Lewis, 2009). An        ideal level of absorptive capacity allows firms to deal with the tensions in ambidexterity that        arise from pursuing exploration and exploitation simultaneously (Rothaermel & Alexandre,        2009).  

This ambidextrous challenge, however, is not present in Cohen and Levinthal’s (1991)        initial concept of absorptive capacity where the firm’s ability to deal with new information plays        a central role. They define absorptive capacity as a firm’s ability (1) to recognize the value of        new information, (2) to assimilate that information, and (3) to apply it to commercial ends. This        means that firms need to develop capabilities to successfully deal with all three aspects,        otherwise the absorptive capacity is not ideal.  

To sum up, in order for an organization to use tacit knowledge to its full potential, it        needs to be absorbed by the organization. The ability to actually absorb the tacit knowledge        depends on the firm's ability to recognize, assimilate and apply this new knowledge. In order to        attain a better understanding of the relationship between tacit knowledge transfer, absorptive        capacity, and innovative ambidexterity, the following hypothesis will be tested: 

 

Hypothesis 2: Absorptive capacity significantly influences the relationship between tacit                    knowledge transfer and innovative ambidexterity.  

 

3.4 Organizational Hierarchy Structure 

According to Teece (1996), organizations with strong hierarchical structures are expected to be        face more challenges when it comes to innovation, and thus the ability to innovate ambidextrous,        because of slow decision­making and weak incentives. In order to find out if this is also present        in the communication consultancy industry, the following hypothesis will be tested: 

(32)

Hypothesis 3: Organizational hierarchy structure has a moderated effect on the                      relationship between tacit knowledge transfer and innovative ambidexterity

​ . 

 

An agency’s current knowledge base cannot be separated from its current organizational        structure (Kogut & Zander, 1992), which means that the existing organizational form influences        how a firm process knowledge. From this perspective, the organizational form are expected to        influence the absorptive capacity of an organization. In order to find out if this can be confirmed        in the communication consultancy industry, the following hypothesis will be tested: 

 

Hypothesis 4: Organizational Hierarchy Structure has a moderated effect on the                      relationship between Tacit Knowledge Transfer and Absorptive Capacity

​ . 

 

3.5 Research Model 

To summarize, this research ought to find empirical evidence for the relation between tacit        knowledge transfer, innovative ambidexterity and absorptive capacity. This research expect        absorptive capacity to have a mediating role in the relationship between tacit knowledge transfer        and innovative ambidexterity. Also, organizational hierarchical structure is expected to have a        moderating role. 

(33)

  Figure 1: Research model 

 

(34)

Chapter 4 ­ Methodology 

In this chapter, the empirical setup of this research is described. The first section outlines the        design of this research. Thereafter, a brief description of the data collection and the sample is        provided. The third section provides an overview of the measurements, items and scales used to        test the variables. The online questionnaire administered for this research can be found in the        appendix.  

 

4.1 Research design 

This research follows the positivistic research philosophy, and is both exploratory and        explanatory in nature. Explanatory research because the goal of this study is to find empirical        evidence for the relationships between tacit knowledge transfer, innovative ambidexterity, and        absorptive capacity within the industry of Dutch communication consultancy agencies. The fact        that these constructs have not been studied in this particular combination and industry is        exploratory in nature (Creswell & Clark, 2007).  

In order to achieve the goal of finding empirical evidence between the three constructs, a        quantitative research approach is chosen (Cresswell, 2013: 4). The hypotheses discussed in the        previous chapter will be testing the existing theory deductively, using a correlation strategy        design to describe and measure the relationship between the three variables (Cresswell, 2013:        12). This is done in the form of a survey, because surveys are often used with the intent to        generalize from a sample to a population (Fowler, 2013). Due to time constraints, the researcher        was compelled to gather data in one point of time (cross­sectional time horizon), rather than        through a multiple measurements over time (longitudinal time horizon). The latter would have        been preferred, because it would add an extra dimension to this research by demonstrating the        development of communication consultancy agencies over time.  

 

4.2 Data collection and sample 

To test the aforementioned hypotheses, quantitative data is collected through a single collection        technique: an online questionnaire. This technique has its limitations due to possible       

Referenties

GERELATEERDE DOCUMENTEN

Research based on communication theory instead of general knowledge transfer theory, focusses more on the communication as a process implying social interactions and emphasizing

Second, I have investigated the indirect effects of team building on tacit knowledge retention through relationship quality sub-variables respect, tie strength and

Tabel 2 laat zien dat het lagekostenbedrijf gemiddeld ongeveer ƒ2.800 meer eigen middelen overhoudt uit de eigen bedrijfsvoering.. De besparingen zijn hoger, de

Per meetdag werden de drie proefvakken (stalen roosters met bakken, stalen roosters met mestkelder en de beton- roosters met kelder) 2 maal gemeten.. Tijdens de metingen werden

Lesers, soos in enige sosiale groep die geval is, ondersteun mekaar deur ander se menings te bevestig (konformiteit). Die instemming kan aansluit by spesifieke individue of by

Bij een triggerfinger operatie wordt de tunnel gekliefd zodat de pees weer probleemloos door de peesschede kan bewegen.. U heeft samen met de plastisch chirurg besloten om

 U wordt samen met uw kind door de verpleegkundige of medisch pedagoog naar de operatieafdeling gebracht.. Het precieze tijdstip van de behandeling is moeilijk aan te geven

• Combination of a-priori knowledge and on-line estimation of both speech and noise terms anticipated to enhance robustness.