Knowledge Codification and Management Control Systems Sample Clauses

Knowledge Codification and Management Control Systems. ‌ In organisations, knowledge can be stored in different ways. Some of the knowledge is codified in the product concepts, designs, or the brand equity. Other knowledge assets are incorporated in the individual skills and know-how of the various organisational members (Nonaka, Toyama, and Nagata 2000). Other important repositories of a firm’s knowledge are organisational routines and daily operations as well as documents, manuals, specifications, patents, or databases. In fact, a large amount of a firm's knowledge about how to perform tasks is stored in its operating routines (Nelson and Xxxxxx 1982; Xxxxx 1991). These knowledge assets are not tied to certain individuals. Consequently, the know-how can be retained if key people leave the firm (Kazanjian 1984; Kogut and Zander 1992). They generally survive significant employee turnover within firms. Routines capture the implications from experiences and make them available to organisations and their members in such a way that single individuals within the firm do not need to have the experiences for themselves. Since routines are transferred through education, socialisation, professionalisation, imitation, or job rotation, they are also a valuable means for the distribution of knowledge (Xxxxxx and March 1988). The importance of documents and routines for the codification of knowledge was also emphasised by various other scholars (e.g., Xxxxxx 1988; Xxxxx and Xxxxxx 1992; Xxxxxx and Kogut 1995; Xxxxx and Winter 2002; Xxxxxxxxxx 2003). Similar to written documents such as manuals or specifications, routines comprise solutions to certain problems (Xxxxxx and March 1988; Xxxxx 1991; March, Xxxxxxx, and Tamuz 1991; Xxxxx 1996b; Xxxxxxxx 2002; Lillrank 2003). However, unlike documents, routines are able to store tacit knowledge as well (Teece, Xxxxxx, and Xxxxx 1997; Knott 2003). In addition, they capture individual knowledge and knowledge that is collectively held (Xxxxxx 2004). Thus, routines can be termed as a firm's organisational memory (Dodgson 1993). To codify knowledge, primary processes and operating routines are usually accompanied by a special type of routine that adopts the role of a control device in a closed control loop. These routines are referred to as management control systems (MCS). MCS are “formal, information-based routines and procedures used by managers to maintain or alter patterns in organizational activities” (Xxxxxx 1994, p. 170). They are necessary for adaptive learning in organisatio...
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