IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v50y2004i11p1491-1503.html
   My bibliography  Save this article

Managing Knowledge in the Dark: An Empirical Study of the Reliability of Capability Evaluations

Author

Listed:
  • Jerker Denrell

    () (Graduate School of Business, Stanford University, 518 Memorial Way, Stanford, California 94305-5015)

  • Niklas Arvidsson

    () (NormannPartners AB, Drottninggatan 33, SE-11151 Stockholm, Sweden)

  • Udo Zander

    () (Institute of International Business, Stockholm School of Economics, Box 6501, 113 83, Stockholm, Sweden)

Abstract

If knowledge is to be managed and transferred, it is essential that members of organizations know and agree on where capabilities reside. Few studies, however, have examined the difficulties of evaluating capabilities in large firms. This paper reports an in-depth empirical study of capabilities central to knowledge management efforts in large leading multinational companies. The results show that evaluation of these capabilities is a complex task. The median interrater correlation for capabilities designated as strategic by top management is only 0.28. Analysis of the determinants of reliability show that the difference in evaluations is largest for subsidiaries managers know less about, for younger subsidiaries, and for subsidiaries in less important markets. The results of our empirical study have important implications for creating, retaining, and transferring knowledge in organizations.

Suggested Citation

  • Jerker Denrell & Niklas Arvidsson & Udo Zander, 2004. "Managing Knowledge in the Dark: An Empirical Study of the Reliability of Capability Evaluations," Management Science, INFORMS, vol. 50(11), pages 1491-1503, November.
  • Handle: RePEc:inm:ormnsc:v:50:y:2004:i:11:p:1491-1503
    DOI: 10.1287/mnsc.1040.0239
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.1040.0239
    Download Restriction: no

    References listed on IDEAS

    as
    1. Bruce Kogut & Udo Zander, 1993. "Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(4), pages 625-645, December.
    2. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 411-432, September.
    3. Vernon, Raymond, 1979. "The Product Cycle Hypothesis in a New International Environment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 41(4), pages 255-267, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Guillou, Sarah & Lazaric, Nathalie & Longhi, Christian & Rochhia, Sylvie, 2009. "The French defence industry in the knowledge management era: A historical overview and evidence from empirical data," Research Policy, Elsevier, vol. 38(1), pages 170-180, February.
    2. Erwin Danneels, 2016. "Survey measures of first- and second-order competences," Strategic Management Journal, Wiley Blackwell, vol. 37(10), pages 2174-2188, October.
    3. Dellestrand, Henrik & Kappen, Philip, 2011. "Headquarters Allocation of Resources to Innovation Transfer Projects within the Multinational Enterprise," Journal of International Management, Elsevier, vol. 17(4), pages 263-277.
    4. Patrick Regnér & Udo Zander, 2011. "Knowledge and Strategy Creation in Multinational Companies," Management International Review, Springer, vol. 51(6), pages 821-850, December.
    5. Shinjinee Chattopadhyay & Janet Bercovitz, 2020. "When one door closes, another door opens … for some: Evidence from the post‐TRIPS Indian pharmaceutical industry," Strategic Management Journal, Wiley Blackwell, vol. 41(6), pages 988-1022, June.
    6. Michailova, Snejina & Mustaffa, Zaidah, 2012. "Subsidiary knowledge flows in multinational corporations: Research accomplishments, gaps, and opportunities," Journal of World Business, Elsevier, vol. 47(3), pages 383-396.
    7. Janaina Macke & Kelly Menezes Crespi, 2016. "“One Swallow Does Not Make a Summerâ€," SAGE Open, , vol. 6(2), pages 21582440166, April.
    8. Persson, Magnus, 2006. "The impact of operational structure, lateral integrative mechanisms and control mechanisms on intra-MNE knowledge transfer," International Business Review, Elsevier, vol. 15(5), pages 547-569, October.
    9. L. Felipe Monteiro & Niklas Arvidsson & Julian Birkinshaw, 2008. "Knowledge Flows Within Multinational Corporations: Explaining Subsidiary Isolation and Its Performance Implications," Organization Science, INFORMS, vol. 19(1), pages 90-107, February.
    10. Dasí, Àngels & Pedersen, Torben & Gooderham, Paul N. & Elter, Frank & Hildrum, Jarle, 2017. "The effect of organizational separation on individuals’ knowledge sharing in MNCs," Journal of World Business, Elsevier, vol. 52(3), pages 431-446.
    11. Claudio Vitari & Aurelio Ravarini & Bernard Fallery, 2006. "The Kms Recommending Experts In The Communities: Proposition Of A Theory On Their Success," Post-Print halshs-01924301, HAL.
    12. Jan-Erik Vahlne & Jan Johanson, 2017. "From internationalization to evolution: The Uppsala model at 40 years," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(9), pages 1087-1102, December.
    13. Jasjit Singh & Morten T. Hansen & Joel M. Podolny, 2010. "The World Is Not Small for Everyone: Inequity in Searching for Knowledge in Organizations," Management Science, INFORMS, vol. 56(9), pages 1415-1438, September.
    14. Vahlne, Jan-Erik & Ivarsson, Inge & Johanson, Jan, 2011. "The tortuous road to globalization for Volvo's heavy truck business: Extending the scope of the Uppsala model," International Business Review, Elsevier, vol. 20(1), pages 1-14, February.
    15. Haq, Hammad ul & Drogendijk, Rian & Blankenburg Holm, Desirée, 2017. "Attention in words, not in deeds: Effects of attention dissonance on headquarters-subsidiary communication in multinational corporations," Journal of World Business, Elsevier, vol. 52(1), pages 111-123.
    16. Mats Forsgren, 2018. "The development of international business: A narrative of theory and practice," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(6), pages 774-777, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:50:y:2004:i:11:p:1491-1503. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Matthew Walls). General contact details of provider: http://edirc.repec.org/data/inforea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.