Document Sample

              Umut EKMEKCI
      Globelics Academy – 02.06.2005
 Ph.D Candidate at Istanbul Technical
  University, Turkey / Department of
  Management Engineering,
 Ph.D started in February 2003,
 Ph.D Research: Comparison of the
  Knowledge Network structures of
  Finnish and Turkish National Systems of
     Content of Presentation…
   Research Question
   Why ?
   Systems – Networks in
     – Organization Studies / Modern Organization
     – Social Network Analysis
     – Social Construction of Science and Technology
     – Evolutionary Innovation Theory
   Knowledge Networks – Innovation Networks
       Research Question(s)…

   How to distinguish “Knowledge Networks” from
    “Innovation Networks”?
     – How to distinguish “networks” from
     – Is any distinction between these concepts
       (systems/networks, knowledge
       networks/innovation networks) really necessary
       / Why ?
    Why to distinguish “systems”
         from “networks”?
   Different uses in different disciplines
   Different taxonomies / blurred definitions - principles
    – Biology,
    – Chemistry,
    – Computer Sciences,
    – Engineering / Urban Planning,
    – Sociology,
    – Social Construction of Technology Organization
    – Evolutionary Theory of Innovation,
    Combination with Innovation
    and Knowledge concepts…
   Innovation Systems
   Knowledge Systems
   Technology Systems
   Production Systems
   Innovation Networks
   Business Networks
   Supplier Networks
   Knowledge Networks
   Knowledge Communities
   Innovation Clusters…
        Different terminologies
       in different literatures…
   Actors
   Agents
   Nodes
   Institutions
   Values
   Bridges
   Power
   Social Capital…
    Causes of inconsistency in
    different bodies of literature
 Difficulty of defining operational indicators
  for concepts like “knowledge” or
 Flexibility in the nature of each concept,
 Relatively limited number of
  interdisciplinary studies,
 Considering the variety in the taxonomy as
  a practical problem,
   Problems due to lack of
commitment about taxonomy…
 Placing any new study in relation with former
  researches / studies,
 Lack of bridge in interdisciplinary researches
  between different disciplines,
 What are the similarities / what are the differences
  between different terminologies / methodologies?
 What is shared / produced, through what type of
       Systems – Conceptual
 Organized or connected groups of objects,
 Complex unity,
 Large complex whole comprising
  interacting parts,
 Political, economic or social order,
 Set of correlated beliefs, ideas or statements
(Source: Oxford Dictionary)
     Networks – Conceptual
 Chain or system of interconnected
  immaterial things,
 Any netlike or complex systems or
  collection of interrelated things,
 A groups of people having certain
  connections (Source: Oxford Dictionary)
      Common principles…
 Complexity,
 Interconnectedness of components,

 Systems (Macro Level Orders)
 Systems (set of intangible assets; values,
  beliefs etc.)
 Networks (Certain connections between
  certain actors in certain boundaries)
    Modern organization theory
 “Open Systems Approach” – shifting focus
  from internal dynamics of firm to external
  interactions in the external environment,
 Contingency Theory
 Resource Dependency Theory
 Population Ecology Theory
 Transaction Cost Theory
          Contingency Theory
   No perfect solution or one absolute truth,
   Solutions should be defined according to the dynamic
    conditions of external environment,
   external environment should be the main determinant
    of the internal dynamics of firm
   Critiques:
    – Passive role against the external environment,
    – No consideration of collaborative activities
    – “Environmental determinism” (Astley and Van de Ven
      1983, Perrow 1986)
    Population Ecology Theory
 Organizational populations struggle with each
  other and with the conditions of external
 Adaptation to the environment is essential to
 Critiques:
    – Passive role against the external environment,
    – No consideration of collaborative activities
    – “Environmental determinism” (Astley and Van de Ven
      1983, Perrow 1986)
Resource Dependency Theory
 Reaching to crucial resources is essential to
 Organizations’ interactions and negotiations,
  (Pfeffer and Salanick, 1978)
   – Buffering strategies,
   – Bridging Strategies,
 Active role against the external environment:
  “enacted environments” (Karl Weick, 1969)
      Transaction Cost Theory
   Uncertainty of external market conditions;
    – Bounded rationality
    – Small numbers (of suppliers) (Williamson)
 Increasing cost in long-term
 Cost of transactions or cost of hierarchical
  control (vertical integration)?
 Embedded relationships – network forms
  (Mark Granovetter, 1985)
       Social Network Analysis
   Sociometry – sociograms: study of social
    networks (Jacob Morfeno 1953)
   Who are the nodes (actors) of specific networks?
   Who is connected with whom? (map of
   Through which channels / or which other
   Which nodes play what kind of roles within the
     Social Network Analysis II
   Centrality, betweenness centrality (Freeman 1979,
    Krackhardt 1992),
   Structural Holes (Burt 1992),
   Social Capital, Location of Power (Thorellu 1990)
   Multidimensional Scaling (Levine 1972)
   Blockmodelling (White, Boorman, Breiger 1976)
   Smallest Space Analysis (Laumann and Pappi
   Small World Networks
        Evolutionary Theory of
 “An Evolutionary Theory of Economic Change”,
  Richard Nelson & Sidney Winter, 1982
 “Chain-linked Model”, Kline & Rosenberg, 1986
  Feedback loops between;
    – Research,
    – Existing body of scientific and technological
    – Potential market,
    – Invention,
    – Various steps in the production stepses
        Evolutionary Theory of
   “Innovation System” (Lundvall 1985)
   “National Systems of Innovation” (Freeman 1987,
    Freeman & Perez 1988, Dosi et al., 1988))
   Oslo Manual (OECD, 1992)
   Technological systems (Carlsson & Jacobsson
   Sectoral Innovation Systems (Malerba)
   Regional Innovation Systems (Cooke &
    Schienstock 1996, Cohendet & Llerena 1997)
          National Systems of
             Innovation - I

   “… the network of institutions in the public
    and private sectors whose activities and
    interactions initiate, import, modify and
    diffuse new technologies” (Freeman, 1987,
    p: 1)
        National Systems of
          Innovation - II
 Distinction between narrow and broad
  definitions of NSI (Lundvall, 1992)
 Components of NSI: institutions (Nelson &
  Rosenberg, 1993), relationships (Lundvall
  2002), formal institutions and organizations
  (Niosi, 2002),
 Institutions: norms, routines, habits, rules,
  laws, standards etc. (Lundvall, 1992)
Social Construction of Science
   & Technology Tradition
 “Technology Systems”, “Large Technical
  Systems”, Thomas Huges (Technology
  historian), 1984
 “Social Interest Networks”, Wiebe Bijker,
 “Actor-Network Theory”, Bruno Latour,
  Michell Callon, 1989
       Systems or Networks?
 Systems:
   – Flexible borders / components
   – Macro level order
   – Set of common goals – coordinated activities at macro
 Networks:
   – sharper borders / definitions are available (social
     network analysis)
   – Varying levels of analysis (ego centric networks – open
     networks etc.)
 Systems: Framework for “sub-systems” or “sub-networks”
     Innovation Networks or
     Knowledge Networks?
 Knowledge and Innovation: Highly related
  but different concepts
 Knowledge Creation and Innovation:
  Overlapping and interlinked processes
 Requires different indicators or
  methodologies to identify
        Phases of Innovation I
 Innovation: commercialization of new knowledge
  embodied in processes or products
 Awareness of Problem – Idea Generation - Design
  – Planning – Project Management – Production -
  Testing – Marketing - Distribution
 Learning and knowledge creation in innovation
    – Flow of existing knowledge
    – Creation of new knowledge
       Phases of Innovation II
   Cyclical model
   Continuous interaction and linkages between
    different phases and actors of innovation,
   Each phase is knowledge-based, to a certain
    extent, and requires different type of
   However, new knowledge creation may not
    occur necessarily in all phases of innovation
                 Argument I
   The emphasis in “Knowledge Networks” is on the
    collaboration in knowledge creation processes,
    (relatively narrower focus of KNs),
   The focus of innovation network is broader,
    including all phases of innovation process,
   In “Innovation networks”, collaboration may
    occur in any phase of innovation,
   However, it does not assure that any knowledge is
    created collectively in all phases of innovation,
   It is possible to identify sub-knowledge networks
    under the framework one innovation network,
                 Argument II
 Division of responsibilities and fields of expertise
 Innovation networks may occur as a result of
  complementary competencies / resources /
 Therefore; coordination is more crucial than
  collaboration to innovate trough innovation
 However, knowledge creation and knowledge
  flow requires collaborative actions…
              Argument III
 Knowledge Networks: flexibility in
  knowledge creation, though embedded
  relationships in long-term
 Innovation Networks: formally established
  relationships, with specific responsibilities
  for each partner, to reach to a specific end-
                  Argument IV
   Methodological Differences
   Different indicators for
     – Knowledge flow (knowledge accumulation / learning...)
     – Knowledge Creation (knowledge accumulation in
       particular actors of all actors of network…)
     – Innovation (patents, products, processes…)
   Knowledge flow/creation indicators are difficult to
   Observation of routines or individual communication
    channels is essential, (Qualitative research techniques;
    surveys, interviews, observations etc.)
   Long-term analysis focusing on embedded relationships
                 Knowledge Networks            Innovation Networks
Main Concern    Learning / Knowledge          Product / Process
                Creation / Knowledge Flow     Innovations, Creation or
                                              integration of
                                              complementary skills for
Type of         Embedded / Informal /         Short/mid term – formally
Relationships   Flexible / Long-term          established partnerships /
                relationships                 projects
Collaborative   Flow of existing knowledge / Complementary
Action          collaborative knowledge      coordination or/and
                creations                    creation of inputs
Outcomes        Knowledge accumulation /      New products / processes,
                improved skills -             Improved products /
                competencies                  processes
Methods of      Qualitative methods focusing Qualitative + Quantitative
Analysis        on routines (observations,   Methods
                surveys, interviews etc.)
      Facts about practice…
 Various knowledge networks may occur within
  one single innovation network, in different phases,
 Innovation networks may be established as a result
  of long-term embedded knowledge network
 Knowledge networks and innovation networks
  may overlap for particular cases,
 It is difficult to identify in which phases what
  type of knowledge is produced
Thank You…

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