Electronic Business: Concepts, Methodologies, Tools, and Applications (4-Volumes) P206 pps

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Electronic Business: Concepts, Methodologies, Tools, and Applications (4-Volumes) P206 pps

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1984 Managing Knowledge in SMEs weekly meetings with her employees at a local pub to impart her discoveries and insights from the week’s activities. At SMEs, employees are always in close contact with the owner/manager. $VDUHVXOWWKHÀRZRINQRZOHGJHJRHVXSDQG d o w n v i a h i e r a r c h i c a l r a n k s ; t h i s o c c u r s s m o o t h l y and normally via personalized meetings between individuals. Employees working in an SME are in close proximity to each other. The result of being in close quarters is employees are in conversation and communication with one another on a daily basis. Granted that much of the conversation has nothing to do with the business at-hand, and is more social in nature, it nonetheless helps build a friendly environment in which knowledge shar- ing becomes easier and more effective. As one PDQDJHURIDUHVWDXUDQWUHPDUNHG³,GRQRWPLQG if my employees engage in conversations during work hours…it is important that they like each other and of course like me…in this way they will know that when I criticize their work…I am doing it with good intentions…and not due to a hidden agenda.” Socialization is the dominant activity in SMEs and it subsumes the remaining three acts—ECI. Let us explain. Due to resource constraints and the lack of maturity, SMEs seldom have rich or- ganizational memories. In our sample of SMEs, organizational memories represented the exper- tise, experiences, and knowledge of the owner or managing partner of the SME, these being the individuals who decided to start-up the business and who possessed domain knowledge. The own- ers/managers conducted acts of combination on their knowledge, internally. They added to their pieces of knowledge by observing behavior in their businesses and the environment. Due to the private nature of the organizational memory i.e. it resided in the mind of the manager/owner, other organizational members could not use this knowledge for acts of combination or even apply it directly. Hence, they had to rely on getting knowl- e d g e f r o m a c t s of s o c i a l i z a t i o n . T h e o w n e r s w o u l d hold training sessions and impart their knowledge via an apprenticeship mode. Put another way, internalization of knowledge occurred by social- ization with the owner/manager. An outcome of not having dedicated organizational memories is the absence of efforts on the part of employees to externalize their knowledge into explicit artifacts. K n o w le d g e , o n c e i n t e r n a l i z e d b y e m p lo y e e s i s a p - plied directly to work, and is seldom documented in a secondary storage medium like a notebook or information systems. To summarize, in SMEs there is lack of ex- plicit knowledge repositories such as an Intranet tool for sharing knowledge or large databases. Instead, each manager/owner acts as the knowl- edge repository. Since the repository is private, acts of combination are also conducted privately. Knowledge becomes part of the organization’s fabric when it is socialized from the manager to the employees; seldom does knowledge move the other way i.e. from employee to manager. This is because employees are not too concerned with knowledge management details when compared to executing their operations on a daily basis. Knowledge, once socialized, is internalized when apprenticeship based training is conducted. We can thus argue for the presence of an S ECI model in SMEs in which the S dominates, rather than the standard SECI model found in larger organizations in which each activity has an equally important role in knowledge management. Finding 2: Common Knowledge 7KHVHFRQGSHFXOLDU¿QGLQJLVWKHLVVXHRI³FRP- mon knowledge”. Common knowledge, as we GH¿QHLWKHUHLVNQRZOHGJHWKDWLVNQRZQWRDOO PHPEHUVRIWKHRUJDQL]DWLRQ0XFKOLNH³FRP- PRQVHQVH´³FRPPRQNQRZOHGJH´KHOSVLQWKH conduct of work in organizations by providing a common frame of reference. Without some form of common knowledge, the essence of the WHUP³RUJDQL]DWLRQ´ZLOOEHORVW7RRUJDQL]HLV to join together or assemble for a common goal. In most large organizations, knowledge is ir- 1985 Managing Knowledge in SMEs regularly distributed across the various sectors (Tushman & Nadler, 1978). As an organization grows, areas of specialization emerge such as ¿QDQFH RU RSHUDWLRQV DQG NQRZOHGJH LQ WKHVH domains get concentrated around the areas of specialization. Knowledge available in the areas RIVSHFLDOL]DWLRQZLOOQRWEH³FRPPRQ´DFURVVWKH organization. The lack of common knowledge has EHHQNQRZQWRLPSHGHWKHÀRZRINQRZOHGJH resulting in failures to stimulate innovation and creativity in the organization (Simonin, 1999; Szulanski, 1997). In SMEs, we were pleasantly surprised to see the prominence of common knowledge in terms of both depth and breadth. Most SMEs we researched had deep-levels of common knowledge, that is, each employee had very similar foundation and grounding in organizational matters. For example, LQDFDIpLQ&KLFDJRDPDQDJHUUHPDUNHG³EDVLF training provided to my employees consists of equipping them to run the shop…if an employee KDVVXI¿FLHQWLQIRUPDWLRQDQGNQRZOHGJHRQKRZ to manage the café from - opening up the door, to running the register, making a cappuccino, serv- LQJDVDQGZLFKPRSSLQJWKHÀRRUDQGHQWHULQJ the receipts at close—the training is viewed as successful…else we will re-train.” Due to train- ing initiatives such as these, each employee is given a deep introduction into the way the SME conducts business. It is because of this that em- SOR\HHVFDQIUHTXHQWO\DQGRIWHQGR¿OOLQIRU one another. The deep level of knowledge along with the breadth of common knowledge also fa- cilitates ease of communication and sensemaking. Common knowledge forms a shared context for interpretation and communication. For example, if a restaurant institutes a new work practice that affects the waiters, chances are high they will be appreciate it. The reason being they have enough knowledge about the work of the cooks, busboys, cashiers, and bartenders, to comprehend whether the new process will streamline the entire res- taurant operations, resulting in them leaving for home early, and may be with increased tips. To TXRWHDUHVWDXUDQWRZQHU³,GRQRWKDYHWRNHHS explaining myself to the cooks, busboys, valet staff, and waiters…they know that they are all in this thing together…they see the big picture and work to enhance that…we do not have allegiances towards being waiters or valet staff, rather we all work for the restaurant…” $QRXWFRPHRIKDYLQJ³FRPPRQNQRZOHGJH´ is the speed of knowledge transfer. Ishin-Denshin, is a Japanese term, can be roughly translated to ³SUHVHQFHRIWDFLWXQGHUVWDQGLQJEHWZHHQFRP- PXQLFDWRUVWKDWVLJQL¿HVWKHVSHHGRINQRZOHGJH transfer that will occur if communicators share W KH VD PH FR Q W H[ W ´ 6S H F L ¿ F D O O \ E HIR U HR QH VS HD N V   what is going to be spoken and its associated con- text is known to the other. In restaurants, there are numerous hand jesters, eye movements, and even WKHVSHHGRISK\VLFDOPRYHPHQWWKDWVLJQL¿HVLQ- formation items such as clean this table, bring some water, two cups of coffee, or even the customer is livid as we buggered up the order. As we are not artist, we will not attempt to sketch them out here. Shorthand writing is found on food orders taken by waiters, who then pass these to the cooks and the bartenders for food and drink preparations. Even orders when given by the manager such as ³SOHDVHVHDWWKLVFXVWRPHULQ6HFWLRQDQGHQVXUH that he enjoys a pleasant experience” has a dif- IHUHQWPHDQLQJWKDQ³SOHDVHVHDWWKLVFXVWRPHULQ 6HFWLRQDQGSURYLGHKLPZLWKWKH¿QHVWRIIHU- LQJV´,QWKH¿UVWFDVHWKHPDQDJHULVDVNLQJIRU the customer to receive the standard treatment, while in the latter, the manager is ensuring that the waiter knows this customer is valuable, is a frequenter of the establishment, and do not bugger up his meal or experience at the restaurant. These expressions are well understood by the members of the organization, and help in executing tasks LQHIIHFWLYHDQGHI¿FLHQWPDQQHUV-XVWLPDJLQH what would happen if the restaurant owner could not use language in a subtle manner to convey his intentions?, what would transpire if the manager KDGWRVD\HYHU\WLPH²³VWDQGDUGWUHDWPHQW´YV ³SUHPLHUWUHDWPHQW´IRUDFXVWRPHUFKDQFHVDUH high the business would close down soon. 1986 Managing Knowledge in SMEs In summary, common knowledge possessed by members of the SMEs is deep and broad. This common knowledge helps in the organization of work by easing issues of knowledge transfer, sensemaking, and application. Finding 3: Knowledge Loss: A Problem? Or Is it? When an employee leaves the organization he/she takes knowledge out the door. In the present time RI ¿H UF HF R PS HW LW LR Q D Q G K L J K H PS O R\H H PR E LO LW \  dealing with issues of knowledge loss has become a management imperative. We asked SMEs how they faired with issues of knowledge loss. Surpris- i n g l y, m a n y r e m a r k e d t h a t t h e y n e v e r c o n s i d e r e d i t DUHDOSUREOHPRULVVXH$W¿UVWJODQFHZHWKRXJKW this can be attributed by the fact that these busi- nesses have only been in existence for a few years and hence did not have much knowledge to lose. Through deeper analysis, we discovered that the answer was not that simple. Some of the mature SMEs in our sample had deliberate mechanisms in place to prevent knowledge loss from becom- ing a problem. As we have discussed earlier, much of the core knowledge is held by the owner/managers of the organization. In addition, common knowledge is found in all employees. Obviously, if the owner was to leave, knowledge loss would occur, but the business would close down, at least in its present form. So, the real knowledge loss issues center around employees and managers. Due to the ease o f a v a i l a b i l i t y of c o m m o n k n o w l e d g e , t h e b u s i n e s s is not affected if one or more employees leave. As is found commonly in the hospitality industries, front-line employee turnover is high—employees come and go, and other employees take on their work in the interlude. In addition to the ease by which existing employees can be moved to cover positions impacted by knowledge loss, most SMEs have streamlined the process whereby a new hire can be indoctrinated with common knowledge. Their quick execution of the hire-and-train cycle is salient. In most café’s and restaurants we stud- ied, a new hire would be given a day’s worth of training, which would involve observations of how work was conducted, meetings with manag- ers, and standard discussions on do’s and don’ts, WKLVZDVVXI¿FLHQWWRJHWWKHHPSOR\HHVWDUWHG with work. New hires, almost always, have the basic background knowledge about work in the industry of the SME. Differences across SMEs in an industry are minimal resulting in ease of knowledge portability. One dry-cleaning/laundry EXVLQHVVRZQHUH[SODLQHG³,KLUHSHRSOHZKR have worked in the laundry business…they will not be experts…but they nonetheless know the operational aspects of the trade…there is not much difference between my store and Kim’s [another laundry business only two streets away]…if you have worked in one…you will be successful in working in others.” Basic knowledge in operations KHOSVQH ZK L UHV TX LFN O\OH D U QQHZGHW D L OV VSH FL ¿F to the organization and begin applying them on the job. The knowledge space of interest to SMEs LVOLPLWHGDQGZHOOGH¿QHGFRPSDUHGWRODUJHU organizations; hence new employees do not feel overwhelmed with the amount they must learn in order to work effectively. Instances of managers leaving an SME are rare. In our sample of 25 SMEs, with an average age of 2.8 years, we found only two instances of managers quitting. Managers seldom quit SMEs because they have built a tenure and rapport with the business and the owner. In cases where, the owner’s family members are not the managers, the mangers are usually long-standing friends of the owners. In most instances these friends probably, went to the same school or college, had similar previous places of employment in the past, lived in same locality, or had some other form of thick social bond. One organization in our sample, a PD QDJHPH QWFRQVX OWLQJ¿ U PZDVIRU PHGE\W ZR buddies who played Rugby at their college. Besides playing Rugby, they graduated from the same Business School. Upon graduation, the two went to work for different consulting houses and lost 1987 Managing Knowledge in SMEs their job due to downsizing in late 2000. During a reunion of the College Rugby Team, they engaged in a conversation leading to the creation of the SME. Due to close ties between senior members, VHOGRPGRZH¿QGLQVWDQFHVRINQRZOHGJHORVV due to individuals leaving the organization. In the two cases in our sample, where senior PHPEHUVGLGTXLWWKHEXVLQHVVWKH¿UVWRQHZDV due to a disagreement over salaries and company direction with the owner. The second case was due to health reasons which forced a 72 year-old FRRNWRUHWLUH,QWKH¿UVWFDVHWKHRZQHUKDQGOHG the knowledge loss by simply promoting the next most competent person to the title of manager. When we asked if there was serious issues that stemmed from departure of the manager, the RZQHUUHSOLHG³QR«QRWUHDOO\«-DVRQ«ZDVDEOH to take on the work left behind by Stuart…more- over Jason and Stuart are friends…so if things were missing or needed…Stuart is only a phone call away…Stuart does not hate us…he just found a position where he could push his program and ideas.” The ability to quickly promote someone WR¿OODYDFDWHGSRVLWLRQLVDQLPSRUWDQWVNLOOIRU SMEs. SMEs cannot afford to lose customers by having gaps or breaks in knowledge application and the conduct of work. All SMEs we spoke to have high redundancy of requisite knowledge, there is no knowledge nugget, skill, or expertise that is rare and housed in the mind of only one employee. In the second case, where the chef quit for health reasons, the second in-command of the kitchen was made head chef. The second-in-com- PD QGJRWK LV¿ UVWF RRN L QJMREI URPW KHKH D GFKHI  his boss! So over the past 24 years, dating back to several previous employment instances, of working with him, he had acquired knowledge of the chef’s way of cooking and mastered his style of managing the kitchen. Hence, knowledge loss was again not a serious issue here. One thing we must stress here is the fact that all SMEs, which we spoke with, promote from within. They almost never hire an outsider for senior positions; all hires are made at the front-lines. Over time, experi- ences, and efforts one is promoted to the higher ranks. This is one of the critical reasons why, knowledge loss is not an issue, as there are many in the organization that have a similar repertoire of experiences and knowledge to draw on. To summarize, SMEs by their nature and due to deliberate mechanisms are skilled at avoiding pitfalls of knowledge loss. The close social ties between members of the SME act as a deterrence against employees leaving the business. In cases where employees do leave the business, there are plenty of available knowledge resources that can EHPRELOL]HGWRTXLFNO\¿OOWKHYRLG Finding 4: Exploitation of External Sources of Knowledge SMEs have a knack for exploiting foreign sources of knowledge (Robinson, 1982). Since they are resource constrained, and cannot spend efforts to create knowledge, they look outside the organi- zation for knowledge. One café we studied was located about 300 meters from one Starbucks on its right and about 800 meters from another one on its left. At the face of it, opening up a café in between these two, would seem economically irrational. One would venture, that the SME will not have the resources, reach, or prestige to compete with the established Giants and would fail. To our surprise, the SME is thriving and has actually managed to lure customers away IURPWKHLQFXPEHQW¿UPV:HDVNHGWKHRZQHU why would she do something, what in our minds felt as irrational, opening up a business in the midst of two rival competitors, she remarked, ³6WDUEXFNVKDVGRQHWKHUHVHDUFK«PDUNHWLQJ research…and has found this locality to be one of interest to them…I am just using their research WRP\HQG«$OOWKDW6WDUEXFNVKDVFRQ¿UPHGYLD research is that people will spend money on cof- fee and pastries…they never said that they would drink Starbucks coffee…just coffee…so why not at my café.” The owner has been very successful in 1988 Managing Knowledge in SMEs exploiting research conducted by her larger com- petitors to her ends. For instance, she uncovered that one of the common complaints regarding the chain coffee-shops was that the environment was not homely or community geared. All Starbucks or Seattle’s Best coffee shops have the same look and feel, serve the same drinks, and even play the same music; this is a natural outcome of being in the franchise business. Exploiting this knowledge, she decided to build her café on the premise of making it a central meeting place for the neighborhood, this point has been the biggest reason why her café has faired very well. In addition, to using ready-made external knowledge, SMEs make it a priority to be well connected with their localities. In many cases these localities house their customers and sup- pliers. Being well-connected in the community, helps the SMEs use environmental knowledge in an effective manner towards business ends. For instance, some of the restaurants in our sample were located near universities. These establish- ments hired college students for their waiter and bartender positions. We thought that this was be- c a u s e o f t h e e c o n o m i c r e a s o n of g e t t i n g c o s t s a v i n g associated with hiring student workers. However, the manager informed us that we were wrong, and the cost savings were minimal. Managers hired students so that they could keep abreast of events on campus. Using the knowledge about events on campus, marketing programs would be geared for attracting students to dine at the restaurant. Common examples include discounted prices for drinks and appetizers during and after college sport games. Discounted prices were provided to student groups, such as the various clubs on campus, to host their meetings at the restaurant. In fact, employees were given bonuses based on how they contributed to the revenues of the restaurant by sharing pertinent knowledge. In our experience, and in the literature, larger organizations are less apt at exploiting external sources of knowledge (Prahalad & Ramaswamy, 2004). Individuals within the organization may rely heavily on outside sources of knowledge, but as a whole the organization does a poor job at leveraging such sources. As a classic example, consider the failure to various US intelligence agencies to heed the warning about terrorist plots from their counterparts in Egypt, the Philippines, Germany, and other foreign governments (De- souza & Hensgen, 2002). As we all know now, the external knowledge, if appreciated could have helped curtail the terrorist plots. We postulate that the reason for lack of care on exter nal knowledge is the obsession with generation of knowledge in-house and independent of the external world. In recent times, we have seen an interest in get- ting organizations to embrace external sources of knowledge. Prahalad and colleagues have called on organizations to cocreate value with their customers; this will require the organization to accept the fact that they do not have all the answers and to work in conjunction with its constituents (Prahalad & Ramaswamy, 2004). In some cases, it may also be in the organization’s best interest to collaborate with its competitors (Hamel, Doz, & Prahalad, 1989). Finding 5: People-Centered Knowledge—Technology in the Background SMEs knowingly or unknowingly, manage knowledge the right way—the humanistic way. Technology is never made part of the knowledge management equation. The use of technology in an SME is mostly limited to acts of automation (such as the use of cash registers) and at times for informative purposes (storing of employee contact information in databases). Technology is never used as a means to manage knowledge. Knowledge is created, shared, transferred, and applied via people based mechanisms. These include the use of face-to-face meetings, obser- vations, apprenticeship training methods, and so on. Knowledge generated is immediately put into practice, rather than being stored in some 1989 Managing Knowledge in SMEs obscure technology artifact, like a database. Put- ting knowledge into practice helps in immediate institutionalization of the insight and the improve- ment of work practices. Larger organizations spend inordinate amount of resources on building, managing, and deploying technology artifacts for knowledge management. These seldom help the organization get a knowl- edge management program running, because they do not get at the crux of the issue—knowledge sharing and managing is one of human endeavor. Humans generate the knowledge and apply it. We do agree that technology can help the pro- cess of knowledge management by streamlining knowledge generation, storage, distribution, and application. However, for technology to be suc- cessful there must be a solid foundation for it to lie on. This foundation is built by addressing the humanistic issues involved in fostering knowledge management. SMEs have the advantage, due to resource constraints, of not looking at technol- ogy for the solution to knowledge management problems. Larger organizations can learn from their efforts, in the fact that when issues surface LQYROYLQJ LQIRUPDWLRQ DQGNQRZOHGJHÀRZV RU their application, the interventions used to resolve the problem are human based. Examples include, helping bond employees via informal meetings, job rotations for employees to gain experiences in all facets of the business, and most important reminding employees of the core mission of the organization and rallying support behind the mis- sion. For our last quote, consider the statement PDGHE\DQ60(RZQHU³,GRQRWKDYHWKHFDSLWDO to think about technology…but if I did…I would ask two question…will it help me deliver better products to my customer and can I attract new customers using the technology…if the answer is no…I do not need it…no matter what fancy things the computer [technology] can do…I am in the people business…I rather use the money to take my employees for a picnic…spending money on my employees will ensure that they will be happy with me and the organization and they will do their best to help me serve my customers…hence make me money…technology will cost me more than I will reap.” Finding 6: Managing Ignorance In our research we found that SMEs are humble organizations, especially when compared to their larger counterparts. One critical aspect of being humble is their quick admittance of knowledge of areas they lack competency in. Put another way, SMEs were very apt at telling us knowledge spaces they had no competency in, and more im- portantly, where they would seek such knowledge from. One of the managers of a restaurant put it VXFFLQFWO\³ZKLOHLWLVLPSRUWDQWIRUXVWRUHDOL]H our strengths, we are well aware of our weaknesses and things we do not know…we constantly seek out ways to gain more information…but know that we will still be ignorant of much.” Being humble about what one is ignorant about, is a salient capability required to man- age knowledge adequately. For one, it helps the organization identify areas where it needs to get knowledge. Needed knowledge can come from new hires, scanning external sources, or even creating it in-house. Second, realizing that one is ignorant in a domain, forces a more cautious exploration of the unknown. This we argue is one of the reasons why SMEs, who are not in the technology business, are cautious in investing in technology artifacts. Technology management, information systems, and information technol- ogy, are areas where most SMEs, obviously, have the least amount of knowledge in. Hence, many are cautious with how they invest, hard earned, revenues in information technologies. Most SMEs do not dive in and go all out, that is commit to a new system in total or switch to new systems of operations. They like to work in piece-meal. They may start out with experimenting with a new technology, then working with one or more components of the overall system, and then may be expand the scope of the information technology. 1990 Managing Knowledge in SMEs This cautious trajectory helps the SME increase its knowledge of the technology in the domain, and also test out the viability of the system. SMEs are also not afraid of calling on experts t o h e l p t h e m g a i n k n o wl e d g e i n a r e a s o f i g n o r a n c e . However, understandably, they have resource constraints, but they are innovative in how they tap into the knowledge spaces. The owner of a café invited her customers who were subject matter experts for a half-day event. The event was hosted at the café and was designed for the owner to gain knowledge from these experts. She provided the experts with a free breakfast and coupons for future coffee purchases, in return each patron helped her understand ways she could improve her business. Suggestions ranged from marketing plans to even technology enhancements, such as making the café a wireless hotspot. The owner took these suggestions, and implemented a few of them. For one, the café was made a wire- less hotspot; this instantaneously became a key customer attraction mechanism, as many of the larger franchisee cafés charged for the wireless Internet access. Finding 7: Knowledge Management or Management by Knowledge 7KHODVW¿QGLQJGHDOVZLWKWKHWHUP³NQRZOHGJH management”. It is common to think of knowl- edge management as one of many undertakings in an organization. Most books treat knowledge management as a distinct discipline from other organizational facets (Davenport & Prusak, 1998). In our interactions with SMEs, we failed to see WKHFRQFHSWRI³NQRZOHGJHPDQDJHPHQW´DVRQH that was isolated. Rather, we assert that SMEs IRFXV RQ ³PDQDJHPHQW´E\NQRZOHGJHWKDW LV knowledge guides all management efforts. 7 K L VL V DU D W KH U L Q WH UH V W L QJ ¿ Q G L QJ D V 6 0 ( V D U H engage in managing knowledge in a more cohesive manner when compared to larger organizations. You do not have knowledge managers or chief NQRZOHGJHRI¿FHUVLQ60(VKRZHYHUNQRZOHGJH guides all management efforts, and we must say that most SMEs are successful at leveraging knowledge. The larger organizations can learn from SMEs, in how knowledge is integrated into the work practices and imbedded into the fabric of the organization. Managing knowledge is not an afterthought or a distinct activity in the SME. Engaging knowledge management into all facets of the organization makes such efforts successful and mandatory. CONCLUSION In this chapter we have elaborated on seven key peculiarities in knowledge management prac- tices found at SMEs. While we have painted a rosy picture of how SMEs manage knowledge, we must acknowledge that SMEs have their fair share of problems. In a future paper, we could explore the problems and suppressors to effective knowledge management at SMEs. Compared to research on larger organizations, investigations into the intricacies of managing knowledge at smaller enterprises remain largely unexplored. It would be wrong to assume that SMEs practice knowledge management in similar ways as larger organizations with the only difference being in magnitude or scale. We hope this article has opened up avenues for future research, by stressing s o m e o f t h e u n i q u e i s s u e s i n v o lv e d w i t h m a n a g i n g knowledge at SMEs. Future research is needed WRH[SDQGRQRXU¿QGLQJVKHUHYDOLGDWHWKHP across a larger sample, and even help improve the state-of-the art. REFERENCES APEC Committee on Trade and Investment. (2004, July). The APEC survey on small and me- dium enterprises. Medium and Small Business Administration (Coordinating Agency), Ministry of Economic Affairs, Chinese Taipei. 1991 Managing Knowledge in SMEs Australian Bureau of Statistics (ABS). (2000). Small Business in Australia 1999. Cat. No. 3121.0. Australian Bureau of Statistics (ABS). (2002). Small Business in Australia 2001. Cat. No. 3121.0. Awazu, Y., & Desouza, K. C. (2004). The knowl- edge chiefs: CKOs, CLOs, and CPOs. European Management Journal, 22(3), 339-344. Ballentine, J., Levy, M., & Powell, P. (1998). 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Stra- tegic Management Journal, 20, 595-623. Shelton, R. (2001). Helping a small business owner to share knowledge. Human Resource Develop- ment International, 4(4), 429-450. Szulanski, G. (1997). Exploring internal sticki- ness: impediments to the transfer of best practice within the Firm. Strategic Management Journal, 17(Summer Special Issue), 27-43. Tushman, L. M., & Nadler, A. D. (1978, July). Information processing as an integrating concept in organizational design. Academy of Management Review, 613-624. Yin, R. K. (1989). Case study research: Design and methods. Newbury Park, CA: Sage. This work was previously published in Global Electronic Business Research, Opportunities and Directions, edited by N. Al- Qirim, pp. 238-256, copyright 2006 by IGI Publishing (an imprint of IGI Global). 1993 Copyright © 2009, IGI Global, distributing in print or electronic forms without written permission of IGI Global is prohibited. Chapter 7.3 A Typology of Interorganizational Relationships: A Marriage, a Fling, or Something in Between Wonyoung Lee Marketing Lab, Korea Praveen Aggarwal University of Minnesota Dulut, USA Hyonkil Shin Hankuk University of Foreign Studies, Korea Taihoon Cha Hankuk University of Foreign Studies, Korea Seunghan Kim Samsung SDS, Korea ABSTRACT The decreasing cost of IT has encouraged or- ganizations to seek new ways of cooperating with members of the supply chain and other key strategic partners. This increased cooperation is giving rise to a new type of interorganizational system (IOS). Before the advent of the Internet, ,6 LQWHJUDWLRQ UHTXLUHG VLJQL¿FDQW LQYHVWPHQWV on the part of organizations participating in an IOS. Such heavy investments, in turn, neces- sitated close strategic cooperation in the non-IS domain, as well. Thus, IS integration went hand- in-hand with non-IS (relational) integration in the pre-Internet era. However, advances in Internet technology have commoditized IS integration to . larger sample, and even help improve the state-of-the art. REFERENCES APEC Committee on Trade and Investment. (2004, July). The APEC survey on small and me- dium enterprises. Medium and Small Business. Massey, C. (1999). Small and medium-sized enterprises: A New Zealand perspective. Auckland, New Zealand: Addison Wesley Longman New Zealand Ltd. Chetty, S. (1996). The case study method for UHVHDUFKLQVPDOODQGPHGLXPVL]HG¿UPVInter- national. HD N V   what is going to be spoken and its associated con- text is known to the other. In restaurants, there are numerous hand jesters, eye movements, and even WKHVSHHGRISKVLFDOPRYHPHQWWKDWVLJQL¿HVLQ- formation

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