Strategic Management Ch. 4

knowledge economy
an economy where wealth is created through the effective management of knowledge workers instead of by the efficient control of physical and financial assets
intellectual capital
the difference between the market value of the firm and the book value of the firm, including assets such as reputation, employee loyalty and commitment, customer relationships, company values, brand names, and the experience and skills of employees
human capital
the individual capabilities, knowledge, skills, and experience of a company’s employees and managers
social capital
the network of friendships and working relationships between talented people both inside and outside the organizaiton
explicit knowledge
knowledge that is codified, documented, easily reproduced, and widely distributed
tacit knowledge
knowledge that is in the minds of employees and is based on their experiences and backgrounds
360 degree evaluation and feedback systems
superiors, direct reports, colleagues, and even external and internal customers rate a person’s performance
social network analysis
analysis of the pattern of social interactions among individuals
closure
the degree to which all members of a social network have relationships with other group members
bridging relationships
relationships in a social network that connect otherwise disconnected people
structural holes
social gaps between groups in a social network where there are few relationships bridging the groups
unification lever
method for making people more willing to collaborate by crafting compelling common goals articulated a strong value of cross-company teamwork, and encouraging collaboration in order to send strong signals to lift people’s sights beyond their narrow interests towards a common goal
network lever
method for making people more willing to collaborate by building nimble interpersonal networks across the company
T-shaped management
people’s dual focus on the performance of their unit (vertical T) and across boundaries (horizontal T)
people lever
method for making people more willing to collaborate by getting the right people to work on the right projects
private information
information that is not available from public sources, and is usually communicated in the context of personal relationships
public information
information that is available from public sources such as the internet
groupthink
a tendency in an organization for individuals not to question shared beliefs
electronic teams
a team of individuals that completes tasks primarily through e-mail communication
intellectual property rights
intangible property owned by a firm in the forms of patents, copyrights, trademarks, or trade secrets
dynamic capabilities
a firm’s capacity to build and protect a competitive advantage, which rests on knowledge, assets, competencies, complementary assets, and technologies. Dynamic capabilities include ability to sense and seize new opportunities, generate new knowledge, and reconfigure existing assets and capabiltiies