01managing Information For Innovation Using Knowledge Integration

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International Journal of Information Management 62 (2022) 102438

Contents lists available at ScienceDirect

International Journal of Information Management


journal homepage: www.elsevier.com/locate/ijinfomgt

Research Article

Managing information for innovation using knowledge integration


capability: The role of boundary spanning objects
Chandan Acharya a, Divesh Ojha b, Rahul Gokhale c, Pankaj C. Patel d, *
a
Department of Management, School of Business, City University of New York - College of Staten Island, 2800 Victory Blvd, Staten Island, NY 10314, USA
b
Department of Marketing, Logistics, and Operations Management, Ryan College of Business, University of North Texas, 1155 Union Circle #305429, Denton, TX
76203-5017, USA
c
Gokhale Foods, B 601 Prakriti Apartments, Mittal Park, Raghunath Nagar Road, Thane 400601, Maharashtra, India
d
Department of Management and Operations, Bartley Hall Rm 2067, 800 Lancaster Avenue, Villanova, PA 19085, USA

A R T I C L E I N F O A B S T R A C T

Keywords: Knowledge Integration (KI) or the capability to collate and process distinctive stocks of organizational infor­
Knowledge integration capability mation is central to innovation. Although an essential capability, KI is also challenging to accomplish in practice
Knowledge boundary due to relational obstacles. The relational obstacles arise because of knowledge boundaries: (a) syntactic
Innovation
boundary where the challenge is to transfer the knowledge; (b) semantic boundary where the challenge is to
Boundary spanning objects
translate the knowledge; and (c) pragmatic boundary, where the challenge is to transform the knowledge to
realize relational rents. In this paper, we propose that these relational obstacles could be resolved through a
common lexicon, common meaning, and common interests, or common knowledge of knowledge actors that can
serve as potential drivers to realizing relational rents. Analysis of data collected from 139 small firms indicates
that common meaning and common interests positively influence KI. Further, KI positively influences organi­
zational innovation. Moreover, the results demonstrate that novelty plays a crucial role in affecting the strength
of relational resources’ relationships with KI capability. As novelty increases, the importance of common
meaning and common interests on KI capability increases. Our findings contribute to our understanding of the
role of relational obstacles and KI and empirically assess the efficacy of boundary-spanning objects in facilitating
KI capability and innovation.

1. Introduction view is pivotal to searching, developing, and sustaining knowledge


channels that can help improve the innovation potential of firms (Dyer &
A widely accepted thesis in the network and alliance literature on Singh, 1998).
innovation suggests that distinct bodies of knowledge may often reside The relational view stresses that collaboration among knowledge
in different parts of the organizational knowledge network (Grant, 1996; actors helps actors garner complementary resources embedded in the
Zander & Kogut, 1995). This integration of knowledge is the process of relationship and overcome resource constraints related to the cognitive
bundling knowledge from diverse sources to jointly solve complex and human capital of a single firm through KI, fostering innovativeness
problems facilitates organizational innovation (Carlile, 2004; Nicolini, (Carlile & Rebentisch, 2003; Dyer & Singh, 1998; Kogut, 2000; Kogut &
Mengis, & Swan, 2012). The need for collaborative problem solving is Zander, 1992). Collaboration enables innovation by recombining rele­
especially salient to small firms facing liabilities of smallness. Small vant resources to produce novel solutions (Nerkar & Roberts, 2004).
firms, lacking resources and facing instability along with disadvantages Indeed, researchers have found that cohesion among knowledge workers
in developing and sustaining relationships must still innovate. How has a positive impact on new product development (Chatterji & Fabrizio,
smaller firms with limited resources collate human capital and routines, 2014; Guler & Nerkar, 2012; Hargadon & Sutton, 1997; Nguyen, Nguyen,
processes, and structure to overcome KI challenges remains less studied Nguyen, Phan, & Matsui, 2018). In addition to collaboration, mecha­
(McDowell, Peake, Coder, & Harris, 2018). For small firms the relational nisms for knowledge exchange and effective governance facilitating

* Corresponding author.
E-mail addresses: chandan.acharya@csi.cuny.edu (C. Acharya), Divesh.Ojha@unt.edu (D. Ojha), ragokhale76@gmail.com (R. Gokhale), pankaj.patel@villanova.
edu (P.C. Patel).

https://doi.org/10.1016/j.ijinfomgt.2021.102438
Received 5 May 2021; Received in revised form 3 October 2021; Accepted 4 October 2021
Available online 14 October 2021
0268-4012/© 2021 Elsevier Ltd. All rights reserved.
C. Acharya et al. International Journal of Information Management 62 (2022) 102438

experimentation and learning are equally important for innovation. under different levels of novelty. The context of our study is small
The role of KI is vital as new knowledge emerges. In a survey-based business organizations having less than 100 employees. We collect
study of companies belonging to the manufacturing industry in Australia survey data from entrepreneurs and examine the data using hierarchical
where 77-percent of firms have less than 100 employees, a context linear regression and structural equation modeling.
somewhat similar to this study, Singh and Power (2014) finds that the This study aims to make several contributions. First, we developed
internal KI to be the primary factor driving the firms’ performance. In the scale of boundary spanning objects and novelty. Previously, re­
the above examples, the actors overcame the relational issues by searchers have theoretically argued the importance of boundary objects
developing knowledge-sharing routines to identify and benefit from the in case studies (Carlile, 2004; Yuanyue, Ye, & Pan, 2011) and field
complementary knowledge resources of partners (Dyer & Singh, 1998). studies (Levina & Vaast, 2005) this study will provide the necessary
For small firms, the complex nature of innovation involves unknown empirical foundation to that body of literature and should support future
parts attended by individual actors based upon their limited and local empirical studies relating to boundary spanning objects and novelty.
knowledge (Glover, Champion, Daniels, & Boocock, 2016). The limit to Successful innovation is possible when organizations take problems as
the knowledge possessed by a small firm is essentially a boundary that evolutionary and are willing to upgrade their knowledge base to address
hinders the network of a firm’s cross-functional employees’ ability to emerging issues continuously. The discovery of drugs, for example, takes
collaborate to solve a complex problem. This knowledge boundary can about 12–16 years, during which time the new understanding of the
be expanded to solve more complex problems through collaboration disease may occur. The disease might mutate, as in COVID-19’s Beta,
with other knowledge actors. Such collaboration drives the development Gamma, and Delta variants. Knowledge-sharing routines provide new
of aggregate knowledge capability where actors’ diverse knowledge understanding and effective governance mechanisms encourage exper­
bases help to overcome the resource, cognitive and human capital lim­ imentation and learning over time (Dougherty & Dunne, 2011; Floricel
itations of individuals (Kogut, 2000; Kogut & Zander, 1992). Three key & Dougherty, 2007).
relational issues in information transfer affecting KI are a common Second, since KI is fraught with challenges (Alavi & Tiwana, 2002;
lexicon, common meaning, and common interest (Carlile, 2002, 2004). Malhotra & Majchrzak, 2014; Weber & Khademian, 2008), giving rise to
Common lexicon, common meaning, and common interests are knowledge boundaries, our empirical investigation of the link between
called the relational “boundary spanning objects” as they help with the boundary spanning objects, KI capability provides insight into the role of
process of combining and processing knowledge from different knowl­ boundary objects – common lexicon, common meaning, and common
edge actors within a collaborative relationship to solve complex prob­ interests – in overcoming knowledge boundaries. By proposing a
lems (Carlile, 2002, 2004). According to Carlile (2002, 2004), framework on KI capability in the context of boundary spanning, we add
boundary-spanning objects that encourage the development of shared to the discussion on the role of knowledge management processes
vocabulary, shared context, and shared interests are powerful tools that (Al-Emran, Mezhuyev, Kamaludin, & Shaalan, 2018), and approaches
provide a platform for partners to collaborate both within and across the (Barão, de Vasconcelos, Rocha, & Pereira, 2017). In their systematic
knowledge boundaries (Nicolini et al., 2012). In this spirit, some studies review, Al-Emran et al. (2018) focused on 41 papers to infer that
have explored various antecedents of KI such as how social factors like “knowledge sharing is the most frequent KM process studied, followed
trust (Mehta, 2006) and organizational capabilities such as expertize by knowledge acquisition and knowledge application.”
(Thatcher, McKnight, Baker, Arsal, & Roberts, 2011) facilitate innova­ Third, the use of novelty as a moderating variable allows us to test
tion and KI among knowledge actors. A common theme weaving across the impact of boundary-spanning objects on KI capability at different
these studies suggests the development of boundary-spanning objects levels of novelty. The results of this study could also have an impact on
such as those corresponding to the framework proposed by Carlile is the managerial understanding of the importance of boundary-spanning
instrumental in achieving integration and address changing customer objects on KI and innovation. For example, the use of common lexicons
preferences through innovation. For instance, in their study on the an­ could create a standard format of communication between actors,
tecedents of KI, Gardner, Gino, & Staats (2012) propose how experien­ reducing inconsistencies in information exchange (Garcia, 2021).
tial team resources such as specialized knowledge affect integration Common meaning could help knowledge actors having distinct and
through the development of shared vocabularies. diverse knowledge domains to still collaborate by developing a shared
A key moderator in the relational view of competitive advantage is understanding of the process of completing a task, roles and re­
environmental uncertainty. Carlile (2004) suggests that the role of sponsibilities, rules, and expectations (Ascarza, Ross, & Hardie, 2021).
various boundary-spanning objects – common lexicon, common mean­ Lastly, common interests among members could develop the collective
ing, and common interest – on affecting KI capability may change with mindset that focuses on continuous learning, helping to transform or­
the level of environmental novelty. This novelty reflects the changes in ganizations and prosper in the face of a competitive environment
customers’ tastes and preferences (Patel, Struckell, Ojha, & Manikas, (Smith, 2021).
2020). Environmental novelty presents various challenges in the ability What follows next is a brief discussion of the KI capability and
of knowledge actors to collaborate. Novelty effects the adequacy of the boundary spanning objects literature. Next is the presentation of the
boundary-spanning objects in traversing knowledge boundaries as relational view and how it maps to our hypothesized research model
lexicon that may be outdated affecting shared understanding of the followed by a discussion of the various hypotheses. Next is the methods
innovation problems. Also, novel environment may lead to misalign­ section followed by data analysis, discussion of the result, conclusion,
ment of interests. Because adequately dealing with novelty is important limitations, and future research.
to addressing environmental threats and opportunities, we need to un­
derstand its impact on the relationship between boundary spanning 2. Theoretical framework
objects and KI capability but such research is missing, especially in the
context of small firms. We address this research gap in this paper. 2.1. Knowledge management and knowledge integration
Based on our discussion we seek to address three research questions
(1) Does the presence of boundary spanning objects (common lexicon, Knowledge management (KM), a concept referring to the creation,
common meaning, and common interests) support the development of sharing, and storage of knowledge (Abubakar, Elrehail, Alatailat, & Elçi,
KI capability? (2) Does the level of novelty influence the importance of 2019), focuses on individuals acquiring new knowledge, a team collab­
the relationship between boundary-spanning objects and KI capability? orating for innovation, and organizations learning for better performance
(3) Does the development of the KI capability support organizational (Zahra, Neubaum, & Hayton, 2020). Over the years, KM practices have
innovation? We test our research questions by examining the relation­ been shown to improve organizational performance (Abubakar et al.,
ship between boundary-spanning objects, KI capability, and innovation 2019), organizational innovation (Ode & Ayavoo, 2020), and open

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innovation (Santoro, Vrontis, Thrassou, & Dezi, 2018). However, KM collaborate (Homan et al., 2008). Studies interested in knowledge-based
practices are not without challenges. Individuals could lack absorptive antecedents of integration emphasize that attributes of knowledge
capacity and language comprehension to acquire new knowledge (Zahra directly affect the patterns and mechanisms of integration (D’Adderio,
et al., 2020). Group members could face roadblocks because of the 2001; Dibiaggio & Nasiriyar, 2009; Tiwana, Bharadwaj, & Sambamurthy,
dispersion of human capital across various functional areas (Zahra et al., 2003; Woiceshyn & Daellenbach, 2005). Collectively, research using
2020). Organizational members may lack collective willingness to learn knowledge-based antecedents of integration, therefore, suggests that for
and share knowledge. Yet, researchers examine the importance of diff efficient KI, mechanisms have to be in a place that allows organizations to
erent interventions such as “processes, practices, and artifacts present in channel the stocks of distinct knowledge and utilize them for solving
organizational contexts” to understand how organizations could make complex problems. Together, studies on the antecedents of KI point out
the best utilization of their human capital despite challenges of knowl­ that the distribution of knowledge within a group affects the ability to
edge management (Barley, Treem, & Kuhn, 2018, p. 280). efficiently integrate information, and that awareness of the knowledge
In our study, we examine how to overcome the challenge presented possessed by others is important to problem-solving. Appendix 1 provides
by knowledge boundaries. Despite the critical role boundary-spanning an overview of the KI literature.
objects play in integration and innovation, there is a paucity of studies
on the antecedents of KI (Edmondson & Nembhard, 2009). Throughout 2.3. Managing knowledge across boundaries
the paper, we have a focus on the difficulties presented by knowledge
boundaries and the importance of boundary-spanning objects. Knowl­ In a social capital theory, members are embedded in a group of re­
edge boundaries create a conflict of interests among actors (Nicolini lationships where the capital refers to the content of the relationship
et al., 2012), miscommunication between managers and technicians such as skill, money, support system, etc. (Bourdieu, 1986; Coleman,
(Ascarza et al., 2021), and inconsistencies in reporting procedures 1988; Häuberer, 2011). The relationship can be at either micro or macro
(Garcia, 2021). Boundary objects help to overcome such difficulties and levels such as the ones between individuals (Putnam, 2000), organiza­
develop a growth mindset (Smith, 2021), motivate actors to contribute tional members, community members, between subgroups (Burt, 1992;
jointly (Rhinow, Köppen, & Meinel, 2012), facilitate clear communica­ Putnam, 2000), or even individuals’ relationship with the organization
tion, and enable knowledge exchange (Rhinow et al., 2012). Knowledge (Coleman, 1988). For a relationship to sustain, the group members are
boundary results from the newness of knowledge. But, the dependencies expected to exchange either symbolic or material benefits with one
among actors and differences in their knowledge domain open the another (Bourdieu, 1986; p. 249). In essence, there is a sense of obli­
prospect for combining non-redundant knowledge (Carlile, 2002, 2004). gation among members to reciprocate the benefits others are providing.
How can small firms focus on the development of the channels and A repeated exchange of social capital among members reinforces the
currencies of knowledge exchange? It is surprising that prior research norm of reciprocity. As a result, members will start to develop trust that
while acknowledging the importance of boundary objects has generally others will fulfill their duties and obligations. Therefore, reciprocity and
refrained from empirically examining their role in achieving efficient KI trust become binding mechanisms in the social setting (Chang & Chung,
and innovation (Al-Emran et al., 2018; Esterhuizen, Schutte, & Du Toit, 2011). One of the exchanges in the relationships is of sharing of
2012), an important consideration for a small firm facing liabilities of knowledge and skills to achieve common goals (Putnam, 2000, p. 18;
newness and smallness. Limited evidence that boundary objects may be Nahapiet & Ghoshal, 1998).
useful for KI has been provided by Carlile (2004) and Franco (2013), Our work is similar to sharing and exchanging knowledge and skills
both of which are case studies, and thus it is not certain whether the to developing combinative capability (Nahapiet & Ghoshal, 1998). We
findings from these studies are generalizable. Moreover, Carlile (2004) explore the importance of boundary-spanning objects as means to
asserts that the case study only provides a rather limited and “in prin­ foster knowledge exchange and integration. Nahapiet and Ghoshal
ciple” examination of the framework and calls for additional work on the (1998) use shared language/codes and narrative in their cognitive
role of boundary-spanning objects in achieving integration. Thus, issues dimension of social capital. The common lexicon in Carlile (2002,
such as how the various antecedents of KI mentioned in prior work affect 2004) boundary-spanning objects framework is similar to Nahapiet
KI, as well as what if any role do boundary objects play in integration and Goshal’s shared language. The other two dimensions are common
and innovation have remained unaddressed and need additional sys­ meaning and common interests. These boundary objects help over­
tematic examination. We hope to contribute to the literature on KI by come barriers presented by knowledge boundary to integrate knowl­
developing scales for boundary objects and empirically assessing the edge residing in organizational members dispersed in various
role of boundary objects in achieving KI capability. sub-groups or functional areas. Our argument related to the impor­
Our study centers on these three elements by focusing on the syn­ tance of a common lexicon is similar to Nahapiet and Ghoshal’s
tactic and semantic boundaries of knowledge exchange. Barão et al. argument that shared vocabulary is a “valuable asset within firms” (p.
(2017) call for a greater focus on knowledge management in networks. 254).
We build on this study to explain the how of knowledge semantics and We acknowledge the importance of human capital and combinative
syntax built through shared language and symbols. We further scale the capability for creating new intellectual capital (Nahapiet and Ghoshal,
team-level performance associated with KI in Basaglia, Caporarello, 1998; p. 251). Therefore, we introduce KI capability in our model.
Magni, and Pennarola (2010) by focusing on firm-level outcomes and However, we choose Carlile (2002) boundary-spanning objects because
also on innovation outcomes (Esterhuizen et al., 2012). Our paper also these objects allow us to understand knowledge exchange when
extends the work by López-Nicolás and Meroño-Cerdán (2011), by knowledge boundaries are complex. Complexity in knowledge bound­
leveraging boundary spanning across organizational networks to derive aries is elicited by novelty present in knowledge. As a novelty in
strategic knowledge management value. knowledge actors increases, the complexity of knowledge boundaries
also increases, making it harder for actors to share and access knowledge
2.2. Prior work on knowledge integration with each other. As discussed in the article, when novelty is minimal, the
common lexicon facilitates knowledge transfer as a boundary object. On
Complex problems are multi-faceted and require diverse knowledge the other extreme, when novelty is maximum, actors are required to
domains to study, understand, and develop effective solutions to address transform their knowledge. For knowledge transformation to occur,
them. KI often takes place in the context of the practical and political actors should develop common interests. A social capital theory does not
realities of the network and can be inhibited by several relational traps. allow us to view the complexities of the knowledge boundaries. Carlile
Limited shared knowledge and understanding arise because of the dif­ (2004) proposes that knowledge actors face three progressively complex
ferences in individuals’ functional specialization, hindering their efforts to boundaries — syntactic, semantic, and pragmatic. The extent of novelty

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determines the complexity of each boundary. To overcome the chal­ Consistent with Borgatti and Cross (2003) and Dyer and Singh (1998),
lenges presented by the knowledge boundaries, Carlile argues that the a common lexicon reflects relation-specific assets, Common meaning
knowledge actors use common knowledge to share and access knowl­ represents complementary resources, Common interests reflect effective
edge. The common knowledge, however, at the different knowledge governance conditions, and KI capability reflects the knowledge sharing
boundaries differ. At the syntactic boundary, the common lexicon fa­ routines. Common lexicon, common meaning, and common interests are
cilitates transferring knowledge. Common lexicon, as a boundary object, the boundary-spanning objects that facilitate KI capability, which in turn
is most useful when knowledge exchange is routine and less novel and drives relational rent – innovation. Our view suggests that a common
when there is a great deal of shared context ( López-Nicolás & lexicon serves as a means to provide knowledge about each other’s in­
Meroño-Cerdán, 2011). In semantic boundary, common meaning helps formation. Common meaning provides the means to understand the
in translating knowledge. It highlights the importance of common lan­ value of each other’s information. Finally, common interest serves as a
guage but suggests that when the shared context is weak, and novelty is means to reduce the cost of gaining access to each other’s information on
higher, interpretation and meaning can vary across group members, time. We theorize the mapping for (i) relation-specific human assets and
making KI inefficient. Therefore, the semantic approach helps in the common lexicon; (ii) complementary resources and common meaning;
translation of inaccurate interpretations to create shared understanding. and (iii) effective governance and common interests.
Lastly, in pragmatic boundary, which is the most complex boundary, Related to relation-specific human assets and common lexicon, Dyer
the development of common interests effectively transforms actors’ and Singh (1998) posit that the relation-specific skill develops through
knowledge. The pragmatic approach is useful when the prior knowledge the repeated interactions between partners, allowing them to exchange
is irrelevant to solving a current issue, and the actors are required to quality information with a low degree of communication error. Over
update their knowledge. There might be resistance among actors to time, the relational actors can co-specialize as they accumulate more
learn new knowledge and give up irrelevant knowledge because doing specialized information, language, and know-how (Dyer & Singh, 1998).
so will put their current knowledge at stake. The pragmatic approach, Relation-specific human assets are in the form of information and
via common interests, is intended to develop a collective willingness know-how that relational partners develop through their repeated in­
among actors to spend time, effort, and resources toward a continuous teractions. Similarly, common lexicons are in the form of imprints,
learning process. specifications, rules, and regulations, enable knowledge actors to pro­
cess and transfer information (Carlile, 2004). The lexicons are in codi­
fiable form and the repeated use of these lexicons makes knowledge
2.4. Theoretical perspective and hypotheses actors more effective at processing and transferring information. So
common lexicon represents the human asset specificity that enables
2.4.1. Relational-view of a firm, boundary spanning objects, KI capability, effective management of knowledge routines encompassed in KI capa­
and relational rent (innovation) bility as they provide a means to understand what knowledge is con­
Fig. 1 provides the research framework of this study. It illustrates how tained within the intra-firm knowledge actors.
the relational view of the firm applies to our research model. The four Related to complementary resources and common meaning, com­
specific constructs, within the domain of the relational view of the firm, mon meaning among knowledge actors helps them develop shared
that are captured in our research model are (1) relation-specific assets; understanding, which, in turn, facilitates actors to recognize the com­
(2) complementary resources; (3) effective governance; and (4) knowl­ plementary knowledge existing in their shared network. Complemen­
edge sharing routines (Dyer & Singh, 1998). While a common lexicon tary resources reflect multiple and distinct sources of knowledge that are
reflects relation-specific assets, Common meaning represents comple­ key to improving knowledge routines (Dyer & Singh, 1998). An orga­
mentary resources, Common interests reflect effective governance. nization can leverage its complementary resources by using one
conditions, and KI capability reflects the knowledge sharing routines. resource in conjunction with another resource. The development of
The underlying argument is that boundary-spanning objects (common shared understanding reduces the differences in interpretation related to
lexicon, common meaning, and common interests), and KI capability are a new or different knowledge base (Cronin & Weingart, 2007) and
the determinants of relational rent – innovation (Borgatti & Cross, 2003).

Fig. 1. Association between relational-view of a firm and boundary spanning objects, KI capability and relational rent.

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allows the effective combination of complementary knowledge for the intellectually paralyzed and unable to both comprehend and contribute
improvement of knowledge routines. Common meaning thus serves as a (Parker, Zenkov, & Dennis, 2019). Second, establishing a common
means to make knowledge actors value the skills, expertize, and lexicon helps in enhancing partner-specific combinative capability in
knowledge possessed by their fellow employees. the relational framework which enhances the rate at which knowledge
Related to effective governance and common interests, effective is shared and integrated within the group (Nahapiet & Ghoshal, 1998).
governance in Dyer and Singh (1998) framework relates to common This investment in knowledge specific to the group can enhance the
interests among knowledge actors. The effectiveness of the governance efficiency and effectiveness of group members when conducting a task.
structure is determined by two factors. First, the cost of transactions It allows individuals to exchange information with each other quickly
among relational actors. Second, the incentive provided to relational and with fewer communication errors (Dyer, 1996; Nahapiet & Gho­
actors to sustain their ongoing relationships. Relational actors minimize shal, 1998). Moreover, such investments in knowledge can help in
their transaction cost to increase their returns from the transaction. The translating tacit capabilities into written comprehensible codes which
knowledge actors reduce their transaction costs by developing common can be taught to others to increase the speed at which ideas can be
interests that serve as self-enforcing safeguards. In the presence of exchanged in a group (Zander & Kogut, 1995).
competing interests among relational actors, the group members’ will­ Boundary objects such as prototypes can improve a designer and
ingness to use the negotiation as a tool to develop commonality in their client interaction and improve the overall team experience (Rhinow
“aspirations and expectations” helps to develop a mutual agreement, et al., 2012). For example, prototypes, one form of the common lexicon,
facilitating sustenance of the future partnership (Franco, 2013; p. 15). manifest vague ideas into a concrete shape during the design process.
Common interests relate to the informal safeguards used to maintain Prototypes help in collective learning, discovering, redesigning, and
effective governance. Just like informal safeguards, which are socially exchanging ideas. Prototypes also enable designers to demonstrate to
complex and idiosyncratic to a particular relationship, common interests clients the design ideas and get their feedback on designs right from the
among parties develop through the negotiation of interests where actors outset and during the design process. Accordingly, we hypothesize:
involved in negotiation are willing to make trade-offs (Brown & Duguid,
Hypothesis 1a. : Common lexicon is positively associated with KI.
2001; Carlile, 2002, 2004). The resulting consensus is developed
through the iterative process of negotiation and is idiosyncratic to the
2.4.3. Common meaning and KI capability
particular exchange relationship. The common interest thus addresses
Common meaning which broadly refers to the shared interpretation
the challenges related to processes and political consequences of task
or shared understanding of the mission, objectives, constraints, oper­
completion ( Carlile, 2004). Due to common interest knowledge workers
ating cultures such as philosophies and management styles, and areas of
are willing to unlearn old knowledge. So common interests allow
disagreements among members of the group is (Mathieu, Heffner,
workers to use their complementary knowledge to improve their
Goodwin, Salas, & Cannon-Bowers, 2000) necessary to achieve efficient
knowledge-sharing routines needed to solve complex problems through
integration especially as the problems and situations under consider­
joint contribution (Dyer & Singh, 1998). Common interest, thereby, acts
ation grow increasingly complex (Carlile, 2004). According to Brin­
as an effective governance mechanism by enabling access to information
kerhoff (2002) who proposes a framework for assessing compatibility
while lowering the cost to access the information.
between groups as well as Dyer and Singh (1998) the degree of success
Relational rents, though seldom discussed, the end goal of boundary-
to generate relational rents from complementary resources depends on
spanning is the expectation of rents, strategic or tactical outcomes that
the degree of compatibility in organizational systems processes and
benefit the cooperating entities. Rent-seeking is a relational context is
cultures (p.667). Several reasons underlie why common meaning can
rooted in Dyer and Singh’s (1988) proposition of superior performance
enhance integration through inducing both learnings as well as incen­
generated within a network (Borgatti & Cross, 2003). Relational rents
tive effects.
provide the traction for cooperating cross-functional teams jointly
First, having a shared interpretation of the problem context can decrease cognitive
developing KI capability (Basaglia et al., 2010). Lacking clear property
overload (Arias, Eden, Fischer, Gorman, & Scharff, 2000). Bounded rationality often puts
rights on the co-developed knowledge, the relational rents are at the core
limits on both acquisition as well as utilization of knowledge, it is much more efficient for
of the motivation to collaborate and co-develop the knowledge-sharing
group members to have a clear understanding of the problem context (Simon, 2000).
routines.
Excessive information required to solve a particular problem having multiple elements
outside of the area of expertize not only imposes a cognitive load, but also is detrimental to
2.4.2. Common lexicon and KI capability
learning (Sweller, Van Merrienboer, & Paas, 1998), as an acquisition of additional knowl­
Common lexicon refers to prints, specifications, rules and regula­
edge by an individual may create cognitive conflict and result in a state of confusion (Keltner
tions, and dictionaries that enable knowledge actors to process and
& Shiota, 2003). Second, having a shared interpretation can often foster knowledge ex­
transfer information (Carlile, 2004). It emphasizes the storage and
change (Yang, Fang, Fang, & Chou, 2014) within the group which enhances learning. These
retrieval of information for refinement and future use through repeated
knowledge sharing activities are particularly critical because they allow group members to
interactions of relational actors. The relational view suggests a common
compare and contrast their understanding of the situation with other relevant stakeholders,
lexicon may be useful in the communication of specialized knowledge.
empower group members to reflect on their peculiar interpretation of the problem, and
For example, in the healthcare setting, Salehi, Abedi, Balakrishnan, and
engage in “perspective-taking” (Krauss & Fussell, 1990), elaborate on their ideas and peculiar
Gholamrezanezhad (2020) proposed that the uniformity in the use of
solutions perhaps through the use of common lexicon and through continued discussions
lexicon used for interpretation and reporting of CT imaging of COVID-
and process of getting as well as giving feedback arrive at interpretations that are shared and
19 patients may improve the communication among healthcare
owned collectively as a group.
workers, which, in turn, could improve the diagnosis and management
In the previous example of the use of prototypes for collaboration and
of COVID-19 patients. Similarly, the use of a common lexicon in the form
joint learning, the feedback received from the client helps to decrease
of workflow steps has also been shown to improve the shared under­
uncertainties regarding what areas to improved (Rhinow et al., 2012). As
standing and the operational efficiency in the radiology department
a result, a design team can confidently move with a shared mental model
(Meenan et al., 2017).
regarding the design process (Doll, 2008; Dow, Heddleston, & Klemmer,
First, a common lexicon reduces information overload. Information
2009). Therefore, the interactions between designers and clients through
overload act as a noise and distraction for knowledge actors increases
prototypes go beyond the mere exchange of ideas. Instead, it enhances
the rate of communication errors (Edmunds & Morris, 2000), and may
the team motivation, facilitating each team member to develop a shared
introduce unnecessary ambiguity which can result in a lack of focus and
understanding of expected results and the roles and responsibilities of
discourage learning. Without a common terminology and understand­
each member. Based on the discussion, we propose:
ing of the jargon used in a particular area, group members can be

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Hypothesis 1b. : Common meaning is positively associated with KI. The presence of novelty may also make it difficult for actors to exploit
their new and complementary knowledge instantaneously because some
2.4.4. Common interests, and KI capability form of new knowledge is tacit. Knowledge actors can exploit their tacit
While boundary-spanning objects of common lexicon and common knowledge through an iterative process of mutual dialog, developing
meaning primarily act to overcome bounded rationality and learning shared understanding (common meaning) of their new and hidden tacit
deficiencies within the group, the establishment of common interest knowledge (Nonaka, 1994). For these reasons, we expect that when faced
primarily pertains to providing group members with the intrinsic with novel situations, employees’ common lexicon becomes ineffective
motivation and desire or incentive to address and jointly solve complex for KI capability. As a result, the importance of a common lexicon on KI
problems. Beyond straightforwardly providing the incentive to involve capability diminishes.
in accomplishing group objectives, common interests also affect learning
Hypothesis 2a. : The strength of association between common lexicon on
within the group. In the absence of common interests, group members
KI capability decreases with higher novelty.
may have more incentive to protect their private investments and for­
ward solutions that are personally beneficial as opposed to the benefit of As novelty increases, actors operate in a semantic knowledge
the entire group (Carlile, 2004). The presence of a dominance rela­ boundary where the development of common meaning is required for KI
tionship also causes members to formulate a solution before considering (Carlile, 2004). The importance of different boundary objects at a
all possible alternatives, limiting members’ ability to jointly compre­ different level of novelty is made clearer by Nonaka (1994) distinction of
hend and analyze problems (Baer, Dirks, & Nickerson, 2013), which information into syntactic and semantic perspectives. According to
adversely affects their ability to solve complex problems. Problems go Nonaka, the syntactic perspective of information simply means the
unaddressed because the knowledge that may be necessary to solve is­ volume of information. For example, in the current study, the use of
sues is not shared within the group or the particular way and form in printed materials, standard specifications, designs, and tools are
which the problem is shaped or solutions are proposed can cause a lack boundary objects which relate to a syntactic aspect of information.
of trust, a breakdown of team bonding and identity, and divergence of Syntactic aspects of information emphasize the volume, rather than
perspectives. In the case study, Nicolini et al. (2012) found that diver­ content, of these objects used for communication. On the other hand,
gence in interests between academicians and practitioners working to semantic aspects of information emphasize the meaning of information
create a bioreactor, a system capable of producing synthetic tissues (Shannon & Weaver, 1949). As novelty increases, individuals create new
for clinical application, hindered KI. Creating a bioreactor required knowledge to address novel situations. The newly developed knowledge
collaboration between a cross-disciplinary group of scientists and aca­ which is tacit gets accepted for wider use when knowledge actors
demicians from different departments and research centers. By way of interact with each other, a process referred to as “socialization” (Non­
example, one of the contradictions between two parties that arose in this aka, 1994; p. 19). Socialization is a self-organization activity that
cross-disciplinary work was divergent interests – while practitioners continuously creates the common meaning of new knowledge. When
emphasized the practical application of the components, academicians organizational members interact and work together, they develop
wanted to publish their work. Such divergence in interest could dampen shared experiences, which also allow them to develop common knowl­
the motivation of both parties to contribute to the completion of the edge bases (Nonaka, 1994). Therefore, during the presence of novelty,
project jointly. Based on the discussion, we propose: the development of common meaning through socialization enables
members to integrate each other’s tacit knowledge. Based on the dis­
Hypothesis 1c. : Common interests are positively associated with KI.
cussion, we hypothesize that:
2.4.5. The contingent role of a novelty at knowledge boundaries Hypothesis 2b. : The strength of association between common meaning
As mentioned in the Carlile (2004) article, we choose to use the term and KI capability increases with higher novelty.
novelty and not the other variables that define environmental circum­
Giving up the knowledge that is at stake is most pertinent when
stances. Novelty emphasizes that the actors understand that there is new
novelty is at the highest level – in a pragmatic knowledge boundary
knowledge to share. On the other hand, uncertainty highlights the un­
(Carlile, 2004). As a result of the development of common interests as
known where knowledge actors are unsure of what to share. However,
self-enforcing safeguards, employees do not have to develop new
the unknown factors could be knowable by examining trends and con­
agreements and self-monitoring mechanisms. The development of
ducting the correct analysis (Courtney, Kirkland, & Viguerie, 1997; p.
common interests also protects members against opportunism just like
69). For example, before Corona Virus Disease -19 (COVID-19), only
trust and cooperation between relational parties protect them from
about 25% of people were working from home. COVID-19 forced most
opportunism (Hill, 1990). In this situation, rather than developing
employees to work from home but whether or not they will be as pro­
explicit rules and regulations for employees to follow, the emphasis is on
ductive was uncertain. Over time, we have come to know that remote
developing shared values and beliefs, and rewarding and reinforcing
working is effective in many respects. The McKinsey report demonstrated
appropriate values and beliefs (Perrone, Zaheer, & McEvily, 2003). On
that 80% of people surveyed enjoy working from home and about half of
the other hand, when the situation is of lower novelty, the level of
them say they are more productive (Boland, De Smet, Palter, & Sanghvi,
complexity and uncertainty of knowledge is low. Therefore, actors can
2020). Similarly, Pew Research shows that most people have the right
use their existing knowledge to address that situation. Under stable and
technologies, are more motivated, have an adequate workspace, fewer
less complex transactional conditions, the cost of developing and
interruptions when working from home (Parker, Horowitz, & Minkin,
maintaining a social agreement, in the form of common interests, far
2020). In this process of understanding the nature of telework, what new
outweighs the benefits (Dyer & Singh, 1998; Ouchi, 1979, 1980).
we know is that people feel that online video conferencing tools are a
Therefore, in fewer novel situations a bureaucratic form of governance
good substitute for in-person contact and that they have more flexibility
proves to be a much more efficient option for achieving coordination for
in work hours to complete their tasks (Parker et al., 2020).
KI. Based on the discussion, the next hypothesis follows.
Novelty increases the complexity of problems. Complex problems are
relatively opaque because underlying reasons for the problems are not Hypothesis 2c. : The strength of association between common interests
readily apparent. Moreover, because novelty also refers to new envi­ and KI capability increases with higher novelty.
ronmental situations, knowledge workers have to develop new knowl­
edge when faced with a novel situation (Carlile, 2002). The existing 2.4.6. KI capability and Innovation
lexicons (common lexicon) such as standardized rules, common designs, Both learnings, as well as incentive effects, may explain why KI cap
and specifications may not have the capacity to address newer situations. ability, which represents a productive collaboration among employees,

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fosters innovation. First, collaboration can increase the chances of asso­ Last, competing hypotheses regarding the impact of a firm’s size
ciations between ideas that create innovations (Faems, Van Looy, & warrant more exploration. Our study uses smaller organizations as an
Debackere, 2005; González-Benito, Muñoz-Gallego, & García-Zamora, organizational context. The rigidity of size argument presents that larger
2016). Increased associations may help in identifying gaps and problems firms are less agile and adaptive than smaller firms, hindering their
in a particular idea as well as provide a platform for serendipitous in­ ability to innovate (Hannan & Freeman, 1984; Kelly & Amburgey,
teractions that offer solutions to move ideas forward. Second, innovation 1991). On the other hand, the fluidity of size hypothesis contends that
is often the result of an intensive two-way interaction process where initial because larger organizations have more resources and structure in place,
ideas are fleshed out with those having potential moved ahead for dis­ they can develop routine mechanisms required to take advantage of
cussion and others rejected to save valuable resources. Collaborative effort business opportunities than smaller firms (Haveman, 1993).
where others adopt and buy-in ideas and provide moral support increases Respondents were contacted for a face-to-face interview and they
the legitimacy and perceived value of knowledge exchange as well as re­ were requested to fill out the survey questionnaire at the time of the
inforces its utility can result in overcoming relational traps and the interview. The survey was administered to 164 firms. Eleven responses
chances of innovation (Starbuck, 2014; Subramaniam & Youndt, 2005). with missing values were deleted. Respondents were pre-screened to
These arguments are in line with Subramaniam and Youndt (2005) find­ determine whether they had enough knowledge and involvement in the
ings which suggest that interaction, partnership, information exchange strategic decision-making process of their firm. Based on the screening
among knowledge workers positively influenced innovation. Thus: question, one of the respondents was not involved in the strategic
decision-making process of the firm. Therefore, this response was
Hypothesis 3. KI capability is positively associated with organizational
deleted. Moreover, we only used the data from respondents who worked
innovations.
in companies of less than 100 employees, indicating that the re­
spondents worked in small firms. Other researchers have also used
3. Methodology
1–100 employees as a benchmark for small firms (e.g., Heshmati, 2001;
De Jong & Vermeulen, 2006). The final sample size was 139. The de­
Boundary spanning objects and novelty are newly developed mea­
mographics of respondents and firms of the final sample size are pre­
sures, whereas KI capability (Gardner et al., 2012) and Innovation (Li &
sented in Table 1. Most of the respondents were from the Automotive,
Atuahene-Gima, 2002) are used from the existing literature. The first
Health care/ Medical Devices, and Food/Beverage sectors. A total of 73
step of the scale development process involved specifying the theoretical
respondents indicated that they belonged to the “other” category. These
domain and developing operational definitions of constructs used in this
respondents belonged to the “other” under industry category work in
study. In the front-end portion of the scale development, the reliability
service (n = 10), real estate (n = 9), beauty and cosmetology (n = 6),
and validity of tentative measurements were developed by obtaining
construction (n = 4), financial (n = 4), health and fitness (n = 4), retail
feedback on scales from a panel of informed judges (Menor & Roth,
(n = 4), fashion (n = 3), and legal (n = 1) sectors.
2007). The items were refined to improve clarity. Double-barreled
Our data were collected in two waves. We tested the response bias by
questions were presented as two separate questions. In addition to
examining the difference between early respondents and late re­
conducting the pre-test, we also conducted the pilot study (n = 135),
spondents (Armstrong & Overton, 1977). The mean comparison t-test
using the panel data from Amazon Mechanical Turk (MTurk). The re­
revealed that there was no significant difference between the two groups
sults from the pilot study further provided evidence of discriminant
based on the independent variables – common lexicon, common
validity, convergent validity, and composite reliability for the con­
meaning, and common interest – indicating that non-response bias is not
structs. The front end and back end process of scale development, items
an issue for this study.
reliability and construct validity, and sampling methods for the pilot
study are presented in supplemental materials in Appendix 2.

Table 1
3.1. Sample and data collection Demographics of respondents and firm.
Job title Owner (n = 126) CEO (n = 1)
To test the hypotheses, we collected data from mostly owners of General manager (n = 4)
businesses located in the North Texas region of the USA with the number of Senior Managing Director (n = 1) Project Managers
employees less than 100. The reasons for selecting small organizations as (n = 2)
Branch Managers (n = 2) Staff (n = 3)
opposed to larger organizations warrents a brief discussion. Included in the Average years of firm 10.04 years
formal structure are standardization, documentation, and departmental­ experience with current
ization (Child, 1973). In large organizations, individuals within particular Average overall experience 16.68 years
departments develop distinct knowledge domains. On the contrary, small Industry type Automotive (n = 12); Aviation/Aerospace (n = 1)
Educational Services (n = 4); Entertainment
organizations have a low degree of formalization and specialization.
(n = 5);
Therefore, these organizations are less complex and have less structural Health care/ Medical Devices (n = 8); Food/
differentiation (Bamberger, 1983; Tolbert & Hall, 2015). Implicit in the KI Beverages (n = 21); Transportation (n = 5)
capability literature is the presence of specialized knowledge that needs to Metal fabrication (n = 2); Technology (n = 4)
be combined. But, in smaller organizations, members could wear different Pharmaceuticals/ Chemicals (n = 1); Others
(n = 73)
hats under different circumstances, resulting in blurred boundaries and
Manufacturing versus service Average revenue generated from sales of products
roles. Therefore, an intentional effort to develop boundary-spanning ob­ = 24.41
jects could be lacking in smaller organizations. Average revenue generated from sales of service
Alternatively, from a resource-based view perspective, the resource = 81.33
Average firm’s age 11.85 years
constraint on smaller firms forces them to forge more collaborative
Research expenditure and On an average, 5.79% of sales revenue is
effort than the larger organizations in pursuit of innovation (Nieto & development (R&D) contributed towards firm’s R&D activities.
Santamaría, 2010; Zahra & George, 2002). Compared to larger organi­ Firms size in terms of number Less than 50 employees (n = 134)
zations, smaller organizational members are more motivated and of employees Between 50 and 99 employees (n = 5)
committed to innovation. The argument that a person wearing different
hats because of resource constraints makes the same organizational
members more cooperative, an essential feature required for knowledge
integration (Sahut & Peris-Ortiz, 2014).

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3.2. Measures from organizational actors to address that situation. Novelty was
measured using three items on a five-point scale. Novelty is also a new
3.2.1. Innovation scale. Carlile (2004) presents that in a new product development context
Innovation refers to the rate at which a firm develops new products “the most obvious source of novelty is new customer needs that generate
or services. Innovation is a unidimensional construct with reflective new requirement of various actors in their specialized domains.”
indicators (Li & Atuahene-Gima, 2002). To measure innovation, re­ Therefore, to capture the novelty, the emphasis on our items are (1) the
spondents were asked about their firm’s level of innovation relative to changes in customers’ tastes and preferences, which is measured using
their firm’s major competitors over the past three years. On the 7-points one item and (2) the new knowledge that actors generate to address new
Likert scale, the respondents indicated the level of their agreement/di­ customers’ need, which is measured using two items. The composite
sagreement regarding their firm’s emphasis on new product develop­ reliability and AVE for novelty were 0.65 and 0.41 respectively. The
ment, the introduction of varieties of new products in a market, and mean novelty score was 3.56. For relative importance analysis, we
commitment to developing and marketing new products. The composite categorized novelty into three groups. The composite novelty score that
reliability of innovation was 0.90 and the Average Variance Extracted was less than or equals to 2.00 was categorized as a low level of novelty
(AVE) was 0.65. We acknowledge that the self-reported measure has its (n = 10); composite novelty score that was between 2.00 and 4.00 was
limitations, however, in line with a variety of meta-analyses in the categorized as a medium level of novelty (n = 75); the composite score
innovation literature the self-reported measure of innovation is used for novelty that was more than or equals to 4.00 was categorized as a
(Hammond, Neff, Farr, Schwall, & Zhao, 2011; Ng & Feldman, 2013). high level of novelty (n = 54).
Appendix 4 provides survey scales and items for the main study. The AVE values of all constructs, but novelty – a moderating vari­
able, were above 0.50 indicating convergent validity (Fornell & Larcker,
3.2.2. Common lexicon, common meaning, and common interest 1981). The square root of the AVE for each construct was greater than its
The three boundary-spanning objects are common lexicon, common correlation with the other factors in the model (Fornell & Larcker, 1981;
meaning, and common interests (Carlile, 2004). This is a new scale. All see Table 2 for descriptive statistics, reliability, and validity of the
the items measuring boundary spanning objects ranged from 1 (strongly constructs), indicating discriminant validity. Moreover, we also evalu­
disagree) to 5 (strongly agree) on a 5-points Likert scale. Common ated the heterotrait-to-monotrait (HTMT) ratio to check the presence of
lexicon refers to the common means of communication that employees discriminant validity. The stricter threshold for HTMT value should be
use such as repositories, standardized forms and methods, objects or less than 0.85 (Benitez, Henseler, Castillo, & Schuberth, 2020). The
models, and maps of boundaries to share and access knowledge at a results indicate that the HTMT values are well below 0.85, ranging be­
syntactic boundary. Common Lexicon was measured using four items tween 0.197 and 0.718. Moreover, the upper confidence value is well
that required respondents to provide their level of agreement/disa­ below 1, indicating that HTMT values are significantly different from 1.
greement regarding the use of designs, standardized specifications, and The chi-square difference between the constrained measurement model
tools such as sketches/prints to share and access their knowledge. The and unconstrained measurement model (freely estimated model; Δχ2
composite reliability for the common lexicon was 0.80 and AVE was [Δdf] = 681.02 [15], p ≤ .001) provided evidence for discriminant
0.50. validity.
Common meaning refers to the development of common under­ Next, the confirmatory factor analysis (CFA) was conducted, using
standing among employees that provide them adequate means of the measurement model where all the latent variables used in the study
sharing and assessing knowledge at a semantic boundary. We measured were freely correlated. The results demonstrated that all the items had
Common Meaning using six items. Respondents were asked to provide statistically significant loadings on their respective factor (Table 3). The
the level of their agreement/disagreement with the common under­ table presents the confirmatory factor loading of all the constructs. Also,
standing of expected time, rules, roles and responsibilities, outcomes, it is evident from the result that the value of all but one item loading was
and processes related to completing a task. The composite reliability for above 0.60, indicating convergent validity. The factor loading for one of
common meaning was 0.89 and AVE was 0.57. the items of novelty is 0.35.
Common interests refer to the willingness of employees to give up
irrelevant knowledge and learn new knowledge that provides them 3.3. Factorial validity
adequate means for sharing and accessing knowledge at a pragmatic
boundary. Common Interests was measured using six items. The re­ We also tested the factor structure for the boundary spanning objects
spondents were asked to provide their level of agreement/disagreement and KI capability. The results demonstrate that, for boundary spanning
regarding their willingness to learn new knowledge, invest additional objects, RMSEA of the first-order factor model, which was the hypoth­
time and resources to learn new knowledge, forgo their self-interests to esized factor structure, was better than the second-order factor model
develop consensus, and use only the relevant knowledge to solve a (Table 4(a)). Similarly, for KI capability, the fit indices (RMSEA and
particular problem. The composite reliability of common interests was SRMR) indicate that the second- order factor model is the best fit model
0.89 and AVE was 0.56. (Table 4(b)) supporting the hypothesized factor structure.

3.2.3. KI capability 3.4. Control variables


KI capability refers to a reliable pattern of employees communication
that generates joint contributions to the understanding and solving of a Three control variables were used in the study–R&D expenditure,
complex problem. KI capability was conceptualized as a second-order firm age, and industry type. R&D expenditure is measured by taking the
construct, consisting of three interrelated sub-dimensions, which are percentage of a firm’s annual sales contributed to research and devel­
reliable communication, joint contributions, and solving the complex opment. R&D expenditure results in organizational growth and en­
problem (Gardner et al., 2012). We used the scale developed by Gardner hances a firm’s performance (Shefer & Frenkel, 2005). Firm age may
et al. (2012) to measure KI capability. The scale was ten items scale, also determine a firm’s ability to innovate (Sørensen & Stuart, 2000). As
measuring different types of communication on a seven-point scale. The a firm gains more experience through learning by doing, the marginal
composite reliability of KI capability was 0.80 and AVE was 0.54. cost of production decreases (Balasubramanian & Lee, 2008). Firm age is
measured using one item, which asked respondents regarding the
3.2.4. Novelty number of years, a business has been in operation. Lastly, we include the
Novelty refers to a situation in the external environment such as industry type as a control variable because industry type also determines
changing consumer taste and preferences that require a new knowledge the rate of innovation. Companies belonging to the high-tech industry

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Table 2
Descriptive statistics and correlations.
Variables Ma SDb AVEc CRd 1 2 3 4 5 6

1. Common Lexicon 4.13 .76 0.50 0.80 0.71


2. Common Meaning 4.44 .64 0.57 0.89 .41** 0.76
3. Common Interests 4.21 .70 0.56 0.89 .44** .50** 0.75
4. KI capability 6.06 .80 0.54 0.78 .38** .60** .60** 0.74
5. Innovation 4.98 1.28 0.65 0.90 .21* .18* .29** .22* 0.81
6. Novelty 3.56 .92 0.41 0.65 .09 .19* .11 .08 .32** 0.64
*
Correlation is significant at the 0.05 level (2-tailed).
**
Correlation is significant at the 0.01 level (2-tailed).
a
Mean.
b
Standard deviation.
c
Average variance explained.
d
Composite reliability.

different, we can conclude that common method bias does not affect the
Table 3
study. The marker variable used in the study should be completely un­
Factor loading and standardized regression weights.
related to the other variables. In the current study, the respondents were
Variables Items Factor Construct Structure of the asked to rate the statement of the marker variable on a 7-point Likert
loading type constructs
scale. The item used for the marker variable is, “I am happy about the
Common CL1 .64** Reflective First order person I have become.”
Lexicon
We also took ex-ante remedies to prevent the presence of CMB in our
(CL)
CL2 .77** study. First, we separated the measurement of constructs by placing the
CL3 .61** measurement of predictors and criterion variables far apart in ques­
CL4 .81** tionnaires. Second, we have also used different types of scales for pre­
Common CM1 .78** Reflective First order dictors and criterion variables (Podsakoff, MacKenzie, Lee, & Podsakoff,
Meaning
2003). For measuring independent variables, which are common
(CM)
CM2 .79** lexicon, common meaning, common interests, we have used the 5-point
CM3 .68** Likert scale. For measuring moderator and dependent variables, which
CM4 .74** are KI capability and innovation, we have used a 7-point scale. More­
CM5 .79**
over, we have also promised respondents that their answers will be kept
CM6 .76**
Common CI2 .66** Reflective First order
anonymous, assure respondents that the answers to the questions are not
Interests socially desirable, that is there is no right or wrong answer to the
(CI) questions. Lastly, as suggested by Tourangeau, Rips, and Rasinski
CI3 .75** (2000), we have defined the constructs under study, avoided using
CI4 .80**
vague concepts, kept the questions simple, specific, and concise, elimi­
CI5 .69**
CI6 .78** nated double-barreled questions, and avoided the use of complicated
CI7 .82** language.
KI capability Reliable .68** Reflective Second order
Communication construct with
4. Results
Joint .70** three reflective
Contributions dimensions
Solving Complex .82** We use structural equation modeling (SEM), using AMOS 23, to
Problems evaluate the research model and examine direct relationship hypothe­
**
Innovation Innovation2 .77 Reflective First order ses. The direct relationship hypotheses predicted the relationship be­
Innovation3 .75**
tween (1) boundary spanning objects (common lexicon, common
Innovation4 .87**
Innovation5 .82** meaning, and common interests) and KI capability, and (2) KI capability
Innovation6 .82** and innovation. The multi-group hypotheses were tested using the
Novelty Novelty1 .35** Reflective First order software IBM SPSS 22. The relationship between boundary spanning
Novelty3 .65** objects and KI capability at different levels of novelty (Hypotheses 2a,
Novelty4 .83**
2b, and 2c) were tested using (1) multi-group analysis using hierarchical
Note. linear regression, and (2) the relative weight of each boundary spanning
*Correlation is significant at the 0.05 level (2-tailed). object determining KI capability at the different levels of novelty.
**
Correlation is significant at the 0.01 level (2-tailed). Because of the limited sample size, the use of SEM was not possible to
test the relationship at the low (n = 10), medium (n = 75), and high
face frequent technological changes, resulting in a relatively shorter level (n = 54) of novelty. Therefore, hierarchical linear regression using
product life cycle and frequent innovations (Saeed, Yousafzai, Paladino, multi-group analysis was used to test the relationship at the medium and
& De Luca, 2015). high level of novelty.
Before we provide the results of our hypothesized research model, we
conduct a robustness check to assess the linearity of relationships and
3.5. Common method bias
multicollinearity of constructs. We conducted the curve estimation of all
the relationships in our model and the results demonstrated that all the
To control for common methods bias (CMB), we have taken several
relationships were sufficiently linear to be tested using covariance-based
steps. First, we used the marker variable technique suggested by Lindell
SEM. To test if the relationship had a multicollinearity issue we calcu­
and Whitney (2001). This technique compares the difference between fit
lated variance inflated factor (VIF) and the condition index. As VIF
indices of hypothesized research models with a marker variable and the
values for all the relationship was below 10 (highest was 1.46), and the
one without a marker variable. If such a difference is not statistically

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Table 4a
Comparison of higher order model and first order model for boundary spanning objects.
Model CFIa RMSEAb SRMRc χ2d DFe Δχ2 ΔDF p-value χ2/DF
Second Order Model 0.071 0.067 170.62 1.69
0.94 101
First Order Model 0.069 0.067 170.62 0 1 0.000 1.67
0.94 102

a
Comparative fit index.
b
Root Mean Square Error of Approximation.
c
Standardized Root Mean Square Residual.
d
Chi-square.
e
Degree of Freedom.

Table 4b
Comparison of Higher order model and first order model for KI capability.
Model CFI RMSEA SRMR χ2 DF Δ χ2 ΔDF p-value χ2/DF
Second Order Model 0.97 0.062 0.042 49.194 32 1.54
First Order Model 0.97 0.067 0.057 49.769 33 0.58 1 .000 1.51

condition index for all the relationship was below 20 (highest was design, tools, specifications are essential for KI. But, the other boundary
19.84), multicollinearity is less of a concern (Hair, Anderson, Tatham, & objects, such as the development of a common understanding of roles,
Black, 1998). rules, expected results, and outcomes, are critical for KI. Moreover, the
Following two-step approach suggested by Anderson and Gerbing collective willingness to upgrade one’s knowledge and forgo obsolete
(1988), we identified the fit indices of measurement model, and the knowledge also facilitates reliable communication, joint contribution,
structured model. The fit indices demonstrate that both the measure­ and solving a complex problem, essential communication techniques for
ment model (χ2 [df] = 496.9492[328], p = .000; CFI = 0.92; RMSEA = organizational innovation. In addition, the bootstrapping technique was
0.06; SRMR = 0.07) and the proposed structured model (χ2 [df] = used to test the indirect effect of (1) Common Lexicon → KI capability →
358.22[244], p = .000; CFI = 0.94; RMSEA = 0.06; SRMR = 0.07) were Innovation, (2) Common Meaning → KI capability → Innovation, and 3)
quite good, providing support for nomological structure of the research Common Interests → KI capability → Innovation. The indirect path of
model (Kline, 2004). The presence of common methods bias was also Common Lexicon → KI capability → Innovation (β = 0.02, SE = 0.03,
evaluated in the current study. The fit indices of the hypothesized p = .548) was not statistically significant. On the other hand, the indi­
structural model with the marker variable (χ2 [df] = 403.02 [265], rect path of Common Meaning → KI capability → Innovation (β = 0.13,
p = .000; CFI = 0.93; RMSEA = 0.06; SRMR = 0.08) were not signifi­ SE = 0.05, p = .006) and Common Interests → KI capability → Innova­
cantly different from the fit indices of the hypothesized model without tion (β = 0.14, SE = 0.05, p = .004) were statistically significant. The
the marker variable (Δχ2 [Δdf] =44.87[21], p = .00; ΔCFI=0.01; significant indirect effect indicates that the boundary-spanning objects
ΔRMSEA=0.00; ΔSRMR=0.01). Therefore, we conclude that the com­ first enable KI, which will then foster organizational innovation.
mon method bias was not a major concern in this study.
The fit indices of the model with the controls – industry type, 4.1. Test of multi-group hypotheses
research and development expenditure, and firm age – χ2 [df] = 425.41
[304], p = .000; CFI = 0.93; RMSEA = 0.05; SRMR = 0.07, was not The test of multi-group hypotheses was conducted using two
significantly different from the model without the controls (Δχ2 [Δdf] methods: (1) hierarchical linear regression, and (2) the relative weight
=67.19[60], p = .00; ΔCFI = 0.01; ΔRMSEA = 0.00; ΔSRMR = 0.000). of each boundary spanning object determining KI capability at the
The results demonstrated that R&D expenditure (standardized regres­ different levels of novelty. The relationship between common lexicon
sion coefficient β = 0.29, SE = 0.08, p = .000) were significantly and KI capability was not statistically significant at medium (β = 0.09,
correlated with innovation, whereas path coefficients of the other two SE = 0.11, p = .396; n = 75) or high level (β = 0.05, SE = 0.10,
control variables, which are industry type (β = - 0.08, SE = 0.08, p = .610; n = 54) of novelty. Therefore, Hypothesis 2a could not be
p = .182) and firm age (β = - 0.11, SE = 0.09, p = .318) were statisti­ statistically evaluated. The importance of common meaning on KI
cally insignificant. capability at the high level of novelty (β = 0.52, SE = 0.17, p = .001)
We performed the power calculation for the needed sample size for was greater than the strength of the relationship at the medium level of
this study using the procedure provided by Kim (2005). Based on the df novelty (β = 0.46, SE = 0.15, p = .000), providing support for Hy­
= 304 for the structural model, α = 0.05, and power = 0.90 the required pothesis 2b. Moreover, the importance of common interests on KI
sample size for the test of close fit based comes out to be 106.50 or 107. capability on the high level of novelty was (β = 0.34, SE = 0.12,
Our sample size of 139 is larger than the recommended sample size. p = .006), which was greater than that on the medium level of novelty
Hypothesis 1a stated that there was a positive relationship between (β = 0.20, SE = 0.13, p = .094). Therefore, Hypothesis 2c was also
common lexicon and KI capability, was not supported (β = 0.06, SE = supported.
0.10, p = .543; Fig. 2). Hypothesis 1b stated that there is a positive Additional analysis was conducted to test the relationship at medium
relationship between common meaning and KI capability, was sup­ and high levels of novelty. The relative importance of the individual
ported (β = 0.42, SE = 0.09, p = .000). Similarly, Hypothesis 1c, which boundary spanning objects determining KI capability at the medium and
stated the positive relationship between common interests and KI high level of novelty was examined (see Fig. 3). The relative importance
capability was supported (β = 0.45, SE = 0.09, p = .000). Hypothesis 3 of boundary-spanning objects at a low level of novelty could not be
predicted that KI capability positively influences innovation. Consistent identified because of the small sample size. The results indicated that the
to our hypothesis, we found support for our hypothesis (β = 0.31, SE = relative importance of the common lexicon in determining KI capability
0.09, p = .000). In this study, we cannot ascertain that the standard was low at a medium level of novelty (w = 13.1%), which further

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C. Acharya et al. International Journal of Information Management 62 (2022) 102438

Fig. 2. Direct and indirect effects model.

decreased (w = 10.9%) when novelty was at high. The relative impor­


Table 5
tance of common meaning at a medium level of novelty was 60.1%,
Multiple group analysis.
which decreased to 56.0% when novelty was at a high level. Finally, the
relative importance of common interests increased seven percentage Path Medium High novelty Δβ (High - Trend
novelty medium)
points from 26.8% at a medium level of novelty to 33.2% at a high level
of novelty. The results concur with Hypothesis 2c, which states that as CL → KIC 0.144 0.077 -0.067 Decease
the novelty increases the importance of higher-level boundary spanning (p = .235) (p = .522)
CM → 0.433 0.525 0.092 Increase
objects become more important. KIC (p = .002) (p = .001)
We also performed the multigroup analysis using PLS (see Table 5). CI → KIC 0.194 0.341 0.147 Increase
Table 5 demonstrates the comparisons of path coefficients between (p = .196) (p = .009)
boundary-spanning objects and KI capability at a medium and high level
of novelty. The results indicate that only the relationship between
lexicon and KI capability decreases as the novelty increases (Δβ =
common meaning and KI capability is statistically significant at the
− 0.067) as we expected.
medium level of novelty. As novelty increases from medium to high
novelty, both common meaning and common interests are positively
5. Discussion
associated with KI capability. The change in beta (Δβ) indicates that the
strength of association between common meaning and KI capability
Based upon a sample comprised of owners and CEOs in a diverse
increases as novelty increases (Δβ = 0.092). Similarly, the strength of
range of industries, our results provide broad overarching support to the
association between common interest and KI Capability also increases as
proposed theoretical model. In this study we developed two new scales
novelty increases (Δβ = 0.147). The results support our hypotheses
relating to KI phenomena (a) boundary spanning objects- common
regarding the importance of boundary-spanning objects on KI capability
lexicon, common meaning, and common interest; and (b) novelty. Our
at the varying level of novelty. Although the relationship between
results show that boundary spanning objects is a construct with three
common lexicon and KI capability is not significant at either medium or
first-order dimensions namely common meaning, common lexicon, and
high level of novelty, the strength of association between common

Fig. 3. Contribution (%) of boundary spanning objects on KI capability.

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C. Acharya et al. International Journal of Information Management 62 (2022) 102438

common interest. Further, we find that boundary-spanning objects play that each boundary spanning objects have a differing impact on KI
an important role in developing KI capability and that KI is crucial to capability and innovation depending upon the extent of novelty. In the
innovation. Our analysis suggests that while the common lexicon does past, researchers have found the positive effect of cross-regional KI
not influence KI, the development of common interests, as well as (Singh, 2008), a team’s KI (Gardner et al., 2012; Gebert, Boerner, &
common meaning, are significant determinants of KI. A further novelty Kearney, 2010), alliance’s KI (Tiwana, 2008), KI capability on B2B
is a significant moderator of the relationship between boundary objects context (Revilla & Knoppen, 2015; Salunke, Weerawardena, &
and KI. Consistent with the arguments of Carlile (2004), our results McColl-Kennedy, 2019; Wang, Chen, & Fang, 2018) on innovation. This
suggest that the strength of relationships between boundary objects and study adds to the innovation literature by presenting the importance of
KI is different at different levels of novelty. Carlile’s arguments suggest knowledge actors’ KI capability for innovation.
that while establishing a shared vocabulary is sufficient in situations of Third, the results obtained from the current study contribute to the
low novelty, establishing shared understanding as well as interests be­ representational gap theory (Cronin & Weingart, 2007). Representa­
comes critical as situations become increasingly novel (Ojha, Patel, & tional gap relates to the lack of shared understanding regarding the
Sridharan, 2020). In line with these arguments, we find that both goals, assumptions of problems, elements of a problem to be solved, and
common meanings, as well as common interests, play a more significant rules to follow to solve a problem. Cronin and Weingart (2007) main­
role in influencing KI at higher compared to medium levels of novelty. In tained that the inconsistencies in the definition of a problem by orga­
situations of medium novelty, we observe that common meaning tends nizational members limit their ability to process information and
to influence KI more relative to common interests while in highly novel integrate their knowledge. Although this study does not examine the
situations, common interests tend to influence KI more relative to a consequences of representational gaps, it examines whether or not
common meaning. shared understanding is important to bridging the representational gap.
The unexpected insignificant relationship between the common One of the underlying questions that Cronin and Weingart call for future
lexicon and KI runs contrary to our hypothesis. We hypothesized that a researchers to address is what impact does employees’ motivation has
common lexicon or development of shared vocabularies will influence on their willingness to develop shared understanding and bridge their
KI but do not find support for this conjecture. One rationale for this representational gaps. The results of the current study indicate that the
unexpected finding may be explained by the mean of the composite ability of employees to innovate through collaboration and by devel­
score of the variable novelty, which was 3.60 on the five-point Likert oping shared understanding is one of the motivational factors that
scale. The mean score indicated that the respondents were working in an relational partners have to bridge their representational gap.
organization that was already facing a medium to a high degree of Fourth, the results of the study also contribute to the resource
novelty. In such situations, efficient integration demands more than a management theory. Resource management theory is an extension of
simple understanding of the concepts (Carlile, 2004). A second rationale resource-based view theory. The critics of the resource-based view argue
that might explain this contrary finding is rooted in the “power differ­ that VRIO resources are not enough for an organization to gain a
ence” hypothesis. For example, in situations where a patient who is not competitive advantage. The critics maintain that what an organization
knowledgeable about medicine interacts with doctors who are experts in does with those resources is equally essential (Hansen, Perry, & Reese,
this area, the situation is more likely to be characterized by a one-way 2004). Sirmon, Hitt, and Ireland (2007) present the framework of
transfer of knowledge from doctors to the patients. In establishing a resource management. In their framework, Sirmon et al. (2007) present
medical vocabulary and “learning the ropes”, a novice patient is unlikely that managers are key actors who manage resources by structuring
to question the doctor’s premises and conclusions regarding the problem (acquiring, accumulating, and divesting) the portfolio of resources,
situation. More likely, in this scenario, knowledge flows from the doc­ bundling (or integrating) those resources to develop capability, and
tors to their patients and the process that unfolds is one of knowledge leveraging capabilities to create value (Sirmon, Hitt, Ireland, & Gilbert,
transfer rather than the integration of perspectives of the doctors and 2011). The study’s findings indicate that relational resources foster
their patients. Because the mean level of novelty was on the higher side knowledge combination in the form of KI capability.
in our sample, subjects likely faced complex situations where those with While previous work has emphasized the importance of KI of various
knowledge yielded expert power and dominated the problem-solving knowledge sources (e.g., Berry, 2014; Tiwana, 2008; Zhou & Li, 2012)
process. Future research needs to explore and theorize whether and for innovations, as well as identified many key factors such as trust,
how experts and other sources of power may shape the nature of group expertise, or extent to which organizations possess the capability to
communication and thus the role that common lexicons play in influ­ codify and store knowledge, empirical examination of boundary objects
encing KI. as sources of integration and innovation remains absent (Edmondson &
Nembhard, 2009). In building upon the limited number of case studies,
5.1. Theoretical implications we, therefore, contribute by both developing scales to measure the
boundary objects of the common lexicon, meaning, and interests and
The first contribution of this study arises out of the use of the rela­ then examining their role in enhancing integration. By empirically
tional view approach to examine the importance of boundary-spanning examining the role that boundary objects play in enhancing KI, we also
objects as relational resources for developing knowledge integration address calls for further research into the antecedents that help KI and
capability. The relational resources foster the integration of dispersed, innovation (for instance, Espinosa, Slaughter, Kraut, & Herbsleb, 2007;
possibly complementary knowledge, of organizational. The underlying Huckman, Staats, & Upton, 2009; Reagans, Argote, & Brooks, 2005) and
logic of the relational view is that an organization’s resources, in exploring the mechanisms of shared language and shared interpretation
isolation, are not sufficient to generate relational rent. Both partnering (Cramton, 2001; Lewis, Lange, & Gillis, 2005; Monteverde, 1995)
firms need to have the relational capability to maintain their ongoing through which these variables may affect KI remain underexplored.
relationship to exchange resources for mutual benefit. Similarly, the We also find that KI capability fully mediates the relationship be­
results of our study indicated that simply possessing the new knowledge tween (1) common meaning and innovation and (2) common interest
is not enough for partners to develop KI capability. The organizational and innovation. The results demonstrate that boundary objects namely
actors should have common knowledge – common lexicons, meaning, common meaning and common interests can only enhance innovation if
and interests – to integrate their knowledge and sustain their ongoing a firm can use these boundary objects to improve its KI capability. While
relationship. researchers have argued that boundary objects help in sharing and
Second, the study contributes to innovation literature by identifying accessing knowledge (Carlile, 2004), providing a common platform for
types of knowledge required to address challenges related to innovation. actors to collaborate (Hsiao, Tsai, & Lee, 2012; Laine, Korhonen, Suo­
The finding from this study concurs with Carlile (2002, 2004) argument mala, & Rantamaa, 2016) and coordinate (Koskinen & Mäkinen, 2009)

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C. Acharya et al. International Journal of Information Management 62 (2022) 102438

across functional boundaries for the joint output our results add to this rebuilding and relearning for innovation. He states that for Qualtrics’s
body of knowledge by providing evidence that for boundary spanning transformation, "earning buy-in from [their] internal team" was essential
objects to be effective in influencing innovation, improvement in KI (Smith, 2021, p. 38). Managers could use Qualtrics’s experience of
capability is a necessary condition especially in novel environments. sensing novelty in the business environment by exploring their market,
products, and people. The key is to ask the question, how can we improve
5.2. Managerial implications to serve our customers better? As one can see, developing common in­
terests helps to reinvigorate organizational skills. Moreover, common
Although we did not find a statistically significant relationship be­ interests could also be viewed as a collective mindset where actors are
tween common lexicon and KI capability, one cannot overlook the willing to adapt and relearn, recognizing that novelty is inevitable.
importance of common lexicon. KPMG, one of the top four accounting The experience of Beta Motors, one of the world’s largest automobile
firms, supports a private equity firm’s quest for developing standard manufacturers with product development too also provides a pertinent
reporting procedures to share data between fund managers and in­ example of the use of boundary-spanning objects to facilitate innovation.
vestors, the lack of which causes challenges for both parties. While in­ Beta Motors developed an engineering tool to help overcome the
vestors spend time consolidating data received from fund managers in knowledge boundaries and facilitate collaboration among actors in a
different formats, the fund managers, on the other hand, struggle to vehicle design process (Carlile, 2004). Specifically, four different groups
meet investors’ demand for sending reports in multiple formats. More­ were involved in the vehicle design – vehicle styling, power train, climate
over, inconsistencies in standard reporting procedures result in dis­ control, and safety. The tool helped establish the common language used
crepancies in data presentations, interpretations, and unnecessary use of to specify vehicle features (such as size, shape, functionality of vehicles).
terminologies (Garcia, 2021). Therefore, in the accounting sector, a The tool also facilitated the development of shared understanding when
common lexicon in the form of standard reporting procedures is war­ faced with novelty. The members of four different groups had different
ranted. In other areas, the common lexicon can take different forms: requirements and preferences. The engineering tool helped actors see the
academic advisors could create forms for record-keeping and tracking consequences of vehicle design through simulation when various groups’
students’ academic progress. Data analysts could create a life-cycle of needs were addressed. In doing so, the group members developed a
projects, documenting business problems, gathering data, analyzing shared understanding of what would happen if and when newer re­
data, and presenting data. The use of standardized templates ensures quirements were accommodated. The group members would then (re)
timely, concise, and clear communication because actors don’t have to negotiate and transform their knowledge on the design of the vehicle to
learn to interpret new formats and process unnecessary data. reach an agreement. The engineering tool helped to clarify the differ­
Similarly, we also suggest that managers realize the importance of ences and dependencies among actors belonging to various functional
common meaning for effective communication. Researchers find that areas. The use of tools and the development of shared understanding
marketing managers trying to leverage the power of Artificial Intelli­ helped actors understand their differences and their dependencies. For
gence (AI) to help retain their customers often failed to do so because of example, the tool, using simulation techniques, showed how incorpo­
common errors. One of those obvious errors was the lack of shared un­ rating a more powerful engine, a requirement by the power train group
derstanding between data scientists and marketing managers. The lack of resulted in the change in the shape of the hood and increased the vehi­
common understanding between them occurred due to senior managers cle’s weight, something that would be a concern for the styling group.
not revealing that they lack knowledge of AI. As a result, these managers Nevertheless, the outcome was only possible through collaboration
can either not grasp the full potential of AI or have unrealistic expecta­ among actors of different groups. The understanding of dependencies
tions from data scientists. On the other hand, data scientists undertake helped actors to negotiate terms and conditions. As a result, the groups
projects with similar requirements. Complicating the situation is their were able to reach an agreement regarding the final design of the vehicle.
inability to explain to their nontechnical managers what they can or
cannot do (Ascarza et al., 2021). We suggest that organizational actors 5.3. Limitations and future research directions
develop a common understanding of expected results/outcomes, project
completion time, processes, roles and responsibilities, and interpretation The current study has several limitations. First, the study suffers from
of rules. Boundary spanners may also assist in creating a shared experi­ the lack of substantial data in attaining enough power to conduct the
ence between actors belonging to diverse professional backgrounds. One analyses at the different levels of novelty. The sample size of the low
such example of a boundary spanner is Business Analyst (BA). BAs bridge level of novelty was 10. To overcome the challenges to data collection, it
the knowledge gap between technical and non-technical professionals. is recommended that researchers collect the data using stratified random
They communicate the needs and requirements of business leaders to IT sampling, where the pool of companies operating in industries that face
professionals, keeping in mind the technological and financial feasibility a low degree of novelty would be created and the sample would be
of projects. drawn randomly from that pool. The study would also benefit if the
Lastly, we illustrate a case related to common interests fostering information about employees’ existing knowledge domains is obtained.
innovation. Ryan Smith, one of the founders of Qualtrics, explains how Such information would help us to understand the presence of com­
reinventing an already successful business helped Qualtrics, a small firm, plementary knowledge of employees. In essence, we would know
leap from a single product serving a small niche of business professors to whether the boundary objects are equally effective when there is a
Qualtrics XM, a multiproduct firm. The new business model of XM helps presence of differences in employees’ knowledge domains. Another
organizations gain customers’ insights, conduct market research, and limitation of this study is our focus on small firms. Given the size of large
manage customers experience. In the article, The Founder of Qualtrics on firms coordinating employees for knowledge integration may be more
Reinventing an Already Successful Business (Smith, 2021), Mr. Smith em­ difficult because of added complexity. Future studies should sample
phasizes unlearning, relearning, and risk-taking. He mentions that to large firms to address this limitation. Also, comparing the differences in
build something better, one has to develop a new skill set, tear down the large and small firms in their knowledge integration capability would be
previous rules and regulations, give up the old way of doing things, and a fruitful endeavor.
endeared projects even if those projects cost them years to develop. These Despite the limitations, our findings also offer important directions for
ideas are similar to our discussion of common interests, which encom­ future research. Our study focuses on the sample of small firms, a context
passes both learning new knowledge and forgoing the ones that are no seldom focused on in innovation literature on relational views. Small
longer relevant to solving current problems. firms not only face internal disadvantages but also face hurdles in
Common interests also stress a need to develop consensus among developing collaborations. Nevertheless, this remains an underexplored
organizational members. Mr. Smith calls for a similar consensus for area of research. Future research could further delve into the process by

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which firms seek partners with complementary resources, the hurdles Fifth, future research should also try to address additional key
they face in developing complementary innovation resources in the light moderators encompassing the relational view which we could not
of their limited power and knowledge are important considerations for address in this paper as that was beyond the scope of a single paper.
future research. Though in the current research we provide the anteced­ Examples of such moderators include dependence and difference in
ents of knowledge exchange, the very process of how relational view knowledge exchange (Carlile, 2004). Moreover, the role of other rela­
comes to fruition is important to developing a richer understanding of tional moderators like trust and relationship closeness could also be
how small firms leverage the relational view to improve their innovation explored.
outcomes. Sixth, the lack of objective data is a limitation of this study. Future
Second, compared to larger firms, smaller firms face greater recombi­ research should also look into replicating this research with data from
nant uncertainty as they have a lower critical mass of knowledge. Though public firms. This will enable the collecting of archival measures of
the lexical approach taken in the current study is valuable, the ‘pieces of innovation and financial performance and allow for assessing the impact
knowledge’ compared to larger firms are limited lowering the possible of boundary-spanning objects on firm innovation and financial perfor­
knowledge recombination that is feasible. Larger firms with their diverse mance. Such study could be a a mixed design study that integrates
product portfolio have the requisite variety to experiment with knowledge survey data collection with secondary data collected from sources like
recombination. The theoretical perspectives of bricolage and improvisa­ Compustat.
tion from entrepreneurship literature are important to understanding how
small firms leverage relational views to realize innovation outcomes. 6. Conclusions
Third, the relational rents may also accrue to small firms in the form
of improved long-term relations, through networks in the task envi­ We studied the impact of boundary-spanning objects on innovation,
ronment, and potential spillovers in the non- innovation contexts, where the relationship mediated by KI capability. Using the relational view, we
the ability to develop innovations may act as a signaling mechanism to argue how boundary-spanning objects help generate relational re­
non-innovation stakeholders and also improve potential strength of the sources. Specifically, the common lexicon generates relation-specific
relationship in non- innovation areas. Undertaking risky innovation assets for information exchange, common meaning allows members to
projects could signal greater efficacy of resources of a small firm and understand the value of each other’s knowledge, and common interests
may also improve long-term survival odds. align partners’ interests to sustain their ongoing relationship. Our results
Fourth, future studies could also focus on the cross-border aspects of indicate that boundary-spanning objects foster knowledge actors’ KI
the relational view of the firm. The proposed antecedents though studied capability, which, in turn, improves organizational innovation. We also
in the context of a single country, future studies can focus on the role of find that the role of each boundary-spanning object differs based on the
cultural, psychological, and geographic distances in studying variations level of novelty in a firm’s environment. While the common meaning is
in the efficacy of relational view. In cross-border relational exchanges more effective at developing KI capability when novelty is at a medium
added further challenges of distance, time differences, and culture are level, common interests also becomes important as novelty increases to
additional elements to consider in understanding the contingencies in the highest level.
innovation outcomes from the relational view of the firm.

Appendix 1. Review of Knowledge Integration Literature

Citations Independent Variables Moderators Dependent Variables Methods

Berry (2014) • Manufacturing • Multicountry knowledge • Archival data (firm- and patent- level
• Technology diversity generation estimations)
• Forward self-citation • Multicountry collaborative
innovation
Gardner et al. (2012) • Relational resources • Environmental uncertainty • KI capability (mediator) • Cross-sectional study
• Experiential resources • Team performance • Team level data collection
• Structural resources (dependent variable)
Zhou and Li (2012) Knowledge Characteristics • Knowledge breadth and • Radical innovation • Study 1: Survey data - 177 high-tech Chi­
• Knowledge sharing knowledge breadth nese firms
• Knowledge acquisitions • Study 2: Longitudinal study -managers
from 68 firms
Cheung, Myers, and KI (one of the dimensions of • Relationship performance • Cross-border customer- • Archival data from 126 cross-border dyads.
Mentzer (2011) relational learning) supplier relationship
• Moderation – cultural
distance
Majchrzak et al. Transcending approach of KI • KI • Observation study
(2012)
Gebert et al. (2010) • KI • Closed-action strategy • Leaders • Proposed framework
• Knowledge generation • Open-action strategy
Boh, Ren, Kiesler, and Effective staffing decision • Geographically dispersed • KI • Interviews and archival data of project
Bussjaeger (2007) organization staffing decisions for 493 projects over five
years.
Carlile (2004) Traversing approach of KI • Novelty (from low to high) • KI • Case study
• Common lexicon • Development of knowledge boundaries
• Common meaning framework.
• Common interest
Carlile (2002) Structure of Knowledge in Practice: • Knowledge structure of four • New product • Ethnographic study
Localized; Embedded; Invested communities of practices development
• Context – new product
development
Formal Interventions • KI behavior • Experimental setting
(continued on next page)

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(continued )
Citations Independent Variables Moderators Dependent Variables Methods

Okhuysen and • Questioning others


Eisenhardt (2002) • Managing time
• Sharing information

Appendix 2. Scale Development Details for the Pilot Study

Following Malhotra and Grover’s (1998) suggestion of conducting pre-testing and pilot testing for newly developed measures, we ensured that the
measurement instruments are reliable, valid, and structured. As suggested by Menor and Roth (2007), in the front-end portion of the scale devel­
opment, the reliability and validity of tentative measurements were established by obtaining responses regarding scales from a panel of informed
judges (Menor & Roth, 2007). In the back-end portion of scale development, psychometric properties of multi-item scales were assessed.

Front end process of scale development-pretesting

The first step of the scale development process involved specifying the theoretical domain and developing operational definitions of constructs
used in this study. Accordingly, the operational definition of boundary-spanning objects was developed based on Carlile (2002, 2004). Since boundary
spanning objects did not have an existing scale, new items were generated to measure three dimensions of boundary spanning objects based on the
operational definition of the common lexicon, common meaning, and common interests.
Q-sort method was used to purify and pre-test items for reliability and validity. To conduct item sorting, we provided a panel of six independent
judges with (1) the operational definitions of constructs used in this study, and (2) the randomized listing of items measuring three dimensions of
boundary spanning objects. The judges were provided with the Qualtrics link, which directed them to a web page. The page contained two columns.
The first column consisted of 13 items. The second column consisted of three dimensions of boundary-spanning objects, which are common lexicons,
common meaning, and common interests.
The judges were asked to familiarize themselves with the definitions of the boundary spanning objects and place each item from the first column
under one of the categories in the second column. One respondent put one of the statements from common meaning to another group. Similarly,
another respondent placed one item from common lexicons to another category. The items were therefore revised to accurately measure the construct
they are measuring. Four respondents categorized one of the items from common interests to common meaning (we jointly agree on processes related
to completing a task). For this reason, the item was reworded and placed under the category, common meaning. The new item was worded as, "We
have a shared understanding of processes required to complete a task." Moreover, to ensure that there is an adequate number of items to measure
common interests, two additional items were added to this category, common interests. These items are “we develop consensus to use relevant
knowledge to solve a particular problem,” and “all the members agree that the knowledge developed in one area is useful in another.”
After consulting a panel of six independent judges for Q-sorting and after purifying and rewording items, an expert in the field was requested to
provide feedback on the final items for boundary-spanning objects. Based on the suggestion from the expert, the items were further refined to improve
clarity. And, the double-barrelled questions were presented as two separate questions. This overall process helped us to improve the face-validity of
boundary-spanning objects (Nahm, Rao, Solis-Galvan, & Ragu-Nathan, 2002).
The 5-point Likert-type scale was used for boundary-spanning objects to gather responses from the respondents. Although the Likert-type scale will
generate closed-ended questions and reduces the flexibility for answers, they are less affected by random influences. The common lexicon is measured
using six items. These items included statements that required respondents to provide their level of agreement/disagreement regarding the use of
repositories, standardized forms and methods, objects or models, and maps of boundaries to share and access knowledge at a syntactic boundary. The
common meaning is measured using six items. Respondents were asked to provide the level of their agreement/disagreement on the common un­
derstanding of expected results, time, rules, roles and responsibilities, outcomes, and processes related to completing a task. Finally, the common
interest is measured using five items. The respondents were asked to provide their level of agreement/disagreement regarding employees’ willingness
to learn new knowledge and discard irrelevant knowledge to solve a particular problem.

Backend end process of scale development - the pilot study

To further improve the reliability and validity of the construct we conducted a pilot study using survey data. The sample frame for the pilot study
was the Amazon Mechanical Turk (MTurk). The respondents were located in the U.S. A total of 196 respondents completed the survey, out of which 61
responses were deleted because some of them had missing data.
This pilot study used the key informant approach to collect data (Li & Atuahene-Gima, 2002). To ensure that the respondents are key informants of
a firm, screening questions are used in the survey questionnaire. Two questions are used to identify the key informants, which are 1) the amount of
respondents’ involvement in the strategic decision making, and 2) the level of respondents’ knowledge related to the strategic decision-making
process. Only those respondents who are involved in the strategic decision-making of a firm and those who have some knowledge regarding such
decision-making processes are included in the study. Respondents who did not qualify based on screening questions were also deleted.
The final sample size was 135, a net response rate of about 69-percent. The primary job titles of target respondents include the owner (n = 11),
chief executive officer (n = 1), general manager (n = 6), managing director (n = 5), senior R&D manager (n = 2), project manager (n = 27), branch
manager (n = 21), supervisors (n = 39), and Staff (n = 23). Those who indicated as staffs said they worked as human resource, web manager, store
manager, teacher, scientist, engineer, and assistant. The respondents represented various industries such as Educational Services (n = 20), Healthcare
(n = 19), Technology (n = 15), Food/beverages (n = 11), Electronics (n = 7), Aviation (n = 6), Automotive (n = 5), Entertainment, Transportation,
and Metal fabrication (n = 4), Pharmaceuticals (n = 2), and Other (n = 38). Respondents in the other category represented service (n = 12), financial
(n = 5), agriculture (n = 3), construction (n = 3), retail (n = 3), manufacturing (n = 3), and real estate (n = 2). Respondents worked in companies
representing various size in terms of number of employees: less than 50 employees (n = 37), 50–99 employees (n = 16), 100–249 employees (n = 25),
250–499 employees (n = 17), 500–999 employees (n = 15), 1000 or more employees (n = 25).

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The data analyses demonstrated that the average variance extracted (AVE) values of all the constructs were above 0.50, providing support for
convergent validity (Fornell & Larcker, 1981). The square root of the AVE for each construct was higher than its correlation with the other factors in
the model (Fornell & Larcker, 1981), indicating discriminant validity. Moreover, Anderson and Gerbing (1988) pairwise comparison of variables was
used to test for discriminant validity. The chi-square difference between the constrained measurement model and the unconstrained measurement
model (freely estimated model) was satisfactory (Δχ2 [Δdf] = 72.395[8], p ≤ .001), which also provided support for discriminant validity. The
composite reliability of common lexicon, common meaning, common interests were respectively 0.808, 0.882, and 0.854.
Confirmatory factor analysis (CFA) was used to test construct validity. Three sub- dimensionalities of boundary objects were specified before the
analysis was conducted. Principal Axis Factoring was used with Oblimin rotation and Kaiser Normalization. The results demonstrate only two items of
common lexicon and three items of common interests had a loading of more than 0.50. All items related to common meaning had more than 0.50
factor loadings. Therefore, the items that had less than 0.50 loadings were either modified or dropped (See Table A1 and A2 of Appendix 3). Other
items were either accepted as is or with a slight modification. Moreover, CFA with Principle component analysis was also conducted for three Novelty
items, the factor loading for all items was more than 0.70. Items were, “Our firm frequently encounters changes in customers’ tastes and preferences,”
“Our customers frequently demand technological advances in products/services,” and “We regularly update our existing knowledge domain to meet
the changes in customers’ requirements.” However, Cronbach alpha for the Novelty was only 0.60. Therefore, items for novelty are further revised in
the final data collection using Carlile (2004) definition of novelty.

Appendix 3. Supporting Tables

see Tables A1 and A2.

Table A1
Factor analysis of boundary spanning objects in pilot study
.
Factors 1 2 3

Common Lexicon 1 -.02 .45 .02


Common Lexicon 2 .31 .73 .17
Common Lexicon 3 .54 .74 .21
Common Lexicon 4 .54 .05 .34
Common Lexicon 5 .62 .23 .43
Common Meaning 1 .75 .19 .40
Common Meaning 2 .75 .24 .42
Common Meaning 3 .75 -.01 .55
Common Meaning 4 .77 .06 .53
Common Meaning 5 .77 .17 .43
Common Meaning 6 .76 .09 .54
Common Interest 1 .33 -.06 .41
Common Interest 2 .45 .12 .76
Common Interest 3 .49 .07 .82
Common Interest 4 .53 .18 .63
Common Interest 5 .53 -.05 .43

Extraction Method: Principal Axis Factoring.


Rotation Method: Oblimin with Kaiser Normalization.

Table A2
Factor loadings and Cronbach’s alpha of boundary spanning objects items in pilot study.
Cronbach’s Alpha if Item Deleted Factor Loading Accept/ Dropped/ Modified
Variables

Common Lexicon
We use shared tools such as sketches or prints .69 .45 Modified
We use common designs for completing a task .49 .73 Modified
We have standard specifications for completing a task .41 .74 Modified
We communicate in a language that we all understand .63 .05 Dropped
We have standardized organizational rules .57 .23 Dropped
Cronbach’s Alpha 0.62
Common Meaning
We have a common understanding of expected results from completing a task .88 .75 Accepted
We have a common understanding of the time required to complete a task .87 .75 Accepted
Our interpretation of organizational rules is similar .88 .75 Accepted
We have a common understanding of the roles and responsibilities of organizational members. .87 .77 Accepted
We have a common understanding of the outcomes of completing a task .87 .77 Accepted
We have a shared understanding of the processes required to complete a task .87 .76 Accepted
Cronbach’s Alpha .89
Common Interests
All members agree to ignore knowledge irrelevant to completing a 0.75 .41 Modified
particular task.
We jointly agree to learn new knowledge required to solve a problem. 0.65 .76 Modified
We jointly agree to invest time and resources to learn new knowledge. 0.64 .82 Modified
(continued on next page)

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Table A2 (continued )
Cronbach’s Alpha if Item Deleted Factor Loading Accept/ Dropped/ Modified
Variables

We develop a consensus to use relevant knowledge to solve a particular 0.67 .63 Accepted
problem
All members agree that knowledge developed in one area is useful in another. 0.73 .43 Modified
Cronbach’s Alpha 0.74

Appendix 4. Survey Scales and Items in Main Study

Constructs and Items

Common Lexicon (Carlile, 2004)

We use common designs for communicating information related to completing a task


Use of standard specifications enables us to share information for completing a task
We use common tools such as sketches/prints for sharing information related to completing a task
We use similar tools for communicating information for completing a task
Common Meaning (Carlile, 2004)

We have a common understanding of expected results from completing a task


We have a common understanding of time required to complete a task
Our interpretation of organizational rules is similar
We have a common understanding of roles and responsibilities of organizational members
We have a common understanding about outcomes of completing a task
We have a shared understanding of processes required to complete a task
Common Interests (Carlile, 2004)

All members agree to use only the knowledge relevant to completing a particular task (DELETED)
We are willing to forego our self-interests to develop consensus for solving problems
We jointly agree to learn new knowledge required for solving problems
We jointly agree to invest additional time to learn new knowledge for solving problems
We develop consensus to use relevant knowledge to solve a particular problem
All members agree that knowledge developed in one area can be useful in another for solving problems
We jointly agree to invest resources to learn new knowledge for solving problems
KI capability (Gardner et al., 2012) is measured in a 7-points Likert scale. The communication is…
Delayed Neutral Timely
Digressive Neutral Concise
Too many/too few Neutral Right amount Inconsiderate Neutral Supportive
Deceptive Neutral Truthful Confrontational Neutral Non confrontational
Hamperingteamwork Neutral Fostering teamworkIrrelevant Neutral Relevant
Biased Neutral Objective
Confused Neutral Clear
Innovation (Li & Atuahene-Gima, 2002). Requires respondents to rate the statements regarding their FIRM’s level of
innovation relative to its major competitors over the last 3 years the extent to which it has … (1 = weaker than
competition; 4 = similar to competition; 7 = stronger than competition).
Relative to our major competitors, our firm has…

Placed significant emphasis on new product/service development through allocation of substantial financial resources
Developed a large variety of new product/service
Made dramatic changes in existing products/service
Increased the rate of new product/service introductions to the market
Increased overall commitment to develop new product/service
Increased overall commitment to market new products/service
Novelty (Carlile, 2004)

The changes in customers’ tastes and preferences frequently make our knowledge obsolete
B) We often do not have immediate solutions to technological advances in products/services demanded by our customers.
(DELETED)
We often have to expand our knowledge base to meet the changing customers’ need.
We regularly update our existing knowledge domain to meet the changes in customers’ requirements

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