Technovation, 16(6) (1996) 301-312

Copyright © 1996 Elsevier Science Ltd

Printed in Great Britain. All rights reserved
ELSEVIER 0166-4972/96 $15.00 + 0.00
ADVANCED
TECHNOLOGY

IJnk ,a. pr-o, s of

knc-wledgeWander to achieve
suc ssf,al tecl:.-,ologicalin,levation
Myrna Gilbert and Martyn Cordey-Hayes
Innovation and Technology Assessment Unit, Cranfield University, Cranfield,
Beds. MK43 0AL, UK

Abstract
This paper is concerned with the ability of organizations to innovate and
successfully achieve technological and organizational change. It recognizes
the complexity of the issues that contribute to the management of such
change and the role of the learning organization. Through the use of
organizational and technological literature it presents the development of a
conceptual model for understanding the processes of knowledge transfer. The
use of the model is demonstrated within a case study which explores the
successful introduction of technology change into a division of a major bank.
The study investigates in detail, through the reflections of individuals within
the company, the activities and behaviours that have led to the successful
introduction of technology change. The paper includes some of the findings
and analysis of the study. The use of the model as a tool for understanding
organizational processes is evaluated. Copyright © 1996 Elsevier Science Ltd

1. INlllODUCHON
The successful management of technological and
organizational change is an important issue for com-
panies wishing to achieve competitive success. The
climate such companies operate within is one where
constant change has become the norm and the ability
to innovate, to respond to and to take advantage of
change has become an essential part of organizational
development. It is believed that the skills needed to
achieve such success are centred on the promotion of
a learning culture in organizations. This paper sets
out to show, through the development of a conceptual
model and its exploration within a leading financial
institution, how the processes of learning in organiza-
tions may be researched. It offers a model for knowl-
edge transfer as a conceptual framework for exploring
organizational processes. The model is evaluated and
its value as a tool for exploring organizational pro-
cesses is demonstrated.
2. A LEARNINGAPPROACHTOMANAGINGTHE
TECIINOLOGICALCHANGEPROCESS
An understanding of the issues that contribute to
the successful implementation of technology into an
organization is complex. The literature does not offer
a tool for exploring these processes. The technology
literature recognizes the organizational issues for
implementation of new technology and the import-
ance of innovation but it does not address adequately
the linkages to creativity and learning. The organiza-
tional literature characterizes the socially constructed
nature of the organization and recognizes the changes
within it as being manifested in the organizational
culture but rarely addresses questions related to tech-
nology. Culture is established as being a creative pro-
cess that may be explored through the processes of
innovation. Linking these processes has resulted in
the development of a knowledge transfer model for
use as a framework for exploring the organizational

SMGJ~S)OOM2~ T~m V~ 16k 6

M. Gilbertand M. CoNey-Hayes
processes. It conceptualizes the processes of organiza-
tional learning by exploring the attitudes, behaviours
and activities of members of the organization as exhi-
bited by the culture of the organization. Contigent
upon this model is the notion of feedback that enables
the learning process to be creative.
The framework illustrated in Fig. 1 was constructed
directly from a critique and synthesis of the literature
and embodied the current thinking on organizational
learning. It followed the proposal that a model for
technology change for the 21 st century must employ
the processes of knowledge transfer throughout the
organization. It accepted the notion of the learning
organization on the basis that an organization that is
receptive and that enables learning to occur is better
able continuously to develop and change, to react to
internal and external effects and to achieve competi-
tive success. Such a model may be described as a
paradigm for a learning organization (Bessant et al.,
1992). Recent studies suggest that the key to success
for an organization is embodied in its ability to
implement and appropriate new technology
(Willmann, 1991). The answer to how this might be
achieved is described in terms of the knowledge trans-
fer capability within the organization. This argument
is developed by Cohen and Levinthal (1990), who
suggest that knowledge transfer is a critical factor in
the ability of a firm to innovate. What is being
described here is the capacity of the firm to recognize
the value of internal and external information and to
use it for commercial ends. This process is defined
by Seaton and Cordey-Hayes (1993) and Trott (1993)
as the concept of receptivity: the ability that the
organization has which enables it to take advantage
of this knowledge. If innovation and the introduction
of new technologies are seen to be an organizational
issue where management and organizational pro-
cesses are deterministic in achieving success, then the
emphasis moves away from the technology and must
begin to focus on the organization itself and the way
in which organizational behaviour may be under-
stood.
2.1ThelearningorganizaSonas an enablingdimatefor
tedmdo~cai innovalion
There are many definitions of a learning organiza-
tion (Seaton and Cordey-Hayes, 1993; Burgoyne,
Technology > Receptivity
Change
I
Learning
Capability
Fig. 1, The conceptual bridge between technological change and organizational learning.
302
1992; Mills and Friesen, 1992) but there is a com-
monality amongst these definitions. The organization
must be adaptive and be able to respond to both the
internal and external environment, and it must be
open and be able to communicate. More essentially,
the definitions offer a progression towards a set of
skills that an organization needs to acquire to be able
successfully to achieve innovation for competitive
success. These skills will provide the ability to be able
to respond to change and to handle uncertainty, resist-
ance, conflict, risk, negotiation and changed circum-
stances. There are parallels to be seen here between
the definitions provided for a learning organization
and the components of Rothwell's (1992) fifth-gener-
ation innovation process. Rothwell identifies the
increasing need for speed in innovation to achieve
competitive success, and many of the features
included (e.g. gaining commitment and support;
efficiency at indirect development activities; adopting
a more horizontal management style; efficient
upstream data linkages and inter-company liaison;
incremental improvement; designed-in flexibility;
fuller organizational and systems integration) may be
mapped on to the critical factors for organizational
learning. The sets of skills required will enable the
introduction of changes in a way that moves the
organization forward whilst creating sustainable
change (Taylor and Williams, 1994).
The organization must either hold the requisite
skills that a learning organization requires or develop
the potentiality to acquire them. The process that
embodies this ability is that of assimilation, which
may be defined as the transmission of knowledge into
the core routines of the organization. This definition
implies the provision of the receptive context for
learning (Seaton and Cordey-Hayes, 1993), the devel-
opment of absorptive capacity (Cohen and Levinthal,
1990) and the capability for knowledge transfer.
3. DEVELOPMENTOFA CONCEPTUALFRAMEWORKFOR
UNCOVERING111EPROCESSESOFKNOWLEDGE
TRANSFER
A knowledge transfer model (Fig. 2) was
developed as a framework for exploring these pro-
cesses (Gilbert, 1995). It was based on the schematic
Awareness
Association ~.. Culture ,~. Strategy
l Tl
Assimilation ~ Behaviour~
Structure

THE ORGANISATION /
-¢
Fig. 2. Conceptual framework for knowledge transfer.
conceptual framework for successful technology
change depicted in Fig. 1 that links the processes of
technology change with those of changes in organiza-
tional structure and behaviour. This follows the
approach concurrently developed in a parallel study
with ICI (Trott, 1993). This latter study breaks the
inward technology transfer process into a series of
sub-processes: Awareness, Association, Assimilation
and Application. The process of knowledge transfer
is not a static one, it is dynamic, and is part of a
process of continuous learning. What approach should
be taken when choosing to investigate this process?
There is some confusion and lack of discernment con-
cerning the meaning of technology adoption, accept-
ance and assimilation and it is this question that is
central to understanding. Is there indeed a difference
between adoption and perhaps acceptance of tech-
nology and technology assimilation? It is proposed in
the model that if learning does not truly occur until
assimilation takes place there must be a number of
stages, including adoption and acceptance, before
assimilation happens, and a number of activities or
elements that lead to successful assimilation. The
approach taken when designing the research method
sought to examine and identify all these stages and
to discover whether there are differences between
technology adoption and assimilation and to gain
from this a greater understanding of these processes.
The relationships involved are complex, they are not
linear and they involve a number of inter-relation-
ships. The aim of the conceptual framework was to
track the ability of the organization to achieve knowl-
edge transfer by investigating the organizational pro-
cesses that might encourage or prohibit learning. Four
stage~--s-were identified from the literature, and were
included in the model (see Fig. 2), which follow the
processes of knowledge as it may be transferred
hdmtatt Umpriam of kmk traasfer
I / ] \ communication
BA/~IER
tree learning occurs
within an organization to lead to the development of
a set of routines which are reflected in the behaviour
and practices of the members of the organization and
which become part of the core routines, so that
assimilation, or learning, occurs. These are: Acqui-
sition, Communication, Application and Assimilation.
3a ien
The first step in the model is that of acquisition:
before it is able to be transferred, knowledge must be
acquired. The organization might learn from its past,
by doing, by 'borrowing', by acquiring individuals
with new knowledge and by a continuous process of
searching or scanning. A major influence is 'congeni-
tal learning'. The very essence of an organization is
profoundly influenced by its founders (Schein, 1991).
The prior knowledge held at the inception or birth of
an organization will direct and determine how it
moves forward, what it searches for, what it finds and
how it interprets knowledge acquired. Whilst Fig. 2
identifies the processes of knowledge acquisition, the
type of knowledge acquired will be differentiated by
these constructs that will influence the source of the
knowledge.
3.20onmunicniion
The second step is the communication of knowl-
edge once it is acquired. Communication may be writ-
ten or verbal. This process of distributing the knowl-
edge acquired in organizations has been well
researched. The organization must be aware of the
possible barriers to the dissemination of information
if it is its intention to encourage knowledge transfer.
The model requires that the communication mechan-
isms are developed so that the opportunities for trans-
M. Gilbertand M. Cordey-Hayes
ferring knowledge effectively are both present and
encouraged.
The knowledge acquired and communicated must
then be applied for it to be retained. It is the results
of the application of the knowledge that enables the
organization to learn, rather than the knowledge itself.
3.4 AsskldlaUm
The key to the process of knowledge transfer is the
assimilation of the results and effects of applying the
knowledge gained. This requires the transfer of the
results of history into the routines of the organization.
4. EXPLORINGTHEMODEL
The intention of the study was to investigate the
value of the conceptual model as a device for both
exploring and understanding the processes of learn-
ing. Discovering the learning and organizational pro-
cesses involved in successfully implementing techno-
logical change sets its own limitations on the
characteristics of the organization to be studied. The
context, that is the state of change that the organiza-
tion is in, was the most important criterion for choice
in this first use of the model. The organization chosen
needed to be actively seeking to move forward and
to show an awareness that learning and continuous
improvement are essential processes for change.
Lloyds Private Banking (LPB) met these criteria. To
quote the Chief Executive, "the only constant of the
whole period is change and this is how it will be for
the future". Information was needed not just from
people but also from the records and documentation
of the organization. The information sought needed
to come from diverse sources within the organization.
The topic under consideration is complex, the pro-
cesses are not well understood and there is little real
theory on which to base the study. Yet the topic is
not so new that no theory exists. Indeed, much has
existed for some time but within different disciplines
and therefore approached from different directions.
The process was one of directed search that combines
inductive and deductive approaches (Gilbert, 1995).
Propositions were used to direct and to provide struc-
ture and definition but were used as pointers rather
than blinkers (Hinton, 1995), whilst explanation was
obtained by understanding rather than theory. A bio-
graphical approach was used to explore history
through the perceptions of members of the organiza-
tion over time. The exploration follows the belief that
when knowledge and ideas are assimilated they
become part of the organizational culture and a r e
304 T W ~ a l J ¥1i.~ h. 6
reflected in the core routines and behaviours of the
organization. In LPB there had been radical change,
as a result of which there has been, for example,
restructuring, job losses, changing working practices,
introduction of new technologies and a changing
approach to internal and external influences. The
changes are perceived to be successful in the sense
that the senior management perceive they have achie-
ved what they set out to do. It is by exploring what
was intended to happen, what did happen and what
is happening now, and by understanding the percep-
tions that individuals have of these changes, that
further knowledge can be gained. By encouraging
these individuals to reflect on the process of change,
the historical changes and the way they perceive the
organization to be moving to meet the future, this
understanding can be augmented. Examining and
appraising the behaviours, views and beliefs of the
individuals enables a sense of whether there is accept-
ance or whether this has progressed further to become
assimilation. Using this approach, knowledge of the
way the process of learning has occurred may be
further developed.
The examination and exploration of the percep-
tions, behaviours and beliefs is itself complex and
may be viewed at a number of different levels. Many
of the different levels of the processes of knowledge
transfer and perceptions of these processes are not
clear, and these were sought by interviewing a cross-
section of the organization both hierarchically and
functionally. The interviews were semi-structured and
took between an hour and a half and two hours in
duration. The interview data that had been recorded
was transcribed literally.
The literally transcribed data was analysed in two
ways; this section provides an outline of the analysis
approach and, in Figs. 4 and 5 and Tables 1, 2 and 3,
some examples of the analysis process. Firstly, it was
recognized in the research design that one of the cen-
tral difficulties in exploring perception is that this will
be dependent on interpretation and the view of reality
that the individual holds (Lemon, 1991). The percep-
tions of the individuals were thus graphically
expressed by the generation of a set of maps produced
from each interview centred around three themes that
were common to all interviews: effect on the individ-
ual; effect on the organization; and effect on com-
munication. The form of the maps was similar to that
of a cognitive map, serving the purpose of graphical
notes. The sets of maps were returned to the inter-
viewees for their comments and to validate the accu-
racy of the pictures created. A primary or core cate-
gory was identified from the maps, as being the
common perception of a change in organizational cul-
ture that was exemplified as a move from a service
to a sales culture (see Fig. 3). The perceived effects
which stem from the core category were organized
into two classes: organization and individual, and
further broken down to sub-categories:
 u~nta~h n=~ 0 f ~ ~

less loyalmoreinfluenced
job for life by rewards
engenderedloyalty t
less security
patriarchal/paternal less caring
caring
j,
economicallyaware
loss-making~ servica¢ CULl URE sales7 ,~ profitable

tec.ooxic.ise/1
,
hidden/backroo7 ~
/ professional \
higherprofile \
automatic
promotion
reducedprospects ~ \
for promotion ~ /
automatic paymentby
salaryincrease performance

200 years 5 years

t h
w

STABILITY CONSTANTCHANGE
Fig. 3, Summary of perception of change in organizational culture.

90 I ~ developmental& ins
80 instrumental
~] Developmental
70

60

50

at 40

30

20

I0

C A M R I RA O B
job function
Fig.4. Opportunitiesto acquireknowledge,by type.

~,,J,,,,,~ ~ = ~,. 6 305

M. Gilbertand M. Cordey-Hayes

7O
m
m developmental & ins

60- [] instrumental

50 -

40

30

20

C A M R I RA O B J
job f u n c t i o n

Fig. 5. Percentage of total opportunity to acquire knowledge, by type.

TABLE 1. Opportunities to acquire knowledge

Instrumental Developmental Instrumental & Developmental

Newsletters playing golf with clients visits to clients

video material
audio tapes
circulars
newsletters
in-house newspapers
service excellence material
sending out questionnaires to clients
feedback from research about company and
image
feedback from client questionnaires
feedback from staff visits
conditions of employment, benefits, changes in
employee benefits, health and safety material
letter contact with Chief Office
telephone contact with Chief Office
telephone contact with regional manager
visits to Chief Officedbrought in people ~5 at a clients visiting office
time
visits to look at national products/systems telephone contact with clients
visits to look at international products/systems visits to Chief Office
talking to colleagues in office--informal meetings visits to Regional Office
providing information for colleagues on companies visits to Technology Project
questionnaire to own office colleagues on level of visits to eentres
service being provided
monitoring own performance visits from Chief Office
social contact with office--i.e, occasional office visits from Regional Manager
parties, outings, lunch
open plan office encourages teamwork--multi-floor visits from Technology Project Team
acts as barrier
personal contact with people in other offices through visits from Service Excellence Team
own networking; almost no formal contact below
manager level outside of training courses
presentation at P--rare event giving talks to colleagues
conference for managers--rare event meetings with manager--varies with size of office,
rarely for junior staff in larger offices
attending conferences quarterly results meetings in office with regional
manager
talking to staff investment manager meetings, including people from
investment unit--regional 2-3 times a year--not
common to all regions

• Organization: awareness, economic awareness, dimensions it was possible to explore through the
management, quality of service, behaviour towards transcribed data the changes, firstly, in terms of the
employees, use of technology; activities associated with the changes and, secondly,
• Individual: career path and rewards, attitude to in terms of changes in attitude and behaviour that had
organization, working practices. resulted from the application of the activities.

Secondly, from these categories and analysis of their A distinction was made in the analysis between two

306 TedmvaikeVel.16No.6
 , lbe process of

T A B L E 2. Application of knowledge

C A M R RA I O B J

s e e i n g c l i e n t s a c c o r d i n g to their w i s h e s - - * * * * ,
customer focus
t r y i n g to m e e t r e q u i r e m e n t s a n d n e e d s o f * * * * * *
customers
w o r k as a team, therefore clients a l w a y s g e t a n *
instant r e s p o n s e
obtaining client feedback * * * *
m o n i t o r i n g p e r f o r m a n c e a n d r e s p o n d i n g to * *
feedback
rebranding * * * * * * •
n e w n a m e , n e w lo g o , n e w i m a g e , office * * * * * *
refurbishment
q u a l i t y a n d c o l o u r o f stationery * * *
production of new brochures based on research * *
findings
service e x c e l l e n c e s t a n d a r d s * * * * * *
p r o v i d i n g s u p p o r t for n e w s t a n d a r d s *
setting d o w n o f r u l e s / g u i d e l i n e s * *
application of standards * * * * *
less variation in p r actice * * * * *
t i g h t e n i n g u p o f slack c o m e r s * * *
g r e a t e r a w a r e n e s s o f w h a t is r e q u i r e d * * * * *
targets to m e e t - - p u s h e d to p e r f o r m * * * * *
f o c u s o n target m a r k e t s * *
e m p h a s i s o n h o w i n d i v i d u a l is p e r f o r m i n g * *
r e w a r d s for i n d i v i d u a l * * *
h a v i n g to w o r k h a r d e r * *
h a r d e r to a p p r o a c h to staf f * * *
t o u g h e r a p p r o a c h to b u s i n e s s * *

specific types of knowledge: instrumental knowledge
and developmental knowledge. Instrumental knowl-
edge is the knowledge that is necessary to be able to
do the job, and developmental knowledge that which
enriches and enhances the instrumental knowledge.
Developmental knowledge includes the field of per-
sonal development. Knowledge that is held by an
individual only and not shared is of no value in the
learning process. It is not transferred, therefore it can-
not become assimilated into the core routines of the
organization (Nomaka, 1991). Many opportunities to
acquire developmental knowledge arise out of opport-
unities created for the transfer of instrumental knowl-
edge, for example, the visits made by the regional
manager each quarter to each office to discuss the
quarterly results. Not only does this offer an opport-
unity to talk to the regional manager on a fairly infor-
mal basis but it also offers an opportunity for all staff
within the office to meet together as a group that,
particularly in larger offices, is an infrequent occur-
rence. Trott (1993) has stressed the value of net-
working as~ a means of knowledge transfer. The
increased emphasis put on the value of the team by
the company and the removal of layers of manage-
ment have meant that decision-making is often a team
effort, and it is important that opportunity for both
formal and informal discussion of ideas is made avail-
able (Knights et al., 1993).
The categories of acquisition and communication
of knowledge are linked in the analysis since the
opportunities to do both are often indistinguishable.
Table 1 provides an illustration of the analysis of
'opportunities to acquire knowledge'. Given the
importance attributed to creativity in the technology
change process, and given that all interviewees per-
ceived that they had sufficient information to enable
them to do their jobs well, the most significant area
is the opportunity that the individual has to acquire
developmental knowledge. Figures 4 and 5 show
graphically the opportunities to acquire knowledge
across the different levels of the organization; the cat-
egories range in seniority from left to fight, category
C being the most senior. Figure 4 looks at the categor-
ies of knowledge expressed as a percentage of the
total opportunities for each category; for example, for
category C some 55% of the opportunities to acquire
'developmental & instrumental' knowledge are avail-
able to them. Figure 5 looks at the type of knowledge
as a percentage of the total activities available to each
individual to acquire knowledge, analysed by func-
tion; for example, for category C some 30% of their
total opportunities to acquire knowledge is made up
of activities related to developmental & instrumental
knowledge. While instrumental knowledge forms the
major part of all knowledge acquisition activities, four
of the job functions offer considerable opportunity to
acquire developmental knowledge. However the most
junior categories, J, B and RA, offer in one case no
opportunities and the other two very little. Category
I is interesting, for while this is a category below
manager level, and the same grade as R, category I
has the highest percentage of activities centred on
developmental knowledge. Category I concentrates on

TodmmaimWi.W k i
M. Gilbertand M. Cordey-Hayes

T A B L E 3. Assimilation o f k n o w l e d g e

C A M R RA I O B J

proactive now * * * *
responding to client needs * * * * * *
standards and c o m m i t m e n t increased *
m o r e and more efficient * * * * *
recognition o f need to w o r k hard * *
individual responsibility * * *
it is O K to admit to having m a d e a mistake, no *
longer fear
much more positive * * * * *
less paternal approach from top * * * *
proud to do j o b * *
elite professional * *
' k n o w i n g ' your c u s t o m e r * *
recognition o f higher level o f service provided; * * * * *
only best is good enough
mentality o f service has c h a n g e d - - p e o p l e want * * * *
business to succeed
recognition harder to progress to h i g h e r level, * * * *
now on merit
c h a n g e is visible mostly at senior level; at l o w e r * *
level, same people, s a m e jobs
no c h a n g e in c o m m i t m e n t o f staff *
still a very conservative approach * *
less secrecy * * * *
investment m a n a g e r role seen as less important *
than relationship
people still s c e p t i c a l - - v a g u e l y suspicious * *
still a fear o f risk o f jobs * *
an acceptance that c h a n g e is the norm, stability a * * * *
thing o f the past
recognition must be continually m o v i n g forward, * *
cannot go b a c k
not same l o y a l t y - - s h i f t in attitude * *
i m p r o v e d awareness o f what higher officials are *
thinking and doing

investment, where reading around the topic is viewed
as an implicit part of the task.
Tables were compiled to illustrate the application
of the two types of knowledge. For instrumental
knowledge, behaviour was explored in terms of pro-
cedures and processes. Developmental knowledge
was explored in terms of areas relating to autonomy,
responsibility, accountability and personal develop-
ment. Table 2 provides an example of this analysis.
Finally, Table3 illustrates the analysis of the
important area of assimilation, showing evidence of
changed behaviours and attitudes as perceived by
the individuals.
5, A REVISEDCONCEPTUALMODELFORKNOWLEDGE
'nIANSFER
It was clear from the fieldwork that the implemen-
tation of the changes in technology and working prac-
tices had gone beyond that of application. The activi-
ties had been tried, monitored, subjected to feedback
control and in this way developed into the day-to-day
routines and processes of running the company. It was
clear that the more developmental areas of autonomy,
responsibility and personal development were begin-
ning to be talked about and considered but were not
yet found in evidence below senior manager level. It
was said by one of the senior managers that once
these activities have been tried, if they are to continue
they must be accepted. The core routines of the com-
pany must reflect the basic beliefs and attitudes of
the company. People do not act inconsistently; human
action follows reasonably and consistently from rele-
vant behavioural dispositions (Ajzen, 1988). It is
reasonable to expect, therefore, that once knowledge
has been applied, before it can be assimilated into the
core routines it must be found to be acceptable to the
individuals. Only then will it be assimilated. It is rec-
ognized, as a result of this study, that succcessful
implementation of technology change may occur
without evidence of assimilation. The meaning of the
assimilation stage is essentially descriptive of a cre-
ative process. It incorporates the process of cumulat-
ive learning. It implies the notion of change in indi-
viduals, groups and organizations which is manifested
as shifts or modification in cognition, attitude and
behaviour as a direct result of the use of acquired
knowledge. The fieldwork provides evidence that
assimilation, for most of the expressed changes in
company culture, had not yet progressed to this stage.
Yet the findings were that many of these changes
were in place, being carded out daily and expressed

30~ T ~ W. 16No.6
and espoused by individuals as being in existence. It
would seem that there is a fifth stage to be entered
into the model that exists between application and
assimilation: that of acceptance. It would appear from
the data that the changes have been accepted by the
individuals in the company and that for this type of
organization this is a necessary step before assimi-
lation. The knowledge transfer model has thus been
redrawn in Fig. 6, illustrating the place of acceptance.
Linking the fieldwork with the literature has indi-
cated that time is an implicit factor in the transfer of
knowledge from individual to organization. The core
routines of the organization are not readily responsive
to change. A process of learning by doing, learning
from history, monitoring, control, feedback must
occur before the knowledge becomes accepted by the
organization and it is only then that the process of
assimilation can take place. The five-stage model sug-
gests that most of the changes that have been 'suc-
cessfully' implemented in the company are at the
acceptance stage. Thus successful implementation
may mean acceptance, if not assimilation.
6. THEIMPUCAllONSOFSlIJDY
The results of the study question whether there is
one model for learning in organizations or whether,
depending on the typology of the organization, the
model will vary. The basic beliefs underpinning the
concept of the learning organization is that the organi-
zation stands to benefit from allowing all the individ-
uals within it to learn and thus transmit that knowl-
edge to the organization. This leaming must be
apposite; whilst this model for knowledge transfer has
indicated that all learning is to be encouraged, the
CHORERGOUT:;A
ETSIOOF
V/~...__~
as, milstion<.~" .___.__acceptance
Fig. 6.
transfer of knowledge must be of mutual benefit. This
model embodies the notion of mutual learning. The
first stages of knowledge acquisition and communi-
cation include diffusion throughout the company of
both organizational knowledge and faith. This serves
to reinforce the basic core beliefs, practice and code
or language of the organization in addition to provid-
ing a mechanism for provision of new knowledge
(Whyte, 1991; March, 1991). Using the feedback
mechanisms of behaviour influencing structure, the
organization is itself adapting to the beliefs of the
individuals within it. The process is continuous, it is
not conscious, it is part of the natural and spontaneous
process of belief and attitude formation that continues
throughout life; beliefs are reinforced or discarded
over time and from these attitudes develop (Ajzen,
1988). The organization undergoes a similar process.
Figure 7 illustrates the effect of organizational
learning on competitive performance, drawn from the
findings, as it applies to LPB. This process of learning
acts to affect competitive advantage; March (1991)
has shown that learning affects both the mean and
variance of competitive performance. Variability
affects relative position. To attain high position,
variability has a positive effect, whilst to prevent low
position variability has a detrimental effect. With the
model used here, variability equates with application
of developmental learning activities that are outside
the standard routines. Thus, to achieve primacy
amongst many competitors, developmental learning is
necessary. Learning processes such as those relating
to cultural diversity may offer increased performance
that offsets the variance associated with unfamiliarity.
Increasing familiarity reduces variance but retains
performance (March, 1991). This provokes the ques-
m tion
/
BA/~IER
true learning occurs
The five-stage model.
TedieqSoiiVel,16Ne.6
M. Gilbertand M. Cordey-Hayes
PRIMARILYSENIORLEVEL
(--
opportunity to acquire
and apply developmental
knowledge
organisational control
variability of performance
1 limi (7~
knowledge ) ~ )
transfe~
ALLOTHERLEVELS
reduced variability of
performance
limited
opportunity for creativity
Fig. 7. Effect of the company model for organizational learning on competitive performance.
tion of whether better than average performance can
be sustained without unconventional action, and
demands a fresh look at the concept of the learning
organization. LPB underwent a period of unconven-
tional learning, in the sense that this learning was out-
side the bounds of the prior knowledge that the
organization was using. The result was considerable
increase in competitive performance. The company
has now become familiar with, but not complacent
about, the new learning, and the variance in perform-
ance is being reduced. The creativity and diversity
came from only certain functions within the company;
it has not permeated through the organization (as con-
firmed by the fieldwork) and it remains confined to
these groups. These arguments suggest that the com-
pany has retained considerable control over behav-
iour, optimizing performance outside the specific
groups to increase performance whilst retaining vari-
ance in the specific groups; this contention is con-
firmed in Fig. 7. It offers a revised model for success-
ful implementation of technology that might be more
appropriate for a highly routinized organization. The
company cannot maintain its existence with variation
of performance since it is bound by legislation; it can-
not maintain competitive primacy without variation.
The model offers an organizational process that
encourages creativity at some levels and not at others.
It provides these groups with sufficient power to
implement change. The model is dependent therefore
on the ability and creativity of the specific groups;
it can be self-perpetuating only if there is sufficient
knowledge generation and learning within these
groups, and it largely ignores the knowledge creation
310 TedmvatJos
Vd.16Ne.6
increases mean
performancelevel
COMPETITIVE
ADVANTAGE
maintain/~~
performancelevel
and transfer of learning which is possible within the
substance of the company. The model does support
and explain how the company could achieve success-
ful implementation of new technology without assimi-
lation at all levels. Using this paradigm, the organiza-
tional culture still maintains and countenances a
patriarchal aspect where it is not necessary for any-
thing more than acceptance to be achieved for the
majority of the company provided assimilation has
occurred at senior level.
7. PARADIGMOFFEREDBYTHEFIELDWORK--A
DISCUSSION
It is not possible to know from the fieldwork
whether the paradigm offered in Fig. 7 will be sus-
tained, or indeed if it is sustainable in its present form.
It could be that this is an intermediate stage, a func-
tion of time, which allows the company to continue to
perform successfully during a period of more radical
change, leading to the model of a learning organiza-
tion with the characteristics identified earlier. It is not
known whether the feedback loop 'a' will develop
until there is equality of learning between more
groups within the company. What is quite clear is that
the conceptual model has provided a mechanism for
exploring and understanding the development and
transfer of knowledge within the company and has
identified that successful technology change has
occurred before the assimilation stage of the model.
The effect of achieving successful technology
change without achieving the final stage of the model
is that the process is incomplete. It is not creative
in the sense that it is sustainable through the natural
organizational processes. It requires constant driving
from the senior levels of the company, the hier-
archical roots of the organizational culture supporting
this style of management. The core routines that guide
the behaviour of the organization do not, at this stage,
support a knowledge transfer process throughout the
company. Thus, in the example of LPB, the senior
management are exhibiting behaviour and attitudes
consistent with learning and knowledge transfer but
it is not permissible to remove the routinization and
control from the less senior members of the company
(as illustrated in Fig. 7). The latter are still bound by
core routines that require direction and consistency of
application. The question must be asked whether an
organization of this type may ever become a totally
learning organization or whether the definition of a
learning organization might be differently articulated
for different types of organization.
The company studied is a successful company in
terms of competitive performance and implemen-
tation of new technology. The fieldwork has shown
that it does not slot simply into the proposed paradigm
for the learning organization. It has changed the pro-
cedures without changing the process. It is therefore
exhibiting a knowledge transfer process that employs
both high and low levels of diversity and creativity in
clearly defined functional areas. This balance (March,
1991) may contribute to the competitive success of
the company and its ability successfully to implement
change. It suggests a variation of the application of
the five-stage model that would describe different
paths on the model for different functions, and offers
the possibility of these paths being responsive to the
particular needs and stage of innovation of the organi-
zation. The relationship between the two paths of
competitive performance and successful implemen-
tation of new technology with different types of
organization is something that might be the subject
of further research.
The revised five-stage model presented in Fig. 6,
based as it is on practical fieldwork, cannot be con-
strued as idealized in the same way as its parent. The
model has recognized that technology change may be
successfully achieved by reaching acceptance rather
than assimilation. The activities demonstrate changing
behaviours within the organization. These are
embraced by the individuals and have their consent
but do not, at this stage, become accepted norms and
produce attitude change. Recognition of this stage
places a more practical aspect on the model, yet
retains the notion of true cultural change being a fac-
tor of time. Organizations may strive to introduce
knowledge transfer and encourage learning through-
out an organization, but change may be effected
before the total climate of learning is present. What
is not evident from this outcome is whether, when
assimilation, the final stage of the process of knowl-
edge transfer, is achieved, the process of technology
implementation will prove more successful or
whether most organizations will implement at the
acceptance stage. It is clear that competitive perform-
ance has been achieved at theacceptance stage.
Would this performance be increased should assimi-
lation occur, or does assimilation provide a creativity
that enables innovation whilst acceptance enables
increased performance to be achieved? These
relationships are interesting and may be explored in
a further study.
The model has provided a mechanism for exploring
the complex interactive processes that enable knowl-
edge transfer to occur in organizations. It has pro-
vided, as a by-product of this exploration, consider-
able if not comprehensive understanding of the
organization in the area under study. The use of the
model may be pursued as a framework for under-
standing organizational processes in all areas, not just
knowledge transfer. It may be used as a comparative
tool for differentiating between learning processes in
organizations with different organizational character-
istics.
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3t2 TedmovaSenVeL]6 Ne.6
Myrna Gilbert has recently completed
a PhD with the Innovation and Tech-
nologyAssessmentUnit (INTA)at Cran-
field University. She is continuing to
develop her interest in technology
change and knowledge transfer by
undertaking further research in associ-
ation with Cranfield University. She has ,.
tutored for the Open University since
1988 both in the Business School and in
the Technology Faculty whilst pursuing
her work as an independentconsultant in
the held of change management and organizational development.
She has experience as a manager in both the voluntary and com-
mercial sectors.
Martyn Cordey-Hayes is
Technology Policy at the
Ecotechnology Research
Director of Studies of the Ir
Technology Assessment Ui
Cranfield University. Apl
fessor of Transport Assessr
field in 1975, he was
Director of the Centre f
Studies and Dean of the Fa(
agement. He was the first ',
tist to be appointed to the
Institute of Applied Systems Analysis (nASA) in Vienna (1974-
75). He has also held senior research appointments at the Centre
for Environmental Studies, London (1968-74) and the Physics
Department at Birmingham University (1962-68), where he had
earlier obtained his PhD.