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Through observations (interviews), we seek to classify our case companies according to certain identified characteristics. Observed types are not understood as value judgments (ie, perfect, ultimate or in any way better); rather, we derive the types based on common patterns of knowledge-related features among case companies and link these to different constellations of organisational factors.
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Traditional MNC refers to divisional or matrix organisational structures with centralised customisation of information dictated by headquarters. The objective is typically to achieve scale economies by transferring know-how to new segments/markets.
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Whereas simple knowledge is captured with little information, more factual information is required to capture complex knowledge accurately. Explicit knowledge can be communicated relatively easily, as opposed to tacit knowledge, which is often highly personal in nature and difficult to codify. Independent knowledge can be described by itself, whereas systemic knowledge needs to be described in relation to a specific context
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Thus, the power-wielding asset becomes the dynamic capability continuously to produce and transfer new knowledge, rather than possession of the knowledge per se. For further discussion of the determinants of subsidiary power in a MNC network, see, for example
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Thus, the power-wielding asset becomes the dynamic capability continuously to produce and transfer new knowledge, rather than possession of the knowledge per se. For further discussion of the determinants of subsidiary power in a MNC network, see, for example,. Forsgren M., Pedersen T., and Foss N.J. Accounting for the strengths of MNC subsidiaries: The case of foreign-owned firms in Denmark. International Business Review 8 (1999) 181-196
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According to population ecology, speciation must begin rapidly and in populations that are small and isolated enough for the change to take hold, in order to avoid being diluted by the parent population. In similar fashion, ShareNet started in the ICN division and received only limited support from HQ. As the KMS proved successful and valuable, it was expanded company-wide.
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Information & Communication and Automation & Control remain the two main business areas for Siemens, receiving the majority of investments, contributing the most to the revenue stream and employing the most people. Thus, the downturn in the telecommunication industry during the beginning of the millennium resulted in corporate strategic changes throughout the entire Siemens organisation.
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