Wharton Chapter 15

Managing Dynamic Knowledge Networks

Overall I had some major problems with some of the topics in this chapter. The author seemed to contradict herself, and some of the chapter contradicted concepts in chapter 11. In addition, it seems as if the author at times is using the terms knowledge networks and strategic alliances interchangeably, and other times refers to knowledge networks as something fairly different.

The whole flight simulator example doesn't make sense in terms of knowledge networks. The FFS, a much more expensive and realistic simulator was beating out the featureless FTD system until the early 1980s when the FTD began gaining ground. I fail to see how the author's definition of knowledge networks had anything to do with this. Due to the recession in the early 1980s, the possibility exists that many firms decided to purchase the cheaper alternative for flight simulator training program. From the information given, the argument that some kind of knowledge network played a part in the growth of FTD is very weak and not convincing.

The chapter should have been split into two parts. One referencing deliberate, controllable knowledge networks and another about incidental, uncontrolled knowledge networks.

The deliberate, controllable knowledge networks would include industry organizations that bring together representatives from several firms within an industry to discuss relevant topics and technologies in the industry. The example of the telecommunications industry is a good one. However, it doesn't seem likely that a firm absent from such industry events would lose competitive advantage due to not being a part of those particular information sharing sessions. The information being discussed is available by other mediums such as trade magazines and other technology publications. It is also the job of some individuals at these firms to stay abreast of upcoming and relevant technologies, so to suggest that this information can be only available through knowledge networks is incorrect in my opinion.

The uncontrolled knowledge networks are even more confusing. The author is suggesting that there is a significant knowledge network among engineers at competing firms getting together in social interactions outside of work. While this is likely and something I myself have experienced, it is pretty rare that information being shared is substantial enough to change the direction or competitive advantage of a firm within the industry. Is the author suggesting that engineers and other people in higher positions within competing firms are sharing domain secrets? That is the only type of substantial information that would warrant any attention to these knowledge networks, and yet there is likely little data available to show this type of information sharing is taking place.

I also strongly disagree with the assertion that knowledge networks can affect the fate of firms. There are dozens or hundreds of variables that affect the success of a firm, with knowledge networks being only one of many that individually have little effect on their own. While the author was surprised at how little attention managers gave the concept of knowledge networks, I certainly was not. It is not a tangible concept and frankly after reading the chapter twice, I am not convinced that knowledge networks, at least in terms that the author uses, is really something people in business need to be concerned with or make an effort to pursue. I believe they are a by-product of the interaction between firms via trade shows, industry, events, and news and trade articles.

I think the concept of knowledge networks could be more easily applied to departments within an organization and used in conjunction with knowledge management systems.