Knowledge Sharing, Control Mechanisms and Intellectual Liabilities in knowledge‑intensive firms pp117-127
Abstract: Intellectual capital (IC) and knowledge sharing (KS) are key elements for fostering firm value, especially in knowledge‑intensive firms. Management Control Systems (MCSs) have been recognized as key knowledge integrators. Recently, this as sumption has been called into question as there may exist negative and destructive effects in both IC and KS fostered by a misuse of MCSs. Through a case study of 'Engineering Ltd.", this paper examines the 'dark side' issues associated by improperly impl ementing knowledge sharing and by imposing rules and constraints on behavior. The subject of our study, Engineering Ltd. , is a consultancy company with 10,000 employees. The case study is used to scrutinize the major risks of knowledge sharing and to i ntroduce possible solutions.
Keywords: Keywords knowledge sharing, control mechanisms, intellectual liabilities, knowledge-intensive firms
Supporting creativity through knowledge integration during the creative processes. A management control system perspective pp258-267
Organizations require an intensive knowledge integration mechanism that supports creativity within all the phases of its process in order to analyze, understand, select, and integrate ideas into a business model. Management Control Systems, as a part of t he structural capital, can be utilized as knowledge integration mechanisms to provide: i) a dialog among internal or external actors of the creative process; ii) a knowledge repository for data and other information required in the selecting process; ii i) representation of the new ideas into a business model. Using a multi‑method case study, this article analyzes the role of knowledge integration played by Management Control Systems (MCS). Within the perspective of the Levers of Control (Simons, 199 5), MCS are recognized as the sum of belief, boundary, diagnostic and interactive systems that could be used to manage the creative process. We apply the Appreciative Inquiry model of creativity (Cooperrider, Srivastva, 1987) which recognizes four step s: Discovery, Dream, Design, and Destiny. Creativity is then classified based on the problem's characteristic using Unsworth's model (2001) which separates closed and open problems. Results show that in the early phases of the creativity process problem s are more structured and are faced using diagnostic and boundary tools. In the design phase, a dynamic tension between interactive and diagnostic systems is always preferred. The final phase (Destiny) requires diagnostic approaches in all cases. On th is foundation, the paper aims to contribute to the literature on innovation and intangible assets. It is our opinion that the results could also be used by managers and entrepreneurs involved in the creative process in order to improve a companies abilit y to face change.