Thesis (PhD (Business Management))--University of Stellenbosch, 2010. / ENGLISH ABSTRACT: During the past 15 years knowledge management has emerged as a key new organisational practice with numerous organisations implementing processes aimed at facilitating knowledge creation, integration and sharing. With knowledge management positioned as a strategic imperative, numerous studies have explored its resource-base and management alternatives. These studies have played an important role in establishing knowledge management as a field of inquiry within the business sciences, but a number of weaknesses put knowledge management at risk of becoming another passing fad. Previous research tends to prescribe a tool, method or way of looking at knowledge while disregarding any differences in organisational context and displaying little attempt to differentiate organisations in a meaningful way. This assumed homogeneity constitutes a deficiency in knowledge management research. The knowledge-based view of the firm emphasises distinct knowledge as the key source of firm heterogeneity, and the role of the organisation as that of knowledge creation. This view largely ignores the personal and social nature of knowledge, and the role of the firm in providing the organisational context for creating, sharing and integrating knowledge. Knowledge management, as an embodiment of the knowledge-based view, thus also fails to explore organisational context as a possible source of competitive advantage, thereby limiting the potential of knowledge management initiatives. The central theme of the study is that the capacity to provide an institutional context for the creation, sharing and integration of knowledge, henceforth the knowledge-centric capability, rather than distinct knowledge, is the key strategic resource of the organisation. The objective of the study therefore is to understand how different knowledge-centric capabilities configure in different organisational contexts. The objective is achieved by addressing three research questions, namely what dimensions can be used to describe a knowledge-centric capability, what configurations of knowledge-centric capabilities emerge in different organisational contexts, and why do specific configurations of knowledge-centric capabilities emerge in specific organisational contexts? Considering the philosophical foundations of the study, namely knowledge as personal, social and context-specific and the organisation as an open, adaptive system, the study follows a social constructionist research philosophy. The study’s focus on identifying emerging patterns or configurations of knowledge-centric capabilities necessitates a configurational research approach. This allows the study to move beyond uncovering relationships that hold across all organisations, affording the opportunity to identify multi-dimensional constellations of conceptually distinct characteristics that commonly occur together. A sequential mixed-method research methodology is employed to address the research objective and research questions. First a conceptual framework is developed from the extant literature in order to identify the dimensions of a knowledge-centric capability. Next a theorydriven survey, based on the dimensions of the conceptual framework, is employed to obtain data from which the configurations of knowledge-centric capabilities are derived using cluster analysis. Finally, four case studies are presented to explain the emergence of the configurations within specific organisational contexts. This research is important for two main reasons. First, it addresses the identified shortcoming of existing research by providing a mechanism to explore an organisation’s knowledgecentric capability following a context-sensitive approach. Second, the research demonstrates that knowledge-centric capabilities can indeed be used to differentiate between organisations at a strategic level. / AFRIKAANSE OPSOMMING: Die afgelope 15 jaar het kennisbestuur as ‘n belangrike nuwe besigheidspraktyk ontwikkel, met talle ondernemings wat prosesse implementeer wat daarop gemik is om die skepping, integrasie en deel van kennis te fasiliteer. Met die posisionering van kennisbestuur as ‘n strategiese noodsaaklikheid, het verskeie studies die hulpbron-basis en bestuurs alternatiewe ondersoek. Hierdie studies het ‘n belangrike rol gespeel om kennisbestuur as ‘n navorsingsveld te vestig in die bestuurswetenskappe, maar ‘n aantal gebreke laat kennisbestuur die gevaar loop om net ‘n verbygaande gier te word. Bestaande navorsing neig om ‘n instrument, metodiek of manier voor te skryf om na kennis te kyk. Maar terselfdetyd word enige verskille in organisasies se konteks geïgnoreer en is daar min aanduiding van ‘n poging om organisasies op ‘n sinvolle wyse te onderskei. Hierdie veronderstelde homogeniteit vorm ‘n gebrek in kennisbestuur navorsing. Die kennis-perspektief van die organisasie beklemtoon unieke kennis as die belangrikste bron van firma heterogeniteit, en die rol van die organisasie as dié van kennis skepping. Hierdie uitkyk ignoreer grotendeels die persoonlike en sosiale aard van kennis en die rol van die firma in die voorsiening van ‘n organisasie konteks vir die skep, deel en integrasie van kennis. Kennisbestuur, as ‘n vergestalting van die kennis perspektief, faal dus ook om organisasie konteks to ondersoek as ‘n moontlike bron van mededingings voordeel. Sodoende word die potensiaal van kennisbestuur inisiatiewe beperk. Die uitganspunt van die studie is dat die kapasiteit om ‘n institusionele konteks te voorsien vir die skeppping, deel en integrasie van kennis, of te wel die kennis-sentriese vermoë, eerder as unieke kennis die kern strategiese helpbron van ‘n organisasie is. Die doel van die studie is dus om te verstaan hoe verskillende kennis-sentriese vermoëns konfigureer in verskillende organisasie kontekste. Die doel word behaal deur drie navorsingsvrae te adresseer, naamlik watter dimensies kan gebruik word om ‘n kennis-sentriese vermoë te beskryf, watter konfigurasies van kennis-sentriese vermoëns tree na vore in verskillende organisasie kontekste en waarom tree spesifieke konfigurasies van kennis-sentriese vermoëns na vore in spesifieke organisasie kontekste? Met inagneming van die filosofiese grondslag van die studie, naamlik kennis as persoonlik, sosiaal en konteks-spesifiek en die organisasie as ‘n oop, aanpasbare stelsel, volg die studie ‘n sosiaal konstruksionistiese navorsingsfilosofie. Die studie se fokus op die identifisering van patrone en konfigurasies van kennis-sentriese vermoëns, noodsaak ‘n konfigurasionele-benadering tot die navorsing. Dit laat die studie toe om verder te gaan as om bloot verwantskappe te identifiseer wat vir alle organisasies geld, en stel die studie in staat om multi-dimensionele konstellasies van konseptueel-unieke eienskappe wat tipies saam voor kom te identifiseer. ‘n Sekwensieële gemengde metode navorsingsmetodologie is gebruik om die navorsingsdoel en navorsingsvrae te addresseer. Eerstens is ‘n konseptuele raamwerk uit die bestaande literatuur ontwikkel om sodoende die dimensies van ‘n kennis-sentriese vermoë te identifiseer. Volgende is ‘n teorie-gedrewe vraelys, gebaseer op die dimensies van die konseptuele raamwerk, gebruik om die data te versamel waaruit die konfigurasies van kennissentriese vermoëns met die gebruik van trosanalise. Laastens is vier gevallestudies ontwikkel om die figurering van die konfigurasies binne spesifieke organisasie kontekste te verduidelik. Hierdie navorsing is belangrik vir twee bepaalde redes. Eerstens adresseer dit die geïdentifiseerde tekortkoming van bestaande navorsing deur ‘n meganisme te voorsien waarmee ‘n organisasie se kennis-sentriese vermoë ondersoek kan word, deur ‘n kontekssensitiewe benadering te volg. Tweedens demonstreer die navorsing dat kennis-sentriese vermoëns inderdaad gebruik kan word om op ‘n strategiese vlak tussen organisasies te onderskei.

Thesis (MBA (Business Management))--University of Stellenbosch, 2009. / ENGLISH ABSTRACT: Through the process of innovation, organisations create technological growth. Successful innovation creates customer value through new products and services, and it could give rise to new markets. Successful innovations contribute to better quality, higher productivity, lower costs and increased profits. One of the ultimate goals for implementing innovation is to achieve a competitive advantage that leads to outperforming competitors. Through the understanding of the innovation processes, organisations can bring predictability into their innovation efforts. This comes from understanding and managing the forces that influence the decisions made by managers. Because of globalisation and fierce competition Spescom DataVoice, a South African technology company, is finding it increasingly difficult to compete in an international market. It is against the background of Spescom DataVoice's need to increase its innovation productivity that this research was spawn. The ambitious goal of this study was to investigate what Spescom DataVoice can do to become sustainable, innovative and competitive in its market space. This research firstly captured the important themes and theories around the subject of innovation and how it relates to strategy. The literature study will try to look into all the important work, especially well-known research and its significance. Lastly, the research will apply the knowledge gained by discussing the research questions relating to Spescom DataVoice's particular situation. The research will discuss the innovation capabilities and perspectives that Spescom DataVoice should focus on; the environment that is needed for sustainable continuous innovation; and innovation strategies that Spescom DataVoice could employ to improve its innovation productivity. AFRIKAANSE OPSOMMING: Organisasies skep tegnologiese groei deur die proses van innovasie. Suksesvolle innovasie skep waarde vir kliënte deur nuwe produkte en dienste, wat weer kan aanleiding gee tot nuwe markte. Suksesvolle innovasie dra by tot beter kwaliteit, hoër produktiwiteit, laer koste en die verhoging van winste. Een van die uiteindelike doelwitte met die implementering van innovasie is om 'n kompeterende voordeel te bewerkstellig wat kan lei tot die oortreffing van kompeteerders. Deur die proses van innovasie beter te verstaan, bring organisasies meer stelligheid in hul pogings om te innoveer. Dit word meegebring deur die verstaan en bestuur van die kragte wat bestuurders se besluite beinvloed. As gevolg van globalisering en fel kompetisie vind Spescom DataVoice, 'n Suid-Afrikaanse tegnologie-maatskappy, dit al hoe moeiliker om in 'n internasionale mark mee te ding. Dit is teen hierdie agtergrond van Spescom DataVoice se behoefte, om hul produktiwiteit ten opsigte van innovasie te verhoog, dat hierdie navorsingstuk die lig gesien het. Die ambisieuse doelwit van hierdie studie was om te ondersoek wat Spescom DataVoice kan doen om volhoubaar, innoverend en kompeterend in sy mark mee te ding. Eerstens bekyk hierdie studie na die belangrike temas en teorieë rondom die onderwerp van innovasie en hoe dit verband hou met strategie. Die literatuurstudie poog om na al die belangrike werke in die vakgebied te kyk, veral die navorsingsresultate en bydrae wat dit opgelewer het. Verder sal die kennis wat opgedoen is toegepas word deur navorsingsvrae te bespreek wat gerig is op Spescom DataVoice se spesifieke situasie. Die navorsingstudie sal dan bespreek op watter innovasie vermoëns en perspektiewe Spescom DataVoice behoort te fokus; die omgewing wat nodig is vir volhoubare kontinue innovasie; en watter innovasie strategieë Spescom DataVoice kan aanwend om sy innovasie produktiwiteit te verhoog.

This thesis sets out to explore the concept of dynamic capability which centers on the firm’s ability to sustain competitive advantage in dynamic environments. Drawing on a review of the literature, a framework of general factors conducive to a dynamic capability – absorptive capability, adaptive capability and innovative capability – is identified. Since the framework has not been explored empirically, this thesis takes the first step in this pursuit. The phenomenon is investigated in a case study comprised of three firms in the information and communication industry. Data is collected from interviews with representatives of the firms and from the last annual reports of the firms. Drawing on the analysis of the data, it is suggested that the specific operationalization of the factors should be refined. Nonetheless, the study suggests that the framework comprises a straightforward and efficient means of analysing a firm’s ability to sustain competitive advantage.

Purpose: The purpose of this thesis is to address the, by scholars and managers alike, expressed need of development in the project portfolio selection. The research will aim to investigate how the selection of innovation projects portfolios could change if flexibility, and with it uncertainty, were added to the project portfolio selection. The aim is further to investigate how options value can be incorporated as additional value to a portfolio selection decision, with the goal to choose projects that maximize the goal function of the firm. Method: This thesis takes a qualitative approach as such approach is favourable when studying social science. The empirical research is carried out at a large international company conducting in an extensive amount of R&D as well working with innovation projects. The data is collected by unstructured and semi structured interviews with management at the company subjected to the study. Results: The results show, that by adapting the real options framework to a static way of selecting projects, the incorporation of flexibility to the selection process can add economic value by accounting for options value and handle uncertainty. The real options framework will substantiate a dynamic approach to the selection process of innovation projects, as flexibility is changing the selection process from individual project selection to the selection of portfolios. / Syfte: Syftet med följande uppsats är belysa och utveckla det, av forskare och chefer, uttryckta behov av utveckling av projektportföljval. Uppsatsen syftar till att undersöka hur valet av innovationsprojekt genom portföljvalsmodeller kan förändras om flexibilitet och osäkerhet adderas till beslutsprocessen. Syftet är vidare att undersöka hur ytterligare värde kan inkorporeras i ett beslut, med målet att välja den portfölj som maximerar företagets målfunktion. Metod: Denna uppsats tar en kvalitativ metodansats då ett sådant tillvägagångssätt är fördelaktigt i studier av samhällsvetenskap. Den empiriska undersökningen har bedrivits på ett stort internationellt företag vilket deltar i ett omfattande FoU arbete, samt i stor skala arbetar med innovationsprojekt. Data har samlats in genom ostrukturerade samt semistrukturerade intervjuer med ledningen på företaget. Slutsatser: Resultaten visar att genom att inkorporera reella optioner, i en statisk beslutsprocess, så kan ett bättre beslutsunderlag genereras genom inkluderandet av osäkerhet och värdet av optioner. Ett sådant beslutsunderlag genereras genom att real options adderar flexibilitet till urvalsprocessen. Genom att inkorporera flexibilitet kommer en statisk metod att välja individuella projekt på, skifta till fördel för en dynamisk metod att välja portföljer.

無 / Global investment in process-management technology has vastly increased for the purpose of integrating both external and internal processes with aligned resources to adapt to the changing environment of the service-based economy. The management of business processes in the service-based economy requires dynamic capabilities in order to continuously integrate knowledge, coordinate activities, learn from experience, and reinvent services to acquire and retain customers. A growing pattern within the characteristics of path dependency has been observed in the development of process management capabilities, which evolved from awareness to optimization. This paper reports the findings of a study of the development of process-management capabilities in six companies across two different industries. By tracking the growth of its process-management capabilities, three points are made: (1) organizations develop their business process-management capabilities through five stages, which are awareness, repetition, standardization, management, and optimization; (2) each maturity level is characterized by different business focuses, process designs, knowledge management, measurement methods, and management attitudes; and (3) the development path is characterized by ups and downs and is influenced by both external and internal changes.

The problem of achieving and sustaining growth is vital for companies in any country market, but it is even more crucial for companies in an emerging market, such as Russia. Meanwhile, some companies in the Russian market succeed not only in growing but also in implementing several socially oriented activities and projects in their strategies. Thus, we identify what are the possible obstacles to growth in the industrial and internal firm environment like, and analyze how companies overcome them. Besides that, we aim to study the forms of corporate social responsibility activity, that Russian companies are engaged in, and how consistent this activity is with the companies' strategies and goals. We have conducted a qualitative case study of five Russian companies, which represent different segments of IT industry. The semi-structured interviews with the managers from the company have been the main sources of the empirical data, however some additional secondary data has also been used. Further on, the gathered empirical data served the materiel for the analysis of the dynamic capabilities the companies possess to overcome the growth challenges they encounter, what strategic innovation processes they implement in their strategies and if there are some socially oriented activities, including particular projects, that the companies are engaged in. If a company practices a certain socially oriented activity then the consistency of this activity with the company's strategy and goals has been analyzed. As social activities are seen as a prerequisite for sustainable business we also analyze if the companies bring natural value to the society and the environment. The results show that the companies with rather high growth figures may lack certain dynamic capabilities, which are or will be needed to overcome a particular growth challenge. Four of the five companies prove to act proactively, thus they have the prerequisite for strategic innovations. These companies also implemented different types of strategic innovation, although not the radical one.For those companies, that are engaged in socially oriented activities, these activities are seen as consistent with the companies' strategies.Meanwhile, only one company implements environmental-friendly solutions, thus it comes closest to running sustainable business. The general provided recommendations for the companies are to develop lacking dynamic capabilities to overcome growth challenges, to act proactively in order to be ready to implement strategic innovations and develop and keep their social activities consistent with their strategies.

This research explores the management problem of how individuals can influence the development of a strategic orientation within a firm. A market orientation strategy builds upon three dimensions: the organisation-wide acquisition, dissemination, and co-ordination of market intelligence (Jaworski & Kohli, 1993). Such management of market-based information requires a set of distinct dynamic capabilities or routines. Empirical research about the association between market orientation and performance shows that firms that develop these capabilities improve both their organisational and financial performance (Gray, Buchanan, & Mallon, 2003). This research attempts to understand the circumstances that prompt employees in all areas of an organisation to become accountable for the implementation of a market-oriented strategy. To date, studies have inadequately measured individual contribution to the market orientation of a firm and do not understand each employee's personal responsibility and willingness to act in a market-oriented way. In response, this thesis developed a dynamic, multi-dimensional scale of individual market-oriented behaviour. First-stage research used focus groups and extant literature to construct a measure of individual market orientation. Then, a cross-section of financial services employees completed a web-based survey measuring individual market-oriented behaviour and individual and interpersonal antecedents. Confirmatory factor analysis confirmed the presence of a single latent construct with three dimensions. Study results identified a strong and significant relationship between the performance of market-oriented behaviours and the perception of a high-quality fulfilled psychological contract with the employer. Employees who were agile learners and frequently in contact with customers were also more likely to practice market-oriented behaviours.

This thesis examines the rising phenomenon of the internationalisation of Chinese firms, and aims to shed new light on our understanding of the emergence of firms from emerging economies in the global market. It consists of two parts: the country level study and the firm level. The former identifies the domestic and locational determinants of Chinese outward foreign direct investment (OFDI), while the latter examines the influence of dynamic capabilities and institutions on the post-internationalisation performance of Chinese firms, with a focus on state-owned enterprises (SOEs). To explore the domestic and locational determinants of Chinese OFDI, the thesis integrates network theory with the traditional explanations of OFDI, the investment development path and the eclectic paradigm. By doing so, a new factor, human mobility, is identified as one of the important domestic and locational determinants of Chinese OFDI. Drawing upon a time series data analysis for the period 1979-2007, this study confirms that Chinese OFDI is driven by its domestic economic development, human mobility and knowledge development and accumulation, and it has a substitute relationship with exports. By examining Chinese OFDI flows to 13 OECD countries over the period 1999-2007, it is shown that human mobility, the strategic assets of the host country, foreign direct investment to China and cultural distance have a positive impact on the locational choice of Chinese OFDI to OECD countries. To investigate the influence of dynamic capabilities and institutions on the post-internationalisation performance of Chinese firms, this study integrates the dynamic capability framework and the institution-based view, and embeds the analysis in a multi-perspective conceptual framework. It draws on four case studies of Chinese SOEs. The analysis shows the importance of internal dynamic capabilities in achieving overseas success when dealing with changing environments. The managerial mindset has a moderate effect on the impact of dynamic capabilities on post-internationalisation performance. The case analysis also shows how the external institutional environment of both host and home countries influence the performance of Chinese SOEs. ii Support from both host and home country governments, unsurprisingly, has a positive influence on performance. However, too much intervention from the home country government imposes constraints on the firms and reduces their willingness to commit to internationalisation. This thesis makes a number of contributions to the existing literature. First, it provides a better understanding of the overall picture of Chinese OFDI from the macro perspective. The findings also contribute to our understanding of the rise of OFDI from emerging economies in general and from China in particular. Second, a new factor, human mobility, is identified and proved to be significant in determining Chinese OFDI. In this era of globalisation, human mobility has become the driving force of OFDI from emerging economies. Third, a first step is taken towards exploring the influence of both internal and external factors on the post-internationalisation performance of Chinese firms. In order to achieve overseas success, not only do Chinese firms need to improve their internal dynamic capabilities, but also attention needs to be paid to the external institutional environment, which has a significant impact on the performance of Chinese firms pursuing overseas success.

This quantitative research study focuses on the capabilities of ICT tools used by virtualteams and seeks to find out what, if any, correlation between the ICT tools capabilitiesand challenges that virtual teams face exist. The study addresses four prominent virtualteam challenges: forming trust and relationships, information overload, communicationbreakdown, lack of team synergy and cohesion. It analyses ICT tools and establishhypothesis using MST theory and the existing research in this field. The data analysis isconducted using Spearman’s Rho correlation. The findings show that the correlationbetween ICT tools usage and the challenges that virtual teams face are not statisticallysignificant to establish a link between virtual team challenges and ICT tools usage. Thiscould mean that a significantly larger sample is required to establish the link betweenthese two variables. It could also mean that the virtual team challenges need to be reevaluatedas the collected data suggests that the discussed challenges are rarelyexperienced by virtual teams. Therefore, further studies are needed in order to establishthe correlation between the virtual team challenges and ICT tools usage.

“Knowledge is the only treasure you can give entirely without running short of it (African proverb cited in IFAD, 2007).” And it has been largely recognised by organisations that knowledge is a resource that they can leverage on. As Bryan (2004) mentioned, the proprietary knowledge that resides in the minds of a company’s top professionals are a source of Competitive Advantage. Therefore, organisations that leverage on Knowledge Management to promote a Knowledge Management Strategy can achieve Competitive Advantage in a world of rapid change and growth where only organisations who keep on learning and adapting will survive. Therefore, this thesis work aims to answer the following research question: “How does leveraging on Knowledge Management promotes the delivery of Knowledge Management Strategy to achieve Competitive Advantage through the Dynamic Capabilities View?” The purpose of this research is to understand more about the practical path which aims to evolve into a dynamic path for organisations to leverage on Knowledge Management (KM) in order that its strategy consecution delivers Competitive Advantage. The authors explore the subject matter by building from existing literature on the main theoretical areas encountered, and then design the research and its approach from the research question. The research followed a qualitative approach and method by utilising semi-structured interviews done to 7 international development organisations, where 13 respondents contributed with their experiences and insights from their involvement in KM in their organisations. Moreover, secondary data was used to complement, support, compare and contrast the findings of the empirical research as the authors used qualitative documents related to the topic published by the organisations. As a result, all primary and secondary data were analysed in an inter-subjective interpretative way deriving from the theoretical framework in order to answer the research question. The research revealed that the identified gap in literature between Knowledge Management and Knowledge Management Strategy is also existing in practice. It was identified that it depends on the maturity of KM in the organisation and/or the organisation’ maturity itself. But is not only restricted to that, the success of a KMS is directly linked to how the organisation articulates KM, and the importance given to it is based on the sense and utilisation of the dynamic nature of KM. Thus, it can turn its organisational capabilities into Dynamic Capabilities and achieve a Competitive Advantage, this is fundamental in international development organisations in the nonprofit sector, which is increasingly striving for resources where every organisation aims to be “the partner of choice.”