Abstract
Despite the claim of more and more scholars that there is a need to align knowledge strategies with competitive strategies, little research allows for more precise conceptualizations concerning this problem of inter-level strategic fit, and few have attempted an empirical investigation. This is especially true in the specific context of small firms (SFs), despite the fact, that their knowledge-based resources are more important than their property-based resources. This study aims to investigate, through a quali-quantitative analysis carried out on a sample of SFs in northeast Italy, the alignment between knowledge strategies and competitive strategies. We have identified two types of competitive strategies pursued by SFs, i.e. human resource-based (HR-based) and product and customer service quality-based (PCSQ-based). We have also identified two types of internal knowledge strategy, i.e. exploitation strategy of internal knowledge, and exploration strategy of internal knowledge, as well as two types of external knowledge strategy, i.e. exploitation strategy of external knowledge, and exploration strategy of external knowledge. Our findings reveal that SFs pursuing HR-based competitive strategies tend to adopt exploitation strategies of both internal and external knowledge, while firms pursuing PCSQ-based competitive strategies tend to adopt exploration strategies of both internal and external knowledge.
Highlights
According to the knowledge-based view of the firm, the primary function of an economic organization is the development and deployment of knowledge (Grant 1996; Nonaka 1994; Spender 1996)
Since small firms (SFs) that focus on ideas of rational searching tend to create competitive advantage, through iterative, cumulative and cooperative relationships with external knowledge sources, that are not necessarily in close geographical, organizational and technological proximity (Morgan et al 1998), we argue that the external learning processes that characterize SFs adopting product and customer service quality (PCSQ)-based competitive strategies are, based on “strong” interfirm linkages that involve substantial knowledge-sharing, and the combination of complementary resources: “The emphasis is on increasing the scope and depth of knowledge by refining what is known and by bringing in additional expertise relevant for knowledge creation
Many firms identify relationship with potential (48%) and current (34%) customers, fixture and fittings (34%), and organizational procedures (31%) as sources of competitive advantage. These firms emphasize a resource-based view, adopting a competitive strategy focused on human resources
Summary
According to the knowledge-based view of the firm, the primary function of an economic organization is the development and deployment of knowledge (Grant 1996; Nonaka 1994; Spender 1996). Aligning knowledge strategy and competitive strategy in small firms larly on the distinction between tacit and explicit knowledge, and on the relationship between individual and social knowledge (Nonaka 1994; Spender 1996). Knowledge management was initially perceived as a problem concerned with the diffusion of information technology, useful for making individual knowledge explicit, and/or related with the important role that social interactions play in the sharing of tacit knowledge. Knowledge management scholars have elaborated on the idea that the knowledge management and knowledge strategy must be driven properly by the firm’s competitive strategy (e.g. Whitehill 1997; Drew 1999; Zack 1999)
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