Knowledge integration between technical change and strategy making

Stefano Brusoni,Lorenzo Cassi,Simge Tuna

doi:10.1007/s00191-020-00706-3

Abstract

This paper looks at the different strategies that two of the tire industry’s most prominent players, Pirelli and Michelin, deployed to exploit a radical process innovation: robotized, modular manufacturing. This paper argues that Pirelli, originally the technological follower, could develop a more nuanced, complex and ultimately successful strategy thanks to its superior knowledge integration capabilities. Empirically, we examine the structural characteristics and evolution of inventors’ networks in the two companies to reveal their knowledge integration capabilities. We apply the cohesive blocking method developed by White and Harary (Sociol Methodol 31(1):305–359, 2001) to argue that Pirelli, while relying on comparable skills in terms of technical fields, leveraged a more connected, cohesive and structured skills than Michelin. On this basis, it could develop and deploy a more complex strategy that better fit the characteristics of the new process technology. Pirelli’s knowledge network structure enhanced its knowledge integration capabilities and allowed for a more efficient fit between technology and strategy.

Highlights

The analysis of technological variety and behavioral diversity among economic agents was a foundational element of Luigi Orsenigo’s approach to the economic analysis of Disclaimer: The views and opinions expressed here do not reflect the views of Zurich Insurance Group.The idea of knowledge integration is central to this paper
We find that Michelin lacked ‘knowledge integration’ capabilities, as shown by the low level of connectivity and cohesion in its network
If knowledge integration is about both combining, sharing and relating to other knowledge bases, we argue that individuals need both brokerage positions and a cohesive network at different phases of innovation

Summary

Introduction

The analysis of technological variety and behavioral diversity among economic agents was a foundational element of Luigi Orsenigo’s approach to the economic analysis of Disclaimer: The views and opinions expressed here do not reflect the views of Zurich Insurance Group. The idea of knowledge integration is central to this paper. While this idea was not central to Luigi’s work, it was part of many conversations with him, started at a time when one of us (the oldest of the trio) was working on his bachelor thesis under his supervision. These conversations were like Gigi: clever, funny, complex, lighthearted and yet profound. The breadth and depth of Gigi’s thinking took time to reveal itself

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