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Knowledge Creation Approaches for Success Through the Phases of Succession

CHAPTER V IMPLICATIONS

5.1 Knowledge Creation Approaches for Success Through the Phases of Succession

CHAPTER V

(Chapter 4), the knowledge creation approaches identified do not always align directly with a single dimension of knowledge creation as specified by the SECI model.

As this table shows, the knowledge creation approaches are used much more extensively in the early stages of preparation for succession (Phases 1 and 2). During Phase 1 (Pre-Succession), there is a balance between tacit and explicit knowledge, with any of the knowledge approaches oriented toward gathering explicit knowledge and either converting it to tacit knowledge or to other explicit knowledge. This phase is also notable for its emphasis on external preparation, including education, apprenticeships and work experience (either inside or outside the firm). During this phase, there are some differences between firm sizes. Large firms use internal training, which is not used by smaller firms. In firms of all sizes, at this stage the mentorship, supervising and coaching activities are with the successor as a recipient, rather than provider, of knowledge.

In Phase 2 (Transition), the Socialization and Internalization process clusters remain dominant, but with more Externalization and Combination activities taking place. The activities are largely the same in firms of all sizes, but there are a few differences. Particularly, small firms do not use observation, internal training, or studying manuals and procedures, while medium and large firms do. As discussed in Chapter 4, this difference is due to lack of resources and formalization in small firms, which limited the usefulness of these knowledge approaches.

By Phase 3 (succession), there are relatively few active knowledge creation approaches in firms of all sizes. In small firms, teamwork and coaching are still part of the knowledge creation process, but these fall away in larger firms. Furthermore, the coaching and supervising roles have changed at this point, with successors transitioning to providing knowledge within the roles rather than receiving knowledge. Thus, by this point knowledge creation is balanced between explicit and tacit knowledge, and the successor is playing a leading role, but their acquisition of explicit knowledge and most implicit knowledge has been completed.

Table 5.1 Summary of knowledge creation approaches through the stages Creation

Process

Socialization Externalization Combination Internalization

Knowledge Transformation

Tacit to Tacit Tacit to Explicit Explicit to Explicit

Explicit to Tacit

Phase 1: Pre-Succession Small Firms  Early

involvement

 Mentoring

 Teamwork

 Coaching

 Mentoring

 Supervising

 Coaching

 Apprenticeship  Early involvement

 Mentoring

 Apprenticeship

 Supervising

 Coaching Medium Firms  Early

involvement

 Education

 Working experience

 Mentoring

 Teamwork

 Coaching

 Coaching  Education

 Working experience

 Early involvement

 Education

 Working experience

 Apprenticeship

 Coaching Large Firms  Early

Involvement

 Education

 Working Experience

 Mentoring

 Coaching

 Mentoring

 Internal Training

 Education

 Working experience

 Early Involvement

 Education

 Working Experience

 Mentoring

 Internal Training

 Supervising Phase 2: Transition

Small Firms  Mentoring

 Project work and problem solving

 OJT

 Teamwork

 Stakeholder involvement

 Coaching

 Mentoring

 Project work and problem solving

 OJT

 Supervising

 Coaching

 Project work and problem solving

 Strategic planning

 Mentoring

 Project work and problem solving

 OJT

 Supervising

 Coaching

Table 5.1 Summary of knowledge creation approaches through the stages (cont.) Creation

Process

Socialization Externalization Combination Internalization

Knowledge Transformation

Tacit to Tacit Tacit to Explicit Explicit to Explicit

Explicit to Tacit

Phase 2: Transition Medium Firms  Observation

 Mentoring

 OJT

 Teamwork

 Stakeholder involvement

 Coaching

 Mentoring

 Internal training

 OJT

 Supervising

 Coaching

 Observation

 Mentoring

 Internal training

 OJT

 Supervising

 Coaching

Large Firms  Observation

 Mentoring

 Project work and problem solving

 OJT

 Teamwork

 Stakeholder involvement

 Coaching

 Mentoring

 Project work and problem solving

 Internal training

 OJT

 Supervising

 Coaching

 Studying manuals and procedures

 Project work and problem solving

 Observation

 Mentoring

 Studying manuals and procedures

 Project work and problem solving

 Internal training

 OJT

 Supervising

 Coaching Phase 3: Succession

Small Firms  Mentoring

 Teamwork

 Stakeholder Involvement

 Coaching

 Mentoring

 Supervising

 Coaching

 Mentoring

 Supervising

 Coaching

Medium Firms  Mentoring

 Stakeholder involvement

 Mentoring

 Supervising

 Strategic planning

 Mentoring

 Supervising Large Firms  Mentoring  Supervising  Strategic

Planning

 Supervising

Following the summary above, Venn diagrams of the knowledge approaches during the three phases were prepared. These diagrams represent what is

shared between firms of different sizes, as well as what is different. In Phase 1 (Figure 5.1), early involvement, mentoring and coaching are common to all firms. However, there are several processes used in small and medium firms that are not used in large firms. Internal training is used only in large firms, while education and working experience are only identified as important in medium and large firms. In Phase 2 (Figure 5.2) all firms use mentoring, OJT, teamwork, stakeholder involvement, supervising, and coaching. Medium and large firms use project work and problem solving, while large firms use observation and studying manuals and procedures. Small firms use strategic planning, but medium and large firms do not. Finally, in Phase 3 (Figure 5.3), all firms use processes of mentoring and supervising. Small firms continue to use teamwork, while small and medium firms use stakeholder involvement and coaching, but these have ceased as a dominant knowledge approach in large firms. These diagrams allow for identification of core practices between firms, as well as some practices that may be used depending on the firm size.

Figure 5.1 Knowledge creation approaches during Phase 1 (Pre-Succession)

Figure 5.2 Knowledge creation approaches during Phase 2 (Transition)

Figure 5.3 Knowledge creation approaches during Phase 3 (Succession)