Paper HC 2: market orientation and the learning organization
Knowledge development is the basis for competitive advantage. The ability to learn faster than
competitors may be the only source of competitive advantage. Behavior may not change, but may be
pursued more confidently.
Definitions:
- Organizational learning: development of knowledge that has the potential to influence
behavior. Learning can facilitate behavior change that leads to improved performance.
- Adaptive learning (single-loop): basic form, occurs within the recognized constraints (learning
boundary)
- Generative learning (double-loop): questioning long-held assumptions. Focusing on
interrelationships and dynamic processes of change rather than linear cause-effect chains.
- Culture: deeply rooted set of values and beliefs that provide norms for behavior
- Climate: how the organization operationalizes its culture.
- Market orientation: highest priority on the profitable creation and maintenance of superior
customer value. Provides norms for behavior. The scope of market orientation must include
all stakeholder contingencies that has potential for the creation of superior customer value
or threats to competitive advantage. The concept of market must be broadened to
encompass all sources of relevant knowledge and ideas.
- Entrepreneurship: valuing traits that are associated with knowledge acquisition through
exploration, challenging assumptions to create generative learning and rapid development of
new behaviors to leverage learning. Entrepreneurial values support the creation of new
businesses and the renewal or revival of ongoing businesses. The entrepreneur must use the
profit from earlier innovations.
- Facilitative leadership: encourage individuals, motivate people to do more than what was
expected. Developing people around them.
- Organic structure: decentralized, with ambiguous job responsibilities. Members recognize
their interdependence, are willing to cooperate and share information. Decisions are made
informally and flexible. Downside is personal frustration and low involvement.
- Decentralized strategic planning: top managers provide general guidance. Planning is guided
by a stable vision and operationalized through flexible, responsiveness overlay of task-
oriented teams.
Rijtjes:
Organizations need to focus on:
- Continuously collecting information
- Create superior customer value
Processes of organizational learning:
- Information acquisition
o Exploration: learning from externally focused experience
o Exploitation: learning from internally focused experience.
- Information dissemination
- Shared interpretation
Three ways that learning can influence organizational behavior
1. Action oriented: direct application to solve a problem
2. Knowledge enhancing: influences managerial perspectives but is less likely to change
behavior directly
3. Affective use: increases satisfaction or decreases dissonance with a change that already has
been made.
, Organizations have a foundation for sustainable competitive advantage when they possess
skills/resources that:
- Provide superior value
- Are difficult to imitate
- Are capable of multiple applications.
A learning culture is beneficial for companies because:
- Looking forward reduces the frequency and magnitude of major shocks
- Close relationships with stakeholders lead to an cooperative attitude when something
unexpected occurs.
- Ability to quickly reallocate resources in times of opportunities or threats.
Day states: a superiority to learn is
- Critical acceleration to market- and technological changes
- A competitive advantage complexity, usefulness, and difficulty to imitate.
Models:
Conclusion and implications:
Learning organizations are guided by a shared vision, focusing on creating superior customer value,
continuously acquire and disseminate information and reach shared interpretation to exploit
opportunities and defuse problems. The learning architecture provides superior customer value, is
complex to imitate, and difficult to develop and appropriate in a turbulent market. Managers must
lead by involving all fractions in learning oriented activities and demonstrate the benefits that are the
results of those activities.
Paper HC2: dangerous biases can creep into every strategic choice. Here’s how to find them before
they lead you astray.
Two modes of thinking:
- Intuitive (system 1): not consciously focusing, but just doing it
- Contract reflective (system 2): slow, effortful and deliberate
Questions that decisionmakers should ask themselves
1. Self-interest biases: decisionmakers need to asses not whether there is a risk of motivated
error but whether it is significant review the proposal with extra care (for overoptimism).
2. Affect heuristic: when we like something, we tend to minimize its risks and maximize its
benefits rigorously apply all the quality controls of the checklists
3. Groupthink: were there dissenting opinions in the team and were they explored adequately?
solicit dissenting views, discreetly if necessary
Questions that decisionmakers should ask the team making the recommendations
4. Saliency bias: could there be an overly influence of a memorable success? Could lead to
faulty inferences ask for more analogies and rigorously analyze their similarity to the
current situation
Knowledge development is the basis for competitive advantage. The ability to learn faster than
competitors may be the only source of competitive advantage. Behavior may not change, but may be
pursued more confidently.
Definitions:
- Organizational learning: development of knowledge that has the potential to influence
behavior. Learning can facilitate behavior change that leads to improved performance.
- Adaptive learning (single-loop): basic form, occurs within the recognized constraints (learning
boundary)
- Generative learning (double-loop): questioning long-held assumptions. Focusing on
interrelationships and dynamic processes of change rather than linear cause-effect chains.
- Culture: deeply rooted set of values and beliefs that provide norms for behavior
- Climate: how the organization operationalizes its culture.
- Market orientation: highest priority on the profitable creation and maintenance of superior
customer value. Provides norms for behavior. The scope of market orientation must include
all stakeholder contingencies that has potential for the creation of superior customer value
or threats to competitive advantage. The concept of market must be broadened to
encompass all sources of relevant knowledge and ideas.
- Entrepreneurship: valuing traits that are associated with knowledge acquisition through
exploration, challenging assumptions to create generative learning and rapid development of
new behaviors to leverage learning. Entrepreneurial values support the creation of new
businesses and the renewal or revival of ongoing businesses. The entrepreneur must use the
profit from earlier innovations.
- Facilitative leadership: encourage individuals, motivate people to do more than what was
expected. Developing people around them.
- Organic structure: decentralized, with ambiguous job responsibilities. Members recognize
their interdependence, are willing to cooperate and share information. Decisions are made
informally and flexible. Downside is personal frustration and low involvement.
- Decentralized strategic planning: top managers provide general guidance. Planning is guided
by a stable vision and operationalized through flexible, responsiveness overlay of task-
oriented teams.
Rijtjes:
Organizations need to focus on:
- Continuously collecting information
- Create superior customer value
Processes of organizational learning:
- Information acquisition
o Exploration: learning from externally focused experience
o Exploitation: learning from internally focused experience.
- Information dissemination
- Shared interpretation
Three ways that learning can influence organizational behavior
1. Action oriented: direct application to solve a problem
2. Knowledge enhancing: influences managerial perspectives but is less likely to change
behavior directly
3. Affective use: increases satisfaction or decreases dissonance with a change that already has
been made.
, Organizations have a foundation for sustainable competitive advantage when they possess
skills/resources that:
- Provide superior value
- Are difficult to imitate
- Are capable of multiple applications.
A learning culture is beneficial for companies because:
- Looking forward reduces the frequency and magnitude of major shocks
- Close relationships with stakeholders lead to an cooperative attitude when something
unexpected occurs.
- Ability to quickly reallocate resources in times of opportunities or threats.
Day states: a superiority to learn is
- Critical acceleration to market- and technological changes
- A competitive advantage complexity, usefulness, and difficulty to imitate.
Models:
Conclusion and implications:
Learning organizations are guided by a shared vision, focusing on creating superior customer value,
continuously acquire and disseminate information and reach shared interpretation to exploit
opportunities and defuse problems. The learning architecture provides superior customer value, is
complex to imitate, and difficult to develop and appropriate in a turbulent market. Managers must
lead by involving all fractions in learning oriented activities and demonstrate the benefits that are the
results of those activities.
Paper HC2: dangerous biases can creep into every strategic choice. Here’s how to find them before
they lead you astray.
Two modes of thinking:
- Intuitive (system 1): not consciously focusing, but just doing it
- Contract reflective (system 2): slow, effortful and deliberate
Questions that decisionmakers should ask themselves
1. Self-interest biases: decisionmakers need to asses not whether there is a risk of motivated
error but whether it is significant review the proposal with extra care (for overoptimism).
2. Affect heuristic: when we like something, we tend to minimize its risks and maximize its
benefits rigorously apply all the quality controls of the checklists
3. Groupthink: were there dissenting opinions in the team and were they explored adequately?
solicit dissenting views, discreetly if necessary
Questions that decisionmakers should ask the team making the recommendations
4. Saliency bias: could there be an overly influence of a memorable success? Could lead to
faulty inferences ask for more analogies and rigorously analyze their similarity to the
current situation
