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192 MANAGING KNOWLEDGE WORK AND INNOVATION

In contrast, knowledge produced through process innovation is largely
intangible, tacit and context-dependent. It includes, for example, knowledge
relating to changes in work practices, changes in roles and responsibilities,
and changes in attitudes and cultural values. As seen in Chapter 5, this process
knowledge is difficult to codify, at least in ways that could be easily understood
when transferred to new contexts. Social and behavioural processes are therefore
likely to be as, if not more, important to managing knowledge for process
innovation than practices aimed at codification. For example, Hansen et al.
(1999) found that ‘personalization’ strategies (the development of intensive
personal relationships and social networks) were more effective than codification
strategies where the knowledge to be transferred was largely tacit in nature. This
broad difference between product and process innovation again highlights the
need to be sensitive to the purpose of the innovation when devising strategies
and approaches to managing knowledge.

>> TRADITIONAL VIEWS – INNOVATION AS A LINEAR
PROCESS
There is a popularly held view that the innovation process corresponds to the kind
of linear sequence depicted in Figure 9.2 (see, for example, Rogers, 1995).
Innovation is seen as a rational process whereby managers make decisions
about the adoption of new forms of the so-called ‘best practice’ based on
an objective assessment of their technical efficiency over existing techniques
and practices. According to this perspective, once a new best practice has

Firm boundary

Firms become Innovations are
External experts Use of
create new aware of and implemented innovation
‘best practice’ decide to adopt in the firm as becomes
innovations efficient changes in routine
innovations products/processes

Knowledge Knowledge Knowledge Knowledge
created diffused implemented used

Figure 9.2 The linear view of the innovation process

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