Organizing Mechanisms and Technological Innovation in Diversified Corporations : A Perspective of Knowledge-based Theory of the Firm

다각화된 기업의 기술혁신과 조직화 방식 : 지식기반이론 관점을 중심으로

This paper presents a knowledge-based view of the multi-business firm. The multi-business firm has advantages in technological innovation and knowledge creation to the extent that it embodies various ideas and resources, and recombines them more effectively and efficiently than market contracts. The purpose of this paper is to identify how to organize the multidivisional form (M-form) structure to realize such advantages. We first differentiate within-division innovation and cross-division innovation, and explain why cross-division innovation, despite its higher performance potential, would be more difficult to achieve, compared to within-division innovation. Then, we offer the propositions about how to promote cross-division innovation with references to resource capability and coordination capability that is, in turn, composed of structural and control system, social capital, and human resource management system. We conclude by discussing theoretical and practical implications.