Potential Complementary Knowledge, Collaborative Elaboration, and Synergistic Knowledge

Despite the importance of knowledge complementarities (KC) to firm performance, very little is known about exactly what constitutes KC and how synergistic knowledge is created in KC. This research looks into the dimensionality of KC and how synergistic knowledge as an essential component of KC is generated in a process innovation (PI) project. We propose that KC consists of potential complementary knowledge, collaborative elaboration (CE) process, and synergistic knowledge. The model is investigated quantitatively, using a sample of 26 matched-pairs of client and consultant who participated in a PI project, and then qualitatively using interviews of a sub-sample of 7 matched-pairs of client and consultant. Data were collected in a longitudinal way at four different points during the four month project period. Results show that consultant's learning about the client's business occurs first and then client learning about IT capabilities follows through CE. With this enhanced clients' knowledge about IT capabilities, clients play an initiative role in designing the To-Be business processes, while consultants play a supporting role by introducing best practices or making suggestions based on their experiences. Future research implications as well as practical implications are also discussed.