Topic > The Fifth Discipline by Peter Senge - 653

Indeed, not all external knowledge can be easily used and transformed into new artifacts. If external knowledge is easily accessible, transformable into new artefacts and exposed to many actors (such as customers and suppliers), then innovative entry can take place (Winter, 1984). Conversely, if advanced integration capabilities are needed (Cohen and Levinthal, 1989), the industry may be concentrated and made up of large, established firms. Thirdly, dominance refers to the degree of accessibility of knowledge (Malerba and Orsenigo, 2000), i.e. the opportunities to acquire knowledge external to companies. Accessible knowledge can be internal or external to the industry. In both cases, greater accessibility to knowledge decreases industrial concentration. Another dimension states that knowledge can also be cumulative, i.e. the degree to which the generation of new knowledge is based on current knowledge (Malerba, 2002b). Identify three different sources of cumulativeness. The first source is learning processes and dynamic increasing returns at the technological level. The cognitive nature of learning processes and past knowledge limit current research, but also generate new questions and new knowledge. The second source is linked to organizational capabilities. These capabilities are company-specific and can only be improved gradually over time. They implicitly define what a company learns and what it can hope to achieve in the future. A third source is market feedback, such as “success breeds success” processes. Innovative success produces profits that can be reinvested in research and development, thus increasing the likelihood of innovating again. Indeed, although there has been a growing culture of evaluation over the course of… middle of paper… oriented predominantly towards control rather than learning, rewarding individuals for their performance for others rather than to cultivate their natural curiosity and impulse to learn. Successful organizations encourage employee innovation as a way to produce measurable improvements in quality, quantity, and cost-effectiveness (Hale, 1996). In The Fifth Discipline, Senge (1990a) identifies five new "component technologies" that according to him they are gradually converting into learning organizations: systemic thinking, personal mastery, mental models, building a shared vision and team learning. Furthermore, as seen in the previous subchapter, innovation and risk-taking are inseparable in a learning organization, which Spear (1993: 14) defines as “a place where truth is sought and spoken without fear of retaliation or judgment… a place where curiosity reigns over knowledge and where experience