August 2008

1. The Effect of Information Channels and Networks on Knowledge Generation and Technology Transfer in Small and Medium Enterprises Keith Jacobs jacobsk@cput.ac.za Cape Peninsula University of Technology August 2008

2. AGENDA • Introduction • Background of the Study • Problem Statement • Research Aim and Methodology • Findings and Discussion • Conclusion and Recommendations Introduction Background of the Study Problem statement Research Aims & Methodology Findings & Discussion Conclusion & Recommendations

3. Introduction • This study looks at how the behaviour of Small and Medium Enterprises (SMEs) can be changed so that information and knowledge can be shared in a non-threatening environment. • People in organizations are often trapped by implicit theories of behaviour (Argyris, 1993) that guide their decisions and behaviour. • Since these theories are unconscious, they are not open to new influences or change, and almost impossible to share with others. Figure 1. Research and Development System (Source: Keith Jacobs, 2008. NPD Model) Introduction Background of the Study Problem statement Research aim & Methodology Findings & Discussion Conclusion & Recommendations

4. Background of the Study • In organizations, there are many obstacles to knowledge generation and technology transfer. • This largely stems from personal and organizational beliefs that knowledge should not be shared or transferred but stored and used when necessary by a few people only. Introduction Background of the Study Problem statement Research aim & Methodology Findings & Discussion Conclusion & Recommendations

5. Problem statement • Globally, the engineering sector within SMEs, play a critical role in absorbing labour, penetrating new markets and generally expanding economies in creative and economic ways. • In South Africa, nearly half of the GDP and employment comes from SMMEs that are flourishing all over the country. • Small to medium-sized enterprises employ over 80% of the national workforce (Vosloo, 1994:96). • Despite the efforts from government many SMEs still lack the necessary access to information channels, or • Know how to obtain and absorb information from internal and external information channels. Introduction Background of the Study Problem statement Research aim & Methodology Findings & Discussion Conclusion & Recommendations

6. Research Aim and Methodology • This study is aimed to determine how generating collaborative knowledge and transferring technology through information channels and networks, can sustain SMEs in South Africa. • Data collection of this study consisted of interviews and questionnaires that occurred with staff and management, as well as data from observations collected from 18 companies based in the Western Cape, Eastern Cape, Kwa-Zulu Natal in South Africa and the US. • A qualitative content analysis was utilised to analyse the data. • The data collected was put into the following four categories: • Knowledge Generation (KG) • Collaboration and Technology Transfer (C&TT) • Information Sharing (IS) • Information Channels and Networks (IC&N) Introduction Background of the Study Problem statement Research aim & Methodology Findings & Discussion Conclusion & Recommendations

7. Questions Table 1: Codes of interview questions Introduction Background of the Study Problem statement Research aim & Methodology Findings & Discussion Conclusion & Recommendations

8. Table 2: Responses from the 18 companies Findings and Discussion2 Table 2: Responses from the 18 companies Introduction Background of the Study Problem statement Research aim & Methodology Findings & Discussion Conclusion & Recommendations

9. Table 2: Responses from the 18 companies Findings and Discussion2Figure: Responses from the 18 companies Introduction Background of the Study Problem statement Research aim & Methodology Findings & Discussion Conclusion & Recommendations

10. Conclusions Conclusions: • The companies are aware of the effect that information channels and networks have on collaborative knowledge generation and technology transfer. • Fifteen of the eighteen companies responded positively to 80% or more of the questions. Introduction Background of the Study Problem statement Research aim & Methodology Findings & Discussion Conclusion & Recommendations

11. Recommendations2 • The three companies (5, 10 and 17) are running the risk of not remaining viable if they do not implement the recommendations given to them . • More research is needed to explore how collaboration between industry and academia can contribute to knowledge production in both the organizational setting and in the academic institution. Introduction Background of the Study Problem statement Research aim & Methodology Findings & Discussion Conclusion & Recommendations

12. Recommendations (A Typical Response to a Company) • Companies 5, 10, 17 and 18 need to collaborate with their customers by involving them in the design process or by getting them to sample the products. Dedicated people need to be tasked to do this in the companies. Customers are very good at assisting companies with the quality, price and aesthetics of a product.

13. References • Argyris, C. & Schon. D. (1993). Knowledge for Action, San Francisco: Jossey Bass. • Brown, J. S. and Duguid, P., “Organizational learning and communities-of-practice: toward a unified view of working, learning, and innovation,” Organization Science 2: no. 1 (1991): 40-57. • Grant, R. M., 1991, The Resource-Based Theory of Competitive Advantage Implications for Strategy Formulation, California Management Review 33 (3): 114-135. • March, J. G., 1991, Exploration and Exploitation in Organizational Learning, Organization Science 2: 71-87. • Teece, D. J., G Pisano, and A. Shuen, 1997, Dynamic Capabilities and Strategic Management, Strategic Management Journal 18: 509-533. • Yin, R. K., 1984, Case Study Research: Design and Methods (1st ed.), Beverly Hills, CA: Sage Publications. Introduction Background of the Study Problem statement Research aim & Methodology Findings & Discussion Conclusion & Recommendations

14. THANKS !