A Study of Knowledge-Based Resource and Controlled Modes in Taiwan Governmental Organizations

  • Chi-Ho Chiou Chien Hsin University, Department of Business Administration, No.229, Jianxing Rd., Zhongli City, Taoyuan County 32097
Keywords: governmental organization, knowledge-based resource, controlled mode, controlled premises, social control

Abstract

In the past, the majority of research on governmental organizational control and the establishment of a control system focused on the possession of authority itself, but ignored the contribution of knowledge-based resources, which has been increasingly valued by researchers in recent years. Taking the perspective of knowledge-based resource, this thesis examines the relationship between control premises and control modes, and its influence on governmental organization in Taiwan. The research found: 1.intangible knowledge-based resource contribution also plays a key role in the control system; 2.knowledge-based resources has a significant influence on output control, process control, and social control; 3.the variables of governmental agencies and service units do not have different views on the knowledge resources and controlled mode. The results have enlarged the research scope of controlled theories in governmental organizations, thus providing a valuable reference for the design and application of a practical control system.

Author Biography

Chi-Ho Chiou, Chien Hsin University, Department of Business Administration, No.229, Jianxing Rd., Zhongli City, Taoyuan County 32097
Associate Professor

References

Barley, S. R. & Kunda, G. (1992) Design and devotion: Surges of rational and normative ideologies of control in managerial discourse, Administrative Science Quarterly, 37(3), pp. 363-399.
Barney, J. (1991) Firm resources and sustained competitive advantage, Journal of Management, 17(1), pp. 99–120.
Beamish, P. W. (1993) The characteristics of joint ventures in the People’s Republic of China, Journal of International Marketing, 1(2), pp. 29–48.
Bohn, R. E. (1994) Measuring and managing technical knowledge, Sloan Management Review, 36(1), pp. 61-73.
Bontis, N. (2004) National Intellectual Capital Index – a United Nations initiative for the Arab region, Journal of Intellectual Capital, 5(1), pp. 13-39.
Bontis, N. (1999) Managing organizational knowledge by diagnosing intellectual capital: Framing and advancing the state of the field, International Journal of Technology Management, 18(5-8), pp. 433-462.
Blodgett, L. L. (1991) Partner contributions as predictors of equity share in international joint ventures, Journal of International Business Studies, 22(1), pp. 63–78.
Boomsma, A. (2000) Reporting analyses of covariance structures. Structural Equation Modeling, 7(3), pp. 461–483.
Byrne, B. M. (2013) Structural Equation Modeling with AMOS-Basic Concepts, Applications, and Programming (New York: Routledge).
Cardinal, L. (2001) Technological innovation in the pharmaceutical industry: the use of organizational control in managing research and development, Organization Science, 12(1), pp. 19–36.
Cardinal, L., Sitkin, S. B. & Long, C. P. (2004) Balancing and rebalancing in the creation and evolution of organizational control, Organization Science, 15(4), pp. 411–431.
Chang, W. H. (2011) SEM Structural Equation Modeling (Kaohsiung: Tingmao Publish Company).
Chen, D., Park, S. & Newburry, W. (2009) Parent contribution and organizational control in international joint ventures, Strategic Management Journal, 30(11), pp. 1133-1156.
Choi, C. B. & Beamish, P. W. (2004) Split management control and international joint venture performance, Journal of International Business Studies, 35(3), pp. 201–215.
Conner, K. (1991) A historical comparison of resource-based theory and five schools of thought within industrial organization economics: do we have a new theory of the firm? Journal of Management, 17(1), pp. 121-154.
Cyert, R. M., & March, J. G. (1963) A Behavioral Theory of the Firm (Englewood Cliffs, NJ: Prentice-Hall).
Das, T. K., & Teng, B. (2000) A resource-based theory of strategic alliances, Journal of Management, 26(1), pp. 31–61.
Edwards, R. (1979) Contested terrain: the transformation of workplace in the twentieth century (New York: Basic Books).
Eisenhardt, K. M. (1985) Control: organizational and economic approaches, Management Science, 31(2), pp. 134–149.
Eisenhardt, K. M., & Schoonhoven, C. B. (1996) Resource-based view on strategic alliance formation: strategic and social effects in entrepreneurial firms, Organization Science, 7(2), pp. 136–150.
Evensong, L. & Malone, M. S. (1997). Intellectual Capital: realizing your company's True value by finding its Hidden Brainpower (New York: Harper Business).
Eisenhardt, K. M., & Martin, J. A. (2000) Dynamic capabilities: what are they?, Strategic Management Journal, 21(10-11), pp. 1105–1121.
Fryxell, G. E., Dooley R. S. & Vryza, M. (2002) After the ink dries: the interaction of trust and control in US-based international joint ventures, Journal of Management Studies, 39(6), pp. 865–886.
Ghemawat, P. (2001) Distance still matters: the hard reality of global expansion, Harvard Business Review, 79(8), pp. 137–147.
Gossett, L. M. (2009) Organization Control Theory, In: Littlejohn, S. & Foss, K. (eds.), Encyclopedia of Communication Theory (Thousand Oaks, CA: SAGE Publication), pp. 706-710.
Govindarajan, V. & Fisher, J. (1990) Strategy, control systems, and resource sharing: effects on business-unit performance, Academy of Management Journal, 33(2), pp. 259–285.
Grant, R. M. (1991) The resource-based theory of competitive advantage: implications for strategy formulation, California Management Review, 33(Spring), pp. 114–135.
Grant, R. M. (1996) Toward a knowledge-based theory of the firm, Strategic Management Journal, 17(S2), pp. 109–122.
Grant, R. M. (2007) Contemporary Strategy Analysis: Concepts, Techniques, Applications 6th Edition (Hoboken: Wiley-Blackwell).
Green, S. & Welsh, M. (1988) Cybernetics and dependence: reframing the control concept. Academy of Management Review, 13(2), pp. 287–301.
Groot, T. & Merchant, K. A. (2000) Control of international joint ventures, Accounting, Organizations and Society, 25(6), pp. 579–607.
Gupta, A. & Govindarajan, V. (2000) Knowledge flows within multinational corporations, Strategic Management Journal, 24(4), pp. 473-496.
Hair, J. F. Jr., Anderson, R. E., Tatham, R. L. & Black, W. C. (2009) Multivariate data analysis. 7th ed. (Englewood Cliffs, NJ: Prentice Hall).
Hall, R. (1992) The strategic analysis of intangible resources, Strategic Management Journal, 13(2), pp. 135–144.
Hamel, G. (1991) Competition for competence and inter-partner learning within international strategic alliances, Strategic Management Journal, 12(S1), pp. 83–103.
Hitt, M. A., Ireland, R. D. & Hoskisson, R. E. (1999) Stategic Management: Competitiveness and Globalization (Cincinnati, OH: South-Western College Publishing).
Hoyle, R. H., & Panter, A. T. (1995) Writing about structural Equation models, In: Hoyle, R.H. (ed.) Structural equation modeling: Concepts, issues, and applications (Thousand Oaks, CA: Sage), pp. 158–176.
Hult, G. T. M., Ketchen, D. J. & Slater, S. F. (2005) Market orientation and performance: an integration of disparate approaches, Strategic Management Journal, 26(12), pp. 1173–1181.
Jackson, D. L., Gillaspy, J. A. & Purc-Stephenson, R. (2009) Reporting practices in confirmatory factor analysis: An overview and some recommendations, Psychological methods, 14(1), pp. 6-23.
Jolly, D. R. (2005) The exogamic nature of Sino-foreign joint ventures, Asia Pacific Journal of Management, 22(3), pp. 285–306.
Joreskog, K. G. & Sorbom, D. (1992) LISREL 6: Analysis of linear structural relationships by the method of maximum likelihood, 5th ed. (Chicago: Scientific Software International, Inc.).
Ketchen, D. J. Jr., Hult, G. T. M. & Slater, S. F. (2007) Toward greater understanding of market orientation and the resource-based view, Strategic Management Journal, 28(9), pp. 961–964.
Kedia, B. L. & Bhagat, R. S. (1988) Cultural constraints on transfer of technology across nations. Academy of Management Review, 13(4), pp. 559–571.
Kirsch, L. J. (1996) The management of complex tasks in organizations: controlling the systems development process, Organization Science, 7(1), pp.1–21.
Kirsch, L. J. (1997) Portfolios of control modes and IS project management, Information Systems Research, 8(3), pp. 215–239.
Kumar, S. & Seth, A. (1998) The design of coordination and control mechanisms for managing joint venture-parent relationships, Strategic Management Journal, 19(6), pp. 579–599.
Lado, A. A. & Wilson, M. C. (1994) Human resource systems and sustained competitive advantage: a competency-based perspective, Academy of Management Review, 19(4), pp. 699–727.
Leonard-Barton, D. (1992) Core capabilities and core rigidities: a paradox in managing new product development, Management Journal, 13(S1), pp. 111-125.
Lesgold, A. (1988) Problem solving, In: Sternberg, R. J. & Smith, E. E. (eds) The Psychology of Human Thought (Cambridge, U.K.: Cambridge University Press), pp. 188-213.
Long, C. P., Burton, R. M. & Cardinal, L. B. (2002) Three controls are better than one: a simulation model of complex control systems, Computational & Mathematical Organization Theory, 8(3), pp. 197–220.
Luo, Y. & Park, S. H. (2004) Multiparty cooperation and performance in international equity joint ventures, Journal of International Business Studies, 35(2), pp. 142–160.
Luo, Y., Shenkar, O. & Nyaw, M. (2001) A dual parent perspective on control and performance in international joint ventures: lessons from a developing economy, Journal of International Business Studies, 32(1), pp. 41–55.
MacCallum, R. C. & Hong, S. (1997) Power analysis in covariance structure modeling using GFI and AGFI, Multivariate Behavioral Research, 32(2), pp. 193-210.
Mahoney, J. T. (1995) The management of resources and the resource of management. Journal of Business Research, 33(2), pp. 91–101.
Makhija, M. V. & Ganesh, U. (1997)The relationship between control and partner learning in learning-related joint ventures, Organization Science, 8(5), pp. 508–527.
Matti, S., & Petri, P. (2007) From strategic fit to customer fit, Management Decision, 45(3), pp. 582-601.
McDonald, R. P. & Ho, M. H. R. (2002) Principles and practice in reporting structural equation analyses. Psychological Methods, 7(1), pp. 64–82.
McEvily, S. K. & Chkravarthy, B. (2002) The persistence of knowledge-based advantage: an empirical test for product performance and technological knowledge, Strategic Management Journal, 23(4), pp. 285-305.
Merchant, K. A. (1985) Control in Business Organizations (Marshfield, MA: Pitman).
Miller, D. & Shamsie, J. (1996) The resource-based view of the firm in two environments: the Hollywood film studios from 1936 to 1965, Academy of Management Journal, 39(3), pp. 519–543.
Mjoen, H. & Tallman, S. (1997) Control and performance in international joint ventures, Organization Science, 8(3), pp. 257–274.
Morgan, G. (1983) More on metaphor: why we cannot control tropes in administrative science, Administrative Science Quarterly, 28(4), pp. 601–607.
Mowery, D. C., Oxley, J. E. & Silverman, B. S. (1996) Strategic alliances and interfirm knowledge transfer, Strategic Management Journal, 17(S2), pp. 77-92.
Nahapiet J. & Ghoshal, S. (1998) Social capital, intellectual capital, and the organizational advantage, Academy of Management Review, 22(2), pp. 242–266.
Nonoka, L. & Takeuchi, H. (1995) The knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation (Oxford University Press: New York).
Nunnally, J. C. (1978) Psychometric Theory (New York: McGraw-Hill).
Osborn, R. N. & Baughn, C. C. (1990) Forms of inter-organizational governance of multinational alliances, Academy of Management Journal, 33(3), pp. 503–519.
Ouchi, W. G. (1977) The relationship between organizational structure and organizational control, Administrative Science Quarterly, 22(1), pp. 95-133.
Ouchi, W. G. (1978) The transmission of control through organizational hierarchy. Academy of Management Journal, 21(2), pp. 173-192.
Ouchi, W. G. (1979) A conceptual framework for the design of organizational control mechanisms. Management Science, 25(9), pp. 833–848.
Peng, M. W. & Heath, P. S. (1996) The growth of the firm in planned economies in transition: institutions, organizations, and strategic choice, Academy of Management Review, 21(2), pp. 492–528.
Penrose, E. (1959) The Theory of the Growth of the Firm (New York: Wiley).
Prahalad, C. K. & Hamel, G. (1990) The core competence of the corporation, Harvard Business Review, 68(3), pp. 79-91.
Priem, R. L., & Butler, J. E. (2001) In the resource-based ‘view’ a useful perspective for strategic management research, Academy of Management Review, 23(1), pp. 22–40.
Raykov, T. & Marcoulides, G. A. (2006) A first course in structural equation modeling, 2nd ed. (London: Lawrence Erlbaum).
Reus, T. H. & Ritchie, W. J. (2004) Interpartner, parent, and environmental factors influencing the operation of international joint ventures: 15 years of research, Management International Review, 44(4), pp. 369–395.
Roos, G. & Roos, J. (1997) Measuring your company’s intellectual performance, Long Range Planning, 31(3), pp. 413-426.
Schiuma, G. & Lerro, A. (2008) Knowledge-based capital in building regional innovation capacity, Journal of Knowledge management, 12(5), pp. 121-137.
Schiuma, G., Lerro, A. & Carlucci, D. (2005) An interfirm perspective on intellectual capital, in Marr, B.(Ed.), Perspectives in Intellectual (Boston, MA: Elsevier Butterworth-Heinemann), pp. 155-169.
Schreiber, J. B. (2008) Core reporting practices in structural equation modeling, Research in Social and Administrative Pharmacy, 4(2), pp. 83–97.
Schreiber, J. B., Nora, A., Stage, F. K., Barlow, E A. & King, J. (2006) Reporting structurnal equation modeling and confirmatory factor analysis results: A review, The Journal of Educational Research, 99(6), pp. 323–337.
Schumacker, E. R. & Lomax, R. G. (2004) A beginner's guide to structural equation modeling, 2th ed. (Mahwah, NJ: Lawrence Erlbaum Associates).
Scott, R. W. (1992) Organizations: Rational, Natural, and Open Systems (Englewood Cliffs, NJ: Prentice-Hall).
Scott, B., Gary, L. & Dan, M. (2012) A knowledge-based view of improving the physician-patient relationship, Academy of Health Care Management Journal, 8(1/2), pp. 9-19.
Sharp, M., & Barz, M. (1997) Multinational companies and transfer and diffusion of new technological capabilities in Central and Eastern Europe and the former Soviet Union, In: Dyker D.A.(ed.) Technology of Transition (Budapest: University Press), pp. 95-125.
Snell, S. (1992) Control theory in strategic human resource management: The mediating effect of administrative information, Academy of Management Journal, 35(2), pp. 292-327.
Steensma, H. K. & Lyles, M. A. (2000) Explaining IJV survival in a transitional economy through social exchange and knowledge-based perspectives, Strategic Management Journal, 21(8), pp. 831–851.
Stewart, T. A. (1997) Intellectual capital: The new wealth of organizations (New York: Bantam Doubleday Dell Publishing Group, Inc.).
Subramaniam, M. & Youndt, M. A. (2005) The influence of intellectual capital on the types of innovative capabilities, Academy of Management Journal, 48(3), pp. 450-463.
Tannenbaum, A. S. (1968) Control in Organizations (New York: McGraw-Hill).
Tompkins, P. K. & Cheney, G. (1985) Communication and unobtrusive control in contemporary organizations, In: Mcphee, R. D. & Tompkins, P. K. (eds.) Organizational Communication: Traditional Themes and New Directions (Newbury Park, CA: SAGE), 179-210.
Torkzadeh, G., Koufteros, X. & Pflughoeft, K. (2003) Confirmatory analysis of computer self-efficacy, Structural Equation Modeling, 10(2), pp. 263-275.
Turner, K. L. & Makhija, M. V. (2006) The role of organizational controls in managing knowledge, Academy of Management Review, 31(1), pp. 197–217.
Von Hippel, E. (1998) The Sources of Innovation (New York: Oxford University Press).
Wang, W. Y., Lee, C. L. & Chiu, T. Y. (2012) The impacts of intellectual capital and organizational learning style on learning capabilities and organizational performance. Journal of Management, 29(1), pp. 17-44.
Wang, Y. & Nicholas, S. (2007) The formation and evolution of non-equity strategic alliance in China, Asia Pacific Journal of Management, 24(2), pp. 131–150.
Wiklund, J. & Shepherd, D. (2003) Knowledge-based resources, entrepreneurial organization, and the performance of small and medium-sized businesses, Strategic Management Journal, 24(13), pp. 1307–1314.
Wilkins, A. L. & Quchi, W. G. (1983) Efficient cultures: Exploring the relationship between culture and organizational performance. Administrative Science Quarterly, 28(3), pp. 468-481.
Wu, C. M., Ay, C. R. & Lee, Y. D. (2010) An empirical study of the impact of applying intellectual capital and organizational learning on innovation performance for Taiwanese high-tech firms, Sun Yat-Sen Management Review, 18(3), pp. 805-836.
Wu, I. L. & Hu, Y. P. (2012) Examining knowledge management enabled performance for hospital professionals: A dynamic capability view and the mediating role of process capability. Journal of the Association for Information Systems,13(12), pp. 976-999.
Yan, A., & Gray, B. (1994) Bargaining power, management control, and performance in United States-Chinese joint ventures: a comparative case study, Academy of Management Journal, 37(6), pp. 1478–1517.
Yan, A. & Gray, B. (2001) Antecedents and effects of parent control in international joint ventures. Journal of Management Studies, 38(3), pp. 393–416.
Yan, Y. & Child, J. (2004) Investors’ resources and management participation in international joint ventures: a control perspective, Asia Pacific Journal of Management, 21(3), pp. 287–304.

Published
2015-09-24
Section
Articles