R. Mitch Casselman

INNOVATION AS A KNOWLEDGE-BASED OUTCOME

Purpose – The purpose of this paper is to provide clarity to the concept of innovation and its various definitions.Design/methodology/approach – The article reviews the innovation literature and proposes that innovation has been conceptualized either from a process or from an outcome perspective. Also, the authors show that there is a substantive difference between innovation seen in the traditional innovation literature and innovation as conceived in the knowledge management literature.Findings – The paper proposes a general framework to categorize the existing views of innovation and show that innovation as an outcome has not been clearly defined from a knowledge perspective. To address this gap, the authors develop a new definition of an innovation outcome based on knowledge elements.Research limitations/implications – The research lays the groundwork for more comprehensive methods of measuring innovation and innovativeness, which is particularly useful for the study of service innovation.Practical imp...

Aligning Knowledge Strategy and Knowledge Capabilities

Abstract This paper outlines a framework that links knowledge strategy and knowledge capabilities in a similar way as prior studies for the more generic concepts of strategy and capabilities. Existing theory in knowledge strategy is fragmented and focused on competitive positioning. We utilize concepts of good strategic management and the theory of the firm to place knowledge strategy on a more theoretically sound basis. This expands knowledge strategy beyond competitive positioning to include internal organization and the boundaries of the firm. This expanded view of knowledge strategy is compared to a conceptualization of knowledge capabilities that focuses on different capabilities for internal, collaborative and competitive situations. Using this perspective highlights the interconnection between knowledge capabilities and knowledge strategy—they are often jointly determined. It also provides a basis for integrating competence- and knowledge-based views of the firm in an empirically testable model. Suggestions for further research are proposed.

Profiting from poverty: ethics of microfinance in BOP

Purpose – This paper seeks to examine the ethical dilemmas that emerge when offering microfinance services in BOP markets.Design/methodology/approach – Utilizing the ethical lenses of deontology, teleology, virtue ethics and moral relativism, the paper builds on prior research on ethical issues in BOP markets and the ethics of microfinance to highlight the specific stakeholder impacts facing MFIs. Relevant literature and examples from practice are utilized to illustrate the different ethical perspectives.Findings – In general, many of the key dilemmas represent themselves in the extreme poverty segment of the BOP where commercial business models have the least traction.Research limitations/implications – Propositions are developed for the corrective actions in the paper which might allow future research to uncover differences in intervention success in different BOP markets.Practical implications – The discussion of potential interventions for the various stakeholders may ameliorate criticisms of MFIs, su...

Optimizing decisions using knowledge risk strategy

Purpose The paper aims to focus on a strategic approach for making trade-offs between knowledge and risk. Design/methodology/approach Knowledge and risk are viewed as organizational resources that have an inherent trade-off between them, so that optimal firm performance does not necessarily arise through greater accumulation of knowledge nor from reduced risk. This trade-off is represented as an efficient knowledge-risk frontier. The paper examines the dynamics of this frontier on organizational performance. Findings The concept of knowledge-risk strategy is presented which contends that non-probabilistic risk or uncertainty originates from gaps in knowledge. Research limitations implications The paper proposes a new line of research to understand decision-making in organizations, particularly those which focus on knowledge intensive products and services. Practical implications The paper proposes managerial approaches to improve organizational positioning relative to the efficient knowledge-risk frontier through greater awareness of contributors to knowledge gaps and risk in decision situations, as well as traditional strategic tools such as outsourcing. Originality/value The postulated link between risk and knowledge gaps establishes a knowledge-based view of firm risk and recognizes trade-offs for decisions regarding knowledge accumulation.

Microfinance, Mission Drift, and the Impact on the Base of the Pyramid: A Resource‐Based Approach

This article draws on resource‐based theory and the literature on strategic intent to develop a theoretical model that explains the concept of mission drift in microfinance institutions (MFIs). We argue that the differential strategic intents of commercially oriented, for‐profit, and socially oriented nonprofit organizations drive the acquisition of disparate resources and capabilities, which in turn drives distinct performance outcomes, including a focus on different markets within the overall base of the pyramid (BOP). The article suggests that it is the dynamic aspects of changing strategic intent and the consequent timing delays in the development of associated resources and capabilities that lead to various issues of mission drift. Finally, we suggest that cross‐sector alliances between for‐profit and nonprofit MFIs may benefit from the unique capabilities of both types of organizations and deliver the most and broadest impact on poverty alleviation in BOP markets.