Replication of complex knowledge systems : A question of organizational integration

Background: Many authors consider knowledge to be a significant source for competitive advantage. Replicating companies found their competitiveness on an ability to leverage its knowledge base by replicating its business model in new contexts, a process often referred to as the McDonalds approach. Several authors emphasize that an efficient method for knowledge transfer may increase the risk for imitation. Purpose: The purpose of this study is to examine in an explorative manner how strategies for replicating complex knowledge systems are employed and developed. Furthermore, our ambition is to explore the notion of replication strategy. Research method: The study was initiated by a literature study, creating a theoretical conception of replication. This was followed by an empirical study based on interviews with seven companies in diverse industries, following the explorative nature of the study. The companies studied are Indiska, Sandys, 7- Eleven, Arkitektkopia, First Hotels, Ernst&Young and KPMG. Result: The study has generated a model for analyzing replication of complex knowledge systems. Replication is conceived as the integration of generic capabilities, which are managed by what the authors refer to as integration tools, tools that are based on organizational knowledge. This viewpoint contributes to perception of replicating companies as one knowledge system. The study indicates that methods for knowledge transfer has limited effect on the risk for imitation, instead factors such as the complexity of the business and its ability to continuously develop are of greater importance. Replication strategies can be viewed from a lifecycle perspective, where the balance between exploration and exploitation varies over time. It has been suggested that replication can be viewed upon as an expansion strategy aiming to create a critical mass