Competence Management as a Dynamic Capability: a Strategic Enterprise System for a Knowledge-Intensive Project Organization
HICSS 2016 Erkka Niemi & Sami Laine
[email protected]
Content 1. 2. 3. 4. 5. 6.
Introduction Literature Methodology Results Discussion Conclusion
1. Introduction
Introduction • In service economy, the importance of knowledge-based occupations increases and they are the main sources of growth and productivity. • For knowledge-intensive project organizations (KIPOs) it is very important to understand the current and future needs of customers and to provide them with the right experts at the right time. • Therefore, the KIPOs need comprehensive information on project allocations and the competences of their employees in order to match them with the customer demand, as well as to guide competence management on an individual and organizational level. • This kind of information is often managed with the help of enterprise systems (ESs).
Introduction In this interpretive case study research we aim at: • increasing understanding of competence management as a strategic dynamic capability and • gaining more understanding about the organizational and technological aspects of ES development, especially regarding competence management. The case study is a part of a larger Action Design Research (ADR) initiative that designs and develops a strategic ES for competence management in 2013-2016.
2. Literature
Literature Strategic Management • • • •
Market-based view (MBV) Resource-based view (RBV) Teece (1997, 2009): Dynamic Capability Framework Collins (2001): Level 5 Leadership & Hedgehog Concept
Human Resource Development (HRD) • KIPOs rely on intellectual capital and expertise • Competence management consists of defining an organization’s competence needs and then filling the gaps with sourcing and development activities
IS: Competence Management & Enterprise Systems (ES) • Lindgren et al (2004): “Design principles for Competence Management Systems” • Sein et al (2011): “Action Design Research” • Mattila (2012): “The interaction between ES and KIPO”
Definitions • Competence is ‘a demonstrated ability to apply knowledge, skills, and attitudes for achieving observable results’. • Accordingly, in this paper we follow the information systems science (ISS) convention and speak about competence management systems. • HR literature seems to favor the term capability instead of competence when talking about an individual employee’s ability to perform a job. • In this paper we use the term capability in the context of the organizational-level strategic capabilities aiming at competitive advantage.
3. Methodology
Longitudinal interpretive case study
as a part of Action Design Research (ADR)
Sein, M.; Henfridsson, O.; Purao, S.; Rossi, M.; Lindgren, R. (2011): Action Design Research, 35, 1, pp. 37-56.
ADR stages: data collection & analysis This research started in Finland in 2013 when a professional service company was looking for a unique competitive advantage and the first author was inspired by theories of Teece and Collins. The involved researcher is a member of the management team in the case organization. The outside researcher together with involved researcher supported with scientific theories. (Walsham 2006) We continued the interpretation of the data throughout the project, but decided to “step back and examine the interpretations of fellow participants” (Walsham, 2006) in June 2015 and to publish the findings. We aimed at analyzing and describing interpretations about encountering process rather than finding causal relationships (Gregor, 2006).
Sein, M.; Henfridsson, O.; Purao, S.; Rossi, M.; Lindgren, R. (2011): Action Design Research, 35, 1, pp. 37-56.
Case Organization: Siili Solutions Plc • Management consultant and technology integrator • In 2015: revenue €41M, EBITDA 10%, +400 persons • Annual growth over 30% in 2010-2015 • Stock price (Nasdaq) +tripled in 2012-2015 (€7 > €24) • 10th best place to work in Finland (GPTW 2014) • Operates in Finland, Poland and Germany • Involved researcher: Chief Development Officer (2013-)
4. Results
Competence Management Organization & Enterprise System
5. Discussion
More confirmation to previous research (of Lindgren et al 2004)
Competence Management System Design Principles • User-controlled transparency • Real-time capture with feedback • Multi-perspective interest-integration Competence Typology • Competence-in-stock • Competence-in-use • Competence-in-the-making
Hedgehog Concept reinterpreted
Collins (2001): Level 5 Leadership & Hedgehog Concept
6. Conclusion
Contribution
Evaluation: • Klein & Myers (1999) quality principles (interpretive case study) • Kasanen et al (1993) weak market test
You’re welcome! Erkka Niemi Aalto University
[email protected]
Future Research in 2016 • Improved Design Principles for Competence Management Systems • More insight to organizational challenges regarding implementation of Competence Management • Designed & implemented prototype in real business environment
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