Tacit Knowledge, Lessons Learnt, and New Product Development

Abstract

New product development (NPD) is a complex activity that is dependent on knowledge and learning. Much of the knowledge generated in NPD is tacit; it is difficult to express, connected with problem solving, and dependent on the interactions within teams. Post-project reviews (PPRs) are recognized as a highly effective mechanism for stimulating learning in NPD teams but, surprisingly, neither the typical ''lessons learnt'' that emerge from PPRs nor the role of tacit knowledge in NPD learning have previously been studied. To address this gap, five in-depth case studies were conducted at leading German companies. Three main sources of data were used: interviews with experienced NPD personnel using repertory grid technique, inspection of company process and project documentation, and observations of PPR discussions. Systematic coding of the qualitative data was conducted by two researchers working in parallel and verified through checks involving independent researchers. The coding process identified the lessons learnt and also the usage of metaphors and stories (which signifies tacit knowledge generation).The lessons that NPD personnel perceive to be the most important were identified from the repertory grid data. These included: knowing how to deal with project budgets, solving technical problems, meeting schedules, resource management, and managing organizational complexity. Four lessons learnt appear to be particularly closely linked to tacit knowledge: dealing with project budgets, problem solving, coping with time schedules, and coping with changes in product specifications. Data triangulation showed that the five companies did not capture many lessons in their reports on PPRs. In addition, it appears that the learning that was related to tacit knowledge was not captured for dissemination.Although the results from our exploratory sample cannot be generalized, there are some important implications. The results indicate that R&D managers should capitalize on the tacit knowledge within their organizations through mentoring (to transfer the lessons that are most closely linked to tacit knowledge), and encouraging the use of metaphors and stories to transfer key NPD knowledge. Future research needs to verify the results using a larger sample, focus on how NPD professionals learn, and identify the mechanisms that facilitate the transfer of tacit knowledge and project-to-project learning.Tacit knowledge is a popular management concept but one that is poorly understood, as empirical evidence to demonstrate the validity of the theoretical concepts is sadly lacking. This provides a unique opportunity for NPD scholars-they have the ideal arena in which a deeper understanding of tacit knowledge can be generated.

Intuition and Awareness of Abstract Models: A Challenge for Realists

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Group-Tacit Knowledge and Organisational Effectiveness: Analysis of Effects Using a Mixed Method Approach

“…Swart and Pye (2003) acknowledge the possibility of the latter case. Goffin and Koners (2011) opined that the complex process of developing new products and innovative projects within organisations very often require this form of group-tacit knowledge interactions which are highly personal and informal in nature. In their view, organisation's management must facilitate the sharing of tacit knowledge among groups by ensuring that there are mechanisms put in place to motivate employees, secure their commitment and reward them for sharing their knowledge.…”

Mixing rich and asynchronous communication for new service development performance

“…A learning competency reflects the continuous monitoring and adaptation of existing practices aimed at both incremental improvement and competence change (Schreyögg and Kliesch-Eberl, 2007). Project post-mortems are effective at stimulating the codification of learning embedded in NSD personnel and disseminating knowledge about good practices (Busby, 1999;Goffin and Koners, 2011). Formalized review procedures are effective in countering hindsight biases and the over simplification of explanations for complex situations (Lilly and Porter, 2003).…”