Cross-organizational knowledge creation theory from the perspective of I-Ching: Case study in Chinese aerospace industry

This paper aims to refine cross-organizational knowledge creation theory by exploring the knowledge conversion process of University-Industry (U-I) collaboration in Chinese aerospace industry. An ancient Chinese philosophy named I-Ching is also introduced to illustrate dynamics of knowledge creation to achieve enlightenment.

To describe the knowledge conversion tendency, a theoretical framework is developed by reference to Boisot’s (1995) Information Space. The application of the framework is described in the in-depth case study of micro-electrode manufacturing for aerospace vehicles. The dynamics of each stage in knowledge conversion is investigated with the implications from I-Ching.

Analysis of the results suggests that seven certain stages can be especially indicative of cross-organizational knowledge creation, namely: demand codification; knowledge gain; knowledge digestion; knowledge sharing; knowledge propagation; knowledge spillover and knowledge degeneration. A knowledge gain, digestion, sharing and propagation (GDSP) knowledge creation theory is developed accordingly. The form of knowledge in different stages is variable, the change among various forms is effectively explained by I-Ching.

There is clearly a strong requirement to test the framework further with other cases, such as sampling cases from different industries and of different firm scales. Besides, the knowledge creation processes on the organizational level and the individual level are quite different, which call for further study.

First, the theory helps firms to get a better understanding of the nature of U-I collaboration, that is to say, knowledge creation. That will, in turn, power the firm to take the initiative to participate in knowledge creation activities. Second, the illustration through I-Ching provides reasonable and easily understandable interpretations for Chinese corporate managers and executives. Traditional Chinese culture will be beneficial to make U-I collaborations more efficient and effective in China.

A new “GDSP knowledge creation theory” which enriches and advances the typical socialization, externalization, combination and internalization (SECI) knowledge creation theory in some aspects is proposed. The theory is deeply grounded in Chinese culture. Furthermore, the conversion of different knowledge forms in the theory is considered from a totally new perspective of ancient Chinese philosophy: I-Ching.