Sunday, 9 June 2019

Beyond Shareholders: Evoking Community Value in Global Corporate Enterprises

by Denis Larrivee


Corporate offices represent epicenters of management character and mission. Information giants like Google and Apple peddle a future that has already arrived. Precious metals firms promote glamour and good taste. By these signs and symbols the public infers the actions corporations intend to carry out. More than a wall plaque for the itinerant visitor that inscribes the corporate mission, however, corporate offices are also meant to transmit a host of intangibles – norms and values, for example – that convey corporate essence. They are intended to convey more than corporate mission, because the intangibles intended for transmission are instrumental for those who are instrumental to the mission’s conduct.
Marshall McLuhan famously coined the maxim ‘the medium is the message’ by which he meant that linguistic content is never central to communication. Shaping and propelling content was the medium that conveyed how the content was meant to be interpreted, articulating the meaning for whom the content was intended. Management functions analogously. It propels corporate mission amidst intangibles that shape the corporate medium that is responsible for executing the content of its mission. Corporate offices exhibit those intangibles in actions that reveal through signs and symbols, intended and unintended, how value is allocated; that is, how value is intensified or lessened, where or whom it is directed to, and which norms are sacrificed in its stead. 
In today's allocation of value, it has become fashionable to view knowledge as 'the' critical resource irrespective of economic sector or type of organization. By contrast fixed tangible resources of the corporation are no longer a sustainable source of competitive advantage. Davenport and Prusak explain this central role of knowledge as a reservoir for novelty that grows continually with investment

'Unlike material assets ... knowledge assets increase with use: ideas breed new ideas, and shared knowledge stays with the giver while it enriches the receiver'

Knowledge is valued for being more than mere information. It is a process of guiding information manipulation. Information that is so modified generates new meaning and new knowledge. By extension, the process of manipulation is multiplied by the number of individuals who are engaged in its use. Knowledge transfer is thus perceived by management as a variable crucial to corporate vitality and viability. Indeed, it has become akin to a physical law that resources are multiplied by knowledge redistribution and whose use is predictive of corporate success.
For corporate management this is a singular conception since it proposes to transpose a difficult to measure, intangible asset into a visible metric crucial to management’s role of sustaining the corporate enterprise and promoting expansion. As a corollary, it means also that corporate vitality will depend on how well management understands and implements this metric. For the well-disposed corporate manager, gauging conformity to the law functions to guide management behaviour. The evidence for this statement can be seen in numerous scholarly articles concerned with knowledge transfer. A host of parameters now provide a digitized and quantified portrait relating administrative oversight to canalizing knowledge resonance through the corporate enterprise. Management success is thereby gauged by the ability to manage parametric matrices that index the most favourable regression correlation.
Two of the better-known theories that have been used to predict outcome in managing knowledge transfer are social cognition and social capital theories. According to these theories, personal relationships are a valuable resource because they promote knowledge sharing and so can be exploited to enhance the distribution of knowledge within the corporate structure. Hence, they predict that optimization of social capital will enhance corporate performance through improved knowledge exchange. Management, by inference, functions to optimize social capital. 
Yet when the theories are tested, Chin et a – among others – find that performance is related to variables that have little to do with such social relations; e.g., focal efficacy, a variable related to outcome expectations, involves personal and community endorsement, which are themselves antecedents of social capital. That is, as antecedents that relate to the intrinsic value of the individual in some form they are essential to performance. In fact, incentives premised on extrinsic rewards that entail only self-interest, such as money and advanced position, soon turn ineffective, whereas recognition engenders more long-lasting investment in the corporation.
All this seems to say that there is a significant factor influencing worker performance that is not correlated with information manipulation and this factor is neglected to the detriment of the corporate enterprise. That is, when management focusses on the message of knowledge transfer alone it is conveying a normative position about the working staff who will convey to the public corporate persona. The signs and symbols of this kind of management are seen in the emphasis on the process of parametricization that link corporate vitality to the numerical assessment of knowledge redistribution, and which suborns the working staff to a medium only,
It seems to mean also that when management narrowly focusses on external indicators it is misconceiving the nature of the corporate enterprise. Naughton, Alford and Brady, for example, describe the corporate enterprise as a hierarchy of goods. They identify the basic need of the corporate structure to survive; which, in their words, motivates the need to sustain positive cash flow and attain to profitability. However, they also characterize this as a lowest-level need, one that meets only the minimal standards of basic goods provided by the corporation. They point out that also present are higher goods constituted of the corporate community. Corporate models that satisfy only a basic dimension of profitability, in their view, have as primary objectives the satisfaction of external parties alone, like that of stockholders. Other models, multifiduciary, for instance, are mixtures of intermediate and lower goods, with the highest goods provided by those corporations identifying a ‘common good’ recognized by the corporate community as a whole, which is essential for its vitality.  This existence of this latter seems a message needing to be transferred to the corporation in its entirely and requiring that it be made manifest by the management.
Complicating management's task for manifesting the common good are a number of modern hurdles, however.  The need to maintain corporate presence in a ‘global village’, to use another of Marshall McLuhan’s phrases, invokes extended networks of staffing whose social relations and communication rely solely on internet media. Globalization thus challenges the corporate enterprise by limiting the very resources on which its vitality is premised. That is, the corporate structure is assailed by a plethora of influences that are not merely new and different in their formal expression within the corporation, but which exist in a medium shared by external forces that encroach on corporate membership. Consider, for example, that in today’s globalized, internet community maximal knowledge transfer is already the default position of the technology. Oxford's Floridi documents, for instance, that for every person on the planet there are now 5 communication devices with internet access. By extension, this means that knowledge transfer is already maximized and that the law of multiplication is saturated, no longer an effective criterion for gauging effective knowledge resourcing.
Equally significant, knowledge transfer is often no longer the province of the corporation alone but extends beyond corporate structures to enlist other entities, thereby diminishing the ability to uniquely drive corporate prowess within the business community. Shallot and Usoro characterize these diverging influences as spontaneous and self-organizing, which they designate communities of practice. Motivating the formation of these communities are shared interests and expertise and the desire to participate in joint effort, goals also prioritized by corporate staffing. Because they are self-organizing both membership and lifespan are determined solely by member choice and allegiance. Accordingly, their span lies beyond corporate boundaries, where, motivated by socialization, knowledge transfer is extended.
The presence of externalized knowledge transfer through vehicles like communities of practice implies that the sort of social capital extending beyond the corporation is unable to confine knowledge redistribution within the corporation; hence, it is insufficient to sustain the ‘common good’ and perhaps even lower level goods, that is, the corporate community as an effective reality. Accordingly, Stuart and Usoro posit that it is not enough to rely on self-aggrandizement alone, of the sort that may come from social satisfaction, either through personal exchange, common interests, or similar motivating factors that enhance the individual at the expense of the corporation as a valued entity. That is, the corporate entity bears within itself a value that needs to be recognized and endorsed by the staffing. In other words, there is a value congruence between management and staffing that subsumes the value of knowledge transfer to that invested in the corporate enterprise.
The recognition of this valuation defines the ‘common good’ that Naughton, Alford, and Brady speak of. Hence, it commits the virtual organization, despite its ethereal reality, to a normative premise mutually accepted by staff and management that is meant to bridge the divide of time, space, and even presence.
It is the recognition of this corporate normativity that needs appealing to, and that the signs and symbols management needs to resort to for evoking its recognition and endorsement. 

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