VTT PUBLICATIONS 776

1 VTT PUBLICATIONS 776 VTT CREATES BUSINESS FROM TECHNOLOGYT echnology and market foresight Strategic research Product and service development IPR and licensing Assessments, testing, inspection, certification technology and innovation management technology partnership VTT PUBLICATIONS 776 KNOWLEDGE TRANSFER IN SERVICE BUSINESS DEVELOPMENT. TRANSFER MECHANISMS ISBN 978-951-38-7762-0 (URL: )ISSN 1455-0849 (URL: )Jari Konttinen, Anssi Smedlund, Nina Rilla, Katri Kallio & Robert van der HaveKnowledge Transfer in Service Business Development Transfer mechanisms and intermediaries in FinlandService activities are important in most of today s businesses. For this reason, deci-sion makers need to place emphasis on service-oriented development and service innovations, as well as knowledge transfer and the sharing of service business-related capabilities to increase their competitiveness.

2 This study sheds light on the processes and dynamics of services business knowledge transfer by identifying and analysing different knowledge transfer mechanisms available for service businesses. The main focus was on knowledge transfer activities in intermediaries. The identi-fied knowledge transfer mechanisms indicate that a majority of them concentrate on externalizing and combining knowledge, while we found fewer means to internalize or socialize knowledge. A successful transfer mechanism takes client expectations into account, is personalized and places emphasis on the type of knowledge it aims to transfer. However, the results indicate that internalization of knowledge in the target organization as well as service resource and infrastructure development are often neglected. Due to the diverse nature of knowledge, different phases of service development process, the level of end-user engagement and contextualization of knowledge as well as related costs of knowledge transfer should be considered when designing knowledge transfer activities and policies targeted to service development.

3 VTT PUBLICATIONS 776 Knowledge Transfer in Service Business Development Transfer mechanisms and intermediaries in Finland Jari Konttinen, Anssi Smedlund, Nina Rilla, Katri Kallio & Robert van der Have 2 ISBN 978-951-38-7762-0 (URL: ) ISSN 1455-0849 (URL: ) Copyright VTT 2011 JULKAISIJA UTGIVARE PUBLISHER VTT, Vuorimiehentie 5, PL 1000, 02044 VTT puh. vaihde 020 722 111, faksi 020 722 4374 VTT, Bergsmansv gen 5, PB 1000, 02044 VTT tel. v xel 020 722 111, fax 020 722 4374 VTT Technical Research Centre of Finland, Vuorimiehentie 5, Box 1000, FI-02044 VTT, Finland phone internat. +358 20 722 111, fax + 358 20 722 4374 3 Jari Konttinen, Anssi Smedlund, Nina Rilla, Katri Kallio & Robert van der Have. Knowledge Transfer in Service Business Development. Transfer mechanisms and intermediaries in Finland [Osaamisen ja tiedon siirt minen palveluliiketoiminnan kehitt misess.]

4 Siirtomekanismit ja v litt j t Suomessa]. Espoo 2011. VTT PUBLICATIONS 776. 108 p. + app. 15 p. Keywords service, knowledge, capability, transfer, intermediary Abstract Service activities are important in most of today s businesses. For this reason, decision makers need to place emphasis on service-oriented development and service innovations, as well as knowledge transfer and the sharing of service business-related capabilities to increase their competitiveness. This study sheds light on the processes and dynamics of services business knowledge transfer by identifying and analysing different knowledge transfer mechanisms available for service businesses. The main focus was on knowledge transfer activities in intermediaries. The identified knowledge transfer mechanisms indicate that a majority of them concentrate on externalizing and combining knowledge, while we found fewer means to internalize or socialize knowledge.

5 A successful transfer mechanism takes client expectations into account, is personalized and places emphasis on the type of knowledge it aims to transfer. Moreover, building a trustworthy transfer environment clearly facilitates successful knowledge diffusion. However, the results indicate that internalization of knowledge in the target organization as well as service resource and infrastructure development are often neglected. Due to the diverse nature of knowledge, different phases of service development process, the level of end-user engagement and contextualization of knowledge as well as related costs of knowledge transfer should be considered when designing knowledge transfer activities and policies targeted to service development.

6 A stepwise approach from awareness raising to more specific knowledge transfer is recommended. Creation of regional facilities and forums with public subvention for firms to raise the awareness, co-create, design, test and productize their service activities would enhance learning between firms and service business experts and the creation of new service innovations. 4 Jari Konttinen, Anssi Smedlund, Nina Rilla, Katri Kallio & Robert van der Have. Knowledge Transfer in Service Business Development. Transfer mechanisms and intermediaries in Finland [Osaamisen ja tiedon siirt minen palveluliiketoiminnan kehitt misess . Siirtomekanismit ja v litt j t Suomessa]. Espoo 2011. VTT PUBLICATIONS 776. 108 s. + liitt. 15 s. Avainsanat service, knowledge, capability, transfer, intermediary Tiivistelm Palvelutoiminnnot ovat keskeisi t m n p iv n liiketoiminnassa.

7 P t ksenteki-j iden tulisi huomioda palvelusuuntautunut kehitys ja palveluinnovaatiot sek palveluliiketoiminnan kyvykkyyksien siirt minen ja jakaminen yritysten kilpailu-kyvyn vahvistamiseksi. T m tutkimus lis ymm rryst palveluliiketoiminta-osaamisen siirron prosesseista ja dynamiikasta tunnistamalla ja analysoimalla erilaisia palveluyrityksille suunnattuja tiedonsiirtomekanismeja. Tutkimuksen p -kohde oli v litt j organisaatioiden tiedonsiirtomekanismit. Erilaisten tiedonsiirto-mekanismien tunnistaminen osoitti, ett suurin osa mekanismeista keskittyy tiedon ulkoistamiseen ja yhdist miseen, jolloin tiedon sis ist minen ja sosiaali-saatio j v hemm lle huomiolle. Onnistunut tiedonsiirtomakanismi ottaa asiakkaan toiveet huomioon, on omakohtainen ja huomioi tiedon luonteen, jota mekanismin avulla pyrit n siirt m n.

8 N iden lis ksi luottamuksellinen ilmapiiri edesauttaa huomattavasti tiedon levi mist . Tulokset osoittavat, ett tiedon sis ist minen ja palveluresurssien sek -infrastruktuurin kehitt minen j v t kuitenkin usein huomioimatta kohdeorganisaatioissa. Tiedon moninaisen luonteen vuoksi palvelukehitysprosessin eri vaiheet, loppuk ytt jien osallistaminen, tiedon kontekstualisointi sek tiedonsiirron kustannukset tulisi ottaa huomioon kehitett ess tiedonsiirron mekanismeja ja julkisia menettelytapoja uuden palvelu-liiketoiminnan luomiseksi. T m n vuoksi asteittainen l hestymistapa tietoisuuden lis miseen kohti yksityiskohtaisempaa tiedonsiirtoa on suositeltavaa. Alueellisten julkisten tilojen ja foorumien rakentaminen tietoisuuden levitt miseen sek palveluiden luomiseen yhdess ja muotoiluun, testaamiseen ja tuotteistamiseen auttaisi yritysten ja palveluosaajien v list oppimista ja uusien palveluinnovaa-tioiden kehitt mist.

9 5 Executive summary Today service activities provide a significant share of the revenues for many traditional manufacturing and technology companies, and at the same time new innovative service firms are established. For this reason, decision makers need to place emphasis on service-oriented development and service innovations as well as knowledge transfer and the sharing of service business-related capabilities to increase the competitiveness. Effective service business knowledge creation and its transfer among local, national and international players are crucial in current global competition. More understanding on the processes and dynamics of knowledge transfer in service business development are needed to develop fur-ther regional and national policies and furthermore the capabilities of the Finnish service sector.

10 In light of these late developments in service sector, this study identified and analyzed the different knowledge transfer mechanisms available for service firms regionally and nationally. This study concentrates on the activities of in-termediary organizations, which by definition work between other organizations and try to transform and moderate knowledge for a wider audience. The evi-dence to answer our research questions were gathered via two r esearch phases: (1) interviews in public knowledge intermediaries, (2) survey to users of two intermediaries and six knowledge transfer case studies. However, before data collection we carried out a literature review on service knowledge transfer. Theory highlighted the importance of tacit knowledge in service business, especially, the transformation of tacit knowledge to explicit knowledge.