TABLE 6.1 Distinctive capabilities as a consequence of childhood experiences: the oil majors Company Distinctive capability Early history Exon Financial management Exvon's predecessor, Standard Oil (NI), was the holding company for Rockefeller's Standard Oil Trust Royal Dutch Shell Coordinating a decentralized Shell Transport & Trading headquartered in London and global network of 200 founded to sell Russian oil in China and the Far East operating companies Royal Dutch Petroleum headquartered in The Hague; founded to exploit Indonesian reserves BP “Elephant hunting” Discovered huge Persian reserves, went on to find Forties field (North Sea) and Prudhoe Bay (Alaska) ENI Deal making in politicized The Enrico Mattei legacy; the challenge of managing environments government relations in postwar Italy Mobil Lubricants Vacuum Cil Co. founded in 1866 to supply patented petroleum lubricantsEffective coordination ORGANIZATIONAL Team performing a requires that the team CAPABILITIES capability needs performing a capal information, incentives, is “housed” withi J and resource allocation organizational unit ‘Management systems Organizationa Strategic Structure Intent RESOURCES TANGIBLE INTANGIBLE HUMAN @Financial | 9 Technology }® Skills/know-how i @ Physical . }@ Capacity for poe » © Reputation | communication &| coordination and ‘ firm priorities © Culture collaboration }@ Motivation FIGURE 6.1 Integrating resources to create organizational capabilities© Auto stying and design CAPABILITIES © Casting and a forging © Chassis design © Assembly ® Tooling ‘© Production © Body engineering production © Local © Export marketing marketing SKD / CKD “Alpl Accent rare =D Pory [> Ecce) on wants Sonanta PRODUCTS 1968 1970 @ FWD engineering © CAD/CAM © Assembly control systems @ Advanced component handling 1974 © Hydrodynamics © Thermodynamics © Fucl engineering © Emission control © Lubrication © Kinetics and vibration © Ceramics © Electronic control systems © Large-scale design integration © Global logistics © Lifecycle engineering 1985 1994-95Knowledge Generation Exploration’) Knowledge Application Exploitation”) Knowledge © Creation I Knowledge © Acquistion Knowledge & Integration Knowledge © Sharing I Knowledge Replication Knowledge Storage © and Organization 5 Knowledge & Measurement Knowledge & Identification © Recruitment © Intellectual property licensing © Benchmarking © New product development © Operations © Strategic planning © Communities of practice © Bost practices transfer © On-the-job training © Databases © Standard operating practices © Intellectual capital accounting © Competency modeling @ Project reviews © Competency modeling FIGURE 62 Types of knowledge process within an organizationExplicit Tacit Types of Knowledge Levels of knowledge Individual Organization Facts, Information, Databases, Rules, Scientific kn. Systems, IP Combination pee (uoustria ENTERPRISES, internalization] - Routinization] oe Externalization oe coun SS ENTERPRISES, skits, Sozalization ee Balan Know-how routines FIGURE 6.3 Knowledge conversion