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Related Experiment Videos

Fair process: managing in the knowledge economy.

W C Kim1, R Mauborgne

  • 1INSEAD, Fontainebleau, France.

Harvard Business Review
|June 6, 1997
PubMed
Summary
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Building trust through fair process is key to unlocking employee creativity and idea sharing in the knowledge economy. This approach encourages voluntary contribution, boosting corporate performance and innovation.

Area of Science:

  • Organizational Behavior
  • Knowledge Management
  • Innovation Studies

Background:

  • Knowledge is a critical, non-coercible resource in the modern economy.
  • Fostering innovation requires effective knowledge creation and sharing.
  • Traditional management tools are insufficient for eliciting voluntary employee creativity and expertise.

Purpose of the Study:

  • To investigate the relationship between trust, idea sharing, and corporate performance.
  • To understand the reasons behind information withholding in organizations.
  • To identify factors influencing employee resistance to change.

Main Methods:

  • Longitudinal study of trust, idea sharing, and corporate performance over a decade.
  • Exploration of idea sharing dynamics in various organizational contexts (e.g., product development, joint ventures).

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  • Analysis of employee resistance to change and its underlying causes.

    • Main Results:

    • Fair process, defined by engaging input, clear explanations, and defined expectations, is the decisive factor in fostering trust and idea sharing.
    • Lack of fair process leads to withholding of cooperation and creativity.
    • Absence of fair process results in lost ideas and missed opportunities.

    Conclusions:

    • Fair process is crucial for building trust and unlocking employee potential.
    • Implementing fair process is essential for driving innovation and improving corporate performance in the knowledge-based economy.
    • Managers must prioritize fair decision-making and execution to encourage knowledge sharing and creativity.