1. R. Normann and R. Ramirez, “From Value Chain to Value Constellation: Designing Interactive Strategy,” Harvard Business Review, volume 71, July–August 1993, p. 65.
2. J.B. Quinn, Intelligent Enterprise (New York: Free Press, 1992).
3. The three firms that we will discuss participated in our study on condition of anonymity. All three are recognized as outstanding performers by both industry experts and competitors.
4. P. Senge, “The Leader’s New Work: Building Learning Organizations,” Sloan Management Review, volume 32, Fall 1990, pp. 7–23.
5. D. Leonard-Barton, Wellsprings of Knowledge (Boston: Harvard Business School Press, 1995).
6. For a more in-depth discussion of single- and double-loop learning, see:
C. Argyris, Strategy, Change, and Defensive Routines (Marshfield, Massachusetts: Pitman Publishing, 1985).
7. Leonard-Barton (1995).
8. G. Day, “The Capabilities of Market-Driven Firms,” Journal of Marketing, volume 58, October 1994, pp. 37–52.
9. M. Iansiti, “Shooting the Rapids: Managing Product Development in Turbulent Environments,” California Management Review, volume 38, Fall 1995, pp. 37–58.
10. Leonard-Barton (1995).
11. M. Porter, The Competitive Advantage of Nations (New York: Free Press, 1990).
12. Quinn (1992).
13. H. Mintzberg, “Crafting Strategy,” Harvard Business Review, volume 65, July–August 1987, pp. 66–75.
14. J.B. Quinn, P. Anderson, and S. Finkelstein, “Managing Professional Intellect: Making the Most of the Best,” Harvard Business Review, volume 74, March–April 1996, pp. 71–80.
15. We borrowed the term “community of practice” from learning theorists Lave and Wenger who define it as “an activity system about which participants share understandings concerning what they are doing and what that means in their lives and for their community. Thus they are united in both action and in the meaning that that action has, both for themselves and for the larger collective.” (p. 98) See:
J. Lave and E. Wenger, Situated Learning: Legitimate Peripheral Participation (Cambridge, England: Cambridge University Press, 1991). See also:
T.A. Stewart,“The Invisible Key to Success,” Fortune, 5 August 1996, pp. 173–176; and
B. Manville and N. Foote, “Harvest Your Workers’ Knowledge,” Datamation, July 1996, pp. 78–81.
The authors gratefully acknowledge the support of Judy Rosenblum. From our collaborative work together, the initial development of the model presented here evolved.