Internalization among Technology Entrepreneurs: Looking to the Future While Grounded in the Past

Abstract

The dynamic knowledge creation process, traditionally described and applied in the context of large firms, is receiving growing attention in entrepreneurship research as a model to identify ways to decrease mortality rates in the "valley of death," the stage of entrepreneurship infamously known for the high percentage of startup failures. Prior innovation literature associates entrepreneurship activities with the socialization phase of Nonaka's dynamic theory of knowledge creation (also known as the SECI model). However, linguistic analysis of interviews with entrepreneurs indicates that internalization (i.e., the creation of tacit knowledge from explicit assets) plays an important role in new ventures activities.In this study, we distinguish between internalization in the current venture from internalization during the entrepreneur's prior employment. We find a strong relationship between references to the past and internalization that is mediated by negative emotions, which may have motivated the entrepreneur to leave prior employment and launch a new venture. We also find a strong relationship between an entrepreneur's references to the past and the number of employees in the venture, indicative of the importance of an entrepreneur's prior knowledge internalization to the current venture.This research contributes to the growing field of entrepreneurial knowledge management by extending the role of the entrepreneur's past knowledge creation activities to those of her/his new venture. It underscores the common tagline that we can learn more from our failures (negative emotions).

When Emotions Rule Knowledge

“…The findings reveal that some emotion categories, specifically those that are stronger and not typically researched but (as this study shows) are relevant to KM, are under-represented and provide examples for possible areas for future research. One example is the positive emotion category surprise, where few researchers have made attempts to research KM topics using surprise-connoted positive words such as dynamic leadership (Turner & Baker, 2017) or KM as an accelerator for original startup strategies (Bandera et al, 2018). To further investigate surprise in the context of KM, research regarding dynamic, visionary, or original KM initiatives and practices could be conducted.…”

At the mercy of our emotions? A multi‐dimensional analysis of emotions in knowledge management research

“…Especially since the workforce is currently becoming younger and more diverse, KM needs to enable several generations to create, share and use knowledge according to their needs and preferences, which can largely be met through honest communication as well as respectful and trusting relationships (McNichols, 2010), political skill, and emotional intelligence (Priyadarshi & Premchandran, 2019). Overall, an appealing emotional climate in the learning organization (Tran, 1998) is supportive for the generational transition of knowledge (Bandera et al, 2018), especially when management specifically promotes emotional resonance in knowledge networks (Xie et al, 2021). Nevertheless, emotions are not always enabling KM on individual or organizational levels.…”