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Abstract

Human relation with technology has always been ambiguous. Management literature has long

debated if Information Technology (IT) has a direct impact on firm performance or if it is a

competitive burden. In this paper it is discussed the need to acknowledge IT dark side to

better exploit its powerful positive role in enhancing organizational learning. IT not only ensures

knowledge transfer efficiency by providing an organizational learning mechanism, but also

impacts the absorptive capacity thus improving also organizational learning outcomes.

More than 2500 years ago, a philosopher called Heraclitus of Ephesos asserted, Life is a flux (Mark, 2010),

meaning that all is constantly changing. Nothing appears more timely and accurate to describe today's business

environment. One of the current stream alimenting such sea of constant change, is the rapid and disruptive

dissemination of new technologies. Heraclitus was also known as the dark philosopher (Mark, 2010) for his

deliberately obscure reasoning. Also technology has its dark side, one that must be assessed and understood.

Technology disrupted industries toppling historical leaders like Kodak, forcing businesses to clarify their

strategy, develop new capabilities and transform their culture. Since Keynes (1933) predicted its negative impact over

employment, and Schumpeter (1962) warned on the creative destruction, it emerged clearly that every technology that

can extend the intellectual power of humans can also displace them (Markoff, 2015). The more a task can be defined in

terms of routine procedure, the more likely is to entrust it to automating technology. What is left for humans are low

value , and low income, manual tasks requiring flexibility, thus less suitable to automation and skillful cognitive tasks

on the opposite extreme, thus defining the labor market polarization (Goos, Manning, 2007). As technology advances,

allowing driver-less cars or high precision surgery, even in such cognitive domains human labor is transformed.

Digital transformation can easily disrupt traditional way of working. The free flow of information enabled by

digital tools, will travel horizontally and bottom up, upsetting the ingrained top down information stream. Existing

hierarchies can be easily by-passed and out-paced by emerging peer to peer spontaneous networks. Traditional control
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may slip out management's hands and leadership may shift to cross boundaries spanners (Gratton, 2005), able to ignite

hot spots where innovation flourishes.

Organizational learning has been defined as a collective capacity based on experiential and cognitive processes

and involving knowledge acquisition, knowledge sharing, and knowledge utilization (Bolvar-Ramos, Garca-Morales,

Mihi-Ramrez, 2011). The physiological process of human creativity, the social intelligence involved in persuasion and

negotiation are becoming increasingly vital skills for any organization. The ability to work in teams, to adapt to

changes, to collaborate and communicate across boundaries are the new frontiers of individual and organizational

learning (Torres, 2015).

Firms' competitive advantages are being continuously challenged and newly defined by its ability to adopt and

assimilate emerging technologies (Lee, Grewal, 2004). E-commerce must be seen not just as an additional channel

driving activities, but as a new business model that creates value. It requires new business models, culture and skills. It

requires to develop knowledge in previously unexplored domains. Those new technology distinctive competencies

(Bolivar-Ramos et al., 2011) not only will improve process and innovation but also attract new talents and broaden the

knowledge base and the pace of its dissemination. These competencies enable individuals and teams to adapt, integrate

and reconfigure their abilities, knowledge and technological capacities to adapt to the changing business environment

and deliver value to the customer.

IT is an important factor for the design of learning organizations in providing an infrastructure to store, access

and review some of the elements that make up organizational memory (Robey, Bodreau, Rose, 2000). IT use accelerates

the speed at which information is acquired and disseminated. Individual interpretations of information can be easily

shared across the organization, thus enabling consensus development. IT therefore represents an effective organizational

learning mechanism enabling to capture, transfer and store knowledge.

Knowledge transfer effectiveness is particularly relevant not only within growing global organizations but also

across company boundaries, gluing the complex ecosystem of collaborative alliances. In agreement with Lee, Grewal

( 2004), the strategic response of adopting Internet as a communications channel and e-alliance formation, positively

influence firm performance.

IT not only impacts those knowledge transfer mechanisms but also affect the outcomes of the learning

organization. The literature converge in framing organizational learning encompassing mechanisms and outcomes

(Iyenegar, Sweeney, Montealegre, 2015) describing absorptive capacity as a concept based on the fact that new ideas

are learned by associating them to what is already known. Such association not only increase the ability to value new
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knowledge, but to assimilate it and , above all, apply it. Iyenegar et al. (2015), show how this absorptive capacity is

directly linked to firm performance. Knowledge must be converted into environment specific, commercially relevant

applications in order to exert all its game changing potential. It has been questioned if only a part of the knowledge, the

explicit, could be coded hence transferred, thus leaving its core, tacit part to the realm of the subjective experience,

ineffable and nontransferable (Kabir, 2012). However, knowledge earlier considered as tacit, have become explicable

thanks to the advancement of new technology. For example, medical 3D scan today can explicit the topographic

knowledge of anatomy a surgeon posses, which was before considered tacit (Polanyi, 1962), or Google driver-less car

have codified the complex, context specific, subjective experience, tacit knowledge of a human driver.

IT beneficial effect can also be found at more granular level, where individuals employees and team can

capture the benefits of greater flexibility, shorter decision chains, improved errors detection and the associated learning

that goes with it, greater affinity with values and styles of leadership that facilitate communication and knowledge

transfer, greater capacity for customization and ultimately higher engagement and motivation (Garca, Llorns, Verdu,

2007).

Digital capabilities in the end provide an important foundation for improving the customer experience. For

example, by rapidly responding to customer inquiries, developing analytic capabilities to interpret customer needs, and

creating mechanisms to deliver content and offers across all relevant channels.

An example of using technology to improve teamwork and foster organizational learning is the University of

Lausanne, where the writer was recently engaged as Faculty Director. The chosen approach has been to independently

develop several web sites tailored on the specific needs of each Institute, while creating a central coordinating function.

Its main role was to ensure consistency, horizontal flow of information across departments and the adoption of best

practices. This central web site leveraged the efficient distribution of existing materials, news on events and seminars

and the creation of a searchable database of published researches, thesis and available talents. Furthermore a common

electronic agenda improved coordination, use of common resources and transparency on the key activities of the

different teams of Professors and assistants.

Despite the threats IT may bring to individual employment, traditional business model and company structure,

it offers a unique opportunity to create an integrated transformation of all aspects of the business, from channels and

processes and data to the operating model, incentives, and culture.

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