Replicating Organizational Knowledge:Principles or Templates?

We discuss how firms can replicate practices and knowledge embedded in practices byfollowing principles, with no direct reference to an extant working example (template).Definitions are provided for the key concepts of templates, principles, and backgroundknowledge. We address the challenges of providing operational measures for successfulreplication, and for comparing the efficacy of principles and templates. By using twolongitudinal case studies of replication across the units of two multi-unit organizations, wesupport the central claim that in certain circumstances replication by principles can be asspeedy and cost effective as replication with templates, and deliver results of comparablequality. The principle contingencies affecting the relative performance of the two methodsare identified. We also point out that replication efforts can be a source or incubator, aswell as an application area, for dynamic capabilities in an organization. We briefly suggestwhat the results may mean for theories of knowledge-based competition...