Sarah Philipson, Associate Professor Emerita
25 years in industry,
25 years as teacher
and researcher
SPi0_1-00_220906-02
I have almost 25 years of experience as senior executive and consultant in Scandinavian industry and 25
years of experience as researcher and university teacher.
My research, focused on innovation and how new knowledge is created, is presented in scientific articles
available here.
Based on my experience I have developed offerings to three categories of clients: companies, universities,
and individual students.
My offerings to companies go from inspirational lectures to consulting and board membership.
My offerings to universities are three ready-made master courses, which can be plugged into your program,
examination of master and bachelor theses, and the supervising of the theses of doctoral, master, and
bachelor students.
My offerings to individual students consist of preparatory courses and co-tutoring of theses.
This website presents my research and offerings to companies, universities and students
Sarah Philipson, Associate Professor Emerita
SPi0_101-02_220831-00
This is a conceptual paper. In her doctoral thesis, “Capital functions and the position of the workers” (in Swedish), published in
1980, Philipson, explored a Marxian theory of Business administration, based on a little known work by Marx, “Resultate des
unmittelbares produktionsprozesses”. She explored the three concepts “levels of functions of capital”, after Bettelheim, the
“generalisation of capital functions” and hence globalisation and the possibility to use the concept of “hegemony” in business
administration, after Gramsci.Two of the principle concepts were Marx’ “inner” and “outer” conditions of production. These
pre-empted the Resource-Based View (RBV) and the School of Industrial Organization (IO) with hundred years. In
Philipson36, she proposed 72 phenotypes for the principle strategic situations for companies, based on their inner and outer
conditions of production. The resource based view and the Industrial Organization School have long been two antagonistic
explanations of the strategic possibilities of firms.
This study is a synthesis of these two schools based on the framework developed in Philipson (1980). It suggests a
phenomenology for studying firm strategy that might possibly give precedence for a different mix of the two schools in the
phenomenological cases.
In spite of the development of the RBV and the IO over the last 30 years, the most interesting questions to pursue for strategy
research are how companies transcends their resources to reinvent themselves and how they transcend their resources to face
new environmental conditions of which they do not have enough experience and resources; hence the transcendence of their
limitations.
ABSTRACT
Article 2
Sarah Philipson, Associate Professor Emerita
SPi0_101-05_220831-00
Purpose – This paper aims to investigate key antecedents to the use of radical innovation of the business model of a service
firm to achieve competitive advantage. “Business model” emerged fairly recently as an academic concept, competing with
“sustainable strategic competitiveness”, “strategic fit” (Porter, 1996) and “dominant logic” (Prahalad and Bettis, 1986) to give
key explanatory understanding of firm performance.
Design/methodology/approach – The article is based on action research, in which the re-engineering of a service business
turned into radical innovation of the business model.
Findings – Radical innovation (conceived of as a new dominant logic) of the business model of a service firm is shown to give
sustainable competitive advantage. It shows how fundamental the concept of business model is to understanding the nature of
the business and links it to fundamental academic discussion of recent decades around concepts such as “sustainable
competitive advantage”, “structural capital” and “tacit knowing”.
Research limitations/implications – This is based on a case, and more research is needed to generalize the findings.
Practical implications – In contrast to the knowledge management and structural capital evangelization, much tacit knowing
cannot be converted to structural capital.
Originality/value – Business model is a central concept to understand business performance, but must not be conceived as all-
encompassing. We give a model for what the concept should cover and contrast it with other important models. We show the
role of tacit knowledge in a business model.
ABSTRACT
Article 5
Sarah Philipson, Associate Professor Emerita
SPi0_101-06_220831-00
In the light of recent corporate scandals company failure is usually explained based on agency theory, leading to the conclusion
that corporate boards and regulators must use agency theory to control management better. The authors use institutional theory
to problematize this advice. We identify the role of accounting as to give predictability, hence preventing company failure. But
this predictability can be questioned; it implies stability. Albeit partly with circumstantial evidence, we question this stability
with factors making the conditions for management’s decision-making volatile, as explained by antecedents, and leading to
unmanageable entities. The implications of this volatility have consequences for corporate governance and question the going-
concern assumption, the basis of accounting. Hence, from the dominant explanations that corrupt management, or management
with different interests than the principal, leads to company failure, we evolve another chain of cause and effect: volatility, with
company failure as a result. It is argued that traditional accounting rituals are unsuitable for many companies. The paper
indicates a need for de-institutionalization and reconsidering of accounting practices, and thus particularly the assumption of
going concern.
ABSTRACT
Article 6
Sarah Philipson, Associate Professor Emerita
SPi0_101-08_220831-00
In his groundbreaking work Sources of Innovation, Eric von Hippel discussed from where in (and out of) the value-chain
innovations came in different industries: the customer, the manufacturer, the supplier, or third-party innovator (universities,
research laboratories, etc.). The world has changed, and new phenomena have become apparent. This article is a conceptual
paper that discusses these new phenomena and presents a tentative updated pheno-typology of the sources of innovation, adding
six to von Hippel’s original four. To build these phenotypes it draws heavily on Kaulio (1998), Borrus and Zysman (1997), and
Hart & Kim (2002).
As principal take-away, the consequences for knowledge production and transfer are discussed for each of the 10 phenotypes, in
comparison to the in-house, non-open innovation, default phenotype
.
ABSTRACT
Article 8
Sarah Philipson, Associate Professor Emerita
SPi0_101-09_220831-00
The objective of this paper is to build a model of how tacit knowing is externalized and becomes external knowledge.
Knowledge Management (Nonaka, 1991, 1994; Nonaka, Toyama, & Konno, 2000) is an important field in Business
Administration. Based on the model provided by Nonaka and his colleagues (Nonaka, 1994; Nonaka & Takeuchi, 1995;
Nonaka et al., 2000) researchers and practitioners have fallen into the pipe dream that employees’ tacit knowing can be coded
and canned in computers (structural capital), eventually leading to the enterprise without humans. Earlier critics (Gourlay, 2002,
2006; Gourlay & Nurse, 2005, Grant, 2007; Philipson, 2016, 2019) of the knowledge management paradigm have shown that it
does not understand Polanyi’s concept tacit knowing and that it is much more complicated to “externalize” such knowing than
presumed by KM. The understanding in extant management literature of this process has been very problematic. Building on
concepts in philosophy, psychology, pedagogics, organizational science, and engineering, a model is built and exemplified. This
paper develops a theoretical framework for how tacit knowing can be externalized, what is required for such an externalization,
and discusses the problems in such externalization, limiting it.
ABSTRACT
Article 9