Introduction The world is becoming revolutionised with each passing day, change is occurring rapidly whether in an organised or disorganised manner. Thus, organisations are forced to deal with very challenging structures and concepts. This is where organisational theories become relevant as they involve the examination of concerns related to organisations. This is particularly important as it brings about the analysis and discovery of new life meanings and challenges both in and out of the organisations. It is for this reason that this essay aims to address the importance of organisational theory in a real company. Organisational theories are meant to explain an organisation and its structure. In this case the Apple Inc. organisation will be explored in details and the two theories; knowledge-based theory and diffusion of innovation theory will also be examined comprehensively and how they relate to the apple Inc. Apple Inc., an American Multinational Corporation, has its main focus on manufacturing and designing end user electronic and interconnected products. The most popular products include the iPod (Portable media player), Mac line of personal computers, iPad computers and the iPhone. The various software from Apple Inc. include the Mac and X operating systems, iLife suite, iTunes browser and creativity software as well as iWork and safari web browsers. The company was founded by Steve Paul Jobs, Ronald Wayne and Steve Wozniak in April 1976. Its purpose was to make and sell computers. It was then incorporated in January 1977 as Apple Computer Inc. which was later renamed in January 2007 as Apple Inc. (Daidj 2011). This was a reflection of its focus shift to consumer electronics. Apple is the second largest information technology organisation and the third world’s largest mobile phone developer. In 2008, it was named as the most admired company in the United States and in 2008 to 2012 it was the world’s most admired company. Apple is in fourteen countries with 408 retail stores as at May 2013. Apple is publicly owned and is the world’s largest publicly traded corporation in terms of market capitalisation. The company has 72,800 full time permanent employees and 3,300 full time temporary employees worldwide. Its revenue for the year 2013 was $170billion. Apple’s success is mostly attributed to its late co-founder Steve Jobs but even with his passing on, Apple Inc. is still solid and flourishing ( Apple,2014). The first theory to be explored is the diffusion of innovations theory. This theory studies the process by which over a period of time information is conversed to an organisation or people which can enable the use of a particular innovation (Miles 2012). Anything that is perceived to be new by the people is referred to as innovation. This can include a practice, good, services or even an idea. The newness is explained by its application and ability to solve problems. When people have a positive response in the use of the item that they have never used before but maybe heard of it can also be termed as newness. Several characteristics explain the success of innovations (Miles 2012). They include; having a relative benefit over the other existing methods, having compatibility with the current needs, past practices and current values, easy to understand, ability to be played with by probable adopters or tried out and having observable characteristics such that the adopters can witness the results for themselves. The second theory is knowledge based theory. According to Miles 2012, organisations are the way they are because of their capability to more efficiently manage knowledge than is possible than other kinds of structures in the organisation. Four knowledge types are associated with this theory; knowing what (declarative), knowing how (knowing how), knowing when (Judgement) and knowing why (Wisdom) (Miles2012). The two theories have been chosen as they addresses clearly what has been happening from its incorporation date to present. The success of Apple is attributed to its unique chart of organisation and ‘knowledge is power’ business culture. The ability of Apple Inc. to develop great quantities of its products to meet the demand through innovation and the constant engagement with its stakeholders has contributed to its competitiveness in the industry. Several seminal papers have been used because of their relevance. In the knowledge based theory, seminal paper by Fransson et al 2011 has been used. In this paper there are two propositions put forth by the author. Firstly, multinational companies do exist because re combination as well as transfer of knowledge happens more efficiently inside the multinational companies than between them and third parties. Secondly, he argues that opportunism threat is unnecessary though it may be adequate in explaining the existence of the multinational corporations (Fransson et al 2011). This knowledge based view shifts the conceptualisation of an organisation as an establishment emerging from market failure and costs of transactions economising to posterity of a governance of knowledge that is superior. This is relevant as Apple Inc. is a multinational company that has experienced several challenges in the past including market failure, where it had made losses. However, with proper strategy it was able to rise up again. The other seminal paper relevant in this study is Kogut & Zander1993. It also addresses knowledge based theory from a multinational company point of view. The authors argue that organisations are social entities that specialises in the development and transfer of knowledge internally. They argue that multinational corporations do not arise as a result of market failure for the trading of knowledge but because of its superior efficiency in transferring this knowledge. Transfer of knowledge to wholly owned processes is more likely when the technology is harder to teach and less modifiable (Kogut & Zander 1993). In the theory of diffusion of innovation the seminal paper by Trelease 2008. This is because of its relevance in the computers and mobile phones industry. The author describes how new innovations in terms of technology become popularly adopted. He argues new technological improvements on mobile phones with features that satisfy the needs of students e.g. flashcard resources, PDF documents and lecture ‘podcasts’ is what makes students adopt the new mobile phones. The combination of smartphone and high resolution capabilities for media player by the introduction of Apple iPhone is evidence to this (Trelease 2008). The other seminal paper is by Daidj 2011 who argues that organisations’ ability to compete successfully is determined by its ability to launch competitive products, technologies and services. The profitability and performance in an organisation is determined by its resources and competencies (Daidj 2011). He argues that Apple Inc. has been consistent in its products and its innovativeness, design and functionality has ensured its products’ success in the market. Several issues related to these two theories also emerged. The knowledge based organisational theory is based on the fact that knowledge is viewed as the most valuable resource in the organisation. To remain relevant and competitive in the market, an organisation must realise that it has to explicitly manage its intellectual resources and abilities. New applications to support the advancing information technology are put forward and documented in knowledge for the organisation (Zack 1999). In other organisations, the tactical knowledge of the currently within individuals’ heads, shared or augmented through various interactions is the most important. Both knowledge based ideas are ideal in any organisation that choses to adopt the system. However, this does not insure the organization’s best investments or that knowledge is being managed the right way even though a comprehensive infrastructure might have been put in place to support the process. There needs to be a strategy that can support this knowledge. After Apple Inc. made huge loses in the 1990’s it was time to come up with a proper strategy to support its knowledge in the market. This made it come up with the convergence strategy which allowed it to concentrate on its most profitable avenues and competencies to the new market e.g. connected TV, telecommunications and music. Therefore, while having resources is one way of creating a competitive edge, either this may not be the case sometimes or competitors might imitate such knowledge. Organisations with superior knowledge and strategy to use it effectively are able to provide more values to their clients compared to their competitors (Daidj 2011). Today’s competitive edge is represented by innovation supported by major capabilities in efficiency, quality, flexibility and speed. Innovation enables giant industries to bring in new products to the market more frequently and at lower costs compared to their competitors (Lawson & Samson 2001). However, one issue that comes about due to innovation is the need for effective and efficient managers. Managers need to coordinate daily operations, cultivate innovation and change in the company. Paradoxically, this is seen as a way to hamper the development of fruitful innovation. Innovation thus becomes an instability force requiring long term commitment and vision. The inability to transfer innovation from new stream to mainstream becomes a challenge. This was seen when Apple Inc. was unable to exploit their first-mover advantage (Nonaka & Takeuchi 1995). Some of the limitations of knowledge based theory include the inability by scholars to define theory by itself (Miles 2012). Knowledge is an essential element for developing a firm’s competitive advantage therefore the management should try to establish, generate deploy and develop it. This means that managers need more knowledge about knowledge and how to manage it as it is something that is evolving everyday (Bellinger 2004). Another limitation is the synthesis of information processing technologies in an organisation and the capability of individuals to allow the company to thrive and survive in knowledge (Trelease 2008). The main limitation of diffusion of innovation theory is the fact that the global economy is constantly changing together with the nature of competition. The information age generation marked with advanced decision support and technology in telecommunications is changing the environment in which organisations work in. the focus of competition is changing as the products and services are becoming significantly important to consumers (Fransman 2002). An example is Apple’s smart phones which are in high demand even with school going children in this age.

Different perspectives can be analysed relating to the two theories used. This is done through comparing perspectives on the structure of the organisation, technology and performance. Theories and concepts are normally associated with perspectives and in the field in which the theory is being used. In any organisation, individuals who are swamped with uncertainties prefer information that affirms them rather that information that disconfirms their beliefs (Bellinger 2004). Employees’ participation in programs of teleworks is used to measure productivity of the organisation. In the knowledge based theory, the anticipated outcome is to empower individuals with knowledge through interactions but there is a reality to this. There is knowledge existing in these individuals independent that is independent of them. The process is aimed at improving efficiency, cost saving, effectiveness and other set objectives. On the other hand if knowledge is passed and no one is there to validate employees’ performance, then one cannot tell whether the employee is performing his duties (Nonaka & Takeuchi 1995). The passing of knowledge is just a ‘convenient’ way of ensuring employees are in existence. This can also be explained as in the case of innovation where for the organisation, it is a profit maximization action while for the consumer it a utility maximization action. Dealing differences in perspective about theories meant to enhance an organisation’s productivity can be a challenge. To work better as a team, each individual will be required to change their traditional mindset. Separation of information management and information technology is essential (Lawson & Samson 2001). Management of information which includes identifying clients’ needs, information acquisition, information organisation and storage, product and service development, distribution and use of information is critical for success. As a manager, ensuring that each individual in the organisation shares the responsibility of being able to identify and share their information needs is vital. Forceful tactics cannot work and so there needs to be a balance between what the employees need and what the manager want to give (Bellinger 2004). As a manager integrating technology and customer feedback with the company can help pass information to employees. Having the ability to sense threats and opportunities seize opportunities and maintain a competitive edge through combining; enhancing, protecting as well as reconfiguring assets can help pull the team together. Tackling the external market is also important as it will also enhance tackling the internal resource base adapting process (Nonaka & Takeuchi 1995).
Conclusion
Organisational theories are vital for the success of any organisation as long as they are applied in the right way and the right processes followed. The essay has examined knowledge based theory and diffusion of innovation theories in relation to Apple Inc. innovation has been advancing in the organisation from the introduction of Apple 1 in 1976 and has been consistent in its innovation to date. The use of knowledge based theory and being able to satisfy the needs of its customers who increase day by day is phenomenal. This does not mean it has been smooth and free of challenges. In the 1990’s Apple Inc. made huge losses and they had to incorporate their knowledge base with a convergence strategy. Expanding to new areas through innovation has also faced challenges with the recent ne being the iOS operating system (Lawson & Samson 2001). This means that organisational theories act as catalysts to the success of any organisation but need to be incorporated with the right channels and mindset of individuals.

References
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