Bridging Two Worlds: Using Knowledge Management Theory to Understand the Merging of Two Non-Profit Organisations

Abstract

In today's economic climate, knowledge management is very important to the non-profit sector as these organisations experience the effects of a global recession. Financial instability may lead to downsising that creates a loss of important information. For non-profit organisations, a creative solution to the financial crisis has been re-structuring through multi-agency collaborations and mergers. These restructuring processes are complex and disruptive, making effective knowledge management processes even more important for organisational success. This study employs a qualitative interview design to explore the merger of two non-profit cancer support agencies through the lens of knowledge management theory. Participants of the original agencies shared their views of previous knowledge processes, how the processes changed as a result of the merger and strategies used by the newly formed agency to address merger complexities. Results reflect that one of the original organisations began as a non-profit medical provider with formal culture and communication patterns; the other a grass-roots social service agency with informal structure and communication patterns. These differences contributed to differing views about how the merger was implemented and perceived by various employees and board members. Knowledge gains were generally explicit knowledge processes while knowledge losses were implicit processes. Some important strategies and lessons learned included the need for good documentation of all work processes, an external facilitator, and the need for transparency and collaboration between all constituents.