Expert Humans or Expert Organizations?

Abstract

Technological change can help to enhance an organization's knowledge base by facilitating communication and information flows. Changing communication and information flows, however, also creates appropriation opportunities for organizational sub-groups. Drawing empirical cases from the ESRC/DTI `New Technologies and the Firm' initiative, we put forward a theoretical framework for the analysis of potential appropriation problems and mechanisms for addressing them. If these mechanisms succeed, organizations can be seen as `expert'; i.e. knowledge flows are under the organization's control. If not, organizations may well employ `expert humans' but are unlikely to fully benefit from their knowledge. We suggest that expert organizations should prioritize the continuity of their knowledge base. Such a strategy not only carefully controls for the flow of personnel, but also avoids undue dependence on external knowledge suppliers.