Introduction

Abstract

Spend some time in most any organization today and you are sure to hear of the importance of networks, in one form or another, for getting work done. In this age of increasingly organic, flat, and flexible structures, many managers and scholars are using networks as a central organizing metaphor for twenty-first-century firms (e.g., Dimagio, 2001; Nohria & Ghoshal, 1997). In large part, this focus seems a product of two trends. First, over the past decade or so initiatives such as de-layering, TQM, reengineering, team-based structures, and outsourcing, to name a few, have been undertaken to promote organizational flexibility and efficiency (Hirschhorn & Gilmore, 1992; Hammer & Champy, 1993; Mohrman, Cohen, & Mohrman, 1995; Kerr & Ulrich, 1995). One outcome of these restructuring efforts is that information flow and work increasingly occur through informal networks of relationships rather than through channels tightly prescribed by formal reporting structures or detailed work processes. Along with the drive to more organic structures in organizations we have also seen a rise in the prevalence and value of knowledge-intensive work (Quinn, 1992; Drucker, 1993). Early initiatives to support knowledge workers focused heavily on databases and organizational processes to ensure the capture and sharing of lessons and reusable work products (e.g., Stewart, 1997; O’Dell & Grayson, 1998; Ruggles, 1998; Davenport, Delong, & Beers, 1998). However, these investments rarely, if ever, had the intended impact on the effectiveness and efficiency of knowledge work. As a result, a “second wave” of knowledge-management advice is coming forth that pays a great deal more attention to knowledge embedded within employees and relationships in organizations (e.g., Brown & Duguid, 2000; Cross & Baird, 2000; Dixon, 2000; Von Krogh et al., 2000; Cohen & Prusak, 2001). Among other things, this work has illustrated the importance of trust and informal networks for knowledge creation and sharing within organizations. We suggest that in today’s de-layered, knowledge-intensive settings, most work of importance is heavily reliant on informal networks of employees within organizations. For example, networks sitting across core work processes, weaving together new product development initiatives or integrating strategic initiatives such as alliances or mergers can be critical to organizational effectiveness.