Knowledge management in an innovative virtual company

Abstract

Through a longitudinal case study, we examine the structure, characteristics, and team dynamics that motivate innovation within a virtual company. By determining the extent to which the knowledge management and organisational learning literatures apply to a virtual company, Flare Solutions Limited, we are able to identify unique characteristics that motivate creativity within the partners of the company. Utilising a case study and an action research approach, we found that this company integrates an interesting mix of mechanistic and organic elements within its structure to operate successfully as a learning organisation within a virtual environment. As well, the company has concretely identified and inventoried its knowledge, and other aspects of intellectual capital, permitting a clearer understanding of its operations. Our work offers a contribution as to how virtual companies can generate an atmosphere of creativity and innovation to create, preserve, and disseminate knowledge within a virtual company.