Organizational Communication: Development of Internal Strategic Competitive Advantage

Abstract

We all sense that the changes surrounding us are not mere trend but the workings of large, unruly forces: the spread of information technology and computer networks; the dismantling of hierarchy, the structure that has essentially organized work since the mid-19th century. Growing up around these is a new information age economy, whose fundamental sources of wealth are knowledge and communication rather than natural resources and labor (Stewart, 1993, p. 66).Many organizations are experimenting with structures (new organization forms) that are designed to facilitate empowered cross-functional communication. The challenge is to become more efficient or competitive by reducing barriers to communication and to eliminate boundaries which impede the understanding of end-to-end workflows and better performance on strategic goals. Horizontal organization processes such as cross-functional teamwork and empowered decision making at lower organization levels are based on more participative management styles (new management technologies). This paper builds a theoretical model and provides propositions showing how knowledge creation and communication are the foundations of the new organization forms. An organization's capability for creating and communicating knowledge is seen as a resource which can create global strategic competitive advantage. A longitudinal research program is proposed to study the progress of experiments by organizations utilizing the new organization forms and management technologies (NFMT).

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