Organizational size and knowledge flow: a proposed theoretical link

Abstract

Purpose -This paper seeks to present a theory clarifying the negative relationship between organizational unit size and knowledge flows referred to as Gita's Rule. Design/methodology/approach -This paper draws from the literature and develops a grounded theory. Various applications and propositions are suggested through this theoretical lens. Findings -It is suggested that, as the size of an organizational unit increases, the effectiveness of internal knowledge flows dramatically diminishes and the degree of intra-organizational knowledge sharing decreases. Research limitations/implications -It is proposed that 150 employees represents a general breaking point, after which knowledge sharing reduces due largely to increased complexity in the formal structure, weaker interpersonal relationships and lower trust, decreased connective efficacy, and less effective communication. Practical implications -The research points to the key dimension of organizational size that must be considered when developing models and reviewing case studies. Originality/value -The research reported in this paper is among the first to explicitly tackle the issue of how knowledge flows are affected by organizational size. A theory is developed and several research propositions are introduced for future studies.

Computer modelling the costs of management control in the development of knowledge-based SMEs

“…These results confirm that the dissemination of incremental innovations is important in SMEs (Desouza & Awazu, 2006. Serenko et al, 2007 and confirms Darroch (2005) findings that firms that manage their knowledge well do perform better, and in particular the assertion of Schmid and Kern (2014) is supported in that improvements in information gatekeeping at middle management level do indeed lead to overall financial gains.…”

“…Williamson (1985) as well as Williamson and Masten (1999) stress that transaction costs are as significant as production costs. Regarding transaction costs, the Knowledge Based View of the firm (for a recent review see Amadasun, 2014) underlines that a major factor contributing to transaction costs in an organization can be the costs of internal communication, also colloquially known as information gatekeeping: It is known that unhindered knowledge flow and the rapid dissemination of incremental innovations arising from this flow is especially important in SMEs (Desouza & Awazu, 2006. Serenko et al, 2007 and this aspect has been applied to studies on management control in SMEs (for some examples see e.g.…”

Intellectual capital and business performance in the pharmaceutical sector of Jordan

“…It is important for the Jordanian government to harvest the full potential of its people by investing in appropriate technological infrastructure so that human capital can be converted (or processed) into increased wealth and a higher standard of living. This can be achieved for organizations regardless of size (Serenko et al, 2007). Social capital is the capacity of a nation to create and develop entrepreneurs, inventors, innovators and leaders.…”

Revisão Sistemática da Literatura de Fluxo de Conhecimento: Definições e Variáveis Influenciadoras

“…De acordo com os dados coletados, as características dos destinatários afetam o fluxo do conhecimento, como fatores relacionados com a motivação que esse receptor possui em receber o conhecimento externo, assim como a percepção que ele tem de que a fonte do conhecimento é um aspecto fundamental e valioso. A motivação que esse receptor possui em apreender favorece a ocorrência do fluxo (SERENKO, BONTIS;HARDIE, 2007). Além disso, para que haja fluxo, os indivíduos devem estar motivados a compartilharem aquilo que possuem com os demais atores.…”