Managing paradox in a world of knowledge

Purpose – The purpose of this paper is to argue that the successful management of creative employees in organisations that rely extensively on the development of intellectual capital must incorporate new thinking to manage the inevitable paradoxical situations that arise in such contexts. Design/methodology/approach – The article explores and highlights conjunctions in several areas of current interest in management and global business, including social capital and intellectual capital, creativity and innovation, and arts firms and aesthetic management. Specifically, it links the development and maintenance of intellectual capital in large knowledge‐forming organisations to the successful management of paradox. Findings – The article highlights numerous areas where managing creative employees often clashes with traditional management practices. These areas include crossing organisational boundaries, rules around the use of personal and organisational time and space, locus of authority, and freedom to think. Originality/value – The article suggests that managing paradox requires special knowledge and skills, key of which are reflexive knowledge, trust of those who are out of sight, acceptance of ambiguity in thought and action, and pattern thinking.