Networking inside the organization: a case study on knowledge sharing

Purpose – This paper illustrates, on the basis of a case study of a multinational corporation, the positive impact of intra‐organizational networking on the capacity to sustain competitive advantage in a highly volatile environment. It aims to provide researchers, consultants and managers with insights on how to design an organization leveraging internal resources and capabilities. Design/methodology/approach – One original case is presented, along with a series of analytical points drawn from this study. The research design is based on action research methods (one author participated in designing and implementing the “networking attitude” project) as well as primary (interviews) and secondary data (internal documents). The paper makes several basic points on the relationship between inter‐unit knowledge sharing and renewing competitive advantage in multinational corporations. Findings – The critical findings relate to the importance of creating effective inter‐personal networks for enhancing knowledge sharing, and to the direct positive impact on overall strategic performance of transferring knowledge across organizational units. The bottom line is that knowledge is detained by people and it cannot be coordinated in a top‐down centralized manner, but rather requires organizational designs based on greater autonomy, efficient incentive systems and strategically coherent organizational cultures. Research limitations/implications – The findings of the paper are based on a single case study of a firm that successfully managed to create intra‐organizational knowledge‐sharing networks that resulted in significant improvements in overall performance, and hence generalization and robustness of the results would require the analysis of additional – successful and unsuccessful cases. Practical implications – The paper provides insights on the creation of effective knowledge‐sharing networks in multinational corporations. Originality/value – The data, approach, and analysis are all original. This paper enriches the existing theory on knowledge management and strategy formation by highlighting the direct link between leveraging internal resources and improved performance. It addresses the problem of knowledge sharing in multinational corporations and emphasizes the importance of interpersonal links and autonomy in organizations. The model of knowledge sharing described in the paper can easily be adapted in different contexts and should therefore be of value to managers. To researchers it offers a comprehensive framework integrating internal capabilities and strategy implementation perspectives.