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Abstract

In this article we examine how loose coupling between units and people can benefit a firm's ability to combine and recombine knowledge-based resources continuously in a creative and flexible way. An in-depth study of Oticon A/S suggests that loose coupling can be deliberately brought into the design of the organisation by introducing a certain structural ambiguity into the configuration of role systems and authority relationships. In the first part of the paper, we show how loose coupling among units and people is a distinctive feature of the way Oticon organises its administrative activities. In the second, we explore the structural properties of a loosely coupled arrangement. We develop the concepts of multipolarity, fluidity and interconnectedness and we show how these properties conduce to an increase in the effectiveness, efficiency and flexibility of the processes of knowledge integration. Structural ambiguity is thus proposed as a viable design principle for organisations operating in hypercompetitive environment, where flexible knowledge integration represents a critical condition of survival.

Publication Type:	Article
Additional Information:	NOTICE: this is the author’s version of a work that was accepted for publication in Scandinavian Journal of Management. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Scandinavian Journal of Management, Volume 17, Issue 1, March 2001, Pages 41–66, http://dx.doi.org/10.1016/S0956-5221(00)00032-4
Publisher Keywords:	Knowledge management, Loose coupling, Continuous innovation
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Departments:	Bayes Business School > Management
SWORD Depositor:	Symplectic Administrator

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