How Structural Changes in Complex Networks Impact Organizational Learning Performance

The power of using knowledge against competitors is a key success factor in the information age. However, the knowledge itself is not the source of competitive advantage for an organization; rather its power lies in its use. In a learning organization, collective knowledge of the individuals is needed, in order to reach the overall goals of the organization. From an organizational perspective, the most important aspect of knowledge management is knowledge transfer. Therefore, knowledge within the organization should be available to others through social interactions. The contributions of this paper are two-fold: First, we show that the network structure that emerges from those social interactions depends on the variability in individual patterns of behavior. Second, we emphasize the importance of network structure changes for organizational learning. A consequence is that a high clustering coefficient within a network does not necessarily produce a high learning outcome. It can even result in a loss of innovation. Another consequence is that a small average shortest path length within a network of individuals positively affects organizational learning. Therefore, certain topological features of a network can help network members to have a better access to information within an organization.