Many organizations are experimenting with structures (new organization forms)
that are designed to facilitate empowered cross-functional communication. The
challenge is to become more efficient or competitive by reducing barriers to com
munication and to eliminate boundaries which impede the understanding of
end-to-end workflows and better performance on strategic goals. Horizontal
organization processes such as cross-functional teamwork and empowered
decision making at lower organization levels are based on more participative
management styles (new management technologies). This paper builds a theo
retical model and provides propositions showing how knowledge creation and
communication are the foundations of the new organization forms. An organiza
tion's capability for creating and communicating knowledge is seen as a resource
which can create global strategic competitive advantage. A longitudinal
research program is proposed to study the progress of experiments by organiza
tions utilizing the new organization forms and management technologies
(NFMT).
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