Modular Organizations and Strategic Flexiblity: The Mediating Role of Knowledge Management Strategy

Abstract

This chapter addresses the question of whether a modular organizational structure cultivates long-term proactive strategic flexibility. With the help of system dynamics modeling, our analysis suggests that a consistent organizational-learning supporting, personalization-oriented knowledge management strategy that encourages the creation of new knowledge through richer exchanges can be the enabler of strategic flexibility in modular organizations. The chapter emphasizes the mediating role of such a knowledge strategy and discusses three of its core elements, namely, boundary spanners and boundary objects, collaboration-supporting systems, and participative scenario planning, as practices and systems, which under a common umbrella, can contribute towards achieving real strategic flexibility in modular organizations.