Knowledge-Based Theory of the Firm, Challenges by Social Media

This paper reports on a study of the perceptions of top managers in 18 Swiss firms on the future of knowledge work in an age of new social media (SM). The executives perceive, and are concerned with, future work practices and behavioral norms, they are aware that the use of SM for knowledge work can change the locus of knowledge production from within the firm to networks and communities of practice (CoPs) that extend beyond the firm´s boundaries. To explore the strategic implications of this shift in locus, we re-conceptualize CoPs that emerge from the use of SM as a theoretical construct independent from the firm. We seek to distinguish the value propositions for firms and CoPs and explore the implications of a richer theoretical description of multiple strategic possibilities of firm-CoP relationships as new economic ecosystems emerge with widespread adoption of SM.