Networks, knowledge and power: decision-making, politics and the process of innovation

This paper examines the highly political nature of innovation appropriation processes. The central focus is on the role of networks, networking, and knowledge in these processes. The data presented is drawn from two case study companies, both of which were implementing Enterprise Resource Planning (ERP) systems. While formal, hierarchical authority was found to be an important contextual factor, shaping the appropriation processes examined, it was found that such authority was not automatically translatable into actual power. In terms of knowledge and networks, the paper concludes that they were inextricably inter-related, largely because the typically tacit nature of much relevant knowledge required the development of networks to access and utilize it. The paper further concluded that the use of both networks, and knowledge in the innovation appropriation processes examined had a dual character. They could not only provide access to relevant knowledge and artefacts, but could also be used as political tools in support of particular interests.