The document provides a critique review of a paper titled "Impact of informal networks on knowledge management strategy" by Jewel and Underwood. The review identifies two limitations of the original paper - that it only considered two organizations and gathered responses from 28 people. However, the review finds that the original paper's findings are supported by prior and new literature. It concludes that the findings can apply to all organizations but suggests examining multiple organizations from different industries to make more valid conclusions.

1. Impact of Informal Networks on Knowledge Management Strategy: Critique Review
Adib Chehade
Critique Analysis of Research
Swiss Business School
Feb 19, 2015

2. Impact Of Informal Networks On Knowledge Management Strategy: Critique Review 2
IMPACT OF INFORMAL NETWORKS ON KNOWLEDGE MANAGEMENT
STRATEGY: CRITIQUE REVIEW
ABSTRACT
The aim of critique review was to search the gaps and limitations of the paper. The paper
reviewed is Impact of informal networks on knowledge management strategy. This paper has
been written by Jewel and Underwood and published in 2005 in a book of Montano as a chapter.
Two limitations have been identified (only two organizations have been considered and only 28
people have gathered the responses). However, the findings of chosen paper got full support
from prior and new literature, and it has been concluded that the findings can be applied to all
organizations. It has been suggested that more efforts have been done by taking multiple
organizations from different industries in order to make worthwhile conclusion.
INTRODUCTION:
Communication has huge importance in making decisions and having competitive advantage;
information sharing enhances the knowledge of organizations that result in sustainability. It has
been examined that in order to make a significant contribution to company’s success and to keep
the company highly competitive. It is crucial that employees have real-time information and for
having knowledge organizations have two major ways one is formal and second is informal.
There are several factors that encourage informal communication. Informal communication plays
a significant role in organizational success and has several other benefits. These benefits include
having information regarding competitors social relations with employees working within other
organizations contribute immensely while making the strategy (Goldhaber, 1988). Knowledge
sharing enhances the capabilities of organizations and enables employees to gain the objectives

3. Impact Of Informal Networks On Knowledge Management Strategy: Critique Review 3
of the organizations, and informal networking contributes to knowledge of employees
spontaneously.
Due to the growing significance of knowledge, it has become vital that knowledge-based
organizations prepare appropriate knowledge sharing strategies and formulate such culture. With
the help of infrastructure that just not encourage formal knowledge management strategies, but
informal knowledge sharing strategies as well. The flow of knowledge improves the
sustainability, financial, operational, and competitive position of the organization.
The paper (Impact of informal networks on knowledge management strategy) done by Jewel and
Underwood and published in 2005 in the book of Montano as a chapter has been selected to
make critique review. In this paper, the importance of informal knowledge sharing; factors that
make an impact on the reputation of informal knowledge sharing, and obstacles that turn
employees to establish informal networking has been defined.
This paper has been selected because of the enhancing importance of knowledge management
strategy and rapid increase of informal networking at working place. Researchers in this domain
have not been conducted at wider level for this reason, and it has become pivotal to analyze the
contribution of informal networking in knowledge management strategy.
In the critique review, the findings of chosen paper have been compared with others’ literature
and supported or contradicted by presenting evidence from prior researches. The paper is based
on three sections. First section is based on the literature review in order to elaborate the
perception of other researchers in this domain and the second section includes critique analysis.
The third section is based on the conclusion includes the idea of overall paper.

4. Impact Of Informal Networks On Knowledge Management Strategy: Critique Review 4
LITERATURE REVIEW
Knowledge sharing (KS) is an activity through which information is shared among people
friends, organizations, communities, and families. According to Serban and Luan (2002),
knowledge management refers to the utilization of organization’s brain power in an organized
and systematic way. This is used for the sake of attaining competitive advantage, encourage
innovation and ensuring the achievement of efficiencies. It has been encountered that informal
structures are situationally driven, and results that occur from informal networks are not
necessarily applicable it is on the employee to choose or not. According Gerald (1988)
Grapevine or informal communication vary organization to organization and is accurate, it is fast
and indicators of sentiments and attitudes of employees. It has been identified that factors that
make influence on informal networking vary with organizations (Sarkwa, 2011).
Informal networks have been examined as important ways of transferring knowledge by the
practitioners and researchers of knowledge management. Collaboration of informal networking
is a challenge for employees because they have to make sure that limits of sharing knowledge are
not exceeded. It has been encountered that informal networking is essential to solving problems
creatively (Al-Bastaki, 2013). It has been determined that companies that have knowledge
management strategies provide access to both formal and informal culture in order to enhance
the sharing of knowledge (Staplehurst and Ragsdell, 2010). It has been determined by Azudin,
Ismail and Taherali (2009) that organizations prefer informal communication due to lower cost
and enhanced learning and informal sharing also increases the trust and helps in strengthening
the relationship.

5. Impact Of Informal Networks On Knowledge Management Strategy: Critique Review 5
CRITIQUE REVIEW
Jewel and Underwood examined the “impact of informal networks on knowledge management
strategy”. They in their paper mentioned four obstacles that are related to organizational culture
that these four obstacles are bureaucratic complexity, technical complexity, acute scarcity of
resources, and personality conflicts. According to them, these four factors contributed to the
encouragement of informal networking and concluded that these factors make a positive impact
on informal networking. If the bureaucratic complexity is considered then it has been determined
that it contributes in informal networking because due to bureaucratic complexity employees are
not able to get required information or knowledge to accomplish the task. Thus, this encourages
them to find out the alternative ways and informal networking take place (Vermeesch et al.,
2013).
The second reason or obstacle that has been mentioned in the paper is conflict of personalities. It
has been examined that due to personality conflicts informal networking take place. This
conclusion of Jewel and Underwood has been analyzed, and comments in the support of the
conclusion have been extracted from prior and new research. Such as Sarkwa (2011) in his thesis
also mentioned conflict of personality as a factor that encourages the informal networking and
allows employees to make personal relations. He took two organizations into consideration and
similarities between the comments elaborate that in all organization conflict of personality result
in the same approach (informal relations) towards knowledge attainment. For this reason, the
findings of this paper can be applied to all organizations.
As Jewel and Underwood concluded that technical complexities encourage informal networking;
literature has been analyzed in this regard and comments in the favor of the conclusion has been

6. Impact Of Informal Networks On Knowledge Management Strategy: Critique Review 6
identified. According to Sosa, Gargiulo and Rowles (2010), the development of complex product
also include technical complexities. In addition, despite the existence of formal networking
structure, informal networking mechanism is required that facilitate the communication and
enhance the knowledge, and they chose the organization that makes the engine of commercial
aircrafts. The chosen organization is entirely different from the respondents’ organization of the
paper and the commonality of comments on technical complexity of two different sectors evident
that the findings of Jewel and Underwood are applicable to general mean and not restricted to
any particular country and organization.
Rusinovic (2006) in his book mentioned that in order to acquire scarce resources people utilize
their informal networks, which supports the conclusion of Jewel and Underwood. In chosen
paper it has been determined that even organization has formal knowledge sharing system;
employees seek to take help from their informal networking, and this can be evident from other
researchers. Top management executives also prefer to take advices and share knowledge with
their structure of informal sharing, and this happens because formal sharing does not allow
resolving the problems creatively. However, due to informal networking, external knowledge
take place in organizations that place innovative and fresh ideas, and organizations are more
efficient and effective in problem solving techniques (Al-Bastaki, 2013).
The major factor due to which organizations do not introduce formal knowledge sharing
strategies is the security issues. Jewel and Underwood have mentioned that contractors due to
security issues do not have access to formal database and even employees. This is the issue that
can only be resolved by the organization. The effectiveness of information or knowledge sharing
is dependent upon the infrastructure of the organization for this reason organizations in order to
enhance the effectiveness of formal knowledge sharing must enhance the security of the

7. Impact Of Informal Networks On Knowledge Management Strategy: Critique Review 7
database. Informal networking does not have any negative impact on the strategy of formal
knowledge management strategy. However, organizations must design the knowledge
management strategies by considering the informal networking activities of employees. The
reason is that such environments that have both informal and formal knowledge sharing
strategies are more successful as compared to organizations that have formal knowledge sharing
strategy.
In chosen paper, it has been encountered that informal information strategy is the preferred
strategy and taking place more rapidly in the organization. This statement is partially true for
other organizations because informal knowledge sharing is preferred and rapidly increasing.
However, organizations just not only rely on informal knowledge sharing but their knowledge
management strategy include the combination of both informal and formal knowledge sharing
techniques (Staplehurst and Ragsdell, 2010). In addition, it has been determined that to be
successful it is essential that companies provide facilities to facilitate the formal and informal
communications. The reason due to which organizations encourage informal knowledge sharing
are; remarkable effectiveness of learning in the workplace and due to the remarkable benefits of
cost (Azudin, Ismail and Taherali, 2009).
Findings of paper revealed that after leaving the organization employees within the structure
maintain their informal links in that organization. It cannot be supported or contradicted by any
literature, but logically this point is valid and from practical experiences. It has been observed
that Jewel and Underwood conclusions are based on facts, and it happens in multiple
organizations. In their studies, it has been concluded that employees that are with the
organization from long time are more involved in knowledge sharing that is informal in nature.
However, this is not true in all organizations, because people who are not old in organization

8. Impact Of Informal Networks On Knowledge Management Strategy: Critique Review 8
may involved in informal knowledge sharing in order to enhance the knowledge and get
objectives (Azudin, Ismail and Taherali, 2009). In chosen paper only two organizations has been
considered; more organizations from different industries can be considered to enhance the
authenticity of the results. This paper (Impact of informal networks on knowledge management
strategy) is a good effort and contributed to under-researched work. No clear comment has made
on the impact of informal networks on knowledge management strategy (either positive or
negative). However, it has been mentioned that knowledge management strategy must be
formulated by taking informal knowledge sharing activities of employees into consideration that
make them feel comfortable.
It is recommended that more efforts are required clearly to identify the impact of one variable on
other must the done. The topic is under-researched, and efforts in this domain will make
significant contributions to understandings and reveal the different facts. Wider range of data
will enhance the authenticity of the research.
CONCLUSION:
A limitation of this study is that the sample size is dependent upon very few respondents that are
not appropriate to make worthwhile conclusion. It has been identified that the paper took
significant step an elaborated the informal knowledge sharing idea and most importantly its
impact on the strategy of knowledge management that contributes immensely to the
understandings of knowledge-based organizations because this topic was under-researched and
required contribution. However, four important organizational obstacles such as technical
complexity, bureaucratic complexity, personality conflict, and acute resource scarcity has been
mentioned as motivator of informal networking and from the analysis of researchers and

9. Impact Of Informal Networks On Knowledge Management Strategy: Critique Review 9
literature, comments in the support of these findings has been analyzed and found that such
complexities motivate employees to seek help from personal relations. The chosen paper also
elaborated that due to system security issues organizations do not prefer to give access to
employees to the knowledge sharing database, and this is also have been evident by the
literature. In this paper, it has been determined that informal networking is expanding rapidly and
preferred more by organizations and it has been proven by literature that importance of informal
knowledge sharing is increasing but rather to prefer one strategy, organizations prefer to have the
combination of both formal and informal strategies. The reason for the implementation of
informal strategy is to be cost effective and enhance the learning of the organization.

10. Impact Of Informal Networks On Knowledge Management Strategy: Critique Review 10
References
Al-Bastaki, Y. (Ed.). (2013). Building a Competitive Public Sector with Knowledge Management
Strategy. IGI Global.
Azudin, N., Ismail, M. N., & Taherali, Z. (2009). Knowledge sharing among workers: a study on
their contribution through informal communication in Cyberjaya, Malaysia. Knowledge
Management & E-Learning: An International Journal (KM&EL), Vol.1, no. 2, pp. 139-162.
Goldhaber, M. (1988). Organizational communication. Brown & Benchmark.
Rusinovic, K. (2006). Dynamic entrepreneurship: first and second-generation immigrant
entrepreneurs in Dutch cities. Amsterdam University Press.
Sarkwa, J. (2011). Informal Relations And Its Effects On Industrial Organizations (Doctoral
dissertation, Department of Sociology and Social Work, Kwame Nkrumah University of Science
and Technology). Available from: http://ir.knust.edu.gh/bitstream/123456789/3998/1/Final.pdf
[Accessed 5th February, 2015]
Serban, A. M., & Luan, J. (2002). Overview of knowledge management. New Directions for
Institutional Research, vol. 113, pp. 5-16.
Sosa, M., Gargiulo, M., & Rowles, C. (2010). Informal Communication Networks and the
Attention to Technical Interfaces in Complex Product Development. Available from:
http://www.insead.edu/facultyresearch/research/doc.cfm?did=48788 [Accessed 5th February,
2015]
Staplehurst, J., and Ragsdell, G. (2010). Knowledge Sharing in SMEs: A Comparison of Two
Case Study Organisations. Journal of Knowledge Management Practice, Vol. 11, no. 1.

11. Impact Of Informal Networks On Knowledge Management Strategy: Critique Review 11
Vermeesch, I., Craps, M., Dewulf, A., & Termeer, C. (2013, June). A relational perspective on
leadership in multi-actor governance networks for sustainable materials management.
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http://www.icpublicpolicy.org/IMG/pdf/panel_43_s1_vermeesch.pdf [Accessed 5th February,
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