Knowledge across Organisational Boundaries

Organisational boundaries can be construed as the demarcations between an organisation and its environment. There are four distinct conceptions of boundaries such as Efficiency, Power, Competence and Identity.

The Efficiency Conception

• ·         Explores whether a transaction is governed by a market or on organisation. The organisation is seen as a set of governing mechanisms and boundaries are set at a point that minimises the cost of these mechanisms.

The Power Conception

• ·         Focuses on the sphere of organisational influence. This conception draws on the industrial organisation tradition and the assumptions is that the organisational members exert powers of influence outside the firm in the external environment and markets.

The Competence Conception

• ·         Focuses on the choice of organisational resources needed with different dynamic environment. This view is informed by contingency theory and the resource based view of the firm.

The Identity Conception

• ·         Seeks to explore who the organisation is and whether coherence exists between an organisation’s identity and its activities.
• ·         This conception of boundary reflects all organisational activities consistent with organisational identity.