Strategies for Managing Knowledge across Boundaries: the Utilization of Highly Skilled Contractors

Networks which span organizational boundaries are an important source of knowledge. According to literature they provide flexible access to new knowledge. This paper aims to explore and understand the utilization of highly skilled contractors with regards to organizational knowledge. Based on the theory of social capital and empirical data a grounded theoretical framework is developed. The framework describes contingencies for utilizing contractors' knowledge. Furthermore, we argue that organizational knowledge is mainly created by connecting knowing individuals. In this context our findings indicate that firms embark on strategies of weak and strong ties when utilizing knowledge within a contractor network. These strategies are balanced in the course of time and according to the dynamics of the environment.