This paper aims to explore Castells’ proposition that the innovation process is being progressively intensified by developments in technological and organizational forms – that knowledge is being applied to the generation of knowledge. The paper focuses on the emergence and implementation of knowledge management (KM), and its particular application in Ebank. A global approach to KM focussing on intranet technology proved unsuccessful. In explaining this outcome, the paper focuses on the constraints posed by the social embeddedness of knowledge as having a crucial effect. In this case, such embeddedness seemed to be linked to the lack of extensive intra‐organizational networks and the disparate identities developed by the different business units of the firm. These findings highlight several implications for KM's role in the innovation process.
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