Article summary for Week 7, Class 9

Verona, G., Prandelli, E. & Sawhney, M. (2005). Innovation and virtual environments: toward virtual knowledge brokers. Organization Studies. 27(6), 765-788.

Summary (334 words):
This article aims to explore impact of virtual environment and knowledge on innovation in organizations. By examining the influences of virtual environment on innovation and knowledge management processes, the authors has provided the concept of virtual knowledge broker and its advantages on the management of innovation.
To maintain competitive advantages, firms need continuously innovate. To innovate, they need to improve their knowledge resource, and constantly update and search for new knowledge. The authors have acknowledged external actors as an importance source of knowledge and reminded that these external actors can be customers or knowledge brokers. Firms can interact directly with customers to acquire their opinions or dealing with knowledge of customers indirectly using knowledge brokers.
Knowledge broker is not only the intermediator between firms and the source of knowledge. It can transport ideas between unconnected industries and therefore stimulate innovation. The explosion of the Internet has facilitated the connection between customers and knowledge brokers. It enables the knowledge brokers to receive feedback from the diverse groups of users which significantly support new product development activities. Moreover, the Internet has enabled knowledge brokers to generate and maintain large amount of strong and direct ties without trade-off with richness of information.
While firms can also maintain direct relations with customers by using physical channel or virtual environment, knowledge from this sources are not enough for innovation. Customers are not likely to share their personal information and private life in companies’ websites. Moreover, companies will not be able to maintain the relationships with the large amount of users from the industry, who may not be their customers. Therefore, knowledge brokers will overcome this gap and play an important role in the innovation process.
In general, virtual knowledge broker has advantages of knowledge broker and virtual environment. It can absorb knowledge from a huge number of customer ties and support the innovation activity within different industries. Though it had difficulty dealing with tacit knowledge, firms who seek continuous innovation should consider it as an important source of knowledge.

Review (93 words):
This article has provided insight into the knowledge broker in the innovation context. It has an interesting approach in finding source of knowledge and reminds benefit of virtual environment in the knowledge management.
This paper is successful in explaining the role of virtual environment and knowledge broker in the innovation activity. However, while using many arguments for knowledge broker, the concept of virtual knowledge broker deserves more words and practical evidences. The authors should provide audience with a definition of virtual knowledge broker, and more importantly the current status of this interesting model.