Organisational downsizing and knowledge sharing

Organisational downsizing has proven a popular strategic intervention in the new globalised competitive business environment. Yet surprisingly little research has been conducted in the knowledge management domain to help scholars and managers better understand the effects of downsizing on organisational knowledge sharing. This paper reports some of the key findings from an interpretive investigation of organisational knowledge sharing in a division of large Australian organisation where downsizing had recently taken place. The findings reveal structural and cultural effects stemming from downsizing, and shows how these effects influenced knowledge sharing. The paper provides sets of knowledge-based impacts of downsizing on (1) organisational structure and (2) organisational culture at the case organisation. Important implications for knowledge management research and practice are discussed.