The Effect of Knowledge Economy on Organizational Environments: Do the Governance Mechanisms Differ according to Institutional and Technical Environments?

Abstract:

Nowadays, important changes are occurring in the technological structure of organizations. The most remarkable change is the widespread usage of Internet, which is a new information and communication technology, in the organizational field. Internet increases the competition by developing international trade, and besides it decreases the transaction costs and contributes to the diffusion of knowledge. On the other hand, most of the transactions like, bank transactions and commerce can be done via Internet online. Such changes depending on Internet, affect the structures and functions of the organizations, since the organizational structure is designed compatible to the communication needs dependent on the technology. In some cases, however, the communication technologies can be developed in consistence with the organizational structure. For this reason, it occurs that there is no clear distinction between the technical and institutional environments of the organizations. The information and communication technologies dependent on Internet is both a legitimacy source for the organizations and an efficiency tool, therefore, it is not possible for the organizations to give up either of them. Accordingly, the technical and institutional environments of the organizations are interpenetrated in every condition, and therefore both of the environments should be taken into consideration together in the organizational studies.

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