How Can Knowledge Leakage be Stopped: A Socio-Technical System Design Approach to Risk Management

This article discusses how leakage of knowledge can occur in value creation networks embedded in knowledge-intensive firms, and how a collaborative approach can be utilized to minimize risk and increase sustainability. For knowledge to be preserved from unintentional outflow, its confidential nature and description must be understood at all levels. Loss of knowledge can occur at any point; whether it is through the process of consultation or when employees do their work. Forfeiture of information can be unintended or a planned effort. To prevent such unintended leakage, it is important to develop a shared mindset among employees to minimize the risk. The socio-technical system design is a philosophical framework that enables companies to simultaneously consider both ethical and technical systems in order to best match the technology and the people involved. History has shown through a number of situations that firms that failed to comprehend new opportunities were often limited by stakeholders' thoughts and actions.