This research investigates knowledge exchange in an organization
applying hierarchical mechanisms, and the influence of social
interactions on knowledge flow across different levels of analysis. The
research uses a qualitative case study method of an Indonesian
automotive component-making company, applying semi-structured
interviews, observations, and focus groups at interorganizational,
internal company, and shop floor levels. The research main finding is
that in an organization applying hierarchical mechanisms, social
interactions that exist at one level are able to influence interactions
at other levels, and that the interactions can both facilitate and
inhibit knowledge exchange across levels and boundaries. The application
of any formal mechanism at interorganizational level needs to consider
both the dynamics operating at social level and the potentially
disparate and contradictory effects it may have if its aim is to promote
knowledge flow across levels. The application of in-depth exploratory
case study research contributes to the conceptualization of
relationships between knowledge exchange, social interactions, and
governance mechanism.