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KNOWLEDGE-INTENSIVE FIRMS 29

>> INTRODUCTION
The first chapter introduced and explained the notion of ‘knowledge work’
and ‘knowledge worker’. Here we focus our attention on firms where the
majority or even the entire workforce consists of knowledge workers – hence
the term ‘knowledge-intensive firm’ – and consider the distinctive manage-
ment challenges posed by this particular type of ‘expert’ workforce. Even
today in what many refer to as the ‘knowledge based economies’ of the devel-
oped world, knowledge workers are still a relatively scarce resource within
the labour market as their particular knowledge, skills and expertise are not
generally widely available (Horwitz et al., 2003). Knowledge workers there-
fore tend to have considerable choice and latitude regarding their place of
work – particularly within knowledge-intensive firms – and management are
required to find ways of attracting and perhaps more importantly, retaining
an expert workforce as the costs of replacement in terms of time and money
are significant.
Knowledge-intensive firms tend to be service-based organizations often com-
peting in their respective sectors based on their ability to solve complex problems
and provide solutions for clients. Law firms, accountancy practices, management
consultancies, investment banks, architectural practices, advertising and public
relations agencies are all good examples of knowledge-intensive firms. Many of
these types of firms tend to organize in distinctive ways in order to (a) attract and
retain knowledge workers and (b) promote innovation and in some instances cre-
ativity. Sustaining an expert workforce who are willing to create and share knowl-
edge is crucial if knowledge-intensive firms are to achieve competitive advantage
in the long term. Yet it is the workforce in these firms that to a large extent owns
the means of production, not management. Developing and, more importantly,
sustaining an expert workforce is therefore possibly the most important strategic
issue that confronts management within these firms over time.
In this chapter we are going to consider the structural and cultural condi-
tions which, in combination, support the management of knowledge work and
promote the recruitment and retention of knowledge workers in knowledge-
intensive settings. In so doing we focus on the process and practice of knowledge
work. We illustrate the importance of the interaction and integration of these
organizational elements through the case of ScienceCo. The distinctive organi-
zational arrangements that developed in this firm, characterized by an atypical
culture, serve as a useful example of the importance of creating an enabling
context for the conduct of knowledge work – particularly the design of core work
processes which involve creativity and innovation.

>> TYPES OF KNOWLEDGE-INTENSIVE FIRM
Alvesson defines knowledge workers as ‘qualified labour’ (Alvesson, 2004,
p. 8). However, this is a somewhat broad definition. Here we use the term
‘knowledge worker’ to encompass both professionals and groups with other

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