What is a knowledge network primarily based on?

Study for the Arizona State University MGT302 International Business Exam. Prepare with flashcards and multiple choice questions, featuring hints and explanations for each. Get exam-ready with ease!

A knowledge network is fundamentally based on informal contacts and information systems. This structure emphasizes the importance of relationships and the informal flow of information that occurs between individuals within an organization or across organizations. Such networks harness personal connections, shared experiences, and collaborative interactions, which facilitate the exchange of knowledge, ideas, and expertise more effectively than rigid formal systems.

In a knowledge network, individuals often rely on their personal relationships to gather insights and information that may not be captured through traditional channels. The emphasis is on collaboration and the shared understanding that arises from informal conversations, peer interactions, and social exchanges. This dynamic fosters innovation and enhances problem-solving capabilities since information can be shared more freely and responsively.

The other options, while relevant in different contexts, do not capture the essence of what distinguishes a knowledge network. Formal rules and procedures, for instance, tend to stifle creativity and limit communication to strictly defined pathways. Similarly, an organizational hierarchy can create barriers to open communication, leading to knowledge bottlenecks. Centralized communication strategies can restrict the dissemination of information to a select group, contrary to the decentralized and collaborative nature of a knowledge network. Thus, the focus on informal contacts and information systems is what makes choice C the most appropriate in this context.

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