The processes of innovation and knowledge creation remain significantly under-theorised in Organisation Studies. This paper moves towards redressing this situation by focussing on the dynamic and complex nature of social processes. By intersecting complexity sciences and personal construct psychology, the authors develop a view of social process as the perpetual construction and reconstruction of identity through micro-interactions. This insight is then translated into a four-strand model of identity construction where the strands are Social Practice, Expert Practice, Customary Practice, and Anticipated Practice. The utility of this model is then illustrated with case data from two small, highly innovative manufacturing companies. Knowledge Management and the so-called Knowledge Economy have over recent years become a major focus of inquiry for organisational scholars. The processes of knowledge creation and organisational innovation necessarily lie at the very heart of this inquiry, but theoretical understanding of these key issues is largely confined to static classifications an
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