Employees are a key (and often overlooked) source of strategic insight
Originally posted on The Horizons Tracker.
When the world is shifting fast, companies are often told to bring in outside experts. However, new research1 from Radboud University suggests that they should start by listening to their own employees.
The study looked at companies in four Eastern European countries as they moved from planned to market economies between 1999 and 2002—a time of major upheaval. The findings offer useful lessons for today’s firms facing uncertainty from wars, political instability, or rapid advances in technology.
Where knowledge resides
The researchers grouped sources of knowledge into three types: employees, top managers, and outsiders like consultants or foreign partners. Of these, employees turned out to be the most useful during turbulent times. “They know what’s happening on the ground and where the biggest problems are,” the researchers write. Managers then play a key role by acting on those insights and driving change.
Outside experts were less helpful. They often don’t understand a company’s day-to-day reality and can’t react quickly enough when things keep changing. In chaotic environments, being close to the problem matters more than having an outsider’s perspective.
The study also highlights the importance of focus. Employees spot problems early because they live them. Managers know how to get things done inside the company. Together, they form a fast and flexible response team. External advisors, no matter how smart, can’t match that speed or context.
Knowledge isn’t fixed—it needs to be updated constantly, especially when the world around a company is shifting. That’s why internal knowledge is so valuable: it changes with the company, not behind it.
Outside help can still be useful, especially in calmer times. But when uncertainty is high, companies should trust the people who know them best—their own.
Article source: Employees Are A Key (And Often Overlooked) Source Of Strategic Insight.
Reference:
- Goudsmit, M., Shinkle, G. A., & Kriauciunas, A. P. (2025). How knowledge-source utilization influences adaptation success in turbulent environments: Evidence from transition economies. Australian Journal of Management, 03128962251319725. ↩
