ABSTRACT
This chapter draw out lessons to establish rich ties and make them work. It explains that the multiplex combination of formal and informal relations in an organization's network structure in the form of rich ties proves to be a qualitatively different foundation for innovative knowledge transfer from ties that are formal or informal-only. Informal relations between individuals augment formal relations in getting things done. Formal relations have been a historical focus of research among management scholars and sociologists, albeit without a strong emphasis on the transfer of innovative knowledge. The rich ties for innovation on study of two separate companies namely, an established European production company or Greenwood, and the other a leading European financial service provider or Redrock. Innovation activities at Redrock are focused around the theme of innovative payment methods, which is receiving significant attention by corporate management. Greenwood is organized according to a divisional structure.
