It is argued in this article that the main problem for the modern, globalis
ed firm is not one primarily of the unequal distribution of information, bu
t rather of the difficulty of mobilising and integrating fragmented forms o
f localised knowledge. In such a context, the role of new means of telecomm
unication and cooperative working is investigated. It is shown that network
ing favours a transparent mode of governance characterised by inter-linked
actors and their continuous stimulation. Thus, the conceptualisation of the
globalised firm as a collection of competences offers a framework for anal
ysing governance mechanisms, involving the issue of incentives.