Knowledge is a human construction. Everything people do and create, including their organizations is thus human constructed. The process of knowledge construction is as much a part of an organization's distinctiveness as is its knowledge content. Knowledge binding is one model for studying this process. Knowledge binding refers to the relative distance between a specification and its implementation. This distance governs the very character of an organization: its structure, processes, culture, and so on, and is largely responsible for business success or failure. Comparatively stable nineteenth and twentieth-century business environments favored early knowledge binding - long lead-time between specification and implementation, and thus gave rise to organizations with predictable characteristics, such as hierarchies, waterfall software development models, management by objectives, top-down management processes, etc. In contrast, the dynamicity of twenty-first century business environment requires late knowledge binding (i.e., short distance and time between specification and implementation), and gives rise to organizations with a completely new set of characteristics.