Through a broad analysis using sociotechnical systems (STS) theory, the author provides an insight into the organizational dynamics of a successful knowledge-based organization. STS theory does not presuppose a definition of success but instead looks for the presence of factors, such as community and internal commitment, that generally allow an organization to adapt successfully to conditions in its internal and external environment. According to STS theory every organization is made up of a social subsystem (the people), a technical subsystem (of tools, techniques, and knowledge), and an environmental subsystem (of which customers form a part). The success of the organization depends on the fit and balance between these three subsystems. If, for example, the technical system is overemphasized, STS theory would lead us to believe that opportunities will be lost for creating an optimized organization. To understand the dynamic of the system, all viewpoints must be considered, including those of workers, managers, suppliers, customers, and community.