Here's an article from Bloomberg BusinessWeek that discusses at a very high level some of what you cover in your post:

http://www.businessweek.com/managing/content/aug2010/ca20100816_848695.htm

The point, I think, is to have the employees feel as close to the action as possible. Linking this notion of employee engagement with PKM, Mikulincer (1997) did a study that showed that workers in a secure attachment environment were more likely to seek new ideas and information, and process them more effectively, than insecure persons. The study was done a while ago but I think its results retain some salience in today's world.

Reference

Mikulincer, M. (1997). Adult Attachment Style and Information Processing: Individual Differences in Curiosity and Cognitive Closure. Journal of Personality & Social Psychology, 72(5), 1217-1230. Retrieved from Business Source Complete database.