This paper links the current preoccupation with narrow framings of 'knowledge management' with wider deeply-embedded rationalist scientific principles that underpin dominant management narratives. In light of the complexities managers face in the post-industrial context, this reductionist model represents a barrier to achieving sustainable innovative business processes. An alternative integrated theory-practice framework is posited catering to contemporary unstable and unpredictable organisational conditions. As a relationships-centred sensibility the perspective has potential to stimulate capacity for creativity in terms of people management and operational processes. Replacing the outdated 'work ethic' concept, it is represented operationally as a 'serious-play' ethic which caters to the contradictory and nuanced embodied character of organisational living. The model is demonstrated by reference to particular exemplary avant-garde companies. Knowledge-management, relationalism, embodiment, innovation, pragmatic-philosophy