Taking dialogue to be a social practice within organizations, this paper reflects and asks: under what circumstances does dialogue work as a process that can promote or hinder knowledge development in organizations? In response, it extends organizational perspectives by situating knowledge construction through interactions, especially dialogue and conversation. The key issue is that humans communicatively constitute knowledge by way of interaction and social practices that vary according to their social-historic contexts (see Ashcraft, Kuhn & Cooren 2009; Putnam & Nicotera 2009). The paper presents the case of a Brazilian Innovation unit charged by the government to incorporate knowledge dialogue dynamics in organizational change processes. Through this case, it illuminates ways in which communication constructs and upgrades knowledge within organizational environments.