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A Dynamic Theory of Organizational Knoledge Creation

(1) This paper by Ikujiro Nonaka provides a framework for understanding organizational knowledge creation through the conversion between tacit and explicit knowledge. (2) Nonaka describes four modes of knowledge conversion - socialization, externalization, combination, and internalization - that can create new knowledge. He also presents a "spiral of knowledge" model showing how knowledge is continuously expanded and converted through these four modes. (3) The paper discusses how organizations can facilitate knowledge creation by enabling knowledge sharing and development at the individual, group, and organizational levels, and proposes two management models - "middle-up-down" and a "hypertext organization" - to effectively manage the knowledge creation process.

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57 views6 pages

A Dynamic Theory of Organizational Knoledge Creation

(1) This paper by Ikujiro Nonaka provides a framework for understanding organizational knowledge creation through the conversion between tacit and explicit knowledge. (2) Nonaka describes four modes of knowledge conversion - socialization, externalization, combination, and internalization - that can create new knowledge. He also presents a "spiral of knowledge" model showing how knowledge is continuously expanded and converted through these four modes. (3) The paper discusses how organizations can facilitate knowledge creation by enabling knowledge sharing and development at the individual, group, and organizational levels, and proposes two management models - "middle-up-down" and a "hypertext organization" - to effectively manage the knowledge creation process.

Uploaded by

NorhajamiahMohdHanafiah
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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A DYNAMIC THEORY OF

ORGANIZATIONAL KNOLEDGE CREATION


Author: Ikujiro Nanoka
Introduction
This paper by Nonaka provides an aerial view of the organizational knowledge
creating processes through and within the perimeters of tacit and explicit knowledge with an
applied framework on facilitating its dynamic creation. He explains about knowledge
processing and creation in an organization and brings us to a different paradigm, comparing
what was, which relates to information processing and problem solving and what is more
important, in building an active and dynamic understanding of the organization.
With innovation being a key guidance, Nonaka stresses that organizations should be
looked at by the way how it creates information and knowledge not by the way it processes
them. With organization knowledge creation in mind, the dynamics of the organization
knowledge creation process are examined and with practical models to manage the process
more effectively.

Basic Concepts and Models of Organizational Knowledge Creation


Nonaka discuss Michael Polanyis basic concepts and models of organizational
knowledge creation, discussing on the nature of information and knowledge, then drawing a
distinction between tacit knowledge of a personal quality which is hard to formalize and
communicate (defined as analogue) and explicit knowledge, which is transmittable in formal,
systematic language (defined as digital). Tacit knowledge is that which is intuitively
understood, is fully actionable, but is not yet formalized or codified. Explicit knowledge is
that which has been reflected and articulated. It begins with the most basic (the individual)

and moves through stages (group, organization, inter-organization) toward the most
comprehensive.
Knowledge and Information
The paper adopts a definition of knowledge as justified true belief, considering
knowledge as a personal belief with an emphasis on the importance of justification of
knowledge. In a nutshell, knowledge is created and organized by the very flow of
information, anchored on the commitment and beliefs of its holder. That has direct relation to
human action and deeply rooted in the value systems of individuals.
The author also emphasizes that information is essential for initiating and formalizing
knowledge and can be viewed from two (2) perspectives i.e. 1. Syntactic, which focuses on
the volume of information regardless of its meaning or value. 2. Semantic, which centre on
the meaning of information. From the above, the semantic aspect of information is more
relevant as it focuses on conveyed meaning and key in creating knowledge.
Two Dimensions of Knowledge Creation
Nonaka discuss in details on the description of the differences between tacit
knowledge and explicit knowledge. Tacit knowledge is very individually, based on a persons
view, and therefore hard to codify and both of it can be cognitive and technical which thought
of patterns and structures and finally it is related with skills. It is the sharing of tacit
knowledge that, more than anything else becomes the catalyst for the generation of new
knowledge.
Commitment on the Part of the Knowledge Subject: Intention, Autonomy, and
Fluctuation
Nonaka identify three basic factors that induce commitment in organizational setting
as intention, autonomy and a certain level of environmental fluctuation. These three basic

factors identified after Polanyis contention that commitment underlies human knowledge
creating activities and is important in promoting of new knowledge within the organization
and this is the ultimate purpose of the thought/value system. Intention is how individual form
their way to the world and try to make sense of their environment. It is not just about the state
of mind, but rather an action oriented concept. Autonomy is the capability of individual,
group and organization. Where it is absent, knowledge creation does not occur or never
linked with intentionality. Fluctuations is internal to individual and has close link with
external world. Chaos or discontinuity can create new patterns of interaction between
individuals and their environments. When breakdowns occur, individuals has doubt on the
value of habits and regular tools, which might strengthening of commitments.

Knowledge Conversion and The Spiral of Knowledge


Nonaka quotes Andersons ACT model of knowledge conversion and the model is a
continual process of conversion of what Anderson describes as declarative knowledge
(explicit knowledge: codified, articulated, and propositional) into procedural knowledge (tacit
knowledge: technical, methodological, intuitive). Anderson describe this process is
unidirectional (declarative to procedural). However, Nonaka modifies the Andersons model
by including a recursive process from tacit to explicit and back to tacit knowledge.
Nonaka presenting the four modes of knowledge conversion that can create new
knowledge independently. The four patterns are: (1) Socialization - from tacit knowledge to
tacit knowledge, (2) Externalization - from tacit knowledge to explicit knowledge (3)
Combination - from explicit knowledge to explicit knowledge, (4) Internalization - from
explicit knowledge to tacit knowledge. All four can be used in the organizational setting in
order to maximize knowledge creation.

From Metaphor to Model: Methodology of Knowledge Creation


Metaphor is one of the effective methods to convert tacit knowledge into explicit
knowledge. The essence of metaphor is understanding and experiencing, enabling us to
experience a new behavior by making references from the model of another behavior.
Metaphor it focuses on macro continuity and overlap and does not seek a point by point
correspondence between two thought systems. It is often more symbolic than descriptive and
intentionally.
The Process of Organizational Knowledge Creation
Nonaka approach this topic by assessing the following processes; (1) Enable individual
knowledge to be enlarged, amplified, and justified within an organization. According to
Nonaka, there are two important factors in knowledge enlargement. i) is the variety of
experience. The greater the variety of experience across the system, the greater the potential
for knowledge enlargement. ii) is the knowledge of experience, which boils down to
hands on experience.
(2) Sharing tacit knowledge and conceptualization, i.e. drawing an organizations mental
outlook. After knowledge expansion is taking place, the organization must make an effort to
share the knowledge broadly within the organization. This requires three steps. First, build
an organizing team which consists of core members (those senior in organizational
experience) and secondary members. In addition, the team should consist of other parties,
internally (e.g. different department, levels) and externally (e.g. clients, consumers,
suppliers). The team creates knowledge in two ways: by creating mutual trust and by the
creation of a shared implicit perspective between the members of the team. The second
step, will be sharing the knowledge among the members. The process is intentional and
members of the team can share the tacit knowledge in which will turn to explicit knowledge
through constant discussion between the members. The third step is conceptualization,
4

whereby the members of the team, through dialectic (the intentional setting of personal
systems in apposition and sometimes in opposition to each other), forge a common
perspective.
(3) Crystallization into some concrete form such as product or a system. This process moves
the shared perspective into some new intentionality and therefore some new action. It will
often result in a new product or a new strategy. The most important for the knowledge to be
retained it must crystallize.
(4) The justification to determine the quality of the created knowledge and standards for
judging truthfulness. In business, standards include cost, profit margin and the products
contribution to firms development.
(5) Integration into organization knowledge-base which comprises a whole network of
organizational knowledge must be quick and widespread. Lastly, new knowledge need to be
disseminated in all level of the organization and set as a culture of the organization.
Managing the Process of Organizational Knowledge Creation: Creative Chaos,
Redundancy, and Requisite Variety
The main objective is to complement the aspects of individual commitment to the knowledge
creating process with organization-wide enabling conditions for effective knowledge
creation. Two management models are proposed namely, (1)middle-up-down management
which relates to management style is suitable for promoting the efficient creation of
knowledge in business organizations, and (2) a hypertext organization which centers on
organizational design with a strategic ability to acquire, create, exploit, and accumulate new
knowledge continuously and repeatedly.

Conclusion
Based on the above article, we are taken to a different paradigm of an organization
knowledge creation which could be applied in most organizations. The theoretical framework
developed provides us with a few dimensions of knowledge creation, supported by two
operational models for the facilitation of the dynamic creation of appropriate organizational
knowledge. The author has provided a simple and practical approach to organizational
knowledge creation.

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