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66 Chapter 3

Tacit knowledge to Explicit knowledge

Socialization Externalization
Tacit knowledge

from

Explicit knowledge
Internalization Combination

Figure 3.1
The Nonaka and Takeuchi model of knowledge conversion

Organizational knowledge creation, therefore, should be understood as a process that organiza-
tionally amplifi es the knowledge created by individuals and crystallizes it as a part of the knowl-
edge network of the organization. (p. 59)

Knowledge creation consists of a social process between individuals in which knowledge trans-
formation is not simply a unidirectional process but it is interactive and spiral. (pp. 62 – 63)

Knowledge Conversion There are four modes of knowledge conversion, as shown in
fi gure 3.1 :

1. From tacit knowledge to tacit knowledge: process of socialization
2. From tacit knowledge to explicit knowledge: process of externalization
3. From explicit knowledge to explicit knowledge: process of combination
4. From explicit knowledge to tacit knowledge: process of internalization
Socialization (tacit-to-tacit) consists of the sharing of knowledge in face-to-face,
natural, and typically social interactions. This involves arriving at a shared understand-
ing through the sharing of mental models, brainstorming to come up with new ideas,
apprenticeship or mentoring interactions, and so on. Socialization is among the easiest
forms of exchanging knowledge, because it is what we do instinctively when we gather
at the coffee machine or engage in impromptu corridor meetings. The greatest advan-
tage of socialization is also its greatest drawback: because knowledge remains tacit, it
is rarely captured, noted, or written down anywhere. It remains in the minds of the