Knowledge that an organization gains and did not have in its repertoire before is termed new organizational knowledge. The emergence of such new knowledge can result from a serendipitous event, in which knowledge is discovered unintentionally. One example is the discovery of penicillin, which resulted from observing the antibiotic effects of some molds during an unrelated experiment. However, firms can and do not rely on this. A firm can work several ways in order to gain new knowledge intentionally. On one hand, knowledge is recruited by acquiring experts or organizational units or by cooperating with partner firms, thus accessing and gaining new knowledge (exploitation of knowledge that exists outside the organization). On the other hand, firms engage in a process of creating new knowledge (exploration of knowledge) by building upon the existing intraorganizational knowledge, utilizing impulses and sparks from the outside. The concept of organizational knowledge creation pertains to the latter way, the exploration of knowledge, as knowledge exploitation utilizes knowledge that has emerged by previous knowledge creation (Nonaka, 2004, 14).
A theory of knowledge creation was introduced by Nonaka in 1994. It is based on Polanyi's introduction of tacit knowledge in 1966. According to Nonaka's theory, knowledge is created through the conversion between tacit knowledge, which is personal and context-specific, and explicit knowledge, which is easily expressed and codified. This assumption allows the postulation of four different “modes” of knowledge conversion: socialization (tacit to tacit), externalization (tacit to explicit), combination (explicit to explicit), and internalization (explicit to tacit).
Socialization comprises the conversion of tacit knowledge. Because tacit knowledge cannot be communicated or passed on to others easily, it is characterized by an intense interaction between individuals.
Knowledge Management
Firms around the world are entering a new era of business competition. Globalization of supply chains and the escalating pace of technological change have set the stage for the emergence of global network competition. In network competition, firms must not only compete with other firms for favorable positions within a trading network but also collaborate with trading partners to secure competitive advantage for their global supply chains. The ability to win in network competition hinges on competent management of knowledge resources. Indeed, knowledge management is rapidly becoming a critical core competence for achieving a sustainable competitive advantage. However, the efforts of many firms to develop knowledge management competence have been disappointing.
A key reason for the failure of knowledge management initiatives is that few managers understand either the nature of knowledge or how to manage it. Many managers mistake information processing for knowledge management.
Social Networks
Networking, as differentiated from merely community or relationship, also can include a weblike structure connecting people with a common interest or goals. Social networks can include group issues (although each member may have individual desires or needs to be served) and a system of shared values—a kind of subculture within greater mainstream culture. For example, bridge night, Bible studies, and bowling alleys were key ingredients in the American social networks in the ...