Virtual organizations, as all organizations, need to continually produce and share
knowledge including using knowledge gained from past projects to solve current
projects (Cohen & Sproull 1991). The knowledge is placed in and taken from
organizational memory. Organizational memory is the data, information, and
knowledge from the past that can be used on present problems (Walsh & Ungson
1991). The process for updating and using organizational memory is organizational
learning (Huber 1991). Organizational learning is the naturally occurring process,
where as knowledge management is the proactive and purposeful management of the
organizational learning process. Knowledge management functions of creation,
assimilation, and dissemination are the proactive methods for updating and using
organizational memory. For knowledge creation, the organization must have a subprocess
to connect the planned actions with the results to learn from the project.
Knowledge assimilation is the sub-process to collect the created knowledge and store
and refine the knowledge with past organizational knowledge. This knowledge
assimilation sub-process adds support to best practices and decreases the support for
less effective practices. Knowledge dissemination is the retrieval and distribution of
the knowledge to use on another project. The organizational learning process which
knowledge management supports is described along two dimensions: modes and
timing.
Nonaka (1994) described four modes for organizational learning. Three of the
modes (socialization, externalization, and internalization) emphasize direct human-tohuman
interaction. Socialization is the process for transferring tacit knowledge to tacit
knowledge between individuals and includes culture or shared experiences, mentors,
and on the job training. Externalization is the mode by which an individual shares his