The mode of knowledge
Nonaka (1995) identifies two categories of
knowledge. Explicit knowledge is a scientific
``rule'', which may be justified from first
principles. Because its origins and basis are
known, this type of knowledge is easily
transferable, both within and outside an
organisation and between people.
Conversely, tacit knowledge is a heuristic
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[ 601 ]
Management Decision
38/9 [2000] 601±606
# MCB University Press
[ISSN 0025-1747]
Keywords
Knowledge management,
Competitive advantage
Abstract
Knowledge management is a
rapidly growing, and rapidly
changing discipline. While the link
between knowledge assets and
competitive advantage has been
accepted for some time, it is not
obvious how this translates into
the techniques and software tools
that are labelled as knowledge
management processes. This
article details the strategic
requirements linking the
conceptual ``mission'' of
knowledge management with the
processes that serve it.
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``rule of thumb', derived empirically and held
by the organisation's employees or embedded
in long-held practices. Tacit knowledge is
thus more difficult to challenge, more
difficult to transfer, and more easily lost to
an organisation.
The value of knowledge to an organisation
The ability of the organisation to exploit
knowledge depends on two factors; its
exclusivity of access to the knowledge and its
access to the technology required for
exploitation. Cases where one of the factors is
favourable but the other is not, still have a
value, in that knowledge can be sold or
co-developed with another organisation
which has the missing attribute. For
example, a research laboratory may discover
a new pharmaceutical product, but in order
to exploit its exclusive access, it will need the
production facilities of an established
manufacturer. Both parties contribute to the
exploitation for mutual benefit. This is
illustrated in Figure 2.
Knowledge management strategy
The DIKT model demonstrates that
exploitation of knowledge for sustainable
competitive advantage involves a
number of transformational processes,
such as data analysis and information
communication. These processes must be
managed, and therefore require a strategy
to guide them, consistent with the mission
of the organisation. This is an important
principle: the mission itself defines the
information that constitutes knowledge
for the organisation. That is, knowledge
is any information that contributes to
the overall mission of the organisation
and thus the business strategy it
pursues. This translation of mission into
strategy and then processes, is shown by
Figure 3.
It should be noted that in the same way
that strategy may be emergent, an
organisation's actual mission may be
emergent. An artificially constructed view of
its business, encapsulated in a few
stereotypical phrases, may not reflect the
real aims, aspirations and purpose of the
enterprise.
Knowledge management strategies fall into
three categories, representing those
transformations represented within the
DIKT system providing sustainable
competitive advantage. They are:
1 knowledge acquisition;
2 knowledge retention; and
3 knowledge exploitation.