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Perspective—Tacit Knowledge and Knowledge Conversion: Controversy and Advancement in Organizational Knowledge Creation Theory

Graduate School of International Corporate Strategy, Hitotsubashi University, Gakujutsu Sogo Center, 2-1-2 Hitotsubashi, Chiyoda-ku, Tokyo 101-8439, Japan
Department of Management, Technology, and Economics, ETH Zurich, Zurich
ksakata{at}ics.hit-u.ac.jp
gvkrogh{at}ethz.ch

Nonaka's paper [1994. A dynamic theory of organizational knowledge creation. Organ. Sci. 5(1) 14–37] contributed to the concepts of "tacit knowledge" and "knowledge conversion" in organization science. We present work that shaped the development of organizational knowledge creation theory and identify two premises upon which more than 15 years of extensive academic work has been conducted: (1) tacit and explicit knowledge can be conceptually distinguished along a continuum; (2) knowledge conversion explains, theoretically and empirically, the interaction between tacit and explicit knowledge. Recently, scholars have raised several issues regarding the understanding of tacit knowledge as well as the interaction between tacit and explicit knowledge in the theory. The purpose of this article is to introduce and comment on the debate about organizational knowledge creation theory. We aim to help scholars make sense of this debate by synthesizing six fundamental questions on organizational knowledge creation theory. Next, we seek to elaborate and advance the theory by responding to questions and incorporating new research. Finally, we discuss implications of our endeavor for organization science.

Key Words: organizational knowledge; organizational knowledge creation; knowledge-based view of the firm; organization theory; social practice; innovation