​Knowledge Management

​Definition:

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​The capability of a company as a whole to create new knowledge, disseminate It throughout the organization, and embody it in products, services, and systems

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​Knowledge Creation -> Continuous Innovation -> Competitive Advantage

​Western Company

​•Organization as a machine for “information processing”

•Knowledge is something that “explicit”, formal and systematic

Japanese Company

•Knowledge is not something that only expressed in numbers or words

•Tacit Knowledge, something not easily visible and expressible

Tacit Knowledge

• Mental Models, such as schemata, paradigms, perspectives, beliefs, and viewpoints

• ​Help individuals to perceive and define their world

• ​Technical element, includes concrete know-how, crafts and skills (practice)

Explicit Knowledge

• Knowledge of rationality, such as theories, formula

• ​Talking about past events

• ​Digital knowledge, means has been written down theoretically (formula, numbers, procedures)

​4 Modes of Knowledge Conversion

​1. Socialization

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​Process of sharing experiences and thereby creating tacit knowledge such as shared mental models and technical skills

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​Observation, imitation and practice

​4 Modes of Knowledge Conversion

​2. Externalization

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​Process of articulating tacit knowledge into explicit concepts

​4 Modes of Knowledge Conversion

​3. Combination

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​Systemizing concepts into a knowledge system

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​Exchange and combine knowledge through documents, meetings, computerized communication

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​Ex. Corporate vision to daily tasks

​4 Modes of Knowledge Conversion

​4. Internalization

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​Process embodying explicit knowledge into tacit knowledge

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​"Learning by Doing"

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​Company's value to personal internalization

​Enabling Conditions for Organizational Knowledge Creation

1. Intention. defined as organization's aspiration to its goals

2. ​Autonomy, by allowing employee to act autonomously, the organization may increase the chance of introducing unexpected opportunities

3. ​Fluctuation and Creative Chaos, creative chaos will provoke employee to enter the process of questioning and create new knowledge

4. ​Redundancy, redundant/overlap information will help employees to understand where they stand in the organization

5. ​Requisite Variety. diversity will encourage employees to learn and create new knowledge