Use of tacit knowledge

The following notes will probably be most suited to the social aspects of AFL. Although it does not directly address AFL (I can add them later), it does follow some of the outline questions Francis sent. I will be posting another note on my delegated area soon. I thought its good to share and get your views on this first!.

What specific knowledge are we attempting to capture?

Tacit knowledge is rooted in action, procedures, commitment, values and emotions etc. Tacit knowledge is the less familiar, unconventional form of knowledge. It is the knowledge of which we are not conscious. (Kikoski and Kikoski 2004) on tacit knowledge states that “ tacit knowledge is not codified, it is not communicated in a “ language”, it is acquired by sharing experience, by observation and imitation. Rosenberg describes tacit knowledge as “the knowledge of techniques, methods and designs that work in a certain ways and with certain consequences, even one cannot explain why”. (Rosenberg, 1982, p.143).

Why do we need this type of knowledge?

Kikoski’s views on the value of tacit knowledge for an organisation is that competitive advantage can only be gained if companies value their tacit knowledge, as explicit knowledge can be known by others as well but it is the value of tacit knowledge which can help companies to be equipped with a competitive edge. Kikoski’s view shares the importance of tacit knowledge because it creates the learning curve for others to follow and provides competitive advantage for future successful companies. (Kikoski and Kikoski, 2004).

The work of Kikoski and Kikoski on tacit knowledge refers to two philosophers (H-G Gadamer) and (H.Lipps). They have referred to management of tacit knowledge as personal knowledge that each individual possesses and is unique and once unlocked it can be a creative contribution in an organisation management of knowledge. Kikoski quotes “what is unsaid and unexpressed could be the reservoirs of tacit knowledge” (Kikoski and Kikoski, 2004, p. 66).

Management of tacit knowledge?

On management of tacit knowledge Kikoski writes that all organisation that seeks to be successful has to create the conditions enabling everyone in an organization to verbalize their tacit knowledge. Each employee should maximise his contribution to the pool of ideas that provide a competitive edge for the firm. (Kikoski and Kikoski, 2004, chp 2).

He then supports thought on evolution of tacit knowledge that states all knowledge is rooted in tacit knowledge meaning that explicit knowledge depends on or is encompassed by tacit knowledge, whereas tacit knowledge “possesses” itself. He developed the S- curve of tacit knowledge that shows the dependence between increasing development and increasing performance of tacit knowledge.

Madeuf states that the prerequisite for the evolution of tacit knowledge is an open “culture” in organsations to support innovation by for example installing pilot plants or testing prototypes. (Madeuf, 1984, p. 127). Stover claims that interaction with others as opposed to isolation is important in knowledge conversion to take place. (Stover 2004, p. 167).

Rudiger and Vanini say that the only way to recognise the subject of tacit knowledge is via personal contact with external or internal organisations and therefore it is the duty of management to afford these contacts. The work of Baumard found many common characteristics among successful tacit knowledge conversion companies i.e. “resolution of ambiguity through communities of practice; tacit complicity among employees; informal matrices of relationships among employees and reliance on collective knowledge”.

How does this align with company’s strategy?

Tacit knowledge is gained throughout the innovation and production chain of a company. (Howell, 1996) says that the stage at which tacit knowledge is gained and utilized in the innovation and production process is an important strategy and policy issue. (Howell, 1996) believes that tacit knowledge is a source of competitive advantage. Howell argues that the creativity necessary for innovation derives not only from obvious and visible expertise but from invisible reservoirs of experience which need to be vitalized first before using these in the innovation process.

Organisational strategy of gaining competitive advantage should be aligned with KM strategy of valuing “knowledge as an asset” / “providing opportunities for individuals to contribute to the knowledge sharing process”.

A climate of trust and openness between organisation members is the basic condition that allows tacit knowledge to be created, shared and used in the innovation process. Sharing tacit knowledge will be more successful in informal settings than in formal ones. Therefore it is important for the management of AFL to cultivate a commitment to motivate the creation of tacit knowledge and to create an environment in which organisation members feel safe sharing their knowledge.

Tacit knowledge can be gained both in and outside organisation. Inside the organisation by deciding what existing tacit knowledge capabilities the employees/members of organisation carry themselves and what improvements could be made to build up the accumulated learning of the individuals and therefore enhance the tacit know-how competence. Outside the organisation by trying to gain tacit knowledge and skills from other firms, through recruiting the right individuals with the requisite education or work experience, by acquiring parts of or whole new companies, by engaging appropriate consultants or by building networks with other companies

What is the best way of capturing the knowledge?

Tacit knowledge can be gained both in and outside organisation. Inside the organisation by deciding what existing tacit knowledge capabilities the employees/members of organisation carry themselves and what improvements could be made to build up the accumulated learning of the individuals and therefore enhance the tacit know-how competence. Outside the organisation by trying to gain tacit knowledge and skills from other firms, through recruiting the right individuals with the requisite education or work experience, by acquiring parts of or whole new companies, by engaging appropriate consultants or by building networks with other companies

Employees must be given the , space and opportunity to transfer and share tacit knowledge. This must be supported by the culture and organization structure of a company e.g. through the decision making process, HR policies, performance measurements etc. (Cook and Cook, 2004).
There should be a mechanism between the reward systems and the organisational roles and structure, as well as socio cultural factors such as culture, power relations, industry dynamics, etc (Hall and Sapsed, 2005). Communities of practice, social networks, provision of incentives for employees, performance related schemes and bonuses, subsidiaries all can be deployed as measures for better mechanism for capturing and sharing tacit knowledge.

Reference:

Kikoski, C.K, Kikoski, J.F (2004), The Inquiring Organisation: Tacit Knowledge, Coversation, and Knowledge Creation Skills for 21st-Century Organisations, Praeger, Westport, CT and London.

Rosenberg, N (1982), Inside the Black Box: Technology and Economics, Cambridge University Press, Cambridge.

Stover, M (2004), “ Making tacit knowledge explicit”, Reference Services Review, Vol. 32 No. 2, pp. 164-73.

Howells, J (1996), “ Tacit knowledge, innovation and technology transfer”, Technology Analysis & Strategic Management, Vol. 8 No.2, pp. 91-106.

Rudiger, M, Vanini, S (1998), “ Das Tacit knowledge phanomen und seine implicationen fur das innovationsmanagement”, DBW, Vol. 58 No.4, pp. 467-80.

Madeuf, B (1984), “ International technology transfers and international technology payments, definitions, measurements and firm’s behaviour”, Research Policy, No. 13, pp. 125-40.

Cook, J.S, Cook, L (2004), “ Prompting organizational knowledge sharing”, in Montano, B (Eds), Innovations of Knowledge Management, Hershey Idea Group, Hershey, PA, pp. 300-21.