A Dynamic Theory of Organizational Knowledge Creation

Nonaka, I. (1994). A Dynamic Theory of Organizational Knowledge Creation. Organization Science, 5(1), 14-37.

Summary

A foundational paper proposing that organizational knowledge is created through continuous dialogue between tacit and explicit knowledge. Introduces the SECI model (Socialization, Externalization, Combination, Internalization) and the “knowledge spiral” that amplifies knowledge from individual to organizational levels.

Why It Matters

This paper reframes organizations from information-processing systems to knowledge-creating systems. It provides vocabulary and frameworks for understanding how knowledge moves between people and becomes organizational capability, concepts that remain essential for knowledge engineering, organizational design, and understanding what AI can and cannot replicate.

Key Contributions

1. Tacit-Explicit Distinction: Applies Polanyi’s epistemology to organizations
2. SECI Model: Four modes of knowledge conversion
3. Knowledge Spiral: How knowledge amplifies across organizational levels
4. Middle-Up-Down Management: Alternative to top-down and bottom-up models
5. Hypertext Organization: Structural design for knowledge creation

Key Quotations

“We can know more than we can tell.” — Michael Polanyi (1966)

“Information is a flow of messages, while knowledge is created and organized by the very flow of information, anchored on the commitment and beliefs of its holder.”

“The key to acquiring tacit knowledge is experience. Without some form of shared experience, it is extremely difficult for people to share each others’ thinking processes.”

Extracted For Garden

• 06-atom—tacit-knowledge-definition
• 06-atom—explicit-knowledge-definition
• 06-molecule—seci-framework
• 06-molecule—knowledge-spiral
• 06-atom—information-vs-knowledge

Related:, 06-molecule—tacit-vs-explicit-knowledge