Resource title

The Process of knowledge creation in organizations

Resource image

image for OpenScout resource :: The Process of knowledge creation in organizations

Resource description

Knowledge creation has been widely recognized to be strategically important for organizational learning and innovation. Nonaka and Takeuchi's (1995) book The Knowledge Creating Company crystallized the intricacy of knowledge creation and its importance in the organization's long-term success and survival. However, the lack of empirical work in this area has not advanced our understanding of this important phenomenon. Previous studies have focused on limited aspects of the overall knowledge creation process, such as interorganizational knowledge transfer, knowledge flows within the firms and the interplay of tacit and explicit knowledge. As a result, the authors' understanding of knowledge creation is limited to certain micro-level aspects, rather than understanding the process in its entirety. This study is a comprehensive analysis of the knowledge creation "chain", incorporating both environmental and organizational factors that play a role in the overall process. In doing so, this study draws upon perspectives from the network, organizational learning, dynamic capabilities and innovation literatures. A model of knowledge creation is proposed and tested empirically. Specifically, this model examines four important dimensions - (1) the acquisition of information and knowledge from the external environment; (2) the integration of external and internal knowledge, i.e., the use of the acquired information and knowledge within the organization in problem solving situations; (3) the creation of new knowledge and innovations from such integration, and (4) the role of specific organization factors such as absorptive capacity in the overall process. It is shown that the critical linkages in the knowledge creating chain are those between: (a) informal networking and information acquisition; (b) information acquisition and know-how; (c) absorptive capacity and know-how and organizational problem solving; (d) the character of information and organizational problem solving; and (e) the creativity of problem solving and new knowledge and innovation.

Resource author

Resource publisher

Resource publish date

Resource language


Resource content type


Resource resource URL

Resource license

Copyright INSEAD. All rights reserved