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Knowledge Creation Explained: How is Knowledge Created?

Nowadays, knowledge is a precious asset for any organization running in any sector in this technological world. Organizations need to be aware of the learning organizations to achieve the business’s primary goals. Knowledge creation is concerned with learning from others or grabbing the knowledge information from outsiders but is built using communication and people interaction in the organization.

The organization deals with a knowledge-creating approach that helps individuals to use their minds to develop new ideas and innovations. It is a part of the knowledge base platform that helps create new knowledge using human minds to deal with know-how functionality and enhancing organizational knowledge to a great extent.

What is Knowledge Creation?

Knowledge creation can create new knowledge in endless combinations, transfer, and conversion of contrasting kinds of knowledge. It is a process of creating new knowledge and acts as the heart of an organization’s competitive advantage. It usually happens when the users interact, do better practice, and possess the ability to learn something.

What does competitive advantage mean? It’s nothing but the technique a company must have over the edges over its competitors concerning their specific product or service. Sometimes, such an issue does not serve as knowledge management, and thus it bounds and covers more than innovation management.

Professor Nonaka from Hitotsubashi University, Tokyo, Japan has given the best knowledge management definition. He went through various research on theories and initiated the Nonaka’s SECI model based on innovation in his knowledge management study. Ikujiro Nonaka wrote the famous article named ‘A Dynamic Theory of Organizational Knowledge Creation.’

An individual’s mind contains more ideas. For this reason, significant interactions between an individual take place to play a vital role in implementing these ideas. In simple words, it represents the interaction communities, explicitly contributing to the development of new knowledge. 

The primary intense of knowledge creation is to develop the formation of various notions and concepts. It eventually brings more user interactions in people’s minds between explicit and tacit knowledge on a large scale.

  • Explicit Knowledge: Any information that is easy to search is explicit. With this knowledge’s help, the users can quickly cooperate for the value and type of explicit knowledge it contains.
  • Implicit Knowledge: Such type of information typically resides in the people’s mind. The user cannot search like explicit, and also no person can share it.

What’s the difference between the terms “knowledge” and “knowing” in terms of knowledge creation?

A product that works as an interplay between the knowledge and knowing is nothing but the knowledge creation.  It was initiated by Cook and Brown in 1999. The shifting process between the knowledge owner and related act of knowing initiates using common practice, relevant action, and inspiring interaction for the creation of new knowledge in the organization.

So, it becomes quite mandatory to support work environments in the different areas where innovation and its related creativity deal with the specific order to be successful interplay.

Finally, knowledge creation and knowledge sharing support hand-in-hand strategy. It means that knowledge provides an effective solution by using efficient practice, interaction, and, most importantly, education. In addition to it, the complete support of data and information that offers impressive improvements on decisions to build or create new knowledge.

The Role of Knowledge Creation

Role of Knowledge Creation

  1. Enabling and Encouraging Knowledge Sharing

    The formation of the knowledge typically included two sides. There is the tactical side, and on the second side, there is the strategic side.

    Tactical primarily deals with understanding the management concerning where and what forms knowledge to a great extent.

    An accurate and efficient emphasis on informal communication occurs with tacit knowledge, whereas a specific focus on a variety of IT systems identifies explicit knowledge.

    From the strategic perspective, the management must design the perfect environments and responsive processes that offer more readiness to occur in real-time.

  2. Appropriate Work Environment Creations

    The knowledge creation process provides an inspiring notion to create an interplay between the term knowledge and knowing. It specifically relates to appropriate training and education, but it helps the organization apply new knowledge using significant interaction, better practice, and experimental methods.

    In 1988, according to the research by March, he came up with an optimum solution to provide additional innovation and new knowledge creation. He showed ideas about the environments to recognize the various goals using the intuition acceptance terminologies. In simple words, he concludes that experience tends to nothing more than a specific theory.

    It leads to the theoretical concept that points to multiple work environments that do not strictly follow the rules and procedures. In addition to it, the accepting solution and support for environments require more trial and error facilities to gain unstructured interaction.

    In 2008, Botha et al., based on his prior experiences, point to the importance of the knowledge creation process using tacit knowledge and understanding the work environment’s primary need.

    By taking an example of innovation theory, one can quickly adhere to the team’s establishment to solve complex problems with ease. It can lead to more chaos value and fetch the advantage of using smaller groups. The best alternative is to opt for the cross-platform project teams in the organization.

    Such project teams are nothing but a group of experts that work together to solve a common problem in the organization, and the project leader handles all of them. If these teams get the freedom to work or experiment in their environment, it leads to a more significant catalyst for perfect innovation and new knowledge creation.

    On task completion, the members return to their previous role in the organization by keeping the aim to have knowledge sharing among the community of practice. The project team itself facilitates creating a bridge between different practice communities, and at multiple times serves as a better way to extend them on a large scale.

    These overall concept variations become a primary factor in innovation theory, most notably in project teams’ hypertext organization. Ikujiro Nonaka, Takeuchi initiated the hypertext organization, and Konno allows the organizations to make more interest in dealing with the structural and behavioral concepts of taskforce structures to a great extent.

  3. System Allocation To Support the Work Process

    There exist groupware systems that help the organization to facilitate communication to a great extent. The major constraint is that there should not be any interference with innovative processes or even communities of practices that encourage theoretical aspects.

  4. Providing Knowledge Workers with Accurate Data

    A specific, virtually identical IT system implementation can perform the storing, retrieving, organizing, and presenting the knowledge information and data smoothly in this competitive market.

  5. Ease in Dealing with Project Management

    Project management often referred to by the term “management of projects,” captures the cognitive framework to define and deliver the project on a large scale. It is gaining much more popularity using its own practitioners level, usually seen by various leading academics as a significant production management growth.

    The recent emergence of the projects contributes specifically to the society and GDP to recognize essential metrics like innovation vehicles, organizational changes, and even knowledge creation. However, any organization’s vital challenge is to provide optimum solutions to deliver the projects on time, and most importantly, budget-friendly.

    Generally, the project-based organizational learning offers an innovative opportunity for the individuals to perform adequate recognition of the robust process.

Use of IT in Knowledge Creation

Information Technology (IT) and knowledge sharing follow the same concept to support a varied degree of support to transfer various knowledge transfer among the organization. The leading aspect is that the support is the best factor, and it should not conflict with any casual alliance.

The best example is the groupware systems that enhance the vital communication between the teams or individuals. Such communication support metrics, including video, audio, and text messages as per the individual firm’s needs. In addition to it, IT plays a vital role using information management, which in turn, provides data and information access making it an ease for the knowledge manager to perform analyses in brief.

Use of IT in Knowledge Creation

IT systems typically deal with the latest data and information trends and provide a persuasive presentation to the senior authority. Now, the manager is solely responsible for better decisions applying to offer the inspiring knowledge creation process in order to create new knowledge.  Innovation processes and tools that do an efficient service or product design are also possible using IT tools, but it points to outside the scope of knowledge management.

To enhance business performance, the organization makes the creation of new knowledge, particularly for project-based learning. It works by adding some arguments to such lessons learned in the system, adopting some kind of database and new thinking capabilities to share the new mental models’ reference.

  1. Adapting Organizational Learning

    According to Davenport and Prusak, for companies interested in dealing with the new knowledge economy, the creation of knowledge and learning needs to apply parallelly.  They typically use a competitive advantage source that allows the IT business to differentiate from other companies based on different dimensions like numbers of employees, firm size, and even low-cost labour.

    The best organization possesses learning theories that include the development of knowledge to fetch appropriate learning with limitations. Such a field of knowledge still resides on responsive data, significant debate, and better controversy. There exists a distinction from multiple viewpoints of theoretical concepts on organizational learning approaches.

    In 2001, Antal, Child, Dierkes, and Nonaka came up with three models. The starting ones possess robust feedback loops between the business and its related working environment. At the same time, others define learning in necessary steps or phases. The steps usually start at knowledge acquisition and work towards more action and storage.

  2. Project-Based Learning

    The systematic and newest approach to collecting the knowledge or information from projects, including “post mortems functionality” and “lessons learned reviews,” are the significant factors of the excellent practice that helps multiple organizations motivate mid-project reviews.

    As per the recent literature research, most of the working process includes the standard approach to collect information during the project initiation. It is represented by the term “Box 1” publications and highlights the importance of something that reflects more in the findings’ context to a great extent. Box 1 includes the operations to deal with the learning scenarios for project-based organizations using various best practices.

    Let us take a simple example. The performance of the project or application quickly improves using the following items:

    • Structured learning collection on the projects (According to Dixon)
    • Time-to-time project reviews
    • Understanding the tacit and explicit knowledge differentiation
    • Using repositories for person recognition for subject-matter areas
    • Making use of information management tools for information processing tasks
    • Dealing with the discipline to access knowledge to project teas before project task beginning

    Project management involves a robust process to deal with effective decisions for any case. It becomes the organization’s sole responsibility to define context and judgment for performing the perfect optimum solution. In addition to it, there exist multiple features of using the creation of knowledge in project-based practices to deal with the challenges specific to approaches related to knowledge management and project management.

    Knowledge management systems play a vital role in many organizational learning concepts. In simple words, knowledge transfer work in synchronization with knowledge generation.

  3. Integrated Conceptual Model

    In 1998, Boisot came up with an idea to affect the learning and learning process in codified or uncodified knowledge. Furthermore, he suggested the literature review and grounded theory stage to help the IT systems improvise a business performance.

    The organization’s project-based learning and grounded theory’s primary goal is to significantly form the essential factors that impact substantially individual and teams’ growth. They initiated the conceptual model to deal with significant issues while working with the literature review scenario.

    In 2001, Byosiere & Toyoma initiated the “sense-making” approach to perform the robust exploration of the issues from the literature and field-based work environment. Von Krogh’s approach supports the integration of the creation of knowledge theories to make it easy for individuals to accept or integrate new knowledge at an incredible pace.

  4. Understanding Core Elements for Organizational Learning to Happen

    Organizational learning typically occurs at the project-level by considering the several elements relating to learning at an enterprise level. And also it can happen vice-versa.

    • Project Orientation: This element includes the organization’s basic operations and outstanding leadership to support and control the overall project.
    • Learning with Sense-Making Relationship: It is nothing but the relationship between strategic experiences and frameworks to make sense in a specific order for project learning activities. In other words, it points to the interpretation of user experiences to provide the correct path with the primary intent of organizational perception.
    • Using Interface Environment for the knowledge creation process: This innovative element is derived from the SECI model. It contains various components for the particular knowledge creation process.

    Various forms of knowledge assets are discussed below that link organizational learning or knowledge creation for enhancing business productivity.

    • Experiential: Shared tacit knowledge using practical experience between company members, suppliers, and customers.
    • Conceptual: Uses images, language, and symbols to represent the explicit knowledge
    • Systemic:  Transferable knowledge is more explicit as it contains data or relevant documents through various combination effects.
    • Routine: Knowledge with backgrounds of the sense-making approach derives the narrative of the organization.

    These knowledge assets do not offer a relevant aspect to understanding the perfect business nature. It becomes quite apparent to measure the essential dimension of the knowledge mechanism to be invoked.

    As per the research on the hypothesized models, the knowledge creation process involves four stages in the SECI knowledge spiral in a balanced way.

  5. Stage Two Research Methodology

    A large number of propositions were developed to create the main base for stage two research ideology. The primary proposition inherits from the term “externalization,” which is element evidence of knowledge evolution in weakening learning and knowledge process impacts on a large scale.

    In stage two techniques, a computable survey operation includes multiple questionnaires to form the conceptual model. The main intense of such questionnaires is to search the leading modes of knowledge conversion terminologies for the organization. The questionnaires allow the individuals to perform variations in multiple responses, whether; it may be positive or negative.

    Such questionnaires data share among the groups of members for the specific project in the organization. In addition to it, it also includes several workshops and online meetings to get the research team available to perform the particular task and other things relevant to the business. The total number of respondents, with the associated meetings, the meaning of questions allows respondents to enhance the reliability of the responses.

    The researchers can quickly view various project purposes and accurate discussion to gain proper insights into the organization. These discussions with others help the organization research the courses that satisfy the individuals to create a feature-rich understanding like writing reports as per the business needs.

    Finally, it includes the research findings method that has various modes of knowledge conversions. Using such modification, an accurate analysis can identify an individual or company’s characteristics as whole project management.

  6. Business Categorization Analyses

    The perfect analyses of the research findings in complete detail can be easily performed using business basis categorization. These analyses’ main intense is to identify the knowledge conversion fit within the literature review and framework derived from grounded data as per the stage one research.

    • Business Type: Construction Company
      Consider the scenario that a new business owner has taken the responsibility of running a construction company. The new owner has a notable change in leading perceptions and attitudes that come into action using appropriate knowledge management. It works as per the belief that it is more expensive and effective technology-based solutions in the working environment. To gain a competitive advantage and spile the organization’s knowledge, a process-driven solution helps to enhance business effectiveness to a great extent.

      A system with multiple projects takes place to put people in parallel with expert professionals within the company. Like senior management and knowledge manager, the top authority is solely responsible for handling the feature and multiple requests that come together to identify the required resource person. Based on the organization’s feedback and the time taken to resolve that particular issue decides the business performance.

      Such a system follows the tacit knowledge principle; the real question arises to perform the codification process of converting the tacit into explicit knowledge. The best recommendation that needs to follow is performing personal conversations and using appropriate incentives for better response.

    • Business Type: Pharmaceuticals Business in the Division of Facilities
      The company includes various project management guidelines and excellent tools to use internal and external sources during the research time. It incorporates the view of the company as a part of world-class project management facilities.

      The explicit form of knowledge and learning approach particularly identifies the importance of tacit knowledge to a great extent. It possesses a role that helps people to play an essential impart in project management knowledge. It also includes the whole range of knowledge asset types, and respondents together form new standards and rollout activities.

      The essential strategy to disseminate the knowledge on project management typically uses the various modes of knowledge conversion. The stage one conceptual model follows the disconnect hypothesized between project-level learning and strategic level learning making the individuals perform participations for team members.

      The knowledge creation process includes a strong indication of sense-making capabilities for the project-to-enterprise levels—a beneficial impact on the project performance for research indications to enhance business productivity globally.

    • Business Type: Consulting Engineering Company
      For multiple years, the organization to develop a knowledge management function helps the staff access the organization’s wisdom. Such information can either be explicit or specific to engineering and tangible information that helps the people or individuals handle the situations.

      An inspiring result is a portal-based implementation to access corporate databases and data specific to the project. It also holds various communities of practice and leading subject-matter experts. It creates a link between the supplier and the customer more smoothly and with minimal interface numbers. Such a concept can eventually affect the organization’s working process with an inspiring outcome.

      This type of strategy would easily prefer the likelihood as a balanced approach for knowledge conversion operations. But it is nothing but creates a strong bias against ‘socialization’ and ‘externalization.’

    • Business Type: IT Services Provider
      Multiple organizations support full integration with foreign owners’ enterprise-level governance modification, project structure, and work culture. It involves various informal ways to lose people-interfaces, making the organizations make additional changes as the most significant organizational learning determent.

      The vital element of this working culture in knowledge management emphasizes a strong emphasis on the efficient support for the project’s sales, marketing, and delivery activities.

    • Business Type: Project Service for International Bank
      More attention is explicitly given to drive ownership and responsibility to serve different project areas having a review library to improve project management. It includes innovative professionalism programs that support multiple knowledge assets to handle several expertise tools and templates.

      To create working in the virtual model, a deliberate strategy forms to deal with the working culture’s IT nature without any prior efforts.

    • Business Type: Information Arm of Energy Company
      It is the best example of a project-oriented concept that views knowledge management that spans boundaries like learning, training, and human resources department. The primary perspective is to provide equal importance to the people, process, and technological advancement. To achieve such matter, networks and communities of practice play a vital role in potential knowledge providers to a great extent.

      It usually relates to multiple organizations’ learning processes to capture and share the business life cycle’s day-to-day business. It also opts to offer knowledge reuse, particularly at different times throughout the complete lifecycle. Thus, it becomes to fetch the correct behaviors and enhance the knowledge transfer process to gain customer relationships.

      The company finds somewhat complexity to emphasize “Front End Loading” and “Value Improvement Practices” to provide a perfect way to make learning home to improve business performance. Typically, people prefer to talk more rather than dealing with movement from externalizing learning to Nonaka Spiral that makes forward steps toward socialization mechanisms.

    • Business Type: Aerospace Company
      It eventually uses Tier 2 supplier that deals with product development and performing accurate R & D. It follows a significant effort to make a project-oriented approach in the company and believes that the project’s management of knowledge enhances business effectiveness. It uses incentive systems to provide inspiring support solutions for learning activities and is led by the real weakness of the people who are learning daily.

      The company or organization moves to search for a better practice using the peer-assist phenomenon to distinguish between people-based and document-based routines.

    • Business Type: Government Department
      Such types of organizations are geographically decentralized. They possess a strong potential to handle multiple implementation issues. It is entirely dependent on individuals that create explicit learning materials that can be further used for distribution. The individuals in the organization use in-groups discussions and appropriate tools to improve the conversations to a great extent.


Generally, knowledge is created through daily practice, participation, interaction, and education as there are different knowledge types that are shared and converted. In addition to this, knowledge creation is mainly supported by accurate information and data that will enhance decisions making. It will also work as building blocks and silos in the new knowledge creation.
Knowledge creation in research is nothing but a transfer combination or conversion of various types of knowledge as users practise, interact, and learn. It is a product of the interplay between knowing and knowledge, and it can only be attainted after a deep understanding of concepts and application of those concepts to contribute towards a larger knowledge hub.
As we just checked what is knowledge creation and now it is an about knowledge capture. Knowledge capture is a simple process that converts knowledge from tacit to explicit form and vice versa through sub-processes of externalization and internalization.
According to Ikujiro Nonaka, there are mainly four types of knowledge creation processes, including socialization, externalization, combination, and internalization.


In this blog post, we have gone through knowledge creation, from what is knowledge creation to the role of knowledge creation, and use of it in the IT industry. We have covered in-detailed information about this topic, giving examples of how it is useful for the organization or any company.

As per the SECI model, the learning for any organization and company is the most important asset; therefore, it is a must that the company invests in knowledge creation. Not only this we have also answered some of the common queries that various organizations might have related to knowledge creation.

In case, if you still have any query or confusion like how it benefits your business, you can feel free to connect with us through our contact us form. We will be happy to help you.

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