Dynamic Knowledge Flow Theory Nissen, 2002 Knowledge Conversion Process

43 Figure 2.2. The SECI Process Source: Nonaka Takeuchi, 1995

2.3.2 Dynamic Knowledge Flow Theory Nissen, 2002

Nissen 2002 extended Nonaka’s dynamic of knowledge flow theory by integrating the life cycle process of knowledge flow through the enterprise: 1 creation, 2 organization, 3 formalization, 4 distribution, 5 application, and 6 evolution. Then, in 2006 he reviewed the extended theory by identifying six activities associated with the life cycle of a knowledge flow within an organization. Indeed, he developed a multidimensional model for knowledge flow life cycle through an enterprise. This model dimensions were 1 type of knowledge, 2 level of socialization associated with the knowledge individual, group, organization, and inter-organization, 3 activities of knowledge work create, organize, formalize, etc., and flow time. 44 One research Javernick et al., 2007 aimed to build upon Nissen’s 2006 model of the multi-dimensional aspects of knowledge flow. This research attempted to examine the flow of knowledge based on knowledge type, the phase within the knowledge lifecycle, and the “reach” of the knowledge as it spreads from individual to group, project team, organization and beyond. Recalling the stated problem for this study, incomplete knowledge flow has been recognized as a problem during conceptual design stage as a tacit-dominated area of building project’s life cycle. Moreover, many researchers have emphasized on performing more studies on this area. Nissen 2006 multidimensional See Figure 2.3 theory for product life cycle focuses on knowledge flow regarding its typology. Because some researchers have expressed the importance of knowledge typology on project performance, Nissen 2006 theory is used as the background theory for this study. Given this, to improve flow of knowledge we need to know more about knowledge creation, conversion and its related techniques. 45 Figure 2.3. Multidimensional Knowledge Flow Visualization Source: Nissen, 2005

2.3.3 Knowledge Conversion Process

An organization creates knowledge through the interactions between explicit knowledge and tacit knowledge. Interaction between the two types of knowledge is called knowledge conversion. Through the conversion process, tacit and explicit knowledge expands in both quality and quantity. Nonaka and Takeuchi 2004 stressed that organizational knowledge is created through the continuous social 46 interaction of tacit and explicit knowledge. Knowledge management initiatives in Japanese firms have shown that the creation and sharing of knowledge can only happen when individuals cooperate willingly. According to Nonaka, employees need to have the opportunity to create and not to be controlled nor monitored Salim et al., 2005. Knowledge-based organizations are dependent on the efficient management of human resources as this resource is the prime source of the organization’s knowledge, capabilities, and systems Abernethy, 2003. Since human resources are mobile and governed by self-interest, organizations seek to convert individuals’ tacit or unobserved knowledge to explicit or organizational knowledge in order to build organizational capabilities e.g., Nonaka, 1994; Nonaka and Takeuchi, 1995. Converting tacit knowledge to explicit knowledge is a tough task because tacit knowledge is difficult to articulate. Tacit knowledge is the know-how which is deeply embedded in the individual’s mind and is typically acquired through sharing experience Forrester, 1994. According to Ambrosini and Bowman 2001, tacitness of knowledge is a matter of degree. At one extreme, knowledge is deeply ingrained and very unavailable. At the other extreme, knowledge can be easily communicated and shared. In the middle lies knowledge that has the potential to be articulated. This knowledge can be made available to the organization by asking the right questions. Articulating tacit 47 knowledge through inquiry allows management to learn and thus improve their understanding of how their organizations achieve success Ambrosini and Bowman, 2001. According to Abernethy 2005, tacit knowledge of experts is essential to understand the inputs and processes, which contribute to the success of knowledge- based organizations. From literature review, it can be inferred that tacit knowledge is difficult to communicate and to transfer to other people. Therefore, this study proposes that tacit knowledge be converted to explicit type to facilitate the movements. In response to this need, in the next section techniques for converting tacit knowledge to explicit are reviewed.

2.3.4 Knowledge Conversion Techniques