Nonaka & Takeuchi (theory of knowledge creation)

Nonaka and Takeuchi's theory of knowledge creation explains how organizations generate new knowledge through a dynamic process. It involves converting tacit knowledge (personal, experience-based) into explicit knowledge (documented, shareable) and vice versa. This cycle occurs through four modes: socialization (sharing experiences), externalization (articulating ideas), combination (systematizing concepts), and internalization (absorbing knowledge). Their model emphasizes that knowledge growth depends on active interaction between individuals and organizational structures, fostering innovation and continuous learning. This process helps organizations adapt, innovate, and stay competitive by effectively managing both tacit and explicit knowledge.