Organizational Knowledge Creation Theory

Organizational Knowledge Creation Theory explains how companies develop new knowledge through a dynamic process involving the interaction between explicit knowledge (documented, easily shared) and tacit knowledge (personal, experience-based). It emphasizes that by encouraging communication and collaboration, organizations can convert individual insights into shared understanding, fostering innovation and improvement. The theory highlights that knowledge is continually created, shaped, and refined through social processes, enabling organizations to adapt and stay competitive. In essence, it shows how collective learning and knowledge sharing drive organizational growth and innovation.