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I recall the first full-time job I ever had. I was a young graduate joining Alcan, an aluminium company that made commercial aluminium windows and doors for the architectural building industry. I recall my mentor, a very nice elderly man who had amazing technical knowledge, but I found he was reluctant to share his accumulation of lifelong knowledge with me.
This highlights a problem many organizations face today: How do you capture and retain the tacit knowledge that is unwritten, unspoken, and intuitive, which individuals acquire through personal experiences, interactions, and observations (Polanyi, 1966; Nonaka & Takeuchi, 1995)? Unlike explicit knowledge, which is well-documented, codified, and transferred through books, manuals, and databases, tacit knowledge resides within individuals and is difficult to articulate; it includes skills, expertise, and insights gained over time (Polanyi, 1966).
Significant competitive advantage can be gained in capturing and leveraging tacit knowledge (Grant, 1996; Nonaka & Takeuchi, 1995). However, due to the intangible nature of tacit knowledge, transferring and retaining this knowledge pose considerable challenges (Szulanski, 1996). Many employees have valuable insights that are not formally documented, making it crucial for organizations to develop strategies to extract, share, and institutionalize this knowledge before it is lost due to employee retirement or turnover (DeLong, 2004).
Mentorships and apprenticeship programs are very effective ways to capture tacit knowledge (Swap et al., 2001). Being structured, this enables experienced employees to pass on their knowledge to new employee recruits through direct engagement and hands-on learning (Lave & Wenger, 1991). By observing and working closely with mentors, employees can absorb valuable insights that may not be explicitly stated in any formal document (Eraut, 2000). This approach fosters the transfer of tacit knowledge in a natural and practical manner.
Another key strategy is developing a culture of collaboration and knowledge sharing within the organization (Nonaka, 1994). Informal interactions, such as discussions during meetings, brainstorming sessions, and cross-functional teamwork, serve as conduits for the exchange of tacit knowledge (Davenport & Prusak, 1998).
Open communication and problem-solving by employees assist in the transfer of their insights and expertise to others (Wenger, 1998). Encouraging knowledge-sharing behaviors through incentive programs or recognition can further enhance the willingness of employees to share what they know (Bartol & Srivastava, 2002).
Organizations can also utilize technology to facilitate the capture of tacit knowledge (Alavi & Leidner, 2001). Digital sharing platforms, such as WhatsApp. LinkedIn, discussion forums, and customer relationship management (CRM) systems enable employees to document their insights and best practices in a more structured manner (Davenport & Prusak, 1998). While tacit knowledge is inherently difficult to record, storytelling and case studies can help convert some aspects into a format that others can understand and apply (Swap et al., 2001). Video recordings, interviews, and podcasts featuring seasoned employees sharing their experiences can serve as a valuable repository for future employees seeking to learn from past successes and failures (Alavi & Leidner, 2001).
Job rotation and cross-functional training programs further aid in the transfer of tacit knowledge (Nonaka & Takeuchi, 1995). Employees exposed to job rotation in an organization develop a broader understanding of operations and acquire implicit knowledge from various sources (Campion, Cheraskin, & Stevens, 1994). This approach not only enhances individual learning but also capitalizes on strengthening the overall knowledge base of the organization, making it more resilient to knowledge loss (Grant, 1996).
It’s important that leaders in organizations ensure that tacit knowledge is captured and utilized effectively (Nonaka & Takeuchi, 1995). Managers and executives must actively promote knowledge-sharing initiatives and create a supportive environment for sharing ideas (Davenport & Prusak, 1998). By recognizing and valuing the importance of tacit knowledge, organizations can build a culture of continuous learning that enhances long-term sustainability and innovation (Senge,1990).
To conclude, while tacit knowledge is challenging to capture because of its deeply personal and experiential nature (Polanyi, 1966), organizations can develop a variety of strategies to harness its value (Nonaka & Takeuchi, 1995). Through mentorship, collaboration, technology, job rotation, and leadership support, companies can ensure that valuable insights are shared, retained, and utilized to drive growth and success (Davenport & Prusak, 1998).
