Canadian Manufacturing Company Baytech, Essay Example

Introduction

Today’s business environment is characterized with challenges and uncertainties that should be overcome in an everyday life. Knowledge is believed to be the most valuable asset among businesspersons, and the most effective instrument that can help XXI-century organizations to cope with business problems, and to create a competitive advantage (Welch & Alhamoudi, 2008). Correspondingly, knowledge management is believed to be an extremely significant part of companies’ HR management. Hence, to understand the mechanism of knowledge function, creation, transfer, and preservation within an organizational workplace environment has become an essential task for HR managers. In this context, the necessity to reveal all essential aspects of knowledge management within business organizations obviously grows.

The creation of a competitive advantage and survival in today’s business environment is inseparably connected with the attraction and retention of the most talented, competent, and experienced employees. The so-called “know-how” or tacit knowledge has become the focus of HR managers’ attention (Inmon, O’Neil, & Fryman, 2008, p. 264). In order to achieve an organization’s business success, this knowledge should be documented, shared, and transmitted in routine organizational practices. However, since tacit knowledge is embedded in employees’ habits and skills, it cannot be captured in an easy way. For this reason, tacit knowledge management and tacit knowledge transfer have become evidently important areas in all business organizations interested not only in survival, but also in success and prosperity.

The present dissertation is dedicated to the system of tacit knowledge management and tacit knowledge transfer techniques in one of the Canadian manufacturing organizations, Baytech Plastics, Inc. The investigation of this topic seems urgent in the context of today’s business environment that has mostly relied on unique human knowledge and practices. Overall, in-depth understanding of tacit knowledge management along with tacit transfer techniques provides comprehension of principles of business organization’s survival, success, and wellbeing.

Problem Statement

The exceptional role and effectiveness of tacit knowledge management and tacit knowledge transfer in business organizations have been demonstrated by numerous authors. For example, Mládková (2012) recognized that tacit knowledge management is a process of controlling the creation, transfer, and utilization of knowledge that helps an organization to create business value, to generate a competitive advantage, to retain its key competencies, and to achieve set goals. Br?tianu and Orzea (2009) suggested that education enhances the potential of tacit knowledge that makes decision-making and problem-solving processes more effective, especially in a business field. Overall, tacit knowledge researchers (including Welch and Alhamoudi (2008), Inmon et al. (2008), and Endres et al. (2007)) implied that tacit knowledge management is essential in the business environment. However, despite on the fact that numerous investigations on tacit knowledge management and tacit knowledge transfer have been made, little attention has been paid to innovative modern techniques used by manufacturing companies. Baytech is believed to be the unique Canadian manufacturing company in terms of usage such tacit knowledge management and tacit knowledge transfer techniques as green initiatives, continuous quality improvement, and advanced product quality planning (Baytech Plastics, Inc., 2012). Hence, for the reason that few investigations have touched upon tacit knowledge management and tacit knowledge transfer techniques of industrial organizations, the need to reveal these points in the environment of the mentioned Canadian company companies evidently grows.

Some authors mentioned the role and effectiveness of tacit knowledge management and tacit knowledge transfer techniques in manufacturing companies. For example, Von Krogh, Ichijo, and Nonaka (2000) revealed that well-organized personnel management and tacit knowledge management, in particular, became the main reason for the excellent business performance of Japanese automotive companies including Toyota and American car manufacturers like General Motors, Ford, and Chrysler demonstrated at the end of XX century. According to the authors, tacit knowledge was recognized as a key to the competitive advantage of the mentioned companies (Von Krogh et al., 2000). Clegg, Wang, and Berrell (2007) noted that the tacit knowledge transfer techniques based on interpersonal interaction and communication, in particular, have proved to be effective in Chinese electronics companies resulting in their increased profit and reputation. The mentioned data may lead to the following assumption: a Canadian manufacturing company Baytech is successful due to the usage of tacit knowledge management and effective human interaction-based tacit knowledge transfer. Hence, the dissertation focuses on the verification of the made assumption.

In addition, the chosen topic is associated with the fact that few manufacturing companies actually pay special attention to tacit knowledge management and transfer. Swamidass (2000) revealed that “the biggest challenge in international manufacturing is the coordination and sharing of learning” (p. 299). This fact suggests that international industrial companies provide poor conditions for organizational learning; therefore, their level of tacit knowledge management is relatively low. However, this fact can be explained by the complexity of the international manufacturing organizations’ functioning characterized by numerous forms of flows: flow of administrative information, goods, capital, human resources, and actionable process knowledge. In addition, “technological and process knowledge is the most difficult flow to manage in a network of plants” (Swamidass, 2000, p. 299). The transfer of explicit knowledge is a relatively easy process because it is usually planned and implemented through information systems, procedures, and specific rules that can be articulated and documented. Nevertheless, the transfer of tacit knowledge is a much more challenging process, since it requires the interaction between staff members through face-to-face contacts; besides, the complex nature of human interpersonal relationships makes tacit knowledge sharing a difficult task, especially in case of mistrust (Swamidass, 2000). Hence, it is not surprising that international manufacturing companies do not pay sufficient attention to tacit knowledge management and tacit knowledge transfer. Taking into consideration the information presented above, one may agree that the presence of effective tacit knowledge management and transfer techniques in manufacturing business organizations is put in doubt.

Hence, despite numerous investigations of industrial tacit knowledge management have been made, Baytech stands out due to certain characteristics. To be more specific, this Canadian manufacturing company uses innovative modern techniques in the areas of tacit knowledge management and tacit knowledge transfer. The presence of the mentioned techniques gives reason to assume that they are the key to the company’s current business success.

Purpose of the Study

The wide purpose of the present study is to provide the in-depth understanding of the tacit knowledge perceptions in a real-life business setting, to explore the specificity of tacit knowledge in the industrial sector, and to provide empirical evidence about the management and transfer techniques applied to tacit knowledge in Baytech Plastics, Inc. More specific purposes of the present research are as follows:

1. To bring about a social change by means of identifying successful knowledge management and transfer techniques contributing to innovation, improvement of the industrial workflow, and acceleration of various industrial operations
2. To identify ways of improving access to the body of knowledge generated within the company for employees
3. To reveal the ways in which successful tacit knowledge management and transfer techniques can encourage the establishment of the knowledge society

Nature of the Study

1. What are the components of tacit knowledge management and transfer techniques applied in Baytech?
2. Is tacit knowledge management and transfer executed efficiently in the corporation?
3. What recommendations for improvement can be given to enhance the corporation’s tacit knowledge management and transfer techniques?

The present research is planned to involve a mixed-methods (primarily qualitative) study; the comprehensive literature review will comprise the secondary data part; surveys or interviews will comprise primary data. The obtained data will be further analyzed with the purpose of identifying the extent of proficiency in the questions of explicit and tacit knowledge management, current initiatives employed in manufacturing companies for the sake of tacit knowledge management, and the gaps identified by respondents and by the researcher. Qualitative analysis part will then comprise linking the research results with the theories and concepts discussed in the literature review and conceptual framework part.

Theoretical Base

Tacit knowledge management system has attracted the attention of scholars and authors since 1958 when a concept of tacit knowledge associated with personal knowledge was firstly presented by the Hungarian theorist Michael Polanyi (Moleski, 2000). For example, Geisler and Wickramasighe (2009) revealed theory and practice associated with tacit knowledge management. According to them, since tacit knowledge is defined as expertise, abilities, and conceptual thinking, it can be transferred only through human interaction and communication, in particular (Geisler & Wickramasighe, 2009). Dalkir (2005) was mostly interested in challenges associated with real-life tacit knowledge. One of his major findings was that making tacit knowledge explicit (in other words, articulated or documented) is a relatively difficult task for all business organizations. Overall, all authors mentioned above mostly dedicated their works to theoretical aspects of tacit knowledge management rather than practical ones.

In the context of the present dissertation focused on the implementation of both theoretical and practical aspects of tacit knowledge in business organizations, one of Collins’ (2001) articles acquires special significance. For the author, tacit knowledge involves hidden practices of knowledge sharing through which it can be captured. In order to understand the Collins’ (2001) assumption, three routes of the phenomenon of tacit knowledge offered by the author need to be provided. The first route relates to the motor-skills metaphor that can be expressed through, for example, horse riding. This activity should be treated not only as a particular activity, but also as an example of tacit knowledge in practice, demonstration of an experiential skill, and embodiment of a human cognitive ability. According to the author, all human motor skills would die out if they were not practiced regularly. One may admit that the “tacitness” of the mentioned motor skill or ability can be used metaphorically when one tries to understand how this activity (mainly, horse riding) can be actually done (Collins, 2001, p. 110). The second route of tacit knowledge is presented by a “rules-regress model” (Collins, 2001, p. 110). This model suggests that all experiential skills (including horse riding) can be apprehended by knowing the basic rules. However, the main problem of this model consists in the fact that these rules describing a correct sequence of actions have a theoretical rather than a practical value. After the description of the routes, the author concluded that “experimental skills are impossible to transmit in formulaic terms” (Collins, 2001, p. 110). Hence, the information about the described routes implies that tacitness of knowledge lies in people’s cognitive abilities and skills based on personal experiences.

Busch (2008) revealed the significant role of organizational learning and learning organizations at the present age of innovations and rapid technological development. One of the main author’s findings is that continuous education (or organizational learning) at the workplace favors tacit knowledge identification, sharing, transfer, and adoption. This way, organizational learning can be called one of the bases of knowledge management within an organization. According to the author, organizational learning not only leads to good performance and workplace efficiency resulting in business success, but also to the transformation of a conventional company into a learning organization (Busch, 2008). Learning organizations, knowing organizations, knowledge creating companies or innovative organizations are the business establishments that recognize human tacit knowledge the most significant business asset necessary for survival, advancement, and prosperity; hence, they provide the workplace with favourable conditions for employees’ continuous education. Busch’s (2008) differentiation between organizational learning and learning organization should be presented in order to understand the author’s contribution to the concept of tacit knowledge management:

“Organizational learning is the way in which individuals in an organization learn, from the approach they take to addressing a task-related challenge, to their understanding of how they should learn, while a learning organization in one in which processes are imbedded in the organizational culture that allow and encourage learning at the individual, group and organizational level and be transferred between these levels” (p. 23).

As one may admit, organizational learning is a necessary component of a learning organization that, unlike conventional organization, practices tacit knowledge management focusing on the creation, preservation and transfer of employees’ tacit knowledge. Since the value of tacit knowledge is recognized, HR managers pay special attention to tacit knowledge transfer that is actually a hard process in a real life. Since tacit knowledge is embedded in individual experiences, talents, abilities, skills, and behavioral habits, tacit knowledge of employees can hardly be captured. However, according to Geisler and Wickramasighe (2009), human interaction and communication, in particular, facilitate tacit knowledge transfer, since these activities suppose observation of people and their real-life practices.

In order to understand the topic of the present dissertation, one needs to know the mechanism of tacit knowledge sharing. In this context, the self-efficacy theory should be revealed because it provides the explanation of tacit knowledge sharing or transfer within business organizations. Albert Bandura (1997), a prominent psychologist, defined self-efficacy as one’s belief in one’s ability to succeed, mainly, to complete a particular task, and to reach goals. According to the psychologist, to equate self-efficacy with individualism is wrong. Instead, self-efficacy should be treated as a person’s ability to influence a situation in a positive way; this ability determines certain beliefs in one’s own strengths to face and overcome all challenges that potentially may complicate the achievement of a set goal (Bandura, 1997). It is not surprising that the theory of self-efficacy is the key component of Bandura’s social cognitive theory; this theory underlines the role of social experience and observational learning in the development of personality (Bandura, 1997). Bandura (1997) suggested that self-efficacy is formed by external experiences and self-perception that influence outcomes of numerous events, and represents the personal perception of external social factors (others’ social behavior patterns and cognitive processes). Hence, self-efficacy becomes an essential element of organizational learning, where people adopt each other’s experience embedded in skills and cognitive abilities.

The theory of self-efficacy occupies an essential place in understanding of tacit knowledge transfer, the process when one’s knowledge is captured by others, and becomes embedded in their own experience. According to Endres, Endres, Chowdhury, and Alam (2007), “self-efficacy theory provides a unique theoretical model that illustrates how individuals may be motivated to share complex, tacit knowledge” (p. 93). The authors implied that the theory of self-efficacy serves to explain knowledge transfer as a system of influence, outcomes, and feedback. In real-life situations, self-efficacy strengthens motivation making a person to act. Endres et al. (2007) suggested that self-efficacy “is the central cognitive mediator of the motivational process”; hence, one may assume that self-efficacy motivates a person to share his or her tacit knowledge through a knowledge-sharing activity (p. 94). Correspondingly, to alter employer’s self-efficacy means to ensure his or her knowledge-sharing behavior. The following conditions suppose to increase self-efficacy that favors tacit knowledge transfer: “viewing others like oneself successfully share knowledge (vicarious experience); actually having the opportunity to successfully share knowledge (enactive mastery); and/or receiving praise or encouragement from others to share knowledge (persuasion)” (Endres et al., 2007, p. 95). Overall, the authors concluded that awareness of positive outcomes (such as a status, pay, or praise) affects self-efficacy to share tacit knowledge.

Operational Definitions

Knowledge – is the complex of “framed experiences, values, contextual information, and expert insight that provides a framework for evaluating and incorporating new experiences and information” (Davenport & Prusak 1998, p. 5). According to Geisler and Wickramasinghe (2009), knowledge can also be broadly defined as the notion related to “understanding, wisdom, awareness of the world, transformed information, and any other metaphor for the concept of “knowing”” (p. 26).

Tacit Knowledge – is the type of knowledge characterized by three features: its discovery cannot be grasped through articulated rules and algorithms; it is mainly public but personal and socially constructed in nature; and all knowledge originated from tacit knowledge (Menkhoff, Evers, & Wah, 2010).

Explicit Knowledge – is the type of knowledge transmittable in formal, systematic language such as data, scientific formulae, specification, etc. (Menkhoff, Evers, & Wah, 2010).

Knowledge Management – is a relatively new “interdisciplinary business model that has knowledge within the framework of an organization and its focus”. The KM perspective is based on the interconnection of business, economics, psychology, and information management, and involves the components of people, technology, and processes (Awad & Ghaziri 2004, p. 26).

Knowledge Transfer – is a concept that “encompasses the systems and processes by which knowledge, expertise and skilled people transfer between the research environment (universities, centers, and institutes) and its user communities in industry, commerce, public and service sectors” (House of Commons: Science and Technology Committee 2006, p. 17).

Learning Organization – is a relevant concept among large organizations characterized by focusing on the organization as a system, in which learning is facilitated, and the organization continuously transforms itself (Maula 2006, p. 16). The purposes of a learning organization involve “being flexible and adaptable to change; achieving continuous improvement; satisfying all the stakeholders in the enterprise; reducing costs and overlap of activity; and increasing its “intellectual capital” (Secord 2003, p. 241).

Self-Efficacy Theory – is the theory that “conceptualizes person-behavior-environment interaction as triadic reciprocality, the foundation for reciprocal determinism…Triadic reciprocality is the interrelationship among person, behavior and environment; reciprocal determinism is the belief that behavior, cognitive and other personal factors and environmental influences all operate interactively as determinants of each other (Resnick 2003, p. 49).

Assumptions, Limitations, Scope, and Delimitations of the Study

The evidence presented above formulates the key assumption guiding the present research – tacit knowledge plays an extremely essential role in today’s business environment characterized with tough competition, innovations, and incorporation of advanced technologies. Hence, one may agree that tacit knowledge is paramount for all business organizations because human individual experience embedded in their skills, intuition, and behaviors are believed a key asset and a principle of business survival, success, and unchallenged competitive advantage. For this reason, organizations’ HR managers pay special attention to organizational learning and knowledge-sharing behaviors of the staff. In this context, the necessity to provide an in-depth understanding of tacit knowledge management and to reveal tacit knowledge transfer techniques obviously grows.

Like all other studies, this one has its own limitations, as well. The first limitation of the present research related to the coverage of one Canadian manufacturing company. Baytech is the only company under investigation, so corresponding information associated with its tacit knowledge management and tacit knowledge transfer techniques will be presented. This limitation suggests that the topic will not be examined in the context of other related companies. Correspondingly, it leads to poor generalizability of the research findings, since the information that is truthful for one company may not be truthful for others. At the same time, this narrow focus of the work demonstrates that the study fills the gaps in the less investigated areas of the topic.

The second limitation is associated with the nature of the study that is actually qualitative. Since this is qualitative research, no information related to performance measurement will be presented. In other words, the performance indices of Baytech will not be taken into account for the research findings; instead, the company’s qualitative information about tacit knowledge management and tacit knowledge transfer will be revealed. The presence of this limitation may potentially decrease the reliability and validity of the findings, since no numerical information, supposed by performance measurement, will not be presented. However, the nature of the study reflects the specificity of the topic that focuses on the complex phenomena rather than their numeric representation.

The third limitation of this research is associated with the fact that it is not a longitudinal study. To be more specific, the present investigation does not represent a correlational research study that supposes repeated observations of the same company’s variables over a long time. This research is cross-sectional; it means that it reflects the observation of Baytech at the present point of time (nowadays). Although it is not a longitudinal study that would present how the company’s tacit knowledge management and tacit knowledge transfer techniques change over time, the chosen research method will be descriptive in nature; it will allow to describe the techniques that are used today in detail. Overall, all limitations of this study do not diminish its value, and are its integral attributes.

The scope of the present study is determined by a number of variables concerned in the process of studying tacit knowledge management and transfer techniques, and the specificity of tacit knowledge management in the industrial sector. Hence, the focus will be made on the tacit knowledge management and transfer techniques used in one Canadian industrial company, Baytech Plastics, Inc. The role of tacit knowledge in the company’s operation and performance, the methods used to document and transfer tacit knowledge, and the innovative tacit knowledge initiatives will be discussed within the scope of the present dissertation.

The present study includes certain delimitations as well. The first issue to consider is the objective reflection of tacit knowledge management and transfer techniques in the operation of the company. Since it is a qualitative research only, the phenomenological study will be used to determine the techniques used for tacit knowledge management and transfer, and to identify their compliance with the theory on tacit knowledge management and transfer elicited as a result of more than five decades of research. Second, the benchmark comparison of Baytech tacit knowledge management and transfer techniques with those of other companies in Canada and worldwide would be of value for the present work, but they are left out to concentrate exclusively on the study of Baytech Plastics, Inc.

Significance of the Research

Few studies have been dedicated to Canadian experience in industrial tacit knowledge and tacit knowledge transfer techniques; the majority of investigations have focused on the industrial companies of other countries. For example, Von Krogh et al. (2000) revealed that well-organized personnel management and tacit knowledge management, in particular, became the main reason for the excellent business performance of Japanese automotive companies including Toyota and American car manufacturers like General Motors, Ford, and Chrysler demonstrated at the end of XX century. According to the authors, tacit knowledge was recognized as a key to the competitive advantage of the mentioned companies (Von Krogh et al., 2000). Cappellin and Wink (2009) found out that European medium-tech industrial firms increase their tacit knowledge basis with the help of international partnerships. Nevertheless, the development of tacit knowledge management and tacit transfer techniques exactly in Canadian manufacturing organizations was hardly mentioned by the mentioned authors. Hence, taking into account that the topic of the present dissertation supposes the examination of the Canadian experience of tacit knowledge management and transfer, the significance of the research cannot be underestimated.

Besides focusing on the less investigated area, the present research has a great theoretical value because it expands and systematizes the existing area of knowledge related to the topic. Different concepts, problems, and processes associated with tacit knowledge management and tacit knowledge transfer are thoroughly revealed in this dissertation. Coverage of such aspects of the topic as a concept of knowledge (including its explicit and tacit forms), knowledge management, knowledge communication, tacit knowledge management and transfer techniques in organizations, their advantages for business, and other related points leads to the systematization of the bundle of theoretical knowledge that refers to one of the most urgent themes in a business field. The theoretical information presented in the study will help to understand the chosen topic better, and to connect it with corresponding theories and complex phenomena that can be seen in HR management. In addition, the presentation of the theory related to tacit knowledge management and tacit knowledge transfer in Baytech will ensure understanding of Canadian manufacturing company’s experience.

At the same time, the study has a practical value, as well. The practical part of the work will present the experience-based information about tacit knowledge management, tacit knowledge transfer, and corresponding techniques applied in Canadian manufacturing company Baytech. The questionnaire results will help to understand in which points theory and practice related to the topic coincide, and in which – have discrepancies. Besides, the information presented in the research can be used in practice by different groups of people. For example, students studying HR management, business, organizational behavior and related disciplines may use the work as a learning material that helps to systematize their knowledge, and provides them with new pieces of information. Researchers may use this study as a starting point for their own investigation; reading this dissertation will help them to identify the areas that have been implied but have not been covered by this work. Finally, non-professionals may use this research as a useful tool to expand their worldview, erudition, and special knowledge.

As one may admit, the significance of this work can evidently be traced in the facts presented above. First, this dissertation touches upon the topic that has not been sufficiently covered by previous researchers. Second, the work possesses both theoretical and practical values that make this study distinguished among others.

Literature Review

Researchers and businesspersons have identified the environment of XXI century as complex, turbulent, and changeable (Retiz & Breton, 2003).  Some authors were interested in the necessity of sustainable knowledge management that would meet the growing needs of modern people and organizations.  For example, Gupta and Sharma (2004) dedicated their book to the problem of knowledge-based organizations. According to the authors, today’s context demands the creation of knowledge-based organizations from business world, where knowledge is believed the principal priority valued above all.  The reality requires higher speed and better quality; in addition, “the business world is becoming increasingly competitive, and the demand for innovative products and services is growing” (Gupta & Sharma, 2004, p. 42).  As one may see, the competitive nature of the business world requires organizations to leverage its knowledge assets so they do not lose growing opportunities, new markets, and higher revenues.  In many cases, successful organizational performance depends on the effectiveness of knowledge management (Gupta & Sharma, 2004).

Since the quality of life in XXI century depends on the quicker access, processing, management, and sharing of information, today’s business companies greatly rely of their knowledge management and transfer.  Retiz and Breton (2003) paid attention in their book to the following piece of evidence, workers “ordinarily have less idle time and heavier workloads” (p. 99).  A workplace has transformed into the area where the individuals interact with each other to speed up the working process.  The increase of knowledge work for knowledge management experts is evident as well.  The intense pace of work for the sake of organizational development and advancement in the competitive environment suggests that more information should be gained and applied in practice.  It is obvious that successful functioning of knowledge management and transfer mechanisms makes a company meet various production standards and business objectives (Retiz & Breton , 2003).

Ji and Salvendy (2001) underlined that the survival of business organizations in the knowledge age depends on such HR asset as knowledge and knowledge management.  The authors noted, “the key to knowledge management is organizational learning through which an organization can generate, acquire, share, and apply knowledge” (Ji & Salvendy, 2001, p. 297).  Learning is undoubtedly a necessary practice in knowledge management; however, managers pay special attention to the personal practical knowledge of the company’s staff as well.  Today, organizational managers are more focused on tacit knowledge management and sharing, since exactly tacit information assumes great importance.

Busch (2008) dedicated his book to the concept of tacit knowledge and its importance for the business organizations of XXI century.  One may see that the author agrees that tacit knowledge emerges and develops in the work process, or at least closeness to it.  Tacit knowledge is held in an individual’s head.  For this reason, many leading organizations are concerned with the attraction and retention of creative, smart, and experienced workers.  It is not surprising that HR managers and recruiting agencies keep getting involved in headhunting for specialists in various areas, since the best workers of the companies always have valuable tacit knowledge.  Tacit forms of knowledge gained through individual experience, observations of others, practiced skills, etc. are extremely helpful for business management.  For example, “tricks of the trade” of a valuable worker are beneficial for the company, and may reflect in its successful performance (Busch, 2008, p. 42).

In this context, research of tacit knowledge management and transfer is essential taking into consideration today’s nature of the business environment.  The exploration of effective techniques used in tacit knowledge management and transfer will give an opportunity to reveal the business secrets of the modern organizations interested in intangible mental assets of their staff members (Busch, 2008).  The review of relevant literature concerning the concept of knowledge and tacit knowledge in particular is essential, since it helps one to meet research objectives.  Academic sources (mainly, books and articles) will reveal the value of knowledge in the current epoch, power of explicit and tacit knowledge, and outline tacit knowledge management and tacit knowledge techniques that can bring benefit for business organizations.  In general, the present literature review will provide the dissertation with a solid theoretic basis for in-depth understanding of the chosen research topic.

The Concept of Knowledge; Knowledge Communication in Management

There were many authors who dedicated their works to the concept of knowledge, its management and transfer.  The role of knowledge in XXI century grows, since it becomes almost the only human source asset most demanded everywhere (in a daily life and at workplace).  Lehrer (2000) paid attention to the following piece of evidence: “all agree that knowledge is valuable, but agreement about knowledge tends to end there” (p. 1).  In general, knowledge “is a product of doubt”, and its definition of knowledge varies among different scientists (philosophers, economists, sociologists, etc.) (Russel, n.d., p. 1).  However, there is a certain general presentation of knowledge that can be taken into account as a starting point for this literature review.

In daily life, people usually associate knowledge with information, intelligence, valuable data, truth, intellect, wisdom, etc.  Nevertheless, the nature of knowledge is complex, and, as it was mentioned, there are no universal definitions.  Nonetheless, in Jennex’s (2008) book, one may see that “in science, knowledge is an unmixed good; in ethics and politics it is bad as well as good” (p. 109).  Consequently, the concept of knowledge is connected with good and bad features.  A natural strive for knowledge is undoubtedly a good quality of a human being; however, not all pieces of knowledge may make the positive contribution to the people’s life.

Lehrer (2000) managed to outline several senses of the concept of “knowing” based on different sorts of knowledge.  In her book, she wrote, “in one sense, ‘to know’ means to have some special form of competence” (Lehrer, 2000, p. 5).  Hence, one can predict that in case an individual possesses a knowledge of the piano, he or she is competent in piano playing.  Human knowledge of phenomena needs a person’s competence that helps to know what a concrete issue, concept or notion means.  At the same time, “another sense of ‘know’ means to be acquainted with something or someone” (Lehrer, 2000, p. 5).  When a man says that he knows the President, it means that he is acquainted with the President personally.  In this context, knowledge of a city means people’s personal acquaintance with it that helps to find their way around it.  Lehrer (2000) mentioned, “the third sense of ‘know’ is that in which “to know” means to recognize something as true” (p. 5).  Human knowledge about a spherically ellipsoid form of the Earth is the evidence of people’s recognition of the mentioned fact as truth; in other words, this form of the planet is recognized as correct information.  All these distinguished senses of knowledge are not exclusive; for this reason, the term “to know” can be used in more than one of these senses in relation to the same phenomenon.

However, knowledge is mostly understood in “information sense” (Lehrer, 2000, p. 6).  In this meaning, knowledge becomes a part of human reasoning that helps people make conclusions about something, confirm hypothesis, and refute others.  In addition, owing to the informational sense of knowledge, people may experience different states of mind that make them reason in different ways.  In Lehrer’s (2000) book, one may see the following statement,

“there may be states of mind that are useful to us in a variety of ways (that enable us to avoid harm, for example) but fall short constituting the sort of knowledge that enables us to reason about what is true and what is false, what is real and what is unreal” (p. 6).

In general, the informational sense of knowledge approximates a human being to the experienced phenomena.  A human being cannot know something if he or she has never faced it in life, relevant literature, or has not heard about it from someone.  If people know something, it means that their real-life experience or evidence-based information derived from an authoritative source make them know about the correctness of a certain phenomenon (Lehrer, 2000).  In the context of the present paper, knowledge will be used exactly with its informational sense; it will give an opportunity to evaluate knowledge management and transfer techniques more objectively.

Theory of knowledge in which many authors are interested provides one with not only the senses of knowledge, but also with its conditions.  The condition of truth makes a human being identify what is known as truth.  The condition of acceptance means that a person accepts something in order to know something.  Finally, the condition of justification means that when a person accepts something with evidence or justification, it makes him or her know that something is true (Lehrer, 2000).  As one may see, owing to the nature inherent in the mentioned conditions of knowledge (truth, acceptance, and justification), a concept of knowledge should not be examined inseparably from people – bearers of knowledge.

The theory of knowledge also reveals numerous information-related processes performed by people.  Throughout the centuries, people have been communicating, identifying, acquiring, selecting, generating, managing, and transferring their knowledge.  Knowledge communication is inseparably connected with knowledge management and transfer.  In a social dimension, knowledge communication assumes great importance.  Eppler (2006) recognized the importance of knowledge communication for society. In his article, the author underlined, “communicating professional knowledge is a key activity for today’s specialized workforce” (Eppler, 2006, p. 1).  Being the effective instruments of human society and people’s interaction, all processes with knowledge are often accompanied with interpersonal communication and group conversations.  High-quality knowledge sharing, collective decision-making, and problem-solving processes are extremely important for all organizations (business companies, industrial plants, hospitals, universities, etc), since they provide them with successful performance and effective functioning.  For Eppler (2006), knowledge communication is defined “as the (deliberate) activity of interactively conveying and co-constructing insights, assessments, experiences, or skills through verbal and non-verbal means” (p. 2).  Knowledge communication takes place when communicative actions of people reconstruct a person’s insight, experience of skill.  The author added,

“Knowledge communication thus designates the successful transfer of know-how (e.g., how to accomplish a task), know-why (e.g., the cause-effect relationships of a complex phenomenon), know-what (e.g., the results of a test), and know-who (e.g., the experiences with others) through face-to-face (co-located) or media-based (virtual) interactions” (Eppler, 2006, p. 2).

In this context, the essence of the knowledge transfer process is based on knowledge communication.  In a daily life, people’s knowledge communication refers face-to-face real time (knowledge dialogues) and delayed media-based (through TV, books, newspapers, etc.) interactions; however, in any case, knowledge communication is informative in its nature.   The so-called “knowledge dialogues’ (or synchronous knowledge communication realized interpersonally) demand interactive and collaborative style; thus, knowledge communication is a dynamic and active process.  A knowledge-focused goal of these dialogues determines the form of knowledge process.  For example, Eppler (2006) distinguished “crealogues” (focused on the creation of a new insight), “assessalogues” (focused on the evaluation of new insights), “sharelogues” (focused on facilitation of knowledge transfer), and “doalogues” (focused on turning understanding into a committed action, in other words, “talk the walk”) (p. 3).  Asynchronous knowledge communication or “knowledge media” enable knowledge transfer through technology-based collaboration and communication (Eppler, 2006, p. 3).

People communicate not only some pieces of information (figures, events, facts, etc.) and emotions (hopes, commitment, fear), but also personal insights and experiences.  Thus, knowledge can be transferred through information, emotions, insights, experience, and other means (for example, the signs, gestures, pictures, etc.).  Naturally, sharing insights or experiences is probably the most beneficial process, since it gives people an opportunity to develop one’s career, to help someone, or to improve one’s individuality.  Thus, at the organizational level, knowledge sharing and management assume notable importance (Eppler, 2006)

In the context of the current complex, challenging, and changing environment of XXI century, “all knowledge is more or less uncertain and more or less vague” (Russel, n.d., p. 5).  For this reason, many organizations are concerned with the effective ways to overcome this vagueness and uncertainty with correct information management and sharing tightly connected with communication.  Thus, communication should be defined as the key element of these processes as well.

Taking into consideration everything mentioned above, one may see that information transfer and management are the most essential processes associated with the concept of knowledge in general.  According to Harorimana (2010), knowledge transfer (KT) is widely used in organizational learning and development, and means transfer of tangible and intellectual property, expertise, experience, and skills.  The problem of KT is inseparably connected with communication activity and techniques that improve and facilitate the process of knowledge sharing.  For the author, KT “remains the key to future development” (Harorimana, 2010, p. 247).  It is not surprising that in XXI century, human intellect and the accumulated knowledge becomes a valuable asset that enhances today’s development, improvement, upgrading.  Taking into consideration the current globalization process, KT should be treated as the only means to spread valuable information, emotions, and experiences around the world.

Jennex’s (2008) book suggests the following idea concerning knowledge management (KM) is a range of practices and strategies applied in an organization to identify, create, distribute, and enable the adoption of experiences and insights.  KM techniques discussed further in the literature review also assume importance in today’s business life, since they make an organization successful.  The author noted that KM “is often seen as a necessary but benign component of any modern business organization” (Jennex, 2008, p. 109).  To manage knowledge means to control all processes related to knowledge creation and spreading.  In the current epoch, KM transforms into the unique instrument for improvement and protection from unfavorable circumstances of the challenging environment.

Tacit and Explicit Knowledge

Knowledge is a complex phenomenon because there are different types of knowledge. In KM and KT, explicit and tacit knowledge play an exceptionally significant role (Grant, 2007).  Grant (2007) mentioned that Polanyi was one of the first researchers concerned with the tacit-explicit dimension of knowledge; he believed that tacit always “cooperates” with the explicit (p. 176).  The difference between tacit and explicit knowledge should be clarified, since the present paper is focused on tacit knowledge in organizations.

Collins (2010) dedicated the book to the discussion of explicit and tacit knowledge on the basis of Polanyi’s works.  The author explained the essence of tacit knowledge in the following way: “knowledge that is not explicated” (Collins, 2010, p. 1).  In order to reveal the essence of the term “tacit”, one probably should pay attention to the bright Polanyi’s (1983) example of tacit knowledge in practice.  The example of bicycle riding shows that a person knows how to ride a bicycle without being able to tell people the specific rules for this activity.  If a person wants to tell these rules, he or she does it in an explicit way; however, a person’s ability for bicycle riding is tacit.  Tacit knowledge is “knowledge embodied in the human body and brain”, or “somatic tacit knowledge”; nevertheless, the paper will pay more attention to “collective tacit knowledge” (it is peculiar for society or smaller social groups, organizations, etc.), since it is aimed to reveal its management and transfer techniques applied in concrete organizations (companies) (Collins, 2010, p. 2).

For Breuer (2010), tacit knowledge is non-codified; it “is personal, context-specific, and therefore hard to formalize and communicate” (p. 103).  In contrast to explicit knowledge, the tacit type of knowledge is difficult to imitate.  In general, the phenomenon of tacitness is rather complicated because “it suggests that people know more than they consciously believe” (Breuer, 2010, p. 103).  The author believed that tacit knowledge occupies an essential place in human cognitive processes, particularly, in decision-making and problem-solving. Unlike tacit knowledge, Breuer (2010) underlined that the explicit knowledge is codified, and “refers to knowledge that is transmittable in formal, systematic language” (p. 103).  For this reason, Collins (2010) associated explicit knowledge with communication.  Tacit knowledge is usually associated with person’s skills, experience, and other intangible assets; explicit knowledge is based upon person’s words (any forms of interpersonal communication), media (books, journals, TV news, etc.), and other sources.

Chang (2010) clearly explained the attributes of explicit and tacit forms of knowledge. In his book, the author noted, “a portion of what we know can be readily codified as explicit knowledge” (Chang, 2010, p. 476).  Explicit knowledge is contained in literature, operation procedures, documents, and even voice and graphics recordings.  This form of knowledge can be easily preserved, shared, and retrieved by individuals or organizations.  However, the other portion of knowledge is called tacit.  According to the author,

“it consists of that part of knowledge related to our know-how, images, patters stored in our heads, hidden relationships we envision, rules of engagement we surmise, hunches, and intuitions that are not readily expressed in words or recordable in texts” (Chang, 2010, p. 476).

In contrast to explicit knowledge, the tacit form thereof can be created through lateral thinking (solving problems through a creative and indirect approach), observations, scenario analysis, trial and error, hands-on experience, and experimentations.  Chang (2010) supported an iceberg analogy to the understanding of explicit and tacit knowledge.  The image of the iceberg provides the idea that its peak (a visible part above the water) is the explicit; the tacit knowledge portion correspondingly represents the main part of the iceberg (an invisible part below the water) (Chang, 2010, p. 476).  Examining the advantages of explicit and tacit knowledge in everyday life, the author underlined that the explicit knowledge is notably helpful in noncreative tasks and routine projects; the tacit form of knowledge is extremely needed in problem-solving and dealing with ambiguity.  However, the author’s book provides one with the idea that “tacit knowledge makes explicit knowledge useful” (Chang, 2010, p. 476).  Thus, tacit and explicit forms of knowledge interrelate and interact with one another.

O’Toole (2010) paid attention to the following piece of evidence in his book: “both individuals and groups retain explicit and tacit (also termed ‘implicit’) knowledge” (p. 12).  The retention of explicit and tacit knowledge has become an effective practice of tangible and intangible forms of knowledge accumulation.  To retain explicit knowledge, all people and organizations widely use media sources and IT technologies.  Nevertheless, in XXI century, computer technologies are believed to be the most reliable means of explicit knowledge retention.  Nowadays, practically all organizations and people store their documents and other source of information in their computers.  The usage of the Internet and networked systems enhances explicit KM and KT.  In addition, there have been numerous computer software programs released recently; they focus on the explicit capture of knowledge, and are widely used by the staff of millions of organizations (O’Toole, 2010).

The best example of tacit knowledge retention is probably the organization that wants to retain human resource (HR) assets (employee’s intellect, skills, and experience) through various strategies and methods that would motivate the staff members not to leave the workplace.  Tacit knowledge is considered by O’Toole (2010) as invaluable because it is “held in the heads of individuals and groups of individuals”, and “cannot be reproduced in the same way” (p. 118).  In this context, an individual or collective idea, an innovation product, or an experience is unique in its nature based on intangible cognitive components (in other words, personal knowledge derived from individual experience, skills, abilities, etc.).  Tacit knowledge of an individual is based on semantic, procedural, and episodic memory that can express itself through a person’s habits, figures, facts, and subjective background experience (O’Toole, 2010).

The interaction of explicit and tacit forms of knowledge is obviously presented at the organizational and individual level.  However, O’Toole (2010) mentioned some distinctions between explicit and tacit knowledge.  First, unlike explicit knowledge, the tacit type of knowledge “is not accompanied by any sense of awareness of remembering” (O’Toole, 2010, p. 12).  Second, tacit knowledge unconsciously influences people’s present thoughts, perceptions, and actions, whereas explicit memory is more accompanied by the influence of the past (O’Toole, 2010).

Although the explicit and tacit forms of knowledge are rooted in psychology and epistemology (philosophical branch focused on the scope and nature of knowledge), they have deeply penetrated various organizational disciplines.  Today, society and organizations are concerned with the management and transfer of their explicit and tacit forms of knowledge.  Many business companies focus their efforts on the elaboration of effective techniques that facilitate and improve explicit and tacit KM and KT.  O’Toole (2010) mentioned that in the field of management, tacit knowledge can be made manageable and explicit if it can be codified and communicated.

However, before this section of the literature review proceeds to the discussion of converting the explicit form of knowledge into tacit one, the interrelations of the different forms of knowledge should be clarified.  Although tacit knowledge opposes explicit knowledge to a certain extent, they cannot be clearly divided.  In Collin’s (2010) book, one may see Polanyi’s (1983) comments about this statement,

“While tacit knowledge can be possessed by itself, explicit knowledge must rely on being tacitly understood and applied.  Hence all knowledge is either tacit or rooted in tacit knowledge.  A wholly explicit knowledge is unthinkable” (p. 1).

The tacit-explicit dimension of knowledge Polanyi (1983) revealed in the following manner.  The tacit-explicit interrelations are well balanced; on the one hand, there exists tacit knowledge that is “ineffable”, “highly personal”, “implicit”, and “specialized”; on another one, explicit knowledge is located that is “instrumental” (“subsidiary”), “general”, and explicable for experts and most of the society members (Grant, 2007, p.177).  Such things as background experience and training can not be articulated for Polanyi.  At the same time, the idea of explicitness is tied to the communication phenomenon; for this reason, people easily communicate their knowledge in form of instructions, reports, and other sources

Since tacit and explicit knowledge are interrelated, these aspects of knowledge can often be presented simultaneously in a single case.  For example, when a certain piece of knowledge is communicated via words, text, or other explicit format, this “knowledge has a tacit element that may be interpreted differently” (O’Toole, 2010, p. 11).  In addition, the close relation of tacit and explicit pieces of knowledge mentioned by Polanyi gives an opportunity to realize the conversion or exchange of these forms of knowledge (Grant, 2007).  Polanyi believed that “it is impossible to convert tacit knowledge to explicit knowledge”; however, the knowledge conversion seems to be possible (Grant, 2007, p. 176).  Hershel, Nemati, and Steiger (2001) dedicated their article to the phenomenon of knowledge conversion and its role in individual and organizational lives.

In their article, Hershel et al. (2001) noted that converting tacit knowledge to explicit knowledge is time-consuming and problematic, but an essential practice for KM and KT.  If tacit knowledge is structured, it can be easily codified in an explicit manner.  For this, many organizations use knowledge exchange protocols.  For example, Simple Object Access Protocol (SOAP) is recognized as effective knowledge exchange protocols applied in medical establishments.  The SOAP protocol provides a consistent mechanism for documentation of the physician’s understanding of a patient’s situation (sense making activities), “how the physician closes the gaps” in understanding of the patient’s situation (knowledge creation), and the actions taken by the physician aimed to patient’s treatment (decision-making) (Hershel et al., 2001, p. 108).  Thus, with the help of this knowledge exchange protocol, tacit knowledge can be easily shared in an explicit way.

Taking into consideration all information mentioned, the tacit and the explicit forms of knowledge are different, but inseparably connected aspects of knowledge.  Collins (2010) and Grant (2007) are the authors that greatly relied on Polanyi’s understanding of tacit and explicit knowledge in their book, and mentioned that two different forms of knowledge cannot be converted.  Bruer (2010) also saw a clear difference in them that cannot be overcome easily.  However, Chang (2010) was one of those who underlined an evident relationship between the two parts of the whole.  Moreover, O’Toole (2010) and Hershey et al. (2001) approached the concepts of the explicit and tacit types of knowledge practically, and supported the idea of knowledge conversion and possibility of exchange between two forms of knowledge.

Ways of Overcoming Modern Business Challenges with the Help of Knowledge Management

High-quality KM has been one of the effective instruments for many organizations throughout centuries.  Many authors dedicated their books and articles to the ways that help modern business companies to overcome challenges in the uncertain, changeable, and complex environment of XXI century.  KM assumes great importance in today’s organizational success, since human knowledge (intellect) has become the most valuable HR asset.  For this reason, it is not surprising that Chang (2010) mentioned that knowledge is perceived by business organizations as “the one sure source of lasting competitive advantage” (p. 475).  The author mentioned that successful companies are those generating new knowledge regardless of crisis and temporary misfortunes, widely sharing it throughout different organizations, and embodying it in new products or technologies.

Retention of corporate knowledge has become one of the concerns of modern KM.  The current unmirthful trends make the companies seek for effective ways of HR knowledge retention.  For example, in 2005, the following statistical fact was revealed, “in the next ten years, 43 percent of the U.S. workforce will be eligible for retirement” (Chang, 2010, p. 475).  It means that largest companies may expect to keep losing about 50 % of the senior management.  For this reason, one of the tasks of the modern organizational KM is to preserve critical knowledge gained through the experience of company’s staff members.  Chang (2010) revealed the nature of KM in the following statement: KM “is a corporate function on the identification, creation, organization and distribution of knowledge for reuse, awareness, and learning across the organization” (Chang, 2010, p. 475).  In this context, knowledge managers and workers are responsible for preserving and fostering the corporate knowledge of the company.

Chang (2010) mentioned that for the reason that the considerable part of corporate knowledge is tacit, KM is important, but very difficult to accomplish.  In other words, the accomplishment of KM is challenging for business companies because in most cases, they work with nonverbal and non-codified knowledge.  Thus, the high-quality translation of tacit piece of knowledge into an explicit one (or formal and codified categories) is an essential task of effective KM (Chang, 2010).  The author also underlined that KM is guided by many principles.  In many cases, these principles are based on outstanding capabilities of the human intellect, and the unlimited opportunities to develop, improve, and apply one’s knowledge. However, one of the notable principles is that “we can know more than we can tell” (Chang, 2010, p. 475).  Naturally, it refers to tacit knowledge that has transformed into competitive advantage for all leading business companies.

In the article, B?ne? (2011) underlined that knowledge is a strategic asset for a business company.  The concept of KM is guided by its attributes that help to practically realize knowledge as a strategic competitive advantage for the benefit of the company.  In the author’s work, one may find the six principal KM goal-oriented attributes.

The first attribute is revealed in the following way: KM is about people.  In other words, KM “is directly linked to what people know, and how what they know can support business and organizational objectives” (B?ne?, 2011, p. 78).  It draws on human ideas, intuition, motivations, and competency; in addition, one should remember that this principle is not technologically based.  The second attribute of KM provides with the idea that it is goal-oriented and orderly.  It means that KM is inseparably connected with organizational strategic objectives; for this reason, KM experts focus their interest only on the most practical, meaningful, and purposeful information.  According to the third attribute, KM is ever-changing, which suggests the idea that knowledge is associated with ongoing and fluid processes.  Thus, knowledge should be constantly updated, revised, tested, and even “obsoleted” when it is not practical anymore (B?ne?, 2011, p. 78).

The fourth attribute based on common ground and pooled expertise, alliances, and relationships says that KM is value-added.  Following this attribute, exchanging ideas on different councils, forums, and boards, experts from the field educate or advise managers on recent developments and trends.  The fifth attribute provides the idea that KM is visionary.  This attribute is expressed in strategic business terms, and in a manner that enhances buy-in, enthusiasm, and stimulates collaborative work to reach common goals.  Finally, the sixth attribute of KM says that it is complementary.  It can be practically integrated through organizational learning initiatives, for example, through Total Quality Management (B?ne?, 2011).

Knowledge management experts are often the employees of an HR department.  Proctor (2010) dedicated the book to the problems of knowledge managers and HR development.   The development of necessary employee skills for decision-making and innovation processes in business companies is one of the tasks of KM. Since innovations are associated with creativity, the creative skill has become of the most demanded skills in a modern business company.  The value of creativity in business cannot be underestimated, because only a person with productive thinking may generate new ideas, approaches, and strategies.  For this reason, the modern organizational KM should stimulate creativity in the company’s staff, and encourage the employees to develop the qualities of creative behavior.  For example, creative people usually “confront assumptions”, “exhibit curiosity”, “like to investigate new possibilities”, “are future-oriented”, “synthesis diverse elements”, etc. (Proctor, 2010, p. 18).

In addition, Proctor (2010) mentioned that creative problem-solving skills are also important for business companies that face new challenges every day.  KM workers should focus on the development of the following skills and strengths that can be easily taught, namely, fluency, flexibility, elaboration, and originality.  Undoubtedly, these features of the company’s staff members provide the organization with success.  Having these skills and strengths, an employee has an ability to generate many ideas, to create a varied mix of ideas, to add depth, details, mixtures of new perspectives and viewpoints, and to produce creativeness, uniqueness, novelty, and innovativeness (Proctor, 2010).

In Chang’s (2010) book, one may see the basics of KM that reveal another effective way for business companies to overcome challenges of XXI century environment.  Timely creation, preservation, dissemination of data, information, knowledge (its explicit and tacit aspects), and wisdom encompass one of the effective tactics of all business companies.  According to the author’s opinion, “data embody the recordings of observed phenomena” received from experiments, survey, and analysis (Chang, 2010, p. 475).  Through manipulation, interpretation, and categorization, users process the data, and by asking targeted questions, they extract information from this data.  After the information is tested for validity, it can be “codified and applied to a specific scenario as knowledge” (Chang, 2010, p. 476).  A certain part of this knowledge is of explicit type, while another one has a tacit nature.  Tacit knowledge is of special value; however, since it is in experts’ heads, this type of knowledge is difficult to preserve and transmit.  In order to gain wisdom, one should further process knowledge by ways of analogies, combination, extrapolation, contrasting, and pattern recognition to extend its application to other situations.  However, only highly experienced, talented workers with unique abilities and intellectual potential may gain this wisdom.  In today’s companies who take advantage from high informational technology (IT), all these processes should be performed very fast (Chang, 2010).

In other words, Chang’s (2010) mentioned effective way to overcome business challenges has a certain golden rule: if the company’s staff members and smart workers quickly respond to the changeable environment, and continuously create, preserve, and transmit the data, information, knowledge, and wisdom applicable to the organizational business interests, this company is far ahead of its time, and will always be successful.   All the processes mentioned above concerning data, information, knowledge, and wisdom should be accompanied with numerous essential elements that provide a business company with valuable instruments that help to show the effective performance.  The continuous application of work procedures, decision-making strategies, problem-solving methodologies, lessons learned, insights, experience, skills, know-how, heuristics, intuition, rules of thumb, etc leads to organizational success.  This tactics of a business company helps to achieve the ultimate goal of KM, “to apply wisdom to generate competitive advantages” (Chang, 2010, p. 476). In the context of business of XXI century, competitive advantages mean the most valuable organizational attribute that makes the company distinguished among its competitors, and progressive in creation of new products, services, and technologies.

One of the concerns of KM within the context of business companies is to preserve and disseminate explicit knowledge.  Usually, it is expressed in documents, work procedures, manuals, lessons learned, and best practices that are relatively easy to preserve and to share.  The successful performance of high-quality senior management may provide a company with an effective way to overcome challenges by controlling and organizing accumulated knowledge in an explicit form, avoiding its leak.  The alignment of KM efforts with the company’s business objectives and established knowledge-oriented culture will contribute to the effective preservation and dissemination of explicit knowledge (Chang, 2010).

Holsapple (2003) was one of the authors who paid special attention to KM of XXI century.  According to the author, since “in the Information Age we are all knowledge workers”, KM should maintain the unique individual and organizational assets (p. 60).  However, with the US experience of 9/11 World Trade Center attacks, one thing became evident: KM should be based on IT (Holsapple, 2003).  The author saw the main advantage of IT for KM in the following activities,

“enterprise-wide data collection and collaboration management, management’s determination to collect all the organization’s data into a single coherent real-time database and then to connect workers across the organization, and to others outside the organization, in ways that enhance communication volume, timeliness, and precision” (Holsapple, 2003, p. 61).

Moreover, IT-based KM provides a business company with greater effectiveness and efficiency, better utilization of the knowledge, and improved innovation.  IT products (up-to-date computers, other devices, and software tools) are aimed not to substitute human intellect, but to support it, and to facilitate many complex processes that can be time-consuming for people (Holsapple, 2003).  Ekins, Hupcey, and Williams (2011) also noted that many business companies rely on Web-based software tools.  For example, the authors underlined the effectiveness of such software as Microsoft SharePoint Server, Atlasian Confluence, and others; in addition, the companies use such software products as Movable Type and WordPress (Ekins et al., 2011).  All these IT elements make companies powerful and advanced in communication and KM.

Thus, such incorporated organizational element as KM provides a business company with effective ways of overcoming modern business challenges.  The implementation of data-information-knowledge-wisdom basic principle described by Chang (2010), practical realization of KM assets presented by B?ne? (2011), and retention of human resources along with IT support proposed by Holsapple (2003) are the most beneficial ways to cope with the complex business environment of XXI century.   Naturally, Proctor’s (2010) pieces of advice, and helpful software tools mentioned by Ekins et al. (2011) also contribute to the evident value of KM that provides business organizations with successful performance.

Development, Management, and Transfer of Tacit Knowledge in Business Organizations

The development, management, and sharing of knowledge are extremely important for each business organization.  However, the role of “know-what”, or explicit knowledge cannot overshadow the notable significance of “know-how”, or tacit knowledge (Smith, 2001, p. 311).  As one may see, the notable value of tacit knowledge is recognized by many authors and real-life organizations that should work faster to respond the changeable business conditions of XXI century.  The present section of the literature review is dedicated to tacit knowledge and the essence of its creation, management, and sharing.

Smith (2001) mentioned that taking into consideration today’s business environment, “people must do more work in less time” (p. 311).  In many modern business companies, workers may lack adequate training and education along with explicit knowledge, “struggle to keep up”, and have to rely on their intuition, talent, and common sense or tacit knowledge “to get through the day” (Smith, 2001, p. 311).  Thus, limits of time, deadlines, and accelerating work progress suggest the usage of tacit knowledge.  For this reason, many companies use tacit knowledge of their employees to augment individual’s experience and academic learning.  Focus on the tacit knowledge is more demanded in all business aspects of the current epoch where tacit knowledge is the most demanded asset, and a valuable human resource (Smith, 2001).  According to Smith (2001), tacit knowledge can be developed only among talented, loyal, and productive workforce.  Smith mentioned that “90 percent of the knowledge in any organization is embedded and synthesized in peoples’ heads” (p. 311).  It means that corporate success is mostly based on employees’ tacit knowledge.  Naturally, a company may attract new staff, and expect to benefit from tacit knowledge of newcomers, but the most effective way is to provide all staff (experienced workers and newcomers) with learning.  Although tacit knowledge is an invisible item, it is probably the most important aspect of knowledge.  The tacit knowledge “plays a key role in leveraging the overall quality of knowledge” (Smith, 2001, p. 312).

For Smith (2001), tacit knowledge development happens in the interactive learning environment encouraged and supported by the company’s members.  In many cases, new pieces of tacit knowledge are being created on the basis of personal experience, individual skills and talents, and physical accomplishments.  Thus, to create tacit knowledge means, for example, to generate new practical ideas spontaneously.  Tacit knowledge development is greatly stimulated by learning, observation, practicing, and even imitating.  To create a tacit piece of knowledge on the basis of explicit knowledge, an employee may articulate, interpret, or internalize his or her explicit knowledge so that it can be understood and accepted by others.

Heneman (2002) added that action learning, simulations, and on-the-job experiences help to generate tacit knowledge from the explicit one.  In addition, “It is easier to transform explicit knowledge into tacit knowledge when people cooperate, trust each other and willingly contribute their own valuable knowledge resources” (Smith, 2001, p. 316).  In general, the author’s article provides the idea that communicative and collaborative atmosphere creates a favorable condition for tacit knowledge generation and sharing.

Heneman’s (2002) work suggests Smith’s (2001) point about communication as one of the favorable conditions for tacit knowledge development and sharing.  In the book, the author underlined, “the communication of tacit knowledge requires personal communications through discussion and demonstrations” (Heneman, 2002, p. 189).  Thus, enhancing the colleagues’ discussion about certain issues related to the company’s problems and concerns, and demonstrating one’s creative ideas through, for example, projects, the company enhances generation and transmission of tacit knowledge.  The author of the book believed that tacit knowledge can be created if a person can accumulate past experiences, and apply them to a concrete business situation.  For the author, the nature of tacit KM consists in the provision with socialization and externalization.

In this context, HR practices implemented in the organizational environment should encourage employees to use their background experience in the decision-making and problem-solving activities.  In addition, HR activities should provide the company with free flowing of tacit knowledge thought the organization.  In general, exchange of tacit knowledge is often realized through employees’ face-to-face interactions, so HR-oriented strategies of tacit KM should mainly focus on them (Heneman, 2002).

Vance, Vance, and Paik (2010) recognized the exceptional role of HR management in transferring the firm’s critical capabilities based on tacit knowledge of its employees.  HR managers encourage “learning by doing”, and value staff members’ learned skills (in other words, “know-how”) resulting from personal experience.  They treat their tacit knowledge as the unique practical expertise that cannot be derived from manuals or other sources of information.  Owing to the invisible and inexplicable nature of tacit knowledge, its management “remains largely elusive” (Vance et al., 2010, p. 103).  Nevertheless, according to HR managers, tacit knowledge of the organization’s members can be revealed through its application.  Only few people recognize the effectiveness of HR managers in tacit knowledge transfer, so tacit knowledge sharing has become the responsibility of KM experts believed to be the best specialists in this elusive but essential process (Vance et al., 2010).

Held by individuals, tacit knowledge is not easy to be transferred.  However, KM experts believe that teamwork and training are important and helpful practices to share tacit knowledge not consciously reflected upon.  Performing work tasks, tacit knowledge can be simply drawn on.  In other words,

“this knowledge often is shared through team working arrangements in which the less-experienced employee can observe the actions and decision-making behavior of the more expert employee.  Training professionals also can observe these experts to capture their tacit forms of expertise and convert this tacit knowledge into more explicit knowledge and training objectives to be disseminated systematically throughout the firm” (Vance et al., 2010, p. 213).

Thus, tacit knowledge acquisition results from training and active involvement of experienced and inexperienced employees in team working arrangements.  Foos, Schum, and Rothenberg (2006) were the authors who expended the area of tacit knowledge transfer in the academic literature.  They investigated this process between the business partners involved in the collective process of product development.  The authors noted, “tacit knowledge is often learned via shared and collaborative experiences”; in addition, it is gained through participation and “doing” (Foos et al., 2006, p. 7).  In general, tacit knowledge exchange has personal nature because tacit forms of knowledge are based on personal expertise and past experiences.

Foos et al. (2006) identified some factors that play an extremely important role in the process of tacit knowledge exchange and share.  Trust is the first recognized essential factor that stimulates the process of tacit knowledge dissemination.  In the article, the authors underlined, “the levels of risk and uncertainty that are associated with tacit knowledge transfer are reduced by trusting relationships” (Foos et al., 2006, p. 7).  In addition, the importance of trust notably grows in the complex, changeable, and challenging business environment.  If business partners trust each other, their interaction and tacit knowledge exchange are facilitated.  In this context, honesty in information sharing should be taken into account as well.  One of the authors’ pieces of advice should be mentioned; according to them, rust equals honesty in the business environment, and business partners should know this (Foos et al., 2006).

However, there are some details that influence the level of trust between individuals.  First, communication plays the crucial role in tacit knowledge transfer.  In this context, the communication between business partners is effective if they share common cultural, social, and linguistic characteristics.  Correspondingly, if they are from diverse backgrounds, their communication is less effective, and tacit knowledge share will not be successful.  Second, the early start of joint relationships based on trust is another important detail that influences the degree of trust between partners.  Foos et al. (2006) noted that the earlier business partners start their relationships, the more feasible and successful are results they have.  Thus, the relationship of trust (so-called “healthy relationship”) between individuals built upon early teamwork, mutual understanding, and shared cultural and social context is an essential prerequisite of effective tacit knowledge transfer in the business world of XXI century (Foos et al., 2006, p. 8).  The business experience described above showed that business partners who held each other in high regard and had shared goals emerged on the early stage of relationships, the process of product development was more effective and successful than in the case of the partners whose level of trust was low (Foos et al., 2006).

In their article, Foos et al. (2006) stated that diligence is the second factor of the successful tacit knowledge exchange.  The authors underlined, “due diligence is a critical step of any alliance formation” (Foos et al., 2006, p. 8).  Due diligence reduces uncertainty and possible risks associated with the transaction, and increases the successfulness of partnership between business companies.  In addition, this factor should be accompanied with strategic and cultural compatibility that is critical for tacit knowledge share.  Thus, diligence based on partners’ trust and compatibility undoubtedly increases the success of tacit knowledge transfer (Foos et al., 2006).

Vance et al. (2010), Heneman (2002), Foos et al. (2006) and other authors mentioned in the section demonstrated the peculiarities of tacit knowledge in the business environment, and proved that tacit knowledge development, management and transfer are not as easy task as it may seem.  Being an intangible human asset, tacit knowledge embraces individuals’ unique and invaluable experience, skills, and expertise resulting from practice.  Smith (2001) concluded that tacit knowledge can be developed only in the communicative and interactive environment.  In addition, the author underlined that these forms of knowledge emerge differently; in case of articulation, interpretation, and externalization of explicit knowledge, and through observation and practice.  Heneman (2002) and Vance et al. (2010) agreed with the following point: although this invisible and elusive aspect of knowledge cannot be managed easily, today’s KM experts provide the organization’s employees with effective tacit knowledge exchange through team working and training.  Foos et al. (2006) showed that tacit knowledge transfer is greatly facilitated if employees have mutual trustful relationship, honesty in information sharing, and shared goals along with due diligence produce feasible results in the dissemination of intangible and non-codified tacit knowledge.

Advantages of Tacit Knowledge for Business Organizations

Such authors as Holden and Glisby (2010), Horvath (n.d.), Schiuma (2010), and others dedicated their works to the advantages of tacit knowledge in today’s business world.  The first notable advantage is probably rooted in the fact that under uncertain and challenging conditions of the modern business, tacit knowledge should be treated as both an individual and a collective competitive advantage reflected in the performance of a company.  For example, Holden and Glisby (2010) dedicated their book to the organizational creation of knowledge advantages, and chose the tacit dimension as the most priority one for a business company.

Holden and Glisby (2010) noted that a “competitive advantage does arise from exploiting tacit knowledge” (p. 19).  It means that taking advantage of staff’s tacit knowledge through its application is a beneficial practice of gaining a competitive advantage.  In other words, tacit knowledge increases the competitiveness of a company, thus making it distinguished among other competitive organizations (Holden & Glisby, 2010). For example, tacit knowledge of a senior manager can improve the productivity of a company’s staff.  The creation and application of the new motivation strategy is a practical realization of tacit knowledge.  A senior manager would be unable to apply this form of tacit knowledge if he did not taken advantage from his past experience and strategic skills gained at the previous job.

In addition, Holden and Glisby (2010) paid attention to another advantage of tacit knowledge related to collaboration.  Articulating and applying tacit knowledge, staff members often need to cooperate with each other in order to make an optimal decision, to design a new product, to elaborate some strategy, to create a collective idea, etc.  Harmonizing and synchronizing individuals’ thoughts, approaches, and innovative ideas, cooperation transforms colleagues into allies for the sake of the common goal that meets the organizational objectives (Holden & Glisby, 2010).  Undoubtedly, this collective effort influences the quality of work of the whole business organization.

The second mentioned advantage of tacit knowledge gives raise to the next advantage, namely communication and different forms of interaction between people.  Horvath (n.d.) believed that tacit knowledge as well as its explicit forms is “socially constructed”, and thus, are inseparable “from the social interactions through which it is developed” (p. 14).  In his article, the author underlined, tacit knowledge can be transferred only if people communicate or interact somehow with each other (Horvath, n.d.).  According to the author, this social interaction should be grounded in shared values; for this reason, one of the main knowledge management concerns is provision company’s staff with the frequency and high quality of these interactions.  In addition, interacting with each other, the colleagues practice, develop, and improve their communicative skills.  Communication is usually a precondition of social relations; in this context, communicating and interacting, people establish certain relations that can bring benefits to a business organization, for example, increasing staff’s mutual understanding (Horvath, n.d.).

Schiuma (2010) greatly extended the understanding of tacit knowledge with his book that makes one reveal the next advantage of tacit knowledge.  According to the author, in order to survive in today’s business world, a company needs to create its own business values.  The book’s author believed that a business value is an intangible asset of an organization that can be expressed in different ways.  In other words, a business value is a new thought, an innovative idea, an outstanding product or service that makes a company special, distinguished, and unique against the background of its competitors.  The book suggests that only in a dynamic business environment, where forms of tacit knowledge continuously interact, a company may create its values (Schiuma, 2010).  Thus, the process of value creation is the generation of something innovative; in addition, during this process, one may reconsideration already existing phenomenon, and transform it into a certain innovation.  For example, during the decision-making process, or after a fruitful discussion of the problem, staff members express an unconventional approach to the product concept that will give an organization an opportunity to increase its revenues; this is a bright example of the business value creation.

Nemati and Barko (2004) revealed one more advantage of tacit knowledge for a business company.  In their book, the authors proved that collective tacit knowledge makes an organization show optimal performance (Nemati & Barko, 2004).  For example, a project team is given the task to improve the company’s business performance within a short period.  Consequently, a group of people (colleagues) needs to combine all their efforts and intangible tacit resources to help their company to get through the hard times as soon as possible.  Exchanging their tacit forms of knowledge through skills, background experiences, intuition during the decision-making process, the project team may work out a practical strategy aimed at the optimal allocation of resources.  If the resources are allocated properly, the company will show its optimal performance relying on the applied forms of tacit knowledge of its carefully selected project team (Nemati & Barko, 2004).  As one may see, the involvement of different skilled and experienced employees into a single activity may produce the optimal solution of a certain business problem.

Besides, Nemati and Barko (2004) found out that tacit knowledge, in particular its management and transfer, makes one use informational technologies.  Informational technologies are widely used among business organizations, since they are aimed to facilitate and support an employee during a working process (Nemati & Barko, 2004).  Often, in order to create, a new product, one should process a great volume of information with the characteristics and peculiarities of existing products.  Data mining with the help of sophisticated computer software is a widely spread knowledge management process in all companies.  As one may see, tacit knowledge is often produced from the explicit forms.  Processing figures, graphics, tables, numbers, and other related data is a time-consuming activity, but IT devices and tools help to convert necessary data effectively, which provides the ground for new product creation (Nemati & Barko, 2004).  This way, explicit information about other products gives a company’s product designer an opportunity to find out how to create an innovational product that will positively influence the organizational reputation.

One more advantage of tacit knowledge is suggested by Subashini’s (2010) article dedicated to the essence of tacit knowledge for an organization.  The author’s article claims that tacit knowledge helps to build organizational wisdom (Subashini, 2010).  In other words, employees’ professional expertise, skills, and insight gained through personal experience can be converted into a company’s wisdom reliant on collective tacit knowledge of the staff.  For the author, wisdom is “to judge and by so doing produce understanding where there was no previous understanding” (Subashini, 2010, p. 36).  The following situations may serve as a bright example of the process that helps tacit knowledge to convert into organizational wisdom.  During the collective problem-solving activity (for example, brainstorming), one of the employees presents an irrational vision of the problem solution; however, with the help of other employees’ skills and experiences, this vision can generate a new form of understanding.  The subsequent analogous company’s problems will be solved by the same way, and gradually, the business organization will gain wisdom – the peak of knowledge hierarchy (Subashini, 2010).

Thus, summarizing all mentioned advantages of tacit knowledge that have a beneficial effect for a business organization, one can mention the following six positive attributes of tacit knowledge:

• enhancing business competitiveness,
• encouraging interpersonal cooperation, communication, and other forms of interactions,
• leading to value creation,
• resulting in optimal organizational performance,
• making company’s employees take advantage of high informational technologies, and
• providing an organization with wisdom.

Naturally, the list of the advantages stated above can be extended; however, the most essential ones for business organizations have been identified.  In general, modern knowledge management experts are interesting in the design of effective tacit knowledge management and transfer techniques that would help an organization to realize the mentioned advantages (Holden & Glisby, 2010).  Knowing the advantages of tacit knowledge, the business company staff starts valuing such intangible phenomenon as gut feeling, intuition, experience, and other tacit forms of knowledge that help to achieve business success.

Tacit Knowledge Management Techniques

Tacit KM techniques play a significant role in all business organizations interested in survival, success, and advancement.  For example, Dalkir (2005) revealed that theoretical framework of tacit KM strategies differs from its practical application in the business context.  Hawamdeh, Stauss, and Barachini (2008) described the ways that help employees to gain new competencies and professionalism.  Serrate (2008) paid attention to the collective tacit KM process, where communication and interaction are the most essential concepts.

Dalkir (2005) mentioned that KM techniques are the tools that enhance and enable knowledge creation, codification, distribution, etc.  In addition, many essential processes are incorporated in these techniques.  Communication, collaboration, adaptation, content creation, networking are only some of them (Dalkir, 2005).  The tacit KM strategies and techniques discussed below are effective tools that have proved their exceptional value in business organizations.  Hawamdeh, Stauss, and Barachini (2008) paid attention to the fact that decision-making and problem-solving processes and activities associated with them play a significant role in tacit KM of a company.  The authors’ book may provide modern managers with efficient KM techniques that enable the company’s staff to transform theoretical business information into practical organizational results.  The authors underlined that during the problem-solving process, tacit knowledge of the personnel is undoubtedly managed (Hawamdeh et al., 2008).

Hawamdeh et al. (2008) studied one of the business examples that may demonstrate the nature of a complext problem-solving process.  According to the authors, product designing as a way to gain a competitive advantage and survive in the uncertain environment is a typical problem-solving process involving one or several actors, whose designing activities are controlled by leading product designers.  These actors should actively participate in decision-making in order to come to the best decision.  Their activities in problem-solving and decision-making dimensions involve them into complex processes (data mining, data processing, application of individual expertise, application of specific skills, etc.) needed to design an outstanding and desired product that will make an organization the top leader on a new market.  Thus, designing a new product, a project team assigned to accomplish this task is involved in problem-solving and decision-making processes that make each member of the team to coordinate thoughts and actions with another one to come to the common goal (Hawamdeh et al., 2008).  Alwis, Hartmann, and Gemünden (2004) found that brainstorming is one of the effective ways to create different solutions or ideas.  According to the authors, the main task of the project team members is to combine and develop them in such a manner that they would transform into an optimum solution or idea.  Brainstorming inspires creative thinking and makes a person convert tacit forms of knowledge into explicit ones (Alwis et al., 2004).

However, the value problem-solving and decision-making processes with all their essential activities (brainstorming is one of them) cannot diminish the significance of effective tacit KM strategies.  According to Karadsheh, Mansour, Alhawari, Ghassan, and El-Bathy (2009), there are push and pull mechanisms of tacit KT.  The push strategy, widely used in marketing, is one of the most effective tacit KM techniques aimed to increase the effective information management between two individuals (for example, a buyer and a seller).  Today, each business organization is interested to push the products (goods/services) toward the consumers.  One may see, in case of the push strategy, individuals have to explicitly encode their knowledge into a database (in other words, a shared knowledge repository), and to retrieve necessary knowledge provided by other individuals (Karadsheh et al., 2009).  As the authors mentioned, “push strategy makes a decision on what information is to be allocated to whom and automatically alert users of changes” (Karadsheh et al., 2009, p. 76).  For Malkotra (2005), the push strategy is associated primarily with input and processing of the tacit knowledge codified into explicit information.  People push their creative ideas, professional expertise, background experience, personal information, and innovative decisions (Malkotra, 2005).

Correspondingly, the pull mechanisms work in another way; the implementation of the pull strategy is associated with the individual’s involvement into knowledge sense-making.  For example, an expert provides a person with the personal insight related to a certain piece of information.  Karadsheh et al. (2009) noted that the “pull strategy is based on user requests and needs” (p. 76).  In contrast to the push strategy, this one facilitates sense making of the received information.  The pull strategy is aimed to activate innovative and creative capacities of people (Malkotra, 2005).

As one may see, push and pull strategies have common and opposite features.  On the one hand, the tacit form of knowledge presented in both mechanisms has different aims.  In the push strategy, it is aimed at the acquisition and processing of information, but in the pull strategy, a person is interested in the outcomes of tacit knowledge through making sense (Karadsheh et al., 2009).  On the other hand, both push and pull strategies complement each other, and make an individual treat all pieces of information as something that should be gained, processed, and understood (Malkotra, 2005).

Community of practice is the next tacit KM technique that should be thoroughly examined.  From the anthropological perspective, a community of practice is a group of people devoted to the job they do; the group members regularly interact with each other, and learn to advance in a certain aspect of their work (Serrate, 2008).  Serrate (2008) formulated the definition of this technique in the following manner,

“Communities of practice are groups of like-minded, interacting people who filter, amplify, invest and provide, convene, build, and learn and facilitate to ensure more effective creation and sharing of knowledge in their domain” (p. 1).

All communities of practice have their unique attributes that make this tacit KM technique distinguished.  Usually, a community of practice differs from other techniques because it has its domain (the area of shared inquiry), community (the sense of belonging in group members who have certain relationships), and practice (the body of knowledge, documents, cases, methods, tools, and stories); nevertheless, all communities of practice share some common features.  Serrate (2008) paid attention that first, all communities of practice present peer-to-peer collaborative networks.  Second, the willing participation of the group members is the main driving force for all communities of practice.  Third, each of the communities of practice is “focused on learning and building capacities” (Serrate, 2008, p. 1).  Finally, these communities are involved in the process of knowledge sharing, expertise development, and problem solving.

This technique brightly shows that tacit KM is inseparably connected with society and communication.  All members of these communities are human beings with their invaluable and unique professional expertise, experience, skills, individual features, etc.  Serrate (2008) underlined that communities of practice are always in progress of communication, since they actively use all means of communication.  The communication platform of these communities is accessible and extremely helpful in acquisition, processing, distribution, and understanding of information.  Correspondingly, the most significant value of these communities is the ability to identify, generate, store, share, and use tacit knowledge.  In addition, they often arrange regular meetings and teleconferences, and have daily information interaction.  Their knowledge network workspace is the area of collective tacit pieces of knowledge that is managed in different ways. The power of communities of practice lies in their relationship building, collaboration mechanisms, knowledge sharing, learning, capture, and storage (Serrate, 2008).  However, the main success of communities of practice is provided mainly by the beneficial communication platform.

Daele, Deschryver, Gorga, and Künzel (2007) understood communities of practice as groups of professionals who share their ideas, knowledge, and practices in a common domain.  In their article, the authors noted, “more and more companies and public institutions turn to the implementation of communities of practice, both for capitalizing knowledge and for improving the experience and knowledge of their employees” (Daele et al., 2007, p. 1).  Thus, modern business organizations recognize the value of communities of practice; in this context, on of the best advantages of communities of practice is an opportunity for learning.

Daele et al. (2007) distinguished some tools that support a community in the learning process and effective tacit KM.  The first essential tool is the multitude of personal and common objectives.  Members of a company are usually united by common individual goals aligned with the organizational objectives.  The second tool is the regular and rich interactive environment.  A workplace for community members often transforms into the area where people exchange thoughts and ideas, or participate in decision-making or problem-solving processes that make them coordinate their desires and actions with each other.  The third and probably the most valuable tool is range of produced resources called “common goods” or the “wealth” of the community of practice (including its “memory”) (Daele et al., 2007, p. 1).

Knowledge mapping is one of the tacit KM techniques that help company members to get the access to organizational knowledge repository where individual and collective tacit forms are stored.  Ebener et al. (2008) viewed knowledge mapping as a supportive technique in tacit KM the benefit of which cannot be underestimated.  In addition, knowledge mapping helps to convert tacit into explicit forms of knowledge; a knowledge map is tacit knowledge presented in the explicit form.  It is not enough to say that knowledge mapping is a simple process of knowledge map creation.  According to Ebener et al. (2008), “a knowledge map is an association of items of information (e.g. process, network, policy, geography, …) preferably visual, where the association itself creates new, actionable information” (p. 636).  For the knowledge-mapping process, five following steps are peculiar: data acquisition, manipulation, storage, processing, and visualization (Ebener et al, 2008, p. 637).

A knowledge map is a concrete and tactical scheme that visualizes both explicit and tacit forms of knowledge.  Busch, Richards, and Dampney (2001) believed that the main power of a knowledge map lies in its ability to articulate tacit knowledge that by its nature cannot be explained or codified.  As the authors underlined, knowledge mapping plays a significant role strategic business and preservation of collective tacit knowledge.  It should be accessible, because each employee of a company should have a possibility to use it for performance of some task.  A knowledge map where the crucial points of a certain business idea are presented can be uploaded in organizational computer network or the Internet.  In addition, a knowledge map can be changed, expended, and modified with the lapse of time.  A knowledge map may reflect complex processes, and guide the company if it faces analogous problems, for example (Ebener et al, 2008).

Thus, the present section of the literature review identified several tacit KM techniques used in a business organization.  Hawamdeh et al. (2008) noted that decision-making and problem-solving processes and activities play an exceptional role in activation of tacit knowledge in employees.  Push and pull strategies, offered by Karadsheh et al. (2009) and Malkotra (2005) help to organize information process, and provide an employee with effective acquisition, processing, and understanding of information or piece of knowledge.  Community of practice described by Serrate (2008) and Daele et al. (2007) is a valuable technique, since it makes people interact and collaborate with each other, exchanging tacit knowledge.  Busch et al. (2001) and Ebener et al. (2008) revealed the beneficial nature of knowledge mapping, and showed that a knowledge map is an accessible tacit form of knowledge expressed in a certain business idea stored in collective tacit knowledge repository of a company.

Tacit Knowledge Transfer Techniques

Besides tacit KM techniques, there are many tacit KT tools as well.  In this section, five strategies will be revealed, and their effectiveness in the business environment of modern organizations will be proved.  According to Schooley (2010), mentoring helps to drive employee’s talent development.  Mentoring has been widely used by business organizations because it has always been believed a proven technique for developing “in-house talent” (Schooley, 2010, p. 1).  Mentoring plays a significant role in tacit KT, since employees’ talents lie in the tacit dimension.  The author of the article revealed that

“Mentoring involves a formal or informal developmental partnership where employees receive information, advice, and guidance from an experienced professional, usually within the organization, who has expertise and a strong desire to help others grow in their jobs” (Schooley, 2010, p. 2).

A mentor is not a supervisor, but a more experienced colleague with whom an employee may communicate honestly and freely without fear of being evaluated.  Nowadays, more and more business companies formalize mentoring programs and install mentoring software.  It should be mentioned that a mentor is chosen by a participant of a mentoring program (an inexperienced employee); however, there are mentor managers who make the choices based on the profiles of the employees.  Voluntary participation is a key for successful mentoring and employee’s outcomes.  To be encouraged but not forced is important for all participants of mentoring programs; only in this case mentoring goals will be achieved (Schooley, 2010).

Mentoring undoubtedly has beneficial nature; Schooley (2010) outlined some of the advantages of mentoring.  First, mentoring suggests that “the mentoring pair commits to work together for a period of time” (Schooley, 2010, p. 2).  Working together, an employee and a mentor share their tacit knowledge; an employee may adopt best skills and practices that will be helpful for the job.  However, a mentor may work not only with one employee, but with a group as well. Second, mentoring happens only in the environment of working partnership.  In its turn, partnership leads to the establishment of interpersonal relationships based on trust, respect, honesty, and mutual understanding.  Third, mentoring saves the company money, and contributes to the employees’ growth.  For example, “the California Nurse Mentor Project found that mentoring reduced RN attrition, saving hospitals between $1.4 million and $5.8 million over three years” (Schooley, 2010, p. 4).  In addition, mentoring may bring such benefits as reduced recruiting costs and turnover; mentoring contributes to career growth of a mentor and an employee, and increases leadership capacity and bench strength (Schooley, 2010).  For Haytmanek, Leavitt, and Lemons (2003), the most positive outcomes of mentoring are increased retention rates of company’s employees, individual success of the protégé, and capture of tacit knowledge.  For this reason, all changes that happen after the completion of a mentoring program should be carefully monitored by the HR department (Haytmanek et al., 2003).

Another tacit KT technique that can be associated with mentoring is coaching.  Blow (2005) noted that coaching strategies can help experts share their expertise.  In the article, the author underlined that “knowledge is the life-blood of organizations, but the larger they grow the more difficult it becomes to share that knowledge and expertise” (Blow, 2005, p. 1).  However, coaching strategies implemented in modern organizations may help to transfer tacit knowledge effectively.  For the author, tacit knowledge is a specific and extremely valuable sort of knowledge expressed in personal insight and “intuitive know how” received through long-term practice and experience of individuals (Blow, 2005, p. 1).  Although tacit knowledge is hard to explain, it can be easily captured during the coaching process.  The success of experts stems from their unconscious competence, individual many-years experience, and unique professional expertise.  However,

“If their expertise has become so deeply internalized to the extent that they no longer find it easy to explain what they do, how they do it, or how they make decisions based on it, the risk is that the ‘know-how’ will remain with those individuals alone” (Blow, 2005, p. 2).

In this context, coaching seems to be an effective means to externalize tacit knowledge held in experts’ heads.  During coaching, a skilled coach actively interacts with an inexperienced employee without interrupting work; a coach shares tacit knowledge (for example, in the form of instructions), and gives an employee an opportunity to acquire necessary skills.  In addition, coaching is a social process that involves both a coach and an employee in communication and different interactions that are then beneficially reflected in experience of both (Blow, 2005).

Blow (2005) revealed the peculiarities of coaching work as well.  The author mentioned that coaches work with senior employees interested in their success and improved performance of their organization.  Coaching helps an employee to make better business decisions, to work more effectively in a team, and to explain their tacit pieces of knowledge in an explicit form.  A coach should be able to translate “from unconscious competence to conscious competence” (Blow, 2005, p. 10).  Although expertise is hard to explain, it should be somehow verbalized for employees’ benefit.  An essential component of coaching is a learning element.  If a coach is an effective communicator and a good teacher, he or she will easily explain certain things unknown to employees, and will make them solve the “puzzlement” without other’s help (Blow, 2005, p. 10).  Thus, coaching is a truly helpful tacit KT technique that helps a coach to share intuition, insight, and expertise with inexperienced employees who lack some necessary professional skills.  Through active interaction, an employee can adopt practice, experience, and valuable qualities of a specialist needed for effective performance.  During coaching, people may reevaluate past practice for reinforcement or improvement, learn how to communicate with others effectively, and verbalize the in-depth understanding of their personal knowledge whichever associations it may have (“gut reaction”, intuition, or tacit knowledge).

Besides mentoring and coaching, there are other ways to transfer employees’ tacit knowledge.  Soderquist and Prastacos (n.d.) mentioned another effective tacit KT technique, job rotation.  According to the authors of the article, job rotation is one of the most productive and profitable techniques of tacit knowledge transfer and sharing.  In general, job rotation is a widely spread management technique among today’s organizations.  This technique is used mostly to train employees because job rotation has an essential learning component.  In organizations that practice this technique, employees are treated as learning mechanisms that have an opportunity to learn necessary skills that may influence their advancement within a company for which they work.  Naturally, the experience gained by employees is valuable; in addition, training boosts self-efficacy and morale.  Moreover, job rotation allows a company to staff key positions with the most competitive and skilled individuals.  As a result, an organization runs more efficiently, and saves more money. Job rotation can be used to alleviate mental and physical stress of the employees who work at the same positions continuously.  However, the authors recognized the effectiveness of job rotation in tacit KT, and proved this fact with some pieces of evidence (Soderquist & Prastacos, n.d.).

Soderquist and Prastacos (n.d.) underlined that many companies practice job rotation within the operational development team.  In this context, a practical aspect of job rotation cannot be underestimated.  The authors noted that many organizations offer numerous possibilities of job rotation in the employees’ development work.  For example, the authors revealed that there can be “possibilities of moving both between different professions within the same division, and between different divisions, either continuing in the same profession or changing job” (Soderquist & Prastacos, n.d., p. 12).  In addition, job rotation can be desired by employees who want to gain new experiences and pieces of knowledge to enrich their professional expertise.  In this context, job rotation transforms in the opportunity to develop personal competences.  Within the framework of one organization, rotation of jobs should be treated as a personal development incentive, an opportunity for job enrichment, and a chance to take advantage of on-the-job training that accompanies this process.  For this reason, some companies perceive job rotation as a method of career evolution (Soderquist & Prastacos, n.d.).

International Association for Continuing Education and Training (IACET) (2009) offered one more tacit KT technique, phased retirement.  The research of this organization showed that “there will not be enough skilled talent to replace the retirees from the aging workforce” (IACET, 2009, p. 2).  In this context, the transfer of tacit knowledge held in the heads of the retiring personnel assumes great importance for younger employees.  There is a tendency that many older workers would prefer phased retirement rather than transition to total retirement from full-time employment.  The organization’s study revealed some pieces of evidence related to those who phase into retirement,

“They may prefer gradually working fewer hours than during the prime years of their careers, perhaps with less pressure and fewer responsibilities, but not stopping work altogether.  They are valued by employers for their maturity, experience, work ethic, knowledge and reliability” (IACET, 2009, p. 2).

Usually, the work schedule of such workers is flexible, but these older employees participate in the essential process, the tacit KT.  Older employees are believed to be bearers of valuable knowledge and skills critical for a business company.  For this reason, the company’s HR managers encourage these critical employees to transfer their crucial skills, expertise, and abilities.  Thus, the essence of phased retirement presupposes that gradual retirement allows a valuable old employee to transfer his or her personal experience and skills to younger employees.  In addition, phased retirement gives an older employee an opportunity to feel necessary and respected; this technique plays an undoubtedly essential role in talent retention as well (IACET, 2009).

The retention strategy is considered an effective tacit KT technique because it allows retaining talents of valuable workers.  El-Sayed (2007) noted that this strategy has a beneficial nature of younger employees or novices who may adopt the expertise, practice, and skills of a more experienced worker.  The author of the book underlined that employees’ retention within a business company is extremely essential, since expertise of valuable workers has always been associated with organizational wisdom.

Lochhead and Stephens (2004) mentioned that worker retention is highly important in tacit KT.  The authors noted, “when a business loses employees, it loses skills, experience and ‘corporate memory’” (Lochhead & Stephens, 2004, p. 1).  If a valuable employee is lost, the organization may face low productivity, profitability, and product or service quality.  Thus, to retain a skilled and experienced worker with great professional expertise is the number one priority for the HR department.  The authors agreed that retention of valuable employees for tacit KT is a matter of skills management; in other words, “everything that has to do with recruiting, maintaining and developing the necessary mix and levels of skill required to achieve organizational and business objectives” (Lochhead & Stephens, 2004, p. 1).  In this context, retention of talented and skilled workers seems to be reasonable and beneficial.

In their work, the authors revealed best practices in retention and tacit KT applied by modern organizations.  Competitive and fair compensation is probably the most essential point in cases when a valuable worker should be attracted and retained.  Lochhead and Stephens (2004) pointed out, “common best practices include the use of industry surveys to benchmark and position wage and salary structures to be fair and competitive” (p. 2).  Flexible and adequate benefits are another effective practice; it shows that a company is fair and supportive in relation to its employee.

Taking into consideration diverse needs of the employees, companies provide a worker with a range of benefits which can be chosen.  For this reason, benefits packages should be flexible enough to satisfy a company and an employee (Lochhead & Stephens, 2004).  Innovative compensation systems are one more practice that can be used.  The essence of this practice is motivation of membership-oriented behavior in employees (in other words, commitment).  Pay systems (for example, skill-based pay), gain sharing, and bonus plans are the possible ways of realization of this practice (Lochhead & Stephens, 2004).

As one may see, some tacit KT techniques were discussed, and their effectiveness in business environment was proved.  Schooley (2010) and Haytmanek et al. (2003) revealed that mentoring and coaching are best ways to transfer experts’ skills, experience, and practices to younger inexperienced workers.  Job rotations were recognized by Soderquist and Prastacos (n.d.) as the effective method of new forms of acquisition and career evolution.  The importance of phased retirement, and retention of valuable workforce were demonstrated by IACET (2009) and El-Sayed (2007); the authors underlined that expertise, talents, abilities, and other tacit forms of knowledge should be retained for the benefit of the company and other employees.  The discussed tacit KT techniques brightly show that modern business companies value their skilled and experienced workforce; moreover, the representatives of these companies encourage tacit KT process by applying various techniques to enrich and maintain organizational wisdom.

Tacit Knowledge Management and Transfer Techniques in Baytech Company

In the complex, turbulent, and changeable business environment of XXI century, companies remain successful and extremely competitive partly due to their effective tacit knowledge management system. The example of Baytech Plastics (sometimes referred to as Baytech), an industrial Canadian corporation, will reveal what helps this business organization to stand out from other ones. In other words, the organization’s attributes associated with its tacit knowledge management and transfer techniques will be presented.

First of all, the specificity of Baytech Plastics should be presented in order to understand its individual tacit knowledge management system better. Founded in 1946, Baytech Plastics, Incorporation is an official trademark associated with 50 years of thermoplastic and thermoset plastic processing expertise. This company presents a leading member of Ontario’s fully integrated plastic industry distinguished by the skilled workforce, reliable resin supplies, and necessary support services that may fulfill all needs for plastic components (Canadian Plastics Industry Association, 2007). To be more specific, this industrial Canadian company makes “custom plastic components and assemblies ranging from more than six feet in length to less than .01 gram in weight, using ABS compounds, polycarbonates, engineered plastics and bulk molding compounds” (Baytech, 2012, para. 2). It is essential to admit that this industrial giant is ISO 9000-certified, and has its own research and development (R & D) sector (Baytech, 2012, para. 2). Baytech Plastics is an extremely competitive North American and global producer of produces high-quality plastic components and assemblies that are distributed and sold around the world. The products of Baytech Plastics have been used in mining, toy, and automotive industries of different countries (Baytech, 2012, para. 5). In addition, the company has been internationally recognized as an effective and successful business organization, whose products have always been demanded, and whose health and safety, environmental, and HR policies have been appreciated. Overall, this company is famous for its good reputation, high-quality products, and unchallenged competency in its business.

One may agree that the company’s success is a result of its high-quality products; however, the true reason is presented by its effective tacit knowledge management system. According to Baytech official website, the company uses green initiatives, continuous quality improvement, and advanced product quality planning (Baytech, 2012, para. 1). All mentioned features originate from the company’s tacit knowledge management system are inseparably connected with the special company’s HR policy that should be revealed in detail. It is essential to note that the mentioned would not become the reason for Baytech’s success, if the best practices in retention and knowledge transfer were not implemented. According to Canadian Labour and Business Center (2004), a wide range of ways to retain employees and to ensure knowledge transfer can be identified; hence, it is necessary to provide the list of all company’s best practices along with the specificity of their implementation within the organization. Baytech follows the next practices in retention and knowledge transfer:

• Competitive and fair compensation. It helps the company to attract and retain talented and competent employees; besides, this practice supposes the usage of industry surveys to benchmark salary structures and position wage that should be competitive and fair (Canadian Labour and Business Center, 2004, p. 2).
• Adequate and flexible benefits. Flexibility in benefits packages enhances the retention of the company’s employees because this practice creates responsiveness to the specific needs and circumstances of individual employees (Canadian Labour and Business Center, 2004, p. 2).
• Innovative compensation system. This practice motivates membership-oriented behavior, and affects knowledge sharing and transfer, ensuring teamwork and commitment (Canadian Labour and Business Center, 2004, p. 2).
• Recognition and rewards. A diverse range of financial and non-financial, formal and informal incentives are given to staff members for good performance (Canadian Labour and Business Center, 2004, p. 3).
• Training, professional development, and career planning. The company initiates effective internal promotion programs (focused on on-job skills training) that allow even its unskilled and semi-skilled workforce to move towards positions of greater remuneration and responsibility (Baytech, 2012, para. 1).
• Effective recruitment and orientation practices. They are implemented to ensure that newly-hired employee fits not only the required qualification, but also the company’s workplace culture (Canadian Labour and Business Center, 2004, p. 3).
• Wellness initiatives. These practices are aimed to make the workplace company’s environment healthier; the company promotes a healthy lifestyle by making fitness and healthy diet a part of its culture, and pleasant social climate by implementing employee assistance programs (Canadian Labour and Business Center, 2004, p. 3).
• Work-life balance programs. The company provides the staff with shift work setting that leads to a potentially less stressful balance between employees’ obligations at the workplace and their obligations at home (Canadian Labour and Business Center, 2004, p. 3).
• Job design and work teams. In order to make the work more comfortable, challenging, fulfilling, and interesting, the organization implements autonomous or semi-autonomous work teams, and flexible scheduling (Baytech, 2012, para. 1).
• Employee participation and communication. The company maintains open-door communication policies, and keeps the staff regularly up to date on the organization’s financial performance (Canadian Labour and Business Center, 2004, p. 4).
• Performance appraisal practices. Providing the staff with training and career development opportunities, the company ensures good employees’ feedback and their commitment (Canadian Labour and Business Center, 2004, p. 4).
• Cross-training, coaching, mentoring, and tuition overlapped with on-job training. Implementing these knowledge transfer practices, the organization seeks to retain skills, and to build collective knowledge; besides, the use of technology-based tools (databases, intranets, groupware) helps to support knowledge sharing, and ensures successful business performance (Canadian Labour and Business Center, 2004, p. 4).

As one may admit, Baytech’s beneficial HR policy, based on twelve practices stated above, helps to create a special environment that makes tacit knowledge management system effective. Overall, regular investment in training (mainly, basic CNC training) and low employee turnover have become the basis for the company’s tacit knowledge management system. Employee upgrading is a paramount task for Baytech; according to the company’s official data, “the emphasis is on the technicians, maintenance and tool room teams, but increasing skills and upgrading is encouraged right across the board, anything to help employees keep current in their job knowledge and demands” (Baytech, 2012, para. 1). Low employee turnover is achieved with the help of the effective staff retention strategy presented above. This way, Baytech Plastics’ quality and reputation are partly based on its effective tacit knowledge management system and knowledge transfer techniques, in particular.

The key of Baytech’s tacit knowledge management system and knowledge transfer techniques is freedom of communication that serves a supportive instrument in the company’s general HR management. Interpersonal or inter group communication remains central to building and maintaining the company’s credibility, and to avoiding mistrust, “active rumor mill”, and “second-guessing” (Shanghvi, 2012, p. 15). Freedom of communication among the staff members provides the company with positive feedback inseparably connected with the organization’s competitive advantage and business success.

Taking into account the discussed basis of the company’s tacit knowledge management system, one may agree that such system has provided favorable conditions for the creation of such company’s attributes as green initiatives, continuous quality improvement, and advanced product quality planning. The necessity to analyze them thoroughly grows, since the mentioned features are believed to be the key to the company’s success. In the context of Baytech, green (or environmental) initiatives can be defined as effective programs or policies created by the HR department (or board of directors) for reducing the environmental impacts of the company’s operation. Green initiatives are supposed to be implemented by ISO 9000 standards focused on the sustainment and improvement of business organization’s quality management systems. The usage of this group of standards is especially significant for Baytech because it is an industrial company that may pose the sustainability of the environment to threat. Following this standard, the organization helps to preserve its competitive advantage meeting and responding the requirements of today’s industrially polluted environment (Heinelt & Smith, 2003, p. 99).

By integrating the green initiatives according to ISO 9000, Baytech supposes to achieve sustainable solutions; to be more specific, the company’s high quality of products is based on the staff’s compliance with the standards.  Hence, since Baytech follows this standard, its products meet the best quality of manufactured industrial products. The standard serves the umbrella term that supposes the industrial organization like Baytech Plastics to meet the list of quality standards and measurements: “a focus on customers and leadership, improving levels of consistency that can be traceable through a business’s processes, the involvement of people in a business, a systematic management approach, ethos of continuous improvement in the business, fact based decision-making processes, supplier relationships built on a mutually beneficial model” (Your guide to ISO 9002 and more, 2012, para. 5). This way, the incorporation of the mentioned standards within the company makes its business consistent, systematic, and reasonable, and the products – high-quality. Correspondingly, the green initiatives based on ISO 9000 standards include the mentioned quality standards. The following facts present the green initiatives in which the company is enrolled:

• 99% of process generated scrap material’s, is consumed back into product.
• Increasing products made from recycled or reprocessed materials.
• Bio Composite materials are being used in new applications.
• Manufacturing site close to distribution centers reduces our customers’ carbon footprint.
• Reduce energy costs latest technology equipment, for example, use of natural cooling.
• In-house recycling programs (for example, a blue box program).
• Enrolled in Provincial energy saving program.
• Extensive use of re-useable packaging.
• Use of cito valves.
• Low E lighting deployed.
• Electronics recycling program.
• Computerized power management systems (Baytech, 2012, para. 2).

According to the mentioned green incentives, one may agree that being the attribute of Baytech’s tacit knowledge management system, they reflect how the company can mobilize its tacit collective knowledge embodied in the staff’s professional skills, talent, competency, and experience. Naturally, in order to implement the mentioned green incentives, the company has benefited from the multifaceted competencies of professionals in environment and quality management, manufacturing, etc. Besides, working on these initiatives, Baytech’s specialists involved specific knowledge areas including ecology, physics, industry, etc.

The compliance with ISO 9000 standards ensures the best quality of Baytech’s products, but cannot guarantee its real-life presence. For the reason that it is extremely difficult to preserve excellence in a changing and challenging business environment, Baytech needs to be focused on continuous quality improvement (Dew & Nearing, 2004). The organization’s continuous quality improvement actually represents another attribute caused by the effective tacit knowledge management system.

In the context of Baytech, continuous quality improvement reflects the company’s long-term approach to its business. This approach ensures the organization’s success, since it helps the business to survive regardless of all difficulties through positive modification and transformation based on innovations. The manufacturing industrial business is currently under tremendous pressure caused by technological advances of competitors (including Mitchell Plastics, RAMP, Bausch Kft., etc.). Hence, in order to be in advance, Baytech should be focused on innovation and improvement of devices, tools, and equipment that respond to current demands. It means that the organization has to implement continuous quality improvement within its environment in order to become better, and more in-demand than its competitors (Baytech, 2012, para.).

Baytech’s continuous quality improvement exists in the company’s knowledge-based business environment. The cooperation between R & D department, the HR one, and different project teams helps to create a seamless framework where everything is organized and systematized. Clearly distributed responsibilities among talented, experienced, and skillful staff members ensure the success work focused on the continuous quality improvement of the company’s goods. As a result, Baytech’s high-quality products can be seen on the markets (Baytech, 2012, para.).

Continuous quality improvement has its own specificity in this industrial Canadian company. In a general sense, “continuous improvement refers to the process of making many small, incremental improvements on an ongoing basis to how things are done in an organization” (Dyck & Neubert, 2008, p. 210).  In the context of Baytech, these small incremental improvements constitute in the creation of new, modified, and sophisticated models that focus on long-term efficiency and usage under different conditions. Such improved features as water resistance, durability, high-temperature stability, and reliability serve to make the quality of the company’s products better.

Overall, a process of continuous quality improvement would not be realized if the company’s employees did not generate new ideas. Baytech’s experienced managers and experts often rely not only on their creativeness, but also on intuition. Leading project teams, they make decisions based on tacit knowledge gained from their experience, individual insights, “hunches”, and “gut feelings” (Dyck & Neubert, 2008, p. 210). For example, intuitive decision-making has led to such improvement as new plastic components made of refined and strengthened material, and modular assemblies with improved components, for example, tempered glass, rubber seals, metal stampings, electronics, etc. (Baytech, 2012, para. 4). One may admit that continuous quality improvement is a unique attribute of the company that leads to extremely competitive and high-quality products.

Besides, the corresponding company’ members conduct internal audits of the manufacturing systems and processes. This audit serves to ensure the quality of the products that leave the company’s plant, and helps to meet the high standard (in particular, ISO 9001 Registered Quality System). The following techniques are implemented: failure mode effects analysis, kaizen continuous improvement, mistake proofing, electronic information kiosks deployed, automated vision systems deployed, etc. (Baytech, 2012, para. 3). Overall, experienced auditors contribute to Baytech’s continuous quality improvement.

Advanced product quality planning is the third attribute gained with the help of the company’s well-organized tacit knowledge management system. The emphasis on product quality has always been traced in the company because, as the company’s representatives state, “great capabilities and fast turnaround mean nothing if the plastic components or assemblies fail to meet your specifications” (Baytech, 2012, para. 3). In the context of Baytech Plastics, advanced product quality planning presents a special framework (system) of techniques and procedures used to develop new plastic components and assemblies. The main purpose of this product development system is to produce a product quality plan that will support the development of a product supposed to satisfy even the most captious customers (Zhao, Brown, Kramer, & Xu, 2011). As a result, Baytech Plastics involves its experts in advanced product quality planning in order to ensure the quality of the company’s products in the future.

The involvement of the company’s corresponding staff members into advanced product quality planning supposes them to make products meet al requirements of the highest standard of quality. Since advanced product quality planning suggests the employees’ engagement in particular activities (mainly, planning, product design and development, process design and development, product and process validation, and production), specific competence is needed (Zhao, Brown, Kramer, & Xu, 2011). In this context, the company’s workforce training focused on acquiring and upgrading professional skills occupies an essential place. During this training, the organization’s staff members achieve excellence in theoretical and practical knowledge and skills related to advanced product quality planning. This training also involves a re-certification process, tuition reimbursement, and acquisition of a specific educational level in the product development system (Shanghvi, 2012).

Overall, Baytech Plastics is a successful and leading Canadian and global producer of plastic components and assemblies. Effective tacit knowledge management system (based on freedom of communication, workforce retention strategy, low employee turnover, and training) and knowledge transfer techniques (including tuition, cross-training, coaching, and mentoring) are a part of the company’s success and leadership. One may agree that the company’s conductive work environment and the atmosphere of unceasing professional education present its competitive advantage embodied in such attributes as green initiatives, continuous quality improvement, and advanced product quality planning.

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