Explicit or Implicit Knowledge

Dyer and Hatch (2004) stated that knowledge is two types, explicit and implicit. The explicit knowledge can be recorded and shared easily without losing its value during the transfer (Dyer & Hatch, 2004). An example of the explicit knowledge would be the market’s facts and figures that make most of the general information shared by any trade. The implicit knowledge is the pragmatic and complex knowledge that results from experience or experimental learning (Dyer & Hatch, 2004). Implicit knowledge is the hidden and most people do not know that they have it in them. An example of the implicit knowledge would be the required know-how to change and organization culture. The culture change would be done mostly by unfelt skills and knowledge. Implicit knowledge is difficult to imitate and considered as a competitive advantage for the organization over its rivals. Implicit knowledge is thought to be the base for innovative products and processes. One of Dells implicit knowledge examples is the technology that mixes mass customization; just-in-time and customer focus in one strategy and executes it flawlessly (Magretta, 1998).

References:

Dyer, J., & Hatch, N. (2004). Using supplier networks to learn faster. MIT Sloan Management Review, 45(3), 57-63.

Magretta, J. (1998). The power of virtual integration: An interview with dell computer’s Michael Dell. Harvard Business Review, 76(2), 72-84.