Linking the knowledge creation process to organizational theories

Abstract

PurposeThe author aims to provide a macro (organization‐environment) view for knowledge creation (KC), a study traditionally considered to be a micro (individual‐organization) management issue.Design/methodology/approachLiterature review and literature integration are the main approaches used in this paper. Instead of providing a critique, the author reviews recent KC process studies and integrates them into a “process heuristic,” in which different phases of KC activity are embedded. The author then discusses how each phase of KC interacts with the change of an organization's external environment (the integration of change theories and the KC process heuristic).FindingsThe author found that an organization needs the function and balance of three different momenta – imitation, rationality, and inertia – to proceed with KC when confronted with pressure from external environments. Knowledge feedback, prompted by the synergy of these momenta, ensures the fitness of an organization and its environment. However, knowledge feedback falls short if organizations fail to process ambiguous information in a turbulent environment.Research limitations/implicationsThe author provides five propositions based on the literature review. One may need more qualitative or quantitative evidence to test these propositions.Practical implicationsIn addition to the traditional micro view, managers can diagnose their KC problems from a macro view.Originality/valueThis paper is the first one to address the importance of environment‐organization fitness in terms of KC studies.