Measuring Tacit Knowledge: A Deliberate Construct Validation Using Structural Equation Modelling

Abstract

Tacit knowledge (TK) is an intangible asset of the organisation and forms a major part of organisational knowledge. TK is personal, context-specific knowledge, difficult to formalise, record or articulate and it is stored in the heads of people. TK is part of informal learning components. TK has received growing attention and popularity due to its uniqueness and significant contributions to organisational performance. Despite its crucial role, the effects of TK on employee learning have often been neglected due to the notion of measurement difficulty. As a result, it poses challenges to capture both knowledge and expertise of individuals. This paper presents and discusses the construct validation of TK. Construct validity is a test that measures the intended construct and is particularly important in the social sciences-related disciplines. This paper deliberates how items development for TK is measured and tested for validation. Structural Equation Modelling (SEM) technique was employed for construct validation in terms of convergent and discriminant validities. Pre- and post-validations were also conducted to detect any validation discrepancies using exploratory factor analysis.