Tacit Knowledge and Strategic Decision Making

Abstract

Tacit knowledge is not easily recognized or acknowledged, but it can be a key factor in enhancing the quality of strategic decisions made by the top management team. A working definition of tacit knowledge is the work-related practical know-how that is acquired through direct experience and instrumental in achieving goals important to the holder. The study provides an integration of the cognitive and strategic literatures to show that tacit knowledge is accessible and how it plays an integral role in the context of strategic decision making. The authors propose that better decisions will occur when tacit knowledge is employed overtly during strategy sessions. Among other methods, the use of guided mental imagery seems to provide the simultaneous benefits of explicating tacit knowledge as well as enhancing the socialization process necessary for its transfer among team members.