**2.2 Tacit knowledge**

It is relevant at this point to emphasize on the contributions of great authors like [21], when discussing the concept of knowledge management. According to [21], as humans we can know more than we can reveal. Put in another way, an individual has the potential to know much more then they can narrate or describe to others. These phases of [21] meant to describe tacit knowledge, which he identifies as almost impossible to document, interpret and encode. On the other hand, the rules and directions associated with executing it may not be known to the one possessing it. For example an experienced architect may be unaware of the some of the unique attributes a competent engineer and the individual may find it difficult to explain in detail what his main capabilities are. That goes to explain the tacitness of the knowledge we can possess. A different approach to define tacit knowledge is that, it is a kind of individualized talent or attributes. Titi Amayah [22], suggests that tacit knowledge is only discovered when certain conditions are met, since it is deeply buried in the mind. According to Sobel [23], it has cognitive dimension programed in the mind. These cognitive dimensions consist of mental models which only manifest under peculiar circumstances. Other opinions agree that, because these are embedded attributes and can go unnoticed, they are often disregarded and overlooked. Fu et al. [24], opined that tacit knowledge may be neutral due to the degree of emboddedness. These conditions describe tacit knowledge in a way that the knower may find it inexpressible. Recent scholars describe tacit knowledge as fully applied, descriptive and experimental. When one attempts to differentiate between a resource in the form of input and the process of utilizing the resource which is capability, it is more appropriate to avoid the generic term "resource"

which incorporates both terms, but instead refer to capability, in the context of tacit knowledge. This is similar to Cardy and Selvarajan [25], who opined that technical knowhow is preferably used interchangeably with tacit knowledge. This assertions implies that tacit knowledge is partly constituted of technical skill with informal components difficult to account for or quantify. Above all, Martinsons et al. [26] tacit knowledge is occasional or manifest in peculiar situations and it is typically and conventionally acquired on the job through long period of application or apprenticeship. Therefore, tacit knowledge is inherently tied to activities and people.

### **2.3 Importance of tacit knowledge in an organization**

Resource- based viewpoint examines the relationship between a firm's performance and the value and characteristics of internal resources. This relationship is examined for the sake of measuring a firm's competitive advantage according to Hedlund [17]. This approach indicates that every entity can be regarded as a pool of resources which are valuable, inimitable, and rare and without substitutes and that the resources are the main source of competitive advantage for the organization. The resource based view rather emphasizes more on the attributes of tacit knowledge which can be a source of sustainable competitive advantage. The value of tacit knowledge makes it irreplaceable, imprecisely transferrable and imitable because it is ingrained in the knower or the entity. It is also implicit, taken for granted and almost impossible to replicate by competitors. In Sanchez and Mahoney [27] opinion tacit knowledge is somehow shared between specific relationships or members of a group; such as colleagues of the same rank and people in the same department, it difficult for other firms to imitate. Additionally, tacit knowledge cannot be conveyed accurately or completely in a whole, like a mathematical formula or a computer language from person to person. On the other hand, this level of tacitness may not be in the known to the organization because tacitness also breeds insecurity Dalkir [5], under certain conditions an organization may overlook or undermine some of the precise actions and processes that contribute to their competitive advantage. Willem and Buelens [28], defines tacit knowledge as what is commonly termed skilled. But in a more elaborated way, it is defined it as sub element of knowhow with the opinion that a recipe is similar tacit knowledge [29]. Alternatively, tacit knowledge is referred to as procedural knowledge, undocumented informal knowledge which is a critical success factor of an entity. At the back of this argument, the term "knowledge" is instantly associated with "Scientific" and "Objectivity" This also creates a lot of anxiety and complexity of understanding the concept of tacit knowledge and by implication, knowledge is linked to tacit and tacit indicate subjectivity. Knowledge-based view of an organization require diverse and unique resources that should be hard to imitate or transferred and should be sustained longer [30]. Preserving knowledge based resources and assets may guarantee long term sustainability even in a hostile industry. Nonetheless, knowledge is termed as a belief which contributes to an organizations effective capability to execute certain positive actions. In this regard, tacit knowledge is a significant strategic asset capable of inspiring the future of an entity [31]. In any context, knowledge classified into tacit and explicit, where tacit is gained through long term practical experience and actions. As tacit knowledge is specific and pragmatic it is only absorbed, used without awareness and that makes it impossible to explain to others. This way, tacit knowledge is only shared in an interactive conversation through common experience. Old and current literature refer to tacit knowledge as personal intuition, talent and practical intelligence [32]. Despite the argument that tacit knowledge is most valuable and expensive, explicit knowledge is required to

### *Importance of Organizational Tacit Knowledge: Barriers to Knowledge Sharing DOI: http://dx.doi.org/10.5772/intechopen.101997*

complement tacit knowledge. For example when tacit knowledge is identified, it the duty of the knowledge manager to ensure that it is transferred to those who require it through formal means such as documented information systems or in the form of communicated processes [33]. There, within an organization there are two ways identified tacit knowledge can be utilized through explicit knowledge; through organizational policies and set of laid down principles or by means of systemic procedures which are practiced on daily basis. According to Farzin, Kahreh, Hesan, and Khalouei [34] explicit knowledge is an island surrounded by tacit knowledge in an organizational setting. Tacit knowledge is required for the generation of explicit knowledge, its execution and retention such as the selection of a suitable software application, database and sequencing of operations to execute, and also for the analysis of results.

Furthermore, Pucik [35] stated that explicit, formal, or procedural knowledge may be viewed as a tool for both structure of experience and communicative involvement. Organizational tacit knowledge can be described as those unique qualities and strategies certain individuals possess which have repeatedly reproduced a pattern of positive results due the experience.When tacit knowledge is described as articulated it serves a unique purpose such as new knowledge creation and the motivation to promote internal capacity such as individual skill to meet the demand of present and future requirements [29]. In the context of strategic management protecting organizational tacit knowledge is a strategic mechanism for overcoming rivals.This level of competence enables an organization deploy the best internal capability to attain its objectives. Competence is the most appropriate term when referring to knowledge in the context of business since it incorporates various classes of qualities including; individual skills, talent, experience, value judgment and internal social networks. This is because individual competence may not be exactly duplicated, rather it is acquired through practical experience and application and it is difficult to imitate when buried in complex managerial policies and frequent procedures. In some exceptional cases business rivals may engage in comparable experience to acquire equal tacit knowledge, in long term [36]. One more significance of tacit knowledge is that, it is useful in conflict situations and hostile rivalry, competitors are unable to develop appropriate substitutes to control price and cost of resources. Finally, in the views of [37] the most important organizational resource for sustainable and renewable competiveness in tacit knowledge.
