**5.1 SECI model**

The well-known SECI spiral of conversion Model, (acronym for socialization, externalization, combination, and internalization) was introduced by Nonaka and Takeuchi [19]. It describes how organizations create and utilize knowledge. The SECI Model includes: two forms of knowledge (tacit knowledge and explicit knowledge); a cycle in spiral of conversion of knowledge; three levels of social aggregation (individual, group, organization).

Let us describe the four modes of the spiral of conversion.

1.From tacit knowledge to tacit knowledge, it is *the socialization mode* where the tacit knowledge of some (especially that of the master) is transmitted directly to others (especially to the apprentice) in the form of tacit knowledge, through observation, imitation, and practice. During this process, none of the protagonists explains his art to make it directly accessible to all. This knowledge cannot therefore be exploited at the collective level of the company.

**Figure 2.** *SECI model and concept of* Ba*.*


For Ikujiro Nonaka and Hirotaka Takeuchi, explicit knowledge can be easily expressed in documents but is less likely to lead to a major innovation than tacit knowledge, that is, knowledge acquired through experience and difficult to express, that are at the source of the innovation process.

### **5.2 Japanese concept of** *Ba*

To describe the concept of *Ba*, we will express our own understanding by paraphrasing Nonaka and Konno [20]: *Ba* is a shared space for emerging relationships and interactions between knowledge stakeholders. This space can be physical (e.g., office, dispersed business space), virtual (e.g., e-mail, teleconference), mental (e.g., shared experience and, ideas), or any combination of them. It can be a network of persons who share common objectives; a place would allow achieving the synthesis of the rationality and of the intuition as a wellspring of new knowledge; a place where would take place a shared knowledge creation; a

*Knowledge-Based Management: the Creative Power of Tacit Knowledge in the "Age of New… DOI: http://dx.doi.org/10.5772/intechopen.101947*

platform that would allow individual and collective knowledge to progress. So, participating in a *Ba* stimulates the involvement of an individual, a group, an organization by giving them the possibility to transcend the borders and the limits of their own perspectives (p.40). Later on, Nonaka, Toyama, and Konno modified the name of the different type of *Ba* ([21], pp. 16–17). Hereafter, we briefly describe the four types of *Ba*.


### **5.3 Single-loop learning and double-loop learning**

In their theory of organizational learning, Argyris and Schön [22] distinguish two organizational models characterized by guiding values, strategies for action, and the consequences they induce. They define two learning loops: single-loop learning and double-loop learning. These models are described below.

The Single-Loop Learning model leads to a "single loop" limited learning organizational system. In this system, the guiding values that define the rules of conduct are as follows: to achieve the objective set, which presupposes unilateral control of the situation; to maximize gains and minimize losses, to eliminate negative feelings, adopt what is considered rational conduct. This strategy is characteristic of reasoning that implements defensive routines. In this type of organization, when a gap is perceived between the results of the actions undertaken and the objectives set, the only possible answer is to consider a new action without questioning the logic underlying, that is, without changing policy choices and guiding values.

The double-loop learning refers to the ability to question and, if necessary, modify guiding values. In this system, the guiding values that define the rules of conduct are as follows: making informed choices; having valid information; monitoring implementation to identify and correct errors. The individual must be able not only to solve routine problems (simple loop learning), but also to act effectively when confronted with embarrassing or even threatening situations. The resulting constructive reasoning leads the individual to follow an action strategy, which leads him to defend his positions, to make assessments, and to issue attributions by systematically seeking to illustrate his remarks, to compare his reasoning, and to test the validity of his assessments and assignments. These new action strategies have the effect of reducing defensive routines at all levels, interrupting self-fulfilling and self-justifying processes as well as cascading errors. The organization then becomes a system in which dual-loop learning can take place in a sustainable way.

According to Argyris and Schön, in order for an organization to become capable of learning in a "double loop," it is first necessary for actors to become aware of the gap between the strategy they are planning and the strategy they are actually implementing. They must then acquire a new set of guiding values: having valid information, making informed choices, and monitoring their implementation to identify and correct errors.
