**5. Tacit knowledge: the invisible asset**

Krogh [81] argues that TKS is the main vector when firms want to raise their own value. He highlights the (invisible) transit of experiences and practices of members in the organization that can leverage knowledge creation, increase TKS, and, as result, provide a higher organizational value.

Bierly et al. [36] argue that the wisdom of each employee can be transformed into an organizational wisdom through knowledge sharing, and what Eraut [82] defines as a type of learning.

The essence of tacit knowledge is its sharing and not its control [83]. Any unilateral displacement from tacit knowledge, when only one party is benefited, is not characterized by an interactive action among people [84], and it does not constitute tacit knowledge transfer, which requires intense interpersonal contact [51]. When interviewing a contributor to the Sematech Company about sharing ideas, Davenport and Prusak [51] registered the comment: "We have documents, databases, intranet, web, groupware, whatever you can think of. But representatives and face to face meetings that we have are by far the most important transfer channels."

Taylor [48] in his book *Principles of Scientific Management*, although seeking a rational, precise, formal, and mathematical model, the best way, also stated the importance of ferreting out the most efficient knowledge, tacit [85], which was found lodged in craftsmen in order to transmit it to engineers, the current scientists and managers of knowledge. This flow has increased over the past decades [86] and positively affected the development of business innovation [87].

Understanding the nature of knowledge as being more tacit than explicit, as well as representing multidirectional and intangible inter-relations, can serve as a source of advantage for the organization, in the transfer, for example, of best practices and lessons learned [37, 83, 84, 88].

Transmission occurs most effectively when set amidst informal and unscheduled conversations, or through structured meetings and actions that enable the free movement of knowledge [67]. In "an economy governed by knowledge, to chat is to work" [51].

Vieira [89] contextualizes one of those moments when he quotes an experience seen as successful by the civil servants of Justice in the city of Casca.6 "Regular meetings: breakfast held in the dependencies of the Forum, with all civil servants and the Judge, followed by a meeting with a predefined agenda and open to suggestions from staff throughout the group, in order to have functional issues addressed (…) First they all enjoy a delicious breakfast with casual conversations and then the meeting is held. In these meetings solutions to improve judicial services are addressed" [89].

Regarding the public, Carvalho et al. [67] highlight that sharing may lead to a delay of organizational deterioration and an improvement in performance. Caution, however, must be taken in order that this phenomenon is not held down by bureaucratic assumptions of management or personal presumption to understand knowledge as individual property [27].

Van Caenegem [19] when dealing with a possible 'regulation' for sharing through a migration of people between companies, he draws attention to the fact that the socialization of knowledge is less of a normative protocol of relationship and more of a free act between people who have valuable knowledge and desire to share it. Leading organizations often encourage the use of tacit knowledge of their workforce [54], considering crucial its transfer within the organization [65].

Tacit knowledge is like an intangible mental product, susceptible to sharing and in constant reformulation, comprised of abstract elements (ideas, reasonings, know-how, skills, allegories, models, constructs, insights, experiences, memories, sounds, images, smell, taste, touch,

Considering the existence of this "available" asset, one must also note the importance of its sharing, given that this dynamic has its own peculiarities, such as that tacit knowledge is best shared through conversation [60], has a more noticeable fluidity in informal settings [61], and,

Krogh [81] argues that TKS is the main vector when firms want to raise their own value. He highlights the (invisible) transit of experiences and practices of members in the organization

etc.) capable of generating new knowledge and innovative practices.

**Table 2** below summarizes key concepts from this section and cited authors.

in some organizations, its flow is neglected [79, 80].

10 Knowledge Management Strategies and Applications

**Key points relating to TK References** Ability [44]

Cognitive process [45, 49, 62, 64]

Informality, imateriality, intangibility [55, 61, 72] Innovation [74] Interaction [71] Organizational performance [56, 75–78] Personal nature [57–59] Practical activity, know-how [50, 62, 69, 70]

Experience, ideas, emotions, beliefs [51, 53, 56, 62, 65, 66]

Competitive advantage [73]

Process of learning [2] Process relating [47] Product of itself [46]

Sharing [33, 60, 79, 80] Solution of problems [56, 63] Spiral spinning [8] Topic in agenda of firms [54] Transferring [48] Utility [67]

**Table 2.** Summary table of the literature and key points relating to tacit knowledge (TK).

**5. Tacit knowledge: the invisible asset**

<sup>6</sup> A town in the state of Rio Grande do Sul in Brazil.

Although little studied and understood in the Brazilian judiciary, TKS can increase the chances of diffusion of knowledge [90], especially where, "in general, there is no dialogue or exchange of experiences" [91]. Taal et al. [92], however, when examining the phenomenon in the European judiciary, notes that many judges declared that sharing is not a new activity and meetings, seminars, symposiums, and learning events provide the environment conducive to sharing. This phenomenon thus encourages the formulation of policies contrary to the permanence of outdated or dysfunctional routines.

The observation of the existence of a prior knowledge (good practices and lessons learned), for example, can prevent the occurrence of errors of repetition [93], as state judge reported: "In fact, we learn from situations as they arise, we have no strategy (…) errors may occur and occur frequently, hence the difficulty of getting it right from errors" [94]. Even from the perspective of administrative modernization, the transferability of knowledge and management practices gain in sharing a relevant factor and an increasingly intensified practice [95].

The importance of knowledge sharing by tacit means ("face to face" interactions) was reaffirmed by Stefanovitz [96] when dealing with innovation in product development processes. Von Hippel [97] reported that rapid transfers of knowledge actually increase a company's ability to benefit from its own know-how.

From the literature, aspects related to not sharing are also present. Amabile [98] argues that the immobility or inertia of tacit knowledge may be related to lack of motivation of the holder to share. Szulanski [99] analyzed, from the organization's level, its inability to create an atmosphere for TKS; and from the personal level, the lack of interest in the receiver and his/her low absorption capacity, as well as relationship problems with the transmitter. The author perceived an association between these aspects and a possible loss of a firm's ability to build competitive advantage. In communities of practice some causes were identified: fear of misuse; the possibility for personal attacks, and little objectivity concerning the shared knowledge [100].

When dealing with successful companies, Choo [101] pointed out that organizations that have demonstrated ability to adapt to constant change, innovate continuously, and to make decisions that lead toward their goals demonstrate ability to handle knowledge. He noted that an organization with a properly harnessed knowledge has a differentiated ability from others to perceive, discern, and act smart. Thus, the performance of an organization in the era of knowledge is associated with a continuous learning process, generating a model where creativity, innovation, and sharing of tacit knowledge are integrated and reveal themselves in the form of experience.

The United Nations (UN) in recognizing the importance of sharing, points out in its study on innovation in governance the importance of governments working together and better, and so, "knowledge sharing is the first step" [102]. Knowledge sharing can modify the installed mental baggage [103], allows for the creation of new knowledge [104], boosting the organization in its ability to innovate [105], and even grants a greater market value for the organization [106].

With impetus, sharing of tacit knowledge enables the formation of new ideas and knowledge, food for innovation [13]; this sharing being essential to the organization's intelligence [107]. As the whirlwind holds dust immobilizing it, the sharing phenomenon brings stimuli to the knowledge flow. Examples of this dynamic are: the conversation that transfers knowledge [51], the spiral structure [8], and "interpreting communities" [108], which provide new channels, spaces, and organizational arrangements to knowledge.

Although little studied and understood in the Brazilian judiciary, TKS can increase the chances of diffusion of knowledge [90], especially where, "in general, there is no dialogue or exchange of experiences" [91]. Taal et al. [92], however, when examining the phenomenon in the European judiciary, notes that many judges declared that sharing is not a new activity and meetings, seminars, symposiums, and learning events provide the environment conducive to sharing. This phenomenon thus encourages the formulation of policies contrary to the perma-

The observation of the existence of a prior knowledge (good practices and lessons learned), for example, can prevent the occurrence of errors of repetition [93], as state judge reported: "In fact, we learn from situations as they arise, we have no strategy (…) errors may occur and occur frequently, hence the difficulty of getting it right from errors" [94]. Even from the perspective of administrative modernization, the transferability of knowledge and management

The importance of knowledge sharing by tacit means ("face to face" interactions) was reaffirmed by Stefanovitz [96] when dealing with innovation in product development processes. Von Hippel [97] reported that rapid transfers of knowledge actually increase a company's

From the literature, aspects related to not sharing are also present. Amabile [98] argues that the immobility or inertia of tacit knowledge may be related to lack of motivation of the holder to share. Szulanski [99] analyzed, from the organization's level, its inability to create an atmosphere for TKS; and from the personal level, the lack of interest in the receiver and his/her low absorption capacity, as well as relationship problems with the transmitter. The author perceived an association between these aspects and a possible loss of a firm's ability to build competitive advantage. In communities of practice some causes were identified: fear of misuse; the possibility for personal attacks, and little objectivity concerning the shared knowledge [100]. When dealing with successful companies, Choo [101] pointed out that organizations that have demonstrated ability to adapt to constant change, innovate continuously, and to make decisions that lead toward their goals demonstrate ability to handle knowledge. He noted that an organization with a properly harnessed knowledge has a differentiated ability from others to perceive, discern, and act smart. Thus, the performance of an organization in the era of knowledge is associated with a continuous learning process, generating a model where creativity, innovation, and sharing of tacit knowledge are integrated and reveal themselves in the form

The United Nations (UN) in recognizing the importance of sharing, points out in its study on innovation in governance the importance of governments working together and better, and so, "knowledge sharing is the first step" [102]. Knowledge sharing can modify the installed mental baggage [103], allows for the creation of new knowledge [104], boosting the organization in its ability to innovate [105], and even grants a greater market value for the organization

With impetus, sharing of tacit knowledge enables the formation of new ideas and knowledge, food for innovation [13]; this sharing being essential to the organization's intelligence [107].

practices gain in sharing a relevant factor and an increasingly intensified practice [95].

nence of outdated or dysfunctional routines.

12 Knowledge Management Strategies and Applications

ability to benefit from its own know-how.

of experience.

[106].

The sharing terminology encompasses other words such as transfer, distribution, communication, collaboration, diffusion, dissemination, allocation, network, cooperation [109], passing [106], interaction, exchange, and socializing. Because it is a growing challenge for most organizations [18] and because it provides for an opportunity of interpretations [35], there is a growing interest in studying the sharing process, even under the warning of being difficult to transfer [88].

Itami [110] addressing knowledge and the ability to pass it as an invisible organizational asset, points out that, although they are very important ingredients for the development of a successful strategy, they are difficult to measure. Christensen [111] denotes that there are few references in the literature and few companies that include sharing as a key component to increase organizational performance, due to the difficulty of measuring this phenomenon.

Since, it involves intangibles internalized in beliefs, experiences, and personal values, Inkpen [3] stated that the formalization of tacit knowledge becomes complex in certain contexts and difficult to share. Ruschel [90], while researching the Labor Court, found that, although precious, tacit assets were restricted only to the minds of the judges.

The results from the research on knowledge management in public administration [112] follow in the same direction when evaluating the intangible assets (intellectual property assets), and although available in the institutional environment, they are difficult to be qualified and measured. Alvarenga Neto [12] endorses such views, stressing that for being innate to human beings, one cannot share tacit knowledge with ease and spontaneity, however, it is suggested in his conclusion the "urgency to create a set of indicators for measuring the benefits of knowledge management." Likewise, Sveiby [68] supports the considerations of Alvarenga Neto [12]. Noting that a focused strategy on knowledge can be quantified if an organization seeks something beyond measuring monetary flows, but also flows related to intangible assets such as knowledge.

Longanezi et al. [113] presented some nonnumeric indicators based on idea generation: brainstorming sessions, specific training, number of submitted ideas, and the identification of best practices. Another tool that according to the authors encompasses a continuous measuring process is benchmarking. Regarding this topic, however, they pointed out a limitation that restricts its use, "the unwillingness of leaders to share real relevant indicators" [113].

The TKS concept proposed in this chapter is an interpersonal exchange phenomenon describable and measurable. Represents the interaction of tacit knowledge flows established between people. Can occur within organizations or among them, requires a social environment of trust, and promotes the incorporation of new content with multilateral gains of aggregating nature [114].

The following **Table 3** shows some key points concerning TKS and their respective references.


**Table 3.** Summary table of the literature and key points relating to tacit knowledge sharing (TKS).
