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Introduction
The article entitled The use of tacit knowledge within innovative companies: knowledge
management in innovative enterprises published as part of journal of knowledge
management Vol. 12 N0. 1 in 2008 by Ragna Seidler-de Alwis and Evi Hartman. The purpose
of this article is to examine the use of tacit knowledge within innovative organization. It
emphasis on tacit knowledge can be source of huge range of opportunities and potential that
constitute discovery and creativity.
The objective of this article is to examine how tacit knowledge transfer affect the
companys innovation capability. It stated that all the tacit knowledge is not possible to transfer.
It describe very interesting fact that explicit knowledge is everywhere, everyone can use it
whenever they want but tacit knowledge is so special so it is source of competitive advantage.
Tacit knowledge creates new knowledge. Furthermore authors describe use of tacit knowledge
within company, it focuses on the transfer of tacit knowledge, and gives insights on the barriers
of successful knowledge transfer and also explores the success factor that can help to secure and
improve the transfer of tacit knowledge which lead to innovation.
It generalize how individual idea, tacit knowledge contribute towards innovation.
Innovation is a process of making small, big change in product, process or in service that add
value to the customer. Innovation increase the productivity. Tacit knowledge is critical to the key
organizational task of creating new knowledge, generating new product service development and
improving process that leading to the innovation.. Authors emphasis on important of sharing
tacit knowledge within organization. It increase learning of individual and increased perception
of tacit knowledge.
Article analysis:
This article is a review on tacit knowledge implication in innovation and it is based on
different literature review. The authors analyze the importance of tacit knowledge and raise a
discussion question how can it happen? Knowledge as a key resources of competitive advantage
but which knowledge is most important for an organization and how knowledge should create
that makes innovation happen. Innovation is key form of knowledge creation but to be an
innovation we need huge amount of knowledge. How can we generate knowledge? In that
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context Nonaka et als (2000) described knowledge as dynamic and it creates through social
interaction. The information that generate through individual experience while linked with
context it becomes knowledge. Knowledge may be created through internally or externally
sources. Davenport and marchand suggest that knowledge management has two distinctive task
to facilitate the creation of new knowledge and to manage the way people share and apply it.
Knowledge creation is not just important how to use these knowledge is more important for an
innovation.
Knowledge is first created in individual minds. There should mean proper
communication media to transfer these tacit knowledge into explicit knowledge. Polyani discuss
tacit knowledge as we know more that we can tell. Each person has unique knowledge inside
the mind that also unknown to the individual. As we said that it is contextual and depend upon
certain circumstance. Once these tacit knowledge is unlocked then it becomes source of creative
contribution in the organization. Tacit knowledge has two dimension the first is the technical
dimension, know how, describe by circumstances, and other is cognitive dimension which
consist beliefs, ideas and beliefs that individual hold. This article emphasis that every employee
in organization should involve in knowledge creation and participation approach need to
implement in the organization. Each employee should maximize their contribution in knowledge
creation. Nonaka stated knowledge created through spiral process and these tacit knowledge
transfer into explicit form as:

Fig 1: The SECI process
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There is dynamic interaction between tacit and explicit knowledge and authors argue that
tacit components of innovation can only evolve through learning by doing. Brainstorming and
mind mind mapping helps individual to be creative. These creative thinking leads to innovation.
Tacit dimension of collective bargaining cannot easily imitated and its existence will know when
it finally implemented and result in the improved process. Learning by doing and learning to
learn helps to improve the existence system and also help further future development.
Innovation can view as transfer of knowledge. Innovation as a combination of invention
and exploration. The invention that is not accepted by the public is not an innovation .To be stay
in the market manger need to upgrade their knowledge and must generate and apply those
knowledge to gain competitive advantage. Tacit knowledge have very significant impact on
innovation the authors give an example of ceramics industry and high technology company. The
tacit knowledge helps to develop new model of business.
This article included that motivational is needed to employee to make use their tacit
knowledge for innovation .Companies should ensure that their organization encourages product
development and administrative innovation. Authors discusses what management role in creation
of knowledge is? There should be climate of openness and trust amongst organization members
is the basic condition that allows tacit knowledge to be created, shared and used in the innovation
process Valuable human and knowledge resources will be wasted unless management openly
accepts and supports efforts to gather, sort, transform, record and share knowledge. It is the role
of managers to encourage and support the creation and exchange of tacit knowledge.







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Conclusion:
Tacit knowledge is a source of competitive advantage. Tacit knowledge can be gained
both in and outside the organization. It is also clear that tacit knowledge is gained and vitalized
throughout all functions and stages of a companys operations. Management should promote and
support the creation, sharing and use of knowledge among employees. The more relevant tacit
knowledge is involved in the different phases of the innovation process, the more effective and
efficient innovation management is carried out which leads to an increase in innovation success.
Making decisions within an innovation process rely heavily on tacit knowledge know-how.
This article is based on literature review and discuss in broadly way. There is no any
example that authors describe the outcomes because of using the tacit knowledge, there is no any
empirical analysis that support tacit knowledge brings innovation. The article is generalized form
in which author emphasis tacit knowledge implication. It doesnt provide any formalized method
how can we use tacit knowledge in innovation process. As innovation process consist multiple
number of stage and each stage tacit knowledge is useful but the article doesnt generalize this
fact. Also this article doesnt provide information about what happens if the tacit knowledge is
not good? What will be probable result? Whether it still support innovation or not? The
refinement process of tacit knowledge is not considered in this article. This article provide
importance of tacit knowledge and focus individual and group knowledge without supporting
explicit form of knowledge that company holds
Knowledge management is very specific. Each industry can accept the knowledge in vary
ways. It synthesis the importance of tacit knowledge but it doesnt describe general guidelines
that we need to use for innovation. This article provides review from various literatures about
tacit knowledge and innovation, describe importance of tacit knowledge, spiral model of tacit
knowledge, management involvement importance, barriers to innovation and some success factor
to innovation. This article lack of empirical evidence. The authors can do empirical research on
the use of tacit knowledge in the innovation process in specific industries. There are still so many
undiscovered tacit knowledge, that authors can use various research to make more practical
approach of using tacit knowledge for innovation.