Micro-Foundation of Knowledge Creation Theory: Development of a Conceptual Framework Theory

Knowledge, unlike commodities, is touted to grant sustainable competitive advantage by its tacitness, inimitability, and immobility. Yet, knowledge creation theory took off on a wrong footing, on the typological conversion model, and on the assumption that organization is a living organism. We posit that conversion of one knowledge typology to another cannot and should not be the basis of knowledge creation theory. Moreover, the organismic assumption of an organization misleads scholars into assuming the organization as the locus of knowledge creation. Thus, there is a need for a paradigm shift if knowledge management (KM) field will succeed. In light of this, the psycho-cognitive perspective (PCP) on knowledge creation (KC) is presented to provide micro-level foundations on personalized KC. The PCP is based on thinking processes that builds and utilizes a triad relationship (of the brain, mind, and action) to invoke thinking activities (primary and secondary thinking processes) in the two hemispheres of our brain for synthesizing knowledge. Humans are always enmeshed in activities that enable them to make a profiting impact. While some activities draw on the intellective skill of reading, observing, and watching, others are rooted in mechanistic actions like repairing of breakdown cars, kneading the dough, and archery. Through focal attention, the former yield explicit knowledge, and the latter tacit knowledge. However, at the subconscious level, both produce opposite knowledge typologies, tacit and explicit, respectively.