In knowledge based economy, knowledge productivity is critical in obtaining economic success, therefore, achieving competitive advantage will base on knowledge production, access and use. The success of an organization depends on its ability to capitalize knowledge; knowledge established itself as a factor with decisive role in economic progress. This paper aims to highlight the impact of tacit knowledge and knowledge transfer on achieving organizational performance and competitive advantage in knowledge based society. Use or consumption of a knowledge quantity does not mean lower stock or knowledge base, but rather is enhancing the amount of acquired knowledge, means new solutions, theories and applications, because knowledge represents an intangible asset that increases its value as it is used. Knowledge has always been extremely important, as evidenced even in history, those who used knowledge as a strategic resource obtained victory, which demonstrates its unrivalled potential. Tacit knowledge is an attractive concept that people intuitively understand; this paper will clarify in which aspect of tacit knowledge we should focus. The quality of decision making depends on the knowledge creation, transformation, integration and knowledge sharing among individuals and organizational groups, therefore tacit knowledge and knowledge sharing are important for any modern, knowledge based organization.
