Preface for the Third Edition - Read

122 B. Concepts and Theories
5.2.2.2 Types of knowledge and organizational learning
An organization also faces several strategic decisions concerning what types of
knowledge it should target in its organizational knowledge base and what basic
types of learning it should encourage. The following strategic options have been
suggested in the literature 205 :
Exploitation—exploration. This dimension focuses on the degree to which an
organization needs to increase its knowledge. Exploitation, also called incremental
learning, means to turn knowledge that already exists into new products and services.
Exploitation is supported by the design and installation of techniques and
processes to create, protect, and use known knowledge. Exploration, also called
radical learning, means the development of new knowledge through either creation
or acquisition. Exploration requires the design and creation of environments
and activities to discover and release knowledge that is not known. Radical learning
challenges basic assumptions about the business an organization is engaged in
whereas incremental learning extends and adapts the existing organizational
knowledge base step-by-step.
Internal—external. This dimension describes an organization’s primary source of
knowledge. Internal knowledge is knowledge readily available within the organization,
such as individual knowledge (in the heads of employees), knowledge embedded
in behaviors, procedures, software and equipment as well as codified knowledge
(in documents, data bases and on-line repositories). External knowledge can
be acquired from outside the organization, e.g., publications, universities, government
agencies, professional associations, personal relations, professional services
companies, vendors, knowledge brokers and inter-organizational alliances. Internal
learning aims more at the development of organization-specific core competencies
whereas external learning extends the organizational knowledge base and improves
flexibility.
Slow—fast learning speed. Fast learning is not always advantageous as it can lead
to rash conclusions and to a premature freezing of searches to one single knowledge
thread, whereas slow learning sometimes eases the integration of different
knowledge threads.
Narrow—broad organizational knowledge base. A narrow knowledge base can
lead to core rigidity whereas a broad knowledge base enables the combination of
different knowledge threads and improves flexibility.
Explicit—tacit knowledge. This dimension describes the main type of knowledge
focused 206 .
205. See Bierly/Chakrabarti 1996, 123ff, Earl/Scott 1999, 30ff, Zack 1999b, 135ff, Zahn et
al. 2000, 262ff.