Understand Tacit Knowledge in One Article

What is Tacit Knowledge?

Tacit knowledge, also known as implicit knowledge, is a type of knowledge that is difficult to formalize and personal, usually based on experience, intuition, and perception. Unlike explicit knowledge, tacit knowledge is difficult to convey through words, data, or formulas. It is often deeply embedded in an individual’s behavior, skills, or culture, and relies on practice and personal experience to acquire.

For example, learning to ride a bicycle is a typical example of tacit knowledge. Although you can describe in words how to hold the handlebars, keep your balance, and pedal, these instructions cannot really convey how to keep your balance during actual riding. Only through repeated practice will you “understand” how to ride freely at a certain moment. Similarly, the skills of a craftsman and the handling of complex interpersonal relationships require long-term practice to master, rather than relying solely on written knowledge.

Explicit knowledge vs. Tacit knowledge

Explicit knowledge is knowledge that can be clearly expressed, such as scientific formulas, program manuals, etc., which are easily conveyed through words, data, etc. On the other hand, implicit knowledge is often the “iceberg hidden under the water”, which is the part that is difficult to express in words or text. For example, how a person judges the right time to communicate with others, this intuition is often difficult to summarize as explicit knowledge.

Public knowledge and private knowledge: another dimension of implicit knowledge

The distinction between explicit knowledge and implicit knowledge is mainly based on whether knowledge can be clearly expressed and transmitted. However, scholars further distinguish knowledge into public knowledge and private knowledge, which is a more detailed classification based on the sharing scope and accessibility of knowledge. This distinction helps us better understand the mobility of knowledge in society, organizations or individuals.

Public knowledge

Public knowledge refers to knowledge that can be widely obtained and used, usually through public publications, the Internet, literature, patents, legal documents, etc. This kind of knowledge is visible and available to most people, usually without any restrictions.

• Explicit public knowledge: This kind of knowledge has been formalized, easy to spread and widely recognized. For example, textbooks, patents, laws and regulations, scientific papers, public industry standards, etc. are all explicit public knowledge.

  Example: Newton’s laws of mechanics in physics are explicit public knowledge because they can be found in textbooks and everyone can learn them.

• Implicit public knowledge: This type of knowledge is implicit but can be spread through specific social or learning occasions. For example, experience sharing or unwritten conventions in the industry can be acquired through participation in certain circles.

  Example: The working methods or culture within a certain industry, although not clearly defined, can be passed on through interactions in actual work. Although this knowledge is implicit, it may be well known within the industry.

Private knowledge

Private knowledge is knowledge held by an individual or a few people, which is usually difficult to spread or cannot be easily disclosed for various reasons (such as business secrets or personal privacy). This type of knowledge often involves personal unique experience, technical know-how, intuition, etc., and is usually kept in the individual’s mind or in a restrictive environment within the organization.

• Explicit private knowledge: This knowledge is explicit but is limited to individuals or small groups. It can be recorded, but it is usually not disclosed to the outside world, perhaps because of company secrets, proprietary technology or personal privacy.

  Example: A company’s R&D plan or strategic documents, although documented, can only be circulated within the company due to confidentiality measures and cannot be obtained by the outside world.

• Implicit private knowledge: This type of knowledge is typical implicit knowledge, usually rooted in personal experience, technology or intuition, difficult to express through language or written form, and only belongs to an individual or a few people.

  Example: The operating skills of a skilled craftsman, although he can perform flawlessly, are difficult to teach to others through words, and only he can fully master them.

Cross-cutting knowledge classification

By combining explicit/tacit with public/private knowledge, we can understand the different levels and nature of knowledge in more detail:

Value and limitations of various knowledge

When evaluating the value of public explicit knowledge, private explicit knowledge, public tacit knowledge, and private tacit knowledge, the value can usually be ranked in the following order:

1. Private tacit knowledge Highest value, because this knowledge is proprietary, difficult to replicate, and usually involves deep experience and skills accumulated by individuals or organizations. The competitive advantage it brings is more lasting, especially in professional fields.

   Limitations: Private tacit knowledge is difficult to transfer and share, which means it can only be spread within individuals or a small range and is difficult to scale. In addition, this knowledge may be lost as the holders leave (such as retirement or resignation).

2. Private explicit knowledge This kind of knowledge is also of high value because it is explicit but still private and is usually only spread within a limited circle, such as internal corporate documents, proprietary technology, or patent-protected innovations. It is highly protective and can be regulated and applied.

   Limitations: Although explicit knowledge is easier to transfer, its proprietary value will decrease once it is made public or leaked. Therefore, companies need to protect this knowledge through legal means (such as intellectual property rights).

3. Public tacit knowledge This type of knowledge is relatively valuable because, although it is implicit, it can still be shared through a certain socialization process, usually transmitted in the form of practice, interaction, or experience, such as a common craft or interpersonal interaction skills in an industry.

   Limitations: Since the transmission of tacit knowledge requires interaction and practice, it cannot be popularized on a large scale and requires time and practice accumulation to master, so the speed of dissemination is slow.

4. Public explicit knowledge The lowest value, because this type of knowledge is open to everyone and can be easily obtained (such as textbooks, public patents, academic papers). Due to its popularity, its competitive value in the market is low.

   Limitations: Public explicit knowledge lacks uniqueness due to its universality and is difficult to provide competitive advantages. In addition, the decontextualization of knowledge may not fully meet specific needs in practical applications, and it needs to be combined with practical experience and context to be effectively applied.

Four ways to transform tacit knowledge: SECI model

SECI model is a knowledge management theory model proposed by Japanese scholars Ikujiro Nonaka and Hirotaka Takeuchi in 1995, which aims to explain how new knowledge is created in organizations through the dynamic transformation process of knowledge. SECI represents four modes of knowledge conversion, namely: Socialization, Externalization, Combination, Internalization. These processes describe the mutual transformation between implicit knowledge and explicit knowledge.

1. Socialization – From implicit knowledge to explicit knowledge Socialization is the process of transferring implicit knowledge through interaction or observation. For example, in a master-apprentice relationship, the apprentice acquires skills by observing the actual operation of the master, similar to the knowledge acquired through practice and shared experience. This process is usually not dependent on language, but is achieved through joint action and sharing of experience.

   Example: New employees gradually master some operational skills that are difficult to describe in writing by working with old employees and observing how they solve problems.

2. Externalization – From implicit knowledge to explicit knowledge Externalization is the process of converting implicit knowledge into explicit knowledge, usually through discussion, analogy, model and other means to formalize the experience, intuition or skills that are difficult for individuals to express into documents or theories. This is a key step in knowledge creation, because implicit knowledge can only be more widely disseminated after it becomes explicit knowledge.

   Example: An experienced technician passes on his years of implicit experience to other members of the team by writing technical documents or tutorials.

3. Combination – From explicit knowledge to explicit knowledge Combination is the process of organizing and recombining different explicit knowledge to create new explicit knowledge. Through the integration and analysis of information, a new knowledge framework is established and disseminated through reports, databases, etc.

   Example: An organization collects research results from different departments, summarizes them and forms a new strategic plan or product development plan.

4. Internalization – From explicit knowledge to implicit knowledge Internalization is to transform explicit knowledge into individual implicit knowledge by learning and practicing it. This step is similar to “experiential learning”, that is, individuals form their own understanding and experience through the practice of explicit knowledge, which becomes potential implicit knowledge.

   Example: Employees learn the organization’s training manuals and apply what they have learned in actual work, eventually forming their own operating methods and skills.

Dynamic cycle of SECI model

The key to the SECI model is that knowledge is dynamic and cyclical, and different types of knowledge can be continuously converted in different situations. In an organization, this conversion process can promote knowledge creation and innovation. When implicit knowledge is passed on to others through socialization and externalized into explicit knowledge, and explicit knowledge is further absorbed through combination and internalization, new implicit and explicit knowledge can be generated.

This knowledge conversion is the core of organizational knowledge management, especially in innovative enterprises, by effectively utilizing employees' implicit knowledge and converting it into explicit knowledge, it can bring continuous innovation and competitive advantages to the company. The SECI model can be visualized as a spiraling knowledge creation process, and the continuous conversion from implicit knowledge to explicit knowledge promotes the accumulation and development of knowledge.

Hidden knowledge in different industries

In different industries, public explicit knowledge, private explicit knowledge, public implicit knowledge, and private implicit knowledge may be manifested in different forms:

1. Technology industry

• Public explicit knowledge:

  • Public patents, technical standards (such as programming language specifications) or academic papers in the field of technology. This knowledge can be obtained through public channels and can be freely disseminated throughout the industry.
  • Example: scientific papers published by IEEE.

• Private explicit knowledge:

  • The company’s proprietary technical documents or code base, internal technical design documents. These contents are often company secrets, can only be circulated within the company, and have high commercial value.
  • Example: core technical code or product design solutions within Apple or Google.

• Public implicit knowledge:

  • Operational habits, engineering experience, and best practices of technicians. For example, debugging skills when developing software or experience in managing complex systems are often acquired through practice and word of mouth, and are difficult to pass on in writing.
  • Example: troubleshooting skills and code optimization experience accumulated by senior developers in projects.

• Private tacit knowledge:

  • Employees' personal experience, such as a senior technical expert’s deep understanding of system architecture or a team’s special workflow. This knowledge is difficult to make explicit and is often the expert’s unique skill.
  • Example: How an experienced architect weighs the selection criteria of various architectural solutions.

2. Medical industry

• Public explicit knowledge:

  • Medical textbooks, public clinical guidelines, drug development literature, and public health standards. These can be obtained through professional journals or public resources for doctors and researchers to refer to.
  • Example: JAMA, a medical journal published by the American Medical Association (AMA).

• Private explicit knowledge:

  • Diagnosis and treatment process documents, case libraries, proprietary medical technologies and diagnostic methods within the hospital. This knowledge is shared within the hospital, but is usually not made public.
  • Example: A surgical equipment operating manual independently developed by a hospital.

• Public tacit knowledge:

  • The judgment and operating skills accumulated by doctors through years of clinical experience. This knowledge usually needs to be acquired through long-term internships, observations, and participation in surgeries.
  • Example: Experienced surgeons’ incision handling skills or disease judgment experience.

• Private implicit knowledge:

  • A doctor’s personal diagnostic intuition and keen perception of changes in the patient’s condition are individual abilities formed through long-term experience accumulation and are usually not taught through standard training.
  • Example: A doctor’s ability to quickly make a diagnosis under complex conditions.

3. Manufacturing

• Public explicit knowledge:

  • Public knowledge such as industry standards, ISO certification guidelines, and mechanical operation manuals in the manufacturing industry. Companies can use these standards and guidelines to design products and operating procedures.
  • Example: ISO 9001 quality management system standards.

• Private explicit knowledge:

  • The company’s unique production process and proprietary product manufacturing technology. This knowledge will be kept strictly confidential and only technical personnel and management within the company have the right to use it.
  • Example: A car manufacturer’s unique engine manufacturing process.

• Public implicit knowledge:

  • Equipment operation experience accumulated by factory operators on the production line, such as skills in debugging equipment and solving mechanical problems. This knowledge is accumulated through long-term observation and operation and is difficult to express in words.
  • Example: The implicit operation experience of workers debugging a certain equipment to optimize production efficiency.

• Private implicit knowledge:

  • Hand feel and process experience of senior workers or technical experts, such as how to adjust tools or equipment in a key process to ensure product quality. This kind of experience is often accumulated by individuals over many years and is difficult to pass on easily.
  • Example: The fine grinding technology mastered by an old craftsman.

4. Financial industry

• Public explicit knowledge:

  • Public reports on financial markets, economic theories and basic knowledge of financial products. These can be obtained through public financial reports, news or courses.
  • Example: Financial market analysis reports released by the banking industry.

• Private explicit knowledge:

  • Investment strategies, risk control models and customer data within the company. This information is strictly confidential within the company and is used to formulate efficient investment plans.
  • Example: A quantitative trading algorithm unique to an investment company.

• Public implicit knowledge:

  • The market sense and trend judgment formed by financial analysts through years of experience accumulation. Although it is difficult to describe with specific data, these experiences are very important.

  • Example: The ability of senior analysts to judge market bubbles.

• Private implicit knowledge:

  • The personal intuition and decision-making experience of investment managers, such as how to take decisive measures to avoid risks in financial crises. This kind of knowledge is often difficult to make explicit or teach.
  • Example: A fund manager made a large investment decision based on intuition during the investment process.

5. Education industry

• Public explicit knowledge:

  • Open teaching resources such as textbooks, syllabi, and research papers, which can be obtained by anyone through publications, online courses, etc.
  • Example: Public teaching textbooks and teaching standards for primary and secondary schools.

• Private explicit knowledge:

  • The school’s teaching methods, curriculum design plans, etc., which are usually internal resources of the school and can only be accessed by teachers of the school.
  • Example: A private school’s unique syllabus.

• Public implicit knowledge:

  • Classroom management skills and teaching methods accumulated by teachers during the teaching process, which are acquired through daily teaching interactions and are difficult to be directly transmitted through training.

  • Example: How an experienced teacher handles unexpected events in the classroom.

• Private implicit knowledge:

  • Teachers' personal Educational intuition and adaptability, how to teach students in accordance with their aptitude, adjust teaching strategies, and help students maximize their learning effects. These are often the result of an individual’s many years of teaching experience.

  • Example: How an excellent teacher discovers students' potential and guides them.

6. Marketing industry

• Public explicit knowledge:

  • Publicly available knowledge that is easy to share and disseminate, usually Market analysis, Consumer behavior data and other information.

  • Example:

    • Market research report: For example, the global consumer trend report released by Nielsen, public data can help marketers understand market demand and consumer behavior.
    • Marketing tool tutorials: tutorials like Google Ads and social media advertising platform usage guides are public and easy to access and learn.
    • Academic research: public digital marketing-related academic papers that explore topics such as consumer behavior and advertising effectiveness.

• Private explicit knowledge:

  • Explicit knowledge that is proprietary to the company, which is systematically organized but kept confidential to the outside world and has high commercial value.
  • Examples:
    • Marketing strategy plan of a company: a company’s exclusive advertising strategy or brand marketing plan, which details the target audience, advertising copy, and delivery channels of the advertisement.
    • Customer database: detailed customer data and consumer behavior analysis reports within the company. Although some consumer data is public, detailed user behavior data is often proprietary to the company.
    • A/B test data: test results of specific marketing activities carried out within the company, such as conversion rate analysis of different advertising copy and design, which are internal knowledge of the company and cannot be easily obtained from the outside.

• Public implicit knowledge:

  • Implicit knowledge that can be obtained in the community or public domain, although accumulated through practice.
  • Examples:
    • Industry trend insights: Practitioners who have been engaged in the marketing industry for a long time have a grasp of market trends, such as how to evaluate market opportunities and adjust advertising content. Although it is difficult to systematize, it can be disseminated through industry exchanges and conferences.
    • Best practices in marketing operations: For example, operational experience gained in advertising bidding or social media marketing. Many experts share their experience and insights in conferences, forums or blogs to help other marketing practitioners improve their skills.

• Private tacit knowledge:

  • Knowledge deeply rooted in personal experience is difficult to disseminate through formal channels and usually relies on personal practice and intuition.
  • Examples:
    • The unique creative thinking of advertising creatives: The intuition and perception of a creative director in advertising creativity, such as how to design an advertisement that resonates, is difficult to describe in writing.
    • Intuition in brand positioning: The perception of brand positioning by senior marketers, how to accurately grasp the brand tone, market sentiment and potential psychological reactions of consumers.
    • Subtle perception in customer relationship management: How marketers adjust communication strategies or sales methods based on subtle feedback from customers when dealing with customers. This knowledge relies on long-term accumulated perception and experience.