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Debate Cod Vs Tacit
Debate Cod Vs Tacit
The aim of this paper is to shed some light on the complex relationships between codified
and tacit knowledge. This supposes a first step is to distinguish clearly the notion of
knowledge from the notion of information. A model of knowledge as a structure is then
proposed from which an analysis of the content, significance and implications of the tacit
dimension of knowledge can be derived. The paper emphasizes the importance of the
context, the modes of conversion of knowledge and the role of knowing communities when
analysing the relationships between tacit and codified knowledge.
1. Introduction
While the current literature in economics agrees on the large and rapidly
growing importance of knowledge,1 either as an input or as an output of the
economic system, there are strong controversies about the ways to represent
knowledge. An important debate is related to the analytical status of tacit
knowledge.
To be treated as an economic good, knowledge must be put in a form that
1 The belief of the increasing importance of knowledge for society is shared by many authors (e.g.
Dasgupta and David, 1994; Gibbons et al., 1994; Callon and Foray, 1997; Lundvall, 1988). The conviction
of the increasing importance of knowledge is echoed in other related disciplines. For example, Drucker
(1993) argued that knowledge is the only meaningful resource today. For Toffler (1990), the battle for the
control of knowledge (the ultimate replacement of all other resources) and the means of communication
is heating up all over the world. Reich (1991) contends that the only true competitive advantage will reside
among those who are equipped with the knowledge to identify, solve and broker new problems. The
increasing importance of knowledge even modifies how society perceives the historical dimension: Castells
(1998) shows by analyzing the diffusion of the micro-informatics that the invention of the microprocessor
has impacted on the economic context, including the labor conditions and the time scale.
Oxford University Press 2000
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The fact that the tacit/codified and the individual/collective are the two main dimensions that drive
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continually shot into this structure; some of them pass right through
its interstices without effecting any perceptible change in it. Sometimes
messages stick to the structure and become part of it . . . Occasionally,
however, a message which is inconsistent with the basic pattern of the
mental structure, but which is of such nature that it cannot be disbelieved,
hits the structure, which is then forced to undergo a complete reorganization.
Thus, information is fragmented and transitory, whereas knowledge is
structured, coherent and of enduring significance; furthermore, information
is acquired by being told, whereas knowledge can be acquired by thinking.
Any kind of experienceaccidental impression, observation and even inner
experience not induced by stimuli received from the environmentmay
initiate cognitive processes leading to changes in a persons knowledge. Thus
new knowledge can be acquired without new information being received.
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FIGURE 2. The interactive system of formation of knowledge and the different processes at
stake.
knowledge. Knowledge not only results from a one-way cumulative process (from information to knowledge), but requires continuous feedback
loops between the different main components involved (data, knowledge,
wisdom). Each component interacts with the others, and in particular can
inform the others (cf. Figure 2. Inform here means that one component
of the system provides to another a specific meaning and volume of
information (a quantum of novelty, in quantitative but also qualitative
terms). This vision, in line with Bouldings point of view, disconnects the
direct and exclusive relationship stock/fluxbetween knowledge and
information.
2. The second step is to introduce explicitly some cognitive features of the
individual (that is to abandon the rationalistic hypothesis of the separation
between the knower and the known). Consequently, the different components of the process of formation of knowledge must be reconsidered:
Data can be distinguished in terms of stimulus in the case of an
emission of data from nature, and message in the case of an emission
of data from a human emitter. The main difference between these two
kinds of data is the following: Nature does not speak, which means
that the stimuli are not being organized a priori but will be interpreted
and categorized ex post by the cognitive agent. On the contrary, messages
are organized a priori by a cognitive building such as language, categorization or classification, even if they also need a further interpretation by
the cognitive agent.
The second component is constituted by the block knowledge and
representations that results from a specific structuring of data and
messages that depends on the vision of the world of the cognitive entity.
The need here to distinguish knowledge and representations comes
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3. Knowledge as a Structure
What comes out of the previous section is that (i) knowledge is closely
dependent on the cognitive abilities of the actors who hold it and (ii) knowledge cannot be considered separately from the communication processes
through which it is exchanged. A third proposal can be added, and this section
will be devoted to explaining it: knowledge demands knowledge in order to
be acquired and exchanged. This leads us to understanding knowledge as a
structure, which can be broken up into complementary layers.12 A basic
stimulus (I feel heat on my skin) will only be valuable if it goes along with
the knowledge of how to use it (I will put on some light clothes), how to
exchange it (I can tell to others that the sun is shining) and how to manage
it (I should suggest to my friends that we should go to the beach before it
becomes too crowded). The example is simplistic, but is sufficient to raise
the questions we want to focus on: how is knowledge stored and how does
it trigger actions, what part of knowledge has to be codified, and where
will knowledge be diffused? To provide some answers, we propose to consider
12 At this point, in line what was expressed by Machlup, Saviotti (1998) summarized some of the main
features of knowledge: Knowledge establishes generalizations and correlations between variables.
Knowledge is therefore a correlational structure. The extent to such correlation is not infinite. Each piece
of knowledge (e.g. a theory) establishes correlations over some variables and over particular ranges of their
values. As a consequence, knowledge has a local character . . . The degree of such local character can be
measured by the span of a given piece of knowledge, that is, by the number of variables and by the
amplitude of the range over which correlation is provided. General theories will have a greater span than
a very specific piece of applied knowledge . . . Particular pieces of information can be understood only in
the context of a given type of knowledge. New knowledge, for example relative to radical innovation,
creates new information. However, this information can only be understood and used by those who possess
the new knowledge. In other words, knowledge has also a retrieval/interpretative function. In summary,
knowledge is a correlational and a retrieval/interpretative structure, and it has a local character.
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22 This, at least, is the definition offered by Wenger (1998) in his book on learning, meaning and identity
based on a detailed longitudinal study of insurance claims processors. Wenger refers to three dimensions
to define the community: the first is mutual engagement among participants, involving doing things
together, mutual relationships and community maintenance. The second is joint enterprise, involving the
negotiation of diversity among members, the formation of a local code of practice and a regime of mutual
accountability. The third dimension is a shared repertoire that draws on stories, artifacts, discourses,
concepts and historical events, reflecting a common history but still leaving space for ambiguity and new
representations. Thus a community of practicedrawing on the subconscious, interaction, participation
and reified knowledge to act, interpret, innovate and communicateacts as a locally negotiated regime
of competence (Wenger, 1998, p. 137), as shared histories of learning (p. 86).
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23 Wenger identifies three infrastructures which potentially have enough novelty, perturbation and
emergence in them to sustain both incremental and discontinuous learning, and both procedural
adaptation and goal monitoring. One infrastructure is engagement, composed of mutuality (supported by
such routines as joint tasks and interactive spaces), competence (supported by training, encouragement of
initiative and judgement) and continuity (supported by reified memory locked in data, documents and
files, as well as participatory memory unlocked by storytelling and intergeneration encounters). Another
is alignment, composed of convergence (facilitated by common focus, shared values and leadership),
coordination (helped by such devices as standards, information transmission, feedback, division of labour
and deadlines) and arbitration (facilitated by rules, policies and conflict resolution techniques). The third
infrastructure is imagination, composed of orientation (helped by visualization tools, examples,
explanations, codes and organizational charts), reflection (supported by retreats, time off, conversations
and pattern analysis) and exploration (facilitated by scenario building, prototypes, play, simulations and
experimentation).
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6. Conclusion
The above developments suggest different ways to consider the process of
codification of knowledge. The first is to consider the process of codification
within the framework of a pure economics of information for which knowledge does not differ from information. In this perspective economic agents
(or organizations) do not possess cognitive mechanisms, they speak the same
language and all useful economic knowledge is assimilated to knowledgereduced-to information. Only cost considerations prevent residual forms
of tacit knowledge to be codified. Each new piece of codified knowledge
contributes to increasing the stock of useful economic knowledge and
the combinatorial complexity of this knowledge stock. In this process of
transformation where codified knowledge progressively substitutes tacit
knowledge, the focus is on the quality of the telegraphic communication that
governs the replication of knowledge and the ability to examine and assess
different combinations of information.
The second one, the keystone of our reasoning, is that knowledge cannot
be regarded independently from the process through which it is obtained.
In this perspective, economics of knowledge differs from economics of
information in the sense that knowledge is no longer assimilated to the
accumulation of information in a stockpile. This assumption requires
integration in the analysis of, on the one hand, the cognitive capabilities of
the agents and the organizational context in which they are interacting,
and on the other hand, the different types of knowledge that are required in
order to process knowledge. It has led us to suggest splitting up knowledge
into interwoven layers (crude knowledge, and knowledge about how to use,
transmit and manage knowledge). From this model of knowledge formation,
we can reinterpret some salient features of the codification process:
1. The combination and the composition of tacit and codified knowledge
depend strongly on the context and degrees of attention of the agent or
the organization that manipulates knowledge. This means in particular
that there are contexts in which agents will be willing to spend more on
codification than other contexts in which they would not be so interested
in bearing the costs of codification. It means also that, provided that
agents master the modes of conversion of knowledge, there are contexts
in which they would rather use and rely on their tacit knowledge, and
contexts in which they would prefer to use codified knowledge.
2. In this contextual framework, it is clear that all codified knowledge
requires some tacit knowledge to be useful. If this statement implies the
existence of some minimal degree of complementarity between tacit and
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Appendix
As mentioned in the introduction, different typologies of knowledge have
been proposed by economists. Most of them refer to the tacit/codified nature
of knowledge and on the individual/collective dimension. The pluralistic
nature of knowledge leads to numerous definitions that sometimes are in
contradiction, sometimes overlap, with risk of confusion. We have tried below
to present a synthesis of the main typologies (Spender, Blacker, and Lundvall
and Johnson). Of course, such a synthesis is necessarily too schematic, because
of the variety of forms of knowledge that are difficult to encapsulate within a
general typology. We propose to present all the typologies according to
Spenders matrix (1996) (Figure 4), which is built precisely upon this
distinction tacit/codified versus individual/collective. Spenders matrix depicts
four types of organizational knowledge (objectified, collective, conscious and
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