The importance of effective externalization within the SECI model for organizational development: analysis based on game theory

Economic & mathematical methods and models

In the era of knowledge economy, knowledge is gradually replacing land, labor and capital as the main resource of economic development, the source of innovation, and the foundation for forming the major competitiveness of organizations. Organizational knowledge can be divided into explicit knowledge and tacit knowledge. Explicit knowledge can be stored and transmitted through information and network technology, while tacit knowledge must rely on the interaction between people and the organization to achieve the results of transmission, sharing and effective conversion. The effective management of tacit knowledge has an important influence on sustainable development of the organization. The main goal of this article is to improve the efficiency of sharing and conversion of tacit knowledge within the organization. In the research on tacit knowledge management, the SECI model of tacit knowledge conversion proposed by Nonaka is designed to convert tacit and explicit knowledge into each other through the process of socialization, externalization, combination and internalization. This cyclical conversion has formed a spiraling process of knowledge innovation, which provides a model and theoretical basis for the effective management and utilization of tacit knowledge. Through the SECI model we can find that in the process of externalization, the members of the organization and the organization itself convert tacit knowledge into explicit knowledge. In this process, the overall major competitiveness of the organization has been enhanced, but for the members of the organization as the subject of tacit knowledge, it may mean the loss of their core value. From the economic perspective, these mutual relations essentially reflect the conflict between the interests of individuals and organizational interests. Therefore, a mathematical model can be created from the perspective of game theory to study the problem concerning knowledge conversion within the organization, which is aimed at the prisoner’s dilemma, as well as to design the incentive mechanism of tacit knowledge conversion within the organization for the purpose of changing the strategic equilibrium and realizing the effective management of tacit knowledge in the organization.