David Zhang

Nonaka's SECI model provides a clear demonstration of the continual cycle of knowledge creation and conversion within an organisation. However, the knowledge flows and exchanges across the organisational boundary have not been systematically taken into account. In order to address this limitation, this paper develops a revised knowledge creation model that includes such extensions as the acquisition of explicit knowledge through purchasing or collaborative arrangements (knowledge inflows); acquisition of tacit knowledge through interaction between the organisation and its stakeholders and learning-by-hiring (knowledge inflows); deliberate knowledge leakages through selling, licensing-out or spinning-off unused technologies and by-products (knowledge outflows); and unintended knowledge spillovers due to the mobility of skilled workers (knowledge outflows). This extended knowledge creation and conversion model aims to provide today's managers with a clearer picture of opportunities for knowledge creation and sharing within and across organisations based on inter-organisational knowledge flows and open innovation principles.