Conclusion

The main elements of Nonaka’s Hypertext organisation design are (1) the three-layered organisation design with which the context in which knowledge is created is adapted to support the type of knowledge creation activities that take place, (2) the combination of top-down and bottom-up management’s knowledge creation characteristics in middle-up-down management, and (3) the knowledge creation spiral that is conceptualised as a sequence of phases in which knowledge shifts from tacit to explicit and back, while gaining in magnitude and momentum with every phase.

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The assumption of a preference is based on the standpoint Nonaka has taken on sequential development (Takeuchi & Nonaka, 1986) and attributing middle-up-down management with the advantage of facilitating knowledge creation in a parallel motion (Nonaka ,1988b).

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The model contributes to knowledge creation theory by noting that knowledge creation can take place in four modes where knowledge assets shift from tacit to explicit and back. These modes can be managed to form a spiral where knowledge assets grow and gain momentum with the passing of every mode. The notion of these conversion modes is novel and since its initial publication (Nonaka, 1991) has had considerable influence on the way knowledge management theory approaches the process of knowledge creation.

The second contribution to knowledge management theory stems from another forbearer (Nonaka, 1988b), in which the knowledge management effects of top-down and bottom-up management are assessed and combined into the hybrid form of middle-up-down management. This new type appoints the middle management as a change agent by positioning it as a central hub where the visions and directions of top management and initiatives of entrepreneurial individuals meet.

Middle-up-down management proposes the use of self-organising teams which operate in a situation of creative chaos to become less path dependent and truly innovative.

The third contribution to knowledge management theory is to be found in the way the model is furnished with knowledge creation enhancing conditions, which include creative chaos, redundancy of information, requisite variety, and love, trust, care and commitment. These conditions are conceptualised to form a set of facilitators which together should support the knowledge creation spiral.

The fourth and final contribution to knowledge management theory is the solution Nonaka (1991) provides to the problem of converting tacit knowledge into explicit knowledge. Through the use of delicate metaphors and analogies, unarticulable knowledge can finally be transferred. It must be noted that this principle is received with scepticism (e.g. Ambrosini & Bowman, 2001; Gourlay, 2006). Ambrosini and Bowman (2001) propose storytelling and cognitive mapping as alternative methods of transferring tacit knowledge.

The model can be implemented in practice by firstly emphasising knowledge scaling through gaining experience with newly created knowledge and rationally reflecting on improving processes and designs. Furthermore, an environment should be created that is conducive to successful knowledge creation. This entails an internal environment with requisite variety, redundancy of information,

creative chaos and high love, trust, care and commitment.

The organisation should be aware of the knowledge requirements they are facing and manage their knowledge creation activities to match these requirements. This means facilitating the sharing of tacit knowledge through the creation of fields of interaction (self-organising teams), the conversion of tacit to explicit knowledge through the promotion of dialogue, the sharing of explicit knowledge by endorsing the documentation of existing knowledge and coordination between team members,

37 and the conversion of explicit to tacit knowledge by allowing experimentation with newly created knowledge. Following the triggering mechanisms for the four modes of knowledge creation forces the organisation to move through the three layers of the Hypertext model. The creation of self- organising teams moves the organisation into the project-system layer, the documentation and storing of knowledge moves the organisation to the knowledge base layer, while the coordination between team members returns the organisation to the business-system layer.

In closing the Hypertext organisation model can be described as a considerably complex and revolutionary organisation design. By letting the company cycle through the design based on the knowledge requirements it faces, the organisation can combine knowledge creation aspects of rigid top-down organisations with those of flexible bottom-up organisations. The model is constructed from building blocks that have separately had great influence on the direction knowledge

management literature has taken in the last twenty years. These building blocks are also the main shortcoming of the Hypertext organisation model, because there is little empirical support for the validity of the constructs and the relationships between them.

The model is currently built on what appear to be shaky foundations. The rationale is sound, and initial empirical testing has proven supportive of the hypothesised relations, but there remain several holes in the conceptualisation. But the nature of the aforementioned theoretical shortcomings does not warrant writing the model off as having low value for knowledge creation. Though the construct validity and the implied causal relations remain to be tested, they all appear to be very plausible. Addressing these theoretical issues will strengthen the model’s position in knowledge management theory, but remains outside of the scope of this study. Alternatively, assessing the model’s value and applicability from a practical standpoint will also contribute to knowledge management theory. The value and applicability of the model for knowledge creation in knowledge intensive companies will be tested in the remainder of this paper.

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