This paper proposes a theory of organizational knowledge creation, whi
ch is defined as the process that organizationally amplifies the knowl
edge created by individuals and crystallizes it as part of the knowled
ge system of an organization. The process is a never-ending spiral of
tacit and explicit knowledge through four modes of knowledge conversio
n: i.e., socialization (from tacit to tacit), externalization (from ta
cit to explicit), combination (from explicit to explicit), and interna
lization (from explicit to tacit). Each of the four modes of knowledge
conversion is explained, using actual vignettes. Finally, a few impli
cations are argued.