What is the SECI model?

The SECI model is a framework that explains how explicit and tacit knowledge is converted into organizational knowledge based on four dimensions: socialization, externalization, combination, and internalization.

SECI Model Element	Description	Implications	Key Characteristics	Examples	Applications
Socialization (S)	The process of sharing tacit knowledge through direct interaction and shared experiences among individuals or teams.	– Facilitates tacit knowledge transfer. – Fosters social bonds and trust. – Often occurs through mentoring, apprenticeships, or informal communication.	– Informal and person-to-person knowledge sharing. – Relies on observation, emulation, and hands-on learning.	– An experienced artisan mentoring an apprentice in traditional craftsmanship. – A seasoned software developer guiding a junior programmer through code reviews and collaborative coding sessions. – A senior executive imparting leadership insights and strategic thinking to a rising manager.	– Knowledge Management: Facilitate the sharing of tacit knowledge within an organization. – Mentoring and Coaching: Promote knowledge transfer through mentorship and coaching relationships. – Team Building: Enhance team collaboration and trust by encouraging shared experiences.
Externalization (E)	The process of converting tacit knowledge into explicit knowledge that can be documented, articulated, or codified in a structured form.	– Enables the creation of explicit knowledge assets. – Facilitates knowledge dissemination. – Supports problem-solving and innovation.	– Articulation of tacit knowledge into explicit forms such as documents, manuals, procedures, or diagrams. – Emphasizes external representation of knowledge.	– A software engineer documenting coding best practices and design patterns in a knowledge base. – A chef writing down secret recipes and techniques in a cookbook. – A scientist publishing research findings in academic papers.	– Knowledge Documentation: Transform tacit knowledge into explicit documents, manuals, or guidelines. – Innovation and Problem-Solving: Encourage teams to externalize tacit knowledge to find creative solutions. – Organizational Learning: Promote a culture of sharing and documenting knowledge for organizational growth.
Combination (C)	The process of combining and reconfiguring explicit knowledge from various sources to create new insights, solutions, or innovative approaches.	– Enhances collective knowledge by synthesizing explicit knowledge. – Supports cross-functional collaboration and problem-solving. – Encourages knowledge reuse.	– Integration of explicit knowledge from multiple sources to generate new knowledge. – Emphasis on structured knowledge exchange and combination.	– A cross-functional team collaboratively developing a new product based on existing knowledge components. – A project manager integrating best practices from different departments to streamline project management processes. – A research team combining data from various sources to identify new trends and insights.	– Cross-Functional Collaboration: Promote knowledge sharing and integration across teams and departments. – Innovation and Knowledge Creation: Encourage teams to combine explicit knowledge to generate new ideas and solutions. – Best Practices Implementation: Use combined knowledge to improve processes and practices.
Internalization (I)	The process of acquiring and applying explicit knowledge through individual or collective learning, practice, and experience to make it tacit and deeply ingrained.	– Supports individual or team learning and skill development. – Enables the internalization of explicit knowledge for practical use. – Involves experiential learning.	– Incorporation of explicit knowledge into individual or collective skills, routines, or practices. – Focus on experiential learning, repetition, and application.	– A project team members applying best practices learned from documentation into their daily work routines. – An employee gaining proficiency in a new software tool by repeatedly using it in real tasks. – A medical student internalizing medical knowledge and skills through hands-on clinical experiences.	– Training and Development: Facilitate the transfer of explicit knowledge into practical skills through training and development programs. – On-the-Job Learning: Encourage employees to apply explicit knowledge in their day-to-day work to internalize it. – Skill Mastery: Promote skill development and proficiency through continuous practice and experience.

Understanding the SECI model

Knowledge is often the key source of competitive advantage in many industries. It creates value for the organization by enabling it to innovate, learn and unlearn, and transfer best practices across boundaries.

With the advent of the information age and knowledge societies, there has been much research into the processes that enable organizations to capture, integrate, share, use, and maintain knowledge to improve performance.

Several management processes have also been put forth to ensure knowledge is made available to all employees irrespective of rank or seniority level.

One of the most popular frameworks in use today is the SECI model.

The model considers knowledge creation to be a dynamic process where the interaction between tacit and explicit knowledge creates new knowledge that spreads across three ontological levels: individual, organizational, and inter-organizational.

Tacit and explicit knowledge in the SECI model

Before we move on to explain the model further, it may first be helpful to explain the difference between tacit and explicit knowledge:

Tacit knowledge

This encapsulates the knowledge, skills, and abilities an individual accrues from personal and professional life experiences.

It is a more intuitive form of knowledge that is rooted in context, values, and practice and is harder to communicate with others since it resides in the mind.

Transferral of tacit knowledge occurs via training, mentoring, and support.

Explicit knowledge

Compared to tacit knowledge, explicit knowledge is easily documented and communicated between people.

In an organizational context, it may take the form of a standard operating procedure, brand style guide, or content library, for example.

Explicit knowledge is information found in documents, books, and databases and can easily be accessed, stored, and verbalized by others.

The interaction between tacit and explicit knowledge

According to SECI model creator Ikujiro Nonaka, there are four modes of knowledge conversion which explain how tacit and explicit knowledge interact:

Socialization (tacit to tacit)

A process of knowledge sharing characterized by observation, imitation, practice, and guidance.

Socialization is direct and occurs via the shared experiences of one person who has the knowledge and one person who does not.

Within a company, socialization can occur when employees interact with customers or in a team brainstorming session.

Externalisation (tacit to explicit)

A more difficult process where tacit knowledge is codified into documents, manuals, or processes that enable the information to be learned by others and shared across the organization.

Once crystallized, it becomes the basis of new knowledge.

Combination (explicit to explicit)

Nonaka described this process as one where

“explicit knowledge is collected from inside or outside the organization and then combined, edited, or processed to form more complex and system explicit knowledge.”

The building of a prototype is a classic example of the combination process.

Internalization (explicit to tacit)

Where knowledge created in the previous process is converted into tacit knowledge by employees.

This knowledge is then used in practical contexts and forms the basis of new routines.

Internalization is also characterized by personal and collective reflection, pattern recognition, and the ability to understand various fields, concepts, and ideas.

Drawbacks of the SECI Model

Cultural and Contextual Limitations:

Cultural Dependency: The SECI model, developed in Japan, may resonate more in cultures with a strong emphasis on group harmony and implicit knowledge sharing. Its applicability in individualistic or low-context cultures might be limited.
Potential Misfit with Organizational Culture: Not all organizations may have the collaborative and open culture that the SECI model requires for effective implementation.

Complexity and Misinterpretation:

Conceptual Complexity: The model’s theoretical nature can be difficult to grasp and apply practically, leading to potential misinterpretation.
Challenges in Tacit Knowledge Conversion: The process of converting tacit knowledge to explicit knowledge is complex and often difficult to achieve effectively.

Resource Intensiveness:

Requires Significant Time and Effort: The processes of socialization, externalization, combination, and internalization are resource-intensive, requiring sustained effort and commitment.
Dependence on Continuous Learning Environment: The model’s success depends heavily on the presence of a continuous learning environment, which can be resource-intensive to maintain.

Potential for Inefficiency:

Risk of Information Overload: The continuous process of knowledge creation and sharing can lead to information overload, making it difficult for employees to discern valuable knowledge.
Possibility of Redundancy: Without proper management, the SECI process can lead to redundant knowledge creation efforts.

When to Use the SECI Model

Suitable Scenarios:

Knowledge-Intensive Organizations: Particularly beneficial in organizations where knowledge is a key resource, such as R&D companies, consultancies, and educational institutions.
Organizational Learning and Development: Useful for developing organizational learning strategies and knowledge management systems.

Strategic Application:

Innovation and Continuous Improvement: In environments where innovation and continuous improvement are crucial.
Cross-Functional Collaboration: To promote and enhance cross-functional collaboration and knowledge sharing.

How to Use the SECI Model

Implementing the Four Modes of Knowledge Conversion:

Socialization (Tacit to Tacit): Facilitate direct sharing of tacit knowledge through shared experiences and observations.
Externalization (Tacit to Explicit): Encourage the articulation of tacit knowledge into explicit concepts through dialogue and reflection.
Combination (Explicit to Explicit): Systematically combine different sets of explicit knowledge to form new knowledge.
Internalization (Explicit to Tacit): Enable the assimilation of explicit knowledge into tacit knowledge through learning and practice.

Best Practices:

Foster a Collaborative Culture: Cultivate an organizational culture that supports knowledge sharing and continuous learning.
Use Diverse Knowledge Sharing Platforms: Leverage various platforms like workshops, meetings, online forums, and documentation for effective knowledge sharing.
Encourage Leadership Involvement: Ensure active involvement and support from leadership to model and promote knowledge sharing behaviors.

What to Expect from Implementing the SECI Model

Enhanced Knowledge Management:

Improved Knowledge Sharing: Facilitates the creation and sharing of both tacit and explicit knowledge within the organization.
Innovation Boost: Can lead to enhanced innovation and creativity through the effective conversion and combination of knowledge.

Organizational Impact:

Culture Shift: May lead to a significant shift in organizational culture towards collaborative learning and knowledge sharing.
Employee Development: Contributes to the personal and professional development of employees through continuous learning and knowledge exchange.

Potential Challenges:

Implementation Hurdles: The initial implementation can be challenging, requiring significant changes in organizational processes and culture.
Maintaining Momentum: Ensuring sustained engagement in knowledge creation and sharing processes over time can be difficult.

Key takeaways

The SECI model is a framework that explains how explicit and tacit knowledge is converted into organizational knowledge.
In more recent years, there has been increased interest in processes that help organizations capture, integrate, share, use, and maintain knowledge to improve performance.
SECI model creator Ikujiro Nonaka developed four knowledge dimensions that explain how tacit and explicit knowledge interact: socialization, externalization, combination, and internalization.

Key Highlights

Understanding the SECI Model:
- The SECI model is a framework that elucidates the process of converting explicit and tacit knowledge into organizational knowledge.
- Knowledge is a pivotal source of competitive advantage, fostering innovation, learning, and cross-boundary best practice sharing.
Knowledge Management in Information Age:
- The information age and knowledge societies have spurred research into managing knowledge for improved performance.
- Various management processes ensure knowledge accessibility regardless of employee rank or seniority.
Ontological Levels in SECI:
- The SECI model operates across three ontological levels: individual, organizational, and inter-organizational.
- The model views knowledge creation as dynamic, arising from the interaction between tacit and explicit knowledge.
Tacit and Explicit Knowledge:
- Tacit Knowledge: Tacit knowledge encompasses experiential skills and abilities from personal and professional life. It’s context-based and challenging to communicate as it resides in the mind. Transfer happens through training, mentoring, and support.
- Explicit Knowledge: Explicit knowledge is easily documented and shared among individuals. It takes the form of documents, guidelines, or databases and can be accessed and stored readily.
Modes of Knowledge Conversion:
- Socialization (Tacit to Tacit): Knowledge sharing through observation, imitation, practice, and guidance. It occurs directly between someone with knowledge and someone without. Team brainstorming and customer interactions can facilitate socialization.
- Externalization (Tacit to Explicit): Codifying tacit knowledge into documents or processes for sharing. This crystallized knowledge forms the basis of new knowledge.
- Combination (Explicit to Explicit): Gathering explicit knowledge and merging, editing, or processing it to form complex and systemic knowledge. Creating a prototype is an example of the combination process.
- Internalization (Explicit to Tacit): Converting previously created knowledge into tacit form, which is used practically and shapes new routines. It involves reflection, pattern recognition, and understanding of various concepts.
Ikujiro Nonaka’s Contributions:
- Ikujiro Nonaka, the creator of the SECI model, identified the four knowledge dimensions that illustrate the interaction between tacit and explicit knowledge.
- Socialization, externalization, combination, and internalization define the conversion process in the SECI model.