The SECI model describes how organisations create knowledge by converting it back and forth between tacit knowledge (know-how held in people’s heads and hands) and explicit knowledge (written down, codified). Its four modes are Socialization, Externalization, Combination and Internalization. Japanese management scholar Ikujiro Nonaka set out the framework in a 1994 paper in Organization Science, and developed it with Hirotaka Takeuchi in The Knowledge-Creating Company (1995).
Knowledge starts in people. Apprenticeship, shadowing and shared work pass on skills that nobody has written down.
02
Make it explicit
Teams turn that know-how into concepts, checklists, diagrams or metaphors that others can read. Nonaka saw this as the hardest and most valuable step.
03
Combine and spread
Written knowledge is sorted, merged and distributed through documents, databases and training material.
04
Learn by doing
People apply the codified knowledge until it becomes second nature, which starts the next turn of the spiral.
Where you see it today
AI assistants as a socialization shortcut
A study of customer-support agents given a generative AI assistant (Brynjolfsson, Li and Raymond, 2023) found the largest productivity gains among novice and less-skilled workers. The authors suggest the tool spreads the practices of the best agents, a kind of machine-mediated socialization.
Writing it down for agents
Coding teams now keep files such as AGENTS.md, a plain README for AI coding agents with build steps, conventions and rules. It is externalization in its purest form: if the know-how is not written, the agent cannot use it.
Retrieval systems as combination
Enterprise search and retrieval-augmented generation pull scattered documents, tickets and wikis into one answer. That speeds up combination, but it only works on knowledge someone has already made explicit.
Remote work and lost apprenticeship
A study of software engineers at a large firm (Emanuel, Harrington and Pallais, 2023) found that sitting near teammates increased feedback on code, with gains concentrated among junior staff. It is a reminder that socialization still depends partly on proximity.
The four SECI modes in practice
Socialization
ConversionTacit to tacit
Typical tools todayPairing, shadowing, team rituals, in-person time
Externalization
ConversionTacit to explicit
Typical tools todayPlaybooks, post-mortems, prompt and agent instruction files
Combination
ConversionExplicit to explicit
Typical tools todayWikis, data warehouses, retrieval-augmented AI search
Internalization
ConversionExplicit to tacit
Typical tools todaySimulations, practice with feedback, AI tutors and copilots
How to use it
List the decisions in your team that depend on one or two experienced people, and start externalization there.
After each project, record what worked as rules and examples an AI agent could follow, not just a slide summary.
Keep some shared, in-person or live working time for juniors so tacit skills still pass on.
Audit your knowledge base: remove stale documents before you connect it to an AI assistant.
Check internalization by watching people use the new practice, not by counting documents written.
The Business Engineer lens
Models and agents can only use what has been made explicit, so the Externalization step is now a direct input to how much work a firm can automate. The Business Engineer treats captured, structured know-how as part of the operating system that agents run on.
AI tools mostly work on explicit knowledge, so they speed up combination and depend on good externalization; some studies suggest assistants can also spread top performers' practices to newer staff.
The complete explainer, cleaned up and reformatted for mobile.
BUSINESS MODEL
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. 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.
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.
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.
What is 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:
What is 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:
Key Insight
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.
Exec Package + Claude OS Master Skill | Business Engineer Founding Plan
FourWeekMBA x Business Engineer | Updated 2026
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.
Socialization (S)
DescriptionThe process of sharing tacit knowledge through direct interaction and shared experiences among individuals or teams.
Implications– Facilitates tacit knowledge transfer. – Fosters social bonds and trust. – Often occurs through mentoring, apprenticeships, or informal communication.
Key Characteristics– Informal and person-to-person knowledge sharing. – Relies on observation, emulation, and hands-on learning.
Examples– 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.
Applications– 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)
DescriptionThe process of converting tacit knowledge into explicit knowledge that can be documented, articulated, or codified in a structured form.
Implications– Enables the creation of explicit knowledge assets. – Facilitates knowledge dissemination. – Supports problem-solving and innovation.
Key Characteristics– Articulation of tacit knowledge into explicit forms such as documents, manuals, procedures, or diagrams. – Emphasizes external representation of knowledge.
Examples– 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.
Applications– 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)
DescriptionThe process of combining and reconfiguring explicit knowledge from various sources to create new insights, solutions, or innovative approaches.
Implications– Enhances collective knowledge by synthesizing explicit knowledge. – Supports cross-functional collaboration and problem-solving. – Encourages knowledge reuse.
Key Characteristics– Integration of explicit knowledge from multiple sources to generate new knowledge. – Emphasis on structured knowledge exchange and combination.
Examples– 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.
Applications– 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)
DescriptionThe process of acquiring and applying explicit knowledge through individual or collective learning, practice, and experience to make it tacit and deeply ingrained.
Implications– Supports individual or team learning and skill development. – Enables the internalization of explicit knowledge for practical use. – Involves experiential learning.
Key Characteristics– Incorporation of explicit knowledge into individual or collective skills, routines, or practices. – Focus on experiential learning, repetition, and application.
Examples– 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.
Applications– 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
โexplicit knowledge is collected from inside or outside the organization and then combined, edited, or processed to form more complex and system explicit knowledge.โ
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.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
