Into the Black Box: The Knowledge Transformation Cycle

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Abstract

This paper examines how knowledge is integrated in complex technology and product development settings. By framing the task of knowledge integration as a cycle, we highlight the inability of current knowledge transfer theories to explain the consequences that arise from the path-dependent nature of knowledge. We compare the complexity of this knowledge integration task to previous efforts in terms of its novelty and the organizational properties of specialization and dependence that are required. Drawing on evidence from two empirical studies, we outline three stages of the “knowledge transformation cycle,” which addresses the complexity of this integration task. We conclude with the implications of this knowledge transformation cycle on our understanding of knowledge management and organizational learning.