A study of knowledge internalization: from the perspective of learning cycle theory

Purpose – In an age of rapid knowledge expansion, external knowledge sources are available in abundance. The purpose of this paper is to focus on the way in which firms can effectively internalize explicit knowledge and direct it into the tacit knowledge of employees, thereby enhancing the organization's competitiveness (knowledge internalization). Design/methodology/approach – An exploratory research is adapted to discuss the issue of knowledge internalization based on learning cycle theory. A theoretical framework is developed which provides an analytical perspective on the knowledge internalization. Findings – The results of this study reveal that an “incomplete learning cycle” is one of the reasons why explicit knowledge could not be successfully converted into tacit knowledge. Hence, when a more complete learning cycle is followed, explicit knowledge is more easily converted into tacit knowledge. Research limitations/implications – This study's results can be considered as a stepping‐stone for future rigorous theoretical and empirical investigations. Originality/value – This paper seeks to develop a framework of knowledge internalization based on learning cycle theory that will serve as reference for both the academic and business communities.