Organizational knowledge is manifested in the plans, specific resources, individual and group competencies in practice and embodied in the technology. (Liebowitz 1999) Organizational knowledge can be explicit, and then it is reflected in the instruction; can be implicit, and then manifests itself in the routines and stable nature of the actions of members of the organization. Explicit organizational knowledge can be stored centrally and transmitted via information systems; and those decisions that require explicit knowledge should be taken where such knowledge is concentrated. In other words, such decisions should be delegated to individual employees of the organization who possess the required implicit knowledge, or all of the solutions that require this knowledge should be made with the help of experts. In any case, Stonehouse argues that it is necessary to have reason and logical conclusion to be able to extract knowledge from existing information. In order to build new knowledge, the organization must take action to stimulate getting of information and transform it into knowledge. (Stonehouse 1999)
It is important that managers have the knowledge of its business and activities. It is also important that they understand the very nature of this knowledge in order to create an environment in which knowledge is generated, stored, distributed, coordinated and primarily valued as a source of distinctive capabilities and competitive advantage. In order to enhance the overall business performance, it is important that knowledge is used in every sphere of business. The distribution of knowledge is vital to the organization. (Stonehouse 1999)
A unique feature of knowledge is that it is one of the assets of the organization, which increases exponentially when shared. Thus, when sharing knowledge throughout the organization, we increase its property to add value to the product more than proportionately. Managing organizational knowledge aimed at the development of organizational knowledge through the formalization of the content, structure and procedures that promote the creation and sharing of knowledge. (Stonehouse 1999)
The most successful in terms of organizational knowledge organizations Stonehouse (1999) sees as intelligent. Only intelligent organizations are able to develop abilities based on knowledge. Only intelligent organizations are able to learn how to better get knowledge, and understanding the nature of their knowledge, they are able to improve its creation and use. Intelligent organizations do not just want to learn about how to better run their business, and trying to understand the processes of individual and organizational learning.
The famous American professor of management at Stanford University Paul Romer called knowledge the only unlimited resource, which is only increasing when used, and the other a professor of management, Peter Drucker identified knowledge as the basis of competition in the new post-capitalist society