Leading Organizational Learning

a deal with a major client in another country. One can read about
the values and norms of that country, but the usefulness of written
descriptions is limited. Understanding how a country’s values and
norms shape day-to-day business operations is virtually impossible
without face-to-face conversations with experienced colleagues
who have firsthand knowledge. The importance of cultural knowl-
edge pervades business activities. In the pharmaceutical industry,
for example, a company’s ability to acquire tacit cultural knowledge
about the Food and Drug Administration may result in superior
drug applications, reduced time for review and approval, and an
earlier product launch. Considering that a blockbuster drug may
generate annual sales of billions of dollars, each day is critical in a
highly competitive market.

Myth 3 Versus Reality 3

Myth 3:Employees will freely seek out and share knowledge if they

understand it is expected and if they are rewarded for it.

Reality 3:Financial rewards and recognition may motivate some

employees to seek out and share knowledge, but incentives do not

eliminate the subtle (and not so subtle) social barriers that often

frustrate innovation and the introduction of new ideas.

Whether tacit or explicit, knowledge creation and knowledge
sharing almost always involve some direct communication and
interaction between people who have expertise and people who
wish to use the expertise. Thus knowledge-based activities must
ultimately recognize and overcome a variety of social barriers. We
have already alluded to one social barrier that blocks knowledge
sharing: the finger-pointing blame game that often follows failure.
Fear of losing power is another social barrier to knowledge sharing.
Clearly, knowledge is power in today’s knowledge economy; so
sharing knowledge means sharing power or perhaps even losing
power. In a turbulent and uncertain job market, tacit knowledge is

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