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The purpose of the paper is to present a vocabulary of terms that clearly define knowledge management (KM) activities in order to move towards consensus in the adoption of a common language within the field.

Existing literature across several disciplines has been integrated to provide a clear description of the sorts of activities an individual undertakes in order to move from knowledge acquisition to innovation, and a clarification of the terms used to describe such activities is put forth.

Adoption of a common vocabulary to describe KM activities provides a platform to better understand how best to manage these activities, and enables clearer identification of the knowledge management capabilities held by various sectors within the broader business community.

There is a need to undertake empirical research and in‐depth case studies of knowledge management practices using a common vocabulary as a framework with which to interpret findings.

The adoption of a common frame of reference to describe knowledge management activities will deepen understanding of current KM practices, enable identification inhibitors and facilitators of KM, lead to increased dialogue between academia and industry, and present opportunities to the education sector to incorporate such a vocabulary into its curriculum.

The framework presented here will remove the veil of mystery that currently clouds knowledge management and facilitate broader uptake of KM practices, thereby realising the benefits of a knowledge‐based economy in the broader business community.

While it is widely acknowledged that economic growth is now dependent on the realization of a knowledge based economy, there remains much confusion as to how this is actualized. Effective management of knowledge is endorsed as an essential element for organizational survival and competitive advantage, yet again, the ways in which knowledge moves through knowledge networks remains poorly understood. This paper is the result of a three‐year qualitative investigation of the dynamic relationships among knowledge creation, diffusion, and utilization occurring in situ in a collaborative knowledge network. In an attempt to better understand how knowledge unfolds in such a system, this paper explores emergent patterns, not only within individual, group, organizational and inter‐organizational levels of learning, but also among them. Two theoretical models acknowledging the multi‐level complexity of knowledge management in organizations while simultaneously identifying the common influences among them, are presented. In combination, it is then possible develop a theoretical framework through which to better understand the relationships among knowledge creation, diffusion, and utilization in collaborative knowledge networks, and thereby, optimize the utility of knowledge designed for organizational application.