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To manage intangible assets such as knowledge is perceived as an important capability for competition. One of the main matters for managing knowledge resources is diffusion of knowledge within organizations. Knowledge management needs different forms according to the possibility to code knowledge. Internal individual processes like experience and talent obtain tacit knowledge that is difficult to code. Therefore it cannot be managed and shared as explicit knowledge. To rely on personal tacit knowledge is risky. Conversion of tacit knowledge to explicit or at least ability to share it offers greater value to an organization. But what are the difficulties related to sharing tacit knowledge? Different difficulties are to be found related to perception, language, time, value and distance.

This paper focuses on the problem of knowledge that is difficult to share because it cannot be articulated: intractably tacit knowledge. It offers knowledge sharing between relatives or friends, a nepotistic practice, as a potential solution.

Analysis of a US Supreme Court decision in favor of a nepotistic hiring practice provides insights into how such a nepotistic approach can facilitate the sharing of intractably tacit knowledge. The paper builds on this analysis to articulate the conditions under which nepotistic selection can be useful to managers.

The US Supreme Court decided in favor of a nepotistic hiring practice based on its potential effectiveness in selecting and developing river pilots. Such a nepotistic approach is problematic, but it can be valuable in a very specific and narrow application, i.e., when organizations need to transfer intractably tacit knowledge. A nepotistic approach should thus be employed only if the benefit of sharing intractably tacit knowledge exceed the cost of nepotism. Organizations should enhance the benefit by ensuring effective knowledge transfer and reduce the cost by mitigating the discrimination and inequity that nepotism enhances.

While much has been written on tacit knowledge, the portion of tacit knowledge that cannot be articulated has been ignored in some studies and neglected in others. Managers responsible for the sharing of such knowledge need guidance. This paper explores an unusual solution: nepotistic selection.

The organizational behavior and knowledge management literature has devoted a lot attention on how structural knowledge processes enhance learning. There has been little emphasis on the informal knowledge processes and the construct remains undefined. The purpose of this paper is to highlight the importance of informal knowledge processes, propose a definition for these processes and link them to the socialization and internalization processes suggested by Nonaka and Takeuchi in the SECI model. The paper offers a fresh perspective on how informal knowledge processes in organizations help to enhance the organization’s learning capability. It will enable scholars and managers to have a better understanding of how informal knowledge processes promote tacit knowledge.

Purpose –– The purpose of this chapter is to test the managerial decision-making knowledge of Mexican administrators managing maquiladora plants, or ‘twin plants’, in the effort to devise a practical skill set assessment.

Design/methodology/approach –– A sample of Mexican maquiladora managers was studied along dimensions of gender, experience, proximity to parent firm and upward mobility in order to assess the managers' level of ‘managerial intelligence’, where the constructs of tacit knowledge and intuition were used as proxies for managerial intelligence.

Findings –– While managerial decision-making may be classified as special forms of knowledge, assessment of this knowledge as forms of tacit ‘knowing’ did not prove successful.

Research limitations/implications –– Due to limitations of time and money in conjunction with the characteristically low response rate on surveys in Mexico, the sample was rather limited given the number and size of ‘twin plants’ and not wholly random. Thus, future research will need to address these shortcomings.

Originality/value –– This chapter is an effort to fill a gap in the literature regarding measures of tacit knowledge and the effort to elucidate the operation and management of plants in Mexico's maquiladora industry.

China has climbed from 22nd in the Global Innovation Index Rankings in 2017 to 11th in the 2022 due to the transition of its manufacturing firms from assemblers to system integrators. This paper examines how firms can enhance their innovation capability through inbound and outbound open innovation.

This paper applies both open innovation and a knowledge-based view and proposes a conceptual framework that encompasses innovation capability and the significance of tacit knowledge acquisition. A questionnaire was designed to collect relevant data from 139 Chinese manufacturing firms in six regions to test this framework.

The authors found that inbound open innovation has a stronger impact than outbound open innovation on synergistic innovation capability. The acquisition of skill-based tacit knowledge has a slightly stronger intermediary role between open innovation (no matter inbound or outbound) and synergistic innovation capability than cognitive tacit knowledge does.

Firms should improve external tacit knowledge acquisition efforts to generate new knowledge, inspire the innovation passion of employees and implement ambidextrous open innovation.

This paper makes a good first step to analyze the effect of ambidextrous open innovation on the synergistic innovation capability of Chinese manufacturing firms. It verifies the role of skill-based and cognitive tacit knowledge acquisition and provides new reflections on open innovation strategy in emerging economies, thus enriching open innovation and knowledge-based theories.