Improving performance through tacit knowledge externalisation and utilisation

Purpose - The study seeks to examine the transformation of tacit knowledge (TK) into business performance by developing a two‐stage framework involving two processes: TK utilization and externalization. Design/methodology/approach - Owing to the limited understanding and interest expressed by hotel professionals through a preliminary telephone survey, a mail survey targeting a representative sample of solely four‐ and five‐star hotels was conducted. Still, a small number of responses were gathered, and so additional telephone interviews were also conducted with two hotel managers for gathering more qualitative information. Findings - Findings revealed an increased unfamiliarity of hotels with TK, which in turn eliminated their activities for externalizing and utilizing TK and enhancing business performance. TK externalization was reported as critically important to be first achieved, as TK utilization builds and uses the potential TK stocks that are created through TK externalization. Respondents also mainly used outcome‐oriented metrics for assessing TK externalization processes, ignoring process‐oriented metrics evaluating the effective implementation of TK processes. Research limitations/implications - Despite the small number of responses, findings imply an increased urgency to raise industry‐wide awareness regarding the strategic role and importance of TK for improving business performance. However, enabling TK externalization processes are deemed as an essential first step, before establishing infrastructures and providing organizational incentives for motivating TK utilization. Originality/value - Most studies focus on examining TK's characteristics and its utilization in different business processes, while fewer studies explore TK transformation into enhanced business performance. This study sheds light on such issues by proposing a two‐stage framework showing how to both manage and measure performance of TK utilization and externalization processes for enhancing business performance.