Abstract
This paper presents a theoretical framework of knowledge management for NPOs on the basis of Nonaka’s theory of “organizational knowledge creation.” Knowledge creation by an NPO is a process in which the mission and its relevant knowledge to realize that mission are created by the articulation of common desires of its members and accepted by society through the implementation of the mission. NPOs should: (1) utilize the knowledge of “ordinary people,” experts, and stakeholders; (2) create open “ba” to create, share, and utilize that knowledge; (3)adequately articulate their missions; (4) accumulate expertise and acquire knowledge from outside the NPO itself through social networks; and (5) have leaders who have ‘know-who’ networks as social capital and negotiation/persuasion skills. An eight-step Knowledge Management program is proposed for NPOs that want to incorporate knowledge management in their management practice.