This study aims to identify the key factors for advancing DX in sheet metal processing manufacturing sites by clarifying how skilled technicians generate and transform practical knowledge, which is critical to DX implementation within small and medium-sized manufacturers. To examine the generation and transformation of practical knowledge on-site, an emergent business field research approach is employed alongside internal observation at a manufacturing site with the company president. To analyze the field data obtained through internal observation, we conducted a thorough review of previous research on knowledge concepts and reconstructed the conceptual frameworks for analysis. First, we organized the concept of knowledge into verbalization and embodiment and further refined practical knowledge by categorizing it into nine quadrants. Next, we developed the “expanded model of perception and recognition” as the conceptual framework. As a result of the analysis and consideration of field data, we were able to demonstrate the possibility of verbalizing the generation and transformation of practical knowledge from an academic perspective. Furthermore, we identified the four key factors for DX promotion in sheet metal processing manufacturing site as follows: (1) Verbalization of practical knowledge (developing the verbalization skills of skilled technicians), (2) Embodiment of embodied (tacit) knowledge (training the embodiment abilities of unskilled technicians), (3) Verbalization and embodiment of on-site sense (cultivating the on-site sense that generates new practical knowledge), and (4) Learning, reflection, and verbalization by company presidents (developing skilled presidents).
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