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Tacit Knowledge Transfer at Engineering Consulting Organization in the USA
Funminiyi S. Egbedoyin, Folfun International Inc., Canton, Michigan, USA,
niyiegbedoyin@yahoo.com
Edward P. Agbai , Smart Alliance Consulting Services Ltd, Saskatoon, Saskatchewan, Canada
edward.agbai@smartalliance.ng
Abstract
Engineering consulting organizations are knowledge-intensive firms characterized by highly
technical personnel. The problem was that the leaders of engineering organizations have not
eliminated loss of tacit knowledge transfer among employees. The purpose of this qualitative
multiple case study was to gain an understanding of how engineering consulting organization
leaders facilitate the transfer of tacit knowledge among employees. The study was underpinned
by the conceptual framework of socialization, externalization, combination, and internalization
model developed by Nonaka and Takeuchi and Burns’ transformational leadership theory. A
qualitative multiple case study design was used by employing multiple sources of information
including semi-structured interviews, field notes, and review of organizational documents. The
unit of analysis was leaders in an engineering consulting organization. The data analysis
processes involved coding of the data, categorizing the coded data, and subsequently generating
themes in line with the research question using NVivo Version 12 software. Findings indicated
that leaders facilitated the transfer of tacit knowledge through the creation of a safe environment
for employees, on-the-job development, caring support, and implementation of quality practices.
The opportunity to facilitate the transfer of tacit knowledge among employees in engineering
consulting organizations enhances growth among employees. The outcome could contribute to
social change through improved professionalism and expertise of employees.
Keywords – Tacit knowledge, Knowledge-transfer, Management support, Organizational
culture, and Growth
1.0 Introduction
Consulting engineering organizations are knowledge-intensive firms that leverage the
expertise of their skilled workforces for operational continuity (Ding, Zuo, Wang, & Zillante,
2016; Kuciapski, 2017) and competitive advantage. Tacit knowledge has unique peculiarities in a
knowledge-based organization. The technical and professional skills of engineers are critical to
the operational continuity of the organization (Litchfield, Javernick-Will, & Maul, 2016; Pérez-
Luño, Saparito, & Gopalakrishnan, 2016). Therefore, the focus of engineering consulting leaders
has shifted from physical to intellectual assets (Millar, Chen, & Waller, 2017). Leaders and
academics recognize that knowledge management (KM) is essential for competitive advantage
(Garrick & Chan, 2017). The transfer of tacit knowledge may enable organizations to preserve
critical knowledge and promote operational continuity (Ding et al., 2016).
The strategic resources for the sustainability of organizations are the knowledge of the people
who worked for or are currently working for the organization (Millar et al., 2017). Although the
exit of experts from organizations may be inevitable, there could be a transfer of knowledge
among employees through knowledge sharing (Joe, Yoong, & Patel, 2013; Witmer, 2018).
According to Krylova, Vera, and Crossan (2016), the defection and attrition of experienced
employees has an impact on the future workforce if there is no as organizational practice of a
knowledge transfer strategy (Reder et al., 2010). The consequence is a challenge for organization
leaders to hire qualified candidates due to the increasing needs of the organization and to stay
competitive (Denner & Blackman, 2013; Millar et al., 2017).
Pereira, Alves, and Ferreira (2016) explained that tacit knowledge might impact customer
loyalty. Lack of quality in knowledge transfer practice, according to Litchfield et al. (2016),
might limit the usefulness of the captured tacit knowledge to enhance organizations’ bottom line.
According to Ren, Deng, and Liang (2018) and Denner and Blackman (2013), few organizations
have a formal strategy for knowledge retention of experienced employees and methods of
eliminating loss in the process of knowledge transfer. Dzekashu and McCollum (2014) added
that the limiting factors to adequate knowledge transfer are insufficient quality in the process.
Imran, Ilyas, and Aslam (2016) and Millar et al. (2017) posited that understanding how leaders
facilitate the transfer of tacit knowledge at engineering consulting organizations is significant.
This research was conducted to gain an understanding of how leaders in an engineering
consulting organization facilitate the transfer of tacit knowledge among employees. The
opportunity to leverage the transfer of tacit knowledge for experienced employees at an
engineering consulting organization may enhance the growth of new employees and contribute to
positive social change.
2.0 Methodology
2.1 Problem Statement
The projected number of aging or experienced workers exiting the engineering industry
between 2011 and 2029 will create a labor scarcity that will affect the engineering industry (Ren
et al., 2018). The labor scarcity may be a result of unqualified candidates due to inadequate
knowledge required to fill the gap. A survey administered by the Technology Services Industry
Association in KM across industries showed that 43% of the 300 respondents thought that there
are unqualified employees because of inadequate knowledge (Ragsdale, 2018).
The general management problem is that despite the efforts in capturing tacit knowledge,
leaders of organizations have not fully realized the benefit of tacit knowledge (Joe et al., 2013;
Litchfield et al., 2016; Perjanik, 2016). The specific problem is that the efforts of the leaders of
engineering consulting organizations in eliminating loss in the transfer of tacit knowledge among
employees have not been realized (Dzekashu & McCollum, 2014; Millar et al., 2017; Wang,
Zhou, & Ding, 2010).
2.2 Purpose of the Study
The purpose of this qualitative exploratory multiple case study was to gain an understanding
of how leaders in an engineering consulting organization facilitate the transfer of tacit knowledge
among employees. I selected a case study for this research because the focus was to understand
the phenomenon within its natural setting (Gog, 2015; Yazan, 2015; Yin, 2014). According to
Bendassolli (2013), the goal of qualitative research is to gain an understanding of a situation,
individuals, or group of people. Dzekashu and McCollum (2014) also noted that the qualitative
approach is suitable for answering how questions. A case study enables the researcher to obtain a
more in-depth understanding of the phenomenon of interest (Agee, 2009; Yin, 2014).
2.3 Research Questions
The overarching research question was: How do leaders in an engineering consulting
organization facilitate the transfer of tacit knowledge among employees?
2.4 Conceptual Framework
The conceptual framework for this study was based on (a) the socialization, externalization,
combination, and internalization (SECI) model developed by Nonaka and Takeuchi (1995), and
(b) transformational leadership theory (Burns, 1978). Knowledge creation is a dynamic process
of spiral interaction of explicit and tacit knowledge and involves the transfer of tacit and explicit
knowledge among individuals and groups of individuals within and outside organizations
(Nonaka & Takeuchi, 1995). In this dynamic process of knowledge creation, there is a
continuous interaction among varied levels of employees. Research has shown that the
leadership role is critical to the outcome of the interaction (Tsai, Wang, & Yuan, 2015).
Transformational leadership theory focuses on the followers and leadership relationship and
how leaders motivate followers to support each other to a higher level of performance (Burns,
1978). Leaders inspire followers to achieve unremarkable results by working with the team in
identifying changes, instituting a guide through inspiration, and executing the change with the
group (Burns, 1978). This study focused on the effect of transformational leadership on
knowledge transfer programs. Research has shown that visible leadership commitment has a
positive mediating effect on employees’ competence and job performance (Tsai et al., 2015).
Transformational leaders enable followers to focus on goal attainment, accept the ethical
practice, and promotion of personal sacrifice for achieving goals (Qu, Janssen, & Shi, 2015).
Tse, Huange, and Lam (2013) maintained that transformational leaders promote enduring social
exchange between the organization and the employees by breaking down the rivalry of self and
organizational interest and ultimately reducing turnover of employees. Tsai et al. (2015) further
argued that a transformational leader has a positive influence on employees’ engagement, job
satisfaction, and personal commitment to an organizational goal. Therefore, the transformational
theory can be used as a lens to understand the role of leaders in the knowledge exchange
3.0 Literature Review
3.1 Tacit Knowledge in Engineering Consulting Organization
Tacit knowledge is an intellectual asset that is based on experience and overly complicated.
The strategies for capturing tacit knowledge have varied challenges. For this study, the capturing
of tacit knowledge is the extracting of knowledge from an individual or group for a projected
benefit of all (Dzekashu & McCollum, 2014; Garrick, 2018). Tacit knowledge is often difficult
to verbalize by the individuals that possess it. The acquisition of the knowledge is through the
interaction of three cognitive processes- selective encoding (sifting through information),
combination (integration), and comparison (for continuous update of knowledge). The
coordination of these processes supported the practical application of tacit knowledge in an
organization (Garrick, 2018; Seidler-de Alwis, & Hartmann, 2008). Hau et al. (2013) and Endres
and Chowdhury (2014) stated that KM has growing attention in enhancing and supporting
knowledge creation and sharing within organizations.
3.2 Capturing of Tacit Knowledge in Engineering Consulting Organization
The design of the study was to understand how leaders are facilitating the transfer of tacit
knowledge in consulting engineering organizations. Bican, Guderian, and Ringbeck (2017)
posited that there is a diverse range of practices available to capturing knowledge, and successful
implementation of knowledge must be a collaboration between leadership and employees. KM
requires vital supportive drivers, such as the availability of organic organizational structure,
human resources, and supportive culture (Papa et al., 2018).
Organization culture. Extant literature established the significant impact of organizational
culture in supporting KM processes (Papa et al., 2018). Organizational culture is a set of
values/beliefs that guide its behavior (Tomas & Hult, 2003). The success of KM thrives on the
support of organizational culture and can constitute vital promoters or barriers of a collaborative
mutual work environment (Papa et al., 2018). Papa et al. (2018) posited that organizational
culture hinged on leadership support and in turn may affect KM. The level of trust among
employees is an essential factor in advancing organizational KM. Wahba (2015) confirmed that
organizational structure positively enhances and is significant to supporting KM (Sunalai, &
Beyerlein, 2015; Wahba, 2015).
3.3 Challenges of Knowledge Transfer
There is an increase in the relevance of human and cultural concerns in KM. A more profound
knowledge or experience is a product of higher tacit knowledge that comes with more significant
difficulties in articulation. Since tacit knowledge is highly individual (Polanyi, 1974), diffusion
of the knowledge may seem impossible (Augier & Vendelo, 1999; Roy & Mitra, 2018).
Researchers asserted that there are difficulties in sharing tacit knowledge. One of the challenges
is the perception, which is a characteristic of unconsciousness, or lack of awareness of the wealth
of knowledge possesses by people (Polanyi, 1974; Roy & Mitra, 2018). Second challenge is the
language difficulty due to the non-verbal form of tacit knowledge. Third, time is a threat to
capturing tacit knowledge because of the amount required to complete the communication
process. Augier and Vendelo (1999), and Bennett and Gabriel (1999) stated that the
internalization of tacit knowledge requires a considerable time among employees. Fourth
challenge is ensuring the value/quality of tacit knowledge (Donate & de Pablo, 2015). The
quality of the captured knowledge may drive the willingness of employees to apply them. Lastly,
the remote characteristics in the present work-life pose an immeasurable resistance to the
dispersion of tacit knowledge as face-to-face seems to be a better platform for effectiveness
(Garrick, 2018; Leonard & Sensiper, 1998).
4.0 Findings/Results
4.1 Research Setting
To recruit participants for this study, requests were sent to the authorization officers in two
organizations; these officers later sent me the contact information of potential participants who
met the inclusion criteria. The criteria were leaders with a minimum of 5 years of experience at a
consulting organization. The consulting firm also had to have a minimum of 10 years of
operation in the United States and a minimum of 10 employees. Invitation through e-mails was
to 25 individuals on the list. Some potential participants declined to be a part of the study based
on their busy schedules; others did not respond to the e-mail. The holiday season caused a
significant delay in receiving responses from potential participants. Some potential participants
refused to participate because they were retiring at the end of the year. Consent forms and
interview protocols were sent participants that agreed to participate in the study.
A total number of 15 participants with 11 participants from one organization and four from
the second organization were interviewed; the distribution was based on the availability of
participants. The two organizations have footprints across the United States. A case study is a
methodological approach that involves the in-depth exploration of a specific bounded system
(Mills et al., 2010). In this study, the bounded system was the process of transferring tacit
knowledge among employees in a consulting organization. Multiple forms of data collection are
employed to gather information on how a system operates or functions systematically (Mills et
al., 2010).
In this study, triangulation of the semi structured interviews occurred using field notes and
organizational nonproprietary documents for data collection. Moving through the field notes and
documents, the researchers extracted codes and categories keeping in mind the list extracted
from the interview transcripts. The list generated was compared with the transcript list and
merged into a master list from all the data. The master list constituted the outline of the recurring
patterns that became the themes of the study. The themes are the conceptual elements that span
the categories generated from the multiple data sources. The multiple data sources were used to
corroborate and augment evidence from the interviews.
Based on the field notes, analyses of the interviews, and the document review, there was no
new insight or codes after the 11th interview. Saturation occurs when continued data collection
produces no new information or insights into the phenomenon of study. The researchers
concluded the existence of data saturation; hence, the study was limited to two cases. The
interviewing process and peer checking occurred in the two organizations and spanned 7 weeks.
The interviews were performed at the office premises of the participants. They administered and
disseminated the script and the informed consent agreement to the research participants and
explained the primary focus of the study before the interview.
The interviews lasted approximately 20–30 minutes. The transcripts were sent to the
participants about 2 days after their interview was conducted to ensure their immediate review
for the strength, validity, and reliability of the data collection process and the study. All 15
participants reviewed the transcripts with either minor or no comments. The strength of the study
reflects a mixture of interviewees’ expertise. The professional knowledge shared by the
participants during the face-to-face interviews showed the depth of their knowledge of the
phenomenon of interest.
4.2 Study Results
The central research question of the study was how leaders in an engineering consulting
organization facilitate the transfer of tacit knowledge among employees. In the following
sections, the researchers presented the findings of this study about how leaders in an engineering
consulting organization facilitate the transfer of tacit knowledge among employees. They
reported outcomes of the reflexivity through the multiple analysis of the experiences and lessons
learned by the participants. The selected two organizations have footprints across the United
States. Based on the field notes, analysis of the interview, and document review, there was no
new insight or codes after the 11th interview. The researchers concluded the existence of data
saturation and purposively selected 15 participants in alignment with the research method and
methodology of this research study.
4.3 Major Themes
The reviewed semi structured open-ended questions, notes, documents and all the sources
of data were uploaded into NVivo 12. The document reviewed included the organizations’
Newsletters, Quarterly meeting bulletins, Training and Development weekly update, Quality
Assurance and Control manuals, Practice Group bulletins, and websites. The emergent themes
resulted from the analysis and interpretation of the data collected from the semi structured
interview question, field notes, in conjunction with the internal and external documents from the
two organizations.
Table 1
Emergent Major Themes and Categories from Interviews, Field Notes, and Document Review
Major themes Categories
On the job growth Transformational, mentoring, trust, collaboration/partnership,
interaction, choice, and organizational structure
Quality Communication, continuous improvement, and planning
Management Support Employee Development, Policies, and Employee Well-being
50%
20%
30%
Major Themes
On the Job Growth Quality Management Support
Table 2
Inductively Developed Thematic Theme: On-the-Job Growth
Key Code Category Source % Relative
Occurrence
Management
Participation
Transformational
leadership/
organizational
structure
Organization structure chart, newsletter,
weekly update, project planning
worksheet, meeting agenda, practice
group bulletin, project management plan,
interview, website, field notes
20
Guidance Mentoring Interview, newsletter, website, QAQC,
lesson learned, feedback form, field notes
16
Interaction Trust Interview, field notes, newsletter,
quarterly meeting bulletin, and website
16
Lesson learned Collaboration Interview, newsletter, quarterly meeting
bulletin, website, QAQC, project
planning form, and field notes
16
Seminars/
conferences
Partnering Interview, newsletter, website, practice
group bulletin, project planning form,
training and development schedules, and
field notes
16
Ownership Choice Interview, newsletter, website, and field
notes
16
Management
Par!cipa!on
Guidance
Interac!on
Lesson learned
Seminars/Conferences
Ownership
0
4
8
12
16
20
% Occurence
Table 3
Inductively Developed Thematic Theme: Quality
Key code Category Sources % Relative
occurrence
Awareness Communication Practice group bulletin, training and
development schedule, lesson learned,
interview, newsletter, website, QAQC,
and field notes
35
Gap
identification
Continuous
improvement
Practice group bulletin, training and
development schedule, lesson learned,
interview, newsletter, website, QAQC,
and field notes
35
Organizing Planning Practice group bulletin, training and
development schedule, lesson learned,
interview, newsletter, website, QAQC,
30
and field notes
Awareness Gap iden!.ca!on Organizing
27
28
29
30
31
32
33
34
35
36
% Occurrence
Table 2
Inductively Developed Thematic Theme: Management Support
Key code Category Sources % Relative
occurrence
Employee
Development
Accommodating
policies
Practice group bulletin, training and
development schedule, lesson learned,
interview, newsletter, website, and field
notes
36
Policies Openness Practice group bulletin, training and
development schedule, interview,
newsletter, website, and field notes
34
Employee Well-
being
Job security and
Safety
Consciousness
Practice group bulletin, training and
development schedule, interview,
newsletter, website, and field notes
30
Employee Development Policies Employee Well-being
27
28
29
30
31
32
33
34
35
36
% Occurrence
5.0 Conclusion
5.1.0 Interpretation of Findings
To reach conclusions about the contribution of this study to the existing body of knowledge,
the researchers performed data source analysis with the literature. The conceptual framework of
this study was used to determine the boundaries of the review, and the study findings served as
the main themes for the review. They discussed the contributions of this study in terms of
understanding how leaders are supporting the transfer of tacit knowledge among employees.
The research question that guided this study was: How do leaders in an engineering
consulting organization facilitate the transfer of tacit knowledge among employees? The data
was manually coded from the transcribed interviews of the research participants, field notes, and
document review from the two organizations to generate the themes to address the research
question. Three major themes emerged, and the themes aligned the themes with findings from
the literature review to ascertain the concurrence and to corroborate with the previous research
framework as outlined in the literature review and the conceptual framework.
5-1-1 On-the-Job Growth
From the findings of this study, the researchers determined that leaders facilitate the transfer
of tacit knowledge through on-the-job development. The findings aligned with Srivastava and
Jain (2017), who found that leaders guide, direct, and influence employees to change and are
involved in the change process. The success of tacit knowledge transfer thrives on the support of
management who serve as a vital promoter of a collaborative mutual work environment (Papa et
al., 2018). This finding also confirmed that organizational structure is significant to supporting
and may positively enhance KM (Sunalai, & Beyerlein, 2015; Wahba, 2015).
The findings of this study also revealed that a leader’s demonstration of concern and support
significantly supports the transfer of tacit knowledge. Leaders empowered employees in
optimizing their potential through concern for others, openness, and support because knowledge
sharing enables people to do their work using collective knowledge and experience (Beehr &
Bennett, 2015). The goal of leaders is to empower employees in optimizing their potential, which
is fostered in the concern for others, openness, and support (Beehr & Bennett, 2015). Diverse
range of practices are available to transfer knowledge, and successful implementation of
knowledge must be a collaboration between leadership and employees. The findings also
established that the level of trust among employees is an essential factor in advancing
organizational. Organizational structure is a significant key in promoting the building of
relationships, which in turn, positively enhances the transfer of tacit knowledge (Wahba, 2015).
5.1.2 Quality
The findings from this study established that quality is considered the connecting bridge with
customers and makes the organization attractive to existing and potential customers. The quality
transfer of tacit knowledge is an enabler for organizations to preserve critical knowledge and
promote operational continuity. How leaders ensure good quality practice promotes the transfer
of tacit knowledge. Three categories were identified from the analysis: (a) communication, (b)
continuous improvement, and (d) planning. The findings from this study confirmed Alharbi et
al.’s (2018) findings that quality management affects tacit knowledge transfer. Litchfield et al.
(2016) established that a lack of necessary quality might limit the usefulness of the captured tacit
knowledge (Millar et al., 2017). Nam Nguyen and Mohamed (2011), and Millar et al. (2017)
posited that leadership behaviors in KM practices would be a key driver for optimum benefits of
tacit knowledge.
From this study, there is a confirmation of the findings of Dzekashu and McCollum (2014)
that: (a) top management’s engagement produced an optimum result within the organization, (b)
quality policies in place will translate to real and desired improvements, (c) The management
activities have a maximum enormous on the effectiveness of the processes., (d) The self-
assessment of the quality management system by organizational leaders improves the overall
effectiveness and efficiency, and (e)The method used by the organizational leaders for analyzing
performance had maximum impact on the organization (Dzekashu & McCollum, 2014).
5.1.3 Management Support
From this study, leaders facilitate the transfer of tacit knowledge through practical
demonstration of high level of support to employees. This finding is supported by Garrick and
Chan (2017) that established that positive management support resulted in exponential
transformation of employees and their well-being. Neukam (2017) and Badara et al. (2015)
inferred that knowledge sharing, through collaboration, thrives in a welcoming environment
where both leaders and individual contributors can flourish.
5.2.0 Recommendations
The study findings have created future opportunities for further research. The purpose of this
qualitative multiple case study is to gain understandings of how leaders in an engineering
consulting organization facilitate the transfer of tacit knowledge among employees.
The first recommendation is to expand the empirical research on tacit knowledge transfer to
include other countries. This supports the recommendations of Carmel et al. (2013) that more
research needed in the professional services, and specifically those knowledge-intensive
industries. The need for operational continuity exists throughout the world; there is a continued
need for research to improve the management of tacit knowledge.
The second recommendation is for future research to increase the number of participating
consulting organizations across the nation. The proposal will provide an opportunity for future
researchers to compare the result of this study with future outcomes.
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