Innovation is driven primarily by tacit knowledge. It draws on highly subjective insights, intuitions and hunches that form an integral part of tacit knowledge. These factors are soft and qualitative and therefore defy traditional mechanistic management approaches. Therein lies the managerial challenge. It involves building the requisite social capital and putting in place appropriate integration mechanisms that enable people with ideas and experience to connect with others and exchange anecdotes. The manager’s challenge lies in creating the proper organisational context and inter-functional climate for knowledge creation.
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