The authors argue that current knowledge management practice, which focuses on managing explicit data and information technology, is not enough. Tacit knowledge, such as subjective insights or emotions must also be considered.

Converting between these forms of knowledge is important, and the concept of ART (action-reflex-trigger) systems is introduced to enable this to take place. ART systems enable companies to implement a multi-dynamic approach to knowledge management.

The complex concept of `ba' is introduced--a shared mental space for knowledge creation--which provides a foundation for knowledge creation. The authors explore the nature, context and enabling conditions for ART systems and show how ba can be employed in ART systems.

This paper presents empirical findings on interfunctional transfers of engineers, using quantitative data collected from a large, R&D-oriented, Japanese manufacturing firm. Through quantitative analyses on characteristics of interfunctional transfers within a Japanese firm, the empirical part of the study reveals actual frequencies, timing, and patterns of interfunctional transfer to examine the relevancy of the general image of the "job rotation" practice of Japanese firms. Based on our empirical findings, we suggest that interfunctional transfers may provide Japanese companies with critical organizational capabilities for cross-functional integration, which are embedded deeply in the social context of the engineering organization.