Knowledge Acquisition and Loss
Metaphorically, the energy conservation law that is applied to all physical systems can be transferred to organizations as the dynamic equilibrium of organizational knowledge. The balance equation for organizational knowledge includes knowledge creation, knowledge acquisition, and knowledge loss. Knowledge acquisition means to bring in organization fluxes of knowledge from the external environment, while knowledge loss means to have fluxes of knowledge crossing the interface toward the external environment. The purpose of this chapter is to present the main issues that are related to knowledge acquisition and knowledge loss for organizations. Knowledge loss became a hot issue in the last decade when the wave of baby boomers reached the retirement age. In the United States and in Europe, ageing of workforce, as well as the downsizing strategies during economic crises, generated many problems due to knowledge loss, which leads to a decreasing capacity for business competition.