Understanding context: its emergence, transformation and role in tacit knowledge sharing

Organizations, especially those adapting to rapidly changing environments, face the challenge of being able to solve complex problems within highly constrained timeframes. Complex problem solving has been addressed by theories of bounded rationality. However, these theories focus on solving complex but structured problems, and thus, context and how it emerges and transforms is not a central issue. More recently, theories of the firm as a knowledge‐creating entity have focused on how organizations solve complex unstructured problems. These theories suggest that context and contextualization are central elements in problem solving. Yet, no understanding of how context emerges and transforms emerges from these theories. The present paper focuses on the emergence and transformation of context in solving complex unstructured problems, attempts to remedy the shortcomings of the theories described above and investigates the nature of context. Concludes by explaining its role in tacit knowledge sharing.

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