For managing their intellectual capital and also to utilize the ‘knowledge’ more efficiently, a number of organizations have introduced Knowledge Management (KM) systems. Though explicit knowledge capture and transfer was quite possible, tacit knowledge was still a challenge for organization experts to capture and transfer. The concept of Communities of Practice (CoP) in KM is increasingly becoming popular to enhance social interactions. CoP refers to informal groups of people bound together by a common purpose. In these communities, members are provided opportunity to share their best practices, which are commonly implicit in nature. However, knowledge sharing in CoP has not been fully researched yet. The purpose of this paper is to review the relationship between KM and CoP and examine how it can influence the knowledge-sharing process in organizations. This study proposes a critical reading of the studies available on the topic, with the purpose to identify the main elements and methods influencing the transfer of knowledge. It reviews the emerging concept of ‘CoP’ as a knowledge transfer method for sharing knowledge which is commonly implicit in nature. This paper presents that the concept of CoP can foster joint learning that involves tacit and codified knowledge. Members of a CoP share a concern or a passion for something they do and learn how to do it better as they interact regularly. The existence of common knowledge and a shared system of values makes sharing tacit knowledge easier in CoP, as group members have insights into the implicit assumptions and values embedded in each other’s knowledge. An empirical work in managing CoP and in identifying the knowledge-sharing methods represents an interesting challenge for further research in the area.

In the knowledge economy, changes due to globalization and the current knowledge revolution are forcing organizations to continuously innovate and create new capabilities to face the growing pressure for improved performance. However, organizations face innumerable challenges in nurturing and managing knowledge. Unlike manufacturing activities, knowledge activities are difficult to manage, because only a part of the knowledge is internalized by the organization, the other part is internalized by the individuals. To remain at the forefront, organizations need a capacity to retain, develop, organize and utilize their employees’ capabilities, which include the knowledge internalized by them due to the experience and exposure on the job.

The growing importance of knowledge as a critical business resource has compelled executives to examine the knowledge underlying their business, giving rise to Knowledge Management (KM) initiatives. KM promotes an integrated approach to identifying, managing and sharing all of an organization’s information assets. These information assets may include databases, documents, policies and procedures, as well as previously unarticulated expertise and experience resident in individual workers. KM is to understand, focus on, and manage systematic, explicit, and deliberate knowledge building and application, that is, manage effective knowledge processes. The overall purpose of KM is to maximize the enterprise’s knowledge-related effectiveness and returns from its knowledge assets and to renew them constantly. One critical component of KM initiatives is creating methods to facilitate sharing of knowledge. This study proposes a critical reading of the studies available on the topic, with the purpose of identifying the main elements and methods influencing the transfer of knowledge. It reviews the emerging concept of ‘Communities of Practice’ (CoP) as a knowledge transfer method for sharing knowledge which is commonly implicit in nature.

Knowledge Management Journal, International Accounting Standards Board, Financial Accounting Standards Board, Generally Accepted Accounting Principles, GAAP, EXtensible Business Reporting Language, XBRL, Knowledge Accounting Components, Accounting System, GAAP Codification, Business Transactions, Public Administration Processes, Ontological Methods, Manufacturing Sectors, Financial Statements, Knowledge Acquisition, Information Systems.