Total Quality Management

Vol. 16, No. 5, 657 670, July 2005

A Knowledge Creation Model for

ISO 9001 : 2000

CHINHO LIN & CHUNI WU


Department of Industrial and Information Management, College of Management, National Cheng Kung
University, Taiwan, Republic of China,   Department of Information Management, Hsing-Kuo University of
Management, Tainan, Taiwan, Republic of China

ABSTRACT ISO 9000 has become a favoured system for many organizations embarking on quality
improvement. ISO 9001 : 2000 is an information-sharing tool that an organization can use to gain
the knowledge needed to enhance quality and performance. It also provides a ready framework
for ordering and structuring an organizations knowledge. Knowledge creation focuses on
generating new knowledge, and knowledge can be re-used and new knowledge can be integrated
with current knowledge to develop even more valuable knowledge to improve performance. In
this paper, we illustrate a knowledge creation model for ISO 9001 : 2000. It is a comprehensive
framework for researchers to conduct case studies to explore the knowledge management
activities in ISO 9001 : 2000. In addition, we explore the knowledge creation opportunity within
ISO 9001 : 2000 and discuss the knowledge created within ISO 9001 : 2000. This architecture
offers an initial model for organizations that want to facilitate their knowledge flows in ISO
9001 : 2000 and further proceed with their knowledge management systems in ISO 9001 : 2000 in
practical applications.

KEY WORDS : ISO 9001 : 2000, knowledge creation model, knowledge creation opportunity

Introduction
ISO 9000 has become a favoured system for many organizations embarking on quality
improvement (Coleman & Douglas, 2003). Its effects on product quality and sales compe-
titiveness may be clearer after achieving certification (Huarng & Lin, 1996). On the other
hand, integration into global production systems requires that organizations meet the
standards of industrial certification (for example, ISO 9000). Presently, not having ISO
certification is increasingly becoming a barrier to entry into the global marketplace
(Mittelstaedt et al., 2003). The new ISO 9001 : 2000 was developed to assist organizations
with implementing and operating effective quality management system. It aims at

Correspondence Address: Chinho Lin, Department of Industrial and Information Management, College of
Management, National Cheng Kung University, No.1, Ta-Hsueh Road, Tainan 701, Taiwan, Republic of
China. Email: linn@mail.ncku.edu.tw

1478-3363 Print=1478-3371 Online=05=05065714 # 2005 Taylor & Francis Group Ltd

DOI: 10.1080=14783360500077625
658 C. Lin and C. Wu

customer satisfaction (customer focus) and places emphasis on process and continual
improvement (Russell, 2000). In terms of customer focus, the most widely used and
most valuable practices focus on developing the organizations customer knowledge
(Kuratko et al., 2001). In the mean time, organizations that effectively implement ISO
9000 have developed a documentation system that allows for sorting and selecting infor-
mation (Zuckerman, 2000). Documentation is important because it is a key manifestation
of knowledge (Heng, 2001). This paper aims at investigating how and where the knowl-
edge can be created within ISO 9001 : 2000. The paper is organized as follows. First, we
integrate the ISO 9001 : 2000 quality system clauses into a process model to explore
knowledge creation opportunities within ISO 9000 : 2000; then a knowledge creation
model for ISO 9001 : 2000 is proposed; and finally we discuss the knowledge created
within ISO 9001 : 2000.

Knowledge Creation Opportunities within ISO 9001 : 2000

As mentioned above, the new ISO 9001 : 2000 encourages adopting a process approach
for management in order to readily identify and manage opportunities for improvement.
According to Mentzas et al. (2001), a process approach makes direct connections
between the organizational knowledge assets both explicit and tacit. In addition, the
types of knowledge that are of vital importance to the viability and survival of an organ-
ization are categorized as critical knowledge. ISO 9000 documentation contains various
aspects of the knowledge, including a substantial amount of critical knowledge (Heng,
2001). To explore the ISO 9001 knowledge creation system, we illustrate its integrated
processes framework and discuss knowledge creation opportunities within it see
Figure 1.
According to ISO 9001 : 2000 clauses (ISO, 2000), top management of the organization
shall first make commitment to ensure that customer requirements are determined and met
in order to enhance customer satisfaction. After that, the organization shall ensure that
resources needed are determined, provided, and used efficiently by means of resource
management processes. In addition, before planning of product realization, the organiz-
ation shall determine and implement effective arrangements for communication with cus-
tomers in relation to product information, enquiries, and customer feedback. In product
realization planning, the organization shall determine the processes needed and require-
ments for the products. Finally, in order to achieve planned results and continual improve-
ment of these processes, the organization shall plan and implement the monitoring,
measurement, and analysis processes needed (for example, production-monitoring
process or internal-auditing process), and monitor information relating to customer per-
ception with the aim of enhancing customer satisfaction as to whether the organization
has met customer requirements.
When performance falls below expectation, the organization shall take corrective
actions to eliminate the cause of non-conformities, and preventive action to eliminate
the causes of potential non-conformities in order to prevent recurrence. Prevention
entails ensuring that problems do not happen, and is one way to move toward continual
improvement (Kanji, 1998). What truly distinguishes the performance of different
organizations competing in a given industry is explained by the core competency that
the organizations deploy to differentiate themselves from each other (Hax & Majluf,
1996). There are six knowledge creation opportunities within ISO 9001 : 2000 processes.
 A Knowledge Creation Model for ISO 9001 : 2000 659

Figure 1. Knowledge creation opportunities within ISO 9001 : 2000 processes

Opportunity 1. Management Responsibility

The organization that seeks ISO 9000 certification focusing on real quality improvement
achieves higher overall benefits, especially improvements in quality and in internal organ-
ization and operation. Thus, top management must signal their intent to implement ISO
9000 and demonstrate that they are committed to achieving it (Poksinska et al. 2002).
According to ISO 9001: 2000 (ISO, 2000), top management shall provide evidence of
its commitment such as by establishing quality policy and quality objective, and conduct-
ing management review. There will exist critical knowledge about vision and mission, and
performance objectives that can be captured as an intellectual capital within management
responsibility (Heng, 2001).
The vision and mission knowledge defines the competitive domain in terms of the
organization scope (products, markets, and geographical locations) as well as the
unique competencies that determine the key capabilities of the organization (Hax &
Majluf, 1996). The performance objectives knowledge will allow for a proper control
and reward system, and finally will impact significantly on the culture of the organization.
660 C. Lin and C. Wu

The organizational culture is the carrier of tacit knowledge in the organization (Tucker
et al., 1996), and cultures with a quality of care facilitate organizational members com-
munication and sharing of knowledge (Von Krogh, 1998).

Opportunity 2. Resource Management

Resources could be both tangible and intangible. Infrastructure is an example of tangible
resource. The organization shall determine, provide and maintain the infrastructure needed
to achieve conformity to product requirements. Infrastructure is a formal counterpart to an
organizations cultural knowledge resource. It is the knowledge that structures an organ-
izations participants in terms of the roles that have been defined for participants to fill,
the relationships among those roles, and regulations that govern the use of roles and
relationships (Holsapple & Luo, 1996). For intangible resources, such as human
resources, the organization shall determine the necessary competence for personnel per-
forming work that affects product quality. There are basic techniques and knowledge
areas in human resources management that are portable across organizations. These
areas may include human resources specialist knowledge such as that of job evolution
and of employment law (Tyson, 1999), and knowledge of individual competence such
as skills certification (Heng, 2001).

Opportunity 3. External Communication to Customer

Customers may not even know that a product can meet their needs. They also may lack the
necessary knowledge to be able to appreciate how the product works and what its true
benefits are relative to existing alternatives (Athaide et al., 1996). Thus, communication
means keeping the customers informed in a language they can understand and listening
to them. It may mean that the organization has to adjust its language for different consu-
mers, that is, increasing the level of sophistication with a well-educated customer and
speaking simply with a novice (Parasuraman et al., 1985). Organization will acquire
certain knowledge from customers, such as production specifications and organizational
capabilities (Heng, 2001), by interacting with them (Nonaka et al., 2000).

Opportunity 4. Product/Service Realization

The source of long-term competitive advantage for any organization is derived from
access to some forms of knowledge that it can exploit; for example, process capability
is the primary source of advantage (Beckett et al., 2000). In product realization, the organ-
ization shall plan and develop the processes needed for product realization. ISO
9001 : 2000 clause 3.4.1 (ISO, 2000) defines a process as a set of interrelated or interact-
ing activities, which transforms inputs into outputs. Inputs and outputs may include equip-
ment, material, components, energy, information and financial resources. In order to
perform activities within the process, appropriate resources have to be allocated. That
is, personnel who use resources such as their knowledge and experience (humanware),
as well as a variety of methods and techniques (software) and/or tools and equipment
(hardware), perform processes that are aimed at (contributing to) achieving the goals of
the organization (De Lange-Ros & Boer, 2001).
 A Knowledge Creation Model for ISO 9001 : 2000 661

Products and services are produced through value-adding transformation of resources

by personnel who have the required capabilities within an organization. The resources
and capabilities are the source of the unique competencies of an organization (Hax &
Majluf, 1996). In order to support the inter-organizational sharing of resources and com-
petencies in a network structure, communication and co-ordination need to be maintained.
Organizations are redesigning their internal structure, creating knowledge networks to
facilitate improved communication of data, information, and knowledge, while improving
coordination, decision making, and planning (Warkentin et al., 2001). In addition, organ-
izations are now pursuing more intensive and interactive relationships with their suppliers.
The suppliers knowledge of raw materials can be passed on to the organization to allow
for a more informed decision to be made (Lim et al., 1999).

Opportunity 5. Measurement, Analysis and Improvement

In ISO 9001 : 2000, the analysis of data, for example, which is generated from the pro-
duction-monitoring processes, can be converted into information. If this information
can be exploited to give competitive advantage and, therefore, has a relevance to the
organization, it constitutes knowledge (Beckett et al., 2000). In addition, sharing infor-
mation within a team, a department, and a full company is at the heart of the ISO
9001 : 2000 internal auditing process. It is through information sharing that an organiz-
ation can gain the knowledge needed to enhance quality and performance (Zuckerman,
2000). When an organizations performance falls below expectation, knowledge can be
re-used and new knowledge can be integrated with current knowledge to develop even
more valuable knowledge to improve performance (Sharkie, 2003). A quality control
circle is an example that allows employee to make improvements in the manufacturing
process by articulating the tacit knowledge accumulated on the shop floor over years on
the job (Nonaka et al., 2000).

Opportunity 6. Customer Perception

Long-term relationships with customers are thought to be necessary for the development
of services that ultimately provide customer value (Jackson, 1985). The satisfaction of
customer wants that is superior to that of the rivals requires organizations to concentrate
on building distinct capabilities based on a series of tightly coordinated activities. Integrity
related capabilities are built when the organization is able to do things more quickly, flex-
ibly or reliably than rivals are able to do. These capabilities might relate to such things as
management of cycle time or quality management, and all of which have a component of
knowledge in them. The superiority of these capabilities comes from the exercise of
embedded knowledge (Sharkie, 2003). In addition, when the organization monitors infor-
mation relating to customer perception, it needs to contact customers frequently. Frequent
customer contact by personnel is one means by which knowledge regarding customer
activities, needs, wants, and other information related to organization development of
value enhancing services is acquired (Gordon et al., 1993).
From the above discussion, we argue that knowledge creation opportunities abound in
ISO 9001 : 2000. It is beneficial to analyse the ISO 9001 : 2000 knowledge creation
process.
662 C. Lin and C. Wu

A Knowledge Creation Model for ISO 9001 : 2000

Knowledge-creating Process
As a managerial issue, knowledge management is now increasingly being viewed as a
crucial factor in succeeding in the current competitive scenario. At the same time, the aca-
demic question of how knowledge should best be defined is still under debate. On one
hand, knowledge can be seen as a representation of the real world; on the other, it can
be conceptualized as a product of the interaction between individual cognition and
reality (Von Krogh, 1998).
There has been an emerging shift in organizations, beginning with a focus on data and
further refining into an information system. From the perspective of an individual, data is
a set of particular and objective facts about an event, such as the purchase of a product at
the grocery store or a change in a stock price. However, such figures are not meaningful
until they are converted into some form of information, and information is regarded as
an organized set of data. It is data endowed with relevance and purpose. Knowledge can
also be seen as an organized combination of data, assimilated by means of a set of rules,
procedures, and operations learned through experience and practice. In a sense, knowledge
is meaning made by the mind (Marakas, 1999). Without meaning, knowledge is merely
information or data. Thus, the distinction between information and knowledge depends
on the users perspectives (Bhatt, 2001). In addition, knowledge is context-dependent,
since meanings are interpreted with reference to a particular paradigm (Marakas, 1999).
Nonaka et al. (2000) argued that the knowledge management that academics and
business people talk about often merely means information management. The
organization is not merely an information-processing machine, but an entity that creates
knowledge through action and interaction. From this viewpoint, they proposed a knowl-
edge-creating process consisting of three elements: (i) the SECI process; (ii) ba, the
shared context for knowledge creation; and (iii) knowledge assets, are the bases of knowl-
edge-creating processes. Thus, information becomes knowledge when it is interpreted by
individuals, given a context, and anchored into the beliefs and commitments of individuals.
The key to knowledge creation lies in the mobilization and conversion of tacit to explicit
knowledge. The first element of the knowledge-creating process is the SECI process.
There are four different modes of knowledge conversion when tacit and explicit knowl-
edge interact with each other.
The socialization mode (from tacit to tacit) involves sharing tacit knowledge between
individuals. In practice, the process of acquiring knowledge through direct interaction
with suppliers and customers is a good example. The externalization mode (from tacit
to explicit) relies upon analogies, metaphors, hypotheses, and models expressed through
articulated language. In practice, writing, as an act of converting tacit knowledge into
articulated knowledge illustrates this concept (Emig, 1983). The combination mode
(from explicit to explicit) involves converting explicit knowledge into more complex
sets of explicit knowledge. In practice, the combination phase relies on three processes.
Firstly, it needs to capture and integrate new explicit knowledge. Secondly, it needs to
transfer this explicit knowledge by using presentations or meetings. Thirdly, editing or
processing explicit knowledge makes it more usable in plans and reports. Finally, the
internalization mode (from explicit to tacit) conveys explicit knowledge into tacit
knowledge. In practice, Learning by doing triggers the internalization mode. Explicit
knowledge, such as work instructions, has to be actualized through action and practice.
 A Knowledge Creation Model for ISO 9001 : 2000 663

The second element of the knowledge-creating process is ba, which is a place where
information is interpreted to become knowledge. Knowledge is created through the inter-
actions among individuals or between individuals and their environments, rather than by
an individual operating alone. B is the context shared by those who interact with each
other, and through such interactions, those who participate in ba and the context itself
evolve through self-transcendence to create knowledge. Ba does not necessarily mean a
physical space. It is a concept that unifies physical space such as an office space, virtual
space such as e-mail, and mental space such as shared ideals.
There are four types of ba. Originating ba is defined by individual and face-to-face
interaction. It is a place where individuals share experiences, feeling, emotion and mental
modes. It mainly offers a context for socialization. Dialoguing ba is defined by collective
and face-to-face interaction. It is the place where individuals mental modes and skills are
shared, converted into common terms, and articulated as concepts. Dialoguing ba mainly
offers a context for externalization. Systemizing ba is defined by collective and virtual
interactions. Systemizing ba mainly offers a context for the combination of existing expli-
cit knowledge, as explicit knowledge can be relatively easily transmitted to a large number
of people in written form. Exercising ba is defined by individual and virtual interactions.
It mainly offers a context for internalization. Exercising ba synthesizes the transcendence
and reflection through action, while dialoguing ba achieves this through thought.
The third element of the knowledge-creating process is knowledge assets. Knowledge
assets are the inputs, outputs and moderating factors of the knowledge-creating process.
There are four types of knowledge assets.
Experiential knowledge assets consist of the shared tacit knowledge, such as skills and
know-how that are built through shared hands-on experience among the members of the
organization, and between the members of the organization and its customers, suppliers
and affiliated firms. Conceptual knowledge assets consist of explicit knowledge, such
as concepts or designs articulated through images, symbols and language. They are the
assets based on the concepts held by customers and members of the organization. Sys-
temic knowledge assets consist of systematized and packaged explicit knowledge, such
as explicitly stated technologies, product specification, manuals and documented and
packaged information about customers and suppliers. Routine knowledge assets
consist of the tacit knowledge, such as know-how, organizational culture and organiz-
ational routines for carrying out the day-to-day business of the organization that is routi-
nized and embedded in the actions and practices.
Thus, in order to fashion knowledge creation within an organization, top and middle
management should provide the knowledge vision, develop and promote sharing of
knowledge assets, create and energize ba, and enable and promote the continuous spiral
of knowledge creation.

ISO 9001 : 2000 Knowledge Creation System

To discuss knowledge creation within the ISO system, we illustrate an ISO 9001 : 2000
knowledge creation model see Figure 2.
Using quality as a strategy focuses on continuously improving manufacturing pro-
cesses to increase a product or services reliability and customer satisfaction. A
quality strategy depends on the intellectual capital of organizations to make its
product or services competitive. More specially, employees in such organizations are
664 C. Lin and C. Wu

Figure 2. A Knowledge creation model for ISO 9001 : 2000

required to do more than just manual one task jobs. They are required to do knowledge
work (Lim et al., 1999).
According to ISO 9001 : 2000 (ISO, 2000), records, which only produce data, should
be established and maintained within ISO 9001 : 2000 activities. These are unstructured
streams of numbers or characters that only have relevance when viewed within a specific
context. This can be achieved through analysis such as by converting the data into infor-
mation (Beckett et al., 2000). ISO 9000 is a documentation-based communication tool.
When all employees document their work procedures and analyse their organizational
operations, they are more prepared to gather, sort, and cull information from all the
processes within their organization. Thus, in the long run, sharing information within
the organization is at the heart of the ISO 9000 implemented processes (Zuckerman,
2000).
When quality information is used to make decision to solve problems for promoting a
continuous and consistent improvement in quality, it can be converted into knowledgeable
quality information (Lim et al., 1999). Through the dynamic knowledge-creating process,
knowledgeable quality information becomes knowledge when it is interpreted by individ-
uals, given a context, and anchored within the beliefs and commitments of individuals. In
addition, knowledge creation focuses on generating a new knowledge (Bajaria, 2000) and
continuous improvement (Abraham & Knight, 2001) that will trigger improvement oppor-
tunities within ISO 9001 : 2000. Therefore, instead of merely solving current problems,
organizations can create and define problems (improvement opportunities) that can be
solved by developing and applying new knowledge (Nonaka et al., 2000).

Knowledge Created within ISO 9001 : 2000

Based on the above discussion, an organization can utilize ISO 9001 : 2000 activities to
work as various ba, which is able to offer a context for the different knowledge conversion
modes, to manage knowledge created within ISO 9001 : 2000 processes. A detailed
description is given in Table 1.
 Table 1. Knowledge created within ISO 9001 : 2000

Knowledge Knowledgeable Knowledge Type of the

creation quality information converted Type of Quality knowledge knowledge
opportunity (before converted) mode Ba (Activities) the ba (after converted) asset

1 Management review input Combination Management review Systemizing Management review output Systemic
2 Manuals and documented Internalization Training programs Exercising Technical or process Routine
procedures know-how
3 Product information and Socialization Communication with Originating Product preference Experiential
enquiries customers
4 Customer requirements Externalization Contract review Dialoguing Contract review records Conceptual
related to the product
Concept creation Externalization Design and development Dialoguing Planning output Conceptual

A Knowledge Creation Model for ISO 9001 : 2000

planning
Design and development Combination Review, verification and Systemizing Design and development Systemic
input validation output
Suppliers ability Externalization Evaluation of Suppliers Dialoguing Criteria for selection and Conceptual
evaluation
Purchasing documents Combination Purchasing documents Systemizing Adequacy of specified Systemic
review purchase requirement
Design and development Combination Product realization Systemizing Product realization plan Systemic
output (design Planning
responsibility)
Contract review records Combination Product realization Systemizing Product realization plan Systemic
(production Planning
responsibility only)
Acceptance criteria for Internalization Calibration of measuring Exercising Calibrating skill Experiential
calibration devices
5 Audit criteria Internalization Internal audits Exercising Auditing skill Experiential
Records of the nature of Combination Corrective action review Systemizing Prevent recurrence about Systemic
nonconformities nonconformities
Records of the nature of Combination Preventive action review Systemizing Prevent occurrence about Systemic
potential potential
nonconformities nonconformities

665
6 Customer perception Externalization Obtain and analyze Dialoguing Customer satisfaction Conceptual
customer perception reports
666 C. Lin and C. Wu

Management Responsibility
Top management can use management review as systemizing ba. In such activity, partici-
pants can interact with each other collectively and virtually for reviewing the organiz-
ations quality management system. Here, explicit knowledge in the form of review
input such as results of audits, customer feedback, and product conformity, is combined,
edited or processed to form synthetic knowledge in the form of review output, such as
improvement of the effectiveness of the quality management system and improvement
of product related to customer requirements.

Resource Management
The organization can use training programmes as exercising ba (Nonaka et al., 2000).
Here, personnel performing work that affects product quality can enrich their tacit knowl-
edge base, such as technical or process-approach know-how, by embodying explicit
knowledge written in documents such as manuals about their jobs or documented
procedures about the processes.

External Communication to Customer

The organization shall communicate with its customers in relation to product information
and enquiries. Such activity can be used as originating ba (Nonaka et al., 2000). Here, the
organization can accumulate the tacit knowledge embedded in customers such as product
preference.

Product/Service Realization
First, in customer-related processes, the organization can use contracts review as dialo-
guing ba. Such activity is able to facilitate creative and essential dialogue about customer
requirements related to the product among participants. Here, tacit knowledge about
requirements specified by the customer is made explicit in the form of contract review
records, such as a definition of product requirements and actions arising from the review.
Second, in design and development processes, if the design responsibility is necessary,
the organization can first use design and development planning as dialoguing ba. Such
activity is able to facilitate creative and essential dialogue about concept creation of
new product among participants (Nonaka et al., 2000). Here, tacit knowledge about
concept creation of new product is made explicit in the form of planning output, including
the determination of stages, responsibilities, and authorities related to design and develop-
ment. After that, the organization can use review, verification, and validation of design and
development as systemizing ba. In such activity, participants can interact with each other
collectively and virtually for reviewing, verifying and validating in accordance with
planned arrangements. Here, explicit knowledge in the form of design and development
input such as functional and performance requirements is combined, edited or processed
to form synthetic knowledge in the form of review output, such as product acceptance
criteria and the characteristics of the product that are essential for its safe and proper use.
Third, in the purchasing process, the organization can first use evaluation of suppliers as
dialoguing ba. Such activity is able to facilitate creative and essential dialogue about the
 A Knowledge Creation Model for ISO 9001 : 2000 667

type and extent of control applied to the suppliers among participants. Here, tacit knowl-
edge about suppliers ability is made explicit in the form of records of the results of evalu-
ation such as criteria for selection and evaluation. After that, the organization can use
purchasing documents review as systemizing ba. In such activity, participants can interact
with each other collectively and virtually for ensuring the conformation of purchased
product. Here, explicit knowledge in the form of purchasing documents, including require-
ments for approval of product and qualification of personnel is combined, edited or pro-
cessed to form synthetic knowledge in the form of results of the review purchasing
documents, such as the adequacy of specified purchase requirements.
Fourth, in production and service provision process, the organization can use production
and service provision planning as systemizing ba. In such activity, participants can interact
with each other collectively and virtually for production and service provision under con-
trolled conditions. Here, explicit knowledge in the form of design and development output
(design responsibility) or in the form of contract review records (production responsibil-
ity) is combined, edited or processed to form synthetic knowledge in the form of a product
realization plan, such as the availability of work instructions and the use of suitable
equipment.
Finally, in the process of measuring device control, the organization shall calibrate
devices at specified intervals. This activity can be used as exercising ba. Here, personnel
who conduct calibration can embody explicit knowledge written in documents, such as
acceptance criteria for calibration, to enrich their tacit knowledge base such as calibrating
skill.

Measurement, Analysis and Improvement

First, the organization can use internal audits as exercising ba. Here, auditors can embody
explicit knowledge written in documents such as audit criteria to enrich their tacit knowl-
edge base, such as auditing skill.
Second, the organization can use corrective action review as systemizing ba. In such
activity, participants can interact with each other collectively and virtually to determine
the action needed for eliminating the cause of non-conformities in order to prevent recur-
rence. Here, explicit knowledge in the form of records of the nature of non-conformities,
such as customer complaints, is edited or processed to form synthetic knowledge in the
form of records of the results of corrective action taken.
Finally, the organization can use preventive action review as systemizing ba. In such
activity, participants can interact with each other collectively and virtually to determine
the action needed for eliminating the cause of potential non-conformities in order to
prevent occurrence. Here, explicit knowledge in the form of records of the nature of poten-
tial non-conformities, such as characteristics and trends of processes and products, is
edited or processed to form synthetic knowledge in the form of records of the results of
preventive action taken.

Customer Perception
The organization shall obtain and analyse information of customer perception. This
activity can be used as dialoguing ba. Such activity is able to facilitate creative and essen-
tial dialogue about customer satisfaction among participants. Here, tacit knowledge about
668 C. Lin and C. Wu

customer perception, such as the difference between customer expectations and perception
is made explicit in the form of reports of customer satisfaction, such as product confor-
mity, delivery and after-sales service.
From the above discussion, we can conclude that the organization shall first communi-
cate with customers. At this originating ba, participants are able to accumulate tacit knowl-
edge about customer requirements through face-to-face interactions with customers.
Long-term experiences in communicating with customers give participants unique knowl-
edge of product preference, including customer requirements not stated by the customer
but necessary for specified or intended use. Second, the organization shall conduct con-
tract review as well as design and development planning. In this dialoguing ba, tacit
knowledge about the customer requirements is then converted into explicit knowledge
in the form of product-related knowledge that can be used for purchasing, production
and service provision activities. In the meantime, monitoring of customer perception
and evaluation of suppliers can promote the use of the above-mentioned dialoguing ba.
Since ISO 9000 demands clear identification of customer requirements, achieving this
means more contact with the customer, thus more feedback (Mcadam, 2001).
Third, the organization can use a series of activities including review, verification and
validation of design and development, purchasing documents review, product realization
planning, corrective and preventive action review, and management review as systemizing
ba. In these activities, product-related knowledge built in dialoguing ba can be converted
into more complex and systematic sets of explicit knowledge through the way that person-
nel involve, in documenting their work, procedures or technical manuals. Finally, the
organization uses training programmes, calibration of measuring devices, and internal
audits as exercising ba. In this ba, personnel can enrich their tacit knowledge through
the knowledge created at the above-mentioned systemizing ba. The critical element to
transfer the intangible or tacit knowledge asset towards value-added process is the
human resources residing in the organization (Heng, 2001). The gap that exists between
the necessary competence for personnel and their competence on hand then triggers a
new cycle of knowledge creation with the aim of identifying core competence in an
organization, since core competence can make a significant contribution to the perceived
customer benefits of the end product (Hax & Majluf, 1996).
Apart from that, knowledge assets largely make up the gap between market value and
book value of an organization (Talisayon, 2003). Varying the specific knowledge assets
within categories and allocations across categories affects an organizations performance
(Holsapple & Joshi, 2001). The knowledge created within ISO 9001 : 2000 can be categor-
ized into four types of knowledge assets as Nonaka et al. (2000) have proposed. First, the
knowledge creation opportunity, which requires record-keeping activity, will always
create a systemic knowledge asset. This kind of knowledge is the greatest part of the
knowledge assets within ISO 9001 : 2000; for example, management review, review, ver-
ification and validation of design and development. Secondly, conceptual knowledge
assets are created through interacting with the customers or suppliers, for example, con-
tract review, design and development planning about concept creation from customers,
evaluation of suppliers, and monitoring of customer perception. Thirdly, experimental
knowledge assets are created when learn by doing triggers the knowledge to become a
part of individuals tacit knowledge base, for example, internal audit, calibration of
measuring devices, and communication with customers. Finally, routine knowledge
assets are created, when the tacit knowledge such as customer perception or technical
 A Knowledge Creation Model for ISO 9001 : 2000 669

know-how is routinized and embedded in the actions and practices for carrying out day-to-
day quality management system by way of training programmes.

Conclusion
Since the publication of the ISO 9000 series in 1987, organizations in the manufacturing
sector as well as in service sector began to build their quality management systems and
tried to be registered in the directories of registered suppliers. To date over 330,000
series certificates have been awarded in nearly 150 countries worldwide (Stevenson &
Barnes, 2001). The increase of popularity of the standard may mean that the certification
will no longer provide a competitive advantage, but rather a means of survival (Poksinska
et al., 2002). Thus, an organization as a community of practice shall develop processes and
procedures to add value to inputs by transforming them into products, services and infor-
mation that are of particular benefit to its customers. In the meantime, in order to sustain
competitive advantage, it is the capability that is developed from knowledge and
especially context specific tacit knowledge that is embedded in complex organizational
routines and developed from experience that tends to be unique and difficult to imitate
(Sharkie, 2003). An ISO 9000 quality management system would shape the context of
its work as well as the work behaviours of its human resources. It also provides a ready
framework for ordering and structuring an organizations knowledge (Heng, 2001).
Knowledge creation focuses on generating new knowledge, whereas knowledge man-
agement emphasizes efficiency in using what we know. Success depends on the effective
pairing of knowledge creation and knowledge management (Bajaria, 2000). In this paper,
we illustrate a knowledge creation model for ISO 9001 : 2000. It is a comprehensive fra-
mework for researchers to conduct case studies to explore the knowledge management
activities in ISO 9001 : 2000.
In practical application, we explore the knowledge creation opportunities within ISO
9001 : 2000 and discuss the knowledge created within ISO 9001 : 2000. This architecture
offers an initial model for organizations that want to facilitate their knowledge flows in
ISO 9001 : 2000 and to further proceed with their knowledge management systems in
ISO 9001 : 2000.

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