This paper challenges the popular notions of tacit and explicit organizational knowledge and argues that its philosophical underpinnings derived from Gilbert Ryle are problematic due to their logical behaviourist perspective. The paper articulates the philosophical problem as the neglect of any role for the mind in organizational activity and the representation of mental activity as purely a set of behaviours. An alternative realist philosophy is advanced taking into account the potential of adopting a number of competing philosophical perspectives. The paper forwards a realist theory of organizational knowledge that moves beyond the surface behaviours of tacit and explicit knowledge and argues that collective consciousness and organizational memory play primary and deeper roles as knowledge processes and structures. Consciousness is not a Hegelian world spirit but rather a real process embedded in people's brains and mental activity. Further, the paper argues that organizational routines provide the contingent condition or `spark' to activate organizational knowledge processes. The implications of this model are explored in relation to the measurement of intellectual capital. The theory developed in this paper represents the first attempt to provide a coherent philosophically grounded framework of organizational knowledge that moves organizational theory beyond neat conversion processes of tacit and explicit knowledge.
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