One of the classic papers in knowledge management from one of the central researchers in the field. Paper discusses how knowledge is created by individuals but how it can be amplified in organizations. Paper also presents the basic modes of knowledge creation: socialization, externalization, internalization and combination. Interesting point made by the author is that problem solution is not just about combining information but constructing the problem to be solved from the knowledge available. As a policy to support knowledge creation, the author proposes organizing work so that people can shift efficiently between self-organizing communities and teams within organizational hierarchy.