Knowledge Levels and their Transformation: Towards the Integration of Knowledge Creation and Individual Learning*

abstract This paper shows the link between knowledge creation and individual learning, and the coherence that exists between the knowledge creation view and single and double‐loop learning models. It does so by examining differences in levels of knowledge and their relationship with creativity and knowledge creating behaviours. The analysis shifts the focus from the abstract notion of tacit knowledge to a more specific discussion on creative human cognition. The paper is unique in adopting an endogenous perspective to the analysis of individual learning. The analysis is distinct from previous discussions on knowledge creation in three ways: (a) explicit and tacit knowledge are analysed in terms of the nature and degree of inter‐dependence that exists between the two; (b) knowledge levels are defined in terms of their applications rather than as abstract concepts; and (c) a distinction is made between shifts and movements in knowledge to separate, and subsequently integrate, the information processing and creative dimensions of learning. Further, the paper highlights specific challenges and limitations/costs that are associated with the transfer/acquisition of knowledge levels, and argues that in the absence of a conscious effort, knowledge levels are acquired through mistakes and failures. Following that, various theoretical and managerial implications to facilitate knowledge creation are discussed.