Given that knowledge creation is a complex and fuzzy process, the main role of the organization is to provide the proper context for facilitating group activities as well as the creation and accumulation of knowledge at the individual level. The following five conditions [13] are considered as requirements in promoting the knowledge creation spiral described in Figure 1.3 (2) above:

 Intention: The level of organizational aspiration to its goals is a driver of the knowledge spiral. Within business settings the efforts to achieve the goals usually take the form of a strategy. From the viewpoint of organizational knowledge creation, the essence of strategy lies in developing the organizational capability to assure, create, accumulate and exploit knowledge. The most critical element of a corporate strategy is to create a clear vision about what kind of knowledge should be developed and to effectively implement that vision in practical terms. This process is referred in management literature as strategy operationalisation. This refers to the process required for a strategy to be transformed from a vision or a documented plan into real everyday actions with concrete and measurable results. In a KM context this process implies the conversion of strategic KM visions and goals into decisions and practices at an operational level. Given that knowledge is very context specific, the operationalisation of KM strategy could also be referred to as KM customisation reflecting existing organisational structure, culture, staffing issues, business operations, products and customers.

 Autonomy: Autonomy is the second condition for promoting the knowledge spiral. It increases the motivation of individuals to create new knowledge or original ideas. By allowing individuals and groups to act autonomously the organization may increase the possibility of introducing unexpected opportunities. Self-organized teams serve as a basis in Japanese innovation creation.

 Fluctuation and creative chaos: Fluctuation (breakdown of routines, habits, etc.) and ‘creative chaos’ increase tension and focus attention on defining problems and resolving crises. They promote the knowledge spiral by strengthening the subjective commitment of individuals as well as stimulation of interaction with the external environment. Fluctuation and creative chaos act as a trigger for individual members to change their fundamental ways of thinking and challenge existing concepts. They also help to externalize their “hidden” tacit knowledge.

 Redundancy: In business organizations, redundancy refers to intentional overlapping of information between employees and departments, etc. about various business activities, management responsibilities and the company as a whole. It is characterized by the existence of information that goes beyond the immediate operational or functional requirements of specific organizational members. This does not mean that this knowledge is not useful. Rather, it helps speed up the knowledge creation process through sharing of extra information. It is important at the concept development stage where certain employees, functions or departments have information and knowledge beyond their own functional boundaries, e.g. on other areas of the organisation. This “external” information and knowledge can help them generate additional creative and innovative capacity. Redundancy of information enables staff to contribute to dialogues more actively and to clearly justify their ideas using widely known corporate business terms or company jargon. In addition, redundancy of information supports smooth corporate hierarchy alterations. This is crucial for organisations with high employee turnover and where there is a resultant risk of sudden and frequent loss of tacit knowledge. Job rotation is a way of incorporating the benefits of redundancy.

 Required variety: An organizations internal diversity should match the variety and complexity of the environment. Providing equal access to information within the organization supports the exchange of different viewpoints and interpretations of new information. Organizational members can cope with many unexpected events if they have a variety of information and experience. This variety can be enhanced by combining information differently, flexibly and quickly [13].