Illuminating the VorteX between the Tacit and the Explicit: Bridging the Knowledge Gap in High-Value Low-Frequency Transactions

Abstract

Asymmetric information within a transaction can harm a stakeholder who is not aware of the disparity of the information provided. Understanding the relationship and interactions between stakeholders in a transaction is imperative in making an informed decision. This is of vital importance in high-value lowfrequency transactions (HVLFT), where there is knowledge asymmetry between the buyer and seller. This paper delves into the different forms of knowledge that are essential to support transactions. The different forms of such knowledge (data, information, knowledge, wisdom, understanding, experience, and/or learning) that is neither tacit nor explicit, we define as belonging to knowledge dimension X. We explore the transformations of the different dimensions of knowledge at the disruptive nexus/vortex between the tacit, explicit, and X. Through a study of knowledge asymmetry among stakeholders of HVLFT in the real estate industry, we have validated the interactions between these three dimensions of knowledge.