Abstract

Tacit knowledge is an asset which plays a key role in the global competition, especially in improving the organization's competitive advantage. Most of tacit knowledge is kept by an individual. Competitive advantage determines the competitive position of the organization from its competitors. By optimizing the existing tacit knowledge, every individual in the organization achieves optimum competitive advantage. The main objective of this research is to analyze the correlation between individual tacit knowledge and the organization's competitive advantage. Tacit knowledge, competitive advantage and individual target are the constructs or latent variables that will be analyzed. The results of this research show that every indicator in each constructs have a good validity, reliability and significance level and indicates that the tacit knowledge of every individual in the organization needs to be considered by the organization to achieve its optimum competitive advantage.

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