Abstract
Industrial organizations are traditionally seen around a nucleus of large-scale mechanized facilities. In today's knowledge society, however, industrial organizations cannot be described sufficiently by mechanistic metaphors. Knowledge has become the decisive factor for corporate growth. It can be created through access to individuals' cumulative experience and wisdom. This paper proposes a model to describe industrial organizations as knowledge systems which communicate and evolve in accordance with their environments. Knowledge which has been previously unknown to an organization emerges out of the interplay of internalization, creation, distribution, and externalization of knowledge. The emergence of knowledge is seen as a self-organizing process, without intervention by the outside environment or an internal designer.
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