This article explores some imperatives of Knowledge Management for organizational knowledge creation in the era of globalization. As the transformation of Knowledge Management practices of Japanese firms in 1990s shows, Nonaka and TakeuchVs original model of organizational knowledge creation needs to be expanded by incorporating the concept of “community of practice” as the “engine” of knowledge creation. As an attempt for such expansion, it proposes a model of knowledge-creating organization as a self-organizing network of interactive, overlapping, and self-managing communities of practice.