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Because of the scarcity of research on knowledge internalization, a powerful means for acquiring tacit knowledge which is an intellectual asset critical to sustainable competitive advantage of an organization, this study develops a construct of knowledge internalization and examines its nomological validity. We define knowledge internalization as the process in which an individual relies on various cognitive mechanisms to transform his or her declarative knowledge into actionable procedural knowledge. Analyzing data collected from 259 knowledge workers, we found that knowledge internalization is a second‐order formative construct comprising organization and structure, mental models, efficiency, automaticity, and metacognition dimensions. The effect of knowledge internalization on intention to share knowledge is fully mediated by expert power and knowledge self‐efficacy. The effect of knowledge internalization on expert power is partially mediated by knowledge self‐efficacy. This study contributes to the literature by offering an elaborated construct of knowledge internalization and establishing its nomological validity in the knowledge sharing phenomenon. The developed measure of knowledge internalization can be tailored to assess employees' tacit knowledge in organizations. Copyright © 2016 John Wiley & Sons, Ltd.

The theoretical and practical impact of dynamic capabilities on organizational performance remains elusive. This study investigates the mediating role of a firm’s dynamic capabilities, measured by IT capability and environmental scanning. In addition, by proposing that knowledge management (KM) strategies play a crucial moderating role in the relationships between entrepreneurial orientation (EO), dynamic capabilities, and organizational performance, this study highlights the need for effective KM strategies to maximize organizational performance. A questionnaire was administered to Korean managers who understand and can answer overall characteristics of their organizations. Our study found that dynamic capabilities partially mediated the relationship between EO and organizational performance. In addition, our findings show that the relationship between EO and organizational performance is stronger when firms emphasize personalization KM strategies, while the firms focusing on codification KM strategies demonstrate a stronger relationship between IT capability and organizational performance.

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