Posted by Mezei on September 22, 2002 at 19:09:28:

In Reply to: Re: accounts receivable = tacit knowledge & accounts payable = explicit knowledge posted by Carol on September 22, 2002 at 16:37:16:

OK, so A/R is monied owed to you. This would represent explicit knowledge, or 'knowledge made explicit'. Knowledge made explicit represents tangible ideas, products or services that can be sold for profit.

A/P is monied owed to others, so this represents tacit knowledge. Tacit knowledge is an idea. An idea is going to cost you money in order to make this idea into a tangible product or service. If you just want to 'sell' the idea (for a better mousetrap), its still going to cost something to copyright, patent etc. That's why A/R is tacit knowledge.

The point being that the ledger of the business is really an accounting of our tacit and explicit knowledge. The end result at the end of the fiscal year is profit, or intellectual 'capital', the monies left over from this interexchange of tacit and explicit knowledge.

Because in effect, profit is generated by the production and exchange of both tacit and explicit knowledge. That's why its called intellectual capital, because its the byproduct of knowledge.

Don Mezei

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• Re: accounts receivable = tacit knowledge & accounts payable = explicit knowledge Mezei 19:17:33 09/22/02 (0)

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