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The ubiquitous information society gave birth to quasi‐explicit, or formative, knowledge. Formative knowledge is like explicit knowledge in that it can be copied, but unlike explicit knowledge because it is not fixed. Some manufacturers are beginning to adopt approaches to knowledge management that rely on formative knowledge. Such an approach enabled Honda to start production of its newest Civic model almost simultaneously at 12 plants around the globe in 2000. Strong fear of formative knowledge “consumption” by lead consumers made Honda use CAD/CAE networks to nurture a worldwide community of engineers to design the Civic. This innovation reduced Honda’s average model transfer time to about a half that of Toyota. Honda’s achievement suggests that a new approach to knowledge management is possible, one that lies between Japanese‐style knowledge management centered on human mediation and tacit knowledge and Western‐style knowledge management based on information technology and explicit knowledge.

Among the master social processes occurring in the modern world have been increased individualization, on the one hand, and the growth of largescale organizations, on the other. Unlike most scholars, who emphasize either one or the other, we focus attention upon certain strategic interrelationships between these master processes. We are thus addressing a fundamental sociological issue while at the same time taking development theorizing in a somewhat new direction.