Tax Explicit Knowledge Creation: Application of Combination Mode of Socialization, Externalization, Combination, and Internalization Model

Abstract

Theory and practice have proven that tax knowledge can improve tax administration and revenue performance. The objective of this study is to explain the activities employed in combination mode of Socialization, Externalization, Combination, and Internalization (SECI) model to convert explicit knowledge to a more sophisticated, systematic, and complex explicit knowledge in tax administration. Based on face-to-face interview, qualitative data were collected from 20 tax administrators at Federal Inland Revenue Service (FIRS) Abuja, Nigeria. Stratified random sampling technique was used to select the 20 tax administrators among the five groups (domestic taxes, modernization, corporate development, compliance & enforcement), and the three cadres (directorate, managerial & officer) in FIRS. Semistructured, and open-ended interview questions were used to guide the face-to-face interview. A smart voice recorder was used to record the interview, and NVivo 10 qualitative software employed to analyze the data. Also, data were collected from national tax policy and compendium of tax related laws documents to validate the face-to-face interview data. The interview data were analyzed thematically via NVivo 10 qualitative software. The process of analysis involved identification of themes, coding, and report based on objective of the study, and statements of the participants. Two main themes identified were reformulation and update. In addition, sub-themes associated with reformulation were reports, operation manual, and files. In the same vein, operation manual, and database were connected to update. Finding from data collection revealed reformulation and update of knowledge as combination activities that can convert explicit knowledge to a more sophisticated, systematic, complex, and efficient explicit tax knowledge. This study recommends that tax administration should reformulate, and update its operation manual, reports, files, and database regularly to create efficient explicit tax knowledge in order to improve tax administration and revenue performance.