The ideas of knowledge management, competence strategy and learning organisation have been dominating debates on organisational behaviour and management recently. This article argues that most contributions to this debate are based on a quite naive conception of knowledge and competencies. One important problem is the neglect of tradition. Through an analysis of the conventional views of knowledge and competencies and through a rehabilitation of tradition the article shows how tradition can provide us with another conception of knowledge management and related ideas. Two case studies from small Danish manufacturing companies are presented in order to show how tradition functions even in the most modem organisations.