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In the last decades, there has been an increasing interest on knowledge in the business realm. Japanese scholar Ikujiro Nonaka was among the main theoretical and practical contributors to knowledge creation in organizations, as well as a promoter of including practical reason in the research of business topics such as decision-making, knowledge management, ethics and leadership. In his theory, a Western classical tradition, namely the virtue of phronesis, is combined with the Japanese notion of Ba (context-based learning), to explain the way people engage in communities of practice as opportunities for learning. This paper describes his theory of knowledge creation, pointing to phronetic leadership skills as essential drivers of knowledge creation in organizations, in light of the Western classical tradition. Finally, it discusses the scope and limits of Nonaka's contribution, as well as some challenges it posits in order to make the business realm a true space for learning and human flourishing. [ABSTRACT FROM AUTHOR]