Roughly translated, Ba means place .
Ba is a time and space where creative energy flows, existing knowledge is shared and new knowledge is created. Through their interactions with one another and the environment, people become attuned to the context of ba and they’re able to look beyond their own limited perspective. They view problems as opportunities to learn, and they’re inspired to be creative and to develop innovative solutions.
Here’s an extract from one of the case studies in Hititsubashi on Knowledge Management 
Seven-Eleven Japan uses the shop floors of its stores as ba to create knowledge, where store employees accumulate tacit knowledge abut customers’ needs through face-to-face interactions. Long-term experiences in dealing with customers give store employees unique knowledge and insight into the local market and their customers. They often say that they can just ‘see’ or ‘feel’ how well certain items will sell in their stores, although they cannot explain why. Seven-Eleven Japan emphasises the importance of its stores as ba to keep creating knowledge in order to adapt to ever-chaing customers needs.Ba happens spontaneously, but it’s possible to supply the necessary conditions that allow ba to occur naturally: Autonomy, self-organisation , creative chaos, and diversity. An informative workspace provides a physical space that facilitates collaboration and encourages interaction between people. While a mental space transpires from the reciprocating trust and commitment felt among the people present, and from their common values and goals.
References:
[1] Hititsubashi on Knowledge Management
[2] The courage to be creative
