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The "community of practitioners" is a knowledge management method that is widely accepted and popular today. Implementing a knowledge management is used for the study of intellectual capital and lessons learned for good practice to as a community of practice, it will be beneficial for community development in Thailand. This paper presents the results of knowledge management and the lesson learned of the community of practice, who produces a creative cultural handicraft products that follows best practices in Chiang Mai of Thailand i.e. Muang Sat Community at Muang district in Chiang Mai. Data gathering administered with key informants of 35 person as philosophers, religious leader, community leader, producers, sellers and successors by interview and focus group. The sample was selected by purposive sampling. Results of the study revealed that (1) The outstanding intellectual capital of the community is the wisdom of Lanna culture, such as Kom (lanterns), Tung (flags), rice knitting etc. It has become a famous community of cultural goods to date. (2) Knowledge management by rituals through conservation and inherit process by saying, demonstration, real execution, using modern media, taking notes, and also organized the community learning center including made local curriculum, and Art and Culture center of Muang Sat. It starts with the family and extends to the community, students, and the general public, as well as foreigners. (3) The success factor of the community of practice is to preserve original patterns and models while also creating new patterns and models for added to the value in order to using for festivals, places, and in generation rituals
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