Purpose: This study aimed to explain the process of formation of “purposeful atrophy of knowledge assets” in organizations under polycrisis conditions and to develop its paradigmatic model based on the grounded theory approach.

Methodology: This qualitative study employed the Strauss and Corbin grounded theory approach. Data were collected through 16 semi-structured interviews with managers and experts from Public and private organizations using purposive and theoretical sampling until theoretical saturation was achieved. The data were analyzed using Atlas.ti through three stages of open, axial, and selective coding. The validity of the findings was confirmed using trustworthiness criteria and Cohen’s kappa coefficient (0.709).

Results: The findings showed that intentional atrophy of knowledge assets under polycrisis conditions leads to selective prioritization of knowledge. Strategies such as dynamic investment and preservation of critical knowledge were identified, while the continuation of this process results in knowledge portfolio misalignment and organizational capability fragility.

Discussion: The results indicated that knowledge asset atrophy under polycrisis conditions is a selective process shaped by the simultaneity of crises. By concentrating resources on critical knowledge, organizations reduce the capabilities of some low-priority knowledge assets. Therefore, knowledge management requires decisions regarding which knowledge should be preserved, reproduced, recombined, or gradually weakened.

Conclusion: The study showed that intentional atrophy of knowledge assets is a process-oriented and selective phenomenon that, under polycrisis conditions, leads to knowledge portfolio reconfiguration and the weakening of organizational capabilities. The innovation of this study lies in conceptualizing this phenomenon and developing a paradigmatic model to explain its underlying mechanism.