Because the lack of consensus on defining knowledge, coupled with its associated knowledge iceberg phenomenon, is a key barrier to effectively managing dispersed knowledge in the Internet-driven cross-cultural business model (CBM), we synthesised an ontological and epistemological understanding with the view of existential phenomenology, proposing a “dynamic hierarchical system of knowledge” and three primary knowledge iceberg archetypes as metaphors of cognitive variances in this context. Theoretically, this integrative perspective enriches the philosophical grounds of knowledge by transcending individual subjectivity to achieve a universal understanding of the objectivity of knowledge, thus contributing to the literature at the intersection of international business and knowledge management domains. It also responds to the calls for addressing larger, urgent problems by associating the social phenomena of reality to theoretical development. From a practical standpoint, this research is instrumental in enabling international leaders and managers to identify the cultural impediments to fulfilling their knowledge management objectives in CBMs.