How have Japanese companies become world leaders in the automotive and electronics industries, among others? What is the secret of their success? Two leading Japanese business experts, Ikujiro Nonaka and Hirotaka Takeuchi, are the first to tie the success of Japanese companies to their ability to create new knowledge and use it to produce successful products and technologies. In The Knowledge-Creating Company, Nonaka and Takeuchi provide an inside look at how Japanese companies go about creating this new knowledge organizationally. The authors point out that there are two types of knowledge: explicit knowledge, contained in manuals and procedures, and tacit knowledge, learned only by experience, and communicated only indirectly, through metaphor and analogy. U.S. managers focus on explicit knowledge. The Japanese, on the other hand, focus on tacit knowledge. And this, the authors argue, is the key to their success--the Japanese have learned how to transform tacit into explicit knowledge. To explain how this is done--and illuminate Japanese business practices as they do so--the authors range from Greek philosophy to Zen Buddhism, from classical economists to modern management gurus, illustrating the theory of organizational knowledge creation with case studies drawn from such firms as Honda, Canon, Matsushita, NEC, Nissan, 3M, GE, and even the U.S. Marines. For instance, using Matsushita's development of the Home Bakery (the world's first fully automated bread-baking machine for home use), they show how tacit knowledge can be converted to explicit knowledge: when the designers couldn't perfect the dough kneading mechanism, a software programmer apprenticed herself withthe master baker at Osaka International Hotel, gained a tacit understanding of kneading, and then conveyed this information to the engineers. In addition, the authors show that, to create knowledge, the best management style is neither top-down nor bottom-up, but rather what they call "middle-up-down," in which the middle managers form a bridge between the ideals of top management and the chaotic realities of the frontline. As we make the turn into the 21st century, a new society is emerging. Peter Drucker calls it the "knowledge society," one that is drastically different from the "industrial society," and one in which acquiring and applying knowledge will become key competitive factors. Nonaka and Takeuchi go a step further, arguing that creating knowledge will become the key to sustaining a competitive advantage in the future. Because the competitive environment and customer preferences changes constantly, knowledge perishes quickly. With The Knowledge-Creating Company, managers have at their fingertips years of insight from Japanese firms that reveal how to create knowledge continuously, and how to exploit it to make successful new products, services, and systems.

The knowledge-creating company

Organizational climate and organizational culture theory and research are reviewed. The article is first framed with definitions of the constructs, and preliminary thoughts on their interrelationships are noted. Organizational climate is briefly defined as the meanings people attach to interrelated bundles of experiences they have at work. Organizational culture is briefly defined as the basic assumptions about the world and the values that guide life in organizations. A brief history of climate research is presented, followed by the major accomplishments in research on the topic with regard to levels issues, the foci of climate research, and studies of climate strength. A brief overview of the more recent study of organizational culture is then introduced, followed by samples of important thinking and research on the roles of leadership and national culture in understanding organizational culture and performance and culture as a moderator variable in research in organizational behavior. The final section of the article proposes an integration of climate and culture thinking and research and concludes with practical implications for the management of effective contemporary organizations. Throughout, recommendations are made for additional thinking and research.

Organizational Climate and Culture

Knowledge sharing: A review and directions for future research

Knowledge Management

What makes organizations so similar? We contend that the engine of rationalization and bureaucratization has moved from the competitive marketplace to the state and the professions. Once a set of organizations emerges as a field, a paradox arises: rational actors make their organizations increasingly similar as they try to change them. We describe three isomorphic processes-coercive, mimetic, and normative—leading to this outcome. We then specify hypotheses about the impact of resource centralization and dependency, goal ambiguity and technical uncertainty, and professionalization and structuration on isomorphic change. Finally, we suggest implications for theories of organizations and social change.

The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields (Chinese Translation)

Integrating the strategic human resource management research with the multiple-stakeholder view of organizational climate, in this study we propose that the human resource management practices of a high-performance work system enhance a business unit's market performance in the service context by facilitating 2 types of strategically targeted organizational climate: concern for customers and concern for employees, which further encourage employees to engage in cooperative behaviors with customers (service performance) and coworkers (helping behavior) that are essential in achieving superior market performance. The results based on the data collected from multiple sources of 133 stores in Taiwan in 2 phases largely supported the proposed theoretical framework and shed light on the influence mechanism of high-performance work system on organizational effectiveness in the service context.

Strategic human resource management in service context: taking care of business by taking care of employees and customers

Can Knowledge-Intensive Teamwork Be Managed? Examining the Roles of HRM Systems, Leadership, and Tacit Knowledge

Building on the resource-based view of the firm and complex systems theory, we argue that the effective utilization of knowledge-intensive teamwork (KITwork) can be a source of sustained competitive advantage for firms that pursue a variety of strategies and compete in a variety of industries. KITwork is a multi-dimensional, multi-level social process that promotes knowledge flows within and between organizations. Through KITwork, the knowledge resources of individual employees are transformed into a capability that contributes to the effectiveness of knowledge-based organizations. After introducing and explaining the concept of KITwork, we explore the challenges that organizations must address in order to design HRM systems that support and facilitate KITwork.

Toward Developing Human Resource Management Systems for Knowledge-Intensive Teamwork

This study theorized and examined the influence of the interaction between Service-Oriented high-performance work systems (HPWSs) and service leadership on collective customer knowledge and service climate. Using a sample of 569 employees and 142 managers in footwear retail stores, we found that Service-Oriented HPWSs and service leadership reduced the influences of one another on collective customer knowledge and service climate, such that the positive influence of service leadership on collective customer knowledge and service climate was stronger when Service-Oriented HPWSs were lower than when they were higher or the positive influence of Service-Oriented HPWSs on collective customer knowledge and service climate was stronger when service leadership was lower than when it was higher. We further proposed and found that collective customer knowledge and service climate were positively related to objective financial outcomes through service performance. Implications for the literature and managerial practices are discussed.

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Developing collective customer knowledge and service climate: The interaction between service-oriented high-performance work systems and service leadership.

Purpose – The purpose of this paper is to examine the effect of individual‐based, firm‐based, and market factors on job retention, basing its hypotheses on human capital theory and signaling models.Design/methodology/approach – By collecting secondary data on 180 employees who left their jobs at one firm and interviewing human resource managers and those who left for other jobs, factors determining the decision to stay with a firm for a certain period were investigated. Hierarchical regression analyses were performed to test hypothesized relationships.Findings – Marriage, gender, honored employee status, relative pay (both inter‐firm and intra‐firm wages), speed of promotion, and economic cycles had a significant impact on how long the employees retained their jobs, but education level and individual performance did not. Firm‐specific human capital, wages, and signaling effects were proved to affect job retention. Firm‐based factors had a significantly more pronounced impact on the ultimate decision than ...

Chih-Hsun Chuang

Papers

Strategic human resource management in service context: taking care of business by taking care of employees and customers

Can Knowledge-Intensive Teamwork Be Managed? Examining the Roles of HRM Systems, Leadership, and Tacit Knowledge

Toward Developing Human Resource Management Systems for Knowledge-Intensive Teamwork

Developing collective customer knowledge and service climate: The interaction between service-oriented high-performance work systems and service leadership.

Constructing factors related to worker retention