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

Emotion and Adaptation

Knowledge Management

Models that depict innovation as a smooth, well-behaved linear process badly misspecify the nature and direction of the causal factors at work. Innovation is complex, uncertain, somewhat disorderly, and subject to changes of many sorts. Innovation is also difficult to measure and demands close coordination of adequate technical knowledge and excellent market judgment in order to satisfy economic, technological, and other types of constraints—all simultaneously. The process of innovation must be viewed as a series of changes in a complete system not only of hardware, but also of market environment, production facilities and knowledge, and the social contexts of the innovation organization.

An Overview of Innovation

Inside the Black Box: Technology and Economics

Knowledge-based human resource management practices, intellectual capital and innovation☆

Purpose – The aim of this paper is to test empirically the degree of influence of different knowledge‐sharing mechanisms on the innovation capability of firms, as well as to analyse the degree of relevance of each innovation capability dimension to value creation. Additionally, the role of technology intensity as a moderator variable of the aforementioned relationships is examined.Design/methodology/approach – An ad hoc questionnaire was designed and addressed to the CEOs of the companies making up the target population of the research (Spanish manufacturing firms with more than 50 employees and R&D activities). Structural equation modeling (SEM) based on partial least squares (PLS) was then applied in order to test the main hypotheses of the research.Findings – The results obtained show that knowledge sharing is a key issue in order to enhance the innovation capability of firms. Nevertheless, depending on the innovation capability dimension being considered and on the technology intensity of the firm, th...

Knowledge sharing and innovation performance

Purpose – The aim of this paper is to empirically test the degree of influence of different knowledge sharing mechanisms (ICT‐based, personal interaction‐based, and embedded in management processes) on innovation capability (both on ideation and on innovation project management), as well as the influence of each first‐level innovation capacity on company performance.Design/methodology/approach – A questionnaire was designed and addressed to the CEOs of the companies making up the target population (Spanish and Colombian medium‐high and high technology firms with more than 50 employees and R&D activities). Structural equation modelling (SEM) based on partial least squares (PLS) was then applied to test the hypotheses drawn from the research.Findings – The results obtained show that knowledge sharing is a key issue in order to enhance innovation capability. With the exception of ICT‐based knowledge sharing mechanisms (whose influence on the generation of new ideas is not statistically significant), all type...

Knowledge sharing and innovation in Spanish and Colombian high‐tech firms

Despite the increasing interest in emotions at work, there is still a need for more research that focus on the antecedents of emotions in organizational change contexts. Moreover, literature on the subject considers leadership and trust to be fundamental when dealing with change processes. Taking into account both ideas, it is proposed here that authentic leadership (AL) perception can influence followers’ trust and emotions during change. To test these hypotheses, we gathered and analyzed the experience of 102 Spanish human resource managers using structural equation modeling based on partial least squares. Findings show that AL is directly and positively related to followers’ trust in the leader and the experience of positive emotions. Furthermore, we found that trust mediates the relation between AL perception and the experience of negative emotions. Based on these findings, some practical implications are proposed, such as the implementation of training initiatives in order to provide human resource m...

Authentic Leadership Perception, Trust in the Leader, and Followers’ Emotions in Organizational Change Processes

The purpose of this paper is to provide guidance to SMEs to sense and seize digitally enabled growth opportunities as well as start a project-based learning process to transform the organization in order to remain competitive in turbulent environments.,The proposed framework is nurtured from a dynamic capabilities approach as well as from digital transformation studies and mitigates shortcomings of existing frameworks on IT-enabled business transformation. A pilot study has also been carried out for testing the proposed framework.,The results of the pilot study show that the framework is well understood by SME owners or managers and contributes to a comprehensive perception of digitalization challenges and potentials. The overall maturity level of the 52 companies analyzed is moderate. Firms are better at “sensing” than “seizing”, that is, at identifying digitally based growth opportunities than in profiting from them. The test of the proposed framework also contributes to its further adjustment and refinement.,The developed framework is useful for owners and managers of SMEs as a self-assessment of digital maturity. It sets a baseline regarding the current position and supports coordinated initiatives for digitally enabled growth.,Few frameworks regarding digital maturity have been developed. Most of them lack a sound theoretical foundation and are less suited to the needs of SMEs. There are few studies on digitalization in SMEs and they are not focussed on capabilities development but mostly on processes (Trung Pham 2010; Blatz et al., 2018; Mittal et al., 2018). Therefore, the originality of this paper is to propose a framework that allows SMEs to assess their digital maturity level and the capabilities associated with each level to enhance digitally enabled growth, contributing to expand the research on the relationship between dynamic capabilities and digitalization (Teece, 2017).

Nekane Aramburu

Papers

Knowledge-based human resource management practices, intellectual capital and innovation☆

Knowledge sharing and innovation performance

Knowledge sharing and innovation in Spanish and Colombian high‐tech firms

Authentic Leadership Perception, Trust in the Leader, and Followers’ Emotions in Organizational Change Processes

Promoting digitally enabled growth in SMEs: a framework proposal