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The knowledge-creating company : how Japanese companies create the dynamics of innovation

TL;DR: In this article, Nonaka and Takeuchi argue that Japanese firms are successful precisely because they are innovative, because they create new knowledge and use it to produce successful products and technologies, and they reveal how Japanese companies translate tacit to explicit knowledge.
Abstract: How has Japan become a major economic power, a world leader in the automotive and electronics industries? What is the secret of their success? The consensus has been that, though the Japanese are not particularly innovative, they are exceptionally skilful at imitation, at improving products that already exist. But now two leading Japanese business experts, Ikujiro Nonaka and Hiro Takeuchi, turn this conventional wisdom on its head: Japanese firms are successful, they contend, precisely because they are innovative, because they create new knowledge and use it to produce successful products and technologies. Examining case studies drawn from such firms as Honda, Canon, Matsushita, NEC, 3M, GE, and the U.S. Marines, this book reveals how Japanese companies translate tacit to explicit knowledge and use it to produce new processes, products, and services.
Citations
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Journal ArticleDOI
TL;DR: In this paper, the authors investigated the importance of team member characteristics, particularly cognitive and demographic, on team effectiveness and which characteristics matter more in team activities, especially where labour turnover is high, such as in software development.
Abstract: The benefits of teams and teamwork are popular and propounded in management discourse. The use of this lexicon is based on beliefs in the resultant mutual gains for both organizations and individuals. Yet, are all teams, irrespective of the characteristics of membership composition, the same in terms of such beneficial outcomes? This study investigates the importance of team member characteristics, particularly cognitive and demographic, on team effectiveness and which characteristics matter more in team activities, especially where labour turnover is high, such as in software development. The Shared Mental Model is outlined and used as the representative construct for cognitive similarities; while age, tenure and gender are the demographic aspects used. From the relevant literature we develop a hypothesis and subject it to a range of tests based on empirical fieldwork using software development teams in South Korea. Our analysis shows that team effectiveness is more influenced by cognitive than demograph...

91 citations


Cites background from "The knowledge-creating company : ho..."

  • ...As Nonaka and Takeuchi (1995) argue regarding the conditions for knowledge-creating companies, severe diversity among group members may not be desirable....

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Journal ArticleDOI
TL;DR: In this article, a review of literature on collective learning and CoPs led to the development of a conceptual model, which was tested through case study research against empirical data from three groups in organizations.
Abstract: Purpose – The purpose of this research is to get a clear view on how can we judge groups in relation to the characteristics of a community of practice (CoP), and the presence of collective learning in these groups.Design/methodology/approach – A review of literature on collective learning and CoPs led to the development of a conceptual model, which was tested through case study research against empirical data from three groups in organizations.Findings – The groups differed concerning group characteristics, but also concerning the collective learning processes and learning outcomes present. The group that can be characterized as a CoP learns a lot, but the (learning) processes in the group are not always in favour of the organizational learning process.Research limitations/implications – The conceptual framework was helpful to evaluate the characteristics of CoPs in relation to collective learning. These findings suggest that it will be interesting to expand the model, for example with consideration to th...

91 citations


Cites background from "The knowledge-creating company : ho..."

  • ...Nonaka and Takeuchi (1995) emphasize that the key to knowledge creation lies in the mobilization and conversion of tacit knowledge....

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  • ...…of practice 299 involves the level of the individual at some point, the research presented in this article focuses on the collective learning processes in these groups, since collective learning is seen as a strong mechanism for organizational learning (Dixon, 1999; Nonaka and Takeuchi, 1995)....

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  • ...involves the level of the individual at some point, the research presented in this article focuses on the collective learning processes in these groups, since collective learning is seen as a strong mechanism for organizational learning (Dixon, 1999; Nonaka and Takeuchi, 1995)....

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  • ...Nonaka and Takeuchi (1995) describe a collective learning process with a knowledge creation cycle....

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  • ...Tacit knowledge nevertheless can be very powerful in learning and innovation processes (Nonaka and Takeuchi, 1995)....

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Journal ArticleDOI
TL;DR: A conceptual model of data quality problem solving is built that finds that experienced practitioners solve data quality problems by reflecting on and explicating knowledge about contexts embedded in, or missing from, data.
Abstract: Motivated by the growing importance of data quality in data-intensive, global business environments and by burgeoning data quality activities, this study builds a conceptual model of data quality problem solving. The study analyzes data quality activities at five organizations via a five-year longitudinal study. The study finds that experienced practitioners solve data quality problems by reflecting on and explicating knowledge about contexts embedded in, or missing from, data. Specifically, these individuals investigate how data problems are framed, analyzed, and resolved throughout the entire information discourse. Their discourse on contexts of data, therefore, connects otherwise separately managed data processes, that is, collection, storage, and use. Practitioners' context-reflective mode of problem solving plays a pivotal role in crafting data quality rules. These practitioners break old rules and revise actionable dominant logic embedded in work routines as a strategy for crafting rules in data quality problem solving.

91 citations


Additional excerpts

  • ...They include the research reported in [6, 9, 11, 17, 18, 27, 35, 36, 37, 42, 43, 44, 48, 56, 61, 68, 72, 83, 84]....

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Journal ArticleDOI
TL;DR: This paper presents a review on Knowledge Management performance measurement in the past two decades and proposes six new categories: traditional, advanced, deterministic, stochastic, general result oriented, and specific result oriented to complement the previous classification schemes.
Abstract: This paper presents a review on Knowledge Management (KM) performance measurement in the past two decades. Various tools and techniques that have been developed are discussed and presented chronologically to show how KM performance measurement has changed during this period. Each tool and technique is evaluated and classified based on the types of measures and approaches used. This paper also proposes six new categories: traditional, advanced, deterministic, stochastic, general result oriented, and specific result oriented, to complement the previous classification schemes. Future research directions for KM performance measurement are identified and presented in a holistic framework to act as a guideline for new researchers who wish to embark on this field.

91 citations


Cites background from "The knowledge-creating company : ho..."

  • ...These processes involve various activities that relate with tacit and explicit knowledge (Nonaka and Takeuchi, 1995; Davenport and Prusak, 1998; Civi, 2000; Hussain et al., 2004)....

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Journal ArticleDOI
TL;DR: In this paper, the authors suggest that leadership, creativity and innovation are knowledge systems which can be more closely integrated for improved theory and practice within communities of practice, and reveal nine overlapping themes, within each of which leadership plays a part in the production of creative insights or innovative productivity.
Abstract: Articles published in Creativity and Innovation Management volumes 1–9 (1991–2000) have been examined for their contributions to understanding of leadership as a process contributing to creativity and innovation. The study reveals nine overlapping themes, within each of which leadership plays a part in the production of creative insights or innovative productivity. However, for many authors, leadership remains an implicit factor within their models of change. We suggest that leadership, creativity and innovation are knowledge systems which can be more closely integrated for improved theory and practice within communities of practice.

91 citations

References
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Journal ArticleDOI
TL;DR: The objective of KMS is to support creation, transfer, and application of knowledge in organizations by promoting a class of information systems, referred to as knowledge management systems.
Abstract: Knowledge is a broad and abstract notion that has defined epistemological debate in western philosophy since the classical Greek era. In the past few years, however, there has been a growing interest in treating knowledge as a significant organizational resource. Consistent with the interest in organizational knowledge and knowledge management (KM), IS researchers have begun promoting a class of information systems, referred to as knowledge management systems (KMS). The objective of KMS is to support creation, transfer, and application of knowledge in organizations. Knowledge and knowledge management are complex and multi-faceted concepts. Thus, effective development and implementation of KMS requires a foundation in several rich literatures.

9,531 citations

Journal ArticleDOI
TL;DR: This research suggests that a knowledge infrastructure consisting of technology, structure, and culture along with a knowledge process architecture of acquisition, conversion, application, and protection are essential organizational capabilities or "preconditions" for effective knowledge management.
Abstract: A hallmark of the new economy is the ability of organizations to realize economic value from their collection of knowledge assets as well as their assets of information, production distribution, and affiliation. Despite the competitive necessity of becoming a knowledge-based organization, senior managers have found it difficult to transform their firms through programs of knowledge management. This is particularly true if their organizations have long histories of process and a tradition of business success. This research examines the issue of effective knowledge management from the perspective of organizational capabilities. This perspective suggests that a knowledge infrastructure consisting of technology, structure, and culture along with a knowledge process architecture of acquisition, conversion, application, and protection are essential organizational capabilities or “preconditions” for effective knowledge management. Through analysis of surveys collected from over 300 senior executives, this research empirically models and uncovers key aspects of these dimensions. The results provide a basis for understanding the competitive predisposition of a firm as it enters a program of knowledge management.

4,646 citations

Journal ArticleDOI
TL;DR: In this paper, the authors explore the nature of value co-creation in the context of service-dominant (S-D) logic and develop a conceptual framework for understanding and managing value cocreation.
Abstract: Central to service-dominant (S-D) logic is the proposition that the customer becomes a co-creator of value. This emphasizes the development of customer–supplier relationships through interaction and dialog. However, research to date suggests relatively little is known about how customers engage in the co-creation of value. In this article, the authors: explore the nature of value co-creation in the context of S-D logic; develop a conceptual framework for understanding and managing value co-creation; and utilize field-based research to illustrate practical application of the framework. This process-based framework provides a structure for customer involvement that takes account of key foundational propositions of S-D logic and places the customer explicitly at the same level of importance as the company as co-creators of value. Synthesis of diverse concepts from research on services, customer value and relationship marketing into a new process-based framework for co-creation provide new insights into managing the process of value co-creation.

3,114 citations

Journal ArticleDOI
TL;DR: In this paper, the authors examined how aspects of intellectual capital influenced various innovative capabilities in organizations and found that human, organizational, and social capital and their interrelationships selectively influenced incremental and radical innovative capabilities.
Abstract: We examined how aspects of intellectual capital influenced various innovative capabilities in organizations. In a longitudinal, multiple-informant study of 93 organizations, we found that human, organizational, and social capital and their interrelationships selectively influenced incremental and radical innovative capabilities. As anticipated, organizational capital positively influenced incremental innovative capability, while human capital interacted with social capital to positively influence radical innovative capability. Counter to our expectations, however, human capital by itself was negatively associated with radical innovative capability. Interestingly, social capital played a significant role in both types of innovation, as it positively influenced incremental and radical innovative capabilities. It is widely accepted that an organization’s capability to innovate is closely tied to its intellectual capital, or its ability to utilize its knowledge resources. Several studies have underscored how new products embody organizational knowledge (e.g., Stewart, 1997), described innovation as a

3,008 citations

Journal ArticleDOI
TL;DR: In this article, the authors outline a perspective on knowing in practice which highlights the essential role of human action in knowing how to get things done in complex organizational work and suggest that the competence to do global product development is both collective and distributed, grounded in the everyday practices of organizational members.
Abstract: In this paper, I outline a perspective on knowing in practice which highlights the essential role of human action in knowing how to get things done in complex organizational work. The perspective suggests that knowing is not a static embedded capability or stable disposition of actors, but rather an ongoing social accomplishment, constituted and reconstituted as actors engage the world in practice. In interpreting the findings of an empirical study conducted in a geographically dispersed hightech organization, I suggest that the competence to do global product development is both collective and distributed, grounded in the everyday practices of organizational members. I conclude by discussing some of the research implications of a perspective on organizational knowing in practice.

2,670 citations