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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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Book ChapterDOI
17 Jun 2004
TL;DR: The Knowledge Modeler Description Language KMDL can be used to formalize knowledge-intensive processes with a focus on certain knowledge-specific characteristics and to identify weak points in these processes.
Abstract: Knowledge processes and business processes are linked together and should be regarded together, too. Business processes can be modeled and analyzed extensively with well known and established methods. The simple signs of static knowledge does not fulfill the requirements of a comprehensive and integrated approach of process-oriented knowledge management. The Knowledge Modeler Description Language KMDL is able to represent the creation, use and necessity of knowledge along common business processes. So KMDL can be used to formalize knowledge-intensive processes with a focus on certain knowledge-specific characteristics and to identify weak points in these processes. For computer-aided modeling and analyzing the tool K-Modeler is introduced.

82 citations

Book ChapterDOI
TL;DR: In this paper, three approaches are discussed for modeling the diffusion of ideas in the areas of science and technology, through deterministic, stochastic, and statistical approaches, illustrated through their corresponding population dynamics and epidemic models relative to the spreading of ideas, knowledge and innovations.
Abstract: The diffusion of ideas is often closely connected to the creation and diffusion of knowledge and to the technological evolution of society. Because of this, knowledge creation, exchange and its subsequent transformation into innovations for improved welfare and economic growth is briefly described from a historical point of view. Next, three approaches are discussed for modeling the diffusion of ideas in the areas of science and technology, through (i) deterministic, (ii) stochastic, and (iii) statistical approaches. These are illustrated through their corresponding population dynamics and epidemic models relative to the spreading of ideas, knowledge and innovations. The deterministic dynamical models are considered to be appropriate for analyzing the evolution of large and small societal, scientific and technological systems when the influence of fluctuations is insignificant. Stochastic models are appropriate when the system of interest is small but when the fluctuations become significant for its evolution. Finally statistical approaches and models based on the laws and distributions of Lotka, Bradford, Yule, Zipf–Mandelbrot, and others, provide much useful information for the analysis of the evolution of systems in which development is closely connected to the process of idea diffusion.

82 citations


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

  • ...Science landscapes Decisions about personal development and promotion Verhulst Description of a large class of Logistic curve growth processes Broadcasting model Understanding the influence of mass of technology diffusion media on technology diffusion Understanding the influence of Word-of-mouth…...

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Journal ArticleDOI
TL;DR: In this article, a reorientation for the use of the concept of knowledge within management studies is proposed, which makes discursive examination a central part of the notion of knowledge.
Abstract: In this article we attempt to provide some reorientation for the use of the concept of knowledge within management studies. The point of departure is the striking discrepancy between the great importance nowadays attributed to knowledge (knowledge economy, knowledge resources, knowledge societies, knowledge-intensive firms, etc.) on the one hand and the vague and blurring conceptualizations of knowledge on the other hand. Informed by philosophy of science a revised concept of knowledge is suggested that basically draws on communication and reflection. The core idea is that knowledge should be treated as a distinctive term which allows for a differentiation between knowledge and non-knowledge. The suggested concept therefore makes discursive examination a central part of the notion of knowledge. In the final part we attempt to demonstrate the possible benefi ts of such re-orientation by analysing both its theoretical and practical implications.

81 citations


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

  • ...The distinction between explicit and tacit knowledge undoubtedly plays a major role in the current debate on organizational knowledge (Gourlay, 2003; Nelson and Winter, 1982; Nonaka and Takeuchi, 1995; Spender, 1996a; Subramaniam and Venkatram, 2001)....

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Journal ArticleDOI
TL;DR: This paper analyzed authentic verbal communication between middle managers and employees and drew five conclusions about how interpretational work support organizational goals and values: 1. Middle managers and workers collaborate in interpreting tasks in relation to organizational context; 2. This interpretative work is based on language acquisition: learning the vocabulary of the organization; 3. Employees show expectation of having their experiences interpreted by managers; 4. Employees may challenge managers with competing interpretations; and 5.
Abstract: Middle managers interpret experiences and observations of employees and relate them to organizational contexts, practices, and strategies. By analyzing authentic verbal communication between middle managers and employees, this article will draw five conclusions about how interpretational work support organizational goals and values: 1. Middle managers and employees collaborate in interpreting tasks in relation to organizational context; 2. This interpretative work is based on language acquisition: learning the vocabulary of the organization; 3. The managers articulate the process, explicitly defining reality and influencing language use; 4. Employees show expectation of having their experiences interpreted by managers; 5. Employees may challenge managers with competing interpretations. This article will contribute to the study of leadership communication by combining organization communication theory and conversation analytic methodology. The article shows important ways in which middle managers “do leade...

81 citations


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

  • ...An important aspect of socialization is members’ sharing of experiences and mutual learning (Nonaka & Takeuchi, 1995)....

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Journal ArticleDOI
TL;DR: In this paper, the authors examine intergenerational knowledge sharing within family firms in traditional industries and argue that knowledge sharing in family firms is bidirectional leading to innovative outcomes and change.

81 citations


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

  • ...This knowledge is mostly stored in the form of tacit knowledge (Nonaka & Takeuchi, 1995; von Krogh, Ichijo, & Nonaka, 2000), which can only be passed further if the individual possessing the knowledge engages actively in the process of knowledge sharing....

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  • ...However, the main concern in regard to socialization processes is that knowledge does not become explicit – that is, documented in a way that is easily leveraged within the organization (Desouza & Awazu, 2006; Nonaka & Takeuchi, 1995)....

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  • ...This experience-based knowledge is typically in the form of tacit knowledge (Nonaka & Toyama, 2007), and a source of competitive advantages for the firm (Nonaka, 2007; Nonaka & Takeuchi, 1995)....

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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