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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: New approaches should promote the use of best available scientific evidence and strategic research and harness field experience and innovation with an emphasis on problem-solving to address priority health problems both at the global and local levels.
Abstract: The Ministerial Summit on Health Research in November 2004 and the World Health Assembly in May 2005 called for more research in developing countries to strengthen health systems and to help achieve the Millennium Development Goals (MDGs) by 2015. Research we believe has to be a component of a strategic process rather than an end in itself. Ill-health and premature deaths from preventable causes persist especially among poor children and women in spite of available cost-effective interventions in part because there is a gap between what is known and what gets done in practice i.e. the ‘know – do’ gap. This gap between available knowledge and its application in policy and practice is not new but systematic approaches to address it are urgently needed. New approaches should promote the use of best available scientific evidence and strategic research. They should also harness field experience and innovation with an emphasis on problem-solving to address priority health problems both at the global and local levels. To bridge the know-do gap knowledge must be leveraged effectively to achieve better health. The generation and sharing of knowledge are necessary steps in its effective application. (excerpt)

78 citations

Journal ArticleDOI
01 Feb 2016
TL;DR: The systematic method of KMPE based on the index system is able to improve organizations' efficiency in performance evaluation process and has strong practicability and operability.
Abstract: A systematic method combined subjective and objective indicators is proposed.An index system involving the process of knowledge management is established.A synthetic evaluation method using triangular fuzzy number is presented.This evaluation method has strong practicability and operability. The purpose of this paper is to propose a systematic method to solve knowledge management performance evaluation (KMPE) problems. This method includes an integrated evaluation process starting from the measurement to the output of KMPE and combines subjective and objective indicators together. Firstly, we established an index system, involving the process of knowledge management, the organizational knowledge structure, economic benefits and efficiency. And based on this index system, a synthetic evaluation method is presented, using triangular fuzzy number to measure indexes and facilitating the KMPE with a group support system (GSS). To know better of the proposed method, we have an example to illustrate. Finally, the empirical study conducted in this paper indicates that the evaluation method has strong practicability and operability. Besides, the evaluation is enabled by using a group support system: the more objective scoring can be achieved due to synchronic/asynchronous and anonymous participation; Decision-makers improve their efficiency by the clear demonstration analysis results. The systematic method of KMPE based on the index system is able to improve organizations' efficiency in performance evaluation process.

78 citations


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

  • ...It is important to understand if the development of knowledge resources and the implementation of knowledge management initiatives can direct and indirect explore the knowledge creation, which was defined by Nonaka and Takeushi [37] as the ability of an institute to create and circulate knowledge in the organization, products, services and systems....

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Journal ArticleDOI
TL;DR: In this article, the authors argue that companies which are run with a view to the long term interests of their key stakeholders are more likely to prosper than those which take a short-term, "shareholder first" approach.
Abstract: All the available evidence suggests that companies which are run with a view to the long term interests of their key stakeholders are more likely to prosper than those which take a short term, "shareholder first" approach (Wheeler and Sillanpaa, 1997) Indeed it is the central premise of this article that forces of economic globalisation and developments in the technology of mass communication will make stakeholder inclusion an increasingly essential component of corporate strategy in the 21st century Put simply, companies, like governments and other established institutions, need to listen, to process and to respond positively to the values and beliefs of their stakeholders – most especially their customers, employees and investors Failure to do this will reduce competitiveness and increase the risk of corporate demise

78 citations


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

  • ...Finally, through a coincidence of human resource development thinking and quality management thinking, we arrived at the 1990s concept of the learning or “knowledge creating” organisation (Senge, 1990; Nonaka and Takeuchi, 1995)....

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Journal ArticleDOI
Seung-Wan Kang1
TL;DR: The transfer of innovation between organisational members has recently drawn attention from both academia and business because corporate competitiveness is linked directly to the diffusion of innov... as mentioned in this paper, which is linked to the competitiveness of companies.
Abstract: The transfer of innovation between organisational members has recently drawn attention from both academia and business because corporate competitiveness is linked directly to the diffusion of innov...

78 citations


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

  • ...According to Nonaka & Takeuchi (1995), new knowledge is generated by individuals and, if proven valuable, this knowledge is transmitted to the entire organisation....

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Journal ArticleDOI
TL;DR: In this article, the authors developed a model for risk management of knowledge loss in a project-based organization in Iran using a multi-stage research approach, which includes a six-step integrated model that manages the risk of critical knowledge in the case study.
Abstract: Purpose – This paper seeks to develop a model for risk management of knowledge loss in a project‐based organization in Iran.Design/methodology/approach – This study uses a multi‐stage research approach. In the first stage, existing practices are examined to develop a model for risk management of knowledge loss. In the second stage, the model is evaluated by testing it in a case study. The methods integrated as the foundations of the Integrated KM and RM model are: the PMBOK risk management (RM) approach, the Fraunhofer IPK knowledge management (KM) model, and the TVA knowledge risk assessment framework.Findings – The analytical approach includes a six‐step integrated model that manages the risk of critical knowledge in the case study. The results show that, after a year of implementing the model, the job positions facing knowledge loss were reduced by 88 percent.Research limitations/implications – The integrated KM and RM model can be used to assist the planning, establishment and evaluation of knowledge ...

78 citations


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

  • ...Nonaka and Takeuchi (1995) created a dynamic model to illustrate the interaction between two kinds of knowledge: tacit and explicit knowledge....

    [...]

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