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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: It is suggested that SMTEs would benefit from increased information flow through regional networking and cooperative e-marketing campaigns to enhance market visibility, global positioning, and strategic leverage in the new economy.
Abstract: Networks, knowledge, and relationships have become crucial assets to business survival in the new economy. Research indicates that network building is a major new source of competitive advantage and an essential regional and indeed global management requirement. Because regional policies encourage interfirm alliances and the development of regional economic communities, the fostering of a culture of connectivity, networking, learning, and trust between regional Australian small and medium-size tourism enterprises (SMTEs) may offer a potential solution to the possible loss of competitive advantage for Australian tourism enterprises. It is suggested that SMTEs would benefit from increased information flow through regional networking and cooperative e-marketing campaigns to enhance market visibility, global positioning, and strategic leverage in the new economy.

74 citations


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

  • ...…portal has the potential to emulate all the benefits of a traditional cooperative and achieve competitive advantage through niche marketing, e-commerce procurement, SMTE information exchange, and knowledge management, ecooperatives may well emerge as a significant 21st century SMTE online model....

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  • ...Partnership and trust building requires prolonged socialization and externalization to assure stakeholder sincerity (Nonaka & Takeuchi, 1995)....

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Journal ArticleDOI
TL;DR: This paper presents an ontological approach to the problem of representing relationships among step-by-step more complex parts, in order to obtain a final product that fully meets initial requirements.

74 citations


Additional excerpts

  • ...The problem in grasping these competencies lies in their own volatility and informality, what Nonaka [18] has called ‘‘tacit’’ and ‘‘implicit’’ knowledge....

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Posted Content
TL;DR: In this article, the authors explore the limits of applicability of the SECI model through its operationalization and identifi cation of the opportunities and limits of its application in Russian cultural context.
Abstract: While the potential infl uence of national culture on the effi ciency of knowledge management interventions has been widely accepted there is a little discussion concerning the underlying question — are the theories and models of knowledge related processes we use infl uenced by culture? SECI model proposed by Nonaka and Takeuchi is very infl uential in knowledge management community, and its authors repeatedly claim of its universal validity. However, few recent writings challenge this opinion. Such discussion is complicated by the fact that SECI model in its original format resists empirical verifi cation and thus limits its critical analysis. The aim of this study is to continue this discussion and to explore the limits of applicability of the SECI model through its operationalization and identifi cation of the opportunities and limits of its application in Russian cultural context.

74 citations

Journal ArticleDOI
TL;DR: The results show that the organizations are aware of the importance of all the KM factors but fall short of implementation, and the implemented factors consist of business strategy, organizational structure, and knowledge team.
Abstract: Purpose – This paper aims assess to the perceived importance (PI) and actual implementation (AI) of five preliminary knowledge management (KM) success factors, i.e. business strategy, organizational structure, knowledge team, knowledge audit, and knowledge map in the Malaysian telecommunication industry.Design/methodology/approach – A questionnaire survey was conducted on telecommunication organizations located in the capital of Malaysia. Data were analyzed using indices and parametric statistics.Findings – The results show that the organizations are aware of the importance of all the KM factors but fall short of implementation. The implemented factors consist of business strategy, organizational structure, and knowledge team. Knowledge audit and knowledge map are perceived as important but are the least implemented factors.Research limitations/implications – This study was conducted in only one industry in Malaysia. Furthermore, it focuses on the preliminary success factors of KM implementation rather th...

74 citations


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

  • ...The questionnaire was targeted at knowledge workers, i.e. middle management level and above, due to their importance as envisaged by Nonaka and Takeuchi (1995)....

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Journal ArticleDOI
TL;DR: In this paper, a multisource, multi-wave field study among 956 employees from 5 Norwegian organizations was conducted to examine the predictive roles of perceived mastery climate and employee felt trust for employees' knowledge sharing.
Abstract: Interpersonal trust is associated with a range of adaptive outcomes, including knowledge sharing. However, to date, our knowledge of antecedents and consequences of employees feeling trusted by supervisors in organizations remains limited. On the basis of a multisource, multiwave field study among 956 employees from 5 Norwegian organizations, we examined the predictive roles of perceived mastery climate and employee felt trust for employees' knowledge sharing. Drawing on the achievement goal theory, we develop and test a model to demonstrate that when employees perceive a mastery climate, they are more likely to feel trusted by their supervisors at both the individual and group levels. Moreover, the relationship between employees' perceptions of a mastery climate and supervisor-rated knowledge sharing is mediated by perceptions of being trusted by the supervisor. Theoretical contributions and practical implications of our findings are discussed.

74 citations


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

  • ...Our study also extends the range of consequences of specifically feeling trusted to include knowledge sharing, which is critical to the long-term success and sustainability of organizations (Ipe, 2003; 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