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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, an exploratory study discusses the way in which knowledge is shared in one of Japan's commercial banks and highlights the social factors which act as catalysts in the knowledge-sharing process, and considers the impact of HRM practices and the low level of interaction with outside institutions.
Abstract: This exploratory study discusses the way in which knowledge is shared in one of Japan's commercial banks. In particular, it highlights the social factors which act as catalysts in the knowledge-sharing process, and considers the impact of HRM practices and the low level of interaction with outside institutions. It acknowledges the embeddedness of knowledge in social relations by adapting the community model of knowledge sharing. Contrary to the belief that traditional bureaucratic people management practices have a limited ability to support knowledge management, this study reveals an HRM system that is able to strike a balance between those practices and a 'paternalistic adhocracy' approach to sharing knowledge through collaborative task sharing, trust building and personal social networking.

71 citations


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

  • ...A few previous studies (e.g. Fruin 1997; Nonaka and Takeuchi 1995) have attempted to identify the differences between the Japanese knowledge-creation model and the Western technology-based knowledge management model....

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  • ...In other words, knowledge is perceived as more than simply information, and is seen as embedded in the skills and experiences of employees and constructed through social relationships and interactions (Nonaka and Takeuchi 1995)....

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  • ...Most existing studies are concerned with manufacturing industries (e.g. Nonaka and Takeuchi 1995; Fruin 1997), and, by contrast, the service industry, especially banking, has been neglected....

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  • ...There is a growing body of literature (e.g. Leonard-Barton 1992; Drucker 1993; Nonaka and Takeuchi 1995; Grant 1996) addressing the issue of knowledge as the source of the Žrm’s competitive advantage....

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  • ...There is a growing body of literature (e.g. Leonard-Barton 1992; Drucker 1993; Nonaka and Takeuchi 1995; Grant 1996) addressing the issue of knowledge as the source of the rm’s competitive advantage....

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Posted Content
01 Jan 2004
TL;DR: This paper analyzes the argumentation potential of weblog technologies, using a diagnostic framework for argumentation technologies and makes a number of recommendations for research on how to apply these technologies in purposeful conversation processes such as for knowledge management.
Abstract: Weblogs are important new components of the Internet. They provide individual users with an easy way to publish online and others to comment on these views. Furthermore, there is a suite of secondary applications that allow weblogs to be linked, searched, and navigated. Although originally intended for individual use, in practice weblogs increasingly appear to facilitate distributed conversations. This could have important implications for the use of this technology as a medium for collaboration. Given the special characteristics of weblogs and their supporting applications, they may be well suited for a range of conversational purposes that require different forms of argumentation. In this paper, we analyze the argumentation potential of weblog technologies, using a diagnostic framework for argumentation technologies. We pay special attention to the conversation structures and dynamics that weblogs naturally afford. Based on this initial analysis, we make a number of recommendations for research on how to apply these technologies in purposeful conversation processes such as for knowledge management.

71 citations


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

  • ...It can be seen as an archetypical case of knowledge creation, which is a major knowledge management activity essential for modern business success (Nonaka and Takeuchi, 1995)....

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Journal ArticleDOI
TL;DR: In this paper, the authors present a post hoc retrospective account of a UK government research council funded project deploying knowledge management software to support environmental sustainability in the construction industry, and argue that valuing the links between co-existing Mode 1 and 2 research activities would support a more genuine and fuller exploration of the context of application.
Abstract: We present a reflexive retrospective account of a UK government research council funded project deploying knowledge management software to support environmental sustainability in the construction industry. This project was set up in a form typical of a Mode 2 research programme involving several academic institutions and industrial partners, and aspiring to fulfil the Mode 2 criteria seen as transdisciplinarity and business relevance. The multidisciplinary nature is analysed through retrospectively reflecting upon the research process and activities we carried out, and is found to be problematic. No real consensus was reached between the partners on the 'context of application'. Difficulties between industry and academia, within industry and within academia led to diverging agendas and different alignments for participants. The context of application does not (pre-)exist independently of institutional influences, and in itself cannot drive transdisciplinarity since it is subject to competing claims and negotiations. There were unresolved tensions in terms of private vs. public construction companies and their expectations of ICT-based knowledge management, and in terms of the sustainable construction agenda. This post hoc reflexive account, enables us to critique our own roles in having developed a managerial technology for technically sophisticated and powerful private industrial actors to the detriment of public sector construction partners, having bypassed sustainability issues, and not reached transdisciplinarity. We argue that this is due to institutional pressures and instrumentalization from academia, industry and government and a restricted notion of business relevance. There exists a politically motivated tendency to oppose Mode 1 academic research to practitioner-oriented Mode 2 approaches to management research. We argue that valuing the links between co-existing Mode 1 and 2 research activities would support a more genuine and fuller exploration of the context of application.

71 citations


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

  • ...The University of Construction, as engineers, adopted a functionalist knowledge–process model, drawing upon Nonaka and Takeuchi (1995) as an attempt to identify knowledge within the construction process protocol....

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01 Jan 2014
TL;DR: The SI-DRIVE report "Theoretical approaches to Social Innovation - A Critical Literature Review" as discussed by the authors provides a comprehensive overview on the state of the art of theoretically relevant building blocks for advancing a theoretical understanding of social innovation.
Abstract: The SI-DRIVE report “Theoretical approaches to Social Innovation – A Critical Literature Review” delivers a comprehensive overview on the state of the art of theoretically relevant building blocks for advancing a theoretical understanding of social innovation. It collects different theoretical approaches which are conducive to a deeper understanding of social innovation. The chapters, focusing on (1) Theories of Social Change, (2) Social Innovation Studies and (3) Innovation and Management Studies, help to clarify the scientific concept of social innovation as a new combination or figuration of social practices. The report will guide the upcoming empirical research: the mapping of social innovation cases in the seven policy fields of SI-DRIVE as well as the deepening case study analysis.

71 citations

Journal ArticleDOI
TL;DR: An Extensible Markup Language-based representation formulated with the Zachman framework is proposed in this paper and through a rough set based approach, case-based reasoning becomes more efficient and complexity of computation of the similarity testing is significantly reduced.
Abstract: The case-based reasoning becomes a novel paradigm that solves a new problem by remembering a previous similar situation and by reusing information and knowledge of that situation. In general, the traditional representation of cases is too simple and is not well structured to support the decision-making in organization. Furthermore, the similarity testing of case-based reasoning is very time-consuming. Therefore, a novel approach to represent the knowledge of cases in an explicit manner and to search similar cases in an efficient way is desired. An Extensible Markup Language-based representation formulated with the Zachman framework is proposed in this paper. Through a rough set based approach, case-based reasoning becomes more efficient and complexity of computation of the similarity testing is significantly reduced.

71 citations


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

  • ...Once the knowledge has been gained and externalized, it spirals in organization and can be reused for the future (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