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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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01 Jan 2003
TL;DR: In this article, the authors present a general instrument for evaluation of knowledge management projects. But they focus on three points at which evaluation of KM projects can, and should, be, done: (1) when deciding whether to start and where to focus, (2) once under way, following up on a project and making adjustments if needed, and (3) when completed, to evaluate the project outcomes.
Abstract: Many knowledge management (KM) projects have been initiated, some of which have been successes but many have been failures. Measuring the success or failure of KM initiatives is not easy, and in order to do so some kind of measurement process has to be available. There are three points at which evaluation of KM projects can, and should be, done: (1) when deciding whether to start and where to focus, (2) once under way, following up on a project and making adjustments if needed, and (3) when completed, to evaluate the project outcomes. This paper concentrates on the first two areas by developing a general instrument for evaluation of KM projects.

62 citations


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

  • ...http://www.ejkm.com ©MCIL All rights reserved Keywords: Knowledge management, Evaluation process, Measurement instrument, Success factors....

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  • ...Nonaka contends that Japanese firms are successful because they are innovative (Nonaka 1995)....

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Journal ArticleDOI
TL;DR: The impact of the resource-based view on the theoretical and empirical development of strategic human resource management (SHRM) has been explored in this article, where the fields of strategy and SHRM are beginning to converge around a number of issues.

62 citations


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

  • ...Although theorists such as Argyris and Schon (1978) argue that all learning begins at the individual level, it is conditioned by the social context and routines within organizations (Nonaka & Takeuchi, 1995)....

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Journal ArticleDOI
TL;DR: In this paper, the authors use dialectics theory to unpack the learning processes through which organizational members and collectives build their capacity to understand and cope with complex tensions over time.
Abstract: Paradox theory enables management research to replace either/or thinking with more integrative both/and approaches. Despite this achievement, greater theoretical complexity is needed to account for paradoxical tensions’ intricacies. We use dialectics theory to unpack the learning processes through which organizational members and collectives build their capacity to understand and cope with complex tensions over time. Building on these insights, we develop a paradox process model that resembles a learning spiral, in which organizations move through stages of convergence and divergence. During the convergence stages, they learn about and refine their current worldviews by constantly moving between the tension’s poles. During the divergence stages, they move beyond dynamic equilibrium to reach a higher understanding of tensions and their management. While organizations caught in equilibrium are prone to stasis and demise, those that move beyond equilibrium can achieve sustainability.

62 citations


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

  • ...Whereas learning in equilibrium is understood as first-order learning (or learning by testing), learning beyond equilibrium enables second-order learning (or learning by discovery) (Nonaka and Takeuchi, 1995)....

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Journal ArticleDOI
TL;DR: The level of interest suggests that knowledge management needs to be taken seriously as an issue for information professionals and for the fields of librarianship and information science.
Abstract: The level of interest suggests that knowledge management needs to be taken seriously as an issue for information professionals and for the fields of librarianship and information science. Knowledge management is perceived to offer a substantial enhancement of the role of the information professional. However, the confusion, variations and concerns expressed indicate that knowledge management is a difficult area still requiring significant exploration and development. The definition of the area is still very open and in some ways quite problematic. There is an understandable desire for this to be resolved. A recognised definition provides people with a more substantive base to explain the concept and to argue for its adoption. It enables them to establish their identity with respect to a specific concept, program or set of tools. Further, the current lack of status of many information professions, and the pervasive uncertainty in many industries suggest substantial reasons for developing a more coherent an...

62 citations

Journal ArticleDOI
TL;DR: In this article, a knowledge and learning management infrastructure is required in order to realize every knowledge organization as a learning organization capable of exploiting the organizational knowledge wealth, and the main conclusion is that a Knowledge and Learning Management Infrastructure is required.
Abstract: The digital economy is based on knowledge and the ultimate objective is the reinforcement of performance. The business strategy has been shifted from the management of tangible assets to intangible resources and the traditional competitive position of business units is based on their capacity for effective action. The main conclusion is that a knowledge and learning management infrastructure is required in order to realize every knowledge organization as a learning organization capable of exploiting the organizational knowledge wealth.

62 citations


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

  • ...Each team utilizes the tacit and explicit knowledge of knowledgeintensive workers (Nonaka and Takeuchi, 1995; Boisot, 1987; Hedlund and Nonaka, 1993)....

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  • ...The main areas of interest include electronic retailing, digital marketing, socioeconomic impact of the digital economy, e-learning, enterprise systems, process modeling, emerging e-business technologies, e-businessenabling software development tools and methods, security and availability,…...

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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