Book•
The knowledge-creating company : how Japanese companies create the dynamics of innovation
01 Jan 1995-
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.
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TL;DR: In this article, the authors identify the key variables impacting on headquarters' ability to benefit from reverse knowledge transfer and conclude that the efficiency of the MNC as a knowledge integrating institution is being driven by changes in both, the subsidiary's context and its capabilities to process knowledge.
441 citations
TL;DR: Transitioning from individual work to self-managing teams requires a reorientation not only by developers but also by management, and trust and shared mental models are found to be of fundamental importance.
Abstract: Context: Software development depends significantly on team performance, as does any process that involves human interaction. Objective: Most current development methods argue that teams should self-manage. Our objective is thus to provide a better understanding of the nature of self-managing agile teams, and the teamwork challenges that arise when introducing such teams. Method: We conducted extensive fieldwork for 9months in a software development company that introduced Scrum. We focused on the human sensemaking, on how mechanisms of teamwork were understood by the people involved. Results: We describe a project through Dickinson and McIntyre's teamwork model, focusing on the interrelations between essential teamwork components. Problems with team orientation, team leadership and coordination in addition to highly specialized skills and corresponding division of work were important barriers for achieving team effectiveness. Conclusion: Transitioning from individual work to self-managing teams requires a reorientation not only by developers but also by management. This transition takes time and resources, but should not be neglected. In addition to Dickinson and McIntyre's teamwork components, we found trust and shared mental models to be of fundamental importance.
441 citations
Cites background from "The knowledge-creating company : ho..."
...For Individuals to be motivated and satisfied with their jobs they need to have control over their own work and over the scheduling and implementation of their own tasks [1,26]....
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...Project goals, system requirements, project plans, project risks, individual responsibilities, and project status must be visible and understood by all parties involved [21]....
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TL;DR: The authors developed a new framework for situational leadership in organizational knowledge creation, which is based on a continuum that ranges from centralized to distributed leadership at three layers of activity: a core layer of local knowledge creation; a conditional layer that provides the resources and context for knowledge generation; and a structural layer that forms the overall frame and direction for knowledge creation in the organization.
Abstract: Organizational knowledge creation integrates context, knowledge assets, and knowledge creation processes throughout the organization Using organizational knowledge creation theory as an organizing framework, we conduct a literature review that shows prior work has focused on the role of central, upper-echelon, leadership in knowledge creation processes, without devoting much attention to context and knowledge assets To remedy these weaknesses, we develop a new framework for situational leadership in organizational knowledge creation The framework is based on a continuum that ranges from centralized to distributed leadership at three layers of activity: a core layer of local knowledge creation; a conditional layer that provides the resources and context for knowledge creation; and a structural layer that forms the overall frame and direction for knowledge creation in the organization We discuss the implications of this framework for theory and practice
439 citations
Cites background or methods from "The knowledge-creating company : ho..."
...…Journal of Management Studies © 2011 Blackwell Publishing Ltd and Society for the Advancement of Management Studies knowledge creation theory (e.g. Nonaka and Takeuchi, 1995), top- and middle-level managers enable lower-level group interaction by intervening and providing access to critical…...
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...In coding the contributions of prior work, we found papers explicitly using the SECI framework (Nonaka and Takeuchi, 1995)....
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...Most literature on organizational knowledge emphasizes the activities of centralized leadership or management in creating, transferring, and exploiting knowledge (Argote et al., 2003; Boisot and MacMillan, 2004; Nonaka and Takeuchi, 1995)....
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...Our approach is to review the literature on leadership studies applied to research problems in organizational knowledge, using organizational knowledge creation theory as an organizing framework (Nonaka, 1994; Nonaka and Takeuchi, 1995; Nonaka et al., 2006; von Krogh et al., 2000)....
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...…creation have argued (Boland and Tenkasi, © 2011 The Authors Journal of Management Studies © 2011 Blackwell Publishing Ltd and Society for the Advancement of Management Studies 1995; Hedlund, 1986; Nonaka, 1994; Nonaka and Takeuchi, 1995), teams of creative people constitute the core of innovation....
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TL;DR: This study finds broad support for the proposed analytical framework for relational and contractual mechanisms in foreign subsidiaries' acquisition of tacit and explicit knowledge from local suppliers in China and provides important implications for foreign subsidiaries regarding how to acquire local knowledge in host countries through both formal and informal mechanisms.
Abstract: This research focuses on relational and contractual mechanisms and examines their impact on foreign subsidiaries' acquisition of tacit and explicit knowledge from local suppliers. Using survey data from 168 foreign subsidiaries operating in China, this study finds broad support for the proposed analytical framework. When the foreign subsidiary and supplier share common goals, the foreign subsidiary acquires greater levels of both explicit and tacit knowledge; trust between the two parties promotes the acquisition of greater levels of tacit than explicit knowledge. However, access to the local supplier network through the focal supplier enables the foreign subsidiary to acquire greater levels of explicit but not tacit knowledge. Formal contracts play a complementary role in knowledge acquisition: contracts enhance the acquisition of explicit knowledge and further strengthen the effects of relational mechanisms on tacit and explicit knowledge acquisition. Overall, these findings provide important implications for foreign subsidiaries regarding how to acquire local knowledge in host countries through both formal and informal mechanisms. Copyright © 2009 John Wiley & Sons, Ltd.
437 citations
Cites background from "The knowledge-creating company : ho..."
...…and socialization process greatly encourage the transfer of tacit knowledge (Nonaka and Takeuchi, 1995), but the willingness to spend significant time together and maintain stable relationships also facilitates tacit knowledge transfer (Kotabe, Martin, and Domoto, 2003; Nonaka and Takeuchi, 1995)....
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...Tacit knowledge is complex, hard to articulate, and difficult to transfer, whereas explicit knowledge is codifiable and can be transmitted without loss of integrity (Nonaka and Takeuchi, 1995; Polanyi, 1967)....
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...Following Dyer and Nobeoka (2000), we examine the relationship dyad between an international subsidiary and its major local supplier....
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...Not only does exposure to the source unit’s work environment and socialization process greatly encourage the transfer of tacit knowledge (Nonaka and Takeuchi, 1995), but the willingness to spend significant time together and maintain stable relationships also facilitates tacit knowledge transfer…...
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Posted Content•
TL;DR: In this paper, a qualitative field study explores how geographically dispersed teams learn and accomplish challenging work by drawing on knowledge situated in the multiple physical locales they span, finding that dispersed teams can easily access and use unique locale-specific knowledge resources to resolve problems that arise in those same locales.
Abstract: This qualitative field study explores how geographically dispersed teams learn and accomplish challenging work by drawing on knowledge situated in the multiple physical locales they span. We propose the construct of situated knowledge as important for understanding the learning process in dispersed teams. Data collected on seven development projects, each spanning multiple sites, reveal that situated knowledge is at the same time a valuable resource and a source of communication difficulty for dispersed teams. We find that, because their members understand and participate in locale-specific practices, dispersed teams can easily access and use unique locale-specific knowledge resources to resolve problems that arise in those same locales. However, when dispersed teams need knowledge situated at a site other than where the problem occurred, they must first recognize and adjust for locale-specific practices within which that knowledge is embedded before they can use it. The paper reports on analyses of 44 learning episodes that involved identifying and engaging situated knowledge, and draws from these data to identify implications for research and practice.
437 citations
Cites background from "The knowledge-creating company : ho..."
...Such knowledge can be recognized, and even shared, when colleagues are able to engage in dialogue, observation, and shared activity (Leonard-Barton, 1992; Nonaka & Takeuchi, 1995)....
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...Uncodified knowledge, such as competence using a tool or machine, is recognized by co-located colleagues due to shared activity (Nonaka and Takeuchi, 1995), but is less likely to be recognized by remote colleagues....
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References
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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
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
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
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
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