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: The efficacy of interaction approaches to research translation may be more limited than current theory proposes and underscores the need for more completely specified models of research utilization that can help address the slow pace of change in this area.
Abstract: Although the study of research utilization is not new, there has been increased emphasis on the topic over the recent past. Science push models that are researcher driven and controlled and demand pull models emphasizing users/decision-maker interests have largely been abandoned in favour of more interactive models that emphasize linkages between researchers and decisionmakers. However, despite these and other theoretical and empirical advances in the area of research utilization, there remains a fundamental gap between the generation of research findings and the application of those findings in practice. Using a case approach, the current study looks at the impact of one particular interaction approach to research translation used by a Canadian funding agency. Results suggest there may be certain conditions under which different levels of decisionmaker involvement in research will be more or less effective. Four attributes are illuminated by the current case study: stakeholder diversity, addressability/actionability of results, finality of study design and methodology, and politicization of results. Future research could test whether these or other variables can be used to specify some of the conditions under which different approaches to interaction in knowledge translation are likely to facilitate research utilization. This work suggests that the efficacy of interaction approaches to research translation may be more limited than current theory proposes and underscores the need for more completely specified models of research utilization that can help address the slow pace of change in this area.
62 citations
Cites background from "The knowledge-creating company : ho..."
...Conceptual utilization is akin to the kind of "socialization" that Nonaka and Takeuchi [31] discuss as one way to convert or transfer tacit knowledge (knowledge that is difficult to formalize and communicate)....
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TL;DR: Surprisingly, and contrary to common belief, the integrated model shows that social capital tendency seems to play a more important role than organisational culture in affecting employees' sense of well-being within the virtual organisation in a Chinese cultural context.
62 citations
Cites background from "The knowledge-creating company : ho..."
...In contrast to tacit knowledge, explicit knowledge can be captured, codified and written in the form of technical or academic data and presented in such forms as journals, manuals, documents and patents (Nonaka & Takeuchi, 1995; Alwis, 2008; Nonaka & Krog, 2009)....
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TL;DR: In this article, the authors developed a framework and an understanding of the external knowledge absorption in nature-based tourism companies and explored how external knowledge (tacit and explicit) is absorbed and assimilated in tourism-innovation processes.
Abstract: The paper develops a framework and an understanding of the external knowledge absorption in nature-based tourism companies. The concept of potential absorptive capacity is the starting point for exploring how external knowledge (tacit and explicit) is absorbed and assimilated in tourism-innovation processes. Although knowledge is the engine that drives innovation, tourism firms can have problems and challenges when trying to absorb external knowledge for innovation. The main challenge is to access and absorb tacit knowledge. This type of knowledge is personal and sticky and therefore difficult to acquire and assimilate into the existing knowledge pool of organizations. Tacit knowledge is also difficult to imitate and is therefore important for developing original and competitive innovations. In this study, knowledge acquisition and assimilation processes and how knowledge challenges are handled are investigated by adopting a multiple, qualitative case-study strategy that focuses on three Icelandic...
62 citations
Cites background from "The knowledge-creating company : ho..."
...Organizational knowledge creation can be seen as a process of mobilizing individual tacit knowledge and fostering its interaction with the explicit knowledge base of the firm (Nonaka & Takeuchi, 1995)....
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...Knowledge can be understood as the fuel that drives these innovation processes (Cavusgil, Calantone, & Zhao, 2003; Newell, Robertson, Scarbrough, & Swan, 2009; Nonaka & Takeuchi, 1995)....
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...Instead, the internal knowledge-base of the organization must be built by sharing or translating the tacit knowledge of employees into accessible, explicit knowledge, which requires frequent intensive and social interaction among the members of the organization (Nonaka & Takeuchi, 1995)....
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TL;DR: In this article, a three-stage approach (IMPaKT) is presented for developing a business case for knowledge management (KM), which facilitates an understanding of the strategic context of business problems and their knowledge management implications; planning and alignment of KM strategy to address business problems or objectives; and evaluation of the impact of KM on business performance in terms of effectiveness and efficiency.
Abstract: There is a wealth of literature on the role of knowledge management (KM) in business improvement. Those with responsibility for implementing KM in organizations are often required to demonstrate its benefits. The need to convince senior management and other stakeholders about the business benefits is increasingly recognized as crucial in justifying a KM strategy and the resources to support its implementation. A three-stage approach (the IMPaKT framework) - underpinned by an industry survey and case study findings - is presented for developing a business case for KM. The framework facilitates: (1) an understanding of the strategic context of business problems and their knowledge management implications; (2) the planning and alignment of KM strategy to address business problems or objectives; and (3) an evaluation of the impact of KM on business performance in terms of effectiveness and efficiency. Key findings based on industrial application and further development of the framework are discussed. Evaluati...
62 citations
Cites background from "The knowledge-creating company : ho..."
...Nonaka and Takeuchi (1995) identified four modes of knowledge transformation: socialization, externalization, combination and internalization (SECI model)....
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...One of the most practical distinctions is that between tacit and explicit knowledge (Nonaka and Takeuchi, 1995)....
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TL;DR: A conceptual model of knowledge transfer within Japanese multinational companies and their overseas affiliates is proposed, based on the assumption that Japanese firms consciously apply the same knowledge management methods abroad as at home only to the extent to which they consider them appropriate for transplanting into a foreign environment.
Abstract: Purpose – The purpose of this research is to explore the theoretical underpinnings of knowledge transfer within Japanese multinationals. To that end, a conceptual model of knowledge transfer within Japanese multinational companies and their overseas affiliates is proposed.Design/methodology/approach – In the first part, theoretical models of knowledge transfer within multinationals in general are explored through a literature review. Next, related knowledge management practices utilized by Japanese companies, specifically in their overseas subsidiaries, are introduced. The third section develops a conceptual model proposing how knowledge is disseminated within Japanese multinationals. The discussion is based on the assumption that Japanese firms consciously apply the same knowledge management methods abroad as at home only to the extent to which they consider them appropriate for transplanting into a foreign environment.Findings – Distillation of prior research has led to the conceptual model proposed her...
62 citations
Cites background from "The knowledge-creating company : ho..."
...The consequent search for valid knowledge transfer models has resulted in numerous proposals throughout the past decade (e.g. Hedlund and Nonaka, 1993; Boisot, 1995; Nonaka and Takeuchi, 1995; Nahapiet and Ghoshal, 1998; Tsai and Ghoshal, 1998; Gupta and Govindarajan, 2000; Holden, 2002)....
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...Nonaka and Takeuchi (1995) withdraw from connecting their approach to specific cultural conditions, while simultaneously confirming that meaning and communication require collective knowledge to comprehend the context of a message....
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...The discussion is based on the assumption that Japanese firms consciously apply the same knowledge management methods abroad as at home only to the extent to which they consider them appropriate for transplanting into a foreign environment....
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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