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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, a survey of 203 marketing and R&D managers and employees in Taiwanese high-tech companies indicated that cross-function collaboration reveals fresh opportunities for creating knowledge and commercializing technologies.

60 citations


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

  • ...Knowledge creation has been described as a spiral process of socialization, externalization, combination and internalization that creates knowledge (Nonaka & Konno, 1998; Nonaka & Takeuchi, 1995)....

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Journal ArticleDOI
TL;DR: In this paper, the authors report results of a survey of 1,397 teachers in 26 primary and 17 secondary schools in England as part of the Learning How to Learn project, and discuss the usefulness of analysing values-practice gaps for furthering understanding of organisational learning approaches to school leadership and management.
Abstract: In this article, we report results of a survey of 1,397 teachers in 26 primary and 17 secondary schools in England as part of the Learning How to Learn project. We consider how school self-evaluation can be understood within an organisational learning frame. Factor analysis of teachers' responses helped us identify 4 dimensions of organisational learning approaches to school leadership and management. Comparisons were made between teachers' perceptions of school leadership and management practices and the values they placed on those practices. We discuss the usefulness of analysing values-practice gaps for furthering understanding of organisational learning approaches to school leadership and management. Analysis of gaps between teachers' values and practices reveals significant inconsistencies between perceptions of current practices and values across a broad spectrum of school leadership and management practices. Perceptions of practice were significantly behind the values that teachers place on each of...

60 citations


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

  • ...As tacit knowledge becomes increasingly codified through social processes of sharing among staff and pupils, new combinations of knowledge bring with them new insights (Hargreaves, 1999; Nonaka & Takeuchi, 1995), reducing ambiguity and risk (Zack, 2000)....

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  • ...…emphasis on knowledge creation is the wellspring that feeds decision-making and policy planning, recognising that capacity of schools to build on that process requires systems for leveraging the knowledge assets of the school (Hargreaves, 1999; Nickols, 2000; Nonaka & Takeuchi, 1995; Zack, 2000)....

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BookDOI
01 Jan 2018
TL;DR: In this article, the authors examine the contingent decision-making arguments stimulating output instead of outcome measurement in public management and conclude that there exist several contingent arguments encouraging politicians and public managers to stick with outputs while ignoring outcomes in performance measurement.
Abstract: Moving to outcome-based measurement systems in the public sector has been difficult. In this article, we examine the contingent decision-making arguments stimulating output instead of outcome measurement in public management. Based on an argumentative literature review, we conclude that there exist several contingent arguments encouraging politicians and public managers to stick with outputs while ignoring outcomes in performance measurement. Mapping out these arguments contributes to understanding the difficulties in implementation of outcome-based measurement and management systems. This understanding is highly useful in performance management research and policy practice. We also suggest that these contingent arguments may be considered proposals for the future research in the area of public financial management and public sector performance measurement.

60 citations


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

  • ...The literature underlying the training programme may be traced back mainly to the authors who have previously discussed the topic of skills (Rullani 2004; Nonaka and Takeuchi 1995; Prahalad and Hamel 1990; Boyatzis 1982; Polanyi 1962)....

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Journal ArticleDOI
TL;DR: In this paper, the authors examined the relationship between the knowledge creation process and technological innovation capabilities, and analyzed their effect on a firm's sustainable competitive advantage using a knowledge-based view theoretical framework.
Abstract: This study examines the relationship between the knowledge creation process and technological innovation capabilities, and analyzes their effect on a firm’s sustainable competitive advantage using a knowledge-based view theoretical framework. We conduct structural equation modeling analyses using survey data from 315 Chinese industrial firms to test the direct and indirect effects of the knowledge creation process on sustainable competitive advantage. Technological innovation capabilities—operationalized to reflect the dimensions of process innovation capability and product innovation capability—are used as the mediating variable for explaining the relationship between the knowledge creation process and sustainable competitive advantage. The results indicate that the knowledge creation process does not have a significant direct effect on sustainable competitive advantage. Rather, the knowledge creation process can only influence the sustainable competitive advantage through the mediating effect of technological innovation capabilities completely. Consequently, the knowledge creation process favors the development of technological innovation capabilities for processes and products, because processes and products can lead to a sustainable competitive advantage.

60 citations


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

  • ...These processes internalize newly created knowledge in individual employees, thereby completing the cycle of knowledge creation [11,21]....

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  • ...The socialization process converts individuals’ tacit knowledge into new tacit knowledge through shared experiences and joint activities [21] such as cooperative projects across directorates, employee rotation across areas, etc....

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  • ...This conclusion was inconsistent with our hypotheses, probably because, from the KBV, knowledge creation is the core task of a business and the knowledge created by members of a business through social interaction (particularly tacit knowledge, which is difficult to articulate, imitate, and disseminate) is a crucial source of SCA [7,21,58]....

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  • ...Knowledge creation can be seen as a process through which knowledge is constantly transferred and integrated among businesses, functional departments, and individuals, or a process involving repeated conversions of tacit and explicit knowledge [21,25]....

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  • ...Focusing on the conversion between tacit and explicit knowledge, this model divides knowledge creation into the processes of socialization, externalization, combination, and internalization, suggesting that businesses should promote conversion between their tacit and explicit knowledge to foster their innovation and development [16,21]....

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Journal ArticleDOI
TL;DR: In this paper, a model linking team-based talent management and organizational learning is tested in a sample of large Spanish companies and the authors highlight the role of team autonomy and creativity as crucial factors for successful OL through teambased TM, especially for interlinking individual and group learning levels.
Abstract: Talent management (TM) can crucially help optimize organizational learning (OL) processes. The aim of this article is to study whether certain TM practices related to teamwork design and dynamics stimulate and develop learning (i.e. knowledge creation) processes within the organization and across the different ontological levels (individual, group and organizational–institutional). A model linking team-based TM and OL is tested in a sample of large Spanish companies. Our empirical results emphasize the distinction between individual–group and institutional levels of learning as the two pillars of OL. The results also highlight the role of team autonomy and creativity as crucial factors for successful OL through team-based TM, especially for interlinking individual and group learning levels.

60 citations


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

  • ...Furthermore, the ‘enabling conditions’ for knowledge creation (Nonaka and Takeuchi 1995) or the ‘dimensions’ that build OL capability (Jerez-Gómez, Céspedes-Lorente and Valle-Cabrera 2005a; Chiva, Alegre and Lapiedra 2007) also deserve special mention....

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  • ...All in all, different kinds of teams can be regarded as the axes of learning (i.e. knowledge creation) processes, which, in turn, are essential for organizational adaptation and renewal (Nonaka and Takeuchi 1995; Pan, Newell, Huang and Galliers 2007)....

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  • ...Notably, learning at the level of teams helps build a crucial bridge between the individual and institutional levels of learning (Nonaka and Takeuchi 1995; Crossan, Lane and White 1999)....

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  • ...That is, OL is a process whereby knowledge is amplified from the individual to the whole organization through teams (Nonaka and Takeuchi 1995; Crossan et al. 1999)....

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  • ...…continuous learning is a relevant organizational goal, carefully dealing with key organizational variables and developing a clear managerial purpose – challenges related to both TM and teamwork – are essential for building superior knowledge assets (Nonaka and Takeuchi 1995; Chiva et al. 2007)....

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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