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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 article, the authors examined the relationship between total quality management (TQM) and knowledge management (KM) in terms of their impact on process and product innovation, and they found that there is a reciprocal relationship between TQM and KM.
Abstract: The purpose of this paper is to examine the reciprocal relation between total quality management (TQM) and knowledge management (KM) and their impact on process and product innovation. The data were collected from a survey of 190 research and development (R&D) unit managers in Malaysia. Confirmatory factor analysis was used to assess the reliability and validity of the measurement model, and in the next step, structural analysis was performed to evaluate the research model. The results revealed that there is a reciprocal relationship between TQM and KM. Additionally, TQM and KM showed a positive association with process and product innovation. Regarding the controversy of the relationship between TQM and innovation, this study supports the positive association between TQM and innovation. This study is among the first studies which provide empirical evidence to a reciprocal relationship between TQM and KM. The analysis shows that R&D firms by implementing TQM alongside KM not only are able to manage their ...

59 citations

Journal ArticleDOI
27 Mar 2018
TL;DR: In this paper, a bibliometric analysis of the research on organizational innovation from 460 articles published in the period from 2007 to 2016 and indexed in the Web of Science through co-citation and bibliographical coupling analyses is presented.
Abstract: Purpose The purpose of this paper is to examine what are both the main theoretical basis and the recent perspectives within the organizational innovation literature. Design/methodology/approach The authors have conducted a bibliometric analysis reviewing the research on organizational innovation from 460 articles published in the period from 2007 to 2016 and indexed in the Web of Science through co-citation and bibliographical coupling analyses. Findings The clusters analysis results show that the main theoretical foundations are learning and evolution; implementation of innovation; and leadership, creativity and learning. Regarding recent perspectives, the clusters indicate studies on core concepts, knowledge and capability, learning for resource development and human resources for innovation. Originality/value This study organizes the knowledge basis for future research on organizational innovation, and, unlike most literature reviews, this study provides the current trends on the topic and presents a comprehensive research agenda.

59 citations


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

  • ...These publications discuss the balance of knowledge exploration and knowledge exploitation (March, 1991), tacit knowledge and explicit knowledge (Nonaka and Takeuchi, 1995), the innovation of a product’s components and architecture (Henderson and Clark, 1990), individual knowledge and collective knowledge (Grant, 1996; Kogut and Zander, 1992), potential absorptive capacity and realized absorptive capacity (Zahra and George, 2002) and search depth and search scope (Katila and Ahuja, 2002)....

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  • ...…publications discuss the balance of knowledge exploration and knowledge exploitation (March, 1991), tacit knowledge and explicit knowledge (Nonaka and Takeuchi, 1995), the innovation of a product’s components and architecture (Henderson and Clark, 1990), individual knowledge and…...

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Journal ArticleDOI
TL;DR: The study demonstrated that western‐based KM models should be applied cautiously in a developing world context and indigenous and exogenous knowledge was acquired and shared in different contexts.
Abstract: Purpose – The purpose of this study is to assess the application of knowledge management (KM) models in managing and integrating indigenous and exogenous knowledge for improved farming activities in Tanzania, by examining the management of indigenous knowledge (IK), access and use of exogenous knowledge, the relevance of policies, legal framework, information and communication technologies (ICTs), and culture in KM practices in the communities.Design/methodology/approach – Semi‐structured interviews were used to collect qualitative and quantitative data from 181 farmers in six districts of Tanzania. Four IK policy makers were also interviewed.Findings – The study demonstrated that western‐based KM models should be applied cautiously in a developing world context. Both indigenous and exogenous knowledge was acquired and shared in different contexts. IK was shared within a local, small and spontaneous network, while exogenous knowledge was shared in a wide context, where formal sources of knowledge focused ...

59 citations


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

  • ...…knowledge in the local communities In agreement with various KM models (Davenport, 1998; Kruger and Snyman, 2005; McAdam and McCreedy, 2000; Nonaka and Takeuchi, 1995; Probst et al., 2000; Rowley, 2001; Small and Tattalias, 2000), the study findings showed that ICTs are significant tools…...

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  • ...Findings –...

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  • ...(Nonaka and Takeuchi, 1995) Knowledge regarded as either codified or uncodified, and as diffused or undiffused (Boisot, 1987) It is with this background that the study adopted the KM processes as deduced from the reviewed nine KM models to allow the local communities to manage their knowledge based…...

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  • ...Hence, this study used eight western based KM models which provided the theoretical framework (Boisot, 1987; Davenport, 1998; Kruger and Snyman, 2005; McAdam and McCreedy, 1999:2000; Nonaka and Takeuchi, 1995; Probst, et al., 2000; Rowley, 2001; Small and Tattalias, 2000)....

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01 Jan 1998
TL;DR: This document breaches copyright, and access to the work will be removed immediately and investigate the claim.
Abstract: Users may download and print one copy of any publication from the public portal for the purpose of private study or research You may not further distribute the material or use it for any profit-making activity or commercial gain You may freely distribute the URL identifying the publication in the public portal Take down policy If you believe that this document breaches copyright, please contact us providing details, and we will remove access to the work immediately and investigate your claim.

59 citations


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

  • ...From the organizational point of view, creating and sharing new knowledge is crucial for innovation processes (Nonaka & Takeuchi, 1995; Ayas, 1996b)....

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Journal ArticleDOI
TL;DR: In this article, the authors conceptualized service infusion as a business model reconfiguration by using a process perspective and introduced the concept of service defusion as an important counterpart to service infusion.

59 citations


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

  • ...We focus specifically on an understanding of the knowledge conversion mechanisms that take place during the service infusion processes, in particular creating, transforming, and exchanging knowledge (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