scispace - formally typeset
Search or ask a question
Book

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
More filters
Journal ArticleDOI
TL;DR: Badri et al. as mentioned in this paper found that the perceived fairness of management procedures strengthened the positive effects of team reflexivity on unlearning and product innovation, and reduced negative effect of team stress.
Abstract: Department of Management, Faculty of Economics and Business, Airlangga University, No. 4,Airlangga Rd., Surabaya, Indonesia 60286, badri@feb.unair.ac.idThe success of new product development (NPD) depends on a team’s abilities to integrate,build, and reconfigure internal and external competences and the flexibility to address rapidlychanging environments. To develop innovative products it is desirable that these processesshould not be constrained by current beliefs and routines. NPD teams therefore need to engagein an unlearning process to overcome any resistance to new ideas and to facilitate a freshapproach. The paper recognizes that the controlled experience of stress plays a part inunlearning (e.g., confusion about technology or market change can encourage changes) andargues that teams should systematically reflect on the progress they are making in projects andin unlearning. The fairness of procedures used by the management moderates the proposedrelationships. Two hundred and ninety eight team members and 77 NPD team leadersparticipated in the study. The results indicate that team reflexivity positively influencesunlearning and product innovation, while team stress has a negative effect. The perceivedfairness of management procedures strengthens the positive effects of team reflexivity onunlearning and product innovation, and reduces negative effect of team stress.

57 citations


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

  • ...However, they are limited by their focus on the conceptual stage and assumption that innovation results from existing organizational or team routines and beliefs (e.g., Nonaka and Takeuchi, 1995; Zollo and Winter, 2002)....

    [...]

Journal ArticleDOI
TL;DR: In this article, the authors present process simulation as a "locating" method, and test it in a truly global setting: in a telepresence simulation between two units of a telecommunications company in two different countries, engaged in the development of their global New Product Introduction process.
Abstract: The development of global business processes is presented as a negotiation and learning process between the local practices and the global design, applying the theory of 'communities of practice'. To be able to engage in global process development, the local communities of practice need methods that support their social imagination of global membership. The article presents process simulation as such a 'locating' method, and tests it in a truly global setting: in a telepresence simulation between two units of a telecommunications company in two different countries, engaged in the development of their global New Product Introduction process. According to the results, process simulation enabled innovative negotiation between the local practices concerning the global process design, although the telepresence solution caused some limitations. Based on the results, the article suggests methods to manage the emergent global process development further in the case company.

57 citations


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

  • ...The learning-based locating approach is supported by research on change management (Mumford 1981, MossKanter 1983) and on organizational learning (e.g. Nonaka and Takeuchi 1995, Leonard and Sensiper 1998, Nonaka and Konno 1998)....

    [...]

  • ...…create a joint knowledge sharing and creation space (in Japanese ‘ba’, Nonaka and Konno 1998) that supports the conversion of participants’ tacit experience into explicit knowledge, and its effective sharing, combination and internalization into new process innovations (Nonaka and Takeuchi 1995)....

    [...]

Journal ArticleDOI
TL;DR: The paper intends to look at how design can be used as a means of knowledge transfer among various stakeholders who speak different languages and have divergent needs and interests in a process where knowledge openly flew across the boundaries of a high number of organizations.
Abstract: Purpose This paper aims to investigate the role of design as a knowledge translation mechanism in R&D-oriented open innovation. In particular, the paper intends to look at how design can be used as a means of knowledge transfer among various stakeholders who speak different languages and have divergent needs and interests in a process where knowledge openly flew across the boundaries of a high number of organizations. Design/methodology/approach The paper combines the insights from theory with the empirical evidences gathered by adopting an extreme case study approach: the detailed analysis of a case study related to an R&D project funded by the European Commission and aimed to investigate and produce innovative serious games in the area of healthcare. The project gathered a large number of stakeholders and deliberately adopted design to support an open innovation approach. Findings The paper provides insights into the use of design outputs such as artifacts, sketches, visual representations or prototypes to translate ideas, theoretical and technical requirements, documents and outputs into formats that can be more easily understood and appreciated by various stakeholders. This supports and favors coordination in open innovation projects where many different stakeholders are engaged in. Research limitations/implications Although the adoption of an extreme case study approach offers important implications to understand the role of design in R&D-oriented open innovation, the use of a single case study represents the basis both to explore hypothesis and to provide first evidences that need to be further tested with other qualitative and quantitative analysis. Practical implications The paper offers practical implications about how design can help individuals and organizations involved in R&D activities to better communicate and share knowledge among various stakeholders by aligning their different needs, interests and languages along the various phases of their project development. Originality/value The originality of the paper lays at the intersection of three different fields: open innovation, knowledge management and design for innovation, thus integrating mature, but so far isolated, research streams. It provides insights for theory building by explaining the use of design as knowledge translational mechanism as well as it informs the practice by highlighting the power of design as a mean to support knowledge flows into open innovation-based R&D projects.

57 citations


Additional excerpts

  • ...…of knowledge transfer has been described by many researchers using different models; among these one of the most known is the knowledge conversion model introduced by Nonaka and Takeuchi (1995), distinguishing between tacit and explicit knowledge (Koulopoulos and Frappaolo, 1999; Polanyi, 1975)....

    [...]

01 Jan 2010
TL;DR: This article examined how divergent objectives and conflict in the project teams were negotiated, and the impacts of this co-engineering on the participatory water management processes, and found that language barriers may aid, rather than hinder, the process of stakeholder appropriation, collective learning and skills transferal related to the design and implementation of participatory Water management processes.
Abstract: Broad-scale, multi-governance level, participatory water management processes intended to aid collective decision making and learning are rarely initiated, designed, implemented, and managed by one person. These processes mostly emerge from some form of collective planning and organization activities because of the stakes, time, and budgets involved in their implementation. Despite the potential importance of these collective processes for managing complex water-related social-ecological systems, little research focusing on the project teams that design and organize participatory water management processes has ever been undertaken. We have begun to fill this gap by introducing and outlining the concept of a co-engineering process and examining how it impacts the processes and outcomes of participatory water management. We used a hybrid form of intervention research in two broad-scale, multi-governance level, participatory water management processes in Australia and Bulgaria to build insights into these co- engineering processes. We examined how divergent objectives and conflict in the project teams were negotiated, and the impacts of this co-engineering on the participatory water management processes. These investigations showed: (1) that language barriers may aid, rather than hinder, the process of stakeholder appropriation, collective learning and skills transferal related to the design and implementation of participatory water management processes; and (2) that diversity in co-engineering groups, if managed positively through collaborative work and integrative negotiations, can present opportunities and not just challenges for achieving a range of desired outcomes for participatory water management processes. A number of areas for future research on co-engineering participatory water management processes are also highlighted.

57 citations

Journal ArticleDOI
TL;DR: In this article, the authors argue that the new knowledge produced by academia often does not satisfy the needs of practitioners and present action research as a useful concept which can fuse the expectations, contributions and outputs of academia and practitioners.
Abstract: Academia has a critical role in developing new knowledge which construction industry practitioners need to envision, undertake and sustain successful innovation. The new knowledge produced by academia, however, often does not satisfy the needs of practitioners. This unsatisfactory state of affairs is frequently taken to be the consequence of the cultural, motivational and operational differences between the two communities. Actionable knowledge is presented as a useful concept which can fuse the expectations, contributions and outputs of academia and practitioners. Within this context, action research is argued to be an appropriate methodology to develop successful actionable knowledge. Results from an action research project are given which provide researchers and practitioners greater understanding of the key factors that shape the degree to which action research produces actionable knowledge: change focus, collaboration capabilities and systematic process. The criteria intrinsic to Mode 2 research (Gib...

57 citations


Additional excerpts

  • ...(2001), for example, built upon the work of Nonaka and Takeuchi (1995) to argue that all four types of knowledge creation (that is, socialization, externalization, combination and internationalization) should be actively pursued to produce relevant research through mechanisms such as joint symposia…...

    [...]

References
More filters
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