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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 theoretical framework is developed whereby the characteristics of isolating mechanisms, namely causal ambiguity, asset stock effects and enforceability of property rights, are shown to be important determinants of appropriation effectiveness.
Abstract: Preventing the imitation of products and their underlying characteristics is a key source of competitive advantage. Isolating mechanisms, such as patents, brand name and speed to market, render an organisation's inventions imperfectly imitable by competitors, helping sustain the above-normal returns achieved from a new product innovation. A theoretical framework is developed whereby the characteristics of isolating mechanisms, namely causal ambiguity, asset stock effects and enforceability of property rights, are shown to be important determinants of appropriation effectiveness. A multiple method research design, consisting of a survey of 238 large Australian organisations, and a further six case study organisations, is adopted. The results indicate that isolating mechanisms in the form of technological capabilities, market-based assets and knowledge protection positively moderate an organisation's returns from their innovation activities, while being first-to-market is found to negatively moderate the business returns achieved. Implications for managers in increasing the effectiveness of their appropriation regime, and future directions for research are proposed.

55 citations


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

  • ...Marketing capabilities refer to knowledge of the firm about its environment, such as emerging market conditions and the entities within it (Nonaka and Takeuchi, 1995), unique facts, beliefs and assumptions about customers’ preferences (Glazer, 1991), and a firm’s idiosyncratic network of relationships with partners and customers....

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  • ...Marketing capabilities refer to knowledge of the firm about its environment, such as emerging market conditions and the entities within it (Nonaka and Takeuchi, 1995), unique facts, beliefs and assumptions about customers’ preferences (Glazer, 1991), and a firm’s idiosyncratic network of…...

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Journal Article
TL;DR: This upcoming theory offers a dedicated vocabulary and approach to all of those information scientists who either focus on macro-structures or micro-interactions in their studies, but feel at risk of ignoring or missing important dimensions of social order and change in action.
Abstract: Introduction. The purpose of this paper is to introduce to information science in a coherent fashion the core premises of contemporary practice theory, and thus to engage the information research community in further debate and discussion. Method. Contemporary practice-based approaches are summarised in an ensemble of five core premises by means of a broad conceptual analysis of the relevant literature. Differentiated from its historical antecedents by central ideas from science and technology studies, particularly actor-network theory and the sociology of translation, this current practice movement builds on the latest practice 'turn' which is then used to answer the question of how practice theory could contribute to information science. Results. Capturing the distinct ontology, epistemology and methodology of current practice theory, the five key premises provide novel insights in transcending the macro-objectivist and micro-subjectivist levels of analysis, in sociomateriality, in stretching interactions to action nets to conceptualize dynamic organizing, in the sharing of tacit knowledge, in the emergent nature of knowing and learning, and in social order and change as dynamic outcomes of the tightly interwoven processes of doing, knowing and organizing. Conclusions. This paper distinguishes the everyday notion of practice, mostly understood as practices, from contemporary practice theory which aspires to integrate practice ontology, epistemology and methodology into a coherent theoretical framework. This upcoming theory offers a dedicated vocabulary and approach to all of those information scientists who either focus on macro-structures or micro-interactions in their studies, but feel at risk of ignoring or missing important dimensions of social order and change in action.

55 citations


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

  • ...…movement resists the conceptualisation of tacit and explicit knowledge as two separate processes which could be converted into each other, the view on knowledge of Nonaka and Takeuchi (1995), which has gained so many followers in the knowledge management and organizational learning literatures....

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Journal ArticleDOI
TL;DR: In this paper, the authors applied lean thinking to information management in order to improve the performance of an automotive company, and verified the modification efficiency through the calculation of a performance index.
Abstract: Worldwide modern organisation is continuously crossed by a great number of information but frequently information is not accurate, the needed information is not generated or it cannot be easily identified and, more, the information cannot flow through the whole organisation. This paper proposes the application of lean thinking in the field of information management. In the areas of manufacturing and production, the lean thinking is well known but usually the importance of a holistic approach is neglected and the improvement involves only the production and logistic areas and there is not a specific focus on the lean information management. We applied lean thinking to information management in order to improve the performance of an automotive company. We analysed the as-is company condition, we identified the present muda and we introduced the necessary changes. Then, we verified the modification efficiency through the calculation of a performance index. The paper proposes an interesting and exhaustive cas...

55 citations


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

  • ...Errors committed during this first development of the integrated window can lead to positive outcomes such as learning (Nonaka and Takeuchi 1995; Lyytinen and Robey 1999)....

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01 Jan 2000
TL;DR: Knowledge Engineering was in the past primarily concerned with building and developing knowledge-based systems, an objective which put knowledge engineering in a niche of the world-wide research efforts at best as mentioned in this paper.
Abstract: Knowledge Engineering was in the past primarily concerned with building and developing knowledge-based systems, an objective which puts Knowledge Engineering in a niche of the world-wide research efforts at best. This has changed dramatically: Knowledge Engineering is now a key technology in the upcoming knowledge society. Companies are recognizing knowledge as their key assets, which have to be exploited and protected in a fast changing, global and competitive economy. This situation has led to the application of Knowledge Engineering techniques in Knowledge Management. The demand for more efficient (business to) business processes requires the interconnection and interoperation of different information systems. But information access and integration is not an algorithmic task that is easy to solve: much knowledge is required to resolve the semantic differences of data residing in two information systems. Thus Knowledge Engineering has become a major technique for information integration. And, last but not least the fast growing World Wide Web generates an ever-increasing demand for more efficient knowledge exploitation and creation techniques. Here again Knowledge Engineering technologies may become the key technology for solving the problem. In this paper we discuss these recent developments and describe our view of the future.

55 citations

Journal ArticleDOI
TL;DR: Results show that ERP has no significantly positive effect on operational performance, but is a precedent of KM, and that KM affects operational performance positively and it has a mediating effect for the relationship between ERP and operational performance.

54 citations


Additional excerpts

  • ...It covers cognitive and technical elements (Nonaka and 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