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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: The study identified human resource management as the weakness of the German knowledge management practice and found an inherent contradiction between the goals of attracting promising students to a career in science and securing mobility.
Abstract: Purpose – This paper aims at studying implicit knowledge management practices in research groups using a theoretical model of knowledge creation. The goal is to identify factors that contribute to high knowledge productivity. Based on the findings of a study of German research groups, implications for developing countries shall be discussed.Design/methodology/approach – A total of 15 in‐depth face‐to‐face interviews with heads of German academic research groups in the field of physics were conducted. The questions referred to the current practices of knowledge creation and knowledge management and to the subjective assessments of these practices.Findings – The study identified human resource management as the weakness of the German knowledge management practice. There seems to be an inherent contradiction between the goals of attracting promising students to a career in science and securing mobility. Knowledge management and infrastructure otherwise seems well‐developed and the heads of research groups co...

52 citations


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

  • ...Nonaka and Tackeuchi (1995) outline the process by which an individual’s personal knowledge (tacit) can be transformed into organizational knowledge (explicit) that contributes to the success of the company as a whole....

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  • ...The most prominent contributions to knowledge creation theory, so far, come from Nonaka and Tackeuchi (1995) and Krogh (1998)....

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Journal ArticleDOI
TL;DR: Use of the Timed-PDCA concept makes it possible to pursue productivity improvement in the current works including nurturing innovation workers concurrently, and managing the business-to-business sales process was chosen as the first concrete application.
Abstract: This paper deals with the productivity improvement of knowledge work. The productivity of knowledge work is improved through innovations with knowledge creation. The author points out that knowledge is created through the knowledge worker's mental activity involving the interaction of three important factors, i.e., information, knowledge and insight. Knowledge workers can augment their capability to exploit knowledge and information through their personal learning efforts and/or through access to appropriate external knowledge and information sources. Although importance of sharing information and knowledge has been widely discussed in earlier studies for knowledge management and social networking services, there were only few discussions on the importance of the third factor, insight. The author discusses that insight is the key for knowledge creation and it has a special nature different from the other two: it cannot be acquired through learning, but can become usable by activating undeveloped portions of native capabilities. Only knowledge workers who have good insight have the awareness to realize innovations necessary in business. These people are newly defined as Innovation Workers. In order to substitute for inefficient conventional on-the-job trainings to nurture innovation workers, a Timed-PDCA concept is proposed in this paper. The use of the Timed-PDCA concept makes it possible to visualize the progressive status of knowledge work as well as on-going thoughts of workers, and also periodically to enforce the worker for seriously evaluating the current situation and revising the action plan towards the final goal. Repeating such a process helps cultivate undeveloped portions of native capabilities of the worker. Visualization of work progress and worker's thoughts enable supervisors to coach workers in a timely and appropriate manner. Thus, use of the Timed-PDCA concept makes it possible to pursue productivity improvement in the current works including nurturing innovation workers concurrently. Although its application can be usefully made on any knowledge works to be managed on the time axis, managing the business-to-business sales process was chosen as the first concrete application. The paper introduces the development details of the system and its managerial effects after deployment.

52 citations


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

  • ...‘‘Explicit’’ knowledge is a type of knowledge which can be articulated in formal language including grammatical statements, mathematical expressions, specifications, manuals, and so forth [5,18]....

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  • ...From the early 1990s, there have been studies made under the category of ‘‘knowledge management’’ [4,5], assuming that the productivity difference between production work and non-production work is coming from the ease of knowledge sharing....

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  • ...On the other hand, ‘‘tacit’’ knowledge is only presented through metaphors, drawings and various methods of expression not requiring a formal use of language [5,19]....

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  • ...The former type of knowledge is classified as ‘‘explicit’’ knowledge and the latter type as ‘‘tacit’’ knowledge by Nonaka and Takeuchi [5], who are known for their study of knowledge management, and they claim that excellent companies utilize tacit knowledge better than their rivals [4,5]....

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09 Sep 2010
TL;DR: In this paper, the authors investigated the interrelations between knowledge and entrepreneurship and their consequences with regard to economic performance, and found that entrepreneurship catalyzes the transformation of new knowledge into innovation and knowledge plays a significant role in stimulating innovation performance and SME growth.
Abstract: textThis book investigates the interrelations between knowledge and entrepreneurship, and their consequences with regard to economic performance. Both knowledge and entrepreneurship are recognized as new twin driving forces for economic growth. Recent studies suggest that neither knowledge nor entrepreneurship alone is sufficient to drive growth. Investing in new knowledge is only a necessary condition; new knowledge needs to be exploited and put into commercial use such that it can lead to higher levels of competitiveness and economic growth. Entrepreneurship is acknowledged to play an important role in this process. It is thus essential for economists and policy-makers to understand how knowledge and entrepreneurship relate to each other and why they lead to economic growth. The five empirical chapters included in this book provide new insights into aforementioned issues on the firm- and country-level. Chapter 2 is based on a country-level analysis and identifies the moderating role of entrepreneurship in turning knowledge into innovation, which may ultimately lead to economic growth. Chapters 3 through 5, taking a firm-level perspective, investigate how small and medium-sized enterprises (SMEs) manage their knowledge assets (including organization knowledge and human resources) to stimulate innovation performance. Chapter 6 pays special attention to the determinants of SME growth. The findings of the chapters indicate that entrepreneurship catalyzes the transformation of new knowledge into innovation on the one hand; and the other hand, knowledge plays a significant role in stimulating innovation performance and SME growth.

52 citations


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

  • ...Such knowledge is often poorly-documented, idiosyncratic and is difficult to formalize, communicate and articulate through a formal systematic solution (Polanyi, 1966; Nonaka and Takeuchi, 1995)....

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  • ...The dynamic capabilities perspective emphasizes that a firm’s abilities to renew and to develop its organizational capabilities are essential for building and sustaining competitive advantage (Kogut and Zander, 1993; Nonaka and Takeuchi, 1995; Grant, 1996; Spender, 1996; Teece et al., 1997; Eisenhardt and Martin, 2000)....

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  • ...The distinction between explicit and tacit knowledge is important as it determines the strategies, routines and policies used by a firm to organize its knowledge processes (Nonaka and Takeuchi, 1995; Inkpen and Dinur, 1998)....

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  • ...51 from one person to the other (Nonaka, 1994; Nonaka and Takeuchi, 1995; Nonaka and Tomaya, 2003), is a dominant peculiarity of KM in SMEs (Desouza and Awazu, 2006)....

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  • ...These practices are mainly concerned with unlocking tacit knowledge into explicit knowledge – a process referred to in the KM literature as externalization (Nonaka, 1994; Nonaka and Takeuchi, 1995; Nonaka and Tomaya, 2003)....

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Dissertation
01 Jan 2003
TL;DR: In this article, a qualitative field study of sixty-two professional workers was conducted in Tokyo, Japan during the summer of 2002, and the authors discussed a distinct mode of mobility in mobile professional work, characterised not only by extensive geographical movement but also by operational flexibility and intense interaction.
Abstract: Currently, mobility is a significantly pervasive term; the concept is being widely used in multiple discussions including social, economic, political, and technological debates. However, the theoretical grounding of the concept is surprising unstable. This thesis aims to offer a theoretical foundation for the concept of mobility, particularly in contemporary work contexts. With support of information and communication technologies (ICTs) in general and mobile technology in particular, contemporary work activities are increasingly distributed and dynamically conducted in various locations. In such an emerging work environment, maintaining a highly level of 'mobility' is becoming critical for contemporary workers, particularly for mobile professionals. Based on the theoretical considerations on the concept of mobility, this thesis empirically explores the dynamic and heterogeneous nature of mobile professionals' work practices. In order to appreciate and explain the nature of mobility in contemporary work, this thesis specifically addresses the emerging work practices of mobile professionals. the data collection consisting of in-depth interviews and ad-hoc observations of sixty0two professional workers was conducted in Tokyo, Japan during the summer of 2002. Informed by the results of this qualitative field study, the thesis discusses a distinct mode of mobility in mobile professional work. The mode of mobility is characterised not only by extensive geographical movement but also by operational flexibility and intense interaction in mobile professional's dynamic work activities. Based on these theoretical and empirical discussions, this thesis aims: 1) to theoretically underpin our understanding of mobility in contemporary work contexts; 2) to offer empirically grounded implications for the post-bureaucratic, fluid organising of work, organisation, and technology.

52 citations


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

  • ...It is widely acknowledged that knowledge has become a critical resource for companies’ competitiveness in a wide range of industries (Davenport and Prusak, 1998; Kogut and Zander, 1996; Nonaka and Takeuchi, 1995)....

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Posted Content
TL;DR: In this article, the authors synthesize the theoretical research on entrepreneurship and social capital undertaken in previous studies, and present a multi-dimensional view of entrepreneurship, concluding that the primary role of entrepreneurs in organisation emergence is to acquire knowledge and create social capital properly.
Abstract: This paper attempts to synthesise the theoretical research on entrepreneurship and social capital undertaken in previous studies, and presents a multi-dimensional view of entrepreneurship. In examining overviews of past single perspective entrepreneurship research, this study shows that the primary role of entrepreneurs in organisation emergence is to acquire knowledge and create social capital properly. This process is necessarily accompanied by creation of knowledge communities to establish the domain consensus of new organisations among various stakeholders paying particular attention to the fragility and dysfunctional side of entrepreneurship and social capital. The paper concludes with a hypothesis and suggestions towards a future research agenda. It is hoped that, as a result of this theoretical development, this paper will help to focus greater attention on the concept of entrepreneurship in studies of management development.

52 citations


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

  • ...Also, with attention concentrating on the importance of knowledge as a factor for economic re-vitalisation (Drucker, 1993; Nonaka and Takeuchi, 1995), universities must inevitably play a role in enhancing the flow of knowledge across organisations....

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  • ...The organisational knowledge creation theory of Nonaka and Takeuchi (1995) is also frequently applied to various studies in the regional context....

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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