Book•
The knowledge-creating company : how Japanese companies create the dynamics of innovation
01 Jan 1995-
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.
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TL;DR: In this paper, the authors used creativity theory as a heuristic device to develop hypotheses on the relation between strategic human resource practices and a firm's capability to generate product innovations, finding that the use of standby contracts is associated with significantly lower levels of innovativeness.
Abstract: Using creativity theory as a heuristic device, I develop hypotheses on the relation between strategic human resource practices and a firm's capability to generate product innovations. My empirical tests in a sample of 988 Dutch firms indicate the importance of task autonomy, training and performance-based pay for generating incremental innovations. Regarding radical innovations, the results point to the importance of task autonomy and flexible working hours. The use of standby contracts is associated with significantly lower levels of innovativeness. We also find interaction effects between individual HR practices, between HR practices and firm size, and between HR practices and R&D intensity.
348 citations
Cites background from "The knowledge-creating company : ho..."
...Next to training, creativity can also be enhanced if employees are exposed to a broad range of perspectives and information, and teamwork is argued to be a fruitful mechanism to achieve this (Nonaka and Takeuchi 1995; Kang et al. 2007)....
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TL;DR: This study demonstrates through structural equation modeling (SEM) that higher-order dynamic capabilities in services are generated as a result of collaboration between stakeholders and reveals empirical evidence for an ongoing process of continuous dynamic capability building in accordance with the changing dynamics of business.
Abstract: Service organizations increasingly create new service offerings that are the result of collaborative arrangements operating on a value network level. This leads to the notion of “elevated service offerings,” our definition of service innovation, implying new or enhanced service offerings that can only be eventuated as a result of partnering, and one that could not be delivered on individual organizational merits. Using empirical data from a large telecommunications company, we demonstrate through structural equation modeling (SEM) that higher-order dynamic capabilities in services are generated as a result of collaboration between stakeholders. Furthermore, it is through collaboration and education of the stakeholders that additional higher-order capabilities emerge (customer engagement [CuE], collaborative agility [CA], entrepreneurial alertness [EA], and collaborative innovative capacity), all of which influence the service innovation outcome. Our study also reveals empirical evidence for an ongoing process of continuous dynamic capability building in accordance with the changing dynamics of business. Managers of service organizations should recognize the potential embedded in these higher-order skill sets, starting from collaboration, learning, and management of creative ideas for both strategic and operational benefits. Moreover, the capabilities of CA, EA, and CuE are even more important in managing the flexibility, timely delivery, and reliability of service offerings. Managers should take measures to inculcate, promote, and manage these dynamic capability skill sets to foster innovation in services.
347 citations
Cites background from "The knowledge-creating company : ho..."
...Employee capital refers to interorganizational product, service, and process knowledge present in their employees’ minds (Nonaka & Takeuchi, 1995; den Hertog, 2000) and the management-driven reward systems with recognition mechanisms prevailing across partnerships as a means for personal motivation…...
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...Managers of service organizations should recognize the potential embedded in these higher-order skill sets, starting from collaboration, learning, and management of creative ideas for both strategic and operational benefits....
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IBM1
TL;DR: It is argued that it is essential for those designing knowledge management systems to consider the human and social factors at play in the production and use of knowledge.
Abstract: Knowledge management is often seen as a problem of capturing, organizing, and retrieving information, evoking notions of data mining, text clustering, databases, and documents. We believe that this view is too simple. Knowledge is inextricably bound up with human cognition, and the management of knowledge occurs within an intricately structured social context. We argue that it is essential for those designing knowledge management systems to consider the human and social factors at play in the production and use of knowledge. We review work—ranging from basic research to applied techniques—that emphasizes cognitive and social factors in knowledge management. We then describe two approaches to designing socially informed knowledge management systems, social computing and knowledge socialization.
346 citations
TL;DR: While perceived self‐efficacy and anticipated reciprocal relationships had a positive impact on attitude toward knowledge sharing, expected extrinsic rewards did not show a significant relationship with this variable.
Abstract: – This paper aims to evaluate the influence of different factors on knowledge donation and collection. The examined factors are among those determinants which comprise different aspects of knowledge sharing behaviour in an organisational context., – Based on the widely accepted theory of planned behaviour (TPB), we tried to develop a comprehensive model. The model covered different individual and organisational factors. Responses to a total of 502 questionnaires were considered. Structural equation modelling was then used to test the research model and hypotheses., – This research evaluated the influence of a series of potential factors on knowledge sharing behaviour. While perceived self‐efficacy and anticipated reciprocal relationships had a positive impact on attitude toward knowledge sharing, expected extrinsic rewards did not show a significant relationship with this variable. Organisational climate had a positive impact on subjective norms about knowledge sharing. In addition, the level of information and communication technology usage reflected a positive effect on knowledge sharing behaviour. Finally, significant relationships were found between the TPB elements., – This paper has tried to provide a comprehensive understanding about knowledge sharing facilitators in the oil industry. Since there was a lack of such research in an Iranian context, this paper can provide theoretical basis for future researches as well as practical implications for managers and practitioners.
342 citations
Cites background from "The knowledge-creating company : ho..."
...Continuous knowledge management (KM) can promote organisational innovation and play a key role in the organisation’s success (Nonaka and Takeuchi, 1995)....
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...Finally, KM can result in other organisational outcomes that can consequently lead to competitive advantage (Nonaka and Takeuchi, 1995)....
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TL;DR: In this paper, the relationship between technological and organizational innovation, and territories, is discussed, and the relationship is connected to interactions between learning processes, institutions, and learning processes is discussed.
Abstract: The article focuses on the relationship between technological and organizational innovation, and territories. This relationship is connected to interactions between learning processes, institutions...
341 citations
Cites background from "The knowledge-creating company : ho..."
...The problem raised is in essence one of organizing the product development phase in order effectively to handle the coordination of interacting activities with the aim of creating new knowledge (Nonaka and Takeuchi, 1995)....
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References
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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
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
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
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
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