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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
20 Jun 2009
TL;DR: The study reported here sought to obtain the clear articulation of asynchronous computer-mediated discourse needed for Carl Bereiter and Marlene Scardamalia’s knowledge-creation model by applying a coding scheme to the asynchronous online discourses of four groups of secondary school students.
Abstract: The study reported here sought to obtain the clear articulation of asynchronous computer-mediated discourse needed for Carl Bereiter and Marlene Scardamalia’s knowledge-creation model. Distinctions were set up between three modes of discourse: knowledge sharing, knowledge construction, and knowledge creation. These were applied to the asynchronous online discourses of four groups of secondary school students (40 students in total) who studied aspects of an outbreak of Severe Acute Respiratory Syndrome (SARS) and related topics. The participants completed a pretest of relevant knowledge and a collaborative summary note in Knowledge Forum, in which they self-assessed their collective knowledge advances. A coding scheme was then developed and applied to the group discourses to obtain a possible explanation of the between-group differences in the performance of the summary notes and examine the discourses as examples of the three modes. The findings indicate that the group with the best summary note was involved in a threshold knowledge-creation discourse. Of the other groups, one engaged in a knowledge-sharing discourse and the discourses of other two groups were hybrids of all three modes. Several strategies for cultivating knowledge-creation discourse are proposed.

243 citations


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

  • ...acceptance in education, it has become difficult to distinguish knowledge building from constructivist learning, and Bereiter and Scardamalia have begun to favor the term “knowledge creation,” which is well established in the literature on innovation (Gundling 2000; Nonaka and Takeuchi 1995)....

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  • ...Drawing from Bereiter’s analysis and work on expansive learning and knowledge-creating companies (Engeström 2001; Nonaka and Takeuchi 1995), Paavola et al....

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  • ...Commitment to shared goals within a team is also important in a variety of other innovative contexts (Gundling 2000; Lencioni 2002; Nonaka and Takeuchi 1995)....

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  • ...…Bereiter and Scardamalia have begun to favor the term “knowledge creation,” which is well established in the literature on innovation (Gundling 2000; Nonaka and Takeuchi 1995).1 The term refers to a set of social practices that advance the state of knowledge within a community over time (Paavola…...

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  • ...The term “knowledge creation” is used in the literature on expertise and innovation to describe how companies, organizations, and academic fields develop the ideas needed to sustain innovation (e.g. Engeström 2001; Gundling 2000; Nonaka and Takeuchi 1995)....

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Journal ArticleDOI
TL;DR: It is argued that context-aware applications capable of supporting complex, cognitive activities can be built from a model of context called Activity-Centric context, and the model is illustrated via a detailed example.

242 citations


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

  • ...From a knowledge management perspective, capturing and exploiting the context that surrounds an artefact may be one potential way to capture the tacit understanding [27] that existed when the artefact was created....

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Journal ArticleDOI
TL;DR: In this paper, Malecki et al. defined social capital as a culture of interaction among people, with productive economic outcomes Social capital promotes regional learning both within a region and beyond, as it reinforces openness to the ideas of others.
Abstract: Malecki E J Regional social capital: why it matters, Regional Studies Social capital refers to a culture of interaction among people, with productive economic outcomes Social capital promotes regional learning both within a region and beyond, as it reinforces openness to the ideas of others Regional cultures vary in the degree to which people – individually and within their organizations – trust and interact with one another, which is why regional outcomes vary Innovation, learning and entrepreneurship – key processes of regional development – take place largely within and among people as members of companies and territorial organizations Innovative milieus, industrial districts and knowledge economies are among the regions with extraordinary pools of social capital Malecki E J 区域社会资本:有何相关性,区域研究。社会资本指一种人与人之间互动的文化,同时产生生产性经济结果。由于强化了人与人之间理念的互通,社会资本能够促进区域内外的区域性学习。不同个体之间及其组织间的信任与互动程度存在不同程度的差异, 这正是不同区域存在差异的原因。 作为区域发展中的核心过程,创新、学习以及公司多出现在公司以及领域性组织成员内部及相互之间。创新、产业区以及知识经济往往存在于拥有突出社会资本的区域。 社会资本 学习型区域 创新 学习

242 citations


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

  • ...After acquiring knowledge, it is absorbed through the complex and time-consuming spiral of knowledge acquisition proposed by N onaka and T akeuchi (1995) ....

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  • ...After acquiring knowledge, it is absorbed through the complex and time-consuming spiral of knowledge acquisition proposed by NONAKA and TAKEUCHI (1995)....

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  • ...He finds that the strongest social capital of Japanese firms is internal to the firms – to a large degree, an intentional product of efforts to build ‘knowledge-creating companies’ (NONAKA and TAKEUCHI, 1995; NONAKA and TOYAMA, 2005)....

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Posted Content
TL;DR: The study finds that a lack of incentives and the absence of an appropriate information system are the most significant barriers to successful KM initiatives in projects.
Abstract: Purpose – The purpose of this study is to identify and examine various factors that influence the success or failure of knowledge management (KM) initiatives in project-based companies. Design/methodology/approach – Following a literature review, the study proposes a conceptual model of six factors of potential importance to the success of KM initiatives. The model is then examined through an online survey of project managers and assistant managers from project-based businesses in Finland.Findings – The study finds that a lack of incentives and the absence of an appropriate information system are the most significant barriers to successful KM initiatives in projects.Research limitations/implications – The findings of the study may be restricted in terms of generalisability because of the limited empirical study.Practical implications – Project managers should formulate an attractive incentive package to encourage project members to participate in KM initiatives and to suggest ideas for new KM opportunities. Managers should also ensure that an effective user-friendly information system is in place before introducing KM initiatives.Originality/value – The study proposes a new model of critical success factors for KM initiatives in the context of project-based business.

241 citations


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

  • ...In terms of the well-known four-step model of knowledge creation suggestion by Nonaka and Takeuchi (1995), which included the steps of ‘‘socialisation’’, ‘‘externalisation’’, ‘‘combination’’, and ‘‘internalisation’’ (SECI), the factor of coordination proposed in the present model can be said to…...

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  • ...A key element for success in any KM initiative is encouraging people to communicate and share their knowledge with others (Nonaka and Takeuchi, 1995)....

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Journal ArticleDOI
TL;DR: In this paper, the influence of transformational leadership on organizational innovation and performance was examined in a sample of 164 pharmaceutical firms and a global model was formulated and the hypotheses were tested using structural equations.
Abstract: Purpose – This empirical study aims to examine the influence of transformational leadership (TL) on organizational innovation (OI) and performance (OP) depending on the level of organizational learning in technological firms.Design/methodology/approach – The research examined a sample of 164 pharmaceutical firms. A global model is formulated and the hypotheses are tested using structural equations.Findings – First, the study shows a positive relation between TL and OI, between TL and OP and between OI and OP. Second, the study verifies that these relationships are more strongly reinforced in organizations with high‐organizational learning than in organizations with low levels of organizational learning. Third, the study supports the theoretical arguments made but not demonstrated empirically in the prior literature.Practical implications – Organizational learning takes places in a technological community of interaction in which knowledge is created and expands in a constant dynamic between the tacit and t...

240 citations


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

  • ...…capacity for systems thinking and shared vision (Coad and Berry, 1998; McGill et al., 1992; Senge et al., 1994), and qualities that foster interpersonal and collective shared spaces where knowledge for innovation is created and shared (Nonaka and Takeuchi, 1995; Slater and Narver, 1995)....

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  • ..., 1994), and qualities that foster interpersonal and collective shared spaces where knowledge for innovation is created and shared (Nonaka and Takeuchi, 1995; Slater and Narver, 1995)....

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  • ...Organizational learning and OI are dynamic capabilities united in the achievement of sustainable competitive advantages (Nonaka and Takeuchi, 1995; Calantone et al., 2002)....

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  • ...Thus, the process of organizational knowledge creation by which new knowledge is drawn from existing knowledge (organizational learning) stimulates OI (Cohen and Levinthal, 1990; Nonaka and Takeuchi, 1995)....

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  • ...This process takes place within a community of interaction in which knowledge is created and expands in a constant dynamic between the tacit and the explicit (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