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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: A theoretical model concerning the connections between five facets of knowledge management (knowledge acquisition, knowledge sharing, knowledge creation, knowledge codification and knowledge retention) and job satisfaction is proposed in this paper.
Abstract: Purpose This paper aims to propose that knowledge management (KM) could be a way to nurture job satisfaction and examine how KM can increase individual employees’ job satisfaction. Design/methodology/approach A theoretical model concerning the connections between five facets of KM (knowledge acquisition, knowledge sharing, knowledge creation, knowledge codification and knowledge retention) and job satisfaction is proposed. It is then empirically tested with a structural equation modelling partial least squares analysis of a survey data set of 824 observations, collected from the members of a Finnish municipal organisation. Findings Existence of KM processes in one’s working environment is significantly linked with high job satisfaction. Especially intra-organisational knowledge sharing seems to be a key KM process, promoting satisfaction with one’s job in most employee groups. Interestingly, significant knowledge-based promoters of job satisfaction differ as a function of job characteristics. Practical implications KM has a strong impact on employee job satisfaction, and therefore, managers are advised to implement KM activities in their organisations, not only for the sake of improving knowledge worker performance but also for improving their well-being at work. Originality/value This paper produces knowledge on a type of consequence of KM that has been largely unexplored in previous research, individual job satisfaction. Also, it promotes moving the KM literature to the next stage where the impact of KM practices is not explored as a “one size fits all” type of a phenomenon, but rather as a contingent and contextual issue.

228 citations


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

  • ...For example, Nonaka and Takeuchi (1995) divide KM practices into knowledge creation, incorporation and dissemination....

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  • ...Therefore, organisations should also encourage frequent face-to-face communication and the creation of shared learning experiences, as well as build a knowledge-sharing culture (Nonaka and Takeuchi, 1995; Ståhle and Grönroos, 2000; Carpenter and Rudge, 2003; Dalkir, 2005)....

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  • ...This is understandable because their work mostly relates to coordinating activities between different resources within the organisation (Nonaka and Takeuchi, 1995)....

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  • ...As the only way to share it is in face-to-face interaction (Nonaka and Takeuchi, 1995), knowledge sharing is the key for managing tacit knowledge....

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  • ...In sum, the literature typically identifies four to six knowledge processes that are cyclically interrelated (Nonaka and Takeuchi, 1995; Demarest, 1997; Alavi and Leidner, 2001)....

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01 Mar 2002
TL;DR: As healthcare organisations seek to enhance safety and quality in a changing environment, organisational learning practices can help to improve existing skills and knowledge and provide opportunities to discover better ways of working together.
Abstract: As healthcare organisations seek to enhance safety and quality in a changing environment, organisational learning practices can help to improve existing skills and knowledge and provide opportunities to discover better ways of working together. Leadership at executive, middle management, and local levels is needed to create a sense of shared purpose. This shared vision should help to build effective relationships, facilitate connections between action and reflection, and strengthen the desirable elements of the healthcare culture while modifying outdated assumptions, procedures, and structures.

226 citations

Journal ArticleDOI
TL;DR: In this paper, two aspects of the simultaneity of production and consumption critically shape internationalization: the requirement for copresence, and consumer mobility, and a firm-focussed approach fails to address the changing international environment of the enterprise.

224 citations

Journal ArticleDOI
TL;DR: In this paper, a pan-European research project investigated individual's philosophy about truth, knowledge and the optimum approach of knowledge creation and highlighted significant misalignment between knowledge management requirements in epistemological terms and individual's perception of organizational knowledge management activities.
Abstract: Building on the complexities of organizational knowledge creation the paper explores the alignment of knowledge management practices with the epistemological beliefs of individuals or groups in organizations. A pan‐European research project investigated individual’s philosophy about truth, knowledge and the optimum approach of knowledge creation. These individual viewpoints and requirements are then contrasted with the knowledge management practices implemented in organizations. The results highlight significant misalignment between knowledge management requirements in epistemological terms and individual’s perception of organizational knowledge management activities. The paper claims these differences lie at the heart of problems companies experience with extracting value from knowledge management initiatives. The paper suggests ways of identifying and evaluating resource transformations in organizations, in order better to understand and manage knowledge creation to grow the intellectual capital of organizations.

222 citations

Journal ArticleDOI
TL;DR: In this article, a structural model of the "e-procurement effect" is proposed to define the dynamics of the e-procurement process in an organization and provide a foundation for a research stream into the transformational effect of e-ProCurement deployment.

221 citations

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