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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 article, the authors proposed a theoretical framework for understanding risk allocation practice in public-private partnership (PPP) projects from the viewpoint of transaction cost economics (TCE), integrated with the resource-based view (RBV) of organizational capabilities.
Abstract: Risk allocation in public–private partnership (PPP) projects is currently claimed as capability driven. While lacking theoretical support, the claim is often ‘violated’ by current industrial practice. There is thus a need for formal mechanisms to interpret why a particular risk is retained by government in one project while transferred to private partners in another. From the viewpoint of transaction cost economics (TCE), integrated with the resource‐based view (RBV) of organizational capabilities, this paper proposed a theoretical framework for understanding risk allocation practice in PPP projects. The theories underlying the major constructs and their links were articulated. Data gathered from an industry‐wide survey were used to test the framework. The results of multiple linear regression (MLR) generally support the proposed framework. It has been found that partners' risk management routine, mechanism, commitment, cooperation history, and uncertainties associated with project risk management could s...

193 citations


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

  • ...Organizations develop capabilities by carrying out related activities repeatedly (Nonaka and Takeuchi, 1995)....

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Journal ArticleDOI
TL;DR: Results generally support the perspective that leaders should actively promote a single identity, and that organizational performance was lowest when disagreement about identity was extreme.
Abstract: This study examines how the organizational success of 113 nonprofit professional theatres was affected when two top leaders responsible for different parts of the organization held divergent views about organizational identity. Focusing on five values that differentiate theatres, we find that leaders' disagreement about organizational identity was related to lower ticket revenues and lower net income, and that organizational performance was lowest when disagreement about identity was extreme. Although some findings suggest that minor identity disagreement between leaders may not hurt organizations, results generally support the perspective that leaders should actively promote a single identity.

193 citations


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

  • ...Our results likewise appear to be consistent with Nonaka and Takeuchi (1995) , who suggested that total diversity among members of a workgroup is not desirable; rather, some similarity in perspective among group members is necessary to ensure enough common ground to facilitate successful group interaction....

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Book
15 Dec 2001
TL;DR: The authors provide new theoretical impetus for management researchers, while suggesting useful new methods and tools for practitioners, drawing on research by noted scholars in the fields of knowledge management and competence-based approaches to strategic management.
Abstract: From the Publisher: "Today's management thinking is centered on two fields: knowledge management and competence-based approaches to strategic management. Drawing on research by noted scholars in the fields, this volume will provide new theoretical impetus for management researchers, while suggesting useful new methods and tools for practitioners."

193 citations


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

  • ...Following Penrose (1959) and Polanyi (1958), management research generally makes a distinction between explicit and tacit forms of knowledge....

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Journal ArticleDOI
TL;DR: In this paper, the interplay between a firm's absorptive capacity (ACAP) and its technological and customer relationship capability contributes to its overall performance in terms of new product development, market performance and profitability.

192 citations


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

  • ...The creation of new products and services involves the combination of external and internal knowledge of the organization (Nonaka & Takeuchi, 1995; Nonaka, Toyama, & Hirata, 2008)....

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Journal ArticleDOI
TL;DR: Homophily of network ties in distributed teams in both task-related instrumental networks and non-task related expressive networks showed that bonding social capital can exert significant influence on performance.
Abstract: This research studied homophily of network ties in distributed teams in both task-related instrumental networks and non-task related expressive networks. Homophily of network ties was examined in terms of demographic and social characteristics, including gender, race, geographic location, and group assignment. Social network data were collected from 32 students enrolled in a distance learning class from two universities. MQAP regression analysis showed that homophily in gender and in race had no significant impact on the development of either instrumental or expressive ties. In instrumental networks, both homophily in group assignment and in location had significant impact on the development of network ties. In expressive networks, homophily in location had significant impact on the development of network ties, but the impact of homophily in group membership was only marginally significant. Further analysis of bonding ties with people of the same group and bridging ties with people from different groups showed that bonding social capital can exert significant influence on performance.

191 citations


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

  • ...…of Computer-Mediated Communication 11 (2006) 1062–1084 ª 2006 International Communication Association ties as a key strategy in managing knowledge itself, because firsthand experience through close contacts is the only avenue for people to acquire tacit knowledge (Nonaka & 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