The knowledge-creating company : how Japanese companies create the dynamics of innovation

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The knowledge-creating company : how Japanese companies create the dynamics of innovation

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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.

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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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Journal Article•

The quality of group tacit knowledge

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Zeynep Erden, Georg von Krogh, Ikujiro Nonaka

01 Jan 2009-Quality Engineering

TL;DR: This article develops a comprehensive model explaining different levels of tacit knowledge quality that a group can achieve and discusses managerial implications resulting from this model and outline imperatives for future theory building and empirical research.

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Abstract: Organizational knowledge creation theory explains the process of making available and amplifying knowledge created by individuals as well as crystallizing and connecting it to an organization's knowledge system. What individuals get to know in their (working) lives benefits their colleagues and, eventually, the wider organization. In this article, we briefly review central elements in organizational knowledge creation theory and show a research gap related to the quality of tacit knowledge in a group. We advance organizational knowledge creation theory by developing the concept of ''quality of group tacit knowledge.'' Based on this concept, we further develop a comprehensive model explaining different levels of tacit knowledge quality that a group can achieve. Finally, we discuss managerial implications resulting from our model and outline imperatives for future theory building and empirical research.

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185 citations

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

...Knowledge is one of the most important sources of competitive advantage for firms (Grant, 1996; Nonaka, 1990, 1991, 1994; Nonaka and Takeuchi, 1995; Nonaka and Toyama, 2003)....
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...This model is a contribution to organizational knowledge creation theory (Nonaka, 1994; Nonaka and Takeuchi, 1995; Nonaka et al., 2006; von Krogh et al., 2000) by filling a gap related to the GTK. 14 Aesthetics is the sensitive judgment of feelings, phantasms, fiction, and other things that the…...
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...First, in the front-end model of innovation, socialization, through which GTK is created, is a necessary, although not sufficient condition for knowledge creation (Kluge et al., 2001; Nonaka and Takeuchi, 1995; von Krogh et al., 2000)....
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...Next, we discuss the role of advanced information technology in enabling or constraining group members’ socialization and derive implications for the QGTK. Finally, we discuss managerial implications resulting from our model and outline imperatives for future theory building and empirical research....
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...…1992), ‘‘collective” (Alavi and Leidner, 2001; Gourlay, 2006; Leonard and Sensiper, 1998; Nonaka, 1994; Spender, 1996), ‘‘social” (Spender, 1996), ‘‘communal” (Brown and Duguid, 2001) or even ‘‘organizational” (Chou and He, 2004; Kogut and Zander, 1992; Nonaka and Takeuchi, 1995) tacit knowledge....
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Journal Article•DOI•

Information system development agility as organizational learning

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Kalle Lyytinen¹, Gregory M. Rose²•Institutions (2)

Case Western Reserve University¹, Washington State University Vancouver²

01 Apr 2006-European Journal of Information Systems

TL;DR: A theory ofISD agility is outlined that draws upon a model of IT innovation and organizational learning that adopts March's concepts of exploration and exploitation to investigate agility in the context of ISD organizations.

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Abstract: Information System Development (ISD) agility is concerned with why and how ISD organizations sense and respond swiftly as they develop and maintain Information System applications. We outline a theory of ISD agility that draws upon a model of IT innovation and organizational learning. The theory adopts March's concepts of exploration and exploitation to investigate agility in the context of ISD organizations. Depending on their learning focus, ISD organizations make choices as to what sensing and responding swiftly means. This is reflected in how they value speed in relation to other ISD process goals, including quality, cost, risk and innovative content. The paper examines two specific Research Propositions: (1) ISD organizations locate themselves into different innovation regimes with respect to their need for exploration and exploitation, and (2) their perceptions of agility differ in those regimes as reflected in their process goal priorities. We validate these propositions through an empirical investigation of changes in ISD organizations' process goals and innovation practices over a period of over 4 years (1999-2003), during which time they shied away from exploration to exploitation while innovating with Internet computing. These ISD organizations viewed agility differently during the studied time periods as reflected in how they traded innovative content or speed vis-a-vis the other process goals of cost, risk, and product quality. In conclusion, this paper discusses implications for future research on agility in ISD organizations.

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184 citations

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

...Exploitation mainly follows trial and error learning (Nelson & Winter, 1982; Levinthal & March, 1993; Nonaka & Takeuchi, 1995; Eisenhardt & Martin, 2000) and is focused on harnessing old certainties....
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Journal Article•DOI•

Corporate Governance and Intellectual Capital: some conceptualisations

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James J. Keenan¹, Maria Aggestam²•Institutions (2)

Fairfield University¹, Lund University²

01 Oct 2001-Corporate Governance: An International Review

TL;DR: In this paper, the authors focus on the fiduciary responsibility of corporate governance for creating, developing, and leveraging the intellectual capital existing and embedded in the people, structures, and processes of the firm.

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Abstract: One of the persistent problems facing corporate governance is the increasing shift toward knowledge-intensive organisations. This article focuses on the fiduciary responsibility of corporate governance for creating, developing, and leveraging the intellectual capital existing and embedded in the people, structures, and processes of the firm. Research and practice, traditionally concerned with governance responsibility for financial and physical capitals, has not much focused on the relations between governance and intellectual capital. Here, the authors’ intellectual capital paradigm is overlayered on a recent taxonomy of systems and features of corporate governance. The result is an explication of the role and characteristics of corporate governance in relation to the intellectual capital of the firm.

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184 citations

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

...Work in industry by Nonaka and Takeuchi (1995), based in part on earlier postulates by Polyani (1967), posits that knowledge is created in four different ways that are different combinations of explicit and tacit knowledge: socialisation, externalisation, internalisation and combination....
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Journal Article•DOI•

Personality traits, affective commitment, documentation of knowledge, and knowledge sharing

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Kurt Matzler¹, Birgit Renzl, Todd A. Mooradian², Georg von Krogh³, Julia Mueller¹ - Show less +1 more•Institutions (3)

University of Innsbruck¹, College of William & Mary², ETH Zurich³

19 Feb 2011-International Journal of Human Resource Management

TL;DR: In this paper, the authors report a study linking two elemental personality traits, Agreeableness and Conscientiousness, to knowledge sharing via affective commitment and documentation of knowledge, and conclude that agreeableness influences an individual's employive commitment to the organization, while conscientiousness predicts the documentation of the knowledge.

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Abstract: Managerial influences on knowledge sharing and the importance of knowledge sharing in strategic success of firms have been well studied. Some research and theory have considered the effects of relatively malleable and situation-specific individual characteristics, such as motivation and the perception of vulnerability, on knowledge sharing. Insufficient research has considered the effects of enduring individual differences (i.e. personality traits) on knowledge sharing, although personality traits have been shown to be robust predictors of workplace behaviors, attitudes, and performance. We report a study linking two elemental personality traits, Agreeableness and Conscientiousness, to knowledge sharing via affective commitment and documentation of knowledge: Agreeableness influences an individual's affective commitment to the organization; both affective commitment and Conscientiousness predict the documentation of knowledge: and, affective commitment and the documentation of knowledge influence knowledg...

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183 citations

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

...…is ‘the dynamic processes of interpersonal interaction (e.g. discussion, debate, or joint problem solving) through which “one unit (e.g. group, department, or division) is affected by the experience of another”’ (Nonaka and Takeuchi 1995; Argote and Ingram 2000, p. 151; Söderquist 2006, p. 499)....
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...According to Nonaka and Takeuchi ( 1995 ), knowledge sharing is a prerequisite for converting general ideas and concepts into specific products and services....
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...…been related to various antecedents including managerial actions and organizational structures (e.g. functional redundancy or overlapping; Nonaka and Takeuchi 1995) and situational factors (e.g. technology such as shareware; Hendriks 1999), transient individual psychological perceptions,…...
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...These findings extend the literature on knowledge management, which has emphasized environmental, especially managerial influences on knowledge sharing (Nonaka and Takeuchi 1995; Cabrera and Cabrera 2002), by including personal dispositions as determinants of knowledge sharing....
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...(Nonaka and Takeuchi 1995)....
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Journal Article•DOI•

Exploring knowledge exchange: A useful framework for practice and policy

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Vicky Ward¹, Simon Smith¹, Allan House¹, Susan Hamer¹•Institutions (1)

University of Leeds¹

01 Feb 2012-Social Science & Medicine

TL;DR: It is found that knowledge exchange can be understood as a dynamic and fluid process which incorporates distinct forms of knowledge from multiple sources and could help to reorient thinking about knowledge exchange and act as a starting point for further exploration and evaluation of the knowledge exchange process.

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182 citations

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

...However, with a few notable exceptions (Ferlie, Fitzgerald, Wood, & Hawkins, 2005; Nonaka & Takeuchi, 1995; Van de Ven, Polley, Garud, & Venkataraman, 1999), there are very few descriptions of how knowledge exchange unfolds in practice settings and, as Ferlie points out, even fewer of how it…...
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...The knowledgewhich is needed to solve problems and bring about changes is likely to be distributed throughout organisations and to come frommany different sources (Considine, Lewis, & Alexander, 2009; Nonaka & Takeuchi, 1995)....
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References

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Open Access

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Journal Article•DOI•

Review: Knowledge management and knowledge management systems: conceptual foundations and research issues

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Maryam Alavi¹, Dorothy E. Leidner²•Institutions (2)

Emory University¹, Texas Christian University²

01 Mar 2001-Management Information Systems Quarterly

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.

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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.

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9,531 citations

Journal Article•DOI•

Knowledge Management: An Organizational Capabilities Perspective

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Andrew H. Gold, Arvind Malhotra, Albert H. Segars

31 May 2001-Journal of Management Information Systems

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.

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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.

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4,646 citations

Journal Article•DOI•

Managing the co-creation of value

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Adrian Payne¹, Kaj Storbacka², Pennie Frow³•Institutions (3)

University of New South Wales¹, Nyenrode Business University², University of Sydney³

01 Mar 2008-Journal of the Academy of Marketing Science

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.

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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.

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3,114 citations

Journal Article•DOI•

The Influence of Intellectual Capital on the Types of Innovative Capabilities

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Mohan Subramaniam¹, Mark Youndt²•Institutions (2)

Boston College¹, Skidmore College²

01 Jun 2005-Academy of Management Journal

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.

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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

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3,008 citations

Journal Article•DOI•

Knowing in Practice: Enacting a Collective Capability in Distributed Organizing

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Wanda J. Orlikowski¹•Institutions (1)

Massachusetts Institute of Technology¹

01 May 2002-Organization Science

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.

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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.

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2,670 citations