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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 reveal that social capital and relational conflict among family members do not affect product development directly, as existing theory suggests, but only through internalization of knowledge among families members.
Abstract: Understanding the forces that support and inhibit product development (PD) in family firms is central to explaining their long-term success and survival Our study reveals that social capital and relational conflict among family members do not affect PD directly, as existing theory suggests, but only through the internalization of knowledge among family members In contrast, family members’ affective commitment to the family firm is so powerful that it has both a mediated and a direct effect on PD These results differ across generations of the controlling family, therefore offering an extension of existing theories of knowledge and PD in family firms

163 citations


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

  • ...This effort requires “the constant interaction of a multidisciplinary team whose members work together from start to finish” (Nonaka & Takeuchi, 1995, p. 242)....

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01 Nov 2005
TL;DR: In this article, the authors present a set of definitions for integrative and related research concepts and discuss the process of knowledge production in the context of integrative landscape research in addition to criteria for integration and different levels of stakeholder participation.
Abstract: Recent surveys of integrative landscape research projects and their funding bodies have revealed a lack of common understanding of integrative research concepts such as interdisciplinarity and transdisciplinarity This lack of common understanding has had negative consequences for the success of integrative landscape research projects This chapter presents a set of definitions for integrative and related research concepts The production of new knowledge - also in the form of new theory and method development - is a characteristic of integrative research Therefore, this paper also discusses the process of knowledge production in the context of integrative landscape research In addition we discuss criteria for integration and different levels of stakeholder participation We introduce a conceptual model, the knowledge cycle, as a way to illustrate the process of specific and generic knowledge production in integrative research Finally, we comment on different aspects of reflection in integrative research

163 citations


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

  • ...Nonaka and Takeuchi (Nonaka and Takeuchi 1995) use the terms tacit knowledge as subjective knowledge and explicit knowledge as objective knowledge; however, we use the terms in a more specific sense, adapted to the needs of a research context....

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Journal ArticleDOI
TL;DR: In 2008, the research project on sustainable management of land and water resources in Khorezm/Uzbekistan at the Center for Development Research, Germany initiated a participatory approach to innovation development and diffusion with local stakeholders as mentioned in this paper.
Abstract: In 2008, the research project on Sustainable Management of Land and Water Resources in Khorezm/Uzbekistan at the Center for Development Research, Germany initiated a participatory approach to innovation development and diffusion with local stakeholders Selected agricultural innovations, developed by the project and identified as ‘plausible promises’, are since then tested and modified accordingly by teams of researchers, local farmers and water users This paper discusses the challenges faced in this process of joint experimentation and learning between researchers and local stakeholders whose behaviours, attitudes and actions are heavily shaped by the local context, academic discipline and hierarchical culture of knowledge governance

162 citations


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

  • ...While explicit knowledge refers to knowledge documented and made available in books and databanks, the notion of tacit knowledge focuses on experience gained through action (Nonaka and Takeuchi, 1995; Evers et al, 2009)....

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  • ...Most of it nevertheless can be characterised as tacit knowledge, experience based on and gained through action (Nonaka and Takeuchi, 1995)....

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Journal ArticleDOI
TL;DR: In this paper, the authors argue that more monitoring is nof always better, and explore, through a six-sector framework, how more extensive use of information benefits or damages value creation and affects its distribution.
Abstract: We evaluate how changes in information use affect agency relationships. Information asymmetry redistributes value, but imperfect monitoring also encourages agents to take inefficient actions to influence this redistribution, thereby reducing joint agency value. Changing focus, from minimizing principals' costs to maximizing joint agency value, we argue that more monitoring is nof always better, and we explore, through a six-sector framework, how more extensive use of information benefits (or damages) value creation and affects its distribution.

162 citations

Journal Article
TL;DR: A review of the theory relating to ICT implementation in construction organisations and the nature and extent of intraorganisational factors influencing ICT diffusion within large ICT-experienced construction organisations is rigorously identified and discussed.
Abstract: SUMMARY: Emerging information and communication technology (ICT) introduces opportunities for improving communication to enhance effectiveness of many construction processes at each project phase as well as creating new business opportunities. Thus, perceived ICT benefits have motivated numerous construction organisations to adopt and invest in this technology. However, many construction organisations have found that the ICT investment has failed to meet their expectations. One significant problem is a lack of understanding of how to actually implement ICT into a construction organisation. This may lead to ICT implementation failure or retardation by all users within a construction organisation. In addition, a lack of focus on actual ICT implementation may explain why ICT implementation problems still occur. Before substantial progress can be made to remedy deficiencies in ICT implementation, a better understanding is needed about the context and influence of a range of workplace, organisational and personal factors on ICT implementation. The general focus of this paper is directed upon ICT implementation in construction organisations, with a specific focus using results from a study of a small but indicative sample of Australian ICT literate construction organisations. An improved understanding of ICT implementation can be achieved through a general survey of the literature and then testing theory developed from the literature using a representative pool of general construction organisation. Alternatively, a narrow focus could be directed at organisations that are already well experienced in the use of ICT. The authors concentrated upon Australian construction organisations with over a decade of experience in ICT implementation so that salient lessons learned could be more readily available for dissemination more widely. This paper attempts to fill ICT implementation gaps by focusing on ICT diffusion at the actual implementation stage. Its primary objective is to understand the nature of ICT diffusion within a construction organisation. It focuses on a review of the theory relating to ICT implementation. A list of 46 essential variables was developed from integration of three main theories: innovation diffusion, change management, and knowledge management. The paper also provides a brief summary of the variables tested through using factor analysis. Results indicate that these 46 variables formed 11 factors that can be grouped into management, individual characteristics, technology and workplace environment clusters. The contribution that this paper makes is to rigorously identify and discuss the nature and extent of intraorganisational factors influencing ICT diffusion within large ICT-experienced construction organisations. This will be useful for those interested in this area and provides a current literature review.

161 citations


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

  • ...In addition, variables from knowledge sharing and learning literature (Nonaka and Takeuchi 1995) also provides a basis for the development of skill among ICT users (Attewell 1992; Davenport and Prusak 1998) and also skill and knowledge transfer through communities of practice (Gallivan 2000; Wenger…...

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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