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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.
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TL;DR: In this paper, the authors examine the organizational and geographical patterns of knowledge flows in the media industry of southern Sweden, an industry that is characterized by a strong "symbolic" knowledge base.
Abstract: This paper deals with geographical and organisational patterns of knowledge flows in the media industry of southern Sweden, an industry that is characterised by a strong ‘symbolic’ knowledge base. Aim is to address the question of the local versus the non-local as the prime arena for knowledge exchange, and to examine the organisational patterns of knowledge sourcing with specific attention paid to the nature of the knowledge sourced. Symbolic industries draw heavily on creative production and a cultural awareness that is strongly embedded in the local context; thus knowledge flows and networks are expected to be most of all locally configured, and firms to rely on informal knowledge sources rather than scientific knowledge or principles. Based on structured and semi-structured interviews with firm representatives, these assumptions are empirically assessed through social network analysis and descriptive statistics. Our findings show that firms rely above all on knowledge that is generated in project work through learning-by-doing and by interaction with other firms in localised networks. The analysis contributes to transcending the binary arguments on the role of geography for knowledge exchange which tend to dominate the innovation studies literature.

128 citations

Journal ArticleDOI
TL;DR: This research tested a transactive theory model of how individuals allocate and retrieve task-related information in work teams by exploring the role of communal information repositories in the context of human information resources.
Abstract: This research tested a transactive theory model of how individuals allocate and retrieve task-related information in work teams. It extended prior research by exploring the role of communal information repositories in the context of human information resources. Structural equation modeling of six integrated hypotheses revealed several significant results. First, usage of information repositories was significantly related to individual access to information. However, the relationship between individual direct information exchange with team members (the human repositories) and individual access to information was significant only among average-level users of organizational information repositories. Second, development of individual expertise directories significantly influenced individual direct information exchange with team members. Third, perceived usage of organizational information repositories by team members significantly influenced actual usage. Finally, technology-specific competence in using intranets significantly influenced the actual usage of intranets as organizational information repositories.

128 citations


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

  • ...Direct information exchanges provide opportunities for the learners to acquire tacit knowledge through close observations and joint personal interaction, a process that Nonaka and Takeuchi (1995) labelled “socialization of knowledge.”...

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Journal ArticleDOI
TL;DR: In this article, the authors question the explanatory role of the concept of opportunism in the transaction cost analysis of Oliver Williamson and his followers, and suggest that potential or actual opportunism emerges as the source of the "transaction costs" involved in monitoring and enforcing contracts.
Abstract: The object of the present essay is neither to overturn transaction cost economics nor to deny the reality of opportunism. Instead, it is to question the explanatory role of the concept of opportunism in the transaction cost analysis of Oliver Williamson and his followers. Williamson has suggested that potential or actual opportunism emerges as the source of the ‘transaction costs’ involved in monitoring and enforcing contracts. On the contrary, it is shown here that there are several additional and likely sources of contract default or incomplete performance. Williamson’s explanatory concentration on opportunism thus misidentifies the reasons for different hierarchical governance structures in the real world. As these additional sources are ignored, the emphasis on opportunism can impair a true understanding of the inner workings of the firm, and be a misleading guide for practical questions of organizational design and corporate strategy.

127 citations

Journal ArticleDOI
TL;DR: In this article, the authors investigate how student teachers benefit from authentic researcher experiences as part of their pre-service education and find that research studies promoted professional competences and supported students' growth toward evidence-based practice and 21st century skills.

127 citations


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

  • ...We have increasing evidence that the active process is both individual and also based on sharing and participation with different partners in a community (Nonaka & Takeuchi, 1995; Scardamalia, 2002; Sfard, 1998; Slavin, 1997)....

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Journal ArticleDOI
TL;DR: In this article, the authors analyzed the impact of knowledge sharing on the relationship between organizational culture and job satisfaction of ICT industry in Hong Kong so that appropriate strategies can be put in place by relevant decision-makers to enhance corporate performance.
Abstract: Purpose - The purpose of this article is to analyze the impact of knowledge sharing on the relationship between organizational culture and job satisfaction of ICT industry in Hong Kong so that appropriate strategies can be put in place by relevant decision-makers to enhance corporate performance. Design/Methodology/Approach - The research includes items of culture dimension, knowledge sharing dimension, job satisfaction dimension and demographic information. Data collected from 228 valid respondents by an internet-based self-administrative anonymous questionnaire survey were analyzed by factor analysis and multiple regressions; validity, reliability and the mediating effect of knowledge sharing were also tested. Findings - Research findings revealed that organizational culture significantly influences knowledge sharing and job satisfaction and that knowledge sharing plays an important mediating role between organizational culture and job satisfaction. Practical Implications - The insightful results provide empirical evidence as potential guidance to employers of ICT industries and management to establish appropriate strategies to retain valuable staff and improve the efficiency of their human resources including incentive and reward policies. Originality/Value - This research studied the relationships between organizational culture, knowledge sharing and job satisfaction in Hong Kong context since most of the previous studies has focused on western countries. It is unique in that it investigated the mediating effects of knowledge sharing on job satisfaction of ICT practitioners in Hong Kong. The results of this research provide empirical evidence to guide employers and managers towards a collaborative and beneficial organizational culture, enhancement of knowledge sharing practices, and sustainable human resource strategies. Keywords Organizational Culture, Knowledge Sharing, Job Satisfaction , China insurance Industry, Foreign Fund, Challenge

126 citations


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

  • ...The effectiveness of knowledge-driven work relies on the creation of new knowledge and the sharing of useful existing knowledge through the interaction of tacit and explicit knowledge (Nonaka and Takeuchi, 1995)....

    [...]

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