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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 application of knowledge management (KM) approaches in managing indigenous knowledge (IK) for sustainable agricultural practices in developing countries, with a specific focus on Tanzania, was assessed.
Abstract: This paper is based on a PhD study (Lwoga, 2009) that sought to assess the application of knowledge management (KM) approaches in managing indigenous knowledge (IK) for sustainable agricultural practices in developing countries, with a specific focus on Tanzania. This study used a mixed-research method which was conducted in six districts of Tanzania. Non-participant observation, semi-structured interviews, and focus groups were used to collect primary data from small-scale farmers in the selected districts. A total of 181 farmers participated in the semi-structured interviews, where the respondents ranged between 27 and 37 per district. Twelve focus group discussions were conducted in the selected districts. The study revealed that IK was acquired and shared within a small, weak and spontaneous network, and thus knowledge loss was prevalent in the surveyed communities. There were distinct variations in the acquisition of agricultural IK both in different locations and between genders. Information and communication technologies (ICT), culture, trust, and status influenced the sharing and distribution of IK in the surveyed communities. The research findings showed that KM models can be used to manage and integrate IK with other knowledge systems, taking the differences into account (for example, gender, location, culture, infrastructure). The paper concludes with recommendations for the application of KM approaches for the management of IK and its integration with other knowledge systems for agricultural development in developing countries, including Tanzania.

117 citations


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

  • ...Management of agricultural indigenous knowledge Despite the fact that various KM models (Nonaka & Takeuchi, 1995; Probst et al., 2000; Small & Tattalias, 2000) use different labels to identify KM processes, the following KM processes were found relevant for the current study and they are discussed…...

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  • ...The social paradigm of the Probst, Raub and Romhardt KM model is also similar to the socialization subprocess (that is, transferring tacit-to-tacit knowledge) of the knowledge creation model of Nonaka and Takeuchi (1995)....

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  • ...Role of ICT in managing agricultural indigenous knowledge Various KM models (Nonaka & Takeuchi, 1995; Probst et al., 2000; Small & Tattalias, 2000) have indicated that ICT are significant in KM since they allow the movement of knowledge at increasing speeds and efficiencies, thus facilitating…...

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  • ...Knowledge development is an important building block in KM models, since it focuses on the development of new skills, new products, better ideas and more efficient processes (Nonaka & Takeuchi, 1995; Probst et al., 2000, p. 130)....

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  • ...Approaches towards the application of KM in the management of IK This study was guided by four KM models, with each model adding new insights and providing a range of possible solutions for KM practices (Boisot, 1987; Nonaka & Takeuchi, 1995; Probst, Raub, & Romhardt, 2000; Small & Tattalias, 2000)....

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Journal ArticleDOI
TL;DR: In this article, the authors examine issues of epistemology, power and culture with respect to their impact upon the use of information and communication technology (ICT) to manage knowledge within an organization.
Abstract: Our paper examines issues of epistemology, power and culture with respect to their impact upon the use of information and communication technology (ICT) to manage knowledge within an organization. ...

117 citations


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

  • ...It may also represent a response to loss of knowledge when seasoned employees, particularly middle managers, retire or are made redundant (Davenport and Prusak, 1998; Hull, 2000; Nonaka and Takeuchi, 1995)....

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Journal ArticleDOI
TL;DR: In this article, the authors examine the links developing between universities and their regions as observed in the UK and highlight interactions between public policy and institutional behaviour in a multi-level governance (MLG) structure at sub-national, national and European levels.
Abstract: This paper examines the links developing between universities and their regions as observed in the UK. It highlights interactions between public policy and institutional behaviour in a multi-level governance (MLG) structure at sub-national, national and European levels. Different strategic processes of networking between universities and the developing links with the Regional Development Agencies (RDAs) in nine English regions are illustrated, in light of the recent government policies which influence the resources and strategies of universities. Universities' wide range of activities and strategies at different geographical levels need to be strategically incorporated as part of regional innovation systems.

116 citations


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

  • ...As companies begin to describe themselves in terms of knowledge creation (Nonaka & Takeuchi, 1995), so universities respond by ‘positioning themselves as part of the knowledge economy’ (Etzkowitz & Leydesdorff, 1997)....

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Journal ArticleDOI
TL;DR: This paper builds upon integrative modeling work that composes a parsimonious, multidimensional, analytical framework for representing and visualizing dynamic knowledge, and focuses on understanding the dynamics of knowledge phenomenologically and on developing and applying techniques for modeling and visualize dynamic knowledge flows and stocks.
Abstract: Knowledge represents a critical resource in the modern enterprise. But it is dynamic and distributed unevenly. Capitalizing on this dynamic resource for enterprise performance depends upon its rapid and reliable flows across people, organizations, locations, and times of application. From a technological perspective, this points immediately to the design of information systems to enhance knowledge flows. The problem is, the design of information systems to enhance knowledge flows requires new understanding. The research described in this paper concentrates on understanding the dynamics of knowledge phenomenologically and on developing and applying techniques for modeling and visualizing dynamic knowledge flows and stocks. We draw key, theoretical concepts from multiple literatures, and we build upon integrative modeling work that composes a parsimonious, multidimensional, analytical framework for representing and visualizing dynamic knowledge. We then conduct field research to learn how this theoretical framework may be used to model knowledge flows in practice. By focusing this empirical work on an extreme organization and processes that involve and rely upon tacit knowledge, we illustrate how dynamic knowledge patterns can inform design in new ways. New chunks of kernel theory deriving from this fieldwork are articulated in terms of a propositional model, which provides a basis for the development of testable design theory hypotheses.

116 citations


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

  • ...reference disciplines to develop integrated models and to examine the dynamics of knowledge through multiple dimensions [16, 66, 89]....

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01 Jan 2011

116 citations


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

  • ...Macroeconomic studies have been complemented by microeconomic studies in the USA (Stiroh, 2003), the United Kingdom (UK), (Borghans and ter Weel, 2001; Dickerson and Green, 2004; Crespi and Pianta, 2008), Canada (Gera and Gu, 2004; Zoghi, Mohr, and Meyer, 2007), France (Askenazy, Caroli, and Marcus, 2001; Maurin and Thesmar, 2004), Finland (Leiponen, 2005), Japan (Nonaka and Takeuchi, 1995), and Switzerland (Arvanitis, 2005), which have found parallel changes at the industry or fi rm level....

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  • ...A 2002 survey of 2,024 million Web pages determined that by far the most content was in English: 56.4%; next were pages in German (7.7%), French (5.6%), and Japanese (4.9%).13 Very little content is available in languages indigenous to developing countries....

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  • ...…2008), Canada (Gera and Gu, 2004; Zoghi, Mohr, and Meyer, 2007), France (Askenazy, Caroli, and Marcus, 2001; Maurin and Thesmar, 2004), Finland (Leiponen, 2005), Japan (Nonaka and Takeuchi, 1995), and Switzerland (Arvanitis, 2005), which have found parallel changes at the industry or fi rm level....

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  • ...This fi nding corresponds to that in elementary schools in Japan (Ando, Takahira, and Sakamoto, 2004) in which students who used the Internet for Web browsing and message posting reported increases in positive attitudes toward learning....

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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