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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 paper, the authors review what we know about the spatial manifestations of knowledge and the knowledge production function, which addresses the easily measured portion of knowledge produced, and propose an interactive and collective learning approach for knowledge and its geography.
Abstract: This paper reviews what we know about the spatial manifestations of knowledge. The knowledge production function addresses the easily measured portion of knowledge produced. Research on learning, particularly interactive and collective learning, in firms and in innovation systems, promises to unveil the human and organizational processes by which knowledge is created, stored, and transmitted to others. Our understanding of innovation and technological change depends on how well we tackle knowledge and its geography.

112 citations

Posted Content
TL;DR: In this paper, the effects of successes and failures on organizational learning are analyzed and compared with behavioral and cognitive approaches, illustrating these with examples of technological development by an interorganizational coalition and an example of industry-wide development during a business cycle.
Abstract: This chapter analyzes the effects of successes and failures on organizational learning. The analysis contrasts behavioral and cognitive approaches, illustrating these with an example of technological development by an interorganizational coalition and an example of industry-wide development during a business cycle.Behavioral approaches explain as much behavior as possible without allowing for conscious thought, so learning arises from automatic reactions to performance feedback. Because it is learners’ environments that generate this feedback, environments strongly influence what is learned. One advantage of behavioral approaches is that they can explain how effective learning can occur in spite of learners’ perceptual errors.Cognitive approaches describe learners as being able to perceive, analyze, plan, and choose; learning modifies cognitive maps that guide action. Cognitive approaches make effective learning dependent upon realistic perceptions, so these theories have difficulty explaining how learners can improve even though they misunderstand their environments. On the other hand, cognitive approaches can explain how people and organizations suddenly act in dramatically novel ways.These two approaches coexist because they can explain different phenomena and neither is adequate by itself. Most studies of learning by individual organizations have taken a cognitive approach; most studies of learning by populations of organizations have taken a behavioral approach. However, the distinction between behavior and cognition may be an abstraction that does not exist in the realities of daily life.

111 citations


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

  • ...Nonaka and Takeuchi (1995) maintained that Japanese companies have considerably greater ability to learn, improve, and restructure in spite of success than do Western companies....

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Journal ArticleDOI
TL;DR: This research seeks to focus on the implicit knowledge management processes being undertaken in professional quantity surveying firms in Hong Kong.
Abstract: Purpose – Quantity surveying firms are characterized by their professional identity and knowledge‐driven nature; knowledge is crucial to their success in the competitive and dynamic business environment. As knowledge management is still in its infancy in the construction industry and structured knowledge management processes have not yet been adequately deployed in the surveying discipline, this research seeks to focus on the implicit knowledge management processes being undertaken in professional quantity surveying firms in Hong Kong.Design/methodology/approach – A framework of knowledge processes was developed from a detailed literature review in an attempt to enhance the knowledge flow in Hong Kong professional quantity surveying firms. The applicability and validity of the framework were verified by quantitative research methods. Based on the proposed process model, a questionnaire survey was then conducted to study the opinions of professional quantity surveyors on the details of these processes; the...

111 citations


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

  • ...According to Nonaka and Takeuchi (1995), sharing of tacit knowledge is most effective through oral conversation and dialogues....

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Journal ArticleDOI
TL;DR: The results from this paper have shown that the implementation of SCM practices will interact with KM capabilities to influence firm performance.
Abstract: Purpose – The purpose of this paper is to investigate how supply chain management (SCM) practices and knowledge management (KM) capabilities affect firm performance. This study was conducted in the Asia Pacific region, which had not been examined before.Design/methodology/approach – A three‐phase statistical analysis which comprised phase one (convergent validity, reliability, and discriminant validity), phase two (mediated regression analysis) and phase three (path analysis) was used to analyze the data.Findings – The results from this paper have shown that the implementation of SCM practices will interact with KM capabilities to influence firm performance.Research limitations/implications – The proposed model does not consider firm performance from multiple perspectives. In addition, the use of longitudinal data would be more useful to examine how changes in certain variables affect performance.Practical implications – These findings provide important insights for managers to understand the disposition ...

111 citations


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

  • ...Hypotheses development KM capability and firm performance A central tenet underlying the existence of KM capabilities is their association with firm performance (Cohen and Levinthal, 1990; Nonaka and Takeuchi, 1995)....

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  • ...Technological infrastructure refers to the technology-enabled ties that exist within the firm (Grant, 1996); structural infrastructure refers to the presence of norms and procedural mechanisms (Nonaka and Takeuchi, 1995); while shared contexts comprise the cultural dimension (DeLong, 1997)....

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  • ...For the structural element of KM capability, structural flexibility through modularity in product and process design enhances collaboration among supply chain members (Sanchez and Mahoney, 1996; Nonaka and Takeuchi, 1995)....

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  • ...A central tenet underlying the existence of KM capabilities is their association with firm performance (Cohen and Levinthal, 1990; Nonaka and Takeuchi, 1995)....

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Posted Content
TL;DR: An overview of Knowledge Management and various aspects of secure knowledge management is presented and a case study of knowledge management activities at Tata Steel is discussed.
Abstract: Knowledge has been lately recognized as one of the most important assets of organizations. Managing knowledge has grown to be imperative for the success of a company. This paper presents an overview of Knowledge Management and various aspects of secure knowledge management. A case study of knowledge management activities at Tata Steel is also discussed

111 citations


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

  • ...‘Knowledge’ can be defined as a fluid mix of experience, values, contextual information and expert insight that offers a framework for assessing and incorporating new experiences and information....

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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