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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
25 Apr 2002
TL;DR: An activity theory model and a mediatingartifacts hierarchy were employed to help identify the needs for tools for customers support engineers who documented solutions to customer problems, a knowledge authoring activity.
Abstract: An activity theory model and a mediating artifacts hierarchy were employed to help identify the needs for tools for customer support engineers who documented solutions to customer problems, a i>knowledge authoring activity. This activity also involves customer support engineers who assist Hewlett-Packard software product users. The particular tools to be designed were knowledge-authoring tools embedded in the customer support tracking application suite, SupportTracker. The research analyzed the role of tensions between the elements of Engestrom's activity theory model. The research also explored the benefits of specific interpretations of Engestrom's refinement of Wartofsky's mediating artifacts hierarchy. The hierarchy contributed to the identification of desired characteristics of mediating artifacts, particularly tools. The findings included an interpretation of the ``where-to'' artifact concept as supporting an understanding of the entire activity system as an evolving entity. Specific interventions were used to achieve a positive impact on the evolution of the activity system.

102 citations


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

  • ...” Nonaka and others’ models for knowledge management acknowledge that much of what makes an organization valuable is exactly that implicit knowledge that individuals acquire through experience but which is very difficult to codify [Nonaka 1995]....

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Journal ArticleDOI
TL;DR: A novel use of a new general explanation methodology inside an intelligent system in a real-world case of business-to-business sales forecasting, showing how to solve a decision support problem, namely that the best performing black-box models are inaccessible to human interaction and analysis.
Abstract: Uniform and comprehensive explanations for an arbitrary black-box prediction model.Interactive what-if analysis for the evaluation of decision options.Support for validation and updates of decision makers' mental models.Real-world application on a difficult business problem - sales forecasting.The real-world business-to-business sales data set used is publicly available. A complexity of business dynamics often forces decision-makers to make decisions based on subjective mental models, reflecting their experience. However, research has shown that companies perform better when they apply data-driven decision-making. This creates an incentive to introduce intelligent, data-based decision models, which are comprehensive and support the interactive evaluation of decision options necessary for the business environment.Recently, a new general explanation methodology has been proposed, which supports the explanation of state-of-the-art black-box prediction models. Uniform explanations are generated on the level of model/individual instance and support what-if analysis. We present a novel use of this methodology inside an intelligent system in a real-world case of business-to-business (B2B) sales forecasting, a complex task frequently done judgmentally. Users can validate their assumptions with the presented explanations and test their hypotheses using the presented what-if parallel graph representation. The results demonstrate effectiveness and usability of the methodology. A significant advantage of the presented method is the possibility to evaluate seller's actions and to outline general recommendations in sales strategy.This flexibility of the approach and easy-to-follow explanations are suitable for many different applications. Our well-documented real-world case shows how to solve a decision support problem, namely that the best performing black-box models are inaccessible to human interaction and analysis. This could extend the use of the intelligent systems to areas where they were so far neglected due to their insistence on comprehensible models. A separation of the machine learning model selection from model explanation is another significant benefit for expert and intelligent systems. Explanations unconnected to a particular prediction model positively influence acceptance of new and complex models in the business environment through their easy assessment and switching.

102 citations


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

  • ...These activities have been proved to increase adoption speed; namely, a focused effort is needed to overcome resistance when users question/rebuilt their AC CE PT ED M AN US CR IP T existing perspectives (Nonaka and Takeuchi, 1995)....

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  • ...AC CE PT ED M AN US CR IP T existing perspectives (Nonaka and Takeuchi, 1995)....

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Journal ArticleDOI
TL;DR: This paper argues that there has been a limited engagement with issues surrounding the politics of knowledge, and offers a series of concepts encouraging sensitivity to the relationship between knowledge, power, and interests.
Abstract: While there is an increasing recognition of the social character of knowledge in segments of the literature on knowledge management, this paper argues that there has been a limited engagement with issues surrounding the politics of knowledge. There is now a well-established critique of technically-led knowledge management practices in which knowledge is treated in passive, objectivised, and static terms. A key element of this critique concerns the limits of codification strategies directed at making tacit knowledge explicit. This is founded upon an interpretative conceptualisation of inter-subjective understanding as always provisional, incomplete, and embedded in contexts of social action. While sympathetic to this position, it is argued that there is more to considering knowledge practices than the problem of understanding. Shared understanding, where participants to an interaction achieve a satisfactory interpretation of their respective positions, in no way implies mutual agreement about the validity of these positions. Drawing on insights from Habermas about models of social action and knowledge-guiding interests, we offer a series of concepts encouraging sensitivity to the relationship between knowledge, power, and interests. Aspects of the argument are then illustrated with case examples drawn from research into organisational knowledge in companies producing and using complex products and systems.

101 citations


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

  • ...Thus, while much of the knowledge management literature, following Nonaka (1991, 1994) and Nonaka and Takeuchi (1995), recognises a distinction between tacit and explicit knowledge, the emphasis is typically on finding ways of surfacing, externalising, or converting the former into the latter so…...

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Journal ArticleDOI
TL;DR: In this article, the effect of speed of internationalization on long-term performance of Spanish listed firms has been analyzed using knowledge-based view and organizational learning theory, and the results contribute to the existing IB literature on the performance of FDI, cross-country knowledge transferability, and nonsequential entry.

101 citations


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

  • ...Since decision making is time consuming and learning in foreign markets is achieved through several cycles (Knight and Liesch, 2002; Nonaka and Takeuchi, 1995), trying to speed up the internationalization process leads to diminishing returns as a result of the emergence of time-compression…...

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  • ...We develop a theoretical framework that is grounded on the knowledge-based view (Grant, 1996; Kogut and Zander, 1993; Martin and Salomon, 2003; Mudambi, 2002) and the organizational learning theory (Cohen and Levinthal, 1990; Huber, 1991; March, 1991; Nonaka and Takeuchi, 1995)....

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  • ...…measures are a better fit to study the outcomes of speed of internationalization than short-term performance measures since learning in foreign markets is achieved in the long-term, as previously stated in the organizational learning theory (Knight and Liesch, 2002; Nonaka and Takeuchi, 1995)....

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Journal ArticleDOI
TL;DR: In this article, the authors investigate the process of knowledge sharing between project teams and use a case study approach to investigate the needs for separating the two teams' knowledge sharing in different domains.
Abstract: This article investigates the process of knowledge sharing between project teams and uses a case study approach. This is especially relevant, as organizations face both the needs for separating wor...

101 citations


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

  • ...Observations are necessary to share tacit knowledge that cannot be articulated (Nonaka & Takeuchi, 1995)....

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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