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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, a theoretical interpretative model is proposed to explain the formation of new models of inter-firm network within IDs, based on the analysis of several empirical studies on Italian IDs presented in the literature.
Abstract: Recently several Italian Industrial Districts (IDs) have been characterized by a profound change. The affirmation of leader firms and the restructuring of inter-firm networks can be considered as the principal phenomena of the process of change in IDs. The main aim of this paper is to analyse the change in the IDs, focusing on the networking process among firms, which has been stressed as one of the most important distinctive characteristics of this production model. With this aim, a theoretical interpretative model is proposed to explain the formation of new models of inter-firm network within IDs. The model, based on the analysis of several empirical studies on Italian IDs presented in the literature, suggests a correlation between the formation of a more structured network and the leader firm's strategies of growth. Furthermore, the proposed model has been supported by the results of an empirical investigation. The empirical investigation, adopting a multiple-case approach, involves eight in-depth case...

97 citations


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

  • ...This transformation is the result of a learning process that involves a radical modi® cation of strategic behaviour, organizational routines, and competencies of leader ® rms (Nonaka and Takeuchi 1995, Cohen 1996, Levitt and March 1996)....

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Journal ArticleDOI
TL;DR: In this paper, the authors explored the relationship between human resource practices and individual knowledge sharing in Taiwan's high-tech industries and found that the factor representing the perceived self-efficacy of knowledge sharing plays a very important role in the integrated knowledge-sharing model.
Abstract: Knowledge sharing is of central importance for the research and development (R&D) process. Because the process is extremely complicated and an employee possesses expertise only in a specific area, knowledge will not be available to others until the owner makes the objects of the knowledge available. It is, therefore, valuable to investigate how R&D professionals share knowledge with one another. This study explores the relationship between human resource (HR) practices and individual knowledge sharing in Taiwan's high-tech industries. The cross-sectional dataset comes from a sample of 368 R&D professionals from nine different high-tech companies. The findings indicate that the factor representing the perceived self-efficacy of knowledge sharing plays a very important role in the integrated knowledge-sharing model we developed. R&D professionals who believe that sharing will influence their performance will be more willing to share knowledge, and thus an effective sharing of knowledge will be more likely t...

97 citations


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

  • ...Tacit knowledge is difficult to share (Nonaka and Takeuchi 1995) and is not readily codified in writing (Blackler 1995)....

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  • ...Knowledge was recognized as an organization’s most important resource (Nonaka and Takeuchi 1995; Nahapiet and Ghoshal 1998), and firms seek knowledge management strategies to more effectively build a foundation for competitive advantage (McEvily, Das and McCabe 2000; Ipe 2003)....

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Journal ArticleDOI
20 Dec 2010
TL;DR: In this paper, a survey of 68 firms working on the auto components sector, established in the Northern of Spain and Northern of Portugal, found that the human capital dimensions (formation and knowledge creation, innovative behave, and incentives to innovation) influences each type of innovativeness capacity.
Abstract: Despite the importance of innovation and innovativeness within today’s economy, we know little about how intellectual capital of firms can contribute to a superior innovation at the firm’s level. Based on resources and knowledge-based views of firms we developed a hypothesis linking three dimensions of human capital (component of the intellectual capital) and the innovativeness of firms. As a representation of the firm’s innovativeness, we consider the product, process and management innovation. Using a survey from 68 firms working on the auto components sector, established in the Northern of Spain and Northern of Portugal, we found firstly, that innovativeness has two main dimensions, perfectly differentiated, the product-process innovation and the management innovation; secondly that the human capital dimensions (formation and knowledge creation, innovative behave, and incentives to innovation) influences differently each type of innovativeness capacity. We found that the different human capital dimension influences directly, only, the product-process innovativeness. More specifically only the innovative behavior and the incentives to innovation influence the product-process innovativeness. The formation and knowledge creation dimension doesn’t influence directly either the product-process innovativeness or the management innovativeness. Moreover, none of the human capital dimensions considered influence the management innovativeness directly. These results highlight the importance of human capital on innovative performance, and it allows identification of the most important dimensions that influence directly the different innovativeness capacities and more broadly, highlight the value of intellectual capital as a competitive advantage in contemporary times.

97 citations


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

  • ...…1998) others considerer that innovation is a result of the intellectual capital (Ahuja, 2000; Cohen & Levinthal, 1990; Nahapiet & Ghoshal, 2002; Nonaka & Takeuchi, 1995; Subramaniam & Youndt, 2005; Tsai & Ghoshal, 1998), others that the innovation process is a knowledge management process…...

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  • ...…1998), others that the innovation process is a knowledge management process (Ahuja, 2000; Cohen & Levinthal, 1990; Nahapiet & Ghoshal, 2002; Nonaka & Takeuchi, 1995; Subramaniam & Youndt, 2005; Tsai & Ghoshal, 1998), or that the different innovative capacities vary on the type of knowledge…...

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  • ...Some argue that intellectual capital is an innovation input (Ahuja, 2000; Cohen & Levinthal, 1990; Nahapiet & Ghoshal, 2002; Nonaka & Takeuchi, 1995; Subramaniam & Youndt, 2005; Tsai & Ghoshal, 1998) others considerer that innovation is a result of the intellectual capital (Ahuja, 2000; Cohen &…...

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Journal ArticleDOI
TL;DR: In this article, the impact of web knowledge sharing on organizational innovation and the moderating effect of IT skills on this relation is analyzed, and the main conclusions of this research can be valuable to SMEs that use or intend to use Internet technologies for knowledge management.
Abstract: This paper extends previous studies on knowledge management by analysing factors affecting Web Knowledge Sharing (WKS) in small- and medium-sized enterprises (SMEs). In addition, the impact of WKS on organizational innovation and the moderating effect of IT skills on this relation are analysed. Grounded in the technology-organization-environment (TOE) theory and the resource-based view (RBV), this paper develops an integrative research model, which analyses these relations using structural equation modelling on a data set of 535 Spanish SMEs. Results suggest that technological and organizational factors – ITexpertise and commitment-based human resources practices – positively influence WKS, while the contrary is found for environmental factors (customer power). In addition, results show that WKS contributes positively to organizational innovation, though support for the moderating effect of IT skills in this relation is not found. The main conclusions of this research can be valuable to SMEs that use or intend to use Internet technologies for knowledge management. Knowledge Management Research & Practice (2014) 12, 103–113. doi:10.1057/kmrp.2013.31; published online 29 July 2013

97 citations


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

  • ...Pedro Soto-Acosta1 Ricardo Colomo-Palacios2 and Simona Popa1 1University of Murcia, Spain; 2Universidad Carlos III de Madrid, Spain...

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Journal ArticleDOI
TL;DR: In this article, the authors discuss the challenges of knowledge management within intra-family succession against the background of the knowledge-based view and present the empirically confirmed strong relationship between relational competence and knowledge transfer within intrafamily succession.
Abstract: This article discusses the challenges of knowledge management within intrafamily succession against the background of the knowledge-based view. As a knowledge transfer is crucial for a successful business continuation, factors that promote the interpersonal knowledge transfer are identified. Since the quality of the relationship between successor and predecessor is considered a key determinant of knowledge transfer, the role of relational competence in the knowledge transfer process is analyzed. A laboratory experiment (N = 107) was conducted to test the derived hypotheses. In its conclusion, the article presents the empirically confirmed strong relationship between relational competence and knowledge transfer within intrafamily succession.

97 citations


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

  • ...It contains not only unarticulated mental models, beliefs, and insights, which are essential for perceiving and defining the environment, but also the abilities, know-how, and skills to perform tasks (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