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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: 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


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

  • ...A knowledge-based perspective of the firm has emerged in the strategic management literature (Cole 1998; Spender 1996a, 1996b; Nonaka and Takeuchi 1995)....

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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


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

  • ...This type of interaction and collaboration is important when attempting to transmit tacit knowledge between individuals or convert tacit knowledge into explicit knowledge, thereby transforming it from individual to organizational level [84, 85, 86, 87]....

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  • ...Collaboration is seen as one of the key manners in which knowledge is transmitted and created within the organization [49, 74, 87, 89, 98]....

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  • ...The formal organizational structures within an organization may encourage or inhibit interactions among employees, a practice seen as vital in the effective management of knowledge [49, 87, 89, 94]....

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  • ...Nonaka and Takeuchi [87] develop a new organizational...

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  • ...Collaboration between individuals is also the basis for the socialization of knowledge [87]....

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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


Additional excerpts

  • ...Knowledge may also be thought of as ‘tacit’ and ‘explicit’ (Nonaka and Takeuchi 1995)....

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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


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

  • ...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....

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  • ...Not surprisingly, the process of innovation is commonly equated with an ongoing pursuit of harnessing new and unique knowledge (Nonaka & Takeuchi, 1995)....

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  • ...Several studies have underscored how new products embody organizational knowledge (e.g., Stewart, 1997), described innovation as a knowledge management process (e.g., Madhavan & Grover, 1998), and characterized innovative companies as knowledge creating (e.g., Nonaka & Takeuchi, 1995)....

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Journal ArticleDOI
01 Feb 2009
TL;DR: It is suggested that the competence to do global product development is both collective and distributed, grounded in the everyday practices of organizational members, and not a static embedded capability or stable disposition.
Abstract: Knoving in practice: Enacting a collettive capability in distributed organizing - 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 o\ 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.

2,661 citations


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

  • ...…examine the various strategies, routines, and techniques through which different types of knowledge are created, codified, converted, transferred, and exchanged (Nelson and Winter 1982, Leonard-Barton 1992, Hedlund 1994, Nonaka 1994, Nonaka and Takeuchi 1995, Winter 1987, Teece 1998, Hansen 1999)....

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  • ...Indeed, “knowledge” has become the watchword of contemporary organizations, and research interest in knowledge, knowledge-based organizations, and knowledge management has accelerated (Kogut and Zander 1992, Starbuck 1992, Nonaka and Takeuchi 1995, Tsoukas 1996, Teece 1998)....

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References
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Journal ArticleDOI
TL;DR: This paper used the replicator-interactor framework to understand the evolution of organizations and found that core Darwinian principles, resulting from abstract ontological communality rather than analogy, apply to social evolution.
Abstract: The terms ‘evolution’ and ‘coevolution’ are widely used in organization studies but rarely defined. Often it is unclear whether they refer to single entities or populations. When specific evolutionary processes are suggested, the labelling is often misleading. For example, in the debate over the roles of individual adaptation and competitive selection, the ‘selectionist’ position of Michael Hannan and John Freeman, which emphasizes the role of selection and stress the limits of individual firm adaptability, is often described as ‘Darwinian’ whereas opposing views that emphasize adaptability are described as ‘Lamarckian’. But these labels are not strictly dichotomous. Scholars have shown that core Darwinian principles, resulting from abstract ontological communality rather than analogy, apply to social evolution. This opens up a research agenda using the principles of generalized Darwinism and the replicator–interactor framework to help understand the evolution of organizations. Some illustrations of the c...

95 citations

Journal ArticleDOI
TL;DR: In this paper, an integrative framework of absorptive capacity (AC) and inbound open innovation is developed for a firm to develop new ideas and turn them into profitable innovations on a sustained basis.

95 citations

02 Jun 2006
TL;DR: Alvarez is Principal Investigator of CyberBridges (NSF Award #OCI-0537464) to create a new generation of scientists and engineers who are capable of integrating cyberinfrastructure into the whole educational, professional, and creative process of diverse disciplines.
Abstract: textHeidi was a PhD candidate at the Department of Decision and Information Sciences at Rotterdam School of Management, Erasmus University in the Netherlands from 2004-2006. She holds a Masters of Arts in English (1999) from Florida International University (FIU) and a Bachelor of Science in Education from the University of Miami (1979). She was presented with FIU’s Presidential Award for outstanding contributions in research and education for her work on the Inter-regional Grid Enabled Center for High Energy Physics Research and Educational Outreach at FIU (CHEPREO, 2003). She also holds Executive Development certification from the FIU College of Business (2002). Heidi L. Alvarez is the Director at the Florida International University (FIU) Center for Internet Augmented Research and Assessment (CIARA), where she is responsible for support of the division’s directive to offer Internet Augmented Research and Assessment, Internet2, and high-performance next generation networking services to research and education institutions. She develops and implements information technology grant activities with local, state and federal agencies, either solely or in collaboration with various colleges and offices of the University, with an emphasis on science and educational outreach collaboration. Alvarez works with colleagues and collaborators to plan and implement high performance Research and Education (R&E) networks and US e-Science initiatives in South and Central America, Mexico and the Caribbean. Alvarez is Principal Investigator of CyberBridges (NSF Award #OCI-0537464) to create a new generation of scientists and engineers who are capable of integrating cyberinfrastructure into the whole educational, professional, and creative process of diverse disciplines. She has served as Co-PI for AMPATH since 2000, Co-PI for CHEPREO since 2003, and the Western Hemisphere Research and Education Network (WHREN) – Links Interconnecting Latin America (LILA) since 2005. She served as Director of Information Technology Research for the Madrid-Miami Center, Madrid, Spain, for a year in 2002-2003. The Madrid Center for Education, Research and Development focuses on three areas of importance to South Florida and greater Madrid: immigration, economic development and information technology.

95 citations

01 Jan 2004
TL;DR: In this paper, a case study was conducted to establish the ways in which the academic librarians of the University of Natal, Pietermaritzburg Libraries could add value to their services by engaging with knowledge management.
Abstract: Evolving information and knowledge has impacted all organisations, including academic libraries. This has made knowledge management become important. The conventional function of academic libraries is to collect, process, disseminate, store and utilise information to provide service to the university community. However, the environment in which academic libraries operate today is changing. Academic libraries are part of the university and its organisational culture. Whatever affects universities has an impact on academic libraries. As a result, the role of academic libraries is changing to provide the competitive advantage for the parent universities. The success of academic libraries depends on their ability to utilise information and knowledge of its staff to better serve the needs of the academic community. This requires academic librarians to reappraise their functions, expand their roles and responsibilities to effectively contribute and meet the needs of a large and diverse university community. Knowledge management is a viable means in which academic libraries could improve their services in the present knowledge era. This is a report of the results of a case study conducted to establish the ways in which the academic librarians of the University of Natal, Pietermaritzburg Libraries could add value to their services by engaging with knowledge management.

95 citations

Journal ArticleDOI
TL;DR: In this paper, the influence of error incident characteristics on organizational learning among operators in the chemical process industry is investigated, and the authors recommend attention towards the promotion of learning from conditions that do not necessarily encourage employees to learn.

94 citations