Book•
The knowledge-creating company : how Japanese companies create the dynamics of innovation
01 Jan 1995-
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.
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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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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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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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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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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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TL;DR: Although organizational characteristics and national culture were found to affect knowledge management, the data showed organizational characteristics to be a stronger prescriptive factor compared with national culture.
Abstract: Purpose – The purpose of this paper is to confirm quantitatively the previous finding that organizational characteristics influence knowledge management, and to assess whether the national culture of knowledge workers equally affects the management of knowledge.Design/methodology/approach – Based on data gathered from a questionnaire survey of a Japanese pharmaceutical company's 14 foreign subsidiaries, the effects of organizational characteristics and national culture on knowledge management were tested using multiple regression analysis.Findings – Although organizational characteristics and national culture were found to affect knowledge management, the data showed organizational characteristics to be a stronger prescriptive factor compared with national culture.Research limitations/implications – Because this research centered on a single company in the pharmaceutical industry, future research should attempt to confirm the validity of this framework in other industries.Practical implications – Changes ...
81 citations
TL;DR: A dimensional model of knowledge types that links the concepts from KM to more specific concepts from psychology and enables psychometric access to a part of non‐explicit knowledge through structural assessment techniques is developed.
Abstract: Purpose – This paper seeks to sharpen the concepts of tacit, implicit and explicit knowledge by linking them to findings from cognitive psychology and memory science and thus finding a possibility for measuring non‐explicit knowledge.Design/methodology/approach – A review of KM and cognitive science literature leads to a dimensional model of knowledge types that links the concepts from KM to more specific concepts from psychology. One central assumption of the model was empirically tested and put into practice in one small‐scale KM project.Findings – The concepts in KM can be linked to concepts from psychology and thus receive theoretical support. The developed model enables psychometric access to a part of non‐explicit knowledge through structural assessment techniques. Furthermore, the model has proven to be of value in a practical application in KM.Research limitations/implications – The experiment and the practical application are too small in scope to provide full support for the model. Further resea...
81 citations
TL;DR: By utilizing previous studies, the researchers present an integrated view of how learning organization affects knowledge creation and transfer.
Abstract: This paper describes how knowledge is created and transferred in organizations. It also discuses conditions required in promoting knowledge creation, the techniques used to capture knowledge in organizations, the nature of learning organizations and how it can influence knowledge creation and transfer. By utilizing previous studies, the researchers present an integrated view of how learning organization affects knowledge creation and transfer.
80 citations
TL;DR: A four-pronged approach toward enhancing knowledge contribution and reuse in organizations is suggested: 1) developing organizational trust; 2) facilitating intrinsic rewards for knowledge contribution, partly through organizational Trust; 3) the exercise of caution in the use of extrinsic rewards; and 4) the design of a KRS with a high level of searchability.
Abstract: Knowledge repository systems (KRSs) have gained popularity for enabling knowledge codification and reuse. This paper develops and tests a model of KRS success, including perceived KRS searchability, perceived KRS output quality, perceived usefulness, and user satisfaction, and examines how three aspects of social context (extrinsic rewards, intrinsic rewards, and organizational trust) affect these dimensions of KRS success. Empirical results from a survey of 141 KRS users in China and Singapore indicate that perceived KRS output quality depends on KRS searchability and the social context, perceived usefulness depends on perceived KRS output quality, and user satisfaction depends on perceived KRS output quality and perceived KRS searchability. However, the study provides some surprises: perceived KRS searchability only indirectly (through perceived KRS output quality) affects perceived usefulness, and the social context directly affects only perceived KRS output quality and not perceived usefulness. Our results suggest a four-pronged approach toward enhancing knowledge contribution and reuse in organizations: 1) developing organizational trust; 2) facilitating intrinsic rewards for knowledge contribution, partly through organizational trust; 3) the exercise of caution in the use of extrinsic rewards; and 4) the design of a KRS with a high level of searchability.
80 citations
01 Jan 2008
TL;DR: In this article, the authors investigate the sources of knowledge in an engineering firm in Australia and how it is organized and processed, and find that the absorbptive capacity of the firm to assimilate knowledge can encourage greater leverage for exploration potential leading to radical innovation; and reconfiguring exploitable knowledge for incremental improvements.
Abstract: In rapidly changing environments, organisations require dynamic
capabilities to integrate, build and reconfigure resources and competencies to
achieve continuous innovation. Although tangible resources are important to
promoting the firm’s ability to act, capabilities fundamentally rest in the
knowledge created and accumulated by the firm through human capital,
organisational routines, processes, practices and norms. The exploration for
new ideas, technologies and knowledge – to one side – and – on the other
one – the exploitation of existing and new knowledge is essential for
continuous innovation. Firms need to decide how best to allocate their scarce
resources for both activities and at the same time build dynamic capabilities to
keep up with changing market conditions. This in turn, is influenced by the
absorptive capacity of the firm to assimilate knowledge. This paper presents a
case study that investigates the sources of knowledge in an engineering firm in
Australia, and how it is organised and processed. As information pervades the
firm from both internal and external sources, individuals integrate knowledge
using both exploration and exploitation approaches. The findings illustrate that
absorptive capacity can encourage greater leverage for exploration potential
leading to radical innovation; and reconfiguring exploitable knowledge for
incremental improvements. This study provides an insight for managers in
quest of improving knowledge strategies and continuous innovation. It also
makes significant theoretical contributions to the literature through extending
the concepts of
80 citations