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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
Seung-Wan Kang1
TL;DR: The transfer of innovation between organisational members has recently drawn attention from both academia and business because corporate competitiveness is linked directly to the diffusion of innov... as mentioned in this paper, which is linked to the competitiveness of companies.
Abstract: The transfer of innovation between organisational members has recently drawn attention from both academia and business because corporate competitiveness is linked directly to the diffusion of innov...

78 citations

Journal ArticleDOI
TL;DR: In this article, the authors developed a model for risk management of knowledge loss in a project-based organization in Iran using a multi-stage research approach, which includes a six-step integrated model that manages the risk of critical knowledge in the case study.
Abstract: Purpose – This paper seeks to develop a model for risk management of knowledge loss in a project‐based organization in Iran.Design/methodology/approach – This study uses a multi‐stage research approach. In the first stage, existing practices are examined to develop a model for risk management of knowledge loss. In the second stage, the model is evaluated by testing it in a case study. The methods integrated as the foundations of the Integrated KM and RM model are: the PMBOK risk management (RM) approach, the Fraunhofer IPK knowledge management (KM) model, and the TVA knowledge risk assessment framework.Findings – The analytical approach includes a six‐step integrated model that manages the risk of critical knowledge in the case study. The results show that, after a year of implementing the model, the job positions facing knowledge loss were reduced by 88 percent.Research limitations/implications – The integrated KM and RM model can be used to assist the planning, establishment and evaluation of knowledge ...

78 citations

Journal ArticleDOI
01 Jun 2006
TL;DR: The ESRC Learning How to Learn Project's Staff Questionnaire administered in 2002 and 2004 as discussed by the authors addresses the question, "What organizational conditions foster successful classroom promotion of learning how to learn?" The Questionnaire returns were obtained from primary and secondary support staff, teachers and managers at 32 schools.
Abstract: This article addresses the question, ‘What organizational conditions foster successful classroom promotion of Learning How to Learn?’. Data are reported from the ESRC Learning How to Learn Project’s Staff Questionnaire administered in 2002 and 2004. In 2002, 1212 Questionnaire returns were obtained from primary and secondary support staff, teachers and managers at 32 schools. In 2004, 698 returns were obtained from 23 schools. Thirty items in Section A are about classroom assessment, 28 items in Section B are about teachers’ learning, and 26 items in Section C are about school management practices and systems. Factor analysis generated sets of factors from items in each of the three sections of the Questionnaire. Levels of teachers’ values and practices are reported and compared for each factor. These factors were then used in multiple regression analyses of baseline responses to the Questionnaire in order to explore relationships between classroom assessment, teachers’ learning and school management prac...

78 citations

Journal ArticleDOI
TL;DR: In this paper, the authors define the concept of Crowdsourcing of Inventive Activities (CIA) and stress the advantages and limits of CIA by using two complementary theories of the firm.
Abstract: The purpose of this paper is twofold: First we define the concept of Crowdsourcing of Inventive Activities (CIA) and we emphasise its differences with the crowdsourcing of routine activities and the crowdsourcing of content. Then we stress the advantages and limits of CIA by using two complementary theories of the firm: Transaction cost theory and the evolutionary theory of the firm. Specifically, we show that CIA may emerge only if knowledge is sufficiently codified and if a legal protection is possible (e.g. via patents). This work therefore builds theoretical predictions that can be tested in further works. Beyond this analysis, our work underlines issues for the traditional theories of the firm that will have to be clarified: for instance, does the emergence of crowdsourcing lead to rethinking the reasons why firms exist and the definition of their boundaries?

78 citations

Journal ArticleDOI
Niall Hayes1
TL;DR: How the disembedding of social relations and their rearticulation across different tracts of time and space are implicated in knowledge working is explored within the context of the UK selling division of a multi-national pharmaceutical company.

78 citations