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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: There is strong empirical support that tacit routine compatibility leads to implementation success in mergers and acquisitions (M & As), and there are also results demonstrating how tacit routine compatible affects implementation outcomes in different functions.
Abstract: Purpose – This paper aims to theorize how tacit knowledge influences implementation success in mergers and acquisitions (M & As), and contrasts this with explicit knowledge. Tacit knowledge can be a source of sustained competitive advantage because its lack of codifiability precludes easy appropriation by competitors. However, such non-codifiability also makes it difficult to transfer knowledge within a firm. M & As exemplify this challenge because they are often motivated by opportunities for transferring knowledge. With differing demands for tacit and explicit knowledge across departments (Sales and Operations), the empirical results demonstrate how tacit routine compatibility affects implementation outcomes in different functions. Design/methodology/approach – This research draws from a survey of 86 M & A implementation processes between 1996 and 2002, using seemingly unrelated regression to analyze the predictions. Findings – There is strong empirical support that tacit routine compatibility leads to ...

76 citations

Journal ArticleDOI
TL;DR: This survey examines the use of wikis on a variety of organisational tasks that include the codification of explicit and tacit organisational knowledge and the formulation of corporate communities of practice, as well as more specific processes such as the collaborative information systems development.
Abstract: The wiki technology is increasingly being used in corporate environments to facilitate a broad range of tasks. This survey examines the use of wikis on a variety of organisational tasks that include the codification of explicit and tacit organisational knowledge and the formulation of corporate communities of practice, as well as more specific processes such as the collaborative information systems development, the interactions of the enterprise with third parties, management activities and organisational response in crisis situations. For each one of the aforementioned corporate functions, the study examines the findings of related research literature to highlight the advantages and concerns raised by the wiki usage and to identify specific solutions addressing them. Finally, based on the above findings, the study discusses various aspects of the wiki usage in the enterprise and identifies trends and future research directions on the field.

76 citations

Journal ArticleDOI
TL;DR: The authors examined the interaction between stock prices and exchange rates in Australia and found evidence of a positive co-integrating relationship between these variables, with Granger causality found to run from stock prices to the exchange rate during the sample period.
Abstract: The aim of this paper is to examine the interaction between stock prices and exchange rates in Australia. During the period of the study, the value of the stock market increased by two-thirds and the Australian dollar exchange rate appreciated by almost one-third. The empirical analysis employed provides evidence of a positive co-integrating relationship between these variables, with Granger causality found to run from stock prices to the exchange rate during the sample period. Although commodity prices have not been included, the significance of the results lends support to the notion that these two key financial variables interacted in a manner consistent with the portfolio balance model, that is, stock price movements cause changes in the exchange rate. This challenges the traditional view of the Australian economy as export-dependent, and also suggests that the Australian stock market has the depth and liquidity to adequately compete for both domestic and international capital against other larger markets.

76 citations

Book
01 Nov 2008
TL;DR: A review of understandings in the literature about roles and identities of professional staff in higher education and the implications for careers and professional development is presented in this article, with a focus on the role and identity of professionals.
Abstract: A review of understandings in the literature about roles and identities of professional staff in higher education and the implications for careers and professional development.

76 citations

Journal ArticleDOI
TL;DR: In this article, the authors investigated the influence of initial planning on the success of NPD projects and found that the ability to rapidly react to changes later in the process and to improvise may lead to success.
Abstract: The domain of New Product Development (NPD) is subject to considerable uncertainties. Aside from market-related sources of uncertainty, the degree of innovativeness of the underlying product concept is a significant source of uncertainty, as unclear goals and specifications like, e.g. product specifications may lead to substantial delays in the project. However, companies are required to manage the innovation process as efficiently as possible. The resulting conflicting demands often leave companies struggling to achieve both efficiency as well as flexibility due to their often opposing implications for organizing and managing NPD projects. In this context, planning plays a central role; however, its usefulness for NPD project success is perceived quite differently. While there are reports about a positive influence of initial planning on various success measures, others have questioned the effectiveness of elaborated initial planning and contend that the ability to rapidly react to changes later in the process and to improvise may lead to success in NPD. This study aims at achieving a better understanding of planning in NPD by investigating a sample of 475 Research & Development projects in Japanese electrical and mechanical engineering companies. Regression analysis is used to shed more light on the interplay of planning intensity, changes, and the degree of technological newness of the NPD project and their influence on project success. Our results indicate planning to be of value for different types of innovation projects. Furthermore, the influences of the variables in question vary with the success measures that are taken into account, indicating that a more detailed and contingent understanding of planning in NPD needs to be developed.

76 citations