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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: In this article, the authors present a method for publishing maps in a GIS format, together with spatially referenced raw field data, field photographs, explanation of the interpretation process and background information relevant to the map area.
Abstract: Abstract Traditional methods of geological mapping were developed within the inherent constraints imposed by paper-based publishing. These methods are still dominant in the earth sciences, despite recent advances in digital technology in a range of fields, including globalpositioning systems, geographical information systems (GIS), 3-D computer visualization, portable computer devices, knowledge engineering and artificial intelligence. Digital geological mapping has the potential to overcome some serious limitations of paper-based maps. Although geological maps are usually highly interpretive, traditional maps show little of the raw field data collected or the reasoning used during interpretation. In geological mapping, interpretation typically relies on the prior experience and prior knowledge of the mapper, but this input is rarely published explicitly with the final printed map. Digital mapping techniques open up new possibilities for publishing maps digitally in a GIS format, together with spatially referenced raw field data, field photographs, explanation of the interpretation process and background information relevant to the map area. Having field data in a digital form allows the use of interpolation methods based on fuzzy logic to quantify some types of uncertainty associated with subsurface interpretation, and the use of this uncertainty to evaluate the validity of competing interpretations.

72 citations

Journal ArticleDOI
TL;DR: The result indicated that affective commitment had a significant positive effect on OPO but no effect on KPO, and the relationship between affectivecommitment and key knowledge sharing was multi-mediated by OPO and common knowledge sharing.
Abstract: Purpose – The purpose of this paper is to investigate the meditating role of psychological ownership which includes both organisation-based psychological ownership (OPO) and knowledge-based psychological ownership (KPO) on the relationship between affective commitment and knowledge sharing. Design/methodology/approach – This paper is an empirical study based on structural equation modelling, with a sample of 293 employees from 31 high-technology firms in China. Findings – The result indicated that affective commitment had a significant positive effect on OPO but no effect on KPO; OPO was positively related to both common and key knowledge sharing, while KPO exerted a negative impact on both; common knowledge sharing was positively related to key knowledge sharing; the relationship between affective commitment and key knowledge sharing was multi-mediated by OPO and common knowledge sharing. Originality/value – OPO and KPO play an essential role in transferring the effect of employees’ affective commitment ...

71 citations

Journal ArticleDOI
TL;DR: In this paper, the authors explore the essential link between knowledge and action through an empirical investigation of the organizational conditions and managerial labour needed to preserve knowledge-ability within a transnational organization.
Abstract: Despite a growing acknowledgement in the literature of the `socially embedded' character of organizational knowledge, in this article we argue that conceptualizations of knowledge management have remained aloof from the agency that they seek to inform, particularly in relation to managing within physically dispersed organizations. We seek, therefore, to explore the essential link between knowledge and action (`knowledge-ability') through an empirical investigation of the organizational conditions and managerial labour needed to preserve knowledge-ability within a transnational. In order to achieve this, we compare the experiences and practices of three managers located in China, Columbia and Australia as they seek both to communicate knowledge of their local context to the remote centre in order to influence policy and gather knowledge of what is happening remotely in order to coordinate their local action with shifts in corporate thinking. A model of the resources needed in order to limit and repair the ...

71 citations

Posted Content
TL;DR: In this article, the authors make use of the cluster concept and other theoretical approaches of the new economic geography contributed to the popularisation of regional development concepts, and a substantial feature of this focus on the region is that measures, which have so far had a national orientation (and for those the question about the distribution of innovative potentials in space was not or was only implicitly raised), have to be adapted to the specific structures and potential of individual regions.
Abstract: In recent years, not only has the network paradigm become the starting-point for policy measures aiming at a better exploitation of innovation potentials, but also the region, ie sub-national spatial entities, has been made an important platform for innovation policy implementation by national governments Specifically, the cluster concept and other theoretical approaches of the new economic geography contributed to the popularisation of regional development concepts A substantial feature of this focus on the region is that measures, which have so far had a national orientation (and for those the question about the distribution of innovative potentials in space was not or was only implicitly raised), have to be adapted to the specific structures and potential of individual regions However, not every region in a country can develop into a high-tech island equipped with leading-edge technology, industry and research For many regions and their economic actors, the only development option is to carry out supplementary functions for other regions, clusters and economic activities or to focus on the exploitation of endogenous potential and strengths

71 citations

Journal ArticleDOI
TL;DR: The authors argue the need for coherent, holistic frameworks offering insightful understandings as well as viable, connected and synergistic solutions to schools in addressing pressing problems arising from the acknowledged gaps between research, practice and professional development.
Abstract: This paper argues the need for coherent, holistic frameworks offering insightful understandings as well as viable, connected and synergistic solutions to schools in addressing pressing problems arising from the acknowledged gaps between research, practice and professional development. There is a need to conceptualise a comprehensive conceptual framework that rationalises, constructs and connects salient professional development concepts and practices fit for purpose in twenty-first-century schools. Specifically, three themes conceptualise existing problems faced by schools and their possible solutions: first, bridging the research–policy–practice gap by mobilising knowledge more effectively through knowledge producers and consumers working collaboratively; second, valuing and integrating both tacit knowledge and academic coded knowledge; and third, raising the professionalism and reflectivity of teachers and leaders. However, a new organisational and human infrastructure is needed to enable these solution...

71 citations