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: The theory of the knowledge-creating firm explains the differences among firms not as a result of market failure, but as a consequence of the firm's visions of the future and strategy.
Abstract: The theory of the knowledge-creating firm explains the differences among firms not as a result of market failure, but as a result of the firm's visions of the future and strategy. This paper proposes a framework to capture the dynamic process of knowledge creation in which knowledge is created through the dynamic interaction between subjectivity and objectivity. Knowledge is created through the synthesis of thinking and actions of individuals, who interact with each other within and beyond the organizational boundaries.
473 citations
TL;DR: The purpose of this article is to examine, in some unusual detail, a significant example of a failed knowledge management initiative in order to analyse what went wrong and to identify the key learning points.
Abstract: Large numbers of organizations are taking great interest in the idea of knowledge management and many are launching knowledge management initiatives and programmes. A large proportion of such initiatives will fail. Yet, despite the injunctions to “learn from failure”, little detailed attention has been paid to why and how these apparently popular initiatives run into difficulties. The purpose of this article is to examine, in some unusual detail, a significant example of a failed knowledge management initiative in order to analyse what went wrong and to identify the key learning points.
470 citations
TL;DR: In this paper, the authors explore the nature and relative importance of different types of interfirm relationships for new product development (NPD) success and explore the extent of use of external relationships in collaborative product development and find that customers are involved more frequently in joint development efforts.
461 citations
13 Jun 2005
TL;DR: In this article, the authors present a review of the state of the art in the field of strategic decision-making, focusing on the role of conversation and design in the formation of strategies.
Abstract: List of Figures. List of Tables. Contributors and Editors. Acknowledgments. Introduction. Part I: Origin and Process. 1. Emerging Issue in Strategy Process Research (Gregory G. Dess and G.T. Lumpkin). 2. Strategic Decision-Making (Paul C. Nutt). 3. Strategy Formulation: The Roles of Conversation and Design (Jeanne M. Liedtka). Part II: Theoretical Foundations. 4. Strategic Flexibility in the Old and New Economies (Kathryn Rudie Harrigan). 5. The Resource-based View: Origins and Implications (jay B. Barney and Asli M. Arikan). 6. A Stakeholder Approach to Strategic Management (R. Edward Freeman and John McVea). 7. Towards a Positive Interpretation of Transaction Cost Theory: The Central Roles of Entrepreneurship and Trust (Gareth R. Jones). 8. A Strategic Management Model of Agency Relationships in Firm Governance (Michael H. Lubatkin, Peter J. Lane and William S. Schulze). 9. Risk in Strategic Management Research (Philip Bromiley, Kent D. Miller and Devaki Rau). 10. Corporate Reputations as Economic Assets (Charles J. Fombrun). Part III: Strategy Types. 11. Competitive Dynamics Research: Critique and Future Directions (Ken G. Smith, Walter J. Ferrier and Hermann Ndofor). 12. Diversification Strategy Research at a Crossroads: Established, Emerging and Anticipated Paths (Donald D. Bergh). 13. Mergers and Acquisitions: A Value Creating or Value Destroying Strategy (Michael A. Hitt, R. Duane Irland and Jeffrey S. Harrison). 14. Strategic Alliances (Andrew C. Inkpen). 15. Restructuring Strategies of Diversified Business Groups: Differences Associated with Country Institutional Environments (Robert E. Hoskisson, Richard A. Johnson, Daphne Yiu and William P. Wan). 16. Global Strategic Management (Stephen Tallman). Part IV: Human Factors. 17. On Strategic Judgment (Richard L. Priem and Cynthia S. Cycyota). 18. Organizational Strucutr5e: Looking Through a Strategy Lens (Barbara Keats and Hugh M. O'Neill). 19. Corporate Governance (Sayan Chatterjee and Jeffrey S. Harrison). 20. Corporate Strategy and Ethics, as Corporate Strategy Comes of Age (Daniel R. Gilert , Jr.). 21. Business and Public Policy: Competing in the Political Marketplace (Gerald Keim). 22. Implementing Strategy: An Appraisal and Agenda for Future Research (Lawrence G. Hrebiniak and William F. Joyce). 23. Human Resources Strategy: The Era of our Ways (Scott A. Snell, Mark A. Shadur and Patrick M. Wright). 24. Strategy and Entrepreneurship Outlines of an Untold Story (S. Venkataraman and Saras D. Sarasvathy). Part V: Teaching Methods. 25. The Strategic Management Course: Tools and Techniques for Successful Teaching (Idalene F. Kesner). Index.
458 citations
TL;DR: The strategic role of the human resources department in identifying strategic and knowledge gaps using knowledge mapping is discussed and the drivers and implementation strategies for knowledge management programs are proposed.
Abstract: The successful implementation of new technologies is dependent on many factors including the efficient management of human resources. Furthermore, recent research indicates that intellectual assets and resources can be utilised much more efficiently and effectively if organisations apply knowledge management techniques for leveraging their human resources and enhancing their personnel management. The human resources departments are well positioned to ensure the success of knowledge management programs, which are directed at capturing, using and re‐using employees’ knowledge. Through human resources management a culture that encourages the free flow of knowledge for meeting organisational goals can be created. The strategic role of the human resources department in identifying strategic and knowledge gaps using knowledge mapping is discussed in this paper. In addition, the drivers and implementation strategies for knowledge management programs are proposed.
451 citations