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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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11 Nov 2003
TL;DR: In this article, a prescriptive empirical model is constructed to test and validate the theory of a research problem, and the model is implemented using case study research (a qualitative data source) as a research instrument.
Abstract: ion The second step builds on the first step. The key issues from the descriptive empirical model are abstracted into a descriptive conceptual model. Theory formulation This descriptive conceptual model forms the foundation for a prescriptive conceptual model. This model comprises the theory with which the research problem may be solved. Implementation The theory from the prescriptive conceptual model is implemented. A prescriptive empirical model is constructed to test and validate the theory. Evaluation This final step evaluates the prescriptive empirical model(s). Additional requirements for improving the prescriptive conceptual model may result, which can serve as an initial theory in another inductive-hypothetical model cycle. Figure 2.1: Inductive-hypothetical model cycle 2.3.3 Research instruments Our research strategy outlined the method to accomplish the research goal. This section discusses the tools — the research instruments — necessary to implement that strategy. Some of the most used research instruments are (Vreede, 1995; Baskerville, 2000): 16 Social, Organizational, and Technological Conditions that enable Knowledge Sharing Laboratory experiment The investigation of relations between controlled variables with minimum variations solving an artificial problem. Field experiment This is an experiment with a small number of uncontrolled variables that deals with a practical problem. Case study A case study is a planned and focused study of a phenomenon in its natural setting with a large number of variables (with only little or no control). Action research Action research is a study of relationships in the real world where the researcher is actively involved and has influence on the outcome of the study. Survey This is an investigation of a real-world situation at a particular point in time, usually utilizing a statistically analyzed questionnaire. Theorem proof Hypotheses are constructed using mathematical modeling based on a known set of derivation rules. Simulation, role-playing, and gaming Behavior is studied in a model of the real world with a limited set of controlled variables. Forecasting Extrapolation methods are used in order to deduce scenarios for the future. Our research approach follows the interpretive philosophy and applies an inductivehypothetical model cycle as its research strategy. The research instruments are chosen within this framework and they are selected to accomplish the research goal. Theory is traditionally created by combining observations from previous literature, common sense, and experience (Eisenhardt, 1989). However, when there is not much known about a research problem or when the problem area undergoes constant change another perspective is needed. Because case studies do not rely on previous literature or prior empirical evidence it is argued that it is appropriate to use case study research in these situations — for capturing the knowledge of practitioners and developing theories from it (Benbasat et al., 1987; Eisenhardt, 1989). Therefore we choose case study research (a qualitative data source) as our research instrument. Eisenhardt (1989) states: “The disadvantage of the case study as a research strategy is that investigators leap to conclusions based on limited data, or they sometimes inadvertently drop disconfirming evidence. The danger is that investigators reach premature and even false conclusions as a result of these information-processing biases. Thus, the key to good cross-case comparison is counteracting these tendencies by looking at the data in many divergent ways.” In order to avoid these disadvantages and to increase the ‘scientific rigor’ and applicability of our research we apply the following criteria of case study research (Voyer et al., 1996): Internal validity Internal validity stands for the credibility of the research. This research uses various qualitative data sources (interviews, observation) and employs research teams (peers from the author) for reviewing the produced material. Research Framework 17 External validity External validity means generalizability or transferability of the findings. This criterion is often not met in single case studies. Recommended is to research multiple cases. In this dissertation five cases of the ‘real world’ (with four quite different organizations as sites) have been selected to strengthen the generalizability of the study’s results. Construct validity Construct validity regards the consistency and reliability of the research. The construct validity in this study is achieved through creating and contrasting multiple sources of evidence: literature, documents, archival records, direct observation, participant observation, and interviews. Neutrality Neutrality implies objective and confirmable research data. Subjective interpretations — the researcher’s bias — of collected data are reduced by using various data sources and by applying the broad experience of the researcher with respect to interview techniques. Discussions in the research teams combined the subjective interpretations of their members to obtain a more objective view. A case study research consists of the phases design and planning, collection, observation and analysis, and report (Eisenhardt, 1989). First the cases are selected using the following criteria: • there is a growing need in the organization for connectivity and the synergy of information and knowledge; • the organization perceives knowledge sharing as important; • the sites are different enough by type, characteristics, and business processes to meet the criteria of external validity; • it should be possible to gather the necessary data at the site and to become familiar with the characteristics of the situation. Based on their need for connectivity of people and information systems and on basis of their perceived want for synergy of information and knowledge, we select the following case studies: Getronics Consulting Getronics Consulting is a consultancy firm located in the Netherlands, a member of the multinational Getronics Group, which specializes in issues related to organization and information & communication technology. Royal Netherlands Air Force Royal Netherlands Air Force (RNLAF) forms part of the Ministry of Defense of the Netherlands. The Royal Netherlands Air Force is responsible for delivering Dutch air power wherever needed. Ministry of Housing, Spatial Planning, and the Environment The Ministry of Housing, Spatial Planning, and the Environment of the Netherlands is responsible for coordinating environmental policy at government level to realize ‘a permanent quality of the living environment’. Unilever Research & Development Vlaardingen Unilever Research & Development Vlaardingen is part of one of the principal companies in the world in the field of consumer goods for daily use, such as foods and products for home and personal care. The next step is determining the data collection methods. Data collection at multiple cases with distinct characteristics should enable cross-case analysis and the extension of theory 18 Social, Organizational, and Technological Conditions that enable Knowledge Sharing (Benbasat et al., 1987). Our data collection is based on observations and participation at the sites as a long-term employee (about ten years) of this consultancy firm, as a project member (during a period of two and a half years) to implement a standardized information and communication technology infrastructure at Headquarters and all operational bases of the Royal Netherlands Air Force, and through conducting in-depth interviews at the Ministry and at Unilever Research & Development Vlaardingen. We also employ qualitative data sources such as literature, documents, reports, business process descriptions, archives, own observations, and other interviews to obtain a rich image of the circumstances related to knowledge sharing. The data collected from the data sources is analyzed and compared on similarities, contradictions, and relations. 2.4 Research outline As the first step in applying the inductive-hypothetical model cycle (as depicted in Figure 2.1 on page 15) in our research, we explore in Chapter 3 theoretical issues related to knowledge and knowledge sharing within an organization. Based on the knowledge creation theory of Nonaka and Takeuchi (1995) we define and discuss the processes involved in knowledge sharing in an organization. The model of Orlikowski (1992) — which treats the influences of and (often reciprocal) interactions between people, organization, and technology — is used to detail these knowledge sharing processes. Figure 2.2: Research outline Research Framework 19 In Chapter 4 this exploration forms the basis for the data collection, reflection, and analysis of two of the case studies which results in the descriptive empirical model: a matrix in which the knowledge sharing processes are related to the factors people, organization, and technology by means of describing conditions that may facilitate knowledge sharing. The most significant issues of this model are abstracted to construct the descriptive conceptual model that is described in Chapter 5: this identifies the conditions and enablers for knowledge sharing, which are structured into social, organizational, and technological factors and related to the knowledge sharing processes. This model forms the foundation for the prescriptive conceptual model of Chapter 6. We use phases — that reflect a certain stage in the development of knowledge sharing in an organization — to refine our findings. We relate these different organizational phases to their most appropriate knowledge sharing conditions. In Chapter 7 we define a repeating process of assessment and action to validate whether the (stimulation of the) identified conditions enable(s) knowledge sharing. Chapter 8 implements our model in three case studies (two new cases and one revisited). In Chapter 9 we reflect on our prescriptive e

69 citations

Posted Content
TL;DR: In this paper, the authors delineate the challenges of a dynamic environment to R&D management, and they build on most recent ideas, such as the dynamic capability view of the firm, as a strategic foundation for modern research management.
Abstract: In this paper the authors delineate the challenges of a dynamic environment to R&D management. The authors build on most recent ideas, such as the dynamic capability view of the firm, as strategic foundation for modern R&D management. Collaboration is emphasized as a meta-capability for innovation. These ideas are merged into a 'Networked R&D Management' approach that emphasizes internal and external collaboration networks as critical for companies operating in a dynamic business environment. The approach is illustrated with ICT industry as an example. The implementation of Networked R&D Management is reflected in the illustrative case discussion of R&D management of Sonera Corporation.

69 citations

Journal ArticleDOI
TL;DR: In this paper, the authors examined how six institutionalized socialization tactics affect knowledge workers' role adjustment and organizational attachment variables (job satisfaction, affective commitment, continuance commitment and intention to quit).
Abstract: Purpose – This study examined how six institutionalized socialization tactics affect a particular occupation of knowledge workers – information technology (IT) professionals' role adjustment (role conflict and role ambiguity) and organizational attachment variables (job satisfaction, affective commitment, continuance commitment and intention to quit).Design/methodology/approach – The research model and hypotheses were tested using path analysis techniques with survey data collected from 187 recently hired IT professionals.Findings – The results showed that the six socialization tactics affected IT professionals differently. Socialization tactics that recognize employees' values and skills (investiture tactics) and that emphasize the interpersonal and mentoring aspects (serial tactics) had the most significant effects on employees' role adjustment and organizational attachment. The study also revealed complex mediating relationships among socialization tactics, role adjustment and organizational attachment...

69 citations

Book
30 Mar 2009
TL;DR: AUI (AUI) activity, structure of Activity Theory (AT) 249, 250 Activity Theory, as model for investigation and analysis 256 Advancing Clinico-Genomic Trials on Cancer (ACGT) 341 aggregation (community), influence of level of 196 annotate score 294 appreciative inquiry (AI) 61, 62 appreciative model, for knowledge sharing.
Abstract: UI (AUI) 316 activity, structure of 258 Activity Theory (AT) 249, 250 Activity Theory, as model for investigation and analysis 256 Advancing Clinico-Genomic Trials on Cancer (ACGT) 341 aggregation (community), influence of level of 196 annotate score 294 appreciative inquiry (AI) 61, 62 appreciative model, for knowledge sharing 70 asynchronous activities, realization of 393 asynchronous tasks 427 audience communities 381 augmented music toolkit 283 avatar 192 B Benkler’s design typology 90 BioMOBY 222 Blogs 209 Bridging Research and Practice (BRAP) 276 Business Process Model Notation (BPMN) 311

69 citations

Journal ArticleDOI
TL;DR: The authors examined the relationships between managerial learning as a facet of knowledge absorption (KA), firm innovation and knowledge exploitation (KE), and performance of small-scale companies. But, they focused on the performance of the small companies.
Abstract: This study aims to examine the relationships between managerial learning as a facet of knowledge absorption (KA), firm innovation as a facet of knowledge exploitation (KE), and performance of small...

69 citations