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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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Posted Content
TL;DR: In this article, the authors provide a forum for interested researchers and practitioners to exchange their experiences and creative ideas related to ICT management for global competitiveness and economic, social and cultural growth in emerging economies.
Abstract: New information and communication technologies have imposed a dynamic on the contemporary world that is inducing transformational change within economic, social and cultural realms, resulting in synergy and convergence effects that are difficult to predict. To put it simply, within the growing complexity and unpredictability of the ambient conditions, there is no defined, closed repertoire, strategy, or solution, whether business oriented or institutional, that provides both effective and innovative approaches to the increasing structural problems of the global stage. The only existing solution to maintain a sustainable competitive advantage within today’s world of permanent and endogenous change is the involvement of human capital (potential): its creativity and innovative approaches which alone can become a source of Schumpeter’s creative destruction. This implies even more, in the case of emerging economies, which still lag behind the more mature, developed countries both in economic, social and cultural standards of living. To truly close this gap, an interdisciplinary approach to human capital (human resources) is more than required, especially in reference to the transformational potential of information and communication technologies (ICTs) and any associated new management techniques, new business models, and new regulatory policies. Thus, the objective of this conference is to provide a forum for interested researchers and practitioners to exchange their experiences and creative ideas related to ICT management for global competitiveness and economic, social and cultural growth in emerging economies. Possible topics may include but are not limited to the following aspects of innovation: • Economical, psycho-social and legal frameworks as they relate to ICT and ICT Management • Unique ICT management techniques for emerging and transition economies • Methods for measuring the benefits and costs of projects involving the adoption of ICT • The role of human and social capital • Gender and other socio-demographic factors in human and social capital and in innovations processes • Innovative ways for generating revenues and creating commercial knowledge products • Educational systems and training as they relate to ICT and ICT Management • Tradition and contemporaneity of pedagogical thought • ICT innovations to support small and medium enterprises • ICT innovations as a path to economic growth • ICT productivity with specific reference to the prevalent social and business conditions • Global supply chain management in emerging and transition economies • Country specific case studies, with specific reference to the prevalent psychosocial and business conditions • ICT off-shoring/outsourcing into emerging and transition economies • ICT project management, with specific reference to the prevalent social and business conditions • Digital divide in emerging and transition economies • E-commerce impact in emerging and transition economies • E-government in emerging and transition economies • Healthcare and ICT Management • Psychological, social, and economic aspects of Internet use in emerging and transition economies • Virtual reality in psychological treatment and psychotherapy • Analytical psychology and psychotherapy in the era of new technology • Information and communication technologies in personnel recruitment, assessment and development • Leadership and new technologies • Psychological aspects of working in a virtual team • Information and communication technologies in an ageing society • Quantitative methods and information technology in management

63 citations

Journal ArticleDOI
TL;DR: The findings suggest that employees’ ignorance may negatively affect their intention to share knowledge, thus leading to poor decision-making and communication in organizations.
Abstract: Purpose – The purpose of this paper is to identify individual variables with an impact on knowledge sharing and explore the under-discussed construct of employees’ ignorance. This can enhance the knowledge-sharing process and facilitate the development of greater intellectual capital. Design/methodology/approach – Eighty-four dependent variables affecting knowledge sharing are analyzed and classified into 11 categories. In addition, the direct effect of employees’ ignorance on knowledge sharing is introduced and empirically investigated in a case study of a multinational organization operating within the aerospace and defense industry. Findings – The findings suggest that employees’ ignorance may negatively affect their intention to share knowledge, thus leading to poor decision-making and communication in organizations. Employees’ ignorance could also limit the organizational ability to repel external threats, implement innovation and manage future risks. Originality/value – A classification scheme based...

63 citations

Proceedings ArticleDOI
13 Aug 2012
TL;DR: This paper describes how Agile teams gather, store, share and use knowledge in distributed software development and investigates distributedSoftware development from the specific perspective of Agile Teams.
Abstract: Software development teams need highly valuable knowledge to carry out knowledge-intensive development activities. Agile teams are cross-functional teams that promote sharing of project-specific knowledge through frequent face-to-face interaction, effective communication and customer collaboration. Knowledge sharing is difficult for distributed Agile teams due to spatial, temporal, and cultural barriers, which negatively affect face-to-face interaction, communication and collaboration. There seems to be very few studies that focus on knowledge management in distributed Agile teams. Through a Grounded Theory study that involved 45 participants from 28 different software companies in the USA, India and Australia, we investigate distributed software development from the specific perspective of Agile teams. In this paper, we describe how Agile teams gather, store, share and use knowledge in distributed software development.

63 citations

Journal ArticleDOI
TL;DR: The case illustrates the problematic nature of evaluating the success or failure of an innovation, and shows how failure can be an intermediate step to future success, while making the point that blindly listening to customers may prove to be a barrier to successful innovations.
Abstract: This study reports on the experience of the First Atlantic Bank of Nigeria as it embarked on the implementation and introduction of Internet and mobile banking services. Based on the concept of a logic of opposition the study conceptualizes the case company's effort with a specific emphasis on the mode and impact of learning that occurred intra- and inter-organizationally. The case considers how being a first mover in a given market can be crucial, not necessarily because of the immediate commercial benefit, but more because of the opportunity for developing customers' trust in order to ensure the success of future innovations. In addition, the case illustrates the problematic nature of evaluating the success or failure of an innovation. Further, it shows how failure can be an intermediate step to future success, while making the point, counter-intuitively perhaps, that blindly listening to customers may prove to be a barrier to successful innovations. Thus, firms might capitalize from what might initially be perceived as failure, in particular through transforming an opposing force into a promoting one.

63 citations