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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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Proceedings Article
01 Jan 2005
TL;DR: In this paper, the authors introduce the concept of knowledge-intensive business services (KIBS) in the context of regional networks and analyze the roles of KIBS in regional development, especially from the viewpoint of regional intellectual capital.
Abstract: Purpose – The paper seeks to introduce the concept of knowledge‐intensive business services (KIBS) in the context of regional networks and to analyze the roles of KIBS in regional development, especially from the viewpoint of regional intellectual capital.Design/methodology/approach – Regional networks are presented as the networks of production, development and innovation in the region. Drawing from recent literature, the roles of KIBS in regional networks are discussed.Findings – It is argued that networks for production emphasize explicit knowledge, networks for development emphasize tacit knowledge, and networks for innovation emphasize emergent, potential knowledge. It is further stated that KIBS provide the timely information needed in production networks, transfer best practices that support learning in development networks, and function as sources of innovation and facilitators of innovation processes in innovation networks.Practical implications – The paper provides an approach to reduce the comp...

58 citations

Journal ArticleDOI
10 Nov 2013-Vine
TL;DR: The findings show that intrinsic and extrinsic motivational factors and intention to methods of KS play an important role in KSB, and that the employees' KSB in RCs as a significant part depends on simultaneous supplying of motivational Factors and methods that are interesting for employees.
Abstract: Purpose – Knowledge sharing (KS) of employees has numerous benefits for organizations. Therefore, the aim of this study is to provide a model for KS in research centers (RCs) that can facilitate the employee's knowledge sharing behavior (KSB).Design/methodology/approach – Based on the extensive literature review, a valid instrument was adopted to collect the required data set on KS, KSB and intention to KS, and finally 317 complete questionnaires were collected from Iranian research centers. The structural equation modeling (SEM) was used to assess the measurement model and to test the research hypotheses.Findings – The findings show that intrinsic and extrinsic motivational factors and intention to methods of KS play an important role in KSB. In other words, simultaneous supply of motivational factors and KS methods interesting for employees lead to their KSB. The SEM confirmed the research model and showed a good fit of it.Practical implications – The implication emanating from this study is that the em...

58 citations

Journal ArticleDOI
TL;DR: The authors argue that knowledge management and knowledge-based economy discourse has not included the axiological dimension of knowledge that leads to wisdom, and argue that a wisdom-based renaissance of humanistic epistemology is needed to avoid increasing social dysfunction and a lack of wisdom in completeness.
Abstract: Discourse about knowledge‐based economies rarely moves beyond the commercialization of science and engineering, and is locked in the discursive limits of functionalism. We argue that these discourses limit the scope of what knowledge‐based economies might achieve because they are uninformed by an adequate conception of knowledge. In particular, knowledge management and knowledge‐based economy discourse has not included the axiological dimension of knowledge that leads to wisdom. Taking an axiological perspective, we can discuss policy frameworks aimed at producing the social structures needed to bring fully formed and fully functioning knowledge societies into being. We argue that while the dominant discourse of industrial modernity remains rationalist, functionalist, utilitarian and technocratic, knowledge‐based economies will resemble a savant rather than a sage. A wisdom‐based renaissance of humanistic epistemology is needed to avoid increasing social dysfunction and a lack of wisdom in comple...

57 citations

Journal ArticleDOI
TL;DR: In this paper, a study has been conducted to find out the factors that influence academic staff's knowledge sharing intentions which develop the university's capabilities towards innovation, and the results obtained from the analysis of the data confirmed that the intensity of knowledge sharing behaviours has a positive influence on the innovative capabilities of the university.
Abstract: Knowledge is originated from the intelligence of individuals and is visible in the tasks, systems, procedures, norm and customs and is really difficult to imitate. Knowledge economy has changed the theme of innovation management. Knowledge sharing not only reduces the cost of the production or service, but also contributes to the success of the organization because knowledge sharing helps in avoiding the mistakes and develops the ability to innovate. There exist a gap in the studies that address the knowledge sharing practices. Knowledge sharing has been found to become a beneficial for different organizations especially for the development of solutions through innovations. This study has, therefore, been conducted to find out the factors that influence academic staff's knowledge sharing intentions which develop the university’s capabilities towards innovation. In order to check the factors that determine the behaviour of knowledge sharing among the academic staff, different theoretical models have been discussed that explain the individual's behaviour. On the basis of literature, 'trust' from social capital theory along with subjective norms and attitude from theory of reasoned action were used as factors influencing the knowledge sharing intentions. The data was collected by using a semi structured questionnaire. The model used for evaluation was structural equation model (SEM) and data has been analysed by using LISREL 8.70 software. The results obtained from the analysis of the data confirmed that the intensity of knowledge sharing behaviours has a positive influence on the innovative capabilities of the university. Key words: Knowledge sharing, self efficacy, innovation.

57 citations

Journal ArticleDOI
TL;DR: In this paper, a multimodal approach is used to facilitate the brain-storm interaction in a multi-modal perspective, where participants are helped to express their thoughts and engage in a social process of clarifying, developing and refining ideas.
Abstract: This article discusses ‘brainstorm’ interaction in a multimodal perspective. It shows how an innovation workshop facilitator is ‘doing facilitation’ by not only organizing group activities and managing turn-taking, but also drawing each group member out to participate actively and contribute to the group process. Institutional goals are transformed to individual conversational participation. Participants are helped to express their thoughts and engage in a social process of clarifying, developing and refining ideas. In the process the facilitator is socializing the participants into a particular participation framework, letting them collaborate in shaping a local community of practice. The facilitator is separating phases of activities to afford decoupling actions, creating specific local sequential environments for participants to produce particular kinds of talk, thus engaging a group of participants in a social process of collaborative idea development. The article will show how multimodal orientation ...

57 citations