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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 introduce the entropic intellectual capital model based on a new conceptual framework, which is a result of the dynamics of the cognitive, emotional, and spiritual knowledge fields.
Abstract: The purpose of this paper is to develop a strategic perspective of the organisational intellectual capital through a shift from the static, dynamic, and evolving intellectual capital paradigms to a strategic intellectual capital paradigm. We introduce the entropic intellectual capital model based on a new conceptual framework. The main features of this new model are: intellectual capital is a result of the dynamics of the cognitive, emotional, and spiritual knowledge fields; intellectual capital potential can be transformed into operational intellectual capital through the work of integrators; dynamic capabilities contribute to the renewal of the potential intellectual capital through innovation and learning; and leadership vision is the entropic driving force of strategy elaboration and implementation. Knowledge Management Research & Practice (2013) 11, 133–141. doi:10.1057/kmrp.2013.11

49 citations

Journal ArticleDOI
TL;DR: In this paper, the authors present a theoretical argument for assuming that schools have an orientation to learning that influences both whether teachers learn and also whether they change professionally as a result of the learning.
Abstract: This article presents a theoretical argument for assuming that schools have an orientation to learning that influences both whether teachers learn and also whether they change professionally as a result of the learning. This school-level orientation to learning is hypothesized to consist of beliefs and practices about learning. Results from a structural equation modeling process of 1,126 teacher survey responses in England show that schools have an orientation to learning that includes beliefs about learning, systems and supports for learning, and collective capacity for learning. The practices constituting the school-level orientation to learning have a strong to moderate influence, via path analysis, on teacher learning change defined as a composite outcome of change in beliefs, practices, and students. The beliefs that constitute a school-level orientation have a weak, but still significant, influence on teacher learning change.

49 citations

01 May 2002
TL;DR: In this article, the authors draw upon three case studies from the nuclear power and chemical industries to illustrate a four-stage model of organizational learning: local stage of decentralized learning by individuals and work groups, control stage of fixing problems and complying with rules, open stage of acknowledgement of doubt and motivation to learn, and deep learning stage of skillful inquiry and systemic mental models.
Abstract: Learning-in-action, the cyclical interplay of thinking and doing, is increasingly important for organizations as environments and required capabilities become more complex and interdependent. Organizational learning involves both a desire to learn and supportive structures and mechanisms. We draw upon three case studies from the nuclear power and chemical industries to illustrate a four-stage model of organizational learning: (1) local stage of decentralized learning by individuals and work groups, (2) control stage of fixing problems and complying with rules, (3) open stage of acknowledgement of doubt and motivation to learn, and (4) deep learning stage of skillful inquiry and systemic mental models. These four stages differ on whether learning is primarily single-loop or doubleloop, i.e., whether the organization can surface and challenge the assumptions and mental models underlying behavior, and whether learning is relatively improvised or structured. The case studies illustrate how organizations learn differently from experience, the details of learning practices, and the nature of stage transitions among learning practices.

49 citations

Journal ArticleDOI
TL;DR: A new framework which links organizational culture to OI is presented, moving on from merely examining culture in terms of its positive or negative impact on OI adoption and highlighting the significance of antecedents and mediators from a multi-level perspective using multiple units of analysis.
Abstract: The purpose of this paper is to fill a significant research gap in academic literature pertaining to open innovation (OI). To do so, this paper empirically tests the impact of organizational culture, employees’ knowledge, attitudes and rewards as antecedents and mediators of OI adoption in organizations, facilitating a more thorough understanding by using an empirical multi-level approach.,This paper analyzes the results of the “Identification of Industrial Needs for Open Innovation Education in Europe” survey through a quantitative analysis using logistic regression models. This survey includes 528 employees working in 28 different industrial sectors in 37 countries, most of which are in Europe.,The results suggest a positive impact of organizational characteristics on the adoption of OI (i.e. including the adoption of outside-in and inside-out OI activities in participating organizations), showing that the openness of an organization’s culture increases its likelihood of adopting an OI paradigm. More importantly, the results highlight the positive mediating effect of employees’ knowledge and rewards on this relationship.,The data set that was the basis of this paper was generated in European countries, the results of the analysis are limited and appropriate for this region and may vary when applied to other regions of the world.,The proposed multi-level approach offers new insight into organizational knowledge. It enables the improvement of OI and knowledge management practices in organizations by assisting practitioners and academics in recognizing the relationship between organizational culture; employees’ knowledge, attitudes and rewards; and the adoption of the OI paradigm.,This paper offers a possible explanation on why open-border cultures are more likely to have a successful OI adoption, by relating it to factors that advance in the presence of an open-border culture, such as active participation of OI relative departments in knowledge sourcing and knowledge exchange, and rewarding employees for OI activities.,This paper presents a new framework which links organizational culture to OI, moving on from merely examining culture in terms of its positive or negative impact on OI adoption. It contributes to research on the OI paradigm and knowledge management by highlighting the significance of antecedents and mediators from a multi-level perspective using multiple units of analysis. Most previous studies focus on a single unit of analysis.

49 citations

Journal ArticleDOI
TL;DR: Experimental methods are used for an in-depth exploration of two facilitation-based interventions in a convergence activity: attention guidance (focusing participants on procedures to execute a convergence task) and discussion encouragement (engaging participants in conversations to combine knowledge on ideas).
Abstract: Collaborative brainstorming is often followed by a convergence activity where teams extract the most promising ideas on a useful level of detail from the brainstorming results. Contrary to the wealth of research on electronic brainstorming, there is a dearth of research on convergence. We used experimental methods for an in-depth exploration of two facilitation-based interventions in a convergence activity: attention guidance (focusing participants on procedures to execute a convergence task) and discussion encouragement (engaging participants in conversations to combine knowledge on ideas). Our findings show that both attention guidance and discussion encouragement are correlated with higher convergence quality. We argue that attention guidance's contribution is in its support of coordination, information processing, and goal specification. Similar, we argue that discussion encouragement's contribution is in its stimulation of idea clarification and idea combination. Contrary to past research, our findings further show that satisfaction was higher after convergence than after brainstorming.

49 citations