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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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28 Sep 2018
TL;DR: In this paper, the authors focus on individual experiences of presence (EPs) and their potential connections to organizational creativity, and investigate whether EPs could serve as a key factor in changing existing organizational thinking and behavioral patterns that may be growing obsolete in the current organizational climate.
Abstract: Virpi Koskela Tapping experiences of presence to connect people and organizational creativity Lappeenranta 2018 89 pages Acta Universitatis Lappeenrantaensis 808 Diss. Lappeenranta University of Technology ISBN 978-952-335-259-9, ISBN 978-952-335-260-5 (PDF), ISSN-L 1456-4491, ISSN 1456-4491 The qualitative research presented in this dissertation focuses on individual experiences of presence (EPs) and their potential connections to organizational creativity. The overarching question is: How are EPs experienced at the individual level, and can EPs contribute to organizational creativity, particularly to an organization’s capacity for more authentic leadership? The aim of the dissertation is to investigate whether EPs could serve as a key factor in changing existing organizational thinking and behavioral patterns that may be growing obsolete in the current organizational climate. The data included in the qualitative sub-studies making up the dissertation consists of personal depictions of EPs, interviews, and other material collected through workshops conducted in Finland as well as through international collaborative research. Much of the research is practice-based, with data produced and collected using methods grounded in contemplation and the applied arts. Findings based on phenomenological and reflective analysis of the data suggest that EPs had a positive impact on participants’ ability to be more aware of their connections to themselves, to each other, and to nature, skills that play an important role in organizational creativity. Two main contributions result from the research. Firstly, it highlights the link between EPs and “inner” and “outer” nature-connectedness, in other words awareness of what is happening inside and outside one’s self. Secondly, it provides an opportunity to view EPs as a critical factor in organizational creativity. The conclusions and recommendations indicate that EPs should be taken seriously when seeking new perspectives on organizational creativity and authentic leadership.

48 citations

Proceedings Article
01 Jan 2001
TL;DR: This paper presents some basic methods of EM, using the Fraunhofer IESE Experience Factory as an example, which, after a one-year trial run, has been in regular operation since the beginning of this year.
Abstract: Experience Management (EM) is an area that is increasingly gaining importance. Its roots lie in Experimental Software Engineering ("Experience Factory"), in Artificial Intelligence ("Case-Based Reasoning"), and in Knowledge Management. EM is comprised of the dimensions methodology, technical realization, organization, and management. It includes technologies, methods, and tools for identifying, collecting, documenting, packaging, storing, generalizing, reusing, adapting, and evaluating experience knowledge, as well as for development, improvement, and execution of all knowledge-related processes. The main difference between experience knowledge and general knowledge is the fact that normally, a (more or less) continuous "stream of knowledge" must be processed. Within this paper, we present some basic methods of EM, using the Fraunhofer IESE Experience Factory as an example, which, after a one-year trial run, has been in regular operation since the beginning of this year.

48 citations

Journal ArticleDOI
TL;DR: In this article, the development of a global production system through a cross-case analysis of the establishment of Hyundai Motor Company's five major overseas production facilities is discussed. And the authors identify the strategies that enabled the Korean company to learn from its initial failures in overseas production, focusing on the localization of production, the internal transfer of experienced staff, codification of previous experience and the use of aggressive goal-setting.
Abstract: This article reviews the development of a global production system through a cross-case analysis of the establishment of Hyundai Motor Company's five major overseas production facilities. It concludes that establishtying a global production network can be a catalyst for organizational learning and the development of new competencies; in particular, that the complexities and uncertainties of operating in unfamiliar economic and cultural contexts provide a powerful impetus to increasing a firm's absorptive capacity. The article identifies the strategies that enabled the Hyundai Motor Company to learn from its initial failures in overseas production. It focuses on the localization of production, the internal transfer of experienced staff, the codification of previous experience and the use of aggressive goal-setting. The analysis suggests that organizational resilience, that is the ability to rebound from initial failure, is a further important aspect in the process of organizational learning.

48 citations

Journal ArticleDOI
TL;DR: In this article, the authors explore KM performance measurement from the angle of KM process effectiveness and find that significant interactions were found between four of the five proposed KM preliminary success factors (i.e., business strategy, K audit, K map, KM team) and all four KM elements of strategies.
Abstract: While knowledge management (KM) has been widely discussed by many academics and practitioners, measurement is undoubtedly the least developed aspect of KM due to the intangibility of knowledge assets. It is of paramount importance to establish performance measures at different stages of KM implementation even from the beginning so that its effectiveness can be identified. This paper thus serves to explore KM performance measurement from the angle of KM process effectiveness. Through the data collected from 289 managers in the Malaysian telecommunication industry, where KM implementation is just beginning to take place, significant interactions were found between four of the five proposed KM preliminary success factors (i.e. business strategy, K audit, K map, KM team) and all four KM elements of strategies (i.e. technology, culture, leadership, measurement) with KM process effectiveness. The findings of this study serve as a guide for organizations in driving their KM journey and reaching their destinations even at the beginning stage of their KM implementation.

48 citations

Dissertation
08 Dec 2011
TL;DR: In this article, the authors propose a questionnement theorique autour des interventions de developpement comme forme d'action publique, couplant les dilemmes de l'intervention sociale dans les espaces marginaux, bien analyses par l'analyse des politiques publiques din les pays industrialises, and the contradictions des interventions dans the " pays sous regime d'aide " ou, du fait d'une histoire coloniale and post-coloniale, ses financements
Abstract: Du fait de sa position institutionnelle d'anthropologue travaillant dans une Ong, l'auteur a cher-che dans sa pratique de recherche a combiner les deux dimensions des sciences sociales : le devoilement des realites complexes liees aux interventions de developpement et l'accompagnement de praticiens dans leurs apprentissages. Issu d'un travail de reflexivite, ce memoire revient sur les grandes etapes de sa trajectoire scientifique, tente un " essai de theorie de sa pratique ", propose les fondements d'un questionnement theorique autour des interventions de developpement comme forme d'action publique, couplant les dilemmes de l'intervention sociale dans les espaces marginaux, bien analyses par l'analyse des politiques publiques dans les pays industrialises, et les contradictions des interventions dans les " pays sous regime d'aide " ou, du fait d'une histoire coloniale et post-coloniale, l'aide internationale, ses financements, ses transferts de modeles, ses institutions, sont devenus un element structurant des dynamiques sociales et politiques.

48 citations