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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: This research aims to help knowledge managers systematically grasp ‘‘knowledge about management knowledge’’ and get a "deep and full” understanding of the nature, scope and methodologies of knowledge management.
Abstract: Purpose – The purpose of this research is to help knowledge managers systematically grasp ‘‘knowledge about management knowledge’’ and get a ‘‘deep and full’’ understanding of the nature, scope and methodologies of knowledge management. Design/methodology/approach – Through presenting a variety of perspectives on knowledge, management, and knowledge management, the article explores the essence of knowledge management in organizations from a perspective of critical systems thinking. Findings – Knowledge management in business organizations has the task of managing the activities of knowledge workers or the transformation and interaction of organizational ‘‘static substance knowledge’’ and ‘‘dynamic process knowledge’’ for ‘‘products, services, and practical process innovation’’ and, at the same time, ‘‘creating new or justifying existing organizational systematic knowledge’’. Knowledge management is not simply about recording and manipulating explicit knowledge, but needs to address that which is implicit, and from which benefit can therefore be derived only through process rather than content. Originality/value – The comprehensive review and classification of various management theories will expand both knowledge managers’ and knowledge workers’ understanding of the subject and provide a foundation for building a knowledge management toolkit in practice.

206 citations

Journal ArticleDOI
TL;DR: In this paper, the authors highlight and summarize the possible antecedents and factors that facilitate or impede knowledge management and knowledge sharing in organizations and present a meta-review of 64 articles.
Abstract: This study aims to highlight and summarize the possible antecedents and factors that facilitate or impede knowledge management and knowledge sharing in organizations. A meta-review of 64 articles f...

203 citations

Journal ArticleDOI
TL;DR: In this paper, the authors propose a new conceptual framework for project team development based on Tuckman's theories of team development and creativity, and propose two structural barriers that bear on team performance, and modifies the well-established team development model.
Abstract: We propose that theories of project team development and of creativity can be integrated into a new conceptual framework. The framework proposes two structural barriers that bear on team performance, and modifies the well-established team development model of Tuckman. Creative leadership is suggested as an important means of breaching the barriers. Its differentiating feature seems to be its effectiveness in establishing protocols that sustain the creative efforts of team members. We have designated the protocols ‘benign structures’. Empirical evidence is provided from a range of studies of project teams in industrial settings.

203 citations

Journal ArticleDOI
Tore Dybå1
TL;DR: The main result is an instrument for measuring the key factors of success in SPI based on data collected from 120 software organizations and the measures were found to have satisfactory psychometric properties.
Abstract: Understanding how to implement SPI successfully is arguably the most challenging issue facing the SPI field today. The SPI literature contains many case studies of successful companies and descriptions of their SPI programs. However, there has been no systematic attempt to synthesize and organize the prescriptions offered. The research efforts to date are limited and inconclusive and without adequate theoretical and psychometric justification. This paper provides a synthesis of prescriptions for successful quality management and process improvement found from an extensive review of the quality management, organizational learning, and software process improvement literature. The literature review was confirmed by empirical studies among both researchers and practitioners. The main result is an instrument for measuring the key factors of success in SPI based on data collected from 120 software organizations. The measures were found to have satisfactory psychometric properties. Hence, managers can use the instrument to guide SPI activities in their respective organizations and researchers can use it to build models to relate the facilitating factors to both learning processes and SPI outcomes.

201 citations

Journal ArticleDOI
TL;DR: The proposed framework provides a more secure and controlled way to share knowledge and services, thereby supports the company to develop scalable and flexible business at a lower cost, and ultimately improves the overall quality, efficiency, and effectiveness of manufacturing services.
Abstract: Purpose The purpose of this paper is to propose a cross-enterprises framework to achieve a higher level of sharing of knowledge and services in manufacturing ecosystems. Design/methodology/approach The authors describe the development of the emerging open manufacturing and discuss the model of knowledge creation processes of manufacturers. The authors present a decentralized framework based on blockchain and edge computing technologies, which consists of a customer layer, an enterprise layer, an application layer, an intelligence layer, a data layer, and an infrastructure layer. And a case study is provided to illustrate the effectiveness of the framework. Findings The authors discuss that the manufacturing ecosystem is changing from integrated and centralized systems to shared and distributed systems. The proposed framework incorporates the recent development in blockchain and edge computing that can meet the secure and distributed requirements for the sharing of knowledge and services in manufacturing ecosystems. Practical implications The proposed framework provides a more secure and controlled way to share knowledge and services, thereby supports the company to develop scalable and flexible business at a lower cost, and ultimately improves the overall quality, efficiency, and effectiveness of manufacturing services. Originality/value The proposed framework incorporates the recent development in edge computing technologies to achieve a flexible and distributed network. With the blockchain technology, it provides standards and protocols for implementing the framework and ensures the security issues. Not only information can be shared, but the framework also supports in the exchange of knowledge and services so that the parties can contribute their parts.

200 citations