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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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BookDOI
01 Jan 2003
TL;DR: This chapter discusses implementation and Effectiveness of ERP in the context of Enterprise Resource Planning systems implementation, and examines the role of the CIO and IT Function in ERP implementation.
Abstract: Introduction Part I. Implementation and Effectiveness: Overview 1. Learning from adopters' experiences with ERP M. Lynne Markus, Sheryl Axline, David Petrie and Cornelis Tanis 2. Innovating with Packaged Business Software: toward an assessment E. Burton Swanson 3. A comprehensive framework for assessing and managing the benefits of enterprise systems Shari Shang and Peter B. Seddon 4. The continuing ERP revolution: sustainable lessons, new modes of delivery Jeanne W. Ross, Michael R. Vitale and Leslie P. Willcocks Part II. From Risks To Critical Success Factors: 5. Enterprise system implementation risks and controls Severin V. Grabski, Stewart A. Leech and Bai Lu 6. Risk factors in Enterprise-Wide/ERP projects Mary Sumner 7. A framework for understanding success and failure in Enterprise Resource Planning system implementation Christopher P. Holland and Ben Light 8. Critical success factors revisited: a model for ERP project implementation Anne Parr and Graeme Shanks 9. Offsetting ERP risk through maintaining standardized application software Guy G. Gable, Taizan Chan, and Wui-Gee Tan Part III. From Learning to Knowledge: 10. Implementing Enterprise Resource Planning systems: the role of learning from failure Judy E. Scott and Iris Vessey 11. ERP projects: good or bad for SMEs? Frederic Adam and Peter O'Doherty 12. The role of the CIO and IT Function in ERP Leslie P. Willcocks and Richard Sykes 13. Enterprise systems management with reference process models Michael Rosemann 14. An ERP implementation case study from a knowledge transfer perspective Zoonky Lee and Jinyoul Lee 15. Knowledge Integration Processes within the context of Enterprise Resource Planning systems implementation Jimmy Huang, Sue Newell and Robert Galliers Part IV. Cultural Aspects of Enterprise Systems: 16. An exploratory analysis of the sources and nature of misfits in ERP implementations Sia Siew Kien and Christina Soh 17. Implementing Enterprise Resource Packages? Consider different organisational and national cultures! Marina Krumbholz, Julia Galliers and Neil A. M. Maiden Part V. Future Directions: 18. Continuity versus discontinuity: weighing the future for ERP packages M. Lynne Markus, David Petrie and Sheryl Axline.

153 citations

Journal ArticleDOI
TL;DR: This paper stresses the importance of constructing knowledge alliances between these multiple knowledge systems in order to support more effective IS development and implementation and suggests possible approaches to the creation of effective knowledge alliances.
Abstract: Information systems design and development processes by their very nature involve a multiplicity of knowledge systems, including the technology itself, the methodologies for system development, and knowledge relating to the application domain. When an information system is used to advance socio-economic development in less developed countries (LDCs), there are additional sources contributing to this multiplicity. In the case of land management applications, it is important to consider the knowledge that communities have of the land they inhabit. This paper stresses the importance of constructing knowledge alliances between these multiple knowledge systems in order to support more effective IS development and implementation. The term knowledge alliance refers not merely to the material characteristics of the knowledge inscribed in technology, but also to the indigenous knowledge of the various communities involved. This includes the social setting that has shaped the practices which are responsible for the communities' production, articulation, and use of knowledge. Two key theoretical concepts, namely boundary objects and participation, are drawn upon both to understand the multiplicity of knowledge systems and to suggest possible approaches to the creation of effective knowledge alliances. The empirical setting for this analysis is a study of the use of geographical information systems for land management in India. This research is not of merely theoretical significance, but also carries important practical implications for scientists and administrators involved in the development of IS, particularly in LDCs.

151 citations

Book
01 Jan 2008
TL;DR: The effects of this become particularly significant when activities and relationships start to mutually reinforce each other as mentioned in this paper, especially when new town-countryside relations emerge that support the newly emerging activities and networks.
Abstract: Rural development stems from combining a wide range of different and often refigured rural resources in new ways. As a result these resources flow into new activities, interactions, transactions and networks. The effects of this become particularly significant when activities and relationships start to mutually reinforce each other. This is when synergy is created; especially when new town-countryside relations emerge that support the newly emerging activities and networks.

150 citations

Posted Content
TL;DR: In this article, the authors make a contribution to the understanding of how knowledge can be accumulated in family business and present a model that outlines factors responsible for knowledge accumulation viewed as an ''enabler of longevity''.
Abstract: The aim of this article is to make a contribution to the understanding of how knowledge can be accumulated in family business. Four family firms from Switzerland and Italy are part of this research. Existing literature combined with the case studies analysed lead to the development of a model that outlines factors responsible for knowledge accumulation viewed as an `enabler of longevity' in family business.The relationships depicted in the model can be read by researchers as hypotheses and suggestions for further research, and by managers as possible factors needed to accumulate knowledge in order to be successful across generations

149 citations

Journal ArticleDOI
TL;DR: The paper identifies the factors that can improve the effectiveness of information processing in virtual teams and discusses future research directions opened by the conceptualization of virtual teams as information processing systems.
Abstract: Purpose – The purpose of this paper is to inform readers on what is known on information processing in virtual teams and to discuss the consequences of these findings for the management of virtual teams.Design/methodology approach – Systematic review of the literature on information processing in virtual teams based on a general information processing model for teams.Findings – An overview of the most relevant factors that influence the effectiveness of virtual teams is provided.Research limitations/implications – The review is based on existing literature on virtual teams and it discusses future research directions opened by the conceptualization of virtual teams as information processing systems.Practical implications – The paper identifies the factors that can improve the effectiveness of information processing in virtual teams.Originality/value – The general information‐processing model for teams enables a systematic integration of the fragmented literature on virtual teams.

149 citations