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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 contribute to the strategic management literature by identifying possible combinations of three organizational capabilities (market orientation, knowledge management, and customer relationship management) that would lead to the creation of superior customer value.
Abstract: Purpose – The purpose of this paper is to contribute to the strategic management literature by identifying possible combinations of three organizational capabilities (market orientation, knowledge management, and customer relationship management). It seeks to analyze the potential interaction between them that would lead to the creation of superior customer value.Design/methodology/approach – The research question is: “If the customer demands superior value, how should a firm combine its existing capabilities in order to offer this superior value?”Findings – It is clear that one should turn to dynamic capabilities to explain the connection between the interaction of these three capabilities and superior customer value. Firms are aware of the customers' demand for superior value and need to know how to combine their existing capabilities to offer this superior value.Practical implications – A possible way of increasing the value created for the customer is proposed, which is a key factor for the increasing...

121 citations

Journal ArticleDOI
TL;DR: It is argued that five dimensions determine the potential value of ICT applications for knowledge management, and unless all five dimensions are addressed together, no satisfactory assessment of the status of an ICT application as a potential tool forknowledge management is feasible.
Abstract: Several applications of information and communication technology (ICT) have gained considerable popularity as instruments for knowledge management. Some authors even seem to equate knowledge management with the introduction of specific ICT applications (intranets, groupware, etc.). However, the relationship between ICT and knowledge is no less problematic. Organizational knowledge and ICT refer to distinct sets of conceptions and establishing their relationship is far from trivial. The question then is how to assess the relationship between ICT and knowledge management. Several variables to be considered when answering this question have been identified in the literature: the enabling role of ICT for knowledge processes, the state of the ICT infrastructure, the level of knowledge required for using ICT, other user considerations, etc. However, a more encompassing perspective connecting these individual variables seems to be lacking. The aim of the present paper is to correct this. It argues that five dimensions determine the potential value of ICT applications for knowledge management. These dimensions are summarized in the following question. How and when will ICT, in interplay with other knowledge management measures (dimension 5), help knowledge (dimension 2) as a dynamic (dimension 4), institutional and action-related resource (dimension 3) realize its strategic potential (dimension 1)? The main argument in this paper is that, unless all five dimensions are addressed together, no satisfactory assessment of the status of an ICT application as a potential tool for knowledge management is feasible. Each of these dimensions is of a complex, multidimensional nature. The identification of the five dimensions is therefore only a first step. It needs a follow-up in the form of an elaboration of each dimension. This paper provides the groundwork for such an elaboration.

121 citations

Journal ArticleDOI
TL;DR: In this paper, the authors illustrate how knowledge management can enable schools to examine the plethora of data they collect and how an ecological framework can be used to transform these data into meaningful information.
Abstract: Although there has been a great deal of recognition in the business world that information and knowledge management can be vital tools in organizations, it is only recently that educational administrators and teachers have begun to look at how they might use information systems to assist in creating effective learning environments. In the business research environment, the evolution from data to information and from information to knowledge plays a leading role in shaping how organizations develop strategies and plans for the future. Using examples from schools, this paper illustrates how knowledge management can enable schools to examine the plethora of data they collect and how an ecological framework can be used to transform these data into meaningful information.

121 citations

Journal ArticleDOI
TL;DR: Knowledge translation is considered a cross‐cutting, nonlinear process that involves not only recent research findings but also knowledge that is created from the dynamic interaction of people who come together to solve public health problems, to learn, and ultimately to drive productive change.
Abstract: We discuss the “know-do gap,” present a definition of knowledge translation, and discuss its relative importance in bridging the know-do gap. Some of the underlying causes of the know-do gap are listed, along with ongoing efforts to address them. Knowledge translation is considered a cross-cutting, nonlinear process that involves not only recent research findings but also knowledge that is created from the dynamic interaction of people who come together to solve public health problems, to learn, and ultimately to drive productive change. We also mention some of the activities undertaken by the World Health Organization in regards to knowledge translation. The search strategy has been nonsystematic, and reference is made to selected sources only.

120 citations