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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: The authors surveys critical discourse studies to the present and claims that, to avoid lapsing into comfortable orthodoxy in its mature phase, CDS needs to reassert its transformative radical teleology.
Abstract: This paper surveys critical discourse studies to the present and claims that, to avoid lapsing into comfortable orthodoxy in its mature phase, CDS needs to reassert its transformative radical teleology. The initial part of the paper reasserts the need for a strong social theory given the materialist and context-bound nature of discourse in daily activity. From this basis, the paper then characterizes the “new times” in which contemporary discourse occurs, and briefly surveys those issues typically analyzed, namely political economy, race and gender, and critical literacy. By considering people's ordinary lives, the paper then suggests that subject and agency, and calculative technologies of management deserve, and new modalities need, more research. Transdisciplinarity is encouraged, particularly with social psychology and critical management studies.

110 citations

Journal ArticleDOI
TL;DR: Results indicate that the perceptions of usefulness, ease-of-use and compatibility significantly affect behavioural intention, and critical external variables, empowering leadership, task-technology fit (TTF) and compatibility are proposed as significant contributors to KMS.
Abstract: Knowledge management system (KMS) is emerging as a powerful source of competitive advantage, and plays an important role in managing an organisational knowledge. Therefore, how to improve the success rate for adopting a KMS becomes important. This study applies a technology acceptance model as its theoretical framework. Critical external variables, empowering leadership, task-technology fit (TTF) and compatibility are proposed as significant contributors to KMS. To test the proposed model, data were collected through a questionnaire survey sent to IT managers of 500 large companies in Taiwan. The results indicate that the perceptions of usefulness, ease-of-use and compatibility significantly affect behavioural intention. Empowering leadership, TTF and compatibility are significant predictors of perceived ease of use (PEOU); however, perceived usefulness is only influenced by compatibility and PEOU. Further, there is a positive and significant relationship between TTF and compatibility. Finally, this study also discusses the implications for practitioners.

110 citations

Journal ArticleDOI
TL;DR: The impact of this emerging knowledge ecosystem (KE) on some prominent characteristics of knowledge and knowledge management (KM) models is explored through an exploratory critical review of popular epistemological perspectives and conceptual foundations underlying KM models.
Abstract: Social media comprise the set of tools identified as blogs, wikis, and other social networking platforms that “enable people to connect, communicate, and collaborate.” These tools create a dynamic, complex information infrastructure that enables easier, faster, and more widespread sharing of information. These affordances make possible phenomena such as viral processes, and they can change how we are able to work and organize. This article explores the impact of this emerging knowledge ecosystem (KE) on some prominent characteristics of knowledge and knowledge management (KM) models through an exploratory critical review of popular epistemological perspectives and conceptual foundations underlying KM models. We find that this emerging KE requires a revisiting of both the social aspects of knowledge creation and some popular notions of enterprise knowledge management.

110 citations

Journal ArticleDOI
TL;DR: To overcome the perpetual elusiveness of tacit knowledge is presented a framework that could help highlight dimensions of tacitknowledge that can be mobilized and observed through the manifestation of different behaviour.
Abstract: Purpose – The aim of this paper is to investigate the problems of managing tacit knowledge and the importance of unlearning it. As the main problem of managing tacit knowledge lies in the fact that it escapes observation and measurement, an adequate framework that would make some dimensions of tacit knowledge visible has to be developed.Design/methodology/approach – On the basis of literature surveys the authors discuss several types of knowledge and issues related to sharing, learning and, most importantly, unlearning obsolete tacit knowledge dimensions.Findings – To overcome the perpetual elusiveness of tacit knowledge is presented a framework that could help highlight dimensions of tacit knowledge that can be mobilized and observed through the manifestation of different behaviour. It is partly possible to make explicit some dimensions of tacit knowledge that not only contribute to successful sharing and mutual learning, but also enable the identification of those parts of knowledge that hinder innovati...

109 citations

Posted Content
TL;DR: In this article, the authors present a state-of-the-art overview of patent indicators and their multiple uses in supporting the development of science and technology policy and discuss the limitations and pitfalls related to their use.
Abstract: Science and technology development have become critical instruments in the public policy arena given their demonstrated impact on economic progress As a consequence, a wide array of indicators for measuring and mapping scientific and technological activity, their progress and their outcomes, has been developed over recent decades (see for instance, European Commission, 2nd Report on S&T Indicators, 1997) The majority of these indicators relate to measuring and mapping the published journal and patent literature In the second part of this review, we focus on a state-of-the-art overview of patent indicators and their multiple uses in supporting the development of science and technology policy We also discuss the limitations and the pitfalls related to their use

109 citations