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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 explored the role of ideation capabilities in large organizations and found that firms can benefit from more deliberate approaches to ideation, in particular if these are broad and balanced and focus on both building capabilities that formalize the informal, in terms of establishing explicit processes, roles, and building capabilities needed to manage informal structures in new ways.
Abstract: This paper explores ideation capabilities in large organizations. Based on the dynamic capabilities framework, it is seen that ideation capabilities are managerial and organizational processes for the stimulation, identification, selection and implementation of ideas. In order to explore how these capabilities are manifested and used in firms, case studies of four Swedish companies have been performed. The results of the study show that there are different approaches to ideation. In terms of the nature of innovative ideas, the observations lead to the suggestion that ideation presents some seemingly paradoxical issues to management. Firms with an explicit focus on building ideation practices experience that there are some negative consequences of the resultant formalization. Furthermore, the extent to which many employees should be involved in ideation is a difficult aspect, even though new technologies make this more viable. Also the degree to which the search for ideas should be directed is a non-trivial question, as the ideation processes can be facilitated by both freedom and limitations. It is nevertheless seen that firms can benefit from more deliberate approaches to ideation, in particular if these are broad and balanced and focus on both building capabilities that formalize the informal, in terms of establishing explicit processes, roles and systems, and building capabilities needed to manage informal structures in new ways.

106 citations

Journal ArticleDOI
TL;DR: The theory of the firm as a social community is a sociological theory and, though sharing many key ideas with the resource-based view that developed at the same time, is deeply opposed to engineering conceptions of firms as Legomodular pieces that can be easily shifted, bought, and sold as mentioned in this paper.
Abstract: The production of the 1993 article awarded the JIBS Decade Award was written during a time when ideas regarding knowledge and the international expansion of the firm confronted a hostile audience. The sources of these ideas were directly related in Winter’s and Roger’s prior work, but also to a broader literature on ‘category errors’ and technology transfer. The theory of the firm as a social community is a distinctly sociological theory and, though sharing many key ideas with the resource-based view that developed at the same time, is deeply opposed to engineering conceptions of firms as Legomodular pieces that can be easily shifted, bought, and sold. We describe our individual biographies and the subsequent intellectual development of the

106 citations

Book
24 Jul 2012
TL;DR: In this paper, the authors defend a renovated concept of bourgeois revolution and show how our globalized societies are the result of a contested, turbulent history marked by often forceful revolutions directed against old social orders, from the Dutch Revolt to the English and American Civil Wars and beyond.
Abstract: In this panoramic historical analysis, Neil Davidson defends a renovated concept of bourgeois revolution. Davidson shows how our globalized societies of the present are the result of a contested, turbulent history marked by often forceful revolutions directed against old social orders, from the Dutch Revolt to the English and American Civil Wars and beyond.

106 citations

Journal ArticleDOI
TL;DR: It is suggested that N&N is often misconstrued as either a field of technology or an area of (broadly) converging technologies while evidence to date suggests rather that N &N be considered a set of inter-related and overlapping about not necessarily merging technologies.
Abstract: This contribution formulates a number of propositions about the emergence of novel nanoscience and nanotechnology (N&N). Seeking to complement recent work that aims to define a research agenda and draws on general insights from the innovation literature, this paper aims to synthesize knowledge from innovation-related studies of the N&N field. More specifically, it is suggested that N&N is often misconstrued as either a field of technology or an area of (broadly) converging technologies while evidence to date suggests rather that N&N be considered a set of inter-related and overlapping about not necessarily merging technologies. The role of instrumentation in connecting the various N&N fields is underlined. Finally, the question is raised whether change in N&N tends to be incremental rather than discontinuous, being the result of technological path-dependencies and lock-ins in industry-typical search regimes that are only slowly giving way to more boundary-crossing activities.

105 citations

Journal ArticleDOI
01 Feb 2008
TL;DR: It is found that KM research in information systems journals differs from that in management journals, but neither makes a balanced use of positivist and non-positivist research approaches.
Abstract: Knowledge management (KM) research has been evolving for more than a decade, yet little is known about KM theoretical perspectives, research paradigms, and research methods. This paper explores KM research in influential journals for the period 2000-2004. A total of 160 KM articles in ten top-tier information systems and management journals are analyzed. Articles that may serve as useful exemplars of KM research from positivist, interpretivist, and critical pluralist paradigms are selected. We find that KM research in information systems journals differs from that in management journals, but neither makes a balanced use of positivist and non-positivist research approaches.

105 citations