Showing papers on "Tacit knowledge published in 2008"

The Knowledge Creating Company

Abstract: Japanese companies, masters of manufacturing, have also been leaders in the creation, management, and use of knowledge-especially the tacit and often subjective insights, intuitions, and ideas of employees.

The knowledge-creating company

Abstract: How have Japanese companies become world leaders in the automotive and electronics industries, among others? What is the secret of their success? Two leading Japanese business experts, Ikujiro Nonaka and Hirotaka Takeuchi, are the first to tie the success of Japanese companies to their ability to create new knowledge and use it to produce successful products and technologies. In The Knowledge-Creating Company, Nonaka and Takeuchi provide an inside look at how Japanese companies go about creating this new knowledge organizationally. The authors point out that there are two types of knowledge: explicit knowledge, contained in manuals and procedures, and tacit knowledge, learned only by experience, and communicated only indirectly, through metaphor and analogy. U.S. managers focus on explicit knowledge. The Japanese, on the other hand, focus on tacit knowledge. And this, the authors argue, is the key to their success--the Japanese have learned how to transform tacit into explicit knowledge. To explain how this is done--and illuminate Japanese business practices as they do so--the authors range from Greek philosophy to Zen Buddhism, from classical economists to modern management gurus, illustrating the theory of organizational knowledge creation with case studies drawn from such firms as Honda, Canon, Matsushita, NEC, Nissan, 3M, GE, and even the U.S. Marines. For instance, using Matsushita's development of the Home Bakery (the world's first fully automated bread-baking machine for home use), they show how tacit knowledge can be converted to explicit knowledge: when the designers couldn't perfect the dough kneading mechanism, a software programmer apprenticed herself withthe master baker at Osaka International Hotel, gained a tacit understanding of kneading, and then conveyed this information to the engineers. In addition, the authors show that, to create knowledge, the best management style is neither top-down nor bottom-up, but rather what they call "middle-up-down," in which the middle managers form a bridge between the ideals of top management and the chaotic realities of the frontline. As we make the turn into the 21st century, a new society is emerging. Peter Drucker calls it the "knowledge society," one that is drastically different from the "industrial society," and one in which acquiring and applying knowledge will become key competitive factors. Nonaka and Takeuchi go a step further, arguing that creating knowledge will become the key to sustaining a competitive advantage in the future. Because the competitive environment and customer preferences changes constantly, knowledge perishes quickly. With The Knowledge-Creating Company, managers have at their fingertips years of insight from Japanese firms that reveal how to create knowledge continuously, and how to exploit it to make successful new products, services, and systems.

Value chains, networks and clusters: reframing the global automotive industry

Abstract: In this article, we apply global value chain (GVC) analysis to recent trends in the global automotive industry, with special attention paid to the case of North America. We use the three main elements of the GVC framework—firm-level chain governance, power and institutions—to highlight some of the defining characteristics of this important industry. First, national political institutions create pressure for local content, which drives production close to end markets, where it tends to be organized nationally or regionally. Second, in terms of GVC governance, rising product complexity combined with low codifiability and a paucity of industry-level standards has driven buyer–supplier linkages toward the relational form, a governance mode that is more compatible with Japanese than American supplier relations. The outsourcing boom of the 1990s exacerbated this situation. As work shifted to the supply base, lead firms and suppliers were forced to develop relational linkages to support the exchange of complex uncodified information and tacit knowledge. Finally, the small number of hugely powerful lead firms that drive the automotive industry helps to explain why it has been so difficult to develop and set the industry-level standards that could underpin a more loosely articulated spatial architecture. This case study underlines the need for an open, scalable approach to the study of global industries.

Building firm capabilities through learning: the role of the alliance learning process in alliance capability and firm-level alliance success

Abstract: ion of experience associated with a specific activity or task. We conceptualize codification in the alliance learning process in a similar manner. Codification involves creating and using knowledge objects or resources such as alliance guidelines, checklists, or manuals to assist action or decision making in future alliance situations. We also see it as being distinct from the aspect of articulation described earlier. Articulation primarily emphasizes externalizing the content residing within individuals. Codification, on the other hand, focuses on providing the content (know-what), the methodology (knowhow ), and even the rationale (know-why) for executing and managing various alliance-related tasks. Its ‘people-to-documents’ approach emphasizes ‘reuse economics,’ by which a firm reuses the alliance management knowledge that exists within the firm itself, or that resides with firms or people outside the firm (Hansen et al., 1999), to manage future alliances. Although the principal benefits of codification arise from the use of the codified alliance management manuals or tools, it also potentially provides more subtle benefits to managers in a firm. By involving themselves in the effort to codify alliance management knowledge, managers emerge with a crisper understanding of what works, or what does not work and why, in the context of managing certain tasks in alliances. Hence codification not only helps firms replicate and transfer alliance best practices, but also identify or select what those best practices are. In our fieldwork, we observed firms adopt several practices of codifying alliance management know-how. One company has created ‘35 rules of thumb’ for managing alliances. Another company has developed an in-house ‘power of partnerships’ program that provides its managers with detailed guidelines and frameworks for managing alliances. HewlettPackard has developed ‘40 decision-making templates’ to help managers understand and manage key activities at every stage of the life cycle of any alliances (Harbison and Pekar, 1998; Dyer et al., 2001). Eli Lilly, which is considered a ‘premier partner’ in the pharmaceutical industry, also has developed several such codified tools and templates to improve its managers’ partnering skills (Draulans et al., 2003). Overall, such codification is expected to enhance a firm’s decision making and actions in its alliances, and consequently lead to greater alliance success over time. Sharing of alliance know-how According to the knowledge-based view of the firm, the development of organizational skills to manage any particular task also rests upon a firm’s ability to share knowledge associated with managing or executing that task with all relevant parts within the organization (Grant, 1996). This is not only true for knowledge that is articulated and codified, but also for ‘tacit’ knowledge that is less amenable to easy articulation or codification (Winter, 1987). Knowledge sharing plays an important role in this regard. In the context of the alliance learning process, knowledge sharing involves exchanging and disseminating individually and organizationally held alliance management knowledge, which is both tacit and/or codified, through interpersonal interaction within the organization. ‘Communities of personal interaction’ are a central element of such knowledge sharing within firms (Seely Brown and Duguid, 1991; March, Sproull, and Tamuz, 1991). They provide a means for regularly and systematically sharing alliance management knowledge that has already been articulated or codified by the firm. More important, however, they provide a forum to share individually held tacit knowledge through direct person-to-person interaction between managers since tacit knowledge is more easily shared through dialogue between individuals than through knowledge objects (Hansen et al., 1999). Third, they also play a role in helping managers better conceptualize the alliance knowledge that is being shared or disseminated throughout the firm. Dialogue in the form of face-toface communication between managers provides them an opportunity to test their hypotheses and assumptions regarding best practices to carry out Copyright  2007 John Wiley & Sons, Ltd. Strat. Mgmt. J., 28: 981–1000 (2007)

The use of tacit knowledge within innovative companies: knowledge management in innovative enterprises

Abstract: Purpose – The purpose of this paper is to examine the use of tacit knowledge within innovative organizations. It addresses what organizations can do to promote knowledge sharing in order to improve successful innovation. Compared to available research material on explicit knowledge, the use of tacit knowledge within companies is relatively unexplored. The use of tacit knowledge is assessed with special emphasis on its significance and implications in the innovation process.Design/methodology/approach – Existing research is structured with the objective of examining how companies make use of tacit knowledge. Key levers for tacit knowledge management are identified and the positive impact of tacit knowledge on innovation success disclosed.Findings – The role of tacit knowledge in innovation management is analysed. Creation, availability and transfer of tacit knowledge within an organization are highlighted. Competitive advantage will be gained when companies value their tacit knowledge because explicit know...

Ethnic scientific communities and international technology diffusion

Abstract: This study explores the role of U.S. ethnic scientific and entrepreneurial communities for international technology transfer to their home countries. U.S. ethnic researchers are quantified through an ethnic- name database and individual patent records. International patent citations confirm knowledge diffuses through ethnic networks, and manufacturing output in foreign countries increases with an elasticity of 0.1-0.3 to stronger scientific integration with the U.S. frontier. Specifications ex- ploiting exogenous changes in U.S. immigration quotas address reverse- causality concerns. Exercises further differentiate responses by develop- ment stages in home countries. Ethnic technology transfers are particularly strong in high-tech industries and among Chinese economies. I. Introduction T HE adoption of new technologies and innovations is a primary engine for economic growth, improving worker productivity and spurring higher standards of living. Invention, however, is concentrated in advanced economies. OECD countries account for 83% of the world's R&D expenditure and 98% of its patenting (OECD, 2004). Even within the OECD, a disproportionate share of R&D is undertaken in the United States. Diffusion of new innova- tions from technologically leading nations to following economies is thus necessary for the economic development of poorer regions and the achievement of global prosperity. Economic models often describe a worldwide technology frontier, where new ideas and innovations travel quickly to all countries. 1 Rapid diffusion may be a good approximation for industrialized economies, but many advances are either not available or not adopted in poorer countries. Case studies in the business sociology and economic history literatures suggest this poor adoption may result from inad- equate access to the informal or practical knowledge that complements the codified details of new innovations. Be it between two people or two countries, knowledge transfer is much more complicated than sharing blueprints, process designs, or journal articles. Intellectual spillovers are often thought to be important for the formation of cities and high-tech clusters, and perhaps heterogeneous access to the codified and tacit knowledge associated with new innova- tions shapes the effective technology sets of following countries. 2

Trustworthiness, Risk, and the Transfer of Tacit and Explicit Knowledge Between Alliance Partners

Abstract: The transfer of knowledge in alliances entails risk to partners, whose willingness to accept it presumably relies on the trustworthiness that they perceive in their partners. We investigate the extent to which the perceptions of trustworthiness and the willingness to take risk determine the transfer of knowledge between alliance partners and their ultimate impact on alliance success. The results show that the transfer of tacit versus explicit knowledge have very different trust and risk profiles. Whereas explicit knowledge is closely associated with the firm's willingness to take risk, tacit knowledge is intimately related to high trustworthiness. The results support the important role of trust and the transfer of tacit knowledge on the success of learning alliances.

Knowledge management in software engineering: A systematic review of studied concepts, findings and research methods used

Abstract: Software engineering is knowledge-intensive work, and how to manage software engineering knowledge has received much attention. This systematic review identifies empirical studies of knowledge management initiatives in software engineering, and discusses the concepts studied, the major findings, and the research methods used. Seven hundred and sixty-two articles were identified, of which 68 were studies in an industry context. Of these, 29 were empirical studies and 39 reports of lessons learned. More than half of the empirical studies were case studies. The majority of empirical studies relate to technocratic and behavioural aspects of knowledge management, while there are few studies relating to economic, spatial and cartographic approaches. A finding reported across multiple papers was the need to not focus exclusively on explicit knowledge, but also consider tacit knowledge. We also describe implications for research and for practice.

The Impact of Multinational Enterprise Strategy on Indigenous Enterprises: Horizontal Spillovers and Crowding Out in Developing Countries

Abstract: Under what conditions does a multinational enterprise's (MNE's) investment in a developing country produce spillovers for local firms operating in the same industry? In this paper I view firms as unique configurations of tacit and codified knowledge, and I propose that the strategies pursued by an MNE will determine whether the investment will create positive externalities, through knowledge diffusion and provision of public goods, or negative externalities, through a crowding out effect on indigenous enterprises.

Heading into the unknown: Everyday strategies for managing risk and uncertainty

Abstract: Within interdisciplinary risk research, strategies for managing risk and uncertainty based on cognitive rationality are seen as more effective than non-rational strategies, such as hope, belief, or avoidance. However this dichotomy between rational and irrational strategies neglects a whole range of everyday approaches to risk that are neither completely rational nor irrational as they may involve the use of prior knowledge and experience. These in between strategies include the use of emotion, trust, and intuition to make decisions, and they can be seen as complementing and overcoming some of the limitations of instrumental and calculative forms of risk and uncertainty management and therefore in combination they facilitate more effective control over the future. In late modern societies, individuals' decision-making has become increasingly important and problematic because the rising complexity and volatility of decision-making situations. Individuals have to make important or 'fateful' decisions in an almost reflex-like manner, without enough time or knowledge available. Such decision-making requires increased trust, for example in the experts with appropriate knowledge and skills. The important aspect of trust is less its implicit or unconscious aspect but the underlying experience-based knowledge. Similar to intuition, trust refers to tacit knowledge and pre-conscious awareness of reality. Intuition seems close to the kind of embodied (or even innate) knowledge high risk takers use. Trust and intuition both involve feelings and emotion. Positive affect is associated with trust while intuition can be expressed in emotional terms, e.g. when individuals use the sense that 'it feels right to me' as a basis for action. While experts may prescribe cognitive-rational strategies as the most effective response to risk, if they do not acknowledge and recognise the importance and capacity of non-rational and in between approaches then it is likely that individuals will disregard expert advice or absorb and transform it within their own experiences about and responses to risk. The potential benefits of strategies combining different elements and approaches will be lost.

Factors influencing organizational knowledge transfer: implication for corporate performance

Abstract: Purpose – Whilst knowledge transfer is a major strategy for managing contemporary organizations the impact of the key factors influencing the rate of organization knowledge transfer is relatively unknown. As a contribution to this identified gap this paper aims to discuss the influence of particular organizational factors (IT systems, structured learning strategies, innovative organizational culture, and flexible structure and design) on knowledge transfer using a conceptual framework derived from the literature. The effect of both explicit and tacit knowledge transfer on innovative capabilities and organizational performance is to be examined.Design/methodology/approach – The survey study, conducted amongst 1,086 high‐tech companies, targeted chief executive officers), CFOs (chief financial officers), COOs (chief operation officers) or top managers/administrators as they provided more reliable environmental and organizational information.Findings – The study findings, based on a sample response rate of 1...

Experiential learning and the acquisition of managerial tacit knowledge

Abstract: Tacit knowledge is believed to be one factor that distinguishes successful managers from others. We sought to determine whether levels of accumulated managerial tacit knowledge (LAMTK) were associated with managers' dominant learning styles. Instruments used in the study, involving 356 Malaysian public sector employees, included Sternberg et al.'s (2000) Tacit Knowledge Inventory for Managers and a normative version of Kolb's (1999a) Learning Styles Inventory (LSI-Ill). Findings suggest that LAMTK is independent of the length of subjects' general work experience, but positively related to the amount of time spent working in a management context. Learning styles also had a significant relationship. Subjects who spent most of their time performing management functions and whose dominant learning styles were accommodating had significantly higher LAMTK than those with different learning styles. We also found support for the belief that learners with a strong preference for all four different abilities defined in Kolb's learning theory may be critical for effective experiential learning.

Usage-based grammar and second language acquisition

Abstract: The structuralist theories that dominated the field of linguistics during the twentieth century advocated a separation of language use from the more abstract knowledge of language structure. For Saussure this distinction went under the labels of langue (knowledge of language) and parole (speech) (de Saussure, 1915/1966). In Chomskian theory the distinction is made between competence (tacit knowledge of language structure) and performance (the actual use of language) (Chomsky, 1965). Because knowledge of structure was taken to be the main object of study, there was little interest in the potential effects that usage might have on cognitive structures. However, common sense tells us that for second language learners, repeated exposure and practice are essential to the development of the cognitive structures that lead to fluent and grammatical speech.

A social network-based system for supporting interactive collaboration in knowledge sharing over peer-to-peer network

Abstract: Knowledge sharing enables people in virtual communities to access relevant knowledge (explicit or tacit) from broader scope of resources. The performance in such environments is fundamentally based on how effectively the explicit and tacit knowledge can be shared across people, and how efficiently the created knowledge can be organized and disseminated to enrich digital content. This study will address how to apply social network-based system to support interactive collaboration in knowledge sharing over peer-to-peer networks. Results of this study demonstrate that applying such social network-based collaboration support to knowledge sharing helps people find relevant content and knowledgeable collaborators who are willing to share their knowledge.

The effect of tacit knowledge on firm performance

Abstract: – The purpose of this paper is to propose the use of the tacit knowledge index (TKI) to assess the level of tacit knowledge within firms and its effect on firm performance., – A sample of 108 US and Canadian firms that are using knowledge management was surveyed to determine each firm's TKI. This measure includes both the degree of usage and the tacitness of the knowledge management method. Regression and correlation were used to statistically analyze the innovation and financial outcomes., – Significant relationships were found between a firm's level of TKI and the firm's innovation performance. Less clear is the relationship between a higher TKI and financial measures., – This research gives managers a way to structure their use of knowledge management methodology and use of resources in a way that may maximize performance, either as stand alone systems or as part of the Balanced Scorecard., – The use of this research could greatly reduce the uncomfortable gut feeling that many managers have in funding so‐called soft tacit‐based knowledge management systems rather than invest in easier to assess hardware systems., – This pioneering research develops tacit knowledge as a measurable quantity and links this metric to firm performance.

The quality of group tacit knowledge

Abstract: Organizational knowledge creation theory explains the process of making available and amplifying knowledge created by individuals as well as crystallizing and connecting it to an organization's knowledge system. What individuals get to know in their (working) lives benefits their colleagues and, eventually, the wider organization. In this article, we briefly review central elements in organizational knowledge creation theory and show a research gap related to the quality of tacit knowledge in a group. We advance organizational knowledge creation theory by developing the concept of ''quality of group tacit knowledge.'' Based on this concept, we further develop a comprehensive model explaining different levels of tacit knowledge quality that a group can achieve. Finally, we discuss managerial implications resulting from our model and outline imperatives for future theory building and empirical research.

A knowledge management approach to data mining process for business intelligence

Abstract: Purpose – Data mining (DM) has been considered to be a tool of business intelligence (BI) for knowledge discovery. Recent discussions in this field state that DM does not contribute to business in a large‐scale. The purpose of this paper is to discuss the importance of business insiders in the process of knowledge development to make DM more relevant to business.Design/methodology/approach – This paper proposes a blog‐based model of knowledge sharing system to support the DM process for effective BI.Findings – Through an illustrative case study, the paper has demonstrated the usefulness of the model of knowledge sharing system for DM in the dynamic transformation of explicit and tacit knowledge for BI. DM can be an effective BI tool only when business insiders are involved and organizational knowledge sharing is implemented.Practical implications – The structure of blog‐based knowledge sharing systems for DM process can be practically applied to enterprises for BI.Originality/value – The paper suggests th...

Mining Face-to-Face Interaction Networks using Sociometric Badges: Predicting Productivity in an IT Configuration Task

Abstract: Social network theories (e.g. Granovetter 1973, Burt 1992) and information richness theory (Daft & Lengel 1987) have both been used independently to understand knowledge transfer in information intensive work settings. Social network theories explain how network structures covary with the diffusion and distribution of information, but largely ignore characteristics of the communication channels (or media) through which information and knowledge are transferred. Information richness theory on the other hand focuses explicitly on the communication channel requirements for different types of knowledge transfer but ignores the population level topology through which information is transferred in a network. This paper aims to bridge these two sets of theories to understand what types of social structures are most conducive to transferring knowledge and improving work performance in face-to-face communication networks. Using a novel set of data collection tools, techniques and methodologies, we were able to record precise data on the face-to-face interaction networks, tonal conversational variation and physical proximity of a group of IT configuration specialists over a one month period while they conducted their work. Linking these data to detailed performance and productivity metrics, we find four main results. First, the face-to-face communication networks of productive workers display very different topological structures compared to those discovered for email networks in previous research. In face-to-face networks, network cohesion is positively correlated with higher worker productivity, while the opposite is true in email communication. Second, network cohesion in face-to-face networks is associated with even higher work performance when executing complex tasks. This result suggests that network cohesion may complement information-rich communication media for transferring the complex or tacit knowledge needed to complete complex tasks. Third, the most effective network structures for latent social networks (those that characterize the network of available communication partners) differ from in-task social networks (those that characterize the network of communication partners that are actualized during the execution of a particular task). Finally, the effect of cohesion is much stronger in face-to-face networks than in physical proximity networks, demonstrating that information flows in actual conversations (rather than mere physical proximity) are driving our results. Our work bridges two influential bodies of research in order to contrast face-to-face network structure with network structure in electronic communication. We also contribute a novel set of tools and techniques for discovering and recording precise face-to-face interaction data in real world work settings.

Capturing Knowledge in Construction Projects: Knowledge Platform for Contractors

Abstract: Managing knowledge effectively is critical to the survival and advance of a company, especially in project-based industries such as construction. However, capturing knowledge in construction projects is a tedious task, as knowledge is usually experience based, tacit, and hard to pass on to others. In this study, a survey was carried out among eight leading Turkish construction contractors that are operating within the international construction market. The specific objectives of this survey are to find out how the tacit and explicit knowledge are captured, stored, shared, and used in forthcoming projects, as well as major drivers and barriers for knowledge management. Based on the survey, it was determined that most of these firms do not have a knowledge management strategy and a systematic way of capturing and storing tacit knowledge. A conceptual framework is proposed to formalize the knowledge-capturing process within construction companies. To demonstrate how the conceptual framework can be implemented in practice, a Web-based system, namely, Knowledge Platform for Contractors (KPfC) is presented. It is hypothesized that KPfC can be used to manage both tacit and explicit knowledge effectively in construction projects.

Organizational Learning and Knowledge Management: Whence and Whither?

Abstract: Draws together theorizing in learning, organization and management studies in order to consider the nature of the problems by which the practice of knowledge management is animated. Though in place...

The role of organizational knowledge management in successful ERP implementation projects

Abstract: Special attention to critical success factors in the implementation of Enterprise Resource Planning systems is evident from the bulk of literature on this issue. In order to implement these systems that are aimed at improving the sharing of enterprise-wide information and knowledge, organizations must have the capability of effective knowledge sharing to start with. Based on a review of the literature on the knowledge management in enterprise system implementation projects, this paper identifies two major areas of concern regarding the management of knowledge in this specific type of projects: managing tacit knowledge, and issues regarding the process-based nature of organizational knowledge viewed through the lens of organizational memory. The more capable an organization is in handling these issues, the more likely it is that the implementation will result in competitive advantage for the organization. The competitive advantage arises from the organization's capabilities in internalizing and integrating the adopted processes with the existing knowledge paradigms and harmonizing the new system and the organizational culture towards getting the most out of the implementation effort.

The knowledge system of a firm: social capital for explicit, tacit and potential knowledge

Abstract: Purpose – The purpose of this paper is to bring clarity to the concept of social capital in the value creation in firms from the knowledge management perspective. To discuss the social characteristics of different types of knowledge.Design/methodology/approach – Based on a review of the literature, it is argued that different types of knowledge have the distinctive logic of value creation and social capital. Social capital is seen as a network of individuals with shared norms, beliefs and trust.Findings – The social network structure for explicit knowledge is centralized and maintained by clearly defined rules, beliefs in high quality and trust in organizational hierarchy. The social network structure for tacit knowledge is distributed and maintained by the norms of reciprocity, beliefs in lifelong learning and an incremental trust. Finally, the social network structure for emergent, potential knowledge is decentralized and maintained by liberal norms, beliefs in innovativeness and an enabling type of tru...

System and method for knowledge management

Abstract: A system and method for knowledge management in an organization. The system and method employs an intranet site whereby members of the organization can easily and efficiently access explicit knowledge and tacit knowledge relevant to complete processes in an organization. As members of an organization communicate and collaborate with each other using the present disclosure, new knowledge or ideas or best practices may form as a result of the collaboration which then should also be captured and codified as explicit knowledge.

Impact of office layout on communication in a science‐driven business

Abstract: Driving innovation and creativity has relied heavily on new information technologies in the last decade. Human capital has certainly had its importance, but how to coordinate human capital in order to push productivity in research and development without compromising individual initiative is still not well understood. In this paper, we provide results showing that geometry of workspace has indeed an impact on communication patterns and may thus be used as a means to drive both innovation and efficient research. In order to be creative, new knowledge has to be created. Communication facilitates knowledge creation. We try to close the bridge between areas of creation of tacit knowledge and transfer of knowledge highlighted by authors like Nonaka, Takeuchi, Konno, von Krogh and von Hippel with the area of communication patterns pioneered by Allen, Hatch, and Stryker, by considering face-to-face (FTF) communication as a first step for socialization, socialization as a means for knowledge creation. In this article, we compare two different office environments within the same site, same activity, same hierarchical level and same company: a traditional cell office area and a new multi-space office, used by people who used to work in cell offices. We observed FTF communication patterns during 120 h in two areas and measured over 2,000 communication events. We found that people communicate three times more often in a multi-space area than in a cell-space area. We also found that the mean duration of communication events decreased from 9 to 3 min when transferring collaborators from a cell-space to a multi-space. Finally time spent without communication increased from 5% to 29% when going from cell-offices to multi-space areas – leaving more time for people to work and think on their own. And we found that most communication events during work time in the multi-space took place at the work place and seldom or never in soft sitting areas installed for the purpose of communication.