The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation

Book Description

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 with the 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.

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Manufacturers around the world have learned much from Japanese manufacturing techniques. However, any company that wants to compete on knowledge must also learn from Japanese techniques of knowledge-creation. Managers at Japan's most successful companies recognize that creating knowledge is not simply a matter of processing objective information. Rather, it depends on tapping the tacit and often highly subjective insights, intuitions, and ideals of employees.

Customer Reviews:

Not even worth one star.......2005-11-21

I was very disappointed by this book. Not only was it painful to read, because it dragged on and was full of academic nonsense, the authors views were also unconvincing and based on old research.

This book is outdated and not relevant to the way Japan is today. The authors use a lot of research and examples from the 80s and even the 70s. They make the claim that Japanese firms experienced a lot of success in the late 70s and 80s because of their superior ability to "create knowledge." They seem to be in complete denial that Japan's economic bubble had anything to do with this "success" that they are talking about. Also, the book was written over 10 years ago, before the financial crisis and before people realized that a lot of this so-called success was just cooked in the books by accountants.

They do give some reasonable examples of knowledge creating firms that are successful, but that's all they are, just a few examples and not an accurate representation of the whole picture of Japanese Management. Also, most of the examples are of Japanese manufacturing firms. What about the service sector? Suspiciously they did not use examples of companies from Japan's service sector, which are extremely inefficient and not the text book perfect examples of successful "knowledge creating" firms.

The theories and models in this book are a bunch of overly abstract vague pretentious academic nonsense. The real life examples are so nebulously related to the theories and models that most successful (or unsuccessful) companies can be used as examples.

If you want to read a bunch of nonsense based on old research with the names of Harvard professors and some philosophy thrown in to make the nonsense seem legit and intelligent, then by all means, read this book. But if you are like me and want to learn about Japanese management, don't waste your time or money on this book.

BEWARE! Digital version is only a 10 page summary!.......2004-03-16

Don't get caught like I did.

From information-processing machine to knowledge-creating co.......2002-08-28

This book is the classic in the organizational learning approach. But it¡¯s more than that. This book is not about lean production or Japanese kaizen system, but about how to enhance a firm¡¯s adaptability to turbulent environment through knowledge creation. with suggesting new concept of knowledge-creation as the tangible base of organizational capabilities or innovation, this book serves as the bridge between organizational learning school and resource-capabilities view.
As the being to survive in environment, the firm processes signals or information from environment. Knowledge is the framework to process info to interpret the state of environment. Up to 1980s, the company was viewed as information-processing machine. Indeed, firm is the flow of information. That kind of view has been justified against the business reality. Actually, it¡¯s the very picture of bureaucratic organization which culminated in GM¡¯s M-form model. Here, CEO like Jack Welch is the hero. Such an organization is effective when the environment is stable and predictable. But since 1970s, things have changed. Uncertainties have been amplified with the hypercompetition on global scale. Now the framework to interpret the signal from environment, itself should incessantly and systemically be adapted to turbulent reality. Knowledge and innovation have come the words of the day. Not surprisingly, there has been growing dissatisfaction with traditional organizational structure. Kao¡¯s CEO, Maruta put it in this way: ¡®The intelligence of a firm does not come from the president nor top management. That must come from the gathering of all knowledge of all members.¡¯ This book is about to how to build organization as the effective innovation site. To do so, all the available knowledge in and out of company should be able to be mobilized and freely flow throughout the firm. For instance, front line employees are constantly in direct touch with the outside world. They can obtain access to the up-to-date info on the market, technology, or competitors. But their knowledge is, in most cases, not able to be expressed in explicit way. Generally, it¡¯s the tacit knowledge. But to survive more and more intensified competition, the firm should be apt to mobilizing their tacit knowledge. To achieve such a goal, task force or bottom-up organizational model emerged. In those model, the creative knowledge worker, in Peter Drucker¡¯s term, is the hero. But in those models, knowledge tends to be confined to narrow front line, and comes and goes with creative employees. And worse, the firm can¡¯t react as an efficient unit to threats from environment. As a result, innovation is the haphazard event. So there should be some integrating mechanism like hierarchy. To be efficient unit, knowledge should flow all over the company. Here, authors rediscover the significance of middle managers. They play the role of midwife and amplifier of knowledge from front line employees and between various divisions in the firm. They coordinate the flow of knowledge and maintain the firm as a coherent knowledge-creating unit. In short, the firm should be organized as the melting pot of member¡¯s knowledge. Authors take examples from Japanese firms to illustrate what¡¯s like such a site.

A look at knowledge creation.......2001-11-26

I came to this book through a reference in Novak & Gowin. What caught my eye was that someone was willing to talk about an epistemological stance other than the analytic, reductionist view held in science. For the most part, I found this book's understanding of Western epistemology to be reasonable; I can't speak for the Japanese epsitemology cited. What interested me, and for which I recommend the book, is their view of knowledge creation. The case studies lend weight to their view, but they do explicate a possible model for turning subjective knowledge into explicit knowledge. They suggest a management model for making it happen. The book is very well written and edited.

I believe the book needs a very careful read *outside* the business community. I would put this book down as the business version of Feynman's *The Character of Natural Law*.

An essential book on knowledge management.......2001-09-28

This is perhaps one of the most important books presently available on knowledge management. The authors demonstrate how 'knowledge' is vital to innovation within Japanese firms, with clear distinction made between 'tacit' and explicit' knowledge. An effort is made to distinguish the differences between Japanese and Western firms through an emphasis on the importance of 'tacit' knowledge and a 'middle-up-down' management process. Other than Chapter 2 (a review of philosophical background relating to epistemology which might put some readers off), this book has minimal jargons and complexities and would be an easy and enjoyable read even for non-academics. The arguments presented by the authors are well-illustrated with relevant industrial examples. Overall, this is a book that not only brings a new perspective to knowledge management but also raises questions for the ardent researchers who might ponder over its relevance to non-Japanese firms.

History: Fiction or Science? (Chronology, No. 1)

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Calculations are only as good as your numbers
Pants on fire?
Accepted History & Chronology Must Be Changed.
Very Interesting
History as Science Fiction

History: Fiction or Science? (Chronology, No. 1)
Anatoly Fomenko
Manufacturer: Mithec
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Binding: Paperback

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ASIN: 2913621058

Book Description

Recorded history is a finely-woven magic fabric of intricate lies about events predating the sixteenth century. There is not a single piece of evidence that can be reliably and independently traced back earlier than the eleventh century. This book details events that are substantiated by hard facts and logic, and validated by new astronomical research and statistical analysis of ancient sources.

Customer Reviews:

Calculations are only as good as your numbers.......2007-08-03

Yes, we can all agree that mainstream history is nearly 100% BS due to politics, economics, ego, problems with dating techniques, and various conspiracies. Agreed. But, I've been researching the distinct possibility that human history (in terms of civilizations) are much more ancient than we've been told, so coming across this book was very interesting to me. I wondered how Fomenko could be wrong (if at all) because he is very persuasive in his presentations. Then it dawned on me. If at previous times in prehistory, due to the various catastrophies that are well documented (comets, asteroids, planetary disruptions, plasma discharge, pole reversals, etc) the Earth was in a different position in relation to the sun, different tilt on its axis, different orbit, different rotation (in terms of velocity and DIRECTION), and the continents were in different positions, then would this not cause the ancients to see the sky (constellations) differently? In other words, is Fomenko making erronious assumptions about the physics of the Earth in pre-history, which then corrupt his data with regards to dating the relevant astrology? The last event to seriously disrupt our planet occured roughly 3500 years ago, according to other good researchers, so is it possible Fomenko has been confused by this? The vastly different physics of our planet in the not so distant past may explain this confusion, which is not to say the "mainstream" version of history is correct; on the contrary. I am not an expert in these fields, but wanted to see if this idea could spark discussion.

Pants on fire?.......2007-07-19

Will people ever read before spamming? Yes, Jesuits could not rewrite world history alone, they had help. Anyway, Dr Prof Acad A.Fomenko does not point to jesuits as the driving force of world wide history manipulation in published volumes 1,2,3;, actually he barely mentions the poor devils. Check it with 'Search inside' feature, please. China is rarely mentioned either, in fact, Dr Fomenko is completely eurocentric. Right, his theory contradicts all mainstream schools of history, because in their actual state they are all built on blatantly erroneus chronology. You don't need a mysterious cabal (conspiracy) to falsify history, the falsification is its modus operandi. It is inherent to history(ians) to falsify (distort) events, as it is inherent to humans to boast as it is inherent to power (authority) to legimize itself by referrring to glorious past made to its own order. Dr Prof Fomenko and team have identified scores of instances of such manipulation in Russian, European, etc.. history, and delivered valid statistical proof thereof. His own 'reconstruction' is completely another story. Forget c14 as a valid method of dating. W.Libby has initially discovered a brilliant method of INDEPENDENT dating. Too bad, c14 method has become a joke after a forced marrige with dendrochronology with consensual chronological scale inbuilt. Radiocarbon method can't stand blind tests, but is so very productive as a rubberstamp.

Accepted History & Chronology Must Be Changed. .......2007-04-09

There is no doubt that history as most know it is a sham, & institution's version of History both University & Church is fradulent & inaccurate. Everything was established with an agenda, The real "Dark Ages" are now when we have access to incredible amounts of information past authorities & more important 'common folk' didn't have but our institutions & educators are slow to evolve because of what has ignorantly & arrogantly been taught for too long. This is on many subjects not just Chronology.

For anyone to question "Why would a Mathematician have anything credible to say of History?" The answer is from Dr. Fomenko's preface in the book: "It would be worthwhile to remind the reader that in the XVI-XVII century Chronology was considered to be a subdivision of Mathematics." These volumes could possibly be some of the most important works to date & should be read by everyone with an interest in History, especially professors & educators who have a duty to the public. I have read both books & must say that 'Chronology 1' has some very eye opening & revolutionary information. Even if these volumes are part true the implications are profound & opens the doors to further investigations & questions which must be done. I speak several different lanquages & must say the logic Dr. Fomenko uses with "inflection" of words & words being read from left to right in one region & right to left in another then written backwards, the removal of vowels & get down to basics of words, or different cities & locations having the same name etc. is correct. Vowel usage has always been optional & varied, actually complicating linquistics & study. The first thing one has to understand is that words never had a fixed spelling in history like we do now, the spelling of words was mutable & regional, as well as names & titles of people were vast, varied & changed, NOTHING WAS FIXED or understood linear. Matters of Life & Death as well as financial profiteering yesterday & today were & are made with ignorant, illogical & conspiratorial views of history & reality, it's time people get closer to the Truth & society collectively grow up.

Very Interesting.......2007-03-07

It is a good proposal and I believe it will mature into something even better in the future. I think it deserves to be read.

History as Science Fiction.......2007-01-10

Anatoly Fomenko has written a very intriguing book, full of pictures, charts, and computer 'proof' of his thesis: backwards of AD900 we don't really know what happened or when. Between AD900 and AD1600 there is more certainty, but there is still a lot of fuzzy ground, and things don't get reliable until we get past the 1600's where the printing press made it very difficult for the perpetrators of this timeline manipulation to change anything that had been committed to print. The Dark Ages did not happen. Books were burned for a reason. One organization has doubled the actual length of its existence by expanding the real chronology. Read why.

I had always wondered why Christ died about AD33 and yet men waited until the 11th century to form the Knights Templar, the Cathars, etc and go after the Holy Land by force. Why the 1000 year gap? Turns out there wasn't more than a 10-12 year gap and he proves it using astronomy. This also implies that the planet is not as old as we have been told, and current Christian and other creationist scientists are already championing that idea without being aware of Fomenko's book. The two groups, creationist scientists and the Russian mathematical analysts corroborate each other. Fascinating.

Of course, all this flies in the face of what we have been told traditionally is the 'proper' chronology of western civilization, and most readers will experience 'cognitive dissonance' in reading this book. It means that our history going backwards from AD1600 becomes progressively more incorrect and unreliable until it cannot be trusted at all... in the space of 700-800 years.

Naturally, the curious, open-minded reader will want to know WHO did this, WHY, and did any of the events we think of as really ancient ever happen?
Dr. Fomenko is a respected scientist/mathematician at Moscow State University who has already answered these questions to the satisfaction of his initially skeptical colleagues. Most of them are now believers, a few still refuse to believe (the usual diehards), and of course the western press has ignored Fomenko's work -- for obvious reasons when you read the book. The ones who perpetrated this chronology ruse have a lot to answer for. They are still with us. That's why this book is a well-kept secret.

I gave the book a 4-star rating because I was unable to check out some of his claims; those I checked were as he said. But if even 1/3 of his claims are true, this punches a big hole in what we think is our history, the meaning of western civilization, our educational process (for repeating the ruse as gospel), and the trustworthiness of the organization that perpetrated this ruse, well-intentioned or not.

This book relates to current research into a Young Earth paradigm, to John Keel's discoveries about our planet, and Fr Malachi Martin's insights (in his now out-of-print books). We are indeed sheep who are manipulated and kept ignorant -- for a reason. While knowing what these men have to say may be the "booby prize" (as in: 'what can you do with this knowledge?'), it will provide interesting reading. Didn't someone say: "...and the Truth will set you free."?? For you to judge if this book contains the truth.

Competitive-cum-Cooperative Interfirm Relations and Dynamics in the Japanese Semiconductor Industry

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Interfirm networks in Japanese semiconductor industry

Competitive-cum-Cooperative Interfirm Relations and Dynamics in the Japanese Semiconductor Industry
Yoshitaka Okada
Manufacturer: Springer
ProductGroup: Book
Binding: Hardcover

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ASIN: 4431702660

Book Description

Japanese semiconductor firms are well known for obtaining dynamics in a short period of time and achieving even global leadership. A significant portion of their success are attributable to cooperative interfirm relations and the development of intermediate organizational structure based on long-term relationship between firms. The purpose of this book is to explain how interfirm relations contributed to their dynamics during the golden age of the semiconductor industry. Meanwhile this book clarifies the real source of dynamics in interfirm relations and how the firms have interacted. The author concludes that the competitive-cum-cooperative (CCC) interfirm interaction are observed. Quantitative and qualitative findings show that firms enjoy not only flexible cooperation based synergy effects, but also dynamics market-like effects by creating competition among partners through CCC interaction.

Customer Reviews:

Interfirm networks in Japanese semiconductor industry.......2003-04-24

Japanese manufacturers are less vertically integrated than their American or European counterparts. They tend to be smaller and more specialized. For example, Toyota outsources about 75% of components; in the US only Chrysler reaches this degree. But Japanese firms don¡¯t organize the vertical chain through arm¡¯s length transaction. Instead, they rely on a web of long-term, informal relationships between firms up and down the vertical chain. Unlike the
hostile relationships many American and European firms have with subcontractors, in Japan, these relationships involve a much higher degree of cooperation and delegation of a more sophisticated set of responsibilities to subcontractor. This kind of relationship is cited as an excellent example of the trust-based interfirm networks which substantially reduce the transaction cost involved in transactions along the value chain, and is known as the vertical keiretsu.
Such interfirm networks have persisted since the Meiji period, and were constructed in an effort to reduce the uncertainty engendered by market fluctuation. If it¡¯s not the commodified items, frequent switching of subcontractor could result in instability in the quality and quantity of it. With trust-based long-term relationship, they could expect timely delivery, quality control, and stable supply. But this trust-based long-term relationship introduced the rigidity and inflexibility to cope with the dramatic shifts in the environment. The first oil crisis posed a serious threat to the viability of Japanese firms. Cut-throat competition over shrunken international market drove the Japanese firms to enhance competitiveness in all front from cost, quality and the lead time. In doing so, they changed the dynamics of the networks. What they introduced is the subject of this book, in the words of the author, ¡®competitive-cum-cooperation governance, in short, CCC governance. The author deals with the interfirm governance in Japanese semiconductor industry, in particular. But the findings could be applied to other industries like auto, electronics.
CCC governance was developed to introduce the uncertainty in the vertical chain to create market-like effect. While maintaining cooperative links, semiconductor manufacturers imposed several competition-generating measures: strategic pricing, multiple sourcing, and altering procurement sourcing. In strategic pricing, interacting companies cooperatively developed a schedule for reducing prices. In multiple sourcing, semiconductor companies purchased the same parts and materials from multiple sources, so that competition took place among them. While awarding stable cash flows to subcontractors, semiconductor manufacturers could secure the continuous improvement of price and quality. According to data the author provides, the prices were much lower than the spot market transactions. In the words of the author, With CCC governance the Japanese semiconductor firms secured both the allocative efficiency which is the feature of market governance, and the non-allocative efficiency which is the feature of hierarchical governance.
Now you might ask ¡®Is there any reason to coin another neologism? There is already the mountain of seemingly different words which actually have one and the same reference.¡¯ Maybe. The vertical keiretsu could cover the same phenomenon. But author¡¯s intention lies in demonstrating the feature of network which has both cooperation and competition while securing the competitiveness. I think author persuasively illustrates it. And better, he does so not with case study which is hard to represent the population, but with the survey technique. This feature, however, is the weakness at the same time. The author succeeds in drawing out overall picture of the industry. But it lacks the rich depth of the usual business case studies. This makes the book somewhat dry. But I think it worth reading, if you are interested in the Japanese business.

The Dynamics of Japanese Organizations (Routledge Advances in Asia-Pacific Business, 2)

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towards a theory of organizational dynanism

The Dynamics of Japanese Organizations (Routledge Advances in Asia-Pacific Business, 2)
F. Richter
Manufacturer: Routledge
ProductGroup: Book
Binding: Hardcover

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ASIN: 041513191X

Book Description

This book assesses the organizational flexibility and pragmatism of Japanese management styles and contrasts this with Western management approaches which focus more closely on patterns of stability. Issues in change and organizational renewal are covered by analyzing the dynamic processes by which a Japanese company organizes itself, exploring such areas as networks, informatics, quality control circles and human systems management.

Customer Reviews:

towards a theory of organizational dynanism.......2000-07-03

critical, diverse and applicable - a good read.

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