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

 

 

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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.

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*.

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.

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1.0 out of 5 stars Why depend on inscrutable tacit- to- tacit info flows?
Too much reliance on mysterious "knowledge" flow (called tacit to tacit transfers by Nonaka). Yes tacit knowledge is extremely important, but not more so than explicit knowledge... Read more

Published on Dec 25 2003

5.0 out of 5 stars Very interesting and comprehensive book
This book constitutes a very detailed, interesting, and comprehensive description of the organizational knowledge-creation process. Read more

Published on Jan 31 2001 by Mario Schijven

5.0 out of 5 stars Japanese Context...Global Relevance
There are already so many excellent books now available on this subject. What sets this one apart is suggested by its subtitle: "How Japanese Companies Create the Dynamics of... Read more

Published on Nov 16 2000 by Robert Morris

5.0 out of 5 stars THE best book on KM
This is THE best book on KM-one that started the field. Make sure you read this one if you have any interest in knowledge management.

Published on Mar 17 2000 by Pradip Ganguly

4.0 out of 5 stars Great source for understanding knowledge creation.
According to authors, the goal of The Knowledge Creating Company was to (1) construct a new theory if organizational knowledge creation; (2) to provide a new explanation of why... Read more

Published on Dec 3 1999 by Charles Bearden

5.0 out of 5 stars Has including oriental perspective about knowledge !
This book has examplified the difference on knowledge creation between western and eastern culture. Understanding the difference, and thus begin to examining the current paradigm... Read more

Published on Aug 23 1999

5.0 out of 5 stars Brilliant. Takes project management all the way.
The book explores the eastern and western views of knowledge and how it is formed.

It provides significant insights into how organisations can manage and accumulate... Read more

Published on July 22 1999 by antony.loomans@uts.edu.au

5.0 out of 5 stars Ein großartiges Buch über Schaffung und Weitergabe von
Wissen von Einzelnen zu Gruppen und schließlich für das ganze Unternehmen zum Umfeld des Unternehmens. Read more

Published on May 23 1999 by Joe

4.0 out of 5 stars It explains the abstract concept of KM in a good theory.
I spent one whole week reading the book when I was doing my full time MBA and I just loved this book. Read more

Published on July 1 1998

5.0 out of 5 stars A must read for anyone who wants to go 'Global'
'Knowledge!' - was my inspiration after reading this book. This book, by far, is one of the best books ever written on the hot topic of Japan-US. Read more

Published on April 7 1998 by Shogo Richard Tsuru (shogo@act...

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