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Knowledge Creation Theory: Past, Present, and Beyond
 

Knowledge Creation Theory: Past, Present, and Beyond

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    Knowledge Creation Theory: Past, Present, and Beyond Knowledge Creation Theory: Past, Present, and Beyond Presentation Transcript

    • Knowledge Creating Theory: Past, Present, and Beyond Der Chao Chen Graduate School of Knowledge Science Japan Advanced Institute of Science and Technology 2007
    • Outline
      • Background
      • Emergence of knowledge creating theory
      • SECI Model
      • Knowledge spiral
      • Leading the knowledge creating process
      • Knowledge assets
      • The Firm as an dialectic entity
      • Strategy-as-distributed phronesis
      • Discussions
    • Background
      • Knowledge becomes one of production endowments in today’s economic development.
      • Reengineering, downsizing cannot improve competitiveness of Western countries.
      • Prosperity of Japan economy before the “lost decade” (1991-2000) attracted people to find out the success secret of its growth.
    • Emergence of knowledge creating theory
      • Back to 1986, new product development models derived from Japanese companies (Takeuchi & Nonaka, 1986).
      • Middle-up-down management model was proposed (Nonaka, 1988) to emphasize the role of middle managers in the organization.
    • Emergence of knowledge creating theory
      • All begins from Organizational knowledge creation process.
      Source: Nonaka (1994).
    • Emergence of knowledge creating theory
      • Philosophy
      • Western: tacit /explicit knowledge (Polanyi), epistemology (how to know), ontology (what one exists for), etc.
      • Japan: Ba (Nishida), oneness of humanity and nature, oneness of body and mind, and oneness of self and other.
      • Organization theory
      • Information processing perspective,
      • Organizational communication and coordination, and
      • Leadership.
    • SECI Model
      • Socialization
      • Externalization
      • Combination
      • Internalization
    • SECI Model Source: Nonaka & Toyama (2003); colorized in Nonaka (2004)
    • Knowledge spiral
      • Knowledge spiral runs within and beyond the organizational boundary.
      Source: Nonaka, Toyama & Konno (2000).
    • Leading the knowledge creating process
      • Where is the birthplace of knowledge?
      Source: Nonaka, Toyama & Konno (2000).
    • Leading the knowledge creating process
      • Ba: a shared context in motion; the context and the meanings that are shared and created through interactions that occurs at a particular time and space
      Source: Nonaka, Toyama & Konno (2000).
    • Leading the knowledge creating process
      • SECI model + Knowledge spiral + Ba
      Source: Nonaka, Toyama & Konno (2000).
    • Leading the knowledge creating process Source: Nonaka, Toyama & Konno (2000).
    • Leading the knowledge creating process
      • Different knowledge assets in respective elements
      Source: Nonaka, Toyama & Konno (2000).
    • The Firm as an dialectic entity. Source: Nonaka & Toyama (2002); colorized in Nonaka (2004)
    • The theory of knowledge-creating firm
      • Subjectivity: tacit knowledge
      • Objective: explicit knowledge
      • Synthesis: achieved through dialectical thinking and action.
    • Strategy-as-distributed phronesis
      • Phronesis as “ experiential knowledge to make context-specific decisions based on one’s value and ethics (high quality tacit knowledge)”
      • The role of top executives/ founders.
      • The [XX] way, e.g. IBM, HP, Toyota, Honda, Canon, etc.
    • Discussions Level of Managerial Hierarchy Low High Middle Managers Top Management First line employees High Tacitness of Knowledge Low
    • Discussions Level of Managerial Hierarchy Low High High Tacitness of Knowledge Low Middle-up-down management Strategy-as-distributed phronesis Strategy as Practices (?)
    • Discussions
      • The role of top level executive leadership has emphasized and expanded in the development of knowledge creating theory.
      • While strategy-as-practice approach is a new emerging agenda, the role of first line employees and how they work to create, share, and transfer knowledge/routines would be an new direction.
    • Discussions
      • Knowledge creating theory is an knowledge based theory that…
      • Combine philosophic arguments in the business context and knowledge in the field of managerial and organizational studies, supported by cases of Japanese firms.
    • Discussions
      • Chronological progress of knowledge creating theory vs. current management inquiries
      The knowledge creating firm (Nonaka & Takeuchi, 1995). Why do firms differ? (Nonaka, 2006; Nonaka & Toyama, 2005) 1980’s 2006 1995 Why do firms differ? (Nelson, 1991) The new new product development game (Takeuchi & Nonaka, 1986) Competitive advantages/ Strategies (Porter, 1980, 1985) Core competence (Prahalad & Hamel, 1990) 1986
    • Discussions
      • Back to the basic- Why do firms differ?
      • How to differentiate your firm from competitors and lead the competitive pace?
      • To industry community, how to learn from the field for creating knowledge is more critical than developing philosophical, abstract dialogue and arguments.
    • Discussions
      • Questions industry community may interest, such as
      • Could organizational knowledge be well identified, developed, and maintained in different contexts, such as in the different level of hierarchy, SME, and different industries?
      • How to transfer organizational knowledge into real profit?
      • How to establish or identify of phronesis in start ups or SMEs?
    • Thanks for Your Time and Comments Der Chao Chen [email_address] ® All rights of cited figures and tables belong to their original owners