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The Knowledge-Creating Company : How Japanese Companies Create the Dynamics of Innovation
by Ikujiro Nonaka and Hirotaka Takeuchi

Reviews
Synopsis
An inside look at Japanese businesses considers case studies from such firms as Honda, Canon, Matsushita, NEC, and 3M; examines two types of organizational knowledge--explicit and tacit--and reveals the results of the Japanese focus on tacit knowledge. UP.

Synopsis
The authors contend that Japanese firms are successful because they are innovative--and not merely masters of imitation as some think--and because they create new knowledge and use it to produce successful products and technologies. Illustrations.

The author, Hirotaka Takeuchi, April 7, 1998
A must read for all Global business people!
Guaranteed to be your reference to US-Japan business and cultural differences - and how you can make the most of it.

A reader from Taipei , August 23, 1999 
Has including oriental perspective about knowledge !
This book has exemplified the difference on knowledge creation between western and eastern culture. Understanding the difference, and thus begin to examining the current paradigm and practice on knowledge creation process, can help organizations to improve the way they building intelligence capital fundamentally.

A reader from Sydney, Australia , July 21, 1999 
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 knowledge. It goes way beyond Senge (The fifth Discipline) but includes Sartre, Aristotle and others. It ties in with Peter Checkland's Information, Systems and Information Systems in a way that provides a useful guide to anyone challenged by organisational change,or involved in project or program management.

Solid Theory. Inspired case studies. Overall one of the best investments I ever made.

A reader from WIEN, Österreich , May 23, 1999 
Ein großartiges Buch über Schaffung und Weitergabe von
Wissen von Einzelnen zu Gruppen und schließlich für das ganze Unternehmen zum Umfeld des Unternehmens. Nach einer theoretischen Einführung wird man über etliche sehr interessante Fallstudien zum Nachdenken angeregt. Den Abschluß bildet eine sehr präzise Anleitung zur Umgestaltung des Unternehmens zu einem "Wissen erschaffenden Unternehmen".

A reader from the United Kingdom, July 1, 1998 
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. It's articulate, interesting (except first two chapters, especially the second chapter - sorry to say that), and inspiring. However, be careful when you read it, especially about what the authors' intention is, i.e. to theorise about their rather unique perspective on the CREATION of ORGANISATIONAL (not individual) KNOWLEDGE. As such, don't miss the Preface, in which authors explain their intention of writing this book (their belief) - 'There is nothing so practical as a good theory' (mentioned by Kurt Lewin). That's all I wanted to say, enjoy reading it. And...the whole week I spent finally paid off, I got 'A' grade in this assignment - it adds to my happy memory on those days!! Take care.

A reader from Berkeley, CA, USA , April 7, 1998 
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. The authors seem to contend that 'Knowledge' is created through the synergy of divergent IDEAS or cultures. Not necessarily from just identifying, respecting, or fearing different ideas. This book goes beyond the realm of business, and is applicable to your everyday life as some of us are destined to bridge the gap between two or more cultures. It teaches that it's okay to be both American and Japanese, and the most important issue is - to become the best of both worlds and to educate and inspire others to do so.

A reader , April 23, 1997 
The hidden organisational agenda of Japanese success
Why have Japanese companies become successful? This book offers a new explanation. It is argued that success of Japanese companies is not due to manufacturing prowess; access to cheap capital; close and cooperative relationships with customers, suppliers and government agencies; or lifetime employment and other human resources management practices - although all of these factors are important. Instead the claim is made that Japanese companies have been successful because of their skills and expertise at "organisational knowledge creation". This term is defined as the capability of the company as a whole to create new knowledge, disseminate it throughout the organisation, and embody it in products, services, and systems. The book's case studies demonstrate that this is the golden key to the distinctive ways that Japanese companies innovate continuously, incrementally and spirally. Rugby provides a metaphor for the speed and flexibility with which Japanese companies develop new products - as in rugby, the ball gets passed within the team as it moves up the field as a unit. The ball being passed around in the team contains a shared understanding of what the company stands for, where it is going, what kind of a world it wants to live in, and how to make that world a reality. Highly subjective insights, intuitions, and hunches are also embraced. That's what the ball contains - namely, ideals, values, and emotions. Ball movement in rugby is borne out of the team members' interplay on the field. It is determined on the spot ("here and now"), based on direct experience and trial and error. It requires an intensive and laborious interaction among members of the team. This interactive process is analogous to how total knowledge is created organisationally. This book calls for a fundamental shift in thinking about what the business organisation does with knowledge. Two kinds of human knowledge are distinguished. One is "explicit knowledge" which can be articulated in formal language including mathematical expressions and manuals. This kind of knowledge can be transmitted across individuals formally and easily. It has been the dominant mode of knowledge in the Western philosophical tradition. The Japanese company adds a second type of knowledge, "tacit knowledge" which is hard to articulate with formal language. This more personal form of knowledge is embedded in individual experience and involves intangible factors such as personal belief, perspective and the value system. In the West, tacit knowledge has been overlooked as a critical component of collective human behaviour. In contrast, tacit knowledge - and diffusion of learning from individual to team to organisation is a critical source of Japanese companies' competitiveness. Unless you understand this, Japanese management - and the way they win the business team game - will remain an enigma.

A reader, November 11, 1996 
A great book on knowledge creation and knowledge transfer from individuals to groups to organizations and beyond organizational borders. The book contains some very interesting case-stories.