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The Dynamic FirmThe Role of Technology, Strategy, Organization, and Regions$
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Alfred D. Chandler, Peter Hagstrom, and Örjan Sölvell

Print publication date: 1999

Print ISBN-13: 9780198296041

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0198296045.001.0001

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A Theory of the Firm's Knowledge‐Creation Dynamics

A Theory of the Firm's Knowledge‐Creation Dynamics

Chapter:
(p.214) 10 A Theory of the Firm's Knowledge‐Creation Dynamics
Source:
The Dynamic Firm
Author(s):

Ikujiro Nonaka (Contributor Webpage)

Hirotaka Takeuchi

Publisher:
Oxford University Press
DOI:10.1093/0198296045.003.0010

The thesis that the apparent success of Japanese firms rests on their ability for creation of organizational knowledge is explored. The Japanese experience is taken as a launching pad for a proposed more general theory of how knowledge is, and can be, created in organizations. Two simultaneous knowledge spirals are identified as evolving over time: first, knowledge is created and expanded through the social interaction between tacit and explicit forms of knowledge in a process that is called knowledge conversion—the different modes and requisite enabling conditions that maintain this knowledge spiral are traced; second, another spiral describes how knowledge created at the individual level is transformed into knowledge at the organizational level through a phased process. As the spirals interact over time, innovation is seen to emerge. Clearly, there is a certain normative bent to this view of knowledge creation, and it implies some important lessons for non‐Japanese firms.

Keywords:   companies, firms, innovation, Japan, knowledge creation, organizational knowledge, theory

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