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

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The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation ReviewAccording 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 certain companies are successful at continuous innovation; and (3) develop a universal management model that converges management practices found in Japan and in the West. In my opinion Nonaka and Takeuchi did an excellent job in all three areas! The presentation of topics is clear and well written. I found chapter 3, Theory of Organizational Knowledge Creation, highly insightful, particularly in the discussion of the Two Dimensions of Organizational Knowledge - epistemological and ontological, and the Four Modes of Knowledge Conversion - socialization, externalization, combination, and internalization.
Drawing from companies such as Honda, Canon, 3M, and GE the authors effectively and convincingly use real world examples to demonstrate organizational knowledge creation.
Nonaka and Takeuchi also provide an in-depth view of Western and Japanese dichotomies and how "synthesis" of both philosophies' can create new solutions.
The Knowledge Creating Company is an excellent resource for Organizational Theory and Strategic Management students or anyone with an interest in how knowledge is created in Japanese and Western companies.The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation Overview

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