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This paper proposes a paradigm for managing the dynamic aspects of organizational knowledge creating processes. Its central theme is that organizational knowledge is created through a continuous dialogue between tacit and explicit knowledge. The nature of this dialogue is examined and four patterns of interaction involving tacit and explicit knowledge are identified. It is argued that while new knowledge is developed by individuals, organizations play a critical role in articulating and amplifying that knowledge. A theoretical framework is developed which provides an analytical perspective on the constituent dimensions of knowledge creation. This framework is then applied in two operational models for facilitating the dynamic creation of appropriate organizational knowledge.

AbstractIn recent years knowledge management (KM) has received increased attention from academics and practitioners. There are several challenges to establishing KM as a separate discipline one of the most central being conceptual plurality. The purpose of this paper is to review and position 20 of the most frequently cited KM articles in management journals. More specifically, this paper classifies the KM publications on the subjectivity–objectivity continuum, discusses the strengths and weaknesses of the publications drawing from positivism and interpretative philosophies, and further discusses the challenges in KM, and how objectivity and subjectivity can be used to provide both product and process orientations in future research. Copyright © 2006 John Wiley & Sons, Ltd.

Nonaka's paper [1994. A dynamic theory of organizational knowledge creation. Organ. Sci. 5(1) 14–37] contributed to the concepts of "tacit knowledge" and "knowledge conversion" in organization science. We present work that shaped the development of organizational knowledge creation theory and identify two premises upon which more than 15 years of extensive academic work has been conducted: (1) tacit and explicit knowledge can be conceptually distinguished along a continuum; (2) knowledge conversion explains, theoretically and empirically, the interaction between tacit and explicit knowledge. Recently, scholars have raised several issues regarding the understanding of tacit knowledge as well as the interaction between tacit and explicit knowledge in the theory. The purpose of this article is to introduce and comment on the debate about organizational knowledge creation theory. We aim to help scholars make sense of this debate by synthesizing six fundamental questions on organizational knowledge creation theory. Next, we seek to elaborate and advance the theory by responding to questions and incorporating new research. Finally, we discuss implications of our endeavor for organization science.

Using a large-scale data set on product development organizations of Japanese manufacturing firms, this paper explores the effects of organizational capabilities on product development performance. We present a conceptual framework assuming that organizational capabilities consist of multilayered knowledge. Based on the idea, we classify organizational capabilities into "local," "architectural," and "process" capabilities along two dimensions: modularity and designability. The empirical analysis demonstrates differential effects of different types of organizational capabilities on different types of product development performance, and compares the differential effects between two types of industries that differ in terms of their product characteristics: system based and material based. The central message from our analysis is that the process capabilities emerging from dynamic interaction of knowledge play a crucial role as core capabilities for product development of Japanese firms in the system-based industries in which Japanese firms are relatively competitive. In the material industries, however, local capabilities have major effects on performance while effects of process capabilities are limited, which underlies the relative weakness of Japanese firms in developing material-based products. Our results raise some intriguing implications on the competitive advantages and challenges of Japanese firms' product development.

The creation and management of knowledge has become a central concern to business and management, both as a source of value and as an opportunity to achieve and sustain competitive advantage. This new book brings together leading thinkers in the area of knowledge and innovation management in a state of the art collection of studies in this field