Preview

Organizational Knowledge Creation

Good Essays
Open Document
Open Document
474 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Organizational Knowledge Creation
Organizational Knowledge creation

Knowledge creation is a dynamic capability that enables firms to achieve a sustainable competitive advantage on the market. The most important models elaborated for organizational knowledge creation are: Nonaka’s model, Nissen’s model, Boisot’s model and the EO_SECI model. The two predominant goals of organization are the generation and the application of knowledge, because the capacity to generate and apply organizational knowledge is the source of competitive advantage. Also, it is very important to create knowledge better than the competitors in order to cope on the market. From the point of view of Nonaka, knowledge creation is “a dynamic human process of justifying a personal belief toward the truth and embodying a technical skill through practice”. Therefore, the knowledge-creation theory is based on the assumption that knowledge includes human values and ideas. The knowledge vision of a firm results from the strategic management of the firm and it gives a direction to the process if knowledge creation. Leadership in the knowledge-creating firm is based on the concept of distributing leadership, rather than on leadership conceived as rigid and fixed control mechanism. Organizational culture defines how a person is identified within the organization and how that person conceives its system al values and relates to it. Knowledge assets are intangible resources that contribute to value creation. They can be inputs or outputs of the SECI process. The knowledge-based theory of the firm contains the ecosystem of knowledge which reflects the external business environment. The organization and the ecosystem both develop together increasing the chances for realizing the competitive advantage. While the Nonaka’s knowledge dynamics is based on knowledge conversion through social interactions, the Nissen’s knowledge dynamics is based on the idea of flows, how knowledge moves through an organization. Boisot’d model

You May Also Find These Documents Helpful

  • Powerful Essays

    It is important for firms to emphasize the importance of organizational learning because knowledge is now the most important resource of a company as knowledge can be a source of differentiation and competitive edge for the company. With having an organization that constantly learns, the company will be able to foster the development of innovative ideas, products, and processes that can result in more efficient company operations, better products and services, and increased revenues. Moreover, a learning organization is better…

    • 19747 Words
    • 79 Pages
    Powerful Essays
  • Best Essays

    Nonaka, I. (1994), “A dynamic theory of organizational knowledge creation”, Organization Science, 5(1), pp. 14.…

    • 3515 Words
    • 13 Pages
    Best Essays
  • Powerful Essays

    In today's dynamic and unstable operating conditions of enterprises the ability to innovate is a key factor of survival and success of the organization. Innovations in this case are understood in a broad sense – it means not only to create and offer a new product, but rather the ability of the organization continually develop creative solutions to problems and challenges. In this regard, the role of intangible assets of the organization, especially the knowledge and experience, should be possessed by members of the organization. The concept of "learning organization” forms the approach to management, allowing the most efficient use of data and increasing intangible assets. Why it’s called “learning” organization? Learning involves, on the one hand, self-learning - formation of experience by the individual, but on the other hand - learning is the process of acquiring knowledge from outside. Learning can also be regarded as a “cognition” that includes an analysis of experience, establishing causation and development. To the problems of training and learning in the organization are devoted a lot of modern management concepts and approaches: organizational development, change management, knowledge management, learning by acting. Analysis of these approaches suggests that in relation to the concept of learning organization these approaches serve as methods to make the transition to a learning organization, to create conditions for its occurrence.…

    • 5694 Words
    • 23 Pages
    Powerful Essays
  • Powerful Essays

    Costa Coffee Analysis

    • 2844 Words
    • 12 Pages

    By delving into this project paper, the author intends to have better insights into how knowledge management is thought up, formulated and then imparted down into the subsidiaries of the company. The author hopes to have an in-depth understanding as to how the knowledge management enables companies and organizations to compete effectively and profitably in this era of internationalization where competition is extremely intense.…

    • 2844 Words
    • 12 Pages
    Powerful Essays
  • Better Essays

    Since the mid-1990s, knowledge management has become increasingly significant for business managers and companies. ‘It is broadly accepted that systematic knowledge management is tightly linked with gaining and sustaining competitive advantage.’ (Bogner & Bansal, 2007, p658-6 as cited in Hislop, 2009, p1) The definition of knowledge management is various because of the wide range of this concept and its complexity (Al-Hawamdeh, 2003). For example, the broad definition provided by McAdam and McCreedy (2000, p155 as cited in Hislop 2009, p53) note that: ‘KM relates to the management of anything classified as knowledge’ Furthermore, Hislop (2009, p59) suggests that: ‘Knowledge management is an umbrella term which refers to any deliberate efforts to manage the knowledge of an organization’s workforce, which can be achieved via a wide range of methods including directly, through the use of particular types of ICT, or more indirectly through the management of social processes, the structuring of organizations in particular ways or via the use of particular culture and people management practices.’…

    • 1109 Words
    • 4 Pages
    Better Essays
  • Best Essays

    Knowledge management can be considered to be an essential strategic function in any organisation today. As the world becomes more globalised, and traditional structures of intermediation are removed whilst new ones are created, it is clear that knowledge, and consequently a learning organisation is one that is more likely to find unique sources of competitive advantage, and be able to develop sustainable competitive strategies in the long term. A number of different processes and sub-processes have been identified with knowledge management, such as knowledge generation, knowledge codification, and knowledge transfer or realisation (Grover and Davenport, 2001). Nonaka (1994) suggests that knowledge itself is created through the conversion between tacit and explicit knowledge, through the processes of socialisation, internalisation, externalisation, and combination. Technology has often been used to facilitate and support the processes involved in knowledge management. Knowledge management is essential for sustaining the growth of an organisation and ensuring its success. From the perspective of investors, the worth or value of an organisation is as a result of its ability to strategically retain and generate knowledge that facilitates the organisation’s business activity. The sharing of practices throughout the organisational hierarchy, and adoption of effective techniques formulated by individuals having great expertise in the relevant field can help to improve the efficiency of the business activity. Yet the intertwining of knowledge management processes and information and communication technologies (ICT) may blind knowledge managers to the shortcomings of the use of ICT in knowledge management processes. This essay therefore seeks to present a critical evaluation of the benefits and limitations of ICT in knowledge management processes.…

    • 2359 Words
    • 10 Pages
    Best Essays
  • Best Essays

    In order to create, develop and extract value from knowledge and information, the right operational and strategic processes are needed to put into place. Knowledge management leads to structure and management methods based upon idea sharing thus giving voice to customers, workers and partners. From the organizational perspective, the objectives of exploiting information and knowledge resources should aim to support the effective utilization of knowledge in every company. Generate new knowledge, access valuable knowledge from outside sources, use knowledge in decision making, embed knowledge in processes, products, and services; represent knowledge in documents, databases, and software; facilitate knowledge growth through culture and intensives, transfer existing knowledge into other parts of the organization, and measure the value of knowledge assets and/or the impact of knowledge management.…

    • 1899 Words
    • 8 Pages
    Best Essays
  • Best Essays

    Knowledge management has assumed an important role in the organisational context in the current times. Warner (2008) has rightly emphasised the importance of knowledge sharing and transfer in determining the efficient functioning of an organisation. In the current era of increasing…

    • 2964 Words
    • 12 Pages
    Best Essays
  • Powerful Essays

    Knowledge Management

    • 2695 Words
    • 11 Pages

    "Knowledge management is the set of practices aimed at discovering and harnessing an organization 's intellectual resources. It 's about finding, unlocking, sharing, and altogether capitalizing on the most precious resources of an organization: people 's expertise, skills, wisdom, and relationships. Knowledge managers find these human assets, help people collaborate and learn, help people generate new ideas, and harness those ideas into successful innovations" (Bateman, 2004, p.8-9). One of the most important factors of change in management is the growing need for good, new ideas. Knowledge management is an approach that allows people to produce change. It 's bringing people together and collecting ideas from the group that can provide further success for the company and personally for the employees. A new idea can produce growth and motivation within a company. If the employees and the company as a whole come together and grasp a new idea, it ultimately can lead to new inventions of products and services. (Lineman, 2004.)…

    • 2695 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    The role of leadership in the success of any organization is very much important. Although in Pakistan very little importance is given to this aspect of organizations inspite of this its importance cannot be denied. In other words, Leadership is the backbone of any knowledge centric organization. This research article shed light on the importance of effective leadership skills and practices which can lead any organization to its golden era. The main focus of the study is the changing nature of leadership with the evolution in the meaning of knowledge based organizations. The study is descriptive in nature and relies on secondary as well as questionnaire based survey.…

    • 2405 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Nonaka, I, Toyama, R and Konno, N. (2002) “SECI, Ba and Leadership: a Unified Model of Dynami Knowledge Creation” in Little, S., Quitas, P and Ray, T. (2002) Eds. Managing Knowledge: An Essential Reader. Sage Publication. London.…

    • 1744 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Reconfiguring knowledge management – combining intellectual capital, intangible assets and knowledge creation – Tomi Hussi…

    • 2575 Words
    • 11 Pages
    Good Essays
  • Best Essays

    Bibliography: Nonaka, I. (1991) ‘The knowledge creating company’, Harvard Business Review, Vol. 69, No. 6, pp.96–104.…

    • 4222 Words
    • 17 Pages
    Best Essays
  • Powerful Essays

    INTRODUCTION Over the past 20 years, the study of knowledge creation in organizations has emerged as a body of theoretical and empirical work (e.g. Becerra-Fernandez and Sabherwal, 2001; Chou and He, 2004; Nonaka, 1994; Nonaka and Konno, 1998; Nonaka et al., 1994). Several theoretical and empirical contributions have concluded that leadership plays a significant role in knowledge processes, such as sharing, creation, and capture (e.g. Bryant, 2003; Lakshman, 2005, 2007; Politis, 2001, 2002; Srivastava et al., 2006; Zárraga and Bonache, 2003), and the successful implementation of knowledge management efforts (e.g. Chourides et al., 2003; Kulkarni et al., 2006; Liebowitz, 1999). Yet, leadership is often mentioned in passing as an…

    • 20244 Words
    • 81 Pages
    Powerful Essays
  • Satisfactory Essays

    Knowledge Management

    • 372 Words
    • 2 Pages

    - to lead a knowledge workers, leader must have the competence and creative insight to recognize contribution that would create sustainable competitive advantage.This is because, knowledge workers are included in the creative minded.…

    • 372 Words
    • 2 Pages
    Satisfactory Essays