Abstract
The first thing to note about Nonaka’s theory of organizational knowledge creation is how radical it was. Prior to 1994, a great deal had been written about knowledge creation by firms, however, for the most part it emphasized two processes: first, discovery through search, as in the case of scientific discovery, technological research and market research (Jewkes et al., 1961; Von Hippel, 1988; McFadden, 1986); second, learning — especially learning-by-doing (Argyris & Schon 1978; Argote & Epple, 1990). Nonaka’s theory of knowledge creation says little about the discovery of knowledge that is new to the world, rather its focus is on the processes through which knowledge develops and expands within organizations. Nonaka’s ‘knowledge spiral’ comprises a number of organizationally-embedded processes through which knowledge is shared, transformed, integrated, reinterpreted and activated. In doing so, Nonaka (1994) constitutes a major advance in the emerging ‘knowledge-based view of the firm’. For example, while Kogut and Zander (1992) had referred in general terms to the firm as an knowledge processing institution, Nonaka is much more explicit about the ‘higher order organizing principles’ through which ‘individual and social expertise is transformed into economically useful products and services’; and about the operation of the firm as a ‘social community of voluntaristic action’ (Kogut & Zander, 1992, p. 384).
Published Version
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