How do firms create knowledge? Ten years ago, in their well-known book The Knowledge-Creating Company, Ikujiro Nonaka and Hirotaka Takeuchi described the importance of knowledge creation and how vital it is to long-term competitiveness. This paper further explore the process of knowledge creation.
Using data gathered from a survey of over 2,100 firms, Midgley and his colleagues set out to look at current thinking about knowledge creation. Their paper analyses the process of knowledge creation within the organisation, and explores the relationships between four key dimensions: knowledge acquisition, problem-solving capability, new knowledge creation and firm performance. They look also at knowledge utilisation, a particularly important area, for knowledge creation will not translate into performance unless knowledge can be used effectively.
The article also makes clear the differences between knowledge acquisition (learning from outside sources) and creating new knowledge within the firm. It appears that quite different capacities and skills are required. For example, firms and managers that are good at problem-solving will tend to be better at knowledge creation, as managers are experienced at analysing problems and reaching a solution. But problem-solving ability is less helpful when it comes to acquiring external knowledge , where a different skills set is required.
The study concludes with ideas on how managers can become better at focusing their efforts.
Authors: Christine W. Soo, David F. Midgley, Timothy M. Devinney
Source: Australian Graduate School of Management
Subjects: Knowledge Management, Organizational Behavior
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