(PDF) Knowledge management and innovation management

Innovation and Knowledge
management

INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
CONCLUSION................................................................................................................................6
REFRENCES...................................................................................................................................7

INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
CONCLUSION................................................................................................................................6
REFRENCES...................................................................................................................................7

INTRODUCTION
Innovation is totally related to the knowledge of individual who is bringing something
new in market area. In simple term it can be said that for coming up with something latest or
unique in market there is requirement of proper knowledge about it (Akintoye, Goulding and
Zawdie, 2012). This report is based on Nonaka and Takeuchi two model in which critical
evaluation on these has been done for finding out which one will be the best for innovation
process. Along with this, how it will help in applying to the knowledge management to the
innovation of products. Apart from it, report is based on Japanese industry electronic market
MAIN BODY
Innovation is necessary for long term sustainability of the organisation because customers
want something new when they are spending their hard earned money on purchasing any project.
Two author of knowledge management Nonaka and Takeuchi who introduce SECI model in
which most important contribution is of Ikujiro Nonaka (Andreeva and Kianto,2012). Because he
worked extensively with the entire concept of explicit and tacit knowledge as well as draw such
frame work on which western firms have to focus much. They both introduce SECI model that
become cornerstone of knowledge creation and transfer theory. Respective model have four
ways through which knowledge can be combined and converted by showing that knowledge can
be created or shared within organisation (The SECI Model and Knowledge Conversion, 2018).
Thus, SECI model is based on two types of knowledge i.e., tacit and explicit. This model is
combination of four points such as Socialization, externalization, Combination and
Internalization. Explanation of this are as follows:-
 Socialization – Tacit to Tacit. In this knowledge is taken to the individual through
guidance of others, imitation, observation and practice. For instance, brainstorm as well
as meeting supports such type of interaction. While implicit knowledge is not easy to
formalize or often time and space definite, although this knowledge can be gained only
by sharing experience. Like spending time together or may be by living in the similar
environment. In simple term it can be said that, socialization is traditional approach of
gaining knowledge because in this things are learnt by observing other or also through
guidance. It is a technique that helps bring employees together so that they can work
productively in the company. For all the workers of the organisation it is very important
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to be socialise so that they can be aware of market issues and trends. It will also help to
spread knowledge all around the world by sharing it with others. If one person is not able
to be socialise than it is not possible to grow and achieve personal goals. While
communicating with the members of a company it is very important to have good
personality which can be acquired by being socialise.
Figure 1Nonaka and Takeuchi knowledge model,2018
(Source: Nonaka and Takeuchi knowledge model,2018)
 Externalization – Tacit to Explicit. In this knowledge is given by Externalization factors
such as publishing, articulating knowledge, developing factors, which surround of the
collective tacit knowledge that allow its communication (Chua and Banerjee,2013). For
instance, concepts, images, as well as any document in written help in such type of
interaction or gaining knowledge. In other words it can be said that, it is difficult as well
as important knowledge conversion process. Tacit knowledge is that which can codify
into any type of manual or document and spread throughout in the organisation.
Utilisation of metaphor is cited as an important externalization mechanism. It guides the
employees to be extrovert so that they can communicate with large number of people. It
is very important process because it can help to gain explicit knowledge for external
sources as well as internal sources. As it can help to enhance knowledge hence it is
essential for the individuals to expand their social network. It guides to grab tactic and
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explicit knowledge to the persons which can help them to add good skills in their
behaviour. If people are not able to become extrovert then it can result negatively for
them because it is an essential element for them to be socially aware.
 Combination – Explicit to Explicit. It is the Combination of organizing, integrating as
well as combining various kind of explicit knowledge, for illustration building
prototypes. For this type of knowledge gaining and management there is requirement of
computerized communication networks as well as large-scale databases because only this
can assist such mode of knowledge adaptation (Dalkir, 2013). Moreover, explicit
knowledge is gathered from inside or outside the enterprise and after that combined,
edited or processed for the formation of new knowledge. The new explicit knowledge is
then spread between the members of the company. It can help the companies to enhance
explicit knowledge of the employees as it is a combination and knowledge flows from
explicit to explicit. It guides the managers to organisation each and every activity of the
employees in which they are responsible to perform effectively so that it can help the
organisation to grow faster. It supervises the top executives to integrate the tasks that are
performed under direction of the managers. They can analyse that all the operational
activities are performed effectively or not. In most of the organisation it is adapted as it
can help them to enhance tehri productivity and profitability.
 Internalization – Explicit to tacit by Internalization (knowledge receiving and
application by an individual), enclosed by learning by doing (Hislop,Bosua and Helms,
2018). Whereas, on the other hand, explicit knowledge becomes component of an
individual's knowledge as well as will be assets for an enterprise. Internalization is also a
procedure of continuous individual and collective reflection or the capacity to see
connections and recognize patterns and the capacity to make sense within fields, ideas,
concepts and so on. It is the last elements of SECI model which is related to the internal
environment of the company. Work force of a company can be aware of all the internal
factors that are required for the effective execution of the business. It is very important
for the companies to communicate their vision, mission and strategic objectives with their
employees so that they can work more effectively to attain organisational goals and also
contribute in the development of the business entity. If an organisation is sharing it
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internal information with its works than it can reduce their productivity of performing
operations.
Apart from this, learning by doing model states that knowledge gaining is continuous
procedure which is created by the user’s collaboration, practices, interaction, learning and so on.
Moreover, this process is analysed as continuous, changing and swirl of knowledge rather than
static model. Learning by doing model is generally a visual representation of overlapping,
continuous procedures which take place - or should take place - within a company (Martín-de
Castro,2015). Below given is the graphical representation of this learning by doing model which
assist in understanding things more easily :
Figure 2Learning by doing
(Source: Learning by doing, 2018)
This model is utilising more and more in the organisations because knowledge is gained
by the employees through their daily practices as well as routine work (Noruzy and et.al., 2013).
In simple term it can be said that, day to day activities also involve reading articles and
observation.
Critical analysis on both of these models – There are two models one is SECI of
knowledge dimension and another is learning by doing. Out of these two learning and doing is
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best for electronic innovation because there are requirement if several things which is needed for
gaining something new (Obeida And et.al., 2016). Moreover, in Japanese’s industry electronic is
the wide sector which always bring something innovative as well as creative in the market that
not only can be done with the help of reading books there is requirement of practical knowledge
so that things can be done in proper manner. Thus, it is necessary to implement learning by doing
model in the organisations. According to Shelley Evenson, 2011 it has been analysed that SECI
model is associated with socialization, externalization, combination and internationalization
which is coined by Ikujiro Nonaka. Actually, Takeuchi is Japanese heavy machinery
organization whose goods covers various materials such as; excavtors, hydraulic excavators and
crawler loaders. However, in almost 1971 Takeuchi launched first compact excavator. Basically,
organization has fully owned subsidiary facilities in United states 1979. On the other hand,
Nonaka was born in Tokyo in around 1935 and lived as a child throughout Japanese defeat by
West during world war second. Therefore, he believes that for avoiding further humiliation,
Japan needs to adopt modern technology and various association skills. However, these two
leading Japanese becomes as a first for tie the development of Japanese of organizations for their
capability in order to create new knowledge as well as for using to produce successful goods and
technologies.
The Nonaka and Takeuchi approach of KM have its root in a holistic framework of
knowledge creation as well as management of serendipity. However, tacit/ explicit spectrum of
knowledge in order to designing for individual or three tier approaches of knowledge sharing and
diffusion are required for creating knowledge and opportunities for producing creation.
Basically, SECI approach, assessment synthesis bridge framework comprises four quadrants of
two by two matrix. Initially, first step is set in upper left corner. On the other hand, synthesis
bridge model step 1 is in lower left corner. By rotating SECI model 90 degree aligns fully
clockwise around two models. However, Nonaka doesn’t label columns or rows in entire SECI
model. On contrary to this, left column is investigating a recent circumstances whereas right
column is prototyping a upcoming circumstances. Hence, it has been understood that both the
models a plays a very crucial role in introducing creative products and services for Japanese
teams. In fact, it is very useful for success of whole nation by coming with innovative ideas and
thoughts for success or development.
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Apart from this, in companies this is utilising more and more now a days because on the
job training is also given to the employees which is totally related to the learning by doing model
(Von Krogh,2012). Throughout the project, it has been analysed that both the players are
playing very crucial role in success of whole Japanese culture because these theory aids in
launching creative products. The SECI model of knowledge dimensions is a model
of knowledge creation that explains how tacit and explicit knowledge are converted into
organisational knowledge. The SECI model distinguishes four knowledge dimensions –
socialization, externalization, combination, and internalization – which together form the
acronym "SECI". The SECI model was originally developed by Ikujiro Nonaka in 1990[ and later
further refined by Hirotaka Takeuchi
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CONCLUSION
From the above mention assignment it has been concluded that, there is requirement of
proper knowledge when an individual or organisation is doing something innovative. If any wok
done without gaining knowledge than it may result in failure also this is the main reason behind
understanding each and every aspect the new thing with organisation is coming in the market
area. There are two models given by the Japanese business experts out of which learning by
doing is best for the electronic industry because they do lots of innovation. Employees get more
and more knowledge by doing their daily activities this is the main reason that learning by doing
is the best model for innovation.
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REFRENCES
Books and Journal
Akintoye, A., Goulding, J. and Zawdie, G. eds., 2012. Construction innovation and process
improvement. John Wiley & Sons.
Andreeva, T. and Kianto, A., 2012. Does knowledge management really matter? Linking
knowledge management practices, competitiveness and economic performance. Journal
of knowledge management. 16(4), pp.617-636.
Chua, A. Y. and Banerjee, S., 2013. Customer knowledge management via social media: the case
of Starbucks. Journal of Knowledge Management. 17(2). pp.237-249.
Dalkir, K., 2013. Knowledge management in theory and practice. Routledge.
Hislop, D., Bosua, R. and Helms, R., 2018. Knowledge management in organizations: A critical
introduction. Oxford University Press.
Martín-de Castro, G., 2015. Knowledge management and innovation in knowledge-based and
high-tech industrial markets: The role of openness and absorptive capacity. Industrial
Marketing Management. 47. pp.143-146.
Noruzy, A. and et.al., 2013. Relations between transformational leadership, organizational
learning, knowledge management, organizational innovation, and organizational
performance: an empirical investigation of manufacturing firms. The International
Journal of Advanced Manufacturing Technology. 64(5-8), pp.1073-1085.
Obeidat, B.Y. And et.al., 2016. The impact of knowledge management on innovation: An
empirical study on Jordanian consultancy firms. Management Research Review. 39(10),
pp.1214-1238.
Von Krogh, G., 2012. How does social software change knowledge management? Toward a
strategic research agenda. The Journal of Strategic Information Systems. 21(2), pp.154-
164.
Wang, Z. and Wang, N., 2012. Knowledge sharing, innovation and firm performance. Expert
systems with applications. 39(10), pp.8899-8908.
Wiig, K., 2012. People-focused knowledge management. Routledge.
Online
The SECI Model and Knowledge Conversion, 2018.[Online].Available
through<http://www.knowledge-management-tools.net/knowledge-conversion.html>
Nonaka and Takeuchi knowledge model, 2018.[Online].Available
through<https://www.researchgate.net/figure/Nonaka-Takeuchi-KM-model-SOURCE-Nonaka-I-
Takeuchi-H-The-knowledge-creating_fig1_256298137>
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