customers. In addition, this cluster includes developing an environment of collab- oration between internal departments and exploring assumptions and values behind the reward systems;
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● structures implies the need for roles and careers to be flexibly orientated to allow for experimentation, growth and adaptation;
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● looking out includes regularly scanning and reviewing the external environment and developing joint learning with competitors and other stakeholders for ‘win:win’
learning;
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● learning opportunities includes a climate of continuous improvement where mistakes are allowed and encouraged together with self-development opportunities for all.
The original model above can appear somewhat mechanical and lifeless. In order to convey a greater dynamic to this model, Pedler, Burgoyne and Boydell (1991) went fur- ther to propose an energy-flow model based on four components: ideas and actions at the individual level and policy and operations at the collective level. All of these four components are connected through four figures of eight to represent double-loop learn- ing. There is little elaboration of the potential drivers and retarders of this energy flow in organisations or recommendations if the energy becomes stuck in organisations.
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The knowledge-creating company uses four processes for creating knowledge. However, it is only when one form of knowledge is transformed into another, such as tacit to explicit or vice versa, that new knowledge is created. The four processes as shown in Figure 6.4 are as follows:
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● Socialisation allows tacit knowledge from one person to be passed to the other. For example, this is traditionally how knowledge is passed in a master–apprentice rela- tionship. Such knowledge does not become explicit and, hence, cannot be leveraged and used by the whole organisation.
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● Combination is about combining discrete pieces of explicit knowledge held by individuals. Such explicit to explicit knowledge transfer does not expand the organ- isation’s knowledge base.
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● Articulation is the conversion of tacit knowledge to explicit knowledge. Here new knowledge is formed and made explicit in a form that can be shared around the organisation.
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● Internalisation allows individuals to broaden their knowledge base and create knowl- edge by converting explicit knowledge to tacit knowledge.
New knowledge
EXPLICIT KNOWLEDGE TACIT
KNOWLEDGE
New
knowledge EXPLICIT KNOWLEDGE TACIT
KNOWLEDGE
Articulation
Internalisation
Combination Socialisation
ANALOGY MODEL
FIGURATIVE LANGUAGE
Metaphors Slogans Symbols IMAGINATION
LOGICAL THINKING
Figure 6.4 The knowledge-creating company (Nonaka 1991)
Critical thinking and reflection
Imagine that you have been asked to manage the development of a new product or service in your organisation. Describe how you could use metaphors, slogans, symbols and other figurative forms of language to fire the imagination of your team. What
interventions could you make if your initial approaches were not well received? Can you think of any alternative approaches that could spark the creative spirit of your team?
In all the companies studied, articulation was a primary process for successful inno- vation. This involved using people’s imagination, playing with abstract ideas and moving them towards a model of logical thinking that could be exploited by the organ- isation. To get the tacit knowledge and ideas moving in a group, there was considerable recourse to figurative language. This allowed hunches, intuitions and insights in the group to surface. For the development of a new car, Honda used the slogan ‘Theory of Automobile Evolution’ with its design team. Such creative tension allowed the design team to consider a car as a living organism and explore how it would evolve.
Metaphors were also used to express the inexpressible, even though they might have multiple meanings and appear contradictory. The tension in meanings was seen as a valuable resource in the creative process. Once the knowledge creation process was triggered through figurative language and the use of imagination, there were two addi- tional steps to get those ideas into a workable solution. The first was the use of analogy to reconcile differences and make clear distinctions between ideas. The second was to create a model of the ideas to give them a logical coherency.
Nonaka (1991) sees the continual challenge of knowledge-creating companies as re- examining what they take for granted. In terms of organisational design, he promotes a ‘redundant organisation’ to encourage knowledge sharing and dissemination. By redundancy, he means the conscious overlapping of company information, business activities and responsibilities. This can be achieved by individuals and groups overlap- ping information and responsibilities to allow greater dialogue and communication to occur. Another approach is to promote job rotation so that employees can see the business from a wide range of perspectives. In addition, internal competition between groups on the same project is encouraged so that the merits and shortcomings of differ- ent approaches and perspectives are aired and the most effective solution is chosen.
Nonaka and Takeuchi (1995) have received criticism for their theory from a number of quarters. Jorna’s (1998) critique focused on the use of past research and claimed that Nonaka had overlooked learning theory, misread organisational theorists and had failed to engage in philosophical debates over knowledge. Instead, knowledge was defined as a manager’s belief and their authority became central when deciding whether new knowledge was created. Bereiter (2002) argued that Nonaka’s model failed to explain how new ideas or understandings were created in organisations and how they could be applied to other contexts.
Gourlay (2006) provides alternative explanations of what happened in the four pro- cesses. In ‘socialisation’, he suggests that there was a misattribution of reasons for ‘tasty bread’ which could have been due to a lengthy development process. No evidence is pro- vided such as cognitive mapping to show that customer ideas influenced manager ideas.
Nonaka claims that ‘externalisation’ proceeds from the use of metaphor and analogy but this hypothesis remains untested. In ‘combination’, Nonaka uses MBA education as a good example of moving explicit to explicit knowledge. Gourlay (2006) argues that MBA education is more than the transfer of explicit knowledge and includes the development of tacit knowledge and skills through case studies and group work. For ‘internalisation’, Nonaka claims that reading promotes the conversion of explicit to tacit knowledge even though there is no body of research to support this claim.
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