The Resource-Based View (RBV) of competitive advantage provides a theoretical framework from the field of strategic management for assessing the competitive advantages of family firms. The RBV isolates idiosyncratic resources that are complex, intangible, and dynamic within a particular firm. The bundle of resources that are distinctive to a firm as a result of family involvement are identified as the “familiness” of the firm. This approach provides a research and practice method for assessing the specific behavioral and social phenomena within a firm that provide an advantage. Using a familiness model for assessing competitive advantage overcomes many of the problems associated with the generic claim that family companies have an advantage over nonfamily companies. It also provides a unified systems perspective of family firm performance.

A Resource-Based Framework for Assessing the Strategic Advantages of Family Firms

Nonaka's paper [1994. A dynamic theory of organizational knowledge creation. Organ. Sci.5(1) 14--37] contributed to the concepts of “tacit knowledge” and “knowledge conversion” in organization science. We present work that shaped the development of organizational knowledge creation theory and identify two premises upon which more than 15 years of extensive academic work has been conducted: (1) tacit and explicit knowledge can be conceptually distinguished along a continuum; (2) knowledge conversion explains, theoretically and empirically, the interaction between tacit and explicit knowledge. Recently, scholars have raised several issues regarding the understanding of tacit knowledge as well as the interaction between tacit and explicit knowledge in the theory. The purpose of this article is to introduce and comment on the debate about organizational knowledge creation theory. We aim to help scholars make sense of this debate by synthesizing six fundamental questions on organizational knowledge creation theory. Next, we seek to elaborate and advance the theory by responding to questions and incorporating new research. Finally, we discuss implications of our endeavor for organization science.

Perspective---Tacit Knowledge and Knowledge Conversion: Controversy and Advancement in Organizational Knowledge Creation Theory

Organizational knowledge creation is the process of making available and amplifying knowledge created by individuals as well as crystallizing and connecting it to an organization's knowledge system. In other words, what individuals come to know in their (work-)life benefits their colleagues and, eventually, the larger organization. The theory explaining this process — the organizational knowledge creation theory — has developed rapidly in academia and been broadly diffused in management practice over the last 15 years. This article reviews the theory's central elements and identifies the evolving paths taken by academic work that uses the theory as a point of departure. The article furthermore proposes areas in which future research can advance the theory of organizational knowledge creation.

Organizational Knowledge Creation Theory: Evolutionary Paths and Future Advances:

The aim of this paper is to outline the importance of tacit knowledge in the innovation process and to highlight the way that geographical location not only influences the relationship between knowledge and innovative activity, but also affects the way that such interaction influences the geography of innovation and economic activity. After a discussion about the nature of knowledge, the paper explores the relationship that exists between knowledge and geography. The paper then reviews, using as an analytical lens, the growing body of literature on knowledge spillovers which affirm the importance of geography. However, the discussion then seeks to outline some crucial gaps that remain in our conceptualisation of the knowledge spillover and transfer process. The paper then highlights the neglected role of knowledge demand and consumption in a spatial context, before concluding with a review of areas for future research.

Tacit Knowledge, Innovation and Economic Geography

Entrepreneurial orientation and firm performance: The role of knowledge creation process

This paper proposes a theory of organizational knowledge creation, which is defined as the process that organizationally amplifies the knowledge created by individuals and crystallizes it as part of the knowledge system of an organization. The process is a never–ending spiral of tacit and explicit knowledge through four modes of knowledge conversion: i.e., socialization (from tacit to tacit), externalization (from tacit to explicit), combination (from explicit to explicit), and internalization (from explicit to tacit). Each of the four modes of knowledge conversion is explained, using actual vignettes. Finally, a few implications are argued.

H Takeuchi

Papers

A theory of organizational knowledge creation