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CHAPTER SIX. Knowledge Creation and Utilization: Promoting Dynamic Systems of Creative Routines

Ikujiro Nonaka and Patrick Reinmoeller

Subject Business and Management » Entrepreneurship

Key-Topics creativity

DOI: 10.1111/b.9780631235118.2002.00008.x


Creative renewal in industries, organizations, and teams is the key to strategic thinking and acting in the entrepreneurial millennium. Routines of creative renewal are simple processes that create and exploit knowledge within large organizations. In these entrepreneurial times, when new ventures and start‐ups threaten incumbents, knowledge management attempts to contribute to theory and practice of strategy. During the 1990s knowledge management focused on achieving operational excellence through explicit knowledge, closed systems for information processing and over looked the fact that knowledge resides in contexts. The problems of creating and utilizing knowledge, however, are related to the degree of embeddedness ( Granovetter, 1985 ). Explicit knowledge and best practices diffuse quickly ( Boisot, 1997 ) and personal knowledge of employees can be rapidly lost, if it is not embedded in patterns of interaction ( Teece, 2000 ). Recently researchers and practitioners have begun to emphasize dynamic relationships, interactions, and contexts ( APQC, 2000 ). Information technology can assist knowledge management but organizations must develop dynamic business systems to create and utilize knowledge effectively and efficiently ( Nonaka et al., 2001 ). Closed business systems aim at stabilizing organizational processes in order to develop routines apart from contexts, while dynamic ... log in or subscribe to read full text

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