Ikujiro Nonaka and Hirotaka Takeuchi: The Knowledge Creating Company : How Japanese Companies Create the Dynamics of Innovation, Oxford University Press, New York

The authors examine how Japanese firms go about creating the new knowledge which helps them produce successful products and technologies. The book claims that there are two types of knowledge: explicit knowledge, which is contained in manuals and procedures, and tacit knowledge, which is learned by experience and communicated indirectly through metaphor and analogy. American managers focus on the former. The Japanese concentrate on the latter. They key to success of the Japanese is their ability to convert tacit into explicit knowledge. The theory is illustrated through case studies involving firms such as Honda, Canon, Matsushita, NEC and Nissan. Order this book from Amazon.com

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