Managing knowledge in the era of globalization

“The Knowledge-Creating Company” published in 1995 by Nonaka and Takeuchi is now a work of reference in the knowledge management field. In this book, the authors specifically address how the aptitude for managing interactions between two forms of knowledge – tacit and explicit –enables some Japanese companies to innovate more effectively. They demonstrate the importance of creating an environment that facilitates the circulation and exchange of ideas across groups and individuals.

Rising corporate globalization often raises questions concerning the best way to manage such exchanges of knowledge. How to get dozens or even hundreds of facilities scattered across the globe to share knowledge? Can tacit knowledge be effectively transmitted electronically?

With their colleagues at the University of Hitotsubashi, Nonaka and Takeuchi review these important issues. We felt the following messages to be of particular interest:

– Beware of reflexes inherited from the Cartesian tradition. It is very limiting to think of knowledge exclusively in an intellectual, conceptual form.

– Select geographical locations carefully. Physical proximity has a powerful impact on the creation of knowledge.

– Develop the interpersonal communication skills of employees.

– Provide a solid structure for the sharing of knowledge.