An Examination of The Applicability of Nonaka’s Theory in
The Empirical Context of UK Urban Regeneration: A Case
Study of The Creative Town Initiative in Huddersfield（3）− Looking at the Background in the early 1980s to Creative Town
Initiative in Huddersfield −ADACHI Yoshimichi
Abstract
A series of papers aims to examine the applicability of Nonaka’s theory of organizational knowledge creation
to the empirical context of urban regeneration in the UK and the Creative Town Initiative (CTI) in Huddersfieldin particular. Before examining the application / relevance of Nonaka’s theoretical frameworks to urban
regeneration through the process of making the CTI proposal (in 1991-96), which will be discussed at the next
papers, this paper looked at the background to CTI. The activities in the early 1980s which led to CTI have been
considered. The background in the early 1980s to CTI in Huddersfield illustrated the relevance of the integrated
framework of (the TEAM linguistic framework and) Nonaka’s five-phase model in the restricted way.
Key words: Case Study, Knowledge, Huddersfield, Cultural Industries, Creative Town
Initiative (CTI)

1. Introduction

background activities of CTI in the early 1980s to

A series of papers aims to examine the applicability

CTI. The next papers will focus on the backgroundof Nonaka’s theory of organizational knowledge

activities of CTI in the late 1980s and the process ofcreation to the empirical context of urban regeneration

making the CTI proposal in 1991-96.

in the UK and the Creative Town Initiative (CTI) in
Huddersfield in particular. In so doing, methodology

Three main areas are to be considered in this paper.

was argued in Yamanashi Global Studies No.10

Firstly, the theoretical framework to apply to Nonaka’s(Adachi, 2015), and Huddersfield and CTI in

theory will be introduced in section 2, providing

particular were placed in the several contexts including

the case study’s theoretical propositions. Secondly,

demographic, historical and local political in Global

activities around the cultural sector in HuddersfieldStudies No.11(Adachi, 2016). This paper looks at thein the early 1980s will be illustrated based on

Table1: Names of knowledge spirals associated with CTI (Source: Author)
Name of the knowledge spirals

PeriodThe first knowledge spiral of cultural industries

Early 1980s

The second knowledge spiral of cultural industries

Late 1980s

The first knowledge spiral of CTI(The CTI proposal making)From 1991 to 1997

The second knowledge spiral of CTI

From 1997 to 2000

山梨県立大学 国際政策学部 総合政策学科
Department of Policy Management, Faculty of Glocal Policy Management and Communications, Yamanashi Prefectural
University− 15 −

山梨国際研究山梨県立大学国際政策学部紀要

No. 12（2017）

Nonaka’s theoretical framework in section 3. Finally,

provided the case study’s theoretical propositions,conclusions will be drawn on the basis of evaluating

which incorporates the four modes of knowledge

the applicability of Nonaka’s theory to urban

conversion, including the socialization, externalization,

regeneration in the UK in section 4.

combination and internalization modes, which are themain concepts of Nonaka’s theory. (see Figure 1). This

2. Theoretical framework to apply to Nonaka’s
theorypaper follows the theoretical propositions to examine
the applicability of Nonaka’s theory of organizational

The main aim of Nonaka’s theory of organizational

knowledge creation to the empirical context of urban

knowledge creation is to provide an understanding toregeneration in the UK and CTI in Huddersfield.

how an organization creates the new ideas which may
make the organization competitive and sustainable,

The five conditions including organizational intention,

regarding organizational activities as knowledge

autonomy, fluctuation / creative chaos, information

activities. In other words, Nonaka sheds light onredundancy and requisite variety, which Nonaka

the mechanisms and processes through which ‘new’

assumes facilitate organizational knowledge creation2）,

knowledge is created in an organization with bothwere also regarded as the theoretical prepositions to besolid theoretical foundations and practical models.

followed during data collection for the case study.

In order to examine the applicability of Nonaka’s

3. The first knowledge spiral of cultural

theory of organizational knowledge creation to theindustries: Illustrating Nonaka’s theoreticalempirical context of urban regeneration in the UK

framework in activities around the cultural

and CTI in Huddersfield in particular, as argued in

sector in the early 1980s

１）

the previous paper , the integrated framework of

3.1 Five conditions for knowledge creation in the

the TEAM linguistic structure and Nonaka’s five-

first knowledge spiral of cultural industries

phase model of organizational knowledge creation

Nonaka assumes that fluctuation and (creative) chaos

Explicitness(Externality)
Phase3:
Justifying
concepts

Phase4: Building an archetype

Phase2: Creating concepts

Combination mode
(Systemic knowledge)

Externalization mode
(Conceptual knowledge)

Identity(Space)Difference(Time)
Phase5: Cross-leveling of knowledge

Phase1: Sharing tacit knowledge

Internalization mode
(Operational knowledge)

Socialization mode
(Sympathized knowledge)

Implicitness(Internality)

Figure1: Integrated framework of the TEAM linguistic structure and Nonaka’s five-phasemodel (Source: Author)− 16 −

An Examination of The Applicability of Nonaka’s Theory in The Empirical Context of UK Urban Regeneration: A Case Study of The Creative Town Initiative in Huddersfield (3)Table 2: Changes in employment in Huddersfield (Source: ONS)
ServiceIndustries

Unclassified
by Industry

Primary
Production

Manufacture

Construction

1975

1,295

45,423

2,999

37,5162

87,235

1976

1,315

42,9093,550

39,0283

86,805

1977

1,268

43,427

3,668

39,144

3

87,510

1978

1,255

42,065

3,264

39,143

5

85,732

1981

1,389

30,0572,884

37,463369

72,162

Nom.

94-15,366

-115

-53

367

-15,073

%

7.3

-33.8

-3.8

-0.1

18350.0-17.3

Change(19751981)

Total

generated when a firm faces a real crisis facilitatesin Huddersfield. In his meeting with the author, Sean

organizational knowledge creation (see Nonaka &Leonard, the then Economic Development Officer in

Takeuchi, 1995). Similarly, Peter Hall, a town planner

KMC, commented:

speaking at the Creative City Conference (Report on
the Creative City Conference, 2000) in Huddersfield,

In 1981, a “multicultural mob” of black and whitestated that ‘historically, drastic problems such as

youths occurred, storming through the centre ofcholera, need for fresh water and need for travel

Huddersfield town centre and the urban riot drew

systems etc. led to urban creativity’. Phil Wood,attention back to social conditions.4）

the then manager of CTI, also stated at the same
conference that ‘historically, the triggers to creativity

This kind of racial issue extended into the schools.

have been crises, leading to municipal, civil andWood explained this as follows:

technological creativity’. The crisis in Huddersfieldin the early 1980s took the form of the loss of

There were problems in schools in Kirklees

employment, in manufacturing in particular (see Table 2).

because white people [parents] did not want theirchildren to be educated with Asian children and

Table 2 clearly shows the considerable decline in

the Council handled this very badly. It became aemployment in manufacturing in Huddersfield. In annational scandal.5）

interview with the author, Phil Wood recalled:
The above serious crises (problems), mainly concerned
Around 1982, unemployment was regarded as awith unemployment around the manufacturing sector

very serious ‘crisis’ in Huddersfield and the whole

and racial issues, naturally created fluctuating and

UK. The feeling of almost panic [existed] in the

chaotic environments in the Kirklees Metropolitan

local authority [Kirklees Metropolitan Council]

Council (KMC) (one of Nonaka’s enabling conditions

because they could not understand what wasfor knowledge creation) (see section 2 and also Nonaka

happening. Thousands and thousands of people& Takeuchi, 1995). In 1982, KMC created a new post

would be made unemployed in the town. Peopleof ‘Community Worker for the Unemployed’ in thewere worried about its consequences, [particularly]

Libraries and Arts Department (then Cultural Services

3）social consequences of this happening.

Department), with a remit to try to understand thesefluctuating and chaotic environments.6）In other words,

In addition to this, at the time there was a racial crisis

the environment provided KMC with an opportunity to− 17 −

山梨国際研究山梨県立大学国際政策学部紀要

No. 12（2017）reconsider its basis and mindsets for addressing urban

explicit information, were not considered the way toproblems in Huddersfield and facilitated ‘subjective

understand and solve the situations of the unemployed.

commitment’ (Nonaka & Takeuchi, 1995) to local
communities through the creation of the new post. The

Strictly speaking, Wood himself individuallycreation of the new post can be considered as a starting

accumulated,8）rather than collectively (institutionally)

point of knowledge-creating processes leading to CTI

shared (which Nonaka emphases in his theory),in Huddersfield. This paper considers it to be the start

local tacit knowledge of the local situations on theof the first ‘knowledge spiral’, referred to here as theunemployed. Such local tacit knowledge was only

first knowledge spiral of cultural industries.

acquired at Wood’s discretion, while the unemployed
were the only source of (tacit) knowledge of the real

3.2 Phase 1: Accumulating and sharing tacitsituations they faced (and the feelings they held).

knowledge: The socialization modeMoreover, it can be argued that although Nonaka

In 1982 Phil Wood, who had become the central figure

tends to assume that the technical dimension of tacit

in making the CTI proposal, was employed in the newknowledge lies ontologically at the individual level,

post of ‘Community Worker for the Unemployed’. In

while the cognitive dimension is at the collective level

an interview with the author, he recalled that:(see Nonaka & Takeuchi, 1995), this classification
cannot be applied to the case because Wood again

I was employed by the Council to meet with‘individually’ accumulated the tacit feelings of

unemployed people, to try to understand how

the unemployed people he met, which obviously

they were coping with unemployment. …I was notcorresponds to the ‘cognitive’ rather than technicalgiven a plan. I [instead] made a job from nothing.

dimension of tacit knowledge.

Simply going and finding people and talking tothem, asking what they wanted to do with all their7）

spare time that they have.

Through his individual ‘learning by walking
around’, Wood identified another group of people.
Explaining this during an interview with the author, heThis account illustrates Phase 1 of sharing tacitcommented:

knowledge of Nonaka’s five-phase model oforganizational knowledge creation (or the socialization

I realized that a quite few people were doing verymode of knowledge conversion in his SECI model)interesting things. They were starting recording

in the first knowledge spiral of cultural industries

music, making films, writing plays, making theatre(see Figure 1). It is because Wood, who was given

and making music. …[I thought] Maybe they are(individual) autonomy at that time, directly interacted

going to create their own jobs by doing this. At

with local (unemployed) people and tried to understandthe time it was possible for ordinary people toand share their feelings and perspectives (and in sohave access to computer technology, cheap video

doing acquire tacit knowledge), which was context-

cameras and sound recording equipment.9）

specific and different from previous situations. In
other words, the traditional scientific methods, which

One of people who interested Wood was Brian Cross,

Systems Theories and Rational Theories of Planningthe director of Artimedia, a media-focused private

usually use, such as following particular work

company. He explained his own work at that time asprocedures, analysing (or manipulating) information

follows:(explicit knowledge) and producing policies based on− 18 −

An Examination of The Applicability of Nonaka’s Theory in The Empirical Context of UK Urban Regeneration: A Case Study of The Creative Town Initiative in Huddersfield (3)At that time, I worked, for example, with theat a deeper level. Although at that time these kinds

Caribbean community coming to this area in theof cultural activities were considered ‘eccentric’ or

1950s. I organised carnivals and made music with‘strange’ in an industrial town such as Huddersfield,

them. We also completed major projects using

through face-to-face communications, Wood had

computers. We believed cultures were economic

increased his ‘attraction’ to such ‘cultural people’ withresources. We also provided training, consultancy

the sense of commitment and gained a belief (tacitand information for them.

knowledge) that cultural activities associated withnew technologies and arts could produce new jobs inAt that time there were people in Huddersfield who

Huddersfield.

were artists, video makers, fledgling businesses
and training providers and the Libraries and Arts

3.3 Phase 2: Creating concepts: The externalisation

Department in KMC, and Phil Wood in particular,

mode

paid attention to these people. Following the above

Although Wood thought that he would like to help thedescription, this paper defines ‘cultural people’ as‘cultural people’, he at first did not know how to dopeople who use culture (including music, films,

so and thus examined activities in other cities whereplays, drama and new technologies) as tools of local

cultural people were supported. Elaborating on this,economic and social development. Wood also added:

Wood explained:

That [job-creation using cultures and technologies]

I started to realize that other people in the towns

was regarded as crazy 20 years ago because

and cities were also thinking the same way. They

Huddersfield is an industrial town. People makecalled that kind of activity ‘cultural industries’. It

things in factories [here]. … I was attracted byseemed such radical thinking. It was an inspiring

this group of people. I thought that I’d like toidea. Much of the most advanced work [on thisparticularly work with them and that this would

aspect] was taking place in London under the

10）

Greater London Council.12）

become a new form of economic activity.

Wood’s account was also supported by Toby Hyam,

Using Nonaka’s terms, by looking at and visiting

the director of the Media Centre. In an interview withthe places where cultural activities associated withthe author, he commented:

technology were conducted, Wood expanded (tacit)
knowledge on cultural activities. He then found the

The initial approach of the Council to culture [asconcept of ‘cultural industries’ in London, which

a tool of economic development] was vague. Givenadequately represented the connection among cultures,that there were so few models in the UK at thattechnology and employment (industries) and whichtime, it is not hard to understand why this was. The

also clearly expressed Wood’s ambitions obtained andlegal constitution and the early Kirklees Council

fostered (in Phase 1). The founding of the concept

report illustrate that video producers, writers,of ‘cultural industries’ illustrates Phase 2 of creating

publishers, artists and arts organizations were theconcepts (the externalisation mode) in Nonaka’s five-11）

key target market of the Council.

phase model (see Figure 2). However, it should be
noted that, unlike Nonaka’s premise, the concept ofWood’s above account illustrates that Phase 1 ofcultural industries was not externalised from Phil’s

accumulating (sharing) tacit knowledge exists, but‘brain’, but was ‘founded’ through ‘learning by− 19 −

山梨国際研究山梨県立大学国際政策学部紀要

No. 12（2017）

walking around’ London.

3.4 Phase 5: Cross-levelling of knowledge: The

The finding of the concept of ‘cultural industries’internalization mode

affected the direction of ‘cultural people’ inIn the early 1980s, the first knowledge spiral of

Huddersfield. Brain Cross described it as follows:

cultural industries generated around the Libraries andArts Department in KMC ended the creation (finding)This time was the emergence of the ‘culturalof the conceptual knowledge of ‘cultural industries’. In

industries’ as a concept and if you describe it,other words, using Nonaka’s term, the concept could

it was ‘a window of change’. I often think of the

not reach the phase of its justification (Phase 3) andanalogy that we could hoist our own sail and thena policy to which the concept was applied was not

sail the boat. The concept of the cultural industries

formulated (which is related to Phase 4 of building

was our sail and we could move together with thisan archetype). But this concept was internalised intochange. It was significant because we thought we,Phil Wood and cross-levelled to Cultural Industries ina small group, were able to come together, even

Kirklees (CIK), a voluntary-based cross-agency teamthough we were economically at a very low level(which corresponds to Phase 5 of cross-levelling ofof activity. I thought we could become somethingknowledge) (see Figure 2); the development will bebigger, could be larger, in some part. And I thought

further explained and illustrated in the next paper.

13）

this idea came together at that moment.

Explicitness(Externality)
Phase3:
Justifying
concept

Phase4: Building an archetype

Combination mode
(Systemic knowledge)

Phase2: Creating concepts

Externalization mode
(Conceptual knowledge)
 Found the concept of‘Cultural Industries’

Identity(Space)Difference(Time)
Phase5: Cross-levelling ofPhase1: Sharing (accumulating)knowledge

tacit knowledge

Internalization mode
(Operational knowledge)

Socialization mode
(Sympathized knowledge) A concept of ‘cultural industries’  Phil Wood individually
was internalized into Wood
accumulated local (tacit) The concept was cross-levelledknowledge on the unemployed
to Cultural Industries in He had a belief that cultural
Kirklees (CIK)
activities could contribute to job
creation in Huddersfield He visited London to expand(tacit) knowledge on culturalactivities

Implicitness(Internality)

Figure 2: The first knowledge spiral of cultural industries within Nonaka’s five-phasemodel framework (Source: Author)− 20 −

An Examination of The Applicability of Nonaka’s Theory in The Empirical Context of UK Urban Regeneration: A Case Study of The Creative Town Initiative in Huddersfield (3)4. Conclusions

Notes

This paper has attempted to answer the question

１）See Adachi, Yamanashi Global Studies No.10

of whether Nonaka’s theory is applicable to the２）See Nonaka & Takeuchi (1995)(empirical) context of UK urban regeneration, looking
at the background in early 1980s to CTI. The activitiesth３）Interviewed on October 28 2003

４）Interviewed on October 31 2003stth５）Interviewed on October 28 2003

in the ‘early 1980s’ which led to CTI was regarded asth６）Interviewed on October 28 2003

the first knowledge spiral of cultural industries in thisth７）Interviewed on October 28 2003

８）The term ‘accumulation’ is one of the linguistic meaning

paper.

functions in the TEAM linguistic framework, which is thesame quadrant with the socialization mode of knowledge

The story of the previous activities associated with CTI

conversion in Nonaka’s SECI model (see Adachi, 2011).

in the early 1980s has supported Nonaka’s theoreticalth９）Interviewed on October 28 2003

frameworks in the restricted way. Firstly and overall,th10）Interviewed on October 28 2003

the only three of five phases in Nonaka’s theory havebeen found in the activities in the early 1980s which
led to CTI, which include Sharing (accumulating)11）Interviewed on October 31 2003
stth12）Interviewed on October 28 2003th13）Interviewed on October 29 2003

tacit knowledge (phase 1), creating concepts (phase

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山梨国際研究山梨県立大学国際政策学部紀要

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