Examining the trans-nationality and applicability ofNonaka’s theory in the ‘actual’ context of the WestADACHI Yoshimichi
Abstract
This paper aims to examine the trans-nationality and applicability of Nonaka’s theory; his SECI modeland five organizational conditions in particular, to the ‘actual’ context of Knowledge Management (KM) in theWest, using an existing empirical case study, conducted by UK researchers. Whilst the development of KM as aconcept in the West has been examined in relation to Nonaka’s SECI model, five types of knowledge have been
identified and incorporated into the integrated framework of the TEAM linguistic framework and Nonaka’s SECImodel. However, the ‘actual’ applicability of Nonaka’s theory in the West has not yet been examined. Therefore,
this paper shifts the focus towards the ‘practices of KM’ in the West. This has been examined in terms of theintegrated framework presented in the previous issue by the author.
The examination of Universal Consultancy supported the trans-nationality and applicability of Nonaka’s
SECI model to the West context by identifying three out of four modes of knowledge conversion and four out offive of the conditions for organizational knowledge creation in Nonaka’s terms.
Key words: Knowledge Management, Nonaka’s SECI model, Case Study

1. Introduction

This will be examined in terms of the integrated

This paper aims to examine the trans-nationality
and applicability of Nonaka’s theory; his SECI model

framework, presented in the previous issue by theauthor.3

and five organizational conditions in particular, to the‘actual’ context of Knowledge Management (KM)
in the West, using an existing empirical case study,

2. Examining Universal consultancy in terms ofNonaka’s SECI model

conducted by UK researchers. Whilst the development

Universal consultancy as a knowledge-creatingof KM as a concept in the West has been examinedcompany

1

in relation to Nonaka’s SECI model , five types ofAlthough a relatively small number of case studies

knowledge have been identified and incorporated intothat demonstrate a ‘knowledge-creating company’the integrated framework of the TEAM linguistic

in the West have been conducted, one that does is2framework and Nonaka’s SECI model. However, thethe research of a Knowledge Intensive Firm (KIF)‘actual’ applicability of Nonaka’s theory in the Westin the UK, referred to as Universal Consultancy,4

has not yet been examined. Therefore, this paper shifts

by Robertson et al. (2000) and Robertson & Swanthe focus towards the ‘practice of KM’ in the West

(2003). Universal Consultancy was founded in 1986

in particular. In other words, it examines the trans-and is based in the south east of England in the UK.

nationality and applicability of Nonaka’s theory in theRobertson et al. (2000) states Universal Consultancy

West, using an existing empirical case study; namely,‘develops completely new ideas (inventions), which

Universal Consultancy, conducted by UK researchers.

it markets to clients as Intellectual Property Rights

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 PrefecturalUniversity− 105 −山梨国際研究山梨県立大学国際政策学部紀要

No. 9（2014）(IPR), and it also develops innovative solutions tosuggest some limitations or disadvantages of IT in theorganizational problems using existing concepts,

processes of creating knowledge and the importanceideas and technologies in innovative ways’. In thisof exchange and sharing of (tacit) knowledge throughsense Universal Consultancy can be regarded as ansocial interaction.

archetype of a knowledge-creating company.

Universal Consultancy and Nonaka’s SECI model
Knowledge creation in Universal Consultancy

In Figure1 the practice of knowledge creation

The working style of Universal Consultancy is

identified in Universal Consultancy is applied tocharacterized by inter-disciplinary team working, in

the integrated framework of the TEAM linguistic

which members’ backgrounds of disciplines are varied

framework and Nonaka’s SECI model.

and teams are organized project by project (RobertsonThe working style of inter-disciplinary teams iset al., 2000). At the start of any given project inquite similar to Nonaka’s notions of a cross-functional

Universal Consultancy, members of the inter-team (or a micro-community of knowledge), which isdisciplinary team spend whole days together, ‘brain-

mainly related to the socialization mode of knowledge

storming’ and recording and putting forward relevant

conversion and ‘brain-storming’ is a typical process5

ideas (Robertson et al., 2000, p.6).

of knowledge creation. This can be referred to asa mixture of the socialization and externalization

Use of IT in Universal Consultancy

modes of knowledge conversion in Nonaka’s SECI

Robertson et al. (2000) provides an interestingmodel. Moreover, the use of Lotus Notes falls into

insight into the relationship between IT and knowledge

the combination mode of knowledge conversion. In

creation in Universal Consultancy. According to

the analysis of Robertson et al., there is no mention

Robertson et al. (2000), the opportunity to introduceof the internalization mode of knowledge conversion

Lotus Notes (a widely used application for supporting

and the absence of this can be explained by thecollaboration) in their projects came from theevidence that 116 out of 137 consultants at Universal

necessity to collaborate with scientists outside ofConsultancy have the degree of Ph.D. In other words,

the organization, that is, in the USA and Japan andnecessary knowledge has already been internalized

was done in order to overcome temporal and spatialby each consultant. It can also be said that knowledge

obstacles. Robertson et al. (2000) explain that prioris internalized through ‘learning by doing’. Whento this, team members usually shared and createdtaking this into consideration, the examination ofknowledge through face-to-face communication,

the Universal Consultancy case study confirms therather than by IT. However, despite the successful use

applicability of Nonaka’s SECI model to a KIF in theof Lotus Notes on two major projects in collaboration

West context.

with ‘associates’ in the USA and Japan, the exchangeof knowledge returned to its original format, that is,

3. Examining Universal Consultancy in terms offace-to-face communication, while members of a teamNonaka’s five organizational conditions

were in the UK and the usage of Notes decreased

This sub-section examines the applicability(Robertson et al., 2000). In other words, while teamof Nonaka’s theory in the West context by finding

members are in the UK, there are no or few obstacles

the presence and absence of the ‘five enablingin temporal and spatial terms, and they choose verbal

organizational conditions’ in Universal Consultancy

exchanges of knowledge with physical intimacy

which Nonaka assumes will facilitate the processes ofas the medium for knowledge creation. This may

organizational knowledge creation.6− 106 −Examining the trans-nationality and applicability of Nonaka’s theory in the ‘actual’ context of the West

Explicitness(Externality)
Combination modeExternalization mode

(Systemic knowledge) (Conceptual knowledge)
 Using Lotus Notes (to collaborate outsideof the organization)

Identity(Space)Internalization mode(Operational knowledge)Brain-storming

Socialization mode
(Sympathized knowledge)

Doctorates (116 of 137)
Difference(Time)

Inter-disciplinary
team working
Brain-storming(based on face-toface communication)

Implicitness(Internality)
Figure1: Knowledge activities in Universal Consultancy within Nonaka’s SECI model
framework (Source: Author).

Organizational Intention

motivation have been developed by fostering a sense

Nonaka assumes that organizational intention (anof individual responsibility through personal revenue

organization’s aspirations) as a form of a corporate

targets (PRTs), on which Nonaka places less emphasis.

strategy (or knowledge vision) facilitates the processof knowledge creation in an organization, leading

Autonomy

to employee commitment and providing the mostNonaka assumes that an organization that allows

important criteria for judging a piece of knowledge.

individual autonomy maintains greater flexibility in

In Universal Consultancy, there do not appear toacquiring, interpreting, and relating information andbe strategies in place to achieve this, as Nonaka

although Nonaka does not emphasize it, the existing

himself assumed there would be. The method usedliterature on KIFs in the West claims that having well-by Universal Consultancy to stimulate employee

educated, qualified employees who form the bulk

motivation and commitment is the establishment of aof the workforce is the precondition which allows

performance management system, known as divisional

individuals to act autonomously (see, e.g. Starbuck,revenue targets (DRTs) and personal revenue targets

1992; Robertson et al., 2000; Alvesson & Kärreman,(PRTs). With this system up and running, consultants

2001.). This is also true in the case of Universal

are able to judge knowledge value through the projectConsultancy, where in 1998, 116 out of 137 members(Robertson & Swan, 2003). In order to fulfill theof the staff were consultants with doctorates who wererequirement of PRTs, consultants would generallyallowed (and expected) to act autonomously throughbe awarded a small number of projects at any one

an internal e-mail tender system (See condition oftime through an internal or informal tendering

requisite variety.).

system by e-mail. In short, the situation at Universal
Consultancy is unlike Nonaka’s assumptions andAs for organizational autonomy, a self-organizing,

although organizational intentions such as a strategy

cross-functional team, where there are members

or knowledge vision are vague, commitment andfrom diverse backgrounds, is the ideal condition− 107 −

山梨国際研究山梨県立大学国際政策学部紀要

No. 9（2014）

that provides organizational autonomy. At Universal

which is embedded in organizational culture,

Consultancy, as mentioned earlier, this takes the form

constrains management efficiency due to the highof a project team, which is a self-formed and self-volume of communication flow. However, this typemanaged basic unit, in which consultants work in anof overlapping knowledge is, according to Nonaka,

inter-disciplinary and collaboratory manner. In short,regarded as a knowledge enabling condition.

Universal Consultancy has a high level of individualand organizational autonomy, as Nonaka assumes it

Requisite Variety
Nonaka suggests that requisite variety is one ofwould.

conditions that advance knowledge creation within

Fluctuation and Creative Chaos

an organization. At Universal Consultancy, theUniversal Consultancy depends on project teams

organizational structure is in the form of a knowledge

and project leaders and whilst in some projects veryacquisition system, again by e-mail and, according to

few team meetings take place, in others many are

Robertson (2000), in this company there is a projectarranged (Robertson & Swan, 2003). This kind ofleader who collates relevant knowledge for the projectad-hoc approach makes for fluctuation and creative

and at the initial stages negotiates with consultantschaos in an organization, which Nonaka (Nonaka

from different disciplines through e-mail. This flat& Takeuchi, 1995) assumes will improve theinformation system, in which the different units

organizational knowledge system. Moreover, a typicalare interlinked within a network, enables personnel

project meeting at Universal Consultancy will adopt

to collect appropriate information and deal witha ‘creative abrasion’ approach to knowledge creation,complex and specialized client demands in a relatively

which emphasizes argumentative cognition, rather

ideal system that realizes requisite variety in thecooperation. This has the potential for fluctuation

organization.

and creative chaos and this has been identified in theorganizational structure at Universal Consultancy.

Nonaka has developed five organizational
conditions through which organizational members

Information Redundancy

may create and generate knowledge, most of them

Redundancy is the existence of information thathave been found in the organizational systems ofgoes beyond the immediate operational requirements

Universal Consultancy. Individual and organizationalof organizational members and this is in evidence ata u t o n o m y, f l u c t u a t i o n a n d c re a t i v e c h a o s ,Universal Consultancy, where a redundant structure(information) redundancy, and requisite variety haveexists in the form of an e-mail system. According tobeen identified as almost the same structures which

Robertson et al. (2000), regardless of how important,

Nonaka assumes. As for organizational intention,

sensitive or trivial, the majority of e-mails were sent

whilst Universal Consultancy has weak organizational

to everyone and replies also went to everyone without

intention, motivation is provided through performanceany effective classification system (Robertson et al.

management systems. These suggest the applicability

72000). Nonaka (Nonaka & Takeuchi, 1995) claims

and trans-nationality of Nonaka’s five conditions tothat for Western managers ‘redundancy may soundthe West context to a great extent.

pernicious because they tend to be preoccupied
with the idea of efficient information processing or

4. Conclusions

uncertainty reduction’. Indeed, Robertson et al. (2000)

The paper has examined the trans-nationality

consider that this internal overlapping of information,

and applicability of Nonaka’ theory in the context of− 108 −Examining the trans-nationality and applicability of Nonaka’s theory in the ‘actual’ context of the West

Table 1: Nonaka’s five organizational conditions in Universal Consultancy
Nonaka’s five conditions forknowledge creation

Universal Consultancy

Organizational intention

Low (but a performance management system)

Individual autonomy:High (based on well-educated, qualified employees)

Group autonomy:High (a cross- functional team)Fluctuation / Creative chaosHigh (a ad-hoc approach to managing a project team)Information redundancy

Exist (a redundant e-mail system)

Requisite variety

High (an e-mail system for collecting project members)

the ‘actual’ (empirical) management practice of theReferencesWest. The examination of Universal Consultancy

Alvesson, M. & Kärreman, D. (2001), ‘Odd couple:
Making sense of the curious concept of knowledge andhas identified three out of four modes of knowledge

management,’ Journal of Management Studies, 38, 7, 995-

conversion and four out of five conditions fororganizational knowledge creation in Nonaka’s terms.

1017.
Nishibe, S. (1996), Structure of Intelligence, Tokyo: Kadokawa
Haruki Corporation.

In this sense, the examination supported the transnationality and applicability of Nonaka’s SECI modelto the West context to a great extent.

Nonaka, I. (1991), ‘The knowledge-creating company,’ Harvard
Business Review, November-December, 96-104.
Nonaka, I. (1994), ‘A dynamic theory of organizational
knowledge creation,’Organization Science, 5, 1, 14-37.
Nonaka, I. & Takeuchi, H. (1995), The Knowledge CreatingCompany, Oxford: Oxford University Press.

Notes１）See the paper argued by the author (Yamanashi GlobalRobertson, M., Sorenson, C. & Swan, J. (2000), ‘Facilitating

Studies No.7)

knowledge creation with group ware: A case study of a２）See the paper argued by the author (Yamanashi GlobalStudies No.8)
３）In the previous paper (see Yamanashi Global Studies, No.6)
in addition to the examination of the relationships of various

knowledge intensive firm, Proceedings of the 33rd HawaiiInternational Conference on System Sciences.
Robertson, M. & Swan, J. (2003), ‘Control – what control? :Culture and ambiguity within a knowledge intensive firm,

concepts between Nonaka’s theory and organization studies
in the West, it also created an integrated framework fromthe TEAM structure and Nonaka’s SECI model (see p.31,’Journal of Management Studies, 40,4,831-858.
Starbuck, W. H. (1992), ‘Learning by knowledge-intensive

Figure 4-1.)
４）This research kept the organization anonymous andreferred to it only as Universal Consultancy. See
Robertson et al. (2000) and Robertson & Swan (2003) .
５）This is a similar approach to task forces for developing
new products in Japanese companies such as Mazda (RX7),Honda (City) and Canon (Mini-Copier). See Nonaka &Takeuchi (1995).
６）See Nonaka & Takeuchi(1995), p.73-p.83.
７）Therefore division managers received on average between
150 and 200 e-mails each day and other consultants only
slight fewer (Robertson et al. 2000)− 109 −

firms,’ Journal of Management Studies, 29, 6, 713-740.