Title: A study of the effect of Knowledge Creating Capabilities on corporate performance

Authors: Christian G. Riera, Dai Senoo, Junichi IIjima

Addresses: Tokyo Institute of Technology, 2-7-1 Shiomi, Shiomi Ekimae Plaza II # 510, Koto-ku, Tokyo, 135-0052, Japan. ' Graduate School of Decision Science and Technology, Tokyo Institute of Technology, 2-12-1 O-okayama, Meguro-ku, Tokyo 152-8552, Japan. ' Graduate School of Decision Science and Technology, Tokyo Institute of Technology, 2-12-1 O-okayama, Meguro-ku, Tokyo 152-8552, Japan

Abstract: In response to the concern regarding the evaluation of Knowledge Management (KM) initiatives, we introduce the concept of |Knowledge Creating Capabilities|. This concept refers to the balance of the four knowledge creation modes proposed in the SECI Model by Nonaka and Takeuchi (1995). The relationship of this concept with corporate financial performance is explored using two financial indicators. This framework is tested on SME from Japanese manufacturing sector. The empirical evidence shows the positive association of knowledge creation capabilities with financial performance. We found that higher levels of financial performance are reached when knowledge creating modes are balanced.

Keywords: KCC; knowledge creating capabilities; corporate performance; SECI bottleneck; balanced SECI; knowledge creation; knowledge management; KM initiatives; financial performance; Japan; manufacturing SMEs; small and medium-sized enterprises.

DOI: 10.1504/IJKMS.2009.023485

International Journal of Knowledge Management Studies, 2009 Vol.3 No.1/2, pp.116 - 133

Published online: 24 Feb 2009 *

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