Creating and managing a high-performance knowledge-sharing network: the Toyota case Export

@article{14, abstract = {Previous research suggests that knowledge diffusion occurs more quickly within Toyotarsquos production network than in competing automaker networks. In this paper we examine the lsquoblack boxrsquo of knowledge sharing within Toyotarsquos network and demonstrate that Toyotarsquos ability to effectively create and manage network-level knowledge-sharing processes at least partially explains the relative productivity advantages enjoyed by Toyota and its suppliers. We provide evidence that suppliers do learn more quickly after participating in Toyotarsquos knowledge-sharing network. Toyotarsquos network has solved three fundamental dilemmas with regard to knowledge sharing by devising methods to (1) motivate members to participate and openly share valuable knowledge (while preventing undesirable spillovers to competitors), (2) prevent free riders, and (3) reduce the costs associated with finding and accessing different types of valuable knowledge. Toyota has done this by creating a strong network identity with rules for participation and entry into the network. Most importantly, production knowledge is viewed as the property of the network. Toyotarsquos highly interconnected, strong tie network has established a variety of institutionalized routines that facilitate multidirectional knowledge flows among suppliers. Our study suggests that the notion of a dynamic learning capability that creates competitive advantage needs to be extended beyond firm boundaries. Indeed, if the network can create a strong identity and coordinating rules, then it will be superior to a firm as an organizational form at creating and recombining knowledge due to the diversity of knowledge that resides within a network. Copyright {\copyright} 2000 John Wiley \& Sons, Ltd.}, address = {Marriott School of Management, Brigham Young University, Provo, Utah, U.S.A.; Research Institute for Economics and Business Administration, Kobe University, Kobe, Japan}, author = {Dyer, Jeffrey H. and Nobeoka, Kentaro}, citeulike-article-id = {3754397}, citeulike-linkout-0 = {http://dx.doi.org/10.1002/(SICI)1097-0266(200003)21:3%3C345::AID-SMJ96%3E3.0.CO;2-N}, comment = {10.1002/(SICI)1097-0266(200003)21:3<345::AID-SMJ96>3.0.CO;2-N ---=note-separator=--- Creating and managing a high-performance knowledge-sharing network: the Toyota case ---=note-separator=--- Services and the Knowledge-based Economy}, doi = {10.1002/(SICI)1097-0266(200003)21:3%3C345::AID-SMJ96%3E3.0.CO;2-N}, isbn = {0826449522}, issn = {1097-0266}, journal = {Strategic Management Journal}, keywords = {0\_knowledge, 0\_knowledge\_network, 0\_knowledge\_sharing}, number = {3}, pages = {345-367+}, pdf = {internal-pdf://dyer 2000 knowledge sharing toyota-0061773824/dyer 2000 knowledge sharing toyota.pdf}, posted-at = {2008-12-08 08:58:21}, priority = {2}, title = {Creating and managing a high-performance knowledge-sharing network: the Toyota case}, url = {http://dx.doi.org/10.1002/(SICI)1097-0266(200003)21:3%3C345::AID-SMJ96%3E3.0.CO;2-N}, volume = {21}, year = {2000} }

TY - JOUR ID - 14 L3 - citeulike-article-id:3754397 N2 - Previous research suggests that knowledge diffusion occurs more quickly within Toyotarsquos production network than in competing automaker networks. In this paper we examine the lsquoblack boxrsquo of knowledge sharing within Toyotarsquos network and demonstrate that Toyotarsquos ability to effectively create and manage network-level knowledge-sharing processes at least partially explains the relative productivity advantages enjoyed by Toyota and its suppliers. We provide evidence that suppliers do learn more quickly after participating in Toyotarsquos knowledge-sharing network. Toyotarsquos network has solved three fundamental dilemmas with regard to knowledge sharing by devising methods to (1) motivate members to participate and openly share valuable knowledge (while preventing undesirable spillovers to competitors), (2) prevent free riders, and (3) reduce the costs associated with finding and accessing different types of valuable knowledge. Toyota has done this by creating a strong network identity with rules for participation and entry into the network. Most importantly, production knowledge is viewed as the property of the network. Toyotarsquos highly interconnected, strong tie network has established a variety of institutionalized routines that facilitate multidirectional knowledge flows among suppliers. Our study suggests that the notion of a dynamic learning capability that creates competitive advantage needs to be extended beyond firm boundaries. Indeed, if the network can create a strong identity and coordinating rules, then it will be superior to a firm as an organizational form at creating and recombining knowledge due to the diversity of knowledge that resides within a network. Copyright © 2000 John Wiley & Sons, Ltd. IS - 3 JF - Strategic Management Journal SN - 0826449522 AD - Marriott School of Management, Brigham Young University, Provo, Utah, U.S.A.; Research Institute for Economics and Business Administration, Kobe University, Kobe, Japan TI - Creating and managing a high-performance knowledge-sharing network: the Toyota case VL - 21 SP - 345-367 KW - 0_knowledge KW - 0_knowledge_network KW - 0_knowledge_sharing N1 - 10.1002/(SICI)1097-0266(200003)21:3<345::AID-SMJ96>3.0.CO;2-N N1 - Creating and managing a high-performance knowledge-sharing network: the Toyota case N1 - Services and the Knowledge-based Economy AU - Dyer, Jeffrey AU - Nobeoka, Kentaro PY - 2000/// UR - http://dx.doi.org/10.1002/(SICI)1097-0266(200003)21:3%3C345::AID-SMJ96%3E3.0.CO;2-N ER -