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The theory of the knowledge-creating firm: subjectivity, objectivity and synthesis

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  • Ikujiro Nonaka
  • Ryoko Toyama

Abstract

The theory of the knowledge-creating firm explains the differences among firms not as a result of market failure, but as a result of the firm's visions of the future and strategy. This paper proposes a framework to capture the dynamic process of knowledge creation in which knowledge is created through the dynamic interaction between subjectivity and objectivity. Knowledge is created through the synthesis of thinking and actions of individuals, who interact with each other within and beyond the organizational boundaries. Copyright 2005, Oxford University Press.

Suggested Citation

  • Ikujiro Nonaka & Ryoko Toyama, 2005. "The theory of the knowledge-creating firm: subjectivity, objectivity and synthesis," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(3), pages 419-436, June.
    • Handle: RePEc:oup:indcch:v:14:y:2005:i:3:p:419-436
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