Journal
EUROPEAN MANAGEMENT JOURNAL
Volume 32, Issue 1, Pages 137-146Publisher
ELSEVIER SCI LTD
DOI: 10.1016/j.emj.2013.02.003
Keywords
Knowledge creation; Organization theory; Exploration; Exploitation; Phronesis
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How can a company become sustainably innovative? We propose that the company needs to have organizational forms that achieve a dynamic synthesis of knowledge exploration and exploitation. In this paper, we present the dynamic fractal organization as a new organizational model. This model departs from the conventional information processing paradigm. Instead, we present a new frontier in organizational theory: the dynamic fractal organization based on dynamic 'ba'. Dynamic fractal organizations build and utilize a triad relationship of knowledge that integrates and synthesizes tacit and explicit knowledge and creates a third type of knowledge, phronesis. The triad relationship is an upward spiraling process of converting tacit and explicit knowledge, and propels sustainable knowledge transformation across the diverse boundaries within and between organizations, and their environments. (C) 2013 Elsevier Ltd. All rights reserved.
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