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Purpose

The purpose of this paper is to provide empirical evidence of engineering knowledge creation in the context of product failure management, thereby extending knowledge about organizational learning and mindfulness to a largely unexplored context. The study addresses a gap in the literature by illustrating “engineering epistemology” as a critical knowledge asset that gives rise to superior problem solving – and potentially – superior business performance.

Design/methodology/approach

The authors conducted qualitative research based on phenomenological interviews with product engineers to generate a grounded theory about organizational knowledge creation. Rigorous analysis of narratives detailing the “lived lives” of problem solvers relied on a research protocol recommended by Corbin and Strauss.

Findings

The findings show that engineers' real‐world problem‐solving practices mirror Nonaka and Takeuchi's five phases of knowledge creation and the three stages of sensemaking in enactment theory, the genesis of Weick's notion of mindfulness. A synthesized model illustrates how a five‐step problem‐solving process facilitated by environmental conditions resulting in organizational learning is influenced by an “engineering epistemology”.

Research limitations/implications

The sample was limited to engineers based primarily in the US Midwest. While the authors' methodology (grounded theory) was appropriate for theory generation, the results invite quantitative testing involving a larger and more diversified sample of engineers.

Practical implications

The paper highlights the social aspects of engineering problem solving that firms can optimize for effective problem investigation and higher organizational learning.

Originality/value

The paper conceptualizes problem‐solving teamwork as epistemic collaboration, with the often un‐optimized potential of generating organizational learning. It is, to the authors' knowledge, the first research to concentrate on modeling the dynamics of knowledge creation in an engineering problem‐solving context.

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