Organizational knowledge creation essentially enables innovation. Innovation, in other words, is a dynamic process of pursuing the "truth" by creating new meanings and values in the context of "here and now." The strategy supports organizational knowledge creation since it is about striving to enact the new reality that aligns with the organizational mission or objective, even under the volatile and unpredictable environment.

The overemphasis on scientific management has been debilitating the creativity and innovative capacity of Japanese companies, which are originally known for their human-centric management. Since organizational knowledge creation starts with the process of "socialization," where people mutually empathize and share the subjectivities of each other, tacit knowledge of humans, as opposed to data or explicit knowledge, plays the main role in innovation. Art and science should be balanced, and tacit knowledge and explicit knowledge need to interact with one another in both conscious and unconscious manners for innovation. This empathy-based, or "phenomenological," approach to management can allow organizations to create new meanings and values through the interaction with others and the rapidly changing environment.