Innovation and Management: International Comparisons

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1 Innovation and Management: International Comparisons Editors Kuniyoshi Urabe John Child Tadao Kagono w DE G Walter de Gruyter Berlin New York 1988

2 Contents Part I: Innovation Under Japanese Management Innovation and the Japanese Management System 3 Kuniyoshi Urabe 1. An International Perspective on Innovation A Definition of Innovation Two Patterns of Innovation The Perspective of International Comparison 5 2. An Evolutionary Model of the Japanese Management System A Critique of the Comparative Cultural Approach An Evolutionary Model of the Japanese Management System. 9 \] 3. The Modernized Type of Japanese Management System The Evolutionary Process Characteristics of the Modernized Japanese System in Relation to Innovation Separation between Capital and Management Status Equalization Stable Pay System Internal Labour Market (Career Development System) Joint Participation Type of Management/Labour Relations Humane Values Variations in the Future 19 Appendix 20 J "Kanban"/"Just-In-Time" Production System 20 Strategic Core Principle 20 "Creative Destruction" 21 Small Lot Production 23 \i Total Quality Control 23 Line Stop System 24 \/ Work Improvement Groups 24 \J References 25

$2. An Evolutionary Model of the Japanese Management System. 9 \] 3. The Modernized Type of Japanese Management System 10 3.1. The Evolutionary Process 10 3.2. Characteristics of the Modernized Japanese System in Relation to Innovation 11 3.$

3 X Contents The Japanese Corporate System and Technology Accumulation Hiroyuki Itami 1. Introduction 27 <J2. The Japanese Corporate System The Nature of Technology and the Process of Technology Accumulation Direct Contributions of the Japanese Corporate System Creation and Importation Diffusion Storage Utilization Indirect Contributions of the Japanese Corporate System Closing Remarks 45 References 45 Dynamic Synergy and Top Management Leadership: Strategic Innovation in Japanese Companies 47 Hideki Yoshihara 1. Growth by Diversification Ex Post Dynamic Synergy Unconventional Strategy Leadership for Change Reconsideration of Japanese Management 59 References 61 A Comparative Evolutionary Perspective on Strategy-Making: Advantages and Limitations of the Japanese Approach 63 Robert A. Burgelman 1. Introduction A Comparative Approach A Theory-Based Comparison Overview An Evolutionary Perspective on Strategy-Making Conduct Induced Strategic Behaviour Loop Autonomous Strategic Behaviour Loop External Context External Context and the Strategic Process 70

4. Utilization 41 5. Indirect Contributions of the Japanese Corporate System... 42 6.

4 Contents XI 2.3. Performance Performance and the Strategic Process Strategic Evolution: A Comparative Analysis Variation Amplification and Reduction Organizational Learning Environmental Context and Japanese Strategy-Making Similarities and Differences: Discussion Conclusion 77 References 78 Novel Product Concepts from Lead Users 81 Eric von Hippel Abstract Introduction Marketing Research Constrained by User Experience "Lead Users" Have Experience Needed by Marketing Research in Fast-Moving Fields Utilizing Lead Users in Marketing Research Identifying Important Trend Identifying Lead Users Analyzing Lead User Data Testing Lead User Data on Typical Users Suggestions for Further Research 98 References 99 Part II: Process of Innovation Factors Affecting the Creativity of Organizations - An Approach from the Analysis of New Product Development 105 Toyohiro Kono 1. Introduction Measurement of Creativity Primary Creation and Secondary Creation The Difference Between Creation and Innovation Creativity and Performance Obstacles to Creativity Factors Affecting the Creativity of Organizations Organizational Structure Ill

Conclusion 77 References 78 Novel Product Concepts from Lead Users 81 Eric von Hippel Abstract 81 1. Introduction 81 2. Marketing Research Constrained by User Experience 82 3.

5 XII Contents 3.1. Specialized Creative Departments Ill 3.2. Creative Personnel The Creative Organization Project Team Alternate Use of Individual Thinking and Group Interaction Supporting Middle Managers and Supporting Top Management System of Creative Organization Goal Setting Corporate Philosophy which Encourages Creativity Clear Strategic Policy and Freedom Within the Policy Integration of Personal Interest With the Goals of the Research 124! 4.2. Information Collection and Communication Distinctive Specialized Knowledge Encouragement to Look at the Subject from New Angles Welcoming New Ideas 127! Collection of New Ideas 128 i Encouragement to Challenge the Impossible 129! 4.4. System and Climate that Encourage Independence Mixture of the First Runner and the Second Runner Policy 130 j Respect for Minority Opinion 130 i Separation of Creative Department i 4.5. Evaluation and Development 132 [ Evaluation and Development System 132! Permissiveness for Redundant Search 133 ' Slack Motivation Integration of the Needs of the Researcher with the ; Subject of Research 134 ; 5.2. Recognition Dual Promotion Ladders : Freedom of Failure 135 j 6. Summary and Problems 136 : References 143!

1.2. Clear Strategic Policy and Freedom Within the Policy... 123 4.1.3. Integration of Personal Interest With the Goals of the Research 124! 4.2. Information Collection and Communication 125 1 4.2.1. Distinctive Specialized Knowledge 125 4.

6 Contents XIII Technology Bunching and Industrial Strategies 145 Michel Delapierre 1. The Crisis as a Constraint to Change The Challenge to Industrial Corporations The Emergence of New Modes of Operation The Strategies of Technology Bunching The Technology at the Starting Point From Technologies to Products The Valorization Process: Reaching the Market Place Technology Bunching and the New Industrial Fabric The Building of a New Industrial Framework Technology Bunching, National Competitiveness, and Industrial Policy 159 References 162 Part III: Innovation and Organizational Change Strategy Making as Craft 167, Yvette and Henry Mintzberg Appendix 1: Tracking Strategy: Henry's Research Appendix 2: Tracking Strategy: Yvette's Story 191 References 196 Management of Change in the Firm - Theoretical Analysis and Empirical Evidence 197 Horst Albach 1. Introductory Remarks The Empirical Facts Adaptation to Changes in the Firm's Environment Low Cost of Adaptation The Cobb-Douglas Production Function without Technical Progress The Cobb-Douglas Production Function with Technical Progress High Cost of Adaptation The Putty-Clay Production Function The Semi-Fixed Factors Production Function 212

2.3. The Valorization Process: Reaching the Market Place... 155 3. Technology Bunching and the New Industrial Fabric 158 3.1. The Building of a New Industrial Framework 158 3.2. Technology Bunching,

7 XIV Contents 4. Promotion of Changes in the Firm's Environment. : The Cobb-Douglas Production Function with Innovative Effort Average Production Function Frontier Production Function The Interactive Production Model with Marketing Effort Concluding Remarks 219 Appendix: The Econometric Model of the Firm 220 References 224 Restructuring Mature Industries: The Challenge for Europe 225 Charles Baden-Fuller and John M. Stopford Abstract 225 Introduction Conventional Models Revised Assumptions Turbulence Exit Barriers Reassessing Traditional Strategies Low Cost - Share Building Strategies Efficiency and Flexibility Removing the Constraints Against Change 235 References 238 On the Inter-Relation Between Large and Small Enterprises in a Socialist Economy: The Case of the GDR 243 Edwin Polaschewski References 252 Part IV: Impact of Information Technology and Micro-Electronics Information Technology and Organization 255 John Child 1. Introduction Constraints on the Application of Information Technology to Organization ' 257

Concluding Remarks 219 Appendix: The Econometric Model of the Firm 220 References 224 Restructuring Mature Industries: The Challenge for Europe 225 Charles Baden-Fuller and John M.

8 Contents XV 3. IT and the Potential for Organizational Development Inherent Organizational Tensions Control and Flexibility Centralization and Decentralization Organizational Complexity Managerial Overhead Segmentalism The Management of Boundary Relations The Relevance of the Strategic and Operational Context General Strategic Contingencies Specific Operational Contingencies 287 References 297 High Technology and Its Impact on Business Management 303 Tasuku Noguchi 1. Major Problems to Be Discussed The Making of the Social Production System Changes in Business Management 312 References 317 Adapting Organizations to Micro-Electronics - and Micro- Electronics to Organizations: Experiences in the Federal Republic of Germany 319 Alfred Kieser 1. Technological Determinism, Strategic Choice, and Quality of Working Life..." Theoretical Concepts: Technological Determinism and Strategic Choice Micro-Electronics and Organizational Change: Empirical Evidence The MESS-Project: A Tendency to Organizational Conservatism Sorge et al.: Organizational Strategies to Implement CNC-Machines Are Shaped by Culture Kern and Schumann: the Emergence of New Paradigms of Organizational Design A Concept to Consolidate Conflicting Empirical Results Facilitating Organizational Innovation 333 References 335

2. Specific Operational Contingencies 287 References 297 High Technology and Its Impact on Business Management 303 Tasuku Noguchi 1. Major Problems to Be Discussed 303 2.

9 XVI Contents Technology, Innovation, and Labour-Management Strategies Craig R. Littler 1. Introduction The Innovation Perspective The Analysis of Technology _ New Technology and Work Relations Japanization Conclusions 355 References 356 Research Note Development of the Studies of Socialist Enterprise in Japan and "Innovation" of the Socialist Enterprise 361 Soichiro Giga Introduction "Innovation" of the Studies in the Socialist Enterprise Characteristics of Studies of the Socialist Enterprise in Japan Development of Studies of Socialist Enterprises in Post-War Japan "Innovation" of the Socialist Enterprise and "Innovation" in the Studies of the Socialist Enterprise Conclusion 365 References 366 The Authors 369

Conclusions 355 References 356 Research Note Development of the Studies of Socialist Enterprise in Japan and "Innovation" of the Socialist Enterprise 361 Soichiro Giga Introduction 361 1.

Corporate Restructuring

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