Japanese Organizational Knowledge Creation in Anglo-American Environments. Prometheus, Dec. 1998, Vol. 16 No. 4 pp.421-439

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Notwithstanding contemporary Western images of 'changing Japan', expectations of lifetime employment within a remarkably stable population of leading firms continue to underpin a distinctive style of Japanese management based on high levels of inter-employee trust and extensive transactions in tacit knowledge. After reviewing some factors that distinguish Japan's national innovation system from its Anglo-American counterparts, we develop an 'inside the black box' model of Japanese organizational knowledge creation. This highlights some aspects of Japanese management which do not sit easily amidst Anglo-American organizational turbulence and predilections for explicit knowledge. The second part of our paper uses two case studies to explore factors limiting the 'transferability' of Japanese management to Anglo and American innovation environments. These case studies illustrate differences between Japanese and Western systems, together with processes by which their respective advantages can combine to produce synergic benefits.

The 'ART' of knowledge: Systems to capitalize on market knowledge. European Management Journal, December 1998, Volume 16, Issue 6, pp.673-684

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The authors argue that current knowledge management practice, which focuses on managing explicit data and information technology, is not enough. Tacit knowledge, such as subjective insights or emotions must also be considered. Converting between these forms of knowledge is important, and the concept of ART (action-reflex-trigger) systems is introduced to enable this to take place. ART systems enable companies to implement a multi-dynamic approach to knowledge management. The complex concept of `ba' is introduced--a shared mental space for knowledge creation--which provides a foundation for knowledge creation. The authors explore the nature, context and enabling conditions for ART systems and show how ba can be employed in ART systems. A case study--of the Seven-Eleven Japan corporation is presented, whose outstanding success is based on the capitalization of market knowledge, striking a balance between supportive IT and human insight, to achieve a multi-dynamic approach to knowledge management. The company integrates several interlinked ba and ART systems.

Organizational Capabilities in Product Development of Japanese Firms: A Conceptual Framework and Empirical Findings. Organization Science Vol. 9 No. 6 (Nov. - Dec., 1998) pp. 699-718

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Using a large-scale data set on product development organizations of Japanese manufacturing firms, this paper explores the effects of organizational capabilities on product development performance. We present a conceptual framework assuming that organizational capabilities consist of multilayered knowledge. Based on the idea, we classify organizational capabilities into "local," "architectural," and "process" capabilities along two dimensions: modularity and designability. The empirical analysis demonstrates differential effects of different types of organizational capabilities on different types of product development performance, and compares the differential effects between two types of industries that differ in terms of their product characteristics: system based and material based. The central message from our analysis is that the process capabilities emerging from dynamic interaction of knowledge play a crucial role as core capabilities for product development of Japanese firms in the system-based industries in which Japanese firms are relatively competitive. In the material industries, however, local capabilities have major effects on performance while effects of process capabilities are limited, which underlies the relative weakness of Japanese firms in developing material-based products. Our results raise some intriguing implications on the competitive advantages and challenges of Japanese firms' product development.

The Concept of ‘Ba’ : Emerging Foundation of Knowledge Creation. California Management Review 1998 Vol.40 No.3 pp.40-54

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This article introduces the Japanese concept of "Ba" to organizational theory. Ba (equivalent to "place" in English) is a shared space for emerging relationships. It can be a physical, virtual, or mental space. Knowledge, in contrast to information, cannot be separated from the context--it is embedded in ba. To support the process of knowledge creation, a foundation in ba is required. This article develops and explains four specific platforms and their relationships to knowledge creation. Each of the knowledge conversion modes is promoted by a specific ba. A self-transcending process of knowledge creation can be supported by providing ba on different organizational levels. This article presents case studies of three companies that employ ba on the team, division, and corporate level to enhance knowledge creation

Managing Cross-divisional Interconnections to Create Knowledge-based Competence in a Multi-divisional Firm. Proceedings of the Strategic Management Society New York: John Wiley and Sons 1998, pp.151-166.