| Preface | 6 |
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| Contents | 8 |
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| Contributors | 10 |
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| Part I Perspectives | 12 |
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| 1 Organization Accumulates and Market Utilizes: A Framework of Knowledge-Corporate System-Innovation Dynamics | 13 |
| 1.1 Corporate System as the Engine of Knowledge-Innovation Dynamics | 13 |
| 1.1.1 Our Research Theme for the Twenty-First Century COE Program | 13 |
| 1.1.2 Importance of Corporate System | 15 |
| 1.2 Conceptual Framework | 17 |
| 1.2.1 Conceptual Framework of Knowledge-Corporate System-Innovation Dynamics | 17 |
| 1.2.2 Formation of Open Knowledge Base | 19 |
| 1.2.3 Learning Activity by the Corporate Organization | 21 |
| 1.3 Dynamics of Accumulation and Dynamics of Utilization | 22 |
| 1.3.1 Two Dynamics | 22 |
| 1.3.2 Organization Accumulates and Market Utilizes | 23 |
| 1.3.3 Dilemmas Between Two Dynamics | 25 |
| 1.4 Market-Oriented Corporate System and Organization-Oriented Corporate System: US Versus Japan | 27 |
| 1.4.1 M System and O System | 27 |
| 1.4.2 US Experiments and Japan Develops | 29 |
| 1.4.3 Weakness | 31 |
| 1.5 From Here to Where? | 31 |
| 1.5.1 US as the Market Arena for the World | 31 |
| 1.5.2 Where can Japan Go? | 33 |
| References | 33 |
| 2 Boundaries of Innovation and Social Consensus Building: Challenges for Japanese Firms | 35 |
| 2.1 Introduction | 35 |
| 2.2 Types of Innovation by Boundary | 36 |
| 2.2.1 Boundaries of Innovation: Four Levels | 36 |
| 2.2.2 Determinants of Innovation | 40 |
| 2.3 Boundaries of Innovation and Social Consensus Building | 42 |
| 2.3.1 Coordination and Integration Mechanisms of the Japanese Corporate System | 42 |
| 2.3.2 Innovation as Social Consensus Building | 43 |
| 2.3.3 Consensus Building Beyond Community and Limitation of Japanese Firms | 45 |
| 2.4 Innovation Challenges for Japanese Firms | 47 |
| 2.4.1 Importance of Innovation Between Different Markets | 47 |
| 2.4.2 Organizational Problems from Within | 48 |
| 2.4.3 Challenges for Japanese Firms | 50 |
| References | 50 |
| 3 Redefining Innovation as System Re-Definition | 53 |
| 3.1 Introduction | 53 |
| 3.2 Conceptual Understanding of Combinations in Product Systems | 56 |
| 3.2.1 Function | 58 |
| 3.2.2 Physical Parameters | 59 |
| 3.2.3 Value | 59 |
| 3.3 Dimensions of Product Innovation | 60 |
| 3.3.1 Changes in Internal System | 61 |
| 3.3.2 Changes in External System | 64 |
| 3.4 Typology of Innovation | 66 |
| 3.4.1 Liner Innovations | 67 |
| 3.4.2 System Reconfiguration | 68 |
| 3.4.3 Category Creation | 69 |
| 3.5 Discussion and Implications | 72 |
| 3.5.1 Mapping Models of Innovation | 72 |
| 3.5.2 Difficulties Associated with Innovation | 74 |
| 3.5.3 Technological Progress Smothers Innovation | 76 |
| 3.5.4 Challenges for Japanese firms | 79 |
| 3.6 Conclusion | 82 |
| References | 84 |
| 4 Knowledge, Information, Rules, and Structures | 86 |
| 4.1 Introduction | 86 |
| 4.2 Prefatory Autobiographical Remarks | 87 |
| 4.3 Information and Knowledge | 90 |
| 4.4 Practice and Ontology | 93 |
| 4.5 Do Organizations Think? | 95 |
| 4.6 Self-Organization | 97 |
| 4.7 Conclusions | 102 |
| References | 102 |
| 5 The Replication Perspective on Productive Knowledge | 104 |
| 5.1 Introduction | 104 |
| 5.2 Conceptual Background | 106 |
| 5.3 Examples | 113 |
| 5.4 The Sources of Replication Difficulty | 119 |
| 5.5 Perspectives on Replication Practice | 125 |
| References | 128 |
| Part II Issues | 131 |
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| 6 Organizational Deadweight and the Internal Functioning of Japanese Firms: An Explorative Analysis of Organizational Dysfunction | 132 |
| 6.1 Introduction | 132 |
| 6.2 Functionality and Dysfunctionality of Japanese Firms | 133 |
| 6.2.1 Organizational Adaptation and Deterioration | 133 |
| 6.2.2 Before the Bubble Burst: Emergent Strategy as a Source of Competitive Edges | 135 |
| 6.2.3 After the Bubble Burst: The Dysfunction of Emergent Strategy | 136 |
| 6.2.4 Common Attributes of Organizational Deterioration | 138 |
| 6.3 Operationalization of Organizational Deadweight | 139 |
| 6.3.1 Premises of the Concept | 139 |
| 6.3.2 Measuring Organizational Deadweight | 140 |
| 6.4 Overview of Research | 143 |
| 6.4.1 Research Method | 143 |
| 6.4.2 Validity and Reliability of Organizational Deadweight | 144 |
| 6.5 Descriptive Statistics and Correlation | 146 |
| 6.5.1 Organizational Deadweight and Performance Variables | 146 |
| 6.5.2 Standardization in an Organization | 149 |
| 6.5.3 Hierarchy and Power Distribution | 151 |
| 6.5.4 Communication in the BUs | 155 |
| 6.6 Path Analysis | 161 |
| 6.6.1 Model 1 | 162 |
| 6.6.2 Model 2 | 163 |
| 6.6.3 Model 3 | 164 |
| 6.7 Discussion and Conclusion | 164 |
| References | 168 |
| 7 Reasons for Innovation: Legitimizing Resource Mobilization for Innovation in the Cases of the Okochi Memorial Prize Winners | 172 |
| 7.1 Introduction | 172 |
| 7.2 Research Question:
|