Boundaries Innovation and Knowledge Integration in the Japanese Firm

Abstract

At this stage of the 21st century, Japanese firms are endeavouring to discover what is important in order to compete in global markets and revitalise their organisations. This paper draws on in-depth case studies of Japan's consumer electronics, communications device, semiconductor and mobile phone services to clarify the origins of the competences of outstanding Japanese firms. It also considers the ‘knowledge integration firm,’ which is a new corporate model differing from that of Western management. Skilful coordination and collaboration around Japanese firms' organisational boundaries, aimed at technological and marketing innovation, renews accumulated path-dependent knowledge while dynamically integrating diverse knowledge inside and outside the firm. The paper presents a new business model and Japanese leadership style to create an independent knowledge integration model. Finally, it examines the key lessons that Asian firms have come to learn from their Japanese counterparts, based on the core concepts of Japanese management.