Complexity in Technology Management: Theoretical Analysis and Case Study of Automobile Sector in Japan

Abstract

In this article, a theoretical analysis on the various issues related to technology management under growing complexity is provided. We put forward a model classifying complex situations, including technology management on a two dimensional space, i.e., object-related and human-related complexity. The point on the grid depends on factors related to external and internal complexity as well as conflict of interests by the actors. By analyzing complexity involved in technology management using this framework, we may extract crucial dimensions of technology management. Finally, we provide a case study on the strategies of the Japanese automobile sector, by mainly focusing on the technological perspective. The chosen companies were Toyota, Nissan, Honda, Mitsubishi Motors, and Mazda. The factors related to the growing complexity in technology management were both technological and non-technological in nature. An analysis of the rate and direction of competence building based on patent data confirmed that the companies have been building competences in key areas related to safety, environment, and driving comfort over a decade to meet changing social expectations and environmental pressures. The analysis shows that the automobile sector has been undergoing radical changes due to growing internal and external complexity.