The Structure of Work, Patterns of Communication, and Organizational Learning: A Three-Nation Comparison

Abstract

National differences in patterns of new product development reflect differences in patterns of communication and delegation within the organization. In mature U.S. corporations, projects are generally controlled by superiors and implemented by subordinates who compete with each other. People making critical decisions may lack critical information while the people responsible for implementation may not have a stake in overall project success. The result is frequent failure. In U.S. startups, smaller Italian companies and in Japanese management groups, work is carried out by cooperative groups. Members have a shared stake in overall project success. Decisions are made to promote overall project success. Differences among small group performance in U.S., Italian, and Japanese companies reflect differences in the scope of group activity. U.S. startups can innovate technologies, business processes, and products. Innovations by small Italian companies are generally restricted to changes that compliment the activities of other firms in their network. Japanese business groups operate within a highly structured corporate environment. Innovations tend to be limited to elaborations in core technologies, processes, and products.