IDEAS home Printed from https://ideas.repec.org/a/inm/ororsc/v9y1998i6p699-718.html
   My bibliography  Save this article

Organizational Capabilities in Product Development of Japanese Firms: A Conceptual Framework and Empirical Findings

Author

Listed:
  • Ken Kusunoki

    (Hitotsubashi University, Faculty of Commerce, 2-1 Naka, Kunitachi, Tokyo 186 Japan)

  • Ikujiro Nonaka

    (Japan Advanced Institute of Science and Technology, Ishikawa 923-1292, Japan)

  • Akiya Nagata

    (Japan Advanced Institute of Science and Technology, Ishikawa 923-1292, Japan)

Abstract

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.

Suggested Citation

  • Ken Kusunoki & Ikujiro Nonaka & Akiya Nagata, 1998. "Organizational Capabilities in Product Development of Japanese Firms: A Conceptual Framework and Empirical Findings," Organization Science, INFORMS, vol. 9(6), pages 699-718, December.
    • Handle: RePEc:inm:ororsc:v:9:y:1998:i:6:p:699-718
    DOI: 10.1287/orsc.9.6.699
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/orsc.9.6.699
    Download Restriction: no
    File URL: https://libkey.io/10.1287/orsc.9.6.699?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ikujiro Nonaka, 1994. "A Dynamic Theory of Organizational Knowledge Creation," Organization Science, INFORMS, vol. 5(1), pages 14-37, February.
    2. Richard R. Nelson, 1991. "Why do firms differ, and how does it matter?," Strategic Management Journal, Wiley Blackwell, vol. 12(S2), pages 61-74, December.
    3. Jay B. Barney, 1986. "Strategic Factor Markets: Expectations, Luck, and Business Strategy," Management Science, INFORMS, vol. 32(10), pages 1231-1241, October.
    4. Alice H. Cook, 1965. "The International Labor Organization and Japanese Politics," ILR Review, Cornell University, ILR School, vol. 19(1), pages 41-57, October.
    5. Sakakibara, Kiyonori & Westney, D. Eleanor, 1985. "Comparative Study of the Training, Careers and Organization of Engineers in the Computer Industry in the United States and Japan," Hitotsubashi Journal of commerce and management, Hitotsubashi University, vol. 20(1), pages 1-20, December.
    6. Giovanni Dosi & Christopher Freeman & Richard Nelson & Gerarld Silverberg & Luc Soete (ed.), 1988. "Technical Change and Economic Theory," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1988, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Namgyoo Park & John Mezias & Jinju Lee & Jae-Hoon Han, 2014. "Reverse knowledge diffusion: Competitive dynamics and the knowledge seeking behavior of Korean high-tech firms," Asia Pacific Journal of Management, Springer, vol. 31(2), pages 355-375, June.
    2. Peter Wirtz, 2006. "Compétences, conflits et création de valeur:vers une approche intégrée de la gouvernance," Revue Finance Contrôle Stratégie, revues.org, vol. 9(2), pages 187-201, June.
    3. Li, Shenxue & Clark, Timothy & Sillince, John, 2018. "Constructing a strategy on the creation of core competencies for African companies," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 204-213.
    4. Mehmet Ali Köseoglu & John A. Parnell & Melissa Yan Yee Yick, 2021. "Identifying influential studies and maturity level in intellectual structure of fields: evidence from strategic management," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(2), pages 1271-1309, February.
    5. Azevedo, Susana & Ferreira, João, 2007. "The Linkage Between Lis And Rbv For Sustained Competitive Advantage: An Integrated Conceptual Model," MPRA Paper 5648, University Library of Munich, Germany.
    6. Azevedo, Susana & Ferreira, João, 2008. "Competitiveness Of The Port Of Sines: The Rbv Contribution," MPRA Paper 6866, University Library of Munich, Germany.
    7. Stefano Brusoni & Lorenzo Cassi & Simge Tuna, 2021. "Knowledge integration between technical change and strategy making," Journal of Evolutionary Economics, Springer, vol. 31(5), pages 1521-1552, November.
    8. Rickley, Marketa & Karim, Samina, 2018. "Managing institutional distance: Examining how firm-specific advantages impact foreign subsidiary CEO staffing," Journal of World Business, Elsevier, vol. 53(5), pages 740-751.
    9. Husted, Kenneth, 1999. "Between Autonomy and Control: The role of industrial researchers’ decision-making," Working Papers 11/1999, Copenhagen Business School, Department of Management, Politics & Philosophy.
    10. Juan Prieto-Rodriguez & Manuel Gonzalez-Díaz, 2008. "Is There an Economic Rent for Island Hotels?," Tourism Economics, , vol. 14(1), pages 131-154, March.
    11. John C. Butler & Jovan Grahovac, 2012. "Learning, Imitation, and the Use of Knowledge: A Comparison of Markets, Hierarchies, and Teams," Organization Science, INFORMS, vol. 23(5), pages 1249-1263, October.
    12. G. Dosi, 2012. "Economic Coordination and Dynamics: Some Elements of an Alternative “Evolutionary” Paradigm," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 12.
    13. Hakki Yildirmaz & M. Atilla Öner & Nicole Herrmann, 2018. "Impact of Knowledge Management Capabilities on New Product Development and Company Performance," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 15(04), pages 1-34, August.
    14. Stoelhorst, J. W. & van Raaij, Erik M., 2004. "On explaining performance differentials: Marketing and the managerial theory of the firm," Journal of Business Research, Elsevier, vol. 57(5), pages 462-477, May.
    15. Schmidt, Tobias S. & Schneider, Malte & Hoffmann, Volker H., 2012. "Decarbonising the power sector via technological change – differing contributions from heterogeneous firms," Energy Policy, Elsevier, vol. 43(C), pages 466-479.
    16. Carlos Devece & Daniel Palacios & David Martinez-Simarro, 2017. "Effect of information management capability on organizational performance," Service Business, Springer;Pan-Pacific Business Association, vol. 11(3), pages 563-580, September.
    17. Erden, Zeynep & Klang, David & Sydler, Renato & von Krogh, Georg, 2014. "Knowledge-flows and firm performance," Journal of Business Research, Elsevier, vol. 67(1), pages 2777-2785.
    18. Hosein Fallah, M. & Choudhury, Piyasi & Daim, Tugrul U., 2012. "Does movement of inventors between companies affect their productivity?," Technology in Society, Elsevier, vol. 34(3), pages 196-206.
    19. Caroli, Eve, 2007. "Internal Versus External Labour Flexibility: The Role of Knowledge Codification," National Institute Economic Review, National Institute of Economic and Social Research, vol. 201, pages 107-118, July.
    20. Eon-Seong Lee & Dong-Wook Song, 2010. "Knowledge management for maritime logistics value: discussing conceptual issues," Maritime Policy & Management, Taylor & Francis Journals, vol. 37(6), pages 563-583, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ororsc:v:9:y:1998:i:6:p:699-718. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.