Document (#25915)

Author

Tsuchiya, S.

Title

New challenges to Japanese corporations in organizational knowledge creation

Source

Knowledge management: organization competence and methodolgy. Proceedings of the Fourth International ISMICK Symposium, 21-22 October 1996, Netherlands. Ed.: J.F. Schreinemakers

Imprint

Würzburg : Ergon

Year

1996

Pages

S.207-212

Series

Advances in knowledge management; vol.1

Abstract

We are in the midst of a new business revolution driven by information technology. The centerpiece of this business revolution is a new kind of product which delivers instant customer gratification in a cost-effective way. The ability to make such products will determine the successful corporations of the next century. The new business revolution demands drastic changes in organizational knowledge creation, among corporations as well as in a corporation. The key attributes of Japan's success in creation of organizational knowledge are: (1) participative management, (2) "Kaizen," and (3) "Keiretsu." In today's world of fast-moving markets and fierce competition, however, the Japan model betrays its weakness: too much time required for organizational decision making, difficulty to make revolutionary change, and obscurity of responsibility. To solve the problems, Japanese companies are decentralizing the organizations and forming virtual corporations. The changes from consensus management to responsibility management and from "keiretsu" groups to virtual corporations pose three fundamental challenges to Japanese corporations in organizational knowledge creation: (1) co-existence of firm central direction and maximum individual autonomy; (2) construction of sophisticated information networks; and (3) intercultural communication. Corporations, MITI, and universities in Japan are making concerted efforts to deal wich the winds of change that are sweeping through industry and the economy.

Theme

Information Resources Management

Location

Japan

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