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Case studies of two japanese companies

Case studies of two japanese companies - Organization...

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http://oss.sagepub.com Organization Studies DOI: 10.1177/0170840603024002345 2003; 24; 235 Organization Studies Mitsuru Kodama Companies Strategic Innovation in Traditional Big Business: Case Studies of Two Japanese http://oss.sagepub.com/cgi/content/abstract/24/2/235 The online version of this article can be found at: Published by: http://www.sagepublications.com On behalf of: European Group for Organizational Studies can be found at: Organization Studies Additional services and information for http://oss.sagepub.com/cgi/alerts Email Alerts: http://oss.sagepub.com/subscriptions Subscriptions: http://www.sagepub.com/journalsReprints.nav Reprints: http://www.sagepub.co.uk/journalsPermissions.nav Permissions: http://oss.sagepub.com/cgi/content/refs/24/2/235 Citations at YORK UNIV LIBRARIES on November 1, 2009 http://oss.sagepub.com Downloaded from
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Strategic Innovation in Traditional Big Business: Case Studies of Two Japanese Companies Mitsuru Kodama Abstract This paper presents two case studies of how large, traditional corporations simultaneously created new service markets and established a dominant position in the competitive fields of the Internet and mobile communications in Japan. The corporations accepted new organizational bodies imbued with an entrepreneurial spirit supported by different types of personnel and then continuously promoted entrepreneurial strategies based on time pacing. At the same time, with the aim of implementing strategic innovation, the companies integrated the above strategies with deliberate strategies based on event-based pacing practiced by the existing organizational bodies. This paper uses case studies to discuss the factors in success and the problems encountered in the course of achieving strategic innovation in the communications field, specifically in the creation of new markets, through the deliberate and strategic maintenance and subsequent integration of paradoxical organizations and strategies under a single corporate umbrella. Keywords: strategy, strategic community, paradoxical management, core competency Positioning of this Research Companies in businesses such as information technology (IT), multimedia and communications, which expect to face a complex and uncertain future, need to find new directions in the 21st century in order to dominate the competition. They need to oversee a radical transformation of the basic framework that was used in the past, including existing strategies, structure, culture, competencies and business processes. Amid rapid technological change, those businesses seeking competitive advantage in the global market need to expand certain characteristics that are apparently in conflict with one another. On the one hand, organizations must be flexible enough to cope promptly with the threat of competition from others, yet on the other hand they must ensure stable operation so that they can continue to grow based on the advantages they enjoy. In other words, each organization is now obliged to face an agility paradox brought about by the need for such promptness. Along these lines, managers are asked to ensure
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