1;Preface;6 2;Contents;8 3;Contributors;10 4;Part I Perspectives;12 4.1;1 Organization Accumulates and Market Utilizes: A Framework of Knowledge-Corporate System-Innovation Dynamics;13 4.1.1;1.1 Corporate System as the Engine of Knowledge-Innovation Dynamics;13 4.1.1.1;1.1.1 Our Research Theme for the Twenty-First Century COE Program;13 4.1.1.2;1.1.2 Importance of Corporate System;15 4.1.2;1.2 Conceptual Framework;17 4.1.2.1;1.2.1 Conceptual Framework of Knowledge-Corporate System-Innovation Dynamics;17 4.1.2.2;1.2.2 Formation of Open Knowledge Base;19 4.1.2.3;1.2.3 Learning Activity by the Corporate Organization;21 4.1.3;1.3 Dynamics of Accumulation and Dynamics of Utilization;22 4.1.3.1;1.3.1 Two Dynamics;22 4.1.3.2;1.3.2 Organization Accumulates and Market Utilizes;23 4.1.3.3;1.3.3 Dilemmas Between Two Dynamics;25 4.1.4;1.4 Market-Oriented Corporate System and Organization-Oriented Corporate System: US Versus Japan;27 4.1.4.1;1.4.1 M System and O System;27 4.1.4.2;1.4.2 US Experiments and Japan Develops;29 4.1.4.3;1.4.3 Weakness;31 4.1.5;1.5 From Here to Where?;31 4.1.5.1;1.5.1 US as the Market Arena for the World;31 4.1.5.2;1.5.2 Where can Japan Go?;33 4.1.6;References;33 4.2;2 Boundaries of Innovation and Social Consensus Building: Challenges for Japanese Firms;35 4.2.1;2.1 Introduction;35 4.2.2;2.2 Types of Innovation by Boundary;36 4.2.2.1;2.2.1 Boundaries of Innovation: Four Levels;36 4.2.2.2;2.2.2 Determinants of Innovation;40 4.2.3;2.3 Boundaries of Innovation and Social Consensus Building;42 4.2.3.1;2.3.1 Coordination and Integration Mechanisms of the Japanese Corporate System;42 4.2.3.2;2.3.2 Innovation as Social Consensus Building;43 4.2.3.3;2.3.3 Consensus Building Beyond Community and Limitation of Japanese Firms;45 4.2.4;2.4 Innovation Challenges for Japanese Firms;47 4.2.4.1;2.4.1 Importance of Innovation Between Different Markets;47 4.2.4.2;2.4.2 Organizational Problems from Within;48 4.2.4.3;2.4.3 Challenges for Japanese Firms;50 4.2.5;References;50 4.3;3 Redefining Innovation as System Re-Definition;53 4.3.1;3.1 Introduction;53 4.3.2;3.2 Conceptual Understanding of Combinations in Product Systems;56 4.3.2.1;3.2.1 Function;58 4.3.2.2;3.2.2 Physical Parameters;59 4.3.2.3;3.2.3 Value;59 4.3.3;3.3 Dimensions of Product Innovation;60 4.3.3.1;3.3.1 Changes in Internal System;61 4.3.3.2;3.3.2 Changes in External System;64 4.3.4;3.4 Typology of Innovation;66 4.3.4.1;3.4.1 Liner Innovations;67 4.3.4.2;3.4.2 System Reconfiguration;68 4.3.4.3;3.4.3 Category Creation;69 4.3.5;3.5 Discussion and Implications;72 4.3.5.1;3.5.1 Mapping Models of Innovation;72 4.3.5.2;3.5.2 Difficulties Associated with Innovation;74 4.3.5.3;3.5.3 Technological Progress Smothers Innovation;76 4.3.5.4;3.5.4 Challenges for Japanese firms;79 4.3.6;3.6 Conclusion;82 4.3.7;References;84 4.4;4 Knowledge, Information, Rules, and Structures;86 4.4.1;4.1 Introduction;86 4.4.2;4.2 Prefatory Autobiographical Remarks;87 4.4.3;4.3 Information and Knowledge;90 4.4.4;4.4 Practice and Ontology;93 4.4.5;4.5 Do Organizations Think?;95 4.4.6;4.6 Self-Organization;97 4.4.7;4.7 Conclusions;102 4.4.8;References;102 4.5;5 The Replication Perspective on Productive Knowledge;104 4.5.1;5.1 Introduction;104 4.5.2;5.2 Conceptual Background;106 4.5.3;5.3 Examples;113 4.5.4;5.4 The Sources of Replication Difficulty;119 4.5.5;5.5 Perspectives on Replication Practice;125 4.5.6;References;128 5;Part II Issues;131 5.1;6 Organizational Deadweight and the Internal Functioning of Japanese Firms: An Explorative Analysis of Organizational Dysfunction;132 5.1.1;6.1 Introduction;132 5.1.2;6.2 Functionality and Dysfunctionality of Japanese Firms;133 5.1.2.1;6.2.1 Organizational Adaptation and Deterioration;133 5.1.2.2;6.2.2 Before the Bubble Burst: Emergent Strategy as a Source of Competitive Edges;135 5.1.2.3;6.2.3 After the Bubble Burst: The Dysfunction of Emergent Strategy;136 5.1.2.4;6.2.4 Common Attributes of Organizational Deterioration;138 5.1.3;6.3 Operationalization of Orga