Emerald Publishing Limited
Copyright © 2017 Emerald Publishing Limited
Half Title Page
DEVELOPING HOLISTIC LEADERSHIP: A SOURCE OF BUSINESS INNOVATION
DEVELOPING HOLISTIC LEADERSHIP: A SOURCE OF BUSINESS INNOVATION
Nihon University, Tokyo, Japan
United Kingdom – North America – Japan – India – Malaysia – China
Emerald Publishing Limited
Howard House, Wagon Lane, Bingley BD16 1WA, UK
First edition 2017
Copyright © 2017 Emerald Publishing Limited
Reprints and permissions service
No part of this book may be reproduced, stored in a retrieval system, transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without either the prior written permission of the publisher or a licence permitting restricted copying issued in the UK by The Copyright Licensing Agency and in the USA by The Copyright Clearance Center. Any opinions expressed in the chapters are those of the authors. Whilst Emerald makes every effort to ensure the quality and accuracy of its content, Emerald makes no representation implied or otherwise, as to the chapters’ suitability and application and disclaims any warranties, express or implied, to their use.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
ISBN: 978-1-78714-422-4 (Print)
ISBN: 978-1-78714-421-7 (Online)
ISBN: 978-1-78714-759-1 (Epub)
List of Figures
|Figure 1.1||Business Innovation through Holistic Leadership.||6|
|Figure 2.1||Platform for Strategic Knowledge Creation Activities – 3 Practice Layers.||17|
|Figure 2.2||Strategic Knowledge Creation Process Platform.||19|
|Figure 3.1||Holistic Leadership across the Three Practice Layers.||57|
|Figure 3.2||Holistic Leadership – Theoretical Framework.||60|
|Figure 3.3||Holistic Leadership and Leadership Interaction.||75|
|Figure 4.1||Capability Map.||85|
|Figure 4.2||Leadership Map.||92|
|Figure 4.3||Strategic Innovation System||93|
|Figure 4.4||Multilayered Networks of Business Communities (BCs) Centered on Apple and Knowledge Integration||100|
|Figure 4.5||Holistic Leadership of New Product Development at Apple.||101|
|Figure 4.6||The Morphology of “Ba” and Business Communities at Three Levels of Boundaries||110|
|Figure 4.7||Apple as a Network Collaboration Organization.||122|
|Figure 4.8||“Integrative Capability” through Boundary Networks at Apple.||133|
|Figure 4.9||“External Integrative Capability” through Boundary Networks Outside Apple.||137|
|Figure 4.10||Linkages with the Continuous Change Loop and Incremental Change Loop at Apple.||139|
|Figure 5.1||Cisco’s Eight Cultures (Japanese Version)||149|
|Figure 5.2||Congruence and Integration for Collaborative Management at Cisco.||151|
|Figure 5.3||Networked Collaborative Organization at Cisco.||155|
|Figure 5.4||Holistic Leadership for Collaborative Management at Cisco.||158|
|Figure 5.5||Dynamic View of the Strategic Management Process at Cisco.||168|
|Figure 6.1||Holistic Leadership in New Product Development at Dyson.||179|
|Figure 6.2||RDD (Research, Design, and Development) at Dyson – Promotion of New Knowledge Creation Based on Three “Ba” Elements||185|
|Figure 6.3||Characteristics of Dyson’s Organizational Morphology and Corporate Activities.||187|
|Figure 6.4||Organizational Relationships and Business Characteristics in Product Development, etc.||190|
|Figure 7.1||SoftBank’s Holistic Leadership Realizing an Autonomous, Decentralized, Collaborative Synergy Group.||200|
|Figure 7.2||Triad Model of the SoftBank Organization – Integration of Spirit, Techniques, and Strength.||210|
|Figure 7.3||Dynamic Fractal Organization of SoftBank – Triad Model of Leadership.||214|
|Figure 8.1||Holistic Leadership in Sony and SCE.||219|
|Figure 8.2||PlayStation Business of the Community Networks.||222|
|Figure 8.3||Holistic Leadership of SEC (Mainly the Middle Layer).||228|
|Figure 8.4||Collaborative Innovation through Holistic Leadership.||230|
|Figure 9.1||Dialectical Leadership at the Psychological Boundary Layer.||237|
|Figure 9.2||Organizational Structure that Balances Time Paradoxes.||243|
|Figure 9.3||Community Networks that Balance Space Paradoxes.||246|
|Figure 9.4||Dialectical Leadership Structure at the Middle Management Layer.||249|
|Figure 9.5||Leadership Interaction across the Three Management Layers and Three Practice Layers.||254|
|Figure 9.6||Leadership Structure in a Community Formed by Plural Companies.||256|
|Figure 9.7||Establishment of a Value Platform.||264|
|Figure 9.8||Holistic Leadership Based on Practical Wisdom.||274|
List of Tables
|Table 2.1||View of Macro Strategy and Micro Strategy.||26|
|Table 3.1||Strategy View and Organization View in the Formal Organization and Business Community.||56|
I would like to express my sincerest gratitude for the guidance and support I have received in writing this book.
Firstly, I would like to thank all the practitioners who gave their time in discussions. I also would like to extend my gratitude to NTT DOCOMO, President and CEO Kazuhiro Yoshizawa, Senior Executive Vice President Hiroyasu Asami, and Executive Vice President Kiyohiro Omatsuzawa for the financial support I received for this research. I would also like to express my gratitude for Nihon University’s College of Commerce.
Lastly, I would like to express my deepest thanks to Mr. Pete Baker, Editorial Director and Head of Business, Finance and Economics Books and Ms. Fiona Mattison, Editorial Assistant, Emerald Publishing, for all of their support and efforts.
About the Author
Mitsuru Kodama is Professor of Innovation and Technology Management in the College of Commerce and Graduate School of Business Administration at Nihon University. His research has been published in international journals such as Long Range Planning, Organization Studies, Journal of Management Studies, Technovation, R&D Management and Information Systems Management, among others. He also has published 11 books in English such as Collaborative Innovation (Routledge, 2015), Winning through Boundaries Innovation (Peter Lang, 2014), Competing through ICT Capability (Palgrave Macmillan, 2012), Knowledge Integration Dynamics (World Scientific, 2011), Boundary Management (Springer, 2009), Knowledge Innovation (Edward Elgar, 2007), among others.
Preface – Age of Strategic Knowledge Creation and Leadership
A host of innovations including the rapid extension of ICT and environmentally friendly systems are accelerating changes in industry, the economy, society, and other fields at a dizzying pace. ICT is interactively networking people all over the world and is continuing to develop as a platform that enables the transmission, sharing, inspiration, creation, and stockpiling of information and knowledge that people have. At the same time, environmentally friendly systems are becoming vital infrastructure as core technology in recycling-oriented social and economic systems. Amid these changes, a new business model based on an ICT platform has emerged. Represented by innovative products such as U.S. Apple’s iPhone and iPad and the advent of new systems of technology including smart grid frameworks and electric cars aimed at realizing a recycling-oriented society and economy, this model transcends different technologies and industries and significantly diverges from the strategic model that focused on competition among firms within the conventional business world.
Underlying this new business model that traverses new developments in technology and different industries through the integration of different technologies including ICT in recent years is the phenomenon of “convergence,” and this phenomenon is making conventional competition among corporations more complex. Convergence is accelerating strategic partnerships including their customers, joint ventures, strategic outsourcing, and M&A among companies at a rapid pace and is becoming a dynamic force with the potential to significantly change existing corporate boundaries.
Therefore, strategic collaboration based on partnerships among different industrial sectors, which transcends the business axes of ordinary cross-industrial competition, is becoming increasingly important as a core driver of corporate strategies. In other words, the transition from a strategy that focused on competition among companies in an industry or competition among different business sectors to strategic collaboration with various industries (companies) including their customers is becoming an urgent need for today’s innovation companies.
At the same time, in recent years strategic collaboration with partners throughout the world and leadership for executing strategic collaboration are becoming pressing issues for companies promoting business on a world scale including emerging countries. In knowledge economies of the 21st century, values regarding the way individuals live and work are also changing significantly and at the same time the existence and view of “communities” such as corporate organizations and nonprofit organizations, which are the collective bodies of individuals, are also changing.
Following the rapid extension of ICT in corporate organizations in particular, companies are actively adopting methods of knowledge management aimed at the accumulation and utilization of knowledge of individuals and knowledge inside and outside the company. As a result, corporate transformation and business innovation are progressing at a global level. Nevertheless, it is important to bear in mind that even if a company adopts ICT and undertakes the transformation of its business, the most vital element in initiating strategic behavior in a company is business innovation based on the values of individuals and the knowledge and core competence accumulated in individuals.
Moreover, to promote ICT business or recycling-oriented business that intersects different industries as described above, a company must strategically adopt knowledge and core competence that it does not possess within its own company. It also requires leadership capable of generating ongoing business innovation through strategic collaboration that places importance on relationships with other partners.
Therefore, practitioners (employees of all management levels including top management) must strategically form business communities that start with the formation of diverse “Ba” with internal and external partners including customers to build organizational platforms for promoting strategic collaboration. Moreover, in addition to promoting innovation in its own core competence, a company must endeavor to absorb the core competence of superior external partners as well as promote integration and consolidation of core competence within the company. 1 The strategic behavior of practitioners, who include corporate leaders, managers, and all staff, in forming business communities that originate with the formation of “Ba” ultimately leads to the ongoing creation of new values in customers.
Dense strategic collaboration through the formation of such business communities promotes strategic knowledge creation processes among various organizations within and outside the company. The formation of business communities within the company is an element that enhances the company’s organizational competence, and at the same time the formation of business communities among companies including customers can become the trigger for creating synergies in the mutual core competencies of companies. 2
The fundamental aim of strategic collaboration based on partnerships with companies in different industries is to promote cocreation and coevolution through the formation of business communities. “Cocreation” means creating new business, new economies, and new societies together with customers and partners, while coevolution is rooted in the concept of not only developing business communities together with customers and partners, but also bringing about the development of broader economic communities and social communities.
Essentially, the most important task for a company in promoting strategic collaborations is to determine how to form business communities that will generate cocreation and coevolution inside and outside the company including with customers. To achieve that, it is essential that all practitioners demonstrate leadership that will result in the formation of business communities as an extension of the formation of diverse “Ba” within and outside the company and, simultaneously, acquire leadership that transcends the conventional narrow view of competition, that is, a strategic view of a competitive strategy within the industry or competition across sectors of the industry, to focus on strategic collaboration with diverse partners and customers throughout the world.
In other words, in today’s world there is a strong demand for the kind of leadership that facilitates strategic knowledge creation through strategic collaboration across and within corporations as strategic collaboration among companies accelerates at a global level. This book presents in-depth case studies of hi-tech companies and their approaches to new strategic knowledge creation through the formation of business communities and offers a new perception of existing leadership theory through the concept of holistic leadership as a new theoretical concept.
The author calls companies that integrate superior knowledge at a global level “knowledge integration firms.” For details, see Kodama (2009b).
The author calls innovation systems that integrate this kind of diverse core knowledge within and outside the company “hybrid innovation” (which is an intermediary form of closed innovation and open innovation, and is equivalent to half-open innovation).
- Part I Strategic Knowledge Creation and Theoretical Framework of Holistic Leadership
- Chapter 1 Business Innovation through Strategic Knowledge Creation
- Chapter 2 Strategic Knowledge Creation Process through Holistic Leadership
- Chapter 3 Theoretical Framework of Holistic Leadership
- Part II In-Depth Case Studies
- Chapter 4 Strategy Transformation Based on Holistic Leadership: A Case Study of Apple
- Chapter 5 Collective Management Based on Holistic Leadership: A Case Study of Cisco Systems
- Chapter 6 Unique New Product Innovation Based on Holistic Leadership: A Case Study of Dyson
- Chapter 7 Corporate Innovation Based on Holistic Leadership: A Case Study of SoftBank
- Chapter 8 Corporate Venture Business Based on Holistic Leadership: A Case Study of Sony
- Part III Conclusion
- Chapter 9 Value Creation through Holistic Leadership
- Chapter 10 Conclusion and Implications