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Sharp Corporation, established in 1912, has always tried to identify unique niches that its competitors do not enter, while at the same time continuing to pursue innovation and knowledge creation in those niches. The liquid crystal display (LCD) business is a typical example of Sharp's strategy and innovation. Sharp developed the first successful LCD product – a pocket calculator with a small black and white LCD in 1973 – and since then the company has released a series of unique products with LCDs, including PDAs and camcorders. In 1998, in the face of increasing competition in the traditional cathode-ray tube (CRT) TV market, Katsuhiko Machida, the company's new president and strategic leader, announced his vision of upgrading all bulky CRT televisions sold in the domestic market to flat screen LCD sets by 2005. This vision was bold, since Sharp was the first producer of color CRT TVs and its business was still profitable at the time. However, Machida as strategic leader, predicted tough price competition in the CRT business in the future and began to mobilize Sharp's employees to gain and sustain competitive advantage in the new market.

In this chapter, we analyzed the effects of internationalization on innovation, productivity, and firm performance among multinational pharmaceutical companies as representatives of a global knowledge-based industry. The empirical analysis used multiple stepwise regressions based on a sample of 149 firms headquartered in Europe and the US. The results indicate that innovation outcomes are positively correlated to the number of foreign subsidiaries (scope internationalization), whereas surprisingly, formal research and development (R&D) does not seem to directly influence innovation. This suggests that the firms benefit from local overseas subsidiaries to create and implement new innovative offerings. The number of foreign subsidiaries has a U-shaped relationship to patent productivity suggesting that firms can gain advantages by locating cost-intensive activities in low-cost countries and critical tasks in advanced market locations. Firm performance has a U-shaped relationship to sales abroad (scale internationalization) and the relationship is further enhanced by a high focus on R&D. This suggests that sales abroad enable scale economies, where R&D improves quality and relevance of products and thereby boosts performance. Finally, to validate the findings we conducted two semi-structured interviews with representative industry experts and gained further insights for an extended interpretation of results.

This chapter develops an on-going theory of coopetition management in knowledge-based industries. Coopetition is a strategy which combines simultaneously competitive and collaborative relationships. This combination permits companies to benefit from both the advantages of the competition and the advantage of collaboration. However, this strategy is also risky in case of unintended spillovers and technology plunders. Companies have to manage the coopetitive risk by implementing three principles of coopetition management: the separation principle, the integration principle, and the co-management principle.

Creative industries (CIs) constitute the most important area in the contemporary global, knowledge-based economy. These enterprises, which operate in creative sectors, represent the most innovative businesses. Such sectors generate both growth and employment. CIs were defined as the activities that have their origin in individual creativity, skill, and talent as well as open the potential for wealth and job creation by generating and taking advantage of intellectual property. The problems and challenges in CI management are solved because of the accumulated resources of knowledge and the capacity for their effective implementation. Such processes rely on a creatively talented man who takes advantage of unconventional thinking and acting patterns. However, studies covering CI functioning, from the perspective of management science and primarily the concept of knowledge management have, so far, remained few and fragmentary. In one of the author’s previous research, related to the sector of CIs, it was indicated that talents, competencies, and ideas for starting a business can bring these people together who were growing up and influenced by the same urban, academic, or artistic environments. Narrow social groups of friends or good acquaintances, who establish a creative knowledge-based organization, are mutually, strongly, and emotionally bonded. The crucial issue here is the impact exerted by motivating, communicating, or team work orientation on knowledge sharing processes. The results of the study were used to develop a business model totally oriented to knowledge used in CIs.

A new grouping of the eight schools of thought on business management is introduced. Their advancement is initially assessed with the help of a frame of reference, which is based on the principles inherent in Beer’s viable system model. It is proposed that a high degree of systemic advancement is one of the necessary attributes of any business-management concept that will be proven to be highly applicable to managing a firm’s dynamic business in practice. The first assessment reveals that the systemic advancement of the representative concepts varies a lot as follows. Porter’s chained frameworks (representing 1st Porterian school), Barney’s VRIO framework (2nd resource-based school), Sanchez and Heene’s concepts (3rd competence-based school), von Krogh et al.’s concept (4th knowledge-based school), and Hedlund’s heterarchy (5th organization-based school) are fairly systemic, respectively. Martin’s cascade (6th process-based school) is less systemic. Instead, Hamel’s revolutionary concept (7th dynamism-based school) and Brown and Eisenhardt’s competing on edge strategy (8th evolutionary school) are highly systemic. Thus, some promising ways to advance, in particular, the competence-based school of thought on business management are suggested.