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This chapter discusses the theoretical framework of the strategic knowledge creation process for realizing business innovation. It presents an explanation of the relationship between the concept of the business community that originates with the formation of “Ba” (which is required in the formulation and execution of the strategic knowledge creation process) and the strategic knowledge creation process. The chapter also analyzes and examines the theoretical framework where the holistic leadership of practitioners achieves new business innovation through the formation of a business community, which is the organizational platform for practicing strategic knowledge creation, that is, the sharing, inspiration, creation, and stockpiling of knowledge.

In particular, the chapter presents a dynamic, theoretical framework where all practitioners at every level of management demonstrate holistic leadership across a three-layered structure (three practice layers) including the formal organization layer, the informal organization layer, and the psychological boundary layer to connect elements for formulating and executing macro and micro strategies and the business community, which has its origins in the formation of “Ba,” to drive the strategic knowledge creation processes.

This chapter goes into deeper discussion and consideration of holistic leadership through the concept of holistic leadership presented in Part 1 and analysis of a number of case studies presented in Part 2. The chapter first analyzes and considers the concept of dialectical leadership, which is an element for achieving a balance between centralized leadership and distributed leadership at the psychological boundary layer located at the boundary layer between the formal organizational layer and the informal organizational layer from the perspective of four dimensions: the time axis, spatial axis, strategic axis, and management axis. This is because there is new knowledge gained from multiple case analyses and because dialectical leadership has an impact on management elements in these four dimensions when companies execute strategic knowledge creation processes to achieve business innovation. Second, the chapter discusses the concept of leadership interaction which occurs among leaders at the individual boundaries of the three-layered structure (practice layers) of the informal organization layer located in the business community, the psychological boundary layer located in the boundary layer of the business community, and the formal organization layer located in the formal organization, and the three management layers. Third, as demonstrated in the cases of Apple, Cisco Systems, Dyson, SoftBank, and Sony, strategic collaboration with other companies including customers is extremely important for those practitioners who are promoting business ecosystem strategies across different companies. To achieve this, synchronization of leadership at the three practice layers and three management layers in holistic leadership through boundary negotiations among individual leaderships across different companies is important. These concepts are discussed in this chapter. Fourth, this chapter indicates that excellent holistic leadership is necessary for practitioners to achieve strategic knowledge creation high in quality, but this requires leadership for value creation for the formation of new business communities that originate in the formation of “Ba.” The chapter also indicates that “practical wisdom” is an important element for practitioners in such value creation, and the presence of this element is a necessary condition for generating excellent holistic leadership.

As a company that has continuously achieved business innovation, Apple in the United States has successfully applied strategic knowledge creation to produce a series of products that integrate various digital devices as well as diverse contents and applications, such as the iPod, iPhone, and iPad, based on a corporate vision of a digital hub concept. At the same time, the redefining of corporate boundaries that expanded Apple’s business in a horizontal direction from the Macintosh PC business to the delivery of music, smartphones, and tablets is also an indication of the evolution of a corporate vision involving Apple’s strategic transformation. This chapter presents the strategic and creative processes that enabled practitioners, including the late Steve Jobs, to demonstrate “strategic innovation capability” by “holistic leadership” at every level of management at Apple and successfully achieve a business ecosystem strategy through “creative collaboration” across diverse boundaries within and outside the company.

This chapter discusses the importance of strategic knowledge creation where new business innovation across different technologies and industries forms dynamic business ecosystems through “co-creation and co-evolution.” To accelerate strategic knowledge creation through high-quality global strategic collaboration that intersects departments and industrial sectors internally and externally, the formation of business communities that originate with the formation of “Ba” and the holistic leadership of practitioners at every management level, which also promotes the ongoing growth of business communities are particularly important management elements.

The strategic learning perspective has attracted increased interest among strategic management scholars, yet the operationalisation of this concept is still in its infancy. The aim of this study is to develop a multidimensional understanding of the strategic learning process and to build an instrument to measure this concept.

The article confirms the validity of the developed measurement instrument with expert evaluations and quantitative data from the analysis of 206 Finnish software companies. Structural equation modelling was the primary statistical technique used.

The results of the validation study suggest that strategic learning is a multidimensional construct that is manifested through the sub‐processes of strategic knowledge creation, distribution, interpretation, and implementation. The results demonstrate that the reliability and validity of the developed measurement model is satisfactory, thus enabling its use in further studies.

Although the validation study and the use of a panel of expert judges present substantial support for the developed construct, future research is necessary to continue to examine and refine the measure in other industries and cultural contexts.

Executives and practitioners can use the developed tool to identify potential areas for improvement and thus bring focus to organisational development efforts to enhance collective strategic learning.

This study contributes to strategic management research by developing and validating a measurement method for the concept of strategic learning. To date, the empirical research of strategic learning has been mainly limited to descriptive case studies, and the literature lacks a comprehensive measurement tool.

The purpose of this paper is to examine knowledge-creating interaction in developing an innovation in a multidisciplinary research community with hermeneutic phenomenology, to understand how previous experiences and future prospects shape the process and to examine the circumstances, which support or limit knowledge creation.

The approach of this study is phenomenological and the empirical case study has been conducted using ethnography. The data consist of field notes, videos, interviews and documents of a BCDC energy consortium, developing energy weather forecast (EWF) in a new type of research environment.

The results indicate that the role of actual interactive events was crucial in the development of EWF. Hermeneutic approach illustrated that the roots of that event were in the past experiences of the participants and the circumstances, which promoted the development of the innovation, but the acknowledgment of the future prospects was crucial in finalizing the process. The role of a leader organizing the interaction and collaborative work was also substantial.

The results of this study could be used to plan and organize knowledge creation processes in organizations, especially in universities and research communities, striving to create multidisciplinary research environments and practices.

This study proposes a new approach based on hermeneutic phenomenology to examine it in a unified way, by focusing on the key aspects of elements affecting knowledge-creating interaction.

Aims to provide new practical viewpoints regarding the knowledge management and leadership theory of project management through an in‐depth case study

Argues that community leaders can develop a concept of a business community comprised of diverse types of business and processes to achieve business innovation. Studies a regional initiative in Japan towards electronic networking that illustrates the use of information and multimedia technologies as an instance of the latest business case of strategic community management.

Community leaders serve an important function in creating networked strategic communities. The case study shows how community leaders have created networked strategic communities in which the central government, regional governments, universities, hospitals, private businesses and non‐profit organizations take part in the advancement of regional electronic networking.

Provides new practical viewpoints regarding the knowledge management and leadership theory of project management.

Based on the knowledge-based theories of the MNC, this research aims to develop and test a holistic model to analyse the relationship between the strategic knowledge management (SKM) processes undertaken by subsidiaries and MNC performance. Additionally, it focuses on determining the impact that the relational context can have on knowledge creation and transfer inside the internal network of an MNC.

The research hypotheses are tested by partial least squares (PLS) with data from a sample of Spanish subsidiaries of foreign multinational firms belonging to high-technology and knowledge-intensive sectors.

The results confirm that: the implementation of a SKM by a subsidiary positively impacts on knowledge creation; the knowledge created by a subsidiary positively influences knowledge transfer, increasing the knowledge existing in the MNC; the knowledge transfer across all MNC units has a positive impact on MNC performance; the subsidiary’s relational context arises as a mediating variable between the knowledge created by a subsidiary and its transfer to the rest of the MNC.

The research proposes a holistic model that contemplates the joint interaction of the variables knowledge creation, knowledge transfer and performance. In addition, the proposed model contemplates the variable SMK of the subsidiary as the beginning of the knowledge creation-knowledge transfer-performance process. Finally, the mediating role of the relational context in the relationship between knowledge creation and transfer is analysed.

The purpose of this study is to gain a better understanding of the factors that influence the innovative power of organisations. The concept of innovation and innovative power was examined by analysing the relationship between the construct of the learning organisation, knowledge organisation and innovative organisation, and has resulted in an innovation process model. This model consists of three processes: knowledge creation, innovation and learning to learn. The factors that might influence this cycle are: added value for stakeholders, leadership, climate, structure and strategic alignment.

This is an exploratory study that was conducted at Océ Technologies in The Netherlands.The case study consisted of a qualitative and a quantitative stage and comprised a selection of two innovation projects separated in time. The purpose of the first phase was to collect information about the innovation spiral, through interviews with members of three divisions in each innovation process. After this, a survey was designed and sent to all employees and managers of the three divisions involved in the two innovation cases.

On the basis of a data analysis, factors explaining variance in terms of innovation, learning and knowledge creation were identified. If innovation is discontinuous, the innovation spiral is not valid; if innovation has a strength in critical reflection on cases from the past to mould the future, the model has some explanatory power.

Using a survey technique to retrieve data from a current innovation experiment has a set of possible risks like maturation, forgetting, selection and a different context. Reflection and reconstruction, however, are the only possible means to achieve this. A case study does not guarantee generalisation of results.

By studying the model and the factors that can influence them, organisations understand that it is necessary to integrate their initiatives in organisational learning, knowledge creation and innovation for the benefit of the organisation, to find a better way to adjust to discontinuous change and finally gain innovative power.

Bearing in mind reviews of the existing corporate management leadership theory, this chapter presents a theoretical framework of holistic leadership for top and middle management as well as the staff for strategically promoting knowledge creation activities in companies in industries with rapidly changing competitive environments. “Holistic leadership” here refers to leadership with characteristics that allow for the coexistence of centralized leadership, distributed leadership, and dialectical leadership and their dynamic application according to circumstances by practitioners at each management level (top management, middle management, and staff) of the three practice layers, that is, the formal organizational layer, the psychological boundary layer, and the informal organizational layer. This new theoretical concept of leadership has been derived a posteriori from existing theory and cumulative fieldwork by the author to date.