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Chapter 1. Dynamic View of Strategic Management

The business environment surrounding companies in the twenty-first century is changing ever more dramatically. Managers face multiple issues, including business globalization, technological innovation, the maturing of markets, price competition, and environmental problems. In industries with mature markets, the skill of business domain strategy divides winners from losers, and companies that win through enhance their relative corporate value, even in times of low growth. It has been noted that the companies achieving sustainable growth in the world markets in recent years have the following points in common.

Mitsuru Kodama

Chapter 2. Theoretical Framework of Dynamic Strategic Management Through Boundary Management

A company must actively change its own corporate governance structure and corporate boundaries and strengthen its strategic position under constantly changing environments (or new, self-created environments). Research relating to previous corporate boundaries indicates that the decision-making of the corporate governance structure and corporate boundaries relies on various elements including the transaction cost economic theory view, the capability and competence views, and identity.

Mitsuru Kodama

Chapter 3. Developing New Business Models Through Dynamic Boundary Management: Case Studies of Sony and NTT-DATA

Corporate venturing (including joint ventures) has become a key management method for strategies aimed at developing new business (e.g., Von Hippel 1997; Burgelman 1983; Block 1982; Block and MacMillan 1993; Gompers and Lerner 1999; Albrinck et al. 2001). It can be applied strategically and effectively to encourage innovation and create new capabilities as a corporate growth driver. High-tech organizations now exploit corporate venture collaboration, both inside and outside the corporations, as a common way of dealing with today’s complex business models. With ICT business, especially, close collaboration among actors from different backgrounds and industries is a crucial factor in creating new knowledge and business models. The new business ideas can be produced through the formation of organizational networks, including external partners and customers (e.g., Kodama 1999).

Mitsuru Kodama

Chapter 4. Developing New Broadband Services by Dynamic Collaboration Through Strategic Boundary Networks: A Case Study of NTT DoCoMo

This chapter looks at a case of marketing innovation in Japan’s fast-developing mobile phone business. The chapter has two key points of focus. It examines how the presence of dual networks (exploratory and exploitative) for major communications carrier NTT DoCoMo (“DoCoMo” from here on) helped to achieve a synthesis of environment creation and environment adaptive strategies and greatly expanded the mobile phone business markets. It also investigates the evolutionary process of DoCoMo’s dynamic strategic management, and analyzes the dynamism of the congruence between the environment and corporate system and among individual management elements within the corporate system achieved by DoCoMo at each innovative phase.

Mitsuru Kodama

Chapter 5. New Knowledge Creation Through Leadership-Based Strategic Community

The chapter provides new practical viewpoints in knowledge management and leadership theory of project management through an in-depth case study. It is argued that community leaders, particularly business community leaders, must recognize that a strategic community (SC) as “Small-World Structure (SWS)” comprises of diverse types of business and processes needed to achieve continuous business innovation. The community leaders serve an important function in creating a networked strategic communities (networked SWS).

Mitsuru Kodama

Chapter 6. New Theoretical Framework and Insights Derived from Comparative Case Studies

Considering innovation and organizational change in big business to date, study groups centered on Tushman, Nadler, and Romanelli 3 Closely integrated awareness and frank exchange of ideas among top and middle management teams are frequently seen among outstanding Japanese companies (e.g., Kodama 2007a).

Mitsuru Kodama

Chapter 7. Theoretical and Managerial Implications

First I would like to consider boundaries management frameworks within the framework of the dynamic view of the strategic management process (see Fig. 1.1) through the case analyses presented in Chaps. 3–6.

Mitsuru Kodama

Chapter 8. Conclusion

The essence of strategic management goes beyond companies creating appropriate future-oriented strategies while adapting to environmental change. It also involves optimizing each of the corporate system management components (organization, technology, operation, and leadership) in line with these strategies and dynamically and integratively developing them to realize corporate continuance and growth. An important issue from the implementation aspect is how companies can dynamically change corporate boundaries and adapt to the environment (or create new environments) while considering congruence with the environment. To achieve these aims, companies must determine the strategy objectives of sustainable, competitive products, services, and business models, and achieve them by implementing optimal design of vertical (value chains to realize corporate strategy objectives) and horizontal (expansion and diversification of the business domain) boundaries. In this book I have used the term “business architecture” for the optimal design of a corporate system comprising the management elements of strategy, organization, technology, operation, and leadership in order to design corporate strategy compatible with the environment, and suggested a basic theoretical framework through multiple in-depth case studies.

Mitsuru Kodama


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