The aim of this paper is to show the trap which the explanation of earlier studies of the organizational decline have and to suggest the direction about model building to overcome it. The earlier studies have a problem. They did not clarify the causal mechanism of organizational decline. Therefore they could not show how an organization recovers from decline. Of course some studies tried to account for the causal mechanism in earlier studies. But they have a trap which made it hard to explain the organizational decline. The trap comes out when we assume that the actors in their models would be reflective. This trap makes it hard of earlier studies to explain the organizational decline. This is because the actors have time enough to reflect why the organization declines. If the actors have time enough to be reflective, the earlier studies does not show the mechanism to explain why the organization does not recover from the decline. It is the lack of the mechanism that is the trap which the earlier studies have. This paper suggests a way of approaching it. According to the way, we tried to reinterpret The Innovator's Dilemma. This reinterpretation shows you that the combination of actions of many actors made the decline.

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The purpose of this paper is to consider functions of organizational culture and of departmental culture in interdepartmental conflicts. The problem of the mechanism about generating sectionalism has argued only from the viewpoint of laws and systems conventionally. While I pay attention to the confrontational structures of Departmental Cultures which are organizational cultures that it have for every departments, and make the comparative analysis of examples of reorganization in some local governments. It follows from what has been said bellow points. In these examples, each section recognized differences of departmental cultures. In A prefecture, two cultures remained apart, and they continued to criticize each other's policies, plans and operations. In B prefecture, their officers created a new departmental culture by learning each other's policy system, law and know-how. And this new culture has promoted integration of their policies, plans and operations. These results lead to the conclusion that departmental culture is a norm of their thinking and behavior, and the factors of sectionalism or interdepartmental conflicts.

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The aim of this paper is to clarify new paradigms of Japanese bank in an age of mega competition. In Japanese bank industry has been protected by various restrictions under convoy approach. It influences in this industry, it has been assumed that (1) straight line management that doesn't value differentiation into competitor, (2) competition limited in bank industry are paradigms. However, because this approach failed, the conversion is done through necessity as for these common frames that have been shared for a long term. In this industry, the financial environment has changed greatly along with various deregulation, the managerial environment has changed (e.g., new entrant from different industry, progress of information technology and financial technology, diversification of customer needs behaviors) greatly at the same time. If these environmental changes are deliberated, those paradigms become the obstructions Japanese bank conceives the strategy. In this paper, we clarify that these paradigms that have been being shared up to now before the financial deregulation are not necessarily reasonable at the present stage. And, we derive the new paradigm related to (1) and (2) in Japanese bank industry while assuming a further change in various environments. Concretely, we look for the management of the supervisor government office subordination that has influenced (1), and examine the brittle system of leadership based on this management. Moreover, we derive a new managerial vision that aims at getting rid of this management while referring to the approach of the American bank with which it is put on a competing environment early and the strategic management is developed based on a strong leadership. Besides, we examine the progress of the competition that exceeds the industry while looking for the transition of various restrictions that influence (2), and consider strategic response of the established enterprise to them. Through these considerations, we propose a new strategic vision in an age of competition.

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There are a number of studies focusing on firms' international entry mode decisions (Joint Venture/Wholly Owned) and their effect on post entry performance. Most of these studies explain the decisions based on Transaction Cost approach. These studies argue that firms choose the most efficient entry mode based on economic rationality, and such decisions lead the firms to achieve superior performance. More specifically, according to transaction cost approach, firms should start with JV entry to accumulate local knowledge through collaboration with local partners, and then should change entry mode to WO so that they could economize the coordination cost or free-riding risk associated with JV entry. However, those prior studies based on transaction cost approach have not considered the existence of difficulties or resistance to change entry mode. This study, based on the theory of Internal Institutional Environment, focused on internal pressure not to change the entry mode. Based on the theory, this study hypothesized that the more JV experience (and the less WO experience) a firm has in a specific country, the more it may feel high uncertainty for WO entry and therefore choose the JV as a next entry mode. To test this hypothesis, this study empirically examined Japanese firms' entry into China in 1995-1996. The result showed that, by choosing WO as the next entry mode, the firms with more JV experience can achieve higher performance at local subsidiary level. However, another result showed that the firms with more JV experience had chosen JV entry again, and the firms with less JV experience had chosen WO entry. The first result regarding a post entry performance is consistent with the argument based on transaction cost approach. But second one is inconsistent with transaction cost approach, and consistent with the theory of internal institutional environment. Because of the prior regulations by Chinese government, Japanese firms had little experience of WO entry and it might make them feel high uncertainty for WO entry. These results indicate that, even if the benefit from the entry mode change from JV to WO is high, biased accumulation of JV can hinder the change of entry mode.

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This paper analyzes distinctive features of technology, skill and 'flexibility' in Toyota Production system, and tries to conceptualize 'flexibility' in industrial production. This analysis focuses on the body shop of Toyota Motor Corporation; the main reason is, though welding process has been highly automated, flexibility of labor still plays a key role for QCD (Quality, Cost, Delivery) in the shop. The welding process of Toyota had been highly automated until 1980's, with the intention of seeking the economies of scale. Since 1990's, however, further automation has been refrained in Toyota, mainly because of maturity of the market, which prompts manufacturers to seek the economies of scope; they should diversify and improve their products and to change quantities of the products drastically in short term. In other words, they should produce various products with shortened product lifecycle in order to get any rent. But this tends to cause excessive investment especially in automated welding machines and various jigs. This encourages manufacturers to rely on flexibility of labor, whereby they can change fixed cost of automated production into variable cost of flexible production. Since late 1990's, Toyota has developed GBL (Global new Body Line) to deal with various quantities of production in all domestic and foreign plants. GBL is the welding system that makes it possible to fix pressed steel parts for all sorts of products only with inner jigs (i.e. without outer jigs). By introducing this system, many workers can take part in welding process with portable spot welding machines. In order to weld various quantities of product with lower fixed cost, GBL involves flexibility of labor, on one hand. On the other, however, to effectively function such system, the company needs well-trained skilled workers. In this sense, Toyota's education and training system, which has fostered skilled intellectual workers with firm-specific skills, is an integral part of GBL. Based on this observation, the author suggests the three types of flexibility in industrial production system: they are, 'technology-oriented flexibility,' 'skill-oriented flexibility,' and 'market-oriented integral flexibility.' In Toyota production system, they shift emphasis from 'technology-oriented flexibility' to 'market-oriented integral flexibility' after achieving a certain level of automation of the process. In the matured market, automobile manufacturers ever more need to improve this type of flexibility for maintaining market competitive edges; In order to achieve this, they still need to educate and train workers with firm-specific skills based on long-term employment system.

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This study tries to explain the influence of entrepreneurial orientation and learning orientation on new product development performance and financial performance. In order to that, it empirically investigates the impact of the independent and its relative impacts on firms' performance based upon response from 116 Korea manufacturing firms. Entrepreneurial orientation consists of innovativeness and proactiveness. And, learning orientation contains commitment of learning, shared vision, and open-mindedness. Based on this empirical study, the following facts and implications are revealed: First, the empirical results show that five sub-dimensions of entrepreneurial orientation and learning orientation are related to new product development performance. Second, only three sub-dimensions out of five are positively related to financial performance. So, the relationship between two orientations and financial performance is partially supported. Third, above results are supported the previous research results supposing that entrepreneurial orientation and learning orientation are very important to improve firms' performance. Finally, two orientations tend to more heavily influence on new product development performance rather than financial performance. This is caused by the invisible characteristics of firms' orientation. More analytically, firms' orientation can create intangible benefits, such as employee motivation, smoother interaction between departments, which are very difficult to measure or capture by the "naive" measures of performance used in most of the studies. That is, new product development more reflects intangible property of firms' orientation than financial performance. Above all, the relation of between firms' orientation and firms' financial performance is moderated by the degree of new product development.

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In this paper, the hypothesis that the promotion probability to an officer between the different scale of companies in the same industry differed was set up. Analysis was tried based on this hypothesis. In order to verify this hypothesis, the rate of the internal promotion person in an officer, the number of the persons newly promoted to the officer, the period which remains in an officer's status, etc. was analyzed. From analysis of the number of employees per officer, the number of officer classes, and the number of the persons newly promoted to the officer, small-scale companies were considered that the promotion probability to an officer is high, and the hypothesis was supported. The ratio of the internal promotion person who occupies to an officer was high also on a scale of which. Moreover, from analysis of the number of the persons newly promoted to the officer, and the period which remains in an officer's status, it was suggested in the large-scale company that intense competition is performed. In the case of a small-scale company, since the promotion probability to an officer is high, an employee is expected that the incentive which works in the company is easy to be maintained, but since it can say that opposite side promotion competition is loose, skill formation in competition process may not be enough. Since the reason of heavy competition of promotion or changing officers' status in a short period seen in the large-scale company is supervised by many stakeholders, it is thought that it is difficult to remain in an officer's status for a long period of time, and it is having to leave the status in a fixed period. On the other hand, in a small-scale company, there are few surveillance persons, it is thought that it may remain for a long period of time.

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There are only a few studies about the relationship between top managers' demography and R & D spending. Using data from the electronics industry and the precision instrument industry in Japan, this study examined the relationship between demography of CEO or top management team (TMT) and firm R & D spending. After controlling for the impact of demography of other top managers, CEO demography was found to have a significant influence on R & D spending. This result suggests that CEO remains influential figure in the strategic decision-making process, although CEO has been often ignored in TMT studies. Another result shows that CEO demography had a significant impact when there is a strong demographic similarity between CEO and other top managers, while CEO had no impact when the demographic similarity decreased. This result suggests that other top managers except CEO have significant impact on strategic decision-making, although they have been ignored in CEO research. From these results, this study makes implication for both researches on TMT and CEO regarding the unit of analysis.

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