Nihon Kotsu Co., Ltd was one of the largest companies in the taxi industry in Japan. In the 1990s, its performance was lower and the company faced a serious crisis with huge debts. However, after the organizational change carried out by Ichiro Kawanabe (chairman, third generation of founders) in 2000, the performance of Nihon Kotsu recovered and increased. How and why Nihon Kotsu was successful with its V-shaped turnaround?
The aim of this paper is to analyze entrepreneurial behavior of Ichiro Kawanabe and the organizational change process led by him. In this analysis, the author incorporates the knowledge of the organizational identity theory to the organizational change process theory.
In summary of this case study, first, Kawanabe developed a high-quality taxi service selected by customers. Second, he increased the motivation of taxi drivers and changed their career views. Motivated taxi drivers themselves increased the quality of taxi service and tried to develop new services. Through these, Nihon Kotsu made it possible to differentiate their services on the taxi market, which were regarded difficult to differentiate.
In theory, this paper suggests the following mechanism. At the implementation stage of the organizational change process, employees are motivted to change their identity by recognizing themselves through feedback from customers and colleagues. Furthermore, empowerment and assignment of responsibility to employees will encourage employees’ business improvement behavior to go beyond the assumption of top management. The V-shaped turnaround of the performance of Nihon Kotsu was brought about by this mechanism which was activated by organizational change led by Kawanabe.
抄録全体を表示