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Sustainable Growth Through Strategic Innovation

Driving Congruence in Capabilities

Mitsuru Kodama

From detailed reviews of existing dynamic capabilities, this book presents a theoretical model of a strategic innovation system as a corporate system capability to enable a large company to achieve strategic innovation. The book includes in-depth case studies to illustrate the importance of strategic innovation capabilities.
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Index

Driving Congruence in Capabilities

Mitsuru Kodama

Abernathy, W.J. 179
acceleration 911, 15, 46, 49
Ackoff, R.L. 220
adaption dynamic capability 205208, 213214, 219, 221222
Allen, T.J. 47, 52
Amabile, T. 47
Amburgey, T. 17, 47, 49
Apple 2, 24, 36, 43, 70, 7778, 103128, 148, 163, 166167, 173174, 201202, 207, 210, 212213, 217, 221, 223
Apple New Product Process 112
asset orchestration 6, 1216, 2627, 3334, 3940, 45, 4849, 5661, 6667, 73, 76, 80, 82, 8889, 91, 97, 103107, 109, 111, 116117, 119, 123128, 133, 141, 144146, 151155, 160162, 164, 167, 171, 176, 182183, 185187, 191, 193, 195196, 200, 215, 217, 223
Barney, J. 5, 60, 186, 211
Bechky, B.A. 115
Birkinshaw, J. 207
blue ocean strategies 45
boundaries congruence 59, 201, 211, 213, 222223
boundaries management 201
boundaries vision 26, 48, 65, 195196, 215217, 222
boundary network 27, 3234, 3940, 71, 103, 105106, 114120, 126, 128
breakthrough innovation 2, 11, 13
breakthrough innovation capability 910, 15, 50
Brown, J.S. 27, 50, 52, 115
Buckman, R. 31
Burgelman, R.A. 50
Burns, T.E. 55
Canon 64, 69, 7980, 149, 179
capabilities abrasion 81, 94, 97, 99101, 166167, 171
capabilities congruence 6, 5458, 6063, 66, 78, 8183, 8586, 89, 94, 97, 99101, 103, 109, 122, 124, 128, 130, 134, 142, 145, 166, 172173, 176, 178, 187, 190, 193, 195, 199201, 217, 223
capabilities friction 97, 99, 101
capabilities lifecycles 17, 3639, 4447, 52, 71, 207211
Capabilities Map 1, 56, 911, 1719, 2123, 38, 4445, 52, 54, 62, 69, 72, 74, 76, 9192, 9495, 97, 100101, 171, 195197, 199, 205, 207, 218, 223
capability opportunities 10, 17, 39, 41, 4345, 47, 51, 89, 210
Carlile, P. 2829, 30, 76
centralized leadership 17, 9294, 122123, 127128, 137
chain-linked model 45, 47
Chambers, J. 132133, 135, 138, 145
Chandler, A.D. 55, 99
Chesbrough, H. 12, 27, 87, 216
Christensen, C.M. 2, 4, 12, 23, 48, 50, 109, 114, 166, 173, 221
Clark, K.B. 179, 198, 221
collaboration management 130131, 134, 140, 143, 145
collectivities of practice (Col.oP) 25, 2931, 36, 43, 52, 9293, 99
Collins, J. 6, 22, 25, 29, 55, 6667, 157, 172
common ground 106, 115, 117
common interests 106, 115, 117, 171
communities of practice (CoP) 25, 27, 30, 36, 43, 9294, 99, 183, 190, 192
competency trap 109, 166, 168170, 220
Cook, Tim 112, 125
core rigidities 109, 166, 168170, 174176, 220
corporate boundaries 7, 10, 1314, 26, 5657, 65, 8182, 8486, 89, 103, 178, 185, 193, 199, 201204, 211, 214, 216
corporate governance 82, 146, 156, 158159, 162, 201
corporate strategy 23, 6668, 82, 85, 158160, 202
corporate systems 16, 5463, 6668, 8283, 8590, 101, 109, 124128, 142, 144, 161, 185, 187188, 195, 199201, 203204, 211, 213215, 218, 221223
co-specialization 13, 40, 64, 66, 6870, 78, 82, 98, 104, 109, 111, 125, 132133, 167
creative abrasion 32, 50, 115, 167
creative accumulation 219222
creative destruction 218222
cross innovation 48
cross-functional teams (CFT) 72, 74, 76, 98, 161
Cusmano, M.A. 68
customers as innovators 105
D’Aveni, R.A. 6
Danneels, E. 6
Dewar, R. 23
dialectical dialogue 97
dialectical management 5051
digital hub 103, 105
discontinuous innovation 2
discovery 911, 47, 49, 104, 219, 222
disruptive innovation 2, 152
distributed leadership 9294, 122123, 127128, 138, 140, 144
Dixon, S. 205, 207208, 211
doing the right things 6, 10, 12, 1415, 150, 190
Dougherty, D. 52, 59, 220
Drucker, P.F. 222
dual-purpose 196197, 199
Duguid, P. 27, 52
Dutton, R. 23
dynamic capabilities cycle 205, 211, 213
dynamic strategic management 54, 56, 59, 61, 199201, 204, 206, 211, 215, 221222
dynamic view of capabilities 19, 37, 45, 48, 209
dynamic view of strategy 1, 4, 218
ecosystem strategies 6, 65
Edsel 222
Eisenhardt, K.M. 79, 52, 63, 84, 87, 133, 202
Ettlie, E. 23
evolutionary fitness 57, 109, 200
executive team (ET) 106, 112, 118, 126127, 158160
exploitation 23, 8, 1516, 19, 21, 4546, 48, 5052, 95, 97, 99, 101, 117, 150, 154, 157, 160, 164165, 172, 205208, 214, 216, 218219, 221222
exploitation SC 152155
exploration 23, 8, 11, 13, 19, 21, 4546, 48, 5052, 91, 95, 97, 99, 101, 117, 150, 153154, 157, 160, 164165, 172, 205208, 214, 216, 218219, 221222
exploration SC 152155
external and internal congruence in capabilities 16, 46, 9697, 195
external and internal fit 55
Floyd, S. 18
Ford 222
four specific factors 195, 217
Fujifilm 146153, 155156, 159160, 164, 201, 207, 209210, 212213, 217, 221, 223
Fujitsu 166, 168, 212
Ghoshal, S. 12, 15, 60, 185
Govindarajan, V. 4, 50
GPS 169
Grant, R.M. 224
Grove, A.S. 172
Hagel III, J. 50, 115
Hamel, G. 213, 218220
Hargadon, A. 2
Helfat, C.E. 6, 17, 2223, 33, 3739, 4245, 47, 5758, 66, 7071, 96, 109, 111, 132, 134, 184, 195200, 207211, 216
Heller, T. 4, 50
Henderson, R. 2, 221
higher-order capabilities 22, 25
high-level routines 24, 133
high-velocity markets 67
Hill, C. 50
human capital 38
hybrid innovation 27, 69, 87, 216
hypercompetition 6
IBM 2324
IDM 180184, 187188, 191193
i-mode 8990, 9699, 101, 167171, 173176
incremental innovation 14, 10, 12, 1621, 23, 33, 4043, 45, 48, 5152, 62, 92, 117, 125, 130, 135, 140, 142, 170, 206207, 213, 218, 220221, 223
incubation 9, 11, 1314, 20
innovation dynamic capability 205208, 210211, 213214, 219, 221222
innovators dilemma 109, 114, 166, 173
intangible assets 1214, 2627, 33, 4243, 60, 6268, 70, 76, 7879, 81, 83, 8587, 91, 104106, 109, 111, 123125, 128, 131, 133, 140141, 143, 145, 171, 195, 210, 215217, 222
integrated capabilities 197199
integrated organization 4041, 101, 178, 183
Intel 23, 68, 70, 172, 177178, 193
Isaacson, W. 110, 116, 124
issue-driven community 31
Jantsch, E. 2930
Japanese semiconductor manufacturers 177178, 188, 190, 194
Johansson, F. 48, 116, 220
J-PHONE 168169
Kambil, A. 109, 166, 220
Kanter, R. 50, 115
Katz, R. 47, 105
Kim, W.C. 45
King, A. 8, 17, 47
Klepper, S. 221
Kline, S.J. 45, 47, 141
knowledge boundaries 28, 3032, 36, 52, 59, 87, 106, 113, 115119, 142, 179, 192, 201
Kodak 4142, 146151, 155157, 159, 165
Kodama, M. 34, 1315, 17, 23, 2527, 30, 3537, 40, 4748, 50, 53, 5556, 63, 68, 7176, 84, 87, 93, 97, 99, 101102, 115117, 123, 129, 131132, 137138, 141, 145, 155, 157, 160161, 163, 171, 178179, 189, 191, 201202, 205, 207, 212, 216217, 222
Kogut, B. 18, 71
Kutaragi, Ken 96, 108
Lashinsky, A. 110, 114, 122, 124
Lave, J. 27
Lawrence, P. 55, 76
leader teams (LT) 41, 6465, 69, 80, 8790
leadership capabilities 41, 5961, 63, 65, 67, 69, 78, 8081, 83, 8590, 9394, 99, 115, 117, 122123, 125127, 136, 138, 140, 143144, 188, 200, 215
learning before doing 7, 10
learning by doing 7, 10
Leifer, R. 23, 11
Leonard-Barton, D. 5, 50, 109, 115, 166, 175
Levitt, B. 109, 166, 220
Lindkvist, L. 25, 52
loosely coupled organizations 183184
Lorsch, J. 55, 76
M&A strategies 82, 130134, 140143, 145
Maccoby, M. 123
major innovation (MI) 810
Malerba, F. 221
March, J. 3, 8, 48, 109, 166, 205, 216, 220
Mark I regime 218219, 221222
Mark II regime 219, 221222
market-access capability 197
Markides, C. 34, 17, 47, 59
Martines, L. 109, 166, 220
mental model 28, 3132, 48, 52, 55, 59, 113, 220
MI dynamic capability 811, 50
Microsoft 68, 70, 108, 197, 202
Miles, R.E. 55, 66
Miller, D. 157, 216
Mintzberg, H. 212
MP3 108
multiple-variant capabilities 196197, 199
Nadler, D. 52, 55
near decomposability 76
Nelson, R. 8, 17, 49, 220
networked collaborative organization (NCO) 106, 117120, 126127, 130, 133135, 138, 143145, 163
networked modular organizations 177, 181182, 184188, 191193
next-generation competition 6
Nisbett, R. 52
Nonaka, I. 47, 139, 155, 161, 205, 224
non-routine 2425, 27, 33, 42, 4849, 59, 71, 7577, 91, 107, 109111, 114115, 118, 120121, 126, 132133, 135137, 140, 143, 159160, 163, 165, 171, 184, 209, 223
Nooteboom, B. 222
NTT DOCOMO 25, 41, 7175, 78, 85, 8990, 9699, 101, 166169, 171, 173176, 201, 207, 210, 213, 221, 223
O’Connor, G.C. 2, 811, 1315, 46, 49
O’Reilly III, C. 34, 48, 50, 55, 6667, 71, 158, 199
only the paranoid survive 172
open innovation 12, 27, 87, 93, 177178, 185187, 193, 216217
open innovation platform (OIP) 186
operational capabilities 22, 5961, 6367, 69, 7879, 81, 83, 8586, 88, 90, 93, 120123, 126127, 134137, 140, 143144, 196, 205, 215
organizational boundaries 2527, 31, 34, 84, 87, 202, 215
Orr, J. 27
Osterlof, M. 157
P&G 197
Panasonic 35, 166, 179, 188
path-dependent 2, 5, 12, 17, 21, 31, 94, 170
PDA 175
Penrose, E.T. 5
peripheral vision 48, 65
Peteraf, M.A. 17, 3739, 4243, 45, 47, 71, 207211, 216
Peters, T. 157
Pfeffer, J. 28, 158
Pisano, G.P. 5, 7, 84, 202
platform leaders 68, 70
PlayStation 23, 45, 85, 8788, 96, 108, 210
Porter, M. 5, 64, 211
pragmatic boundaries 3033, 3637, 49, 72, 74
Prahalad, C.K. 220
productive friction 32, 50, 115, 167
productivity dilemma 179
project organizations 3132, 52, 98, 107
Qualcomm 70, 177178, 180181, 182186, 188, 191, 193194, 201202, 207, 210, 213, 221, 223
R&D 100 Award 71, 73, 102
radical innovation 46, 4952, 56, 92, 95, 101, 117, 123, 125126, 130, 135, 140142, 170, 206207, 210, 215, 218223
Raynor, M. 215
recombination 37, 3944, 7071, 208210
redeployment 3744, 57, 70, 208210
Renesas 177, 188, 193
renewal 5, 3739, 41, 4344, 89, 208210, 212
replication 3744, 7071, 208210
retirement 3739, 41, 44, 46, 208209
retrenchment 3739, 41, 44, 46, 208209
Richardson, G.B. 5
Roberts, J. 52
Robin, Jeffrey 105106
Romanelli, R. 47
Rosenbloom, N. 216, 221
Rumelt, R. 5, 16, 60
Sanchez, R. 182
SC Triad Model 146, 152155, 164, 213
Schilke, O. 6
Schilling, M.A. 183
Schumpeter, J. 218219, 221222
seizing 5, 7, 911, 1315, 38, 5961, 6667, 9193, 95, 99, 106, 111, 117, 119, 133, 136, 156, 200, 206208, 212, 214, 217
selection events 3839, 4445, 47, 210
semantic boundaries 2933, 36
sensing 5, 7, 911, 2627, 38, 5961, 6667, 78, 9193, 99, 104, 106, 110111, 113, 115118, 133, 136, 156, 160, 170, 173174, 176, 200, 206208, 212, 214215, 222
Shannon, C. 2930
Sharp 166, 168169, 178
Siggelkow, N. 55
signature processes 10, 12, 1416, 49, 6061, 63, 66, 81, 111, 125, 133, 135, 143, 185186, 189191
Simon, H.A. 76
Snow, C.C. 55, 66
social capital 38
soft dialectics 35
SoftBank 166, 174, 176, 201, 207, 210, 213, 221, 223
Son, Masayoshi 174176
Sony 23, 45, 70, 78, 85, 8788, 96, 103, 107109, 128, 202, 210, 212
Sony Music 96, 108, 128
Spender, J.C. 48, 52
Stalker, G.M. 55
Starbucks 23
strategic communities (SC) 25, 30, 32, 53, 72, 75, 77, 103, 105, 107, 114, 116, 119, 126, 128, 135, 137, 143, 146, 152, 157158, 164165, 167, 171, 190, 201, 223224
strategic community-based firm 146, 158, 161165
strategic concentration 10, 15, 17, 4647, 51
strategic contradiction 50
strategic efficiency 10, 17, 4647, 51
strategic emergence 10, 1214, 4546, 49, 51
strategic fit 55, 64, 66, 82
strategic innovation 1, 35, 89, 1113, 15, 1719, 22, 24, 4552, 54, 56, 77, 87, 9192, 95, 97, 101, 103, 111, 117, 128, 130, 141, 145, 166167, 177, 184, 195, 201208, 210211, 213215, 218219, 221224
strategic innovation capabilities (SIC) 19, 22, 45, 48, 5052, 54, 56, 77, 92, 95, 97, 101, 111, 117, 166, 177, 184, 195, 205208, 210, 213215, 218, 223224
strategic innovation loops 45, 4852, 77, 206208, 210, 224
strategic non-routine activities 25, 33, 42, 44, 49, 59, 7577, 109, 114, 118, 121, 126, 132133, 135137, 140, 143144, 184, 209, 223
strategic selection 10, 1416, 51
strategic synergies 69, 71, 84, 131
strategy transformation 4243, 85, 87, 8990, 95, 99, 101, 103104, 109, 146, 166, 172, 209210
Sull, D. 7
sustainable growth 1, 45, 7, 1719, 21, 24, 52, 5456, 62, 95, 101, 111, 130131, 133, 141, 156, 159, 195, 207, 212, 218, 221, 223224
sustainable strategic innovation model 195, 201, 203204, 210211, 214, 218219, 221
sustaining innovation 23
syntactic boundaries 2930, 33
synthesis SC 153155
tacit knowledge 47, 113, 189190
teams of boundaries (ToB) 25, 2930, 3233, 36, 43, 7980, 9293, 9899, 181, 190, 192
technologies synergies 131
technology capabilities 5961, 63, 65, 67, 69, 78, 81, 83, 8586, 88, 90, 93, 104105, 107, 111, 116, 119, 126127, 130131, 133134, 142, 144, 215
Teece, D.J. 412, 1617, 20, 24, 5557, 60, 62, 64, 6668, 7578, 82, 85, 91, 9596, 99, 110111, 132133, 150151, 156, 159, 185186, 189191, 193, 205, 211
Thompson, J.D. 28
thought worlds 28, 3536, 52, 59, 113, 220
Toshiba 23, 188
total quality management (TQM) 29
Toyota production system 189
transformational experience 47
transforming 2, 5, 911, 1315, 38, 5961, 6667, 76, 9193, 99, 111, 136, 156, 200, 206208, 212, 214
triad model 146, 152, 154155, 164, 213
trial-and-error 89, 1314, 16, 18, 78, 87, 110, 142
TSMC 177178, 181188, 191, 193194, 201202, 207, 210, 213, 221, 223
Tucci, L. 8, 17, 47
Tushman, M.L. 34, 17, 4748, 50, 52, 55, 6667, 71, 199, 216
unproductive paranoia 170171, 173, 176
user innovations 65, 105
Utterback, J. 126, 221
Uzzi, B. 184
valley of death 14, 39, 155, 198, 210
vertically integrated organizations 178, 183
Vogel, S. 157
VRIN resources 6062, 186
Walkman 103
Walmart 23, 157
Weaver, W. 2930
Weick, K.E. 183, 220
Wenger, E. 25, 27
Wernerfelt, B. 5, 211
willpower 10, 1516
Winter, S.G. 6, 8, 17, 2223, 33, 42, 4849, 62, 186, 195199, 209, 220
Zollo, M. 22, 48