| Abstract: | Increasingly, the long‐term success of a company resides in its ability to develop and market successful new products in a cost‐and time‐effective manner. In general, Japanese companies have outperformed their Western counterparts in bringing new products to market over the last 10 to 20 years. This has given them a substantial advantage in long‐term economic development. The authors hypothesize that the differences between the dominant models of corporate culture in Japan and the U.S. account for the Japanese advantage. In comparison to U.S. companies, Japanese companies tend to emphasize long‐term leadership, decentralized decision making, a flatter work structure using cross‐functional work teams, and rewarding teams for the ability to learn from mistakes. As a result of these differences, Western companies are more likely to utilize “single, loop” learning, where new products are developed using established (and unquestioned) procedures. Conversely, Japanese companies rely on “double‐loop” or “deutero” learning styles, which encourage employees to leverage their past experiences when proposing new product innovations. The authors conclude by outlining a research program for testing their as‐gumptions about the relations among nationality, corporate culture, learning styles, and new product success. |
