Knowledge management capabilities in R&D: a UK-Japan company comparison

This paper uses a 'knowledge-based' approach to compare the management of R &D in two leading chemicals companies, one British (ICI plc) and one Japane se. It describes key differences in the ways they integrate the 'near-marke t' knowledge of business units and the scientific knowledge and technical e xpertise of R&D personnel in central R&D facilities. It shows that the same management practices that underpin superior 'integrative capabilities' in the Japanese firm, including central funding of R&D, job-rotation and caree r structures and multidisciplinary project teams, also result in significan t R&D weaknesses. The comparison demonstrates that different organisational mechanisms are needed to support (1) the development and (2) the leveragin g of specialist knowledge within different innovation contexts. Firms must be able to strike a balance between integrative and specialist capabilities to get the most from their R&D. Moreover, the above characteristics which underpin these capabilities are often 'embedded' in the broader organisatio n making them difficult to emulate when they represent 'best-practice' but also making them difficult to change in response to new threats and opportu nities.