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Based on a detailed case study of a Japanese venture firm, this study suggests that the unconscious routines practiced by entrepreneurs in innovation processes are critical. Research on organizational routines has asserted the following two points. First, when existing routines become proficient distant searches of new fields become difficult (Levitt & March, 1988; March, 1991) (the exploration problem). Second, existing routines tend to be lost during distant searches as they are impossible to combine with the outcomes of the distant searches to make new routines (Gavetti & Levinthal, 2000; Levinthal & Rerup, 2006) (the fusion problem). Nevertheless, Takao Kimura and Kimura Information Technology Co., Ltd. (KIT), discussed in this study, have succeeded in overcoming such problems to create a business with a competitive advantage. Our analysis of this process shows that if the existing routines are so proficient that they are practiced unconsciously, (1) it can help distant searches, and (2) the outcomes of the distant searches can be combined with existing routines.

In recent years, we have been observing a rise in cases of continuous development projects. However, if we try to improve development productivity using the data and development knowhow that we have accumulated, it then becomes difficult to use this to expand product functions. In fact, a “development productivity dilemma” actually exists, in which it is difficult for each product to have both improved development productivity and expanded product functions. In the case discussed in this paper, however, the company sacrifices development productivity to expand the product functions of a particular product and then applies this to streamlining and simplifying subsequent products. In other words, the development productivity dilemma was overcome by managing the flow of a series of new products.

We analyze the smartphone usage behavior of individuals against the background of the spread of the coronavirus disease (COVID-19) to classify usage behaviors and examine the factors that lead to change. Specifically, we examine the differences in smartphone usage between the first wave and the second wave of the epidemic in Japan. On average, the frequency of use increased, especially during the first wave of the epidemic. Next, we classify the changes in usage behavior and examine the differences between individuals whose smartphone usage time increased and those whose usage time decreased. Our analysis using personal characteristics as explanatory variables suggests that demographic variables may explain behavioral changes. We were able to classify the factors into three categories: positive factors that promote an increase in usage time, negative factors that promote a decrease, and variation factors that promote fluctuations.

When a company acquires new knowledge, it expects to create new business by fusing the new knowledge with existing knowledge. At least that is how things appear superficially. However, Fujitsu’s new business development discussed in this paper was not related to any new knowledge but sprung up because of other reasons. Because the company had invested a lot of resources to acquire new knowledge, it was impossible to recover the management resources that it had invested, which then became sunk costs, unless the company did something. We call such a situation “sunk cost pressure.” In the case examined in this paper, this sunk cost pressure induced the combining of disparate knowledge in the company’s possession, thus creating new business.

This study presents detailed sales actions through continuous unstructured interviews of practitioners. The results of the study demonstrate that there are five steps in sales: 1) preparation; 2) approaching customers; 3) interview; 4) presentation; and 5) closing. In addition, a questionnaire comprising 142 items for measuring these sales actions was developed based on these five steps, and the questionnaire was given to 107 individuals in eight companies. The results of the questionnaire revealed variances between top and bottom performers, with these variances in the steps prior to the interview, particularly in the preparation stage. This suggests the importance of preparation in sales. The sales skills scale of Rentz, Shepherd, Tashchian, Dabholkar, and Ladd (2002) measured aspects that have no direct relationship with sales and is problematic considering that it may fall into a tautology. The research approach taken herein, where the focus is on these sales actions and the five steps, may resolve the problems inherent to Rentz et al. (2002).

In terms of software, “continuous development” of the software is the best quality assurance. Continuous development requires either the original developer to continue development, or the next generation of developers to take over the development. It has been noted that when the original developer has used “open source,” a development paradigm in which the source code is kept open to all, highly motivated and competent developers will participate in development. This makes it easier for a project to survive. However, at the same time, when the source code is opened to a broad audience a fork in the source code tends to occur. When this happens, those with a high level of competence and motivation abandon the development and go their separate ways. In such a situation, it is difficult for a project to survive. In the case of Denshin 8 go, a guardian for the source code was appointed, and the original developer and the guardians avoided this dilemma. Richard Stallman of the GNU project and Linus Torvalds of Linux project act as legitimate guardians to avoid fork.

Porter (1998) noted that with continuing global homogenization in companies’ condition to obtain resources and gain access to markets, there is an increasing need to create a local, competitive advantage in industrial clusters. He called the importance of location in this age of globalization a “location paradox.” Similarly, when industry-wide platforms appear and global development technologies are standardized, companies need to accumulate unique technical capabilities to differentiate themselves. In this paper, this phenomenon is known as the “platform paradox,” and is verified by a case of videogame industry. The utilization of development platforms (game engines and middleware) standard within this industry during the 2000s, causing global homogenization in development technology. Videogame development companies’ industrial cluster located in Japan’s city of Fukuoka cooperated in technological matters in an effort to differentiate themselves with their technological sophistication in using platforms. By aggressively sharing knowledge to optimally utilize hardware and development tools, these companies have created a store of unique technologies.

Success in software development is not simply “a person” or “a team” succeeding in development, but rather the execution of a smooth “shift to the next-generation” of developers, who continuously upgrade a single software product over a long span of time. In this case, different generations of developers share the source code. This paper analyzes this process using “Denshin 8 go,” Japanese free software as one example. Initially, the original creator, Ishioka developed Denshin 8 go single-handed as closed source software and succeeded in motivating users through frequent upgrades. Several years after the initial release of Denshin 8 go Ishioka lagged behind in much needed upgrades, but one user group continued to use Denshin 8 go and was eager to improve the software. He disclosed the source code to the group, which in turn carried forward the process of development. As this case shows, the viewpoint that alternate generation of developers outside of a single company is caused by success in software development is known as “open source” software development. However, the reverse is not necessarily true. That is, simply becoming open source does not guarantee successful development.

It is difficult to identify easily adaptable software in its completed form. In its nature, the definition of “complete” is unclear. As a result, if one expects perfection in software, software products will never be released; the only alternative is to release software if it runs, and then gradually refine it over time. This results in the implicit conventional wisdom that the “continuous development” of the software is the best quality assurance. This paper looks at the highly capable Windows e-mail software called “Hidemaru Mail.” With current progress in IT, it is possible that the concept of software quality assurance can be applied to a broader array of products and services.

“Free” and “open source” are not requirements for successful software development. The argument that “early and frequent upgrades” are one indicator of successful software development does not imply the necessity of users updating the source code but the importance that they function as testers and debuggers. In the development of Japan’s non-open source, non-free shareware “Hidemaru Mail,” the users perform the functions of testers and debuggers. It is evident from the case of Hidemaru Mail that early and frequent upgrades are neither result nor performance indicators, but rather the way to intrinsically motivate users so that they can function as testers and debuggers. In actuality, the developer of Hidemaru Mail motivates users to submit requests and reports more often by meticulously responding to almost all users’ requests and reports and upgrading early and frequently. Existing studies are overly particular about whether the source code should be open, and lack the perspective of organizational theory about how developers should motivate users to function as testers and debuggers. While there is the definite possibility of motivating users through open source, this does not indicate that open source is a necessary condition. The necessary condition is to motivate as many users as possible to cooperate in the development. If this is accomplished, the development of software will succeed, regardless of it being free or open.