The Role of Internal Competition in Knowledge Creation

Book excerpt: This book is about how to implement creative competition within an organization. It examines the conditions under which internal competition can promote knowledge acquisition and knowledge sharing. The book describes a number of studies of sales departments in Japanese firms. Sales departments in Japanese firms were studied because internal competition is getting fiercer in these departments following the recent introduction of performance-based compensation. Exploratory case studies of ORIX Corporation and Japan Computer were conducted in order to generate research hypotheses. To gather quantitative data and test the hypotheses drawn from the case studies, a questionnaire survey of sales departments of Japanese firms listed on the Tokyo Stock Exchange was carried out. The findings reported in the book shed new light not only on internal competition theory, but also provide new insights into the theories on knowledge creation and intra-organizational conflict.