Effect of Changing Governance System: Result of Western Style Management Adoption to Japanese Culture of Ambiguity

This paper considers the difficulty of management style change through observation of the management style of Company-A, one of the biggest Japanese IT companies. Japanese economy grew after World War II until the early 1990's. During that era, Ba or SECI process worked in Japanese organizations very well. Further, there was an ambiguous culture in the background of such characteristics. Some kinds of ambiguity or adhocracy made positive effects for Japanese organizational activity, or ambiguity played an important role for Ba activity. There were nested Ba's in each organization with ambiguity. Ambiguous descriptions of roles for each organizational unit activated nested Ba's and generated hot groups. After the economic crisis, Company-A changed its governance and gave clear targets for each organizational unit and for each employee. This change gave new difficulty and diminishes its competence. The change denied the ambiguity in the organization but it was the basis of the competence. Adopting a new system of governance is not a simple activity. Systems must be adjusted to the culture of the organization. Company-A should study competitors in different cultures and adjust the methodology for its culture