Capturing Learning and Applying Knowledge: An Investigation of the Use of Innovation Teams in Japanese and American Automotive Firms

Abstract Many organizations view teams as a means to enhance the development of new products and systems. Here we report on the use of teams by two automotive firms. Each organization used different approaches to meet the same goal—innovation to reduce costs. Choice of strategy is significant in determining the level of output teams achieve. An important role is played by those outside firms in stimulating ideas and learning. However, the team plays a crucial role in selecting these externals, with attempts by the organization to provide predetermined experts appearing to be limited. This external assistance coupled with a team's internal drive to improve are significant in raising the quality of an innovative product. Efforts by firms to enforce standardized procedures have paradoxical impacts, resulting in the initial constraint of the team ideas, while enhancing any benefits of innovation across the whole organization.