Kazuo Ichijo

Tapping tacit local knowledge in emerging markets – the Toyota way

This paper presents insights from two case studies of Toyota Motor Corporation and its way of global knowledge creation. In 2004, Toyota announced an initiative to increase the self-reliance of overseas manufacturing facilities, especially in emerging markets. In 2005, Toyota Peugeot Citroën Automobile, an international joint venture between Toyota and Peugeot in Kolín, Czech Republic started the production of small compact vehicles in order to react to the changing European customer market. We will show how Toyotas knowledge creation has changed from merely transferring knowledge from Japan to subsidiaries and affiliations around the globe to a focus of creating knowledge and tapping tacit local knowledge in foreign markets by local staff. In fact, Toyotas new strategy of ‘learn local, act global’ for international business development and its knowledge-based approach to marketing proved successful for tapping rich local knowledge bases, thus ensuring its competitive edge and global lead in the automotive industry.

Business Globalization: The Nightmare of Populism and the Hopes Brought by Technology

Despite the recent spread of populism and nationalism, particularly in developed countries, the globalization of business is an unstoppable and irreversible process. Some major drivers of this global integration of business include the impact of technology and the international orientation of millennials and younger generations as well as the diffusion of entrepreneurship. This chapter describes the major avenues used by companies to internationalize their activities as well as the major threats posed to global trade.