How has Sharp Corporation led themselves to crisis: Flexibility in the neighborhood brings rigidity at the core

Koichi Nakagawa (), Yoichi Matsumoto () and Yuki Tsuboyama ()
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Koichi Nakagawa: Graduate School of Economics, Osaka University
Yoichi Matsumoto: Research institute of economics and business, Kobe university
Yuki Tsuboyama: Graduate school of business administration, Hitotsubashi university

No 14-28, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: Manager fs cognitive biases prohibits from changing organization. But, we do not know in-depth and correctly how do they decide things when they persist in something. We distinguish managerial objects into three categories: focus of attention, neighborhood of focus, and out of focus, and we analyze what kind of decision was made for each category. From the case study of the crisis of Sharp Corporation, we found that managers 1) enthusiastically kept investing and running the LCD panel production (focus of attention), 2) flexibly changed the other strategic options of LCD business like target market, choice of vertical domain or alliances (neighborhood of focus), and 3) nearly ignored the other business areas (out of focus). From such consideration, we hypothetically proposed the logic that flexible changes in neighborhood of focus rather enhance the rigidity in focus of attention.

Keywords: Organizational change; Manager fs cognition; focus of attention; Sharp Corporation (search for similar items in EconPapers)
JEL-codes: M10 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2014-07
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