Creating and Managing a High Performance Knowledge-Sharing Network: The Toyota Case

Abstract

This study offers a detailed case study of how Toyota facilitates interorganizational knowledge transfers among within its production network. In particular, we identiify and examine six key institutionalized knowledge sharing routines developed by Toyota and its suppliers. By examining how Toyota facilitates knowledge-sharing with, and among, suppliers we are able to identify the key variables which influence interorganizational and network learning. Moreover, since Toyota is early in the process of creating a learning network with U.S. suppliers, we explore the creation and evolution of Toyota?s new learning "network" in the United States. We attempt to extrapolate from Toyota?s experience by developing a series of propositions regarding creating and designing a high performance knowledge-sharing network. We believe our analysis provides at least a partial explanation for why Toyota has been able to maintain its productivity and quality advantages long after the principles of the Toyota Production system have diffised throughout the industry (Knowledge Sharing, Interorganizational Learning, Competitive Advantage).