Holistic Organizational Dynamics — Macro and Micro Views

This chapter explains why appropriate organization design is vital in achieving strategic innovation capabilities (SICs) required in an age of advanced ICT. It shows that in integrated organizations in particular, new organizations are mainly responsible for demonstrating dynamic capabilities (DCs) for creating new knowledge integration, while existing organizations are mainly responsible for exploiting knowledge that has already been integrated. Integrated organizations transcend boundaries within a company (people, organizations, different specialist areas, etc.) and boundaries outside a company (between companies, between the company and customers, and between different industries) to create innovation through dynamic knowledge integration within and outside the company while demonstrating SIC through the integration of ordinary capabilities (OCs) of the existing organization via the formation of a triad system. Furthermore, from the viewpoint of micro-organization theory, the chapter looks closely at existing knowledge boundaries among people (including artificial intelligence) and presents “boundary synchronization” as a new concept for integrating knowledge that straddles disparate fields of specialization to achieve innovation.