Abstract
Purpose
The purpose of this paper is to examine the possible impediments to radical innovation created by the pursuit of quality improvement in the dynamic hi‐tech sector.
Design/methodology/approach
First examines contributions and limitations of extant literature. Then analyzes three cases from the Japanese hi‐tech sector, dynamic random access memory chips , network equipment, and system integration, to understand the conditions under which the pursuit of quality creates impediments for radical innovation.
Findings
Identifies a number of mechanisms, beyond the existing literature, through which the quality culture of Japanese hi‐tech firms can inhibit innovation. Particular attention is paid to the risk averse culture that may be created, thereby damaging the potential to develop radical innovation. Some exploratory strategies are offered through which firms might minimize these problems.
Originality/value
The ways in which the quality culture of Japanese hi‐tech firms poses a challenge for innovation are explored and some exploratory views on how Japanese firms might meet this challenge are offered. Above all, the paper calls for firms to think more strategically and flexibly about the role of quality at the early stages of the product cycle for hi‐tech products.