The Origins, Diffusion and Evolution of ESI

Abstract

Rooted in the increasing socialization of the innovation process, ESI originated primarily in the Japanese automotive sector in the late 1940s where industry conditions were catalytic. The practice later spread to the US automotive industry via Japanese transplants in the early 1980s, and began to diffuse among other regions and industries beginning in the late 1980s. This chapter explains this process through five case histories, beginning with Toyota, the company where ESI originated. The story then moves to the US when Honda, one of the first Japanese transplants, adapted ESI into the North American context. American companies observed the activities of these transplants and tried implementing the concept themselves, Chrysler being the first US automaker to do so. Early non-automotive manufacturing companies to adopt the concept include Motorola. Later the practice moved full circle back to Japan and very sophisticated use by some of that country’s non-automotive manufacturers. Concluding the chapter, the history of Fuji Xerox illustrates the latest stage in the story of ESI.