The birth and growth of toshiba's laptop and notebook computers: A case study in Japanese corporate venturing

This case study presents the “under the table” birth, accelerated growth, and ultimate success of two major technological and market innovations: (1) the Toshiba laptop computer, a project vetoed twice by corporate headquarters, and (2) the notebook computer, a project hidden from headquarters. Because of the vision, persistence, and championing efforts of a team of passionate Japanese corporate entrepreneurs, a new business was created that is now part of Toshiba's mainstream operations and that has become a significant contributor to the growth and profitability of the corporation. We follow the evolution of this corporate venture from initial failures in 1978 to the success of the laptop computer, first in Europe (1985), then in the United States, and finally in Japan. This was followed by the reincorporation of the venture in the corporate “mainstream” (1987), the worldwide success of the notebook computer (1989), and the continued growth of the business in parallel with repeated promotions of the entrepreneurs. First, a framework is presented for interpreting the case within current theories and practices of the management of innovation and the processes of championing innovative corporate ventures. This framework is expanded to include recent studies on how major corporations have achieved worldwide leadership in high-tech markets. Second, using the analogy of human life from conception to adulthood, the key phases, events, and entrepreneurial actions of Toshiba's PC business are summarized in Table 1. Third, the theoretical framework is applied to a discussion of the unusual aspects of this case. Fourth, we analyze the business strategy and the technology strategy developed by Toshiba. Finally, we summarize the cultural and organizational context of Toshiba as well as other critical factors that contributed to the enduring success of this corporate venture. There are four aspects, in addition to the international setting, that make this case interesting for both scholars and practitioners: (1) the “under the table” development of both the laptop and notebook, (2) the unexpected success of the first product, followed by a second success, (3) the evolution of champi oning at various organizational levels, and (4) the continuity of the strategic vision for Toshiba's information systems business from 1978 to the present, and how this vision was translated into specific business and technological strategies. From the perspective of management of innovati