Annals of Business Administrative Science 5 (2006) 41-66
Available at www.gbrc.jp

Online ISSN 1347-4456 Print ISSN 1347-4464©2006 Global Business Research CenterTransfer of Knowledge Related to the Management of
Department Stores: Research Based on the“Buyers Manual” and “MD Notes” in JapanMIYAZOE Kenshi
Graduate School of Economics, The University of Tokyo
Nagoya University of Commerce and BusinessE-mail: miyazoe@mmrc.e.u-tokyo.ac.jp

Abstract: Academic and business literature in Japan on merchandising, a corecapability in the management of department stores, describe the “Buyers Manual”
edited by the National Retail Merchants Association. This manual was introduced
into department stores in Japan, as the nation was recovering after World War II.
Among Japanese department stores, Isetan tried to transplant the knowledgepresented in this manual by re-editing it into an in-house document entitled“Merchandising (MD) Notes.” Subsequently, both of these sets of knowledgematerials were transferred to multiple department stores when top Isetan managers
left the company to join competitors. Focusing on these knowledge materials, theauthor analyzes the transfer of knowledge in the department store industry.
Keywords: knowledge transfer, merchandising knowledge, transfer from abroad,transfer within the industry

1. Introduction

based on the “Buyers Manual” edited by Isetan, a1-1. “Buyers Manual” and “Merchandising

Japanese department store.

(MD) Notes”

The “Buyers Manual,” created by the National

The materials in this study are the “Buyers Manual”

Retail Merchants Association (NRMA), concretely

created by the National Retail Merchants Association

describes all of the steps involved in merchandising(NRMA), and the “Merchandising (MD) Notes”

in the retail industry from merchandise planning41

Miyazoe

throughpurchasing,(assortmentofmerchandising

merchandise),assortment

selling,

Shimbun Co., Ltd.: the publisher of a trade journal

sales

for the department store industry. Ogawa, Kyoichi

promotion, discounting, the numerical aspects ofthen president of this publishing company, translated

stock management, and even concepts of corporate

the 1957 edition published by the National Retailorganization. 1 Although it is called a manual, it does

Merchants Association (NRMA) into Japanese, andnot describe practical procedures specific to any

made it available as a three volume series between

single organization, but was instead co-written on

1961 and 1963. This translation was supported by

the subject of merchandising by many practical

Shimizu, Shigeru then a member of the Researchpeople representing the U.S. retail industry of the

Department of Takashimaya, another major Japanesetime, and it has been revised and republished several

department store.

times since it first appeared in 1930. As regards the“MD Notes,” the other material discussed in1957 edition, considered in this paper, most of thethis study, was created while Isetan was working on

writers were practical business people working in

introducing and utilizing the knowledge presented indepartment stores, and it may better to call it a

the NRMA’s “Buyers Manual.” Isetan focused ontheory of department store management, given that it

their

discusses merchandising at department stores in its

deployment. The idea was based on merchandise

entirety from the viewpoint of actual business.

categorization according to, for example, themerchandise

assortment

anddepartment

This “Buyers Manual” attracted the attention ofconcerns of consumers and merchandise use. They

the management of Japanese department stores,

developed these ideas in their own way to define

which were recovering from the damage caused byeight categories and twenty-three items (called

World War II. The first contact was made by Isetan,“categorized merchandising”). 3 These categories

which is a major Japanese department store. In 1951,
be the 1949 edition according to the timing of the
NRMA revision, the actual material was not found at
Isetan so the edition remains unconfirmed.
3
Items of categorized merchandising indicated in “MD
Notes” are as follows: First, categories for assortmentare (1) Merchandise category (price zone), (i) Prestige(authority merchandise), (ii) Moderate (central
merchandise), and (iii) Budget (bargain merchandise);(2) Price category (price line); (3) Seasonal category, (i)Year-roundmerchandise,and(ii)
Seasonal
merchandise; (4) Period category: (i) Introduction, (ii)Peak, and (iii) Sell-out;, (5) Usage category, (i) Gift, (ii)
Own consumption, (a) Durable merchandise, and (b)Consumable merchandise. Second, categories for sales
section development are: (1) Target category, (i) Sex,(ii) Age, and (iii) Group; (2) Usage category, (i) Task(use), (ii) Place (for use), and (iii) Function; (3)Concern category, (i) Color & pattern, (ii) Shape &design, (iii) Size, (iv) Price, (v) Material, and (vi) Taste.

President Kosuge, Tanji III of Isetan (known at thattime as Managing Director Kosuge Toshio) visited
department stores in the U.S. and Europe, and havefound and returned with presumably the 1949
edition. 2 The second contact was made by Depato
1

The National Retail Merchants Association (NRMA)
was founded in 1911 in order to foster the retail industry.
Department stores and specialty stores joined theassociation. Later, the association merged with otherorganizations to form the current National RetailFederation.
2
By the Secretariat to Corporate History Editors, Public
Relations, Isetan (1990). Although the “Buyers Manual”
brought back by Kosuge Toshio in 1951 is assumed to42Transfer of knowledge related to the management of department stores

were organized into a card book called “MD Notes”

1-2.

for buyers and sellers to carry with them at all times.

transfering between department stores andThese “MD Notes” were utilized in Isetan’s

MD knowledge transfer

merchandising operations such as merchandiseInplanning, merchandise assortment and stock control.

management staffs sometimes left to work forThis study attempts to describe the actual

different department stores as shown in Figure 1 andsituations in which merchandising knowledge was

Figure 2. First, Yamamoto, Munekazu who had beentransferred from the U.S. to Japan, and between

involved in the internalization of the “Buyers

Japanese department stores, by referring to the

Manual” and the preparation of the “MD Notes,”“Buyers Manual” and the resulting “MD Notes.”

moved from Isetan to the Tokyu Department StoreThis illustrates an example of an active introduction(then Toyoko Department Store) in 1963. 4 Later,of knowledge from foreign department stores during

Yamanaka, Kan moved from Isetan to Matsuya in

the recovery period of their Japanese counterparts in

1976, and then to the Tobu Department Store in 1990.

the 1950s and 1960s. While the introduction of the

How was the knowledge described in the U.S.

“Buyers Manual” from the U.S. by Kosuge of Isetan“Buyers Manual” and presented in Isetan’s “MD

is noted in the corporate history of Isetan and isNotes” transferred when these management people

widely known among researchers of the department

left Isetan? This study attempts to explore the actual

store industry (Fujioka 2004), the existence of thesituations in which the tangible knowledge materials

Japanese translation of the “Buyers Manual”

entitled “Buyers Manual” and “MD Notes” were

published by Depato Shimbun has gone largely

transferred with an awareness of them.

unrecognized.

This

is

becausethe4

department stores on a made-to-order basis, andthere is no copy in the National Diet Library. DuringonMDknowledge

theJapanese

betweendepartment

store

managers

industry,

Japanesetranslation was sold by Depato Shimbun tointerviews

Relationshiptransfer

withdepartment store staff, I came across a copy at the
Tokyu Department Store. This manual was available
to every department store in the early 1960s, so it
will not be a surprise to find that many department
stores other than Isetan referred to it. What were theactual situations of transfer of knowledge?

43

Three patterns have been confirmed as regards the
movement of management personnel between
department stores. First, during the era of higheconomic growth, railroad companies establisheddepartment stores in urban areas in quick succession,and mainly in the 1970s, recruited operation leadersfrom kimono-shops-turned-department-stores. The
move of Yamamoto Munekazu from Isetan to the
Toyoko Department Store (currently the Tokyu
Department Store) was the first example of this pattern.
Second, major department stores tend to dispatch
managers to their affiliated companies to support
management. The move of Yamanaka Kan from Isetan
to Matsuya and the Tobu Department Store wasintended to reinforce the Isetan-sponsored group of
department stores (ADO). Recently, a third pattern has
emerged where talented managers are scouted
regardless of affiliation or partnerships. The movementof people from Isetan to Matsuzakaya, Odakyu
Department Store and others follows this pattern.

Miyazoe

Figure 1. Movement of executive managers between department stores (1)

1950

1960

1970

1980

1990

Mr. Yamanaka（1990）

Millennium
Retailing

Tobu

Mr. Yamanaka（1976)

Matsuya

Mr. Sano（2005）

2000

Ｓａｎｏ
Matsuya Ｍｒ．
（2003）ADO Department Stores Group

IsetanMr. Yamamoto（1963）

Mr. Suzuki（1994）

Tokyu

KeikyuMr. Tsukada（1995）

Mr. Tanaka（1972）

SakumaIwataya Mr.
（2002）

Matsuzaka Mr. Kawanaka（2003）-ya
Kakei
Odakyu Mr.
（2004）

Daimaru

Mr. Mizuno（1987)

Mr. Sugino（1962)

OdakyuOdakyu(As of Feb.2005)

Figure 2. Movement of executive managers between department stores (2)

1950

1960

1970

1980

1990

2000
Sakurano

Mr.Tawarada（2003）

Printemps

Mr. Sugiyama（2002）

Takashimaya

Keio

Mr. Nakamura（1998）

Mitsukoshi

Ichibata

OdakyuSeibu

Okajima （2002）

Mr. Matsushita（1973）Usui

Mr. Sakakura（１９７4−1985）

Mr. Wada（2000）Sogo

Mr. Takazawa（2003）

Millennium
Retailing(As of Feb.2005)

It was about 50 years ago that the knowledgetransfer is not simply a management topic of the past

provided in the U.S. “Buyers Manual” wasrelated to the history of the department store industry.

introduced into Japan. However, this knowledge

I believe that this theme has remained alive from the44

Transfer of knowledge related to the management of department storesdays of the fundamental restoration of department

who visited department stores overseas in the earlystore management immediately after World War IIdays (Takahashi, 1972). Since then, as part of their

until today. Recently, managers with experience ofgrowth, Japanese department stores have learned

merchandising at Isetan have moved to local

about store design from their peers overseas throughdepartment stores belonging to the ADO groupstudy tours. Shiraishi and Toba (2003) described the(Isetan-sponsoredalliance

process by which Takashimaya transformed itself

then

to

into a modern department store, before World War II,

Store,

andby making positive use of the knowledge obtained

Millennium Retailing, Inc. (the holding company offrom overseas department stores mainly by visiting

Seibu Department Store and Sogo) outside the ADO

them.

group

of

nationwide

department

Matsuzakaya,

Odakyubusinessstores),andDepartmentgroup. This trend among major department stores toWith respect to knowledge transfer in the retailrecruit managers from Isetan to enhance theirindustry, there are many studies such as Goldman

merchandising capabilities may be supported by(2001), which describe, in terms of global marketing,today’s recognition that knowledge concerningthemerchandising is essential for the management of amanagement knowledge are transferred when adepartment store, and such knowledge is the source

retailer based in an advanced country branches outof competitiveness.

into a developing country. With regard to theprocessbywhichbusinessstylesandbusiness styles of department stores, Sekine and Oh
1-3. Previous knowledge transfer studies(2003) concluded that the transfer of management

Since the Meiji Restoration, Japan has seen countlesstechniques from Japan to Korea is attributable tocases of industries springing up and modernizing bytechnical tie-ups established for opening stores.

introducing knowledge related to business practices,

On the other hand, I found very few studies

management and technologies drawn from theundertaken

corresponding

foreign

viewpoint and which focuses and analyzes thecountries. Japan started researching department

process by which the recipients of knowledge

stores in the U.S. and Europe in the late nineteenthenhance their management and organizational

century, and many kimono shops transformed

abilities by introducing this knowledge. From thisthemselves into department stores in the early

approach, Nakamura and Asakawa (2004) studied

twentieth century, triggered by the “Department

the pharmaceutical and bio industries, and identified

Store Declaration” launched by Mitsukoshi in 1904.

four

Japan’s

exploitation, acquisition, digestion, and utilization,industries

departmentin

storesadvanced

were

born

from

knowledge studies carried out by business people

stages

from

of

the

organizational

knowledge

which is suggestive for this study.
45transfer,learning

namelyMiyazoe

The available and effective approaches tomerchandising from the viewpoint of organizational

knowledge transfer are still being studied (Kimacquisition

2002).

viewpoints differentiate this study from previous

Previously

publishedwork

discussing

knowledge transfer includes studies by Nonaka andandknowledge

acquisition.

These

work.

Takeuchi (1996), Almeida and Kogut (1999), andLeonard and Swap (2005). They describe their

2. Method of study

approaches to knowledge transfer as follows: “the2-1. Existence of transfer and assessment ofinteraction between implicit knowledge and explicit

extentknowledge occurs on an individual basis” (Nonaka

Although the actual transfer of knowledge (the& Takeuchi, 1996), “knowledge in its context is

extent of transfer) has yet to be definitely defined,

transferred via human beings” (Almeida & Kogut,

this study divides knowledge transfer into the1999), and “Deep Smarts are fostered throughfollowing five stages described by Nakamura andguided experience” (Leonard & Swap, 2005), all of

Asakawa (2004). (i) “No transfer” represents thewhich emphasize knowledge transfer “via humanstage where no knowledge related material isbeings.” The knowledge transfer dealt with in thistransferred, (ii) “Transfer of materials” represents thepaper is defined as the creation or transfer ofstage where knowledge related materials have beenknowledge within an organization, and the body ofphysically transferred, (iii) “Utilization” represents

work describing transfer between corporations is

the stage where the transferred knowledge is utilized,

very small. Suzuki (1980) divided and organized the(iv) “Rooted” represents the stage where theways of transferring retail management techniques

transferred knowledge has been utilized and takenfrom A to B into three types: (i) a person moves fromroot in the organization, and (v) “Real effects”

retailer A to retailer B, (ii) an employee of retailer B

represents the stage where the transferred knowledge

learns retail management techniques from retailer A,

generates effects reflected in performance figures.

and (iii) a third party mediates the transfer. Should

The extent to which knowledge is transferred is

we recognize that knowledge transfer among

evaluated in the above order.

department stores occurs via people, that is, throughThis study treats “Buyers Manual” and “MD

the movement of the management staff of major

Notes” as knowledge to be transferred, and carries

department stores?

out

an

evaluation

bydefining

theclearly

This study focuses on the department store

recognizable “Transfer of materials” stage, where theindustry, and analyzes the transfer, from the U.S. tophysical or visible materials is transferred (held byJapan and among Japanese peers, of knowledge

the corporation concerned) as the first stage of

closelyknowledge transfer.

relatedtomanagement,

such

as
46

Transfer of knowledge related to the management of department stores

2-2. Survey method

sources as possible.

Survey conducted in this study is as follows. Basedon information concerning the movements of

3. Actual situations of knowledge

department store management staff as mentioned

transfer related to merchandising atabove, I surveyed a total of 12 department stores

department stores

beginning with Isetan, followed by Matsuya, Tobu

From the analysis of the transfer of merchandising

Department

Store,

knowledge seen in the “Buyers Manual” and “MD

OdakyuNotes,” this paper draws the following four

Iwataya,Store,

Tokyu

KeikyuDepartment

Department

Store,

Department Store, and Matsuzakaya, to which
Isetan’s

managers

moved,

andconclusions:Takashimaya,

Mitsukoshi, Daimaru, and Seibu Department Stores

3-1.

Formatsofknowledge

concerning(Millennium Retailing, Inc.).

merchandising at department storesFirst, I sent questionnaires to the managers in

I found that there are five types of tangible materials

charge of the management planning of thesedescribing knowledge of merchandizing operations

department stores posing general questions about

at department stores: (i) the “Buyers Manual”

awareness, in-house retention, and utilization of the(English version) edited by NRMA, (ii) material“Buyers Manual” and “MD Notes.” Second, I visited

prepared in-house by translating the “Buyers

each of these corporations to interview key staffs at

Manual” edited by NRMA (Matsuya), (iii) “Buyers

the director level who were familiar with the history

Manual” (Japanese version) published by Depatoof knowledge transfer and utilization, and to

Shimbun, (iv) “MD Notes” created by Isetan, and (v)determine the in-house materials (actual papers or

merchandising-related manuals edited in-house bybooks) that were available. Third, I researchedeach department store.

descriptions of merchandising-related training andWhile

Fujioka(2004)

also

providesasystem construction based on the corporate history

description of the NRMA “Buyers Manual” (English

of each department store, and literature dealing withversion) in Isetan’s corporate history, its Japanese

important people in merchandising. 5 During thesetranslated version published by Depato Shimbun issurveys, I took care to check facts with as many

described for the first time in this study. I believe

5

that this is a meaningful contribution since it
I undertook research based on the Association’smaterials and interviews with directors. The result is
described in another paper illustrating the activities of
the Japan Department Stores Association with respect totransferring knowledge from department stores overseas.
Surveys and descriptions in this study focus on eachdepartment store as an independent enterprise, andcenter on the transfer of the “Buyers Manual” publishedby NRMA.

constitutes the discovery of material produced during
the recovery period of Japanese department storesafter World War II.

47

Miyazoe

3-2. Routes of transfer

concepts

Figure 3 shows the flows of the introduction ofmerchandising-related manuals.

werereflected

inthetransferees’

knowledge from the U.S., and its transfer inside theJapanese department store industry. The “Buyers

3-2-1. Transfer of “Buyers Manual” from theManual” (English version) edited by NRMA was

U.S. to Japantransferred from the U.S. to Japan via two routes.

Introduction of knowledge by Isetan

One was its introduction by Kosuge Tanji III of

In the course of approximately three months from

Isetan, and the other was the publication of theJune to September 1951, President Kosuge Tanji III

Japanese version by Depato Shimbun, the publisherof Isetan (known in 1951 as Managing Directorof a trade journal for the department store industry.

Kosuge Toshio) visited many department stores in(Later,“Buyers

New York, London, and Paris and other cities in the

Manual” (1979 edition) into Japanese in-house to

U.S. and Europe. Isetan’s corporate history describes

produce a private version.) Inside Japan, Isetan

President Kosuge’s view on the concepts ofcreated its “MD Notes” based on concepts presented

merchandizing as follows:

Matsuyatranslated

NRMA’sin the “Buyers Manual.” “MD Notes” wasIn the U.S. after the end of World War II, thetransferred to other department stores, and its

conventional sales attitude of waiting for shoppers

Figure 3. Flow of MD knowledge transfers from U.S. to Japan

1930 ed.
1949 ed.

（Isetan：1951）

Classification
Merchandising① NRMA’ s
Buyers Manual
1957 ed.

③ NRMA’ s
Buyers Manual(Japanese Version)
Translated
by Depato Shimbun

1965 ed.

1979 ed.

（1961‐63）② MD Note（Created by Isetan)⑤Merchandising-related
Manuals in Japanese
Department Stores④ NRMA’ s Buyers
Manual (Japanese Version)
Translatedby Matsuya for private use

48

Transfer of knowledge related to the management of department stores“to sell produced goods” was being replaced with ashopper, usage and attention level to the price zone,

new marketing method “to make suppliers produce

price line and seasonal factors described in the

goods that are sure to sell well.” Managing Director

original

Kosuge Toshio toured the U.S. commerce industry inmerchandising

the middle of the “Marketing Revolution,” when all

merchandising” was invented, and incorporated into

the plans and schemes for creating “things that sell

“MD Notes.” 7well” or “merchandise that sells well” were

document.

Thus,

standards

theconceptofand“categorized

Categorized merchandising was first applied tocomprehensively called MD, and every retailer wastheconcentrating wholeheartedly on the establishment

Shinjuku Store. Based on the unprecedented conceptof merchandising. 6of “categorization by usage,” clothes, childcare

children’s

clothes department in

Isetan’s

Merchandising is a scientific method forgoods, sundry goods, and furniture were gatheredconsistently planning, undertaking and controlling

together in the baby goods department. Despite theevery stage from product planning to purchasing,baby-boomer era and its explosive demand for baby

and from the assortment of goods in each department

goods, the children’s clothes department was lessto sales trend analysis. This was a very fresh idea for

integrated into a complete department than theJapanese department stores in those days. The

kimono, men’s wear and ladies’ wear departments

NRMA “Buyers Manual” was a document thatthat were core business divisions. This delay incovered all the ideas and steps involved in

integration allowed Isetan to take a leading role. The

merchandising in a systematic way.

success of this attempt led to applications to other

Kosuge Toshio brought this “Buyers Manual”

departments, and the organization of corporate-wide(assumed to be the 1949 edition) back to Japan, andcategorized merchandising as the MD’s core

promptly instructed Yamamoto Munekazu (thenfunction.

Senior Manager of the Merchandise Division) andAt that time, Yamamoto was holding study

Yamanaka Kan (then Section Manager of themeetings on merchandise categorization almost

children’s clothes department) to translate it into

every day with members of the merchandise division.

Japanese.

Yamamoto is said to have taken the initiative in
fostering human resources and inculcating the basic

Furthermore, these two managers focused on
the concept of merchandising standards. They

7

modified the translation to fit Isetan’s actual businesspractices by adding Isetan’s own categorization by

6

Secretariat to Corporate History Editors, Public
Relations, Isetan (1990), p. 118.

49

In his paper “Digital information revolution and fashionindustry” (Okawa, 2002), Ookawa, Keinosuke Director
and Managerial Executive Officer of Isetan, writes thathe translated such U.S. works as “MERCHANDISING”(which is assumed to be Douglas, A. W. (1918).
Merchandising. New York: Macmillian). Anyway, thissuggests the way in which Isetan collected a variety ofmerchandising knowledge, and created its own “MD
Notes.”

Miyazoe

principles of MD. 8

included in the original English version of the“Buyers Manual” was introduced by Takashimaya.

Translationby

DepatoShimbunand

Although Shimizu, then a member of theparticipation of Takashimaya

Research Department of Takashimaya’s Head Office,

By contrast, Depato Shimbun Co., Ltd., a publisher

took charge of the translation, it was nothing moreof trade periodicals and other materials for thethan a task requested by Depato Shimbun Co., Ltd.,

department store industry, was also interested in theand hardly affected Takashimaya’s business as a

NRMA “Buyers Manual.” The publisher asked

whole. There is also no evidence remaining in

Takashimaya to review the translation of the “Buyers

Takashimaya to show that this department store

Manual” (1957 edition), and Shimizu Shigeru then apositively utilized the “Buyers Manual” at thememberat

corporate level. It is suspected that, unlike Isetan,

Takashimaya’s Head Office, led the review. The

Takashimaya, since prewar period, was able totranslation was supervised by then Professor

obtained various types of information from abroad

Shimizu, Akira of Meiji University (elder brother ofthrough other channels and had no urgent need to

Shimizu Shigeru), and the Japanese version of the

rely“Buyers Manual” was completed. While the original

information. 10

of

the

Research

Department

on

the

“Buyers

Manual”

foroverseas

English version comprised a single volume, theJapanese version was divided into three volumes and3-2-2. Transfer among Japanese department

published successively between 1961 and 1963.

stores

These volumes were not sold in bookstores; Depato

I sought to find tangible evidence of transfer to

Shimbun Co., Ltd. sold them directly to department

confirm the transfer of knowledge materials such as

stores. It is said that around 1,000 copies of eachthe “Buyers Manual” and “MD Notes” from Isetan

volume were sold. 9

to other department stores. The results are illustrated
in Figure 4.

Thus, the NRMA “Buyers Manual” was

The “Buyers Manual” was transferred to three

introduced into Japanese department stores by Isetan
and Takashimaya simultaneously, but it should be

department

storestowhich

Yamamotoandregarded that the comprehensive, wide-ranging

Yamanaka moved from Isetan, that is, Matsuya,

know-how as regards department store operation

Tobu Department Store, and Tokyu Department
Store. “MD Notes” was transferred to a total of five

8
9

department stores including Odakyu Department

Tobita (2001).
Interview with Shimizu Shigeru (June 2004), whotranslated the “Buyers Manual” by Depato Shimbun.
Since there is not even a copy of “Buyers Manual” in
the National Diet Library, it has not been referred to by
any previous research on department stores.

1050

Shiraishi and Toba (2003) notes that Takashimaya wasintroducing many pieces of knowledge from department
stores overseas even in prewar days.

Transfer of knowledge related to the management of department stores

Figure 4. Knowledge transfer of “Buyers Manual” and “MD Notes”（Evidence of MD knowledge）

Company
Name

Movementof
Executives
from Isetan

NRMA’ s Buyers Manual
EnglishVersionPrivatelyTranslated

MD Notes

Translated by Concept of MD
Depato Shimbun Classifications

MD Notes(Card)

IsetanMatsuya
AＤＯ
Group

Tobu
KeikyuIwataya
Tokyu
OdakyuMatsuzakaya
Takashimaya
Mitsukoshi
Daimaru
Seibu
ExistsExists only in records

Store and Matsuzakaya, to which Isetan managers

young employees in the directors’ meeting room. He

had recently moved, in addition to Matsuya, Tobu

started a series of training sessions for the sales staff

Department Store, and Tokyu Department Store. 11

at

The concept of categorized merchandising was(commonly known as Yamanaka School), where thetransferred to Keikyu Department Store and Iwataya,

person in charge of a section analyzed his or her

but not in the form of the “MD Notes.”

counter based on the concept of categorized

each

floor

sectioncalled“PCA School”

merchandising, and presented improvement plans forKnowledge transfer to Matsuya

discussion by the participants. Thus, Isetan’s MD

In 1976, Yamanaka Kan of Isetan was invited byknowledge was transferred to Matsuya. 12 At the

Matsuya, then in a desperate slump, to join thesame time, Matsuya continued studying the NRMA

company as vice-president (later promoted to“Buyers Manual.” In 1989, 19 Matsuya staff

president in 1979). Yamanaka did not bring Isetan’s

members translated the 1979 edition of the NRMA“MD Notes” as it was into Matsuya, but set about“Buyers Manual” and created Matsuya’s in-houseestablishing direct communications by gathering

version using a word processor. Then, Matsuya

11

Matsuzakaya’s “MD Notes” was introduced in theevening edition of Nihon Keizai Shimbun, (2004, June15), and “MD Notes” of Odakyu Department Store wasintroduced in Senken Shimbun, (2004, September 16).

12

51

The following descriptions about Matsuya are based on
an interview with the Personnel Department of Matsuya
in June 2004.

Miyazoe

improved the performance of its Ginza Flagshipoperations at different departments, and consider

Store in terms of clothes and kitchenware, andchallenges and improvements (called the “Tobubecame a leading department store in Ginza area.

School”), which comprised the same training format

After moving to Tobu Department Store in 1989,

as that realized by Yamanaka at Matsuya.

Yamanaka Kan invited Ohta, Nobuyuki who had“MD Notes” was also introduced into the Tobu

undergone buyer education in the U.S. and had been

Department Store, and its employees were made toworking as a columnist for Senken Shimbun, tocarry notes describing mandatory requirements forbecome president of Tokyo Lifestyles Institute, Inc.

assortment and department design. In March 1990,(an organization authorized to create merchandising

the Tobu Department Store introduced a buyer

directions). Ohta took charge of a “Merchandizing

system and a sales manager system, and in OctoberSeminar” to train merchandisers. The framework of

1990, established the service training department formerchandiser training and operating methods wereon the job training (OJT) close to actual sales

based on Yamanaka’s approach, but the content was

activities. The merchandising training curriculum

devised by Ohta. In 2003, Sano, Kazuyoshi, Senior

includedManager

Administration

merchandisers,

experienceinbudgeting and numerical-based control, price-based

Matsuyaasmerchandising, complete department design, basic

vice-president (and director of the operation

knowledge of marketing, and purchasing strategies.

headquarters). His training style was based on

After

Yamanaka’s approach.

knowledge, Tobu Department Store incorporated itofDepartment

theofmerchandising,Merchandise
Isetanwaswithinvitedtobasicprinciples
fundamental

establishingforbuyersandknowledge

about

in-housemerchandisingin its own “Buyers Manual”.
Knowledge transfer to Tobu Department
Store

Knowledge transfer to Tokyu Department

In 1989, Yamanaka Kan moved from Matsuya toStoreTobu Department Store as a senior corporate advisor,

In 1963, Yamamoto Munekazu quit his position as

and in 1990, he took the office of president of the

managing director of Isetan to take the office of

department store. Yamanaka focused on education

representativewith respect to merchandising for buyers and sales

responsible for sales at Toyoko Department Store.

staff with a view to enhancing sales power toward

During his first four years at Toyoko, he launched alarge-scale expansion and the renewal of theseries of structural reforms. 13 This was because in

Ikebukuro Store. He carried out practical training by

those

days,

director

Toyokoletting trainees look at actual merchandising
13

52

Saito, N. (1994). p. 121.

was

and

vice-president

overwhelmedwithTransfer of knowledge related to the management of department stores

managerial problems, so Yamamoto was unable toto the following generations. The employees arefocus solely on merchandising, which had been hisalways encouraged to carry this book with them.

domain at Isetan.

This book talks about the philosophy of commerce

Later, after the start of the new manager system(1967),

Yamamoto

repeatedlyemphasized

as a retailer or department store, and the basic stancein

toward department operation and merchandising.

manager training the three principles of the “base ofThe

sales,” that is, ideas of (i) improvement of the

management and categorization & organization” (pp.

service level, (ii) thorough unit-based merchandise

82-83) describes the concept of categorization by

management, and (iii) improvement of businesstarget, usage, design and size.

processes. Yamamoto continued preaching these

sectionAfter

three principles until his death three years later.

entitled“Unit-based

Yamamotodied,merchandise

however,

Tanaka,Shosuke of Daimaru was invited to become

Yamamoto died in 1971, when the Tokyu

vice-president (1972). Categorized merchandising

Department Store was in the process of reformation,techniques

were

no

but he left two knowledge materials at Tokyu. One ismerchandising knowledge gradually disappeared. 14

the Tokyu version of “MD Notes.” Although the

However,standards for categorized merchandising are theDepartment Store held buyer training sessions once

same as in Isetan’s original version, the Tokyu

or twice a year, inviting Mr. Seagull, one of theversion is entitled “Merchandising Checkpoints.” I

authors of the NRMA “Buyers Manual” (1979acquired a copy of this material, but its coveredition), who was an executive officer at Macy’s.

includes the wording “Toyoko Department Store &Through these training sessions, the “Buyers

Shirokiya.” This suggests that this material was

Manual”

issued between 1963, when Yamamoto joined

merchandising were reintroduced, but right after the

Toyoko, and 1967, when Toyoko merged withlast session of this training course, Tokyu changed its

Shirokiya, and was renamed Tokyu Department

merchandising policy to reduce the range of buyers’

Store.

tasks, the training system was abolished, and the

betweenandlonger

1983

knowledgetaught,

and

and

1989,

about

the

Tokyu

categorized

The other knowledge material is a collection ofknowledge was not passed on. The two knowledge

Yamamoto’s instructions and remarks at meetingsmaterials Yamamoto left at the Tokyu Department

edited into a pocketsize book entitled Yamamoto,Store are held personally by senior employees, but

Munekazu genkouroku: Shoubai no michi [Words ofare not used organizationally. A different “Buyers

Yamamoto Munekazu: Virtue of merchants). This

Manual” currently used inside Tokyu includes

book was prepared in 1972, after Yamamoto’s death,neither the knowledge introduced through theas a lasting memorial and to pass his instructions on
14

53

Tobita (2001). pp. 52-53.

Miyazoe

original “Buyers Manual” nor the merchandisesites of the new workplace, and establishedcategorization found in the “MD Notes” provided byeducation opportunities such as “PCA School”

Yamamoto Munekazu.

(Matsuya) and “Tobu School” (Tobu Department
Store).

3-3. Transfer accompanying personal moves

When Yamamoto Munekazu moved to the

The transfer of the “Buyers Manual” and “MD

Tokyu Department Store (1960s), both the “Buyers

Notes” among corporations was the direct result ofManual” and “MD Notes” were introduced. For

the movement of management staffs to otherseveral years after joining Tokyu, Yamamoto was too

corporations. The time-line of the movement ofbusy with management reorganization and businessdepartment store managers to other department

improvement to satisfactorily educate merchandisers

stores is shown in Figure 1 and Figure 2. First,

on an OJT basis, unlike during his days at Isetan. 15

Yamamoto,theThis is quite different from the case with Yamanaka,

internalization of the “Buyers Manual” and thewho actively worked to transfer merchandisingsophistication of merchandizing at Isetan, moved toknowledge to Matsuya, then to the Tobu Department

the Tokyu Department Store (then the Toyoko

Store. This is assumed to account for the fact that

Department Store) in 1963. Next, Yamanaka moved

merchandising knowledge did not take root in theto Matsuya in 1976, and then to the Tobu

Tokyu Department Store. 16

who

had

taken

chargeofDepartment Store in 1990. The “Buyers Manual”
and the “MD Notes” were both transferred to the

3-4. Easier transfer of knowledge with an

department stores by the two senior managers.

intensive, simple concept

Recently, certain managers have moved from Isetan

Finally I found that the simpler the format of ato Matsuzakaya, Odakyu Department Stores, andknowledge material is, the more easily theothers.

knowledge is transferred and spread. Isetan’s “MD

Since

these

peoplehad

experienced

merchandising at Isetan based on only the “MD
15

Training in the Manager System conducted as part ofbusiness improvement was also given by external
consultants. (Saito, 1994, pp. 188-190).
16
The Japanese version of the “Buyers Manual” waspublished between 1961 and 1963, while new
department stores opened during these years (Odakyu
Department Stores, Tobu Department Stores, etc.) andmany department stores nationwide purchased it, but
how it was took into practice is unclear. It is assumed
that, rather than introducing and utilizing merchandisingknowledge from the “Buyers Manual,” these new
department stores placed more importance on inviting
ready-to-work human resources into management fromestablished kimono-shop-turned-department-stores suchas Mitsukoshi, Takashimaya, and Daimaru to achieveearlier practical operation.

Notes,” and not the “Buyers Manual,” weretransferred to the new workplace. They brought only
the knowledge they had been given. This transfer
was the direct result of personnel changes. As
regards the “MD Notes,” not only was the tangible
material transferred, but also the new managers
applied and inculcated merchandising knowledge bydirectly training employees at the actual business54

Transfer of knowledge related to the management of department storesNotes” were so simplified that users were able to4-1. Creativity of Isetan’s development of “MDkeep only the headline of each item in mind.

Notes”

Employees easily understood what they should do,

Isetan independently developed their “MD Notes” as

and the notes were portable so that users could

standards for assortment and department deployment

always carry them for ease of reference. Thus, it was

based on ideas in the U.S. “Buyers Manual.” In othera very effective format by which to transfer

words, this was a case of the internalization ofknowledge.

Munekazu

knowledge introduced from the outside. No edition

Genkouroku [Words of Yamamoto Munekazu] usedof the NRMA “Buyers Manual” includes concepts

in the Tokyu Department Store also provided

similar to those in the “MD Notes.” The section thatstandards for categorized merchandising, and wasisdesigned as a portable book, but its contents were

“Merchandising Assortment” (pp. 65-71 of the 1957

expressed in sentences, so users were required to

edition, and pp. 95-103 of Volume 1 of the Japaneseread and understand it. I assume that this is why itversion), which emphasizes the importance of

did not take root in Tokyu Department Store.

assortment according to categorization by size, color

In

contrast,

Yamamoto

closestto

Isetan’s“MD

Notes”

istheand price, and identification of merchandise that

4. Isetan’s development of “MD Notes”

sells in a short period and that sells all year round,and its fruits

while “Classification Reports” (p. 80 of the 1957

Isetan created “MD Notes” in-house based on theedition, and p. 116 of Volume 1 of the Japanese“Buyers Manual,” and here, I will show how these

version) is highlighted. I assume that these chapters

unique “Notes” were developed by comparing themwere interpreted from Isetan’s viewpoints, arranged

with the original “Buyers Manual” produced byinto a format applicable at the time, that is, theNRMA.

scheme of categorized merchandising, and edited

In addition, I will describe what kind of

into the “MD Notes.” I speculate that the period

concrete effects Isetan’s preparation of the “MDduring which these steps were followed for theNotes” had on actual sales section designs, and on

in-house creation of the “Notes” comprised the timecommunications among employees by comparing

following the return of Kosuge Toshio to the time

Isetan with Seibu Department Store, which did notjust before Yamamoto Munekazu quit, that is, 1952

have the benefit of the “MD Notes.” Then, I will

to 1963. The 1965 edition of the NRMA “Buyers

consider the fruits of this knowledge transfer.

Manual” includes the section “Merchandising by
Classification” (pp. 18-192 of the 1965 edition),emphasizing the importance of “planning andanalysis by each customer’s demand.” When this55

Miyazoe

edition was published, Yamamoto Munekazu had

Yamanaka, Isetan officers were teaching buyers andalready moved to the Tokyu Department Store. This

sales people about merchandising focusing on

implies that Isetan’s “categorized merchandising”

whether “categorization and organization” were

and the “MD Notes” preceded the 1965 edition of

implemented. Employees were instructed to be

the NRMA “Buyers Manual.” The 1979 edition ofalwaysthe NRMA “Buyers Manual” includes detailed

described in “MD Notes” and take action at every

examples of merchandise classification, which arestage

close to being a merchandise code scheme, under themerchandise planning to departmental assortment

headline “Merchandise by Classification” (pp.

and the analysis of sales trends and results.

252-256 of the 1979 edition).

aware

of

the

of

categorized

merchandising

merchandisingprocessfromSecond, standards of categorized merchandising

It is significant that over many years there waswere applied to each employee layer and position

no standard for merchandising items at Isetan otheraccording the range under control, and analyzed andthan categorized merchandising, and a belief

managed. In concrete terms, a large category (for apermeated the employees that simply reciting thesedivision) of standards of categorized merchandisingitems and applying them would constitute complete

was allocated to the head of a division at each store,

merchandising. Since the idea of categorized

a middle-size category (for multiple departments) tomerchandising was a concept applicable to every

a section manager or buyer, and a small category (fordomain of merchandise sold at a department store,

one department) to the person in charge of aand the items of categorized merchandising weredepartment, and each person was required to plan

universal standards for merchandising, categorized

and manage based on the allocated standards.

merchandising took root in this company.

Although concrete indices such as actual pricing
within each price zone and detailed classification

4-2. Knowledge taking root inside Isetan

varied with the merchandise field, each employee

After introducing knowledge about merchandising

was able to understand the MD standards for the new

through the “Buyers Manual” edited by NRMA indivision or department immediately, and start

the U.S., and creating the “MD Notes” for internal

activities such as planning, sales, analysis anduse, how did Isetan enable this knowledge to takemanagement after personnel transfer because theroot in the company? Examining this process will

dimension and the base MD categorization wereclarify the fruits of knowledge transfer. 17

common to all the fields. Buyers were required tomake merchandising across several departments andFirst, since the days of Yamamoto andstores, but the same standards of categorized
17

Based on interviews with a director and a managerial
executive officer at the Sales Headquarters of Isetan(November and December 2004)

merchandising were applied.
56

Transfer of knowledge related to the management of department storesThird,

dimensionsofcategorized

and middle) with the demand-driven category ofmerchandising such as usage and concern were‘size,’ and the Third ladies’ wear department targeted

employed in the analysis in the “Merchandiseat adults, middle and senior. Thus, target shoppers

Information

Analysis

System.”Althoughtheand merchandise assortment were defined withdimensions

employed

were

unnecessarily

standards of categorized merchandising. This wasdetailed,

dimensions

usually

notinwidely different from conventional organizations

categorized merchandizing were used, and werebased on physical floors in conventional department

absorbed naturally by the employees.

stores, where, for example, the first floor is the first

Fourth,departmental

recognizeddevelopment

andladies’ wear department and the second floor is theorganizational design were also defined, developed

second ladies’ wear department.

and operated based on the concept of categorized

As described above, Isetan regarded its

merchandising. Therefore, at a newly opened

categorized merchandising indicated in “MD Notes”

department store, the concept of the store and theas a “Merchandising Formula” inside the company,

composition of goods were easily understood fromand while applying it to various business scenarios,

the viewpoint of categorized merchandising. At thecontinued to inherit the established merchandising“baby shop” and “teens shop” opened in the 1950s,

structure over many years without modifying it. 18

for example, the targets were babies and teenagers,
and products for these targets were displayed. In the

4-3. Difference between Isetan and Seibu

1960s, demand-driven departments such as “casual

The way in which the fruits of the knowledge aboutclothes shop,” “small size shop”, and “large size

merchandising presented in the “MD Notes”

shop” were developed one after another, but thepenetrated the Isetan employees can be clarified byconcept and the merchandise composition followed

comparison with a department store where suchthe rules of categorized merchandising, and theknowledge was not introduced. As an example,

employees easily understood them.

Isetan is here compared with the Seibu Department

Similarly, operational organizations were also

Store in terms of designing a new department store

defined based on the standards of categorized

concept and developing a department store. 19

merchandising, so their target shoppers and the18

It is evaluated highly that Isetan placed the essence ofmerchandising, that is, the concept that a department
store should voluntarily carry out merchandise planningand assortment, at the core of its management, andmaterialized and practiced its philosophy as the “MD
Notes,” while most Japanese department storesconcluded that American methods of merchandising did
not fit their commercial conventions and practices andrefused to introduce them.
19
The case of Seibu Department Store is based on myown experience as an employee of the store and on

merchandise composition were clearly identified.
For example, the ladies’ wear group division of the
Shinjuku Store was developing the First ladies’ wear
department (targeted at young) and the Secondladies’ wear department (targeted at young, adults
57

Miyazoe

The first difference is the standardization of themodifications.

Asaresultsolutionsandbusiness terms in daily use by the employees. In

modifications were realized smoothly. On the other

Isetan, terms related to categorized merchandizing

hand, Seibu often started a refit before the ideas

were given a common definition throughout theabout the target customers, usage and concern had

company. In contrast, in Seibu, terms related tobeen fully shared among buyers and shop developers,

merchandising used among management personnel

and the refitting work took a long time. Moreover,were very sensuous, and their definitions andthere were many cases where the top management

perception among employees were inconsistent.

would check the department immediately before

From the late 1980s, for example, Seibu began

opening, and point out some imperfection, and thencalling a customer segment “Mature,” but this term

the department had to be refitted again through the

did not only mean a certain age cohort, but was anight. When Yurakucho Seibu opened in 1984, formulti-sense word.

example, some departments including fashion

The second difference was in the understanding

departments were modified just before the opening.

of the sales section concept. Since Isetan devised the

Nevertheless, the top management found further

concept of a new section based on the MD Notes, its

unsatisfactory points, and staff members were forced

target shoppers, price zone, type of concern, andto correct them. The existence of “MD Notes” isusagethought to account for this difference in knowledgeofmerchandise

were

clear,

andits

merchandising policy was evenly shared amongsharing.

people from top management to sales staff at theshop front. In Seibu, although an integrated, uniform

5. Summary and discussion

store was constructed under the leadership of the

5-1. Transfer of merchandising knowledge inheadquarters’ staff, the concept did not penetrate to

department store industry

the sales front.

The first finding in this study is that knowledge

The third difference lay in sure materializationtransfer in the field of merchandising activities in theand improvement of sales departments. When adepartment store industry is shown to exist from thedepartment required a refit, Isetan completed theexamples of the “Buyers Manual” and “MD Notes.”

new department as intended by the top management

Knowledge

during the planned period. A post-opening report was

department stores in the U.S. was introduced into

made using terminology common throughout theJapan with the “Buyers Manual,” the knowledge wascompany, and so the employees could detect issues

internalized as the “MD Notes” by Isetan, and spreadand understand instructions as regards required

from Isetan to various department stores.

inmerchandising

accumulatedbyThe second finding is that materials containing
interviews with former colleagues.

58

Transfer of knowledge related to the management of department storesknowledge about merchandising were transferred“Buyers

along with management people who had been intranslated it into Japanese, but they differed greatly

charge of merchandising at Isetan, and then moved

in their subsequent continued in-house utilization.

to other department stores. The expression “along

While Isetan proceeded with in-house utilization andwith management people” represents three cases.

incorporated the material in its own “MD Notes,” noThe first case is that when a manager moved,

Manual”

almostsimultaneously

andinfluence of the “Buyers Manual” can be seen in thethat manager brought merchandising knowledge

manualmaterial into the new workplace. The management

Takashimaya. What factors have contributed to thisstaff that moved had been trained at Isetan, or had

difference in the transfer of knowledge?

the same knowledge. When Yamamoto Munekazu

forCertainbuyersconditions

currently

regardingusedinsidetransferaremoved from Isetan to the Tokyu Department Store,

assumed to exist inside companies, as there are someand Yamanaka Kan moved to Matsuya and the Tobu

differences in knowledge transfer among companies

Department Store, both the “Buyers Manual” and thethat touches the same or similar new knowledge at“MD Notes” were transferred, but when Isetan’s

almost the same time. Isetan’s case implies that the

managers moved recently to Matsuzakaya andcompany needed to establish and enhance its sales

Odakyu Department Store, only the “MD Notes”

power with knowledge about merchandising because

used personally by the managers at Isetan wereof managerial situations to which the company wastransferred. This is the second one.

exposedandits

positionintheindustry.

The third one is that the managers who moved

Enhancement of the merchandising capabilities ofprovided the buyers and sales staff at their new

the organization was a natural choice considering theworkplaces with practical education using the “MD

corporate properties it developed as it grew, and theNotes.” For example, Yamanaka established theeffects of subsequent operation strategies.

“PCA School” (Matsuya) and “Tobu School” (Tobu)

As proof of this assumption, the first factor isto assess actual merchandising at actual sales

the position of Isetan in the department store

sections,suggestindustry in the 1950s. After the end of World War II,

improvements. In addition to the transfer of thewhile many department stores resumed ordinary

knowledge

bybusiness to meet the demand to restore consumers’

managers promoted the utilization of merchandising

lifestyles, almost all the space at Isetan’s Shinjuku

knowledge.

Flagship Store had been seized and was held by the

point

out

materials,

problems

practical

andguidance

U.S. occupying forces until 1953, so the company
5-2. Conditions for knowledge transfer

was significantly behind its competitors. Under these

Isetan and Takashimaya discovered the U.S.

circumstances, it was a particularly urgent task for59Miyazoe

Isetan to restore business know-how and systems,(1957 edition), whose translation Takashimaya itself

and

had

catch

up

with

other

taken

charge

of.

Of

those

companies,

on

the

centralized

kimono-shop-turned-department-stores. By 1950,

Takashimaya

focusedMitsukoshi,

merchandising

headquarters

Daimaru,

Takashimaya,

andsystemoftheMatsuzakaya were outperforming other department

German-based Karstadt Department Store, a member

stores. In that year, Isetan’s sales were only 16.1% ofof the Continental Department Store Association,

Mitsukoshi’s, the leader at the time, compared withand dispatched multiple staff members to the

41.7% in 2000. 20 In those days, two postwar history

German company to acquire operational knowledge.

books, edited by Shimizu and Tsuchiya (1951) and

Then, Takashimaya reformed its merchandising

Tsuchiya (1955), were jointly written by department

headquarters organization in 1963 based on what it

store staff members, but Isetan participated only inlearned from Karstadt to prepare for multi-store

Shimizu and Tsuchiya (1951), and the field dealt

development toward the 1970s (from four stores inwith1963 to sixteen in 1979). 21

by

Isetan’s

staff

was

accounting,notmerchandising.

In department stores with multiple outlets such

Next, Isetan had grown, centering on its

as Takashimaya, merchandising leadership was often

Shinjuku flagship store, over many years, which

unstable,seems to have resulted in an enhancement of its

headquarters-led system, the store-led system, andmerchandisingcapabilities.

The

required

the regional division system. However, since Isetan’s

merchandisingknowledge

differed

betweenoperations centered on its Shinjuku Flagship Store,companies such as Takashimaya, Mitsukoshi andcooperation between buyers and sales people was

Daimaru,

multi-store

completed between the headquarters and the store

strategies, and Isetan, whose growth centered on thefront, so it was easier for Isetan than for other stores

flagship store. In fact, because Takashimaya needed

such as Takashimaya to extend the use of the “MDmerchandising knowledge for headquarters-driven

Notes,” and apply them to sales section development

multi-store operation, the company was making

and organization design. It can also be assumed thatefforts

because Isetan retained the head-store-driven system,

which

to

organization

hadpursueandandnationwide

study

merchandisingknowledge

shifting

to

and

fro

betweenthefrom

the merchandise division and the sales division did

multi-store-operating department stores in European

not become disconnected from each other, so thecountries in addition to the U.S., and was not relying

leadership was neither shifted nor conflicted. This

solely on the “Buyers Manual” produced by NRMA

enabledthecompanytomaintainconsistentmerchandising operations based on the “MD Notes”
20

Figures for 1950 are cited from Table 2 in Maeda(1999) p. 186, and those for 2000 from Research
yearbook on department stores. (2001), p. 55.

2160

Kurahashi (1999).

Transfer of knowledge related to the management of department stores

Figure 5. Requirements for knowledge transfer and extent of transfer■ Knowledge Transfer Requirements（a）Requirements for knowledge
FormatPossibility

Personal
Ability

Method（ｂ）Requirements for enterprises
Size of
Organization

Managerial
FeatureOrganizational
AbilityStrategic
Compatibility

Continuous
SupportBy CEO■Extent Of Transfer

Not YetTransfer ofMaterial

Utilization

Rooting

Influence(a) The requirements for knowledge to beover a long period.
I sought the conditions for knowledge transfer

transferred include (i) the format (shape) of theby analyzing related cases, in addition to Isetan,knowledge, (ii) the possibility of substitution with

Matsuya, and the Tobu Department Store, whereother knowledge, (iii) personal abilities involved inknowledge transfer took place, and Takashimaya andthe succession of knowledge on the side of the

Mitsukoshi, where the knowledge found in the “MDknowledge recipients, and (iv) methods of transfer

Notes” was not transferred, and defined the(training

conditions as (a) requirements for knowledge to berequirements for enterprises to introduce thetransferred, and (b) requirements for enterprises toknowledge include (i) the size of the organization

introduce knowledge as shown in Figure 5. 22(not only the number of employees, but whether it isatrecipients’ workplaces).

(b)

The

a single- or multi-store operation), (ii) managerial
22

Prior to World War II, Takashimaya and Daimaru wereoperating a research division with think-tank-likefunctions at their headquarters, and collecting various
types of information on issues from management tofloor section development from department storesoverseas, and studied application (Takashimaya waspublishing an in-house material entitled “ResearchMaterials,” and Daimaru issued “Research Material on
Daimaru Kimono Shop”). Two postwar books on thehistory of department stores edited by Shimizu andTsuchiya (1951) and Tsuchiya (1955), were writtenfeatures at the time of introduction (in a managerial
crisis, or as part of evolution), (iii) strategic

jointly by staff members of department stores, andMitsukoshi wrote about the purchase and sale ofmerchandise, which suggests that Mitsukoshi wasequipped with operational knowledge of a certain levelin this field from prewar days.

61

Miyazoe

compatibility, (iv) organizational abilities to absorb

the interviewee at the time of the interview, andnew knowledge, and (v) continuous support ofthe date of the interview.

persons in charge of transfer by top management.
I assume that the requirements will depend on

Daimaru

whether knowledge transfer is achieved and the

Ex Director and Head of Kyoto Store (June 4,

extent of the transfer (“transfer of materials,”2005 and August 19, 2005)“utilization,” “rooting,” or “affecting”). This study

Isetancollected and analyzed data based on the existence of

Director

tangible materials such as the “Buyers Manual” and(November 19, 2004 and December 2, 2004)

the “MD Notes” as the criteria for knowledge

Ex staff in charge of editing of corporate historytransfer. If I succeed in obtaining further interviews

Iwataya

to determine “the utilization stage”, “the rooting

Managerstage”, and “the affecting stage” for each company,

Department (May 16, 2005)

the correlations between the conditions required for

Keikyu Department Storeknowledge to be transferred and the extent of any

Ex Senior Manager of the Operation Policy

transfer may be clarified in detail.

Division (January 19, 2005 and March 14, 2005)

andManagingofthe

Executive

Management

Officer

Planning

Odakyu Department Store

Acknowledgements

Ex

I would like to express my heartfelt thanks to

Merchandising Headquarters (February 1, 2005

professors in the business and marketing field at theand June 5, 2005)

Graduate School of Economics, The University ofMatsuyaTokyo, and to the reviewers and area editors ofManager of the Personnel Department (June 23,

Ryutsu Kenkyu for their valuable comments.

2004 and January 10, 2005)

DirectorandSeniorManageroftheMitsukoshi

List of Interviewees

Staff of the Gift Sales Department of Nihombashi

Regarding the “Buyers Manual,” “MD Notes, andFlagship Store (March 9, 2004)

knowledge introduction from department stores

Staff of the Men’s Clothes and Accessories

abroad during the 1950s and 1960s, I collected

Department of Nihombashi Flagship Store (March

precious information and completed this paper

19, 2004)

thanks to interviews with the following people. I

Deputy Secretary-General of the Headquarters ofgreatly appreciate their cooperation with my work.

the Labor Union

The list provides the corporation name, the title of

Seibu Department Store62

Transfer of knowledge related to the management of department stores

Representative Director and Vice-President ofretailers. In T. Ishihara, & T. Yahagi (Eds.), 100Millennium Retailing (March 8, 2004 and Marchyears of Japan’s distribution (chap. 5). Yuhikaku.

30, 2004)(In Japanese)
Goldman, A. (2001). The transfer of retail formats

Takashimaya
Shigeru Shimizu (ex staff member of the Research

into developing economies: The example of China.

Department of the Headquarters, and the translator

Journal of Retailing, 77(2), 221-242.

of the “Buyers Manual,” and currently, Professor

Japan Department Stores Association. (1959). The

of Josai International University (June 25, 2004)

100-year history of Japan Department Stores

DeputyAssociation. Japan Department Stores Association.

SeniorManagerofthePersonnel

Department (March 12, 2004)(In Japanese)
Kacker, M. P. (1988). International flow of retailing

Tobu Department Store
Representative Director and President (June 4,

know-how: Bridging the technology gap in2004)

distribution. Journal of Retailing, 64(1), 41-67.
Kim, K. (2002). Modeling of transferability of retail

Tokyu Department Store
Statutory Auditor (January 30, 2005)

know-howManager of the Management Administration

Research, Kurume University, 8(2). (In Japanese)

Section (February 8, 2004 and August 20, 2004)

Kogut, B., & Zander, U. (1992). Knowledge of theinretailers

overseas.

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ABAS: Annals of Business Administrative ScienceVol. 5 December 2006

CHIEF EDITOR

Junjiro Shintaku

University of TokyoEDITORIAL BOARD

Makoto Abe
University of Tokyo
Takahiro Fujimoto University of Tokyo
Makoto Kasuya
University of Tokyo
Nobuo Takahashi University of Tokyo
Technical Editor: Maki Nishida, Global Business Research Center

ABAS: Annals of Business Administrative Science is published annually in December by
Global Business Research Center, Hongo, Bunkyo-ku, Tokyo, JAPAN. http://www.gbrc.jp