Development of Organizational Capability from Entrepreneurial Identity: Case Study of Hirohisa Yamamoto and Yamamoto Precious Metal Co., Ltd

Entrepreneurs' identities affect how they do business. These identities also become ingrained into the organizations led by entrepreneurs and affect the organizational behavior of their members. If members' organizational behavior in the workplace encourages organizational learning and fosters formation of organizational capabilities, a competitive advantage may develop. Drawing on the Observe, Assess, Design, Implement - Shared Mental Model theoretical framework that clarifies the relationship between individual and organizational learning, this study examined the mechanism by which entrepreneurs' identity formation causes organizational behavior and learning, thereby influencing competitive advantage. The example of Yamamoto Precious Metal Co., Ltd.'s successful establishment of a competitive advantage in the dental precious metals field provides a detailed description of the mechanism. As co-founder, Chief Executive Officer Hirohisa Yamamoto led Yamamoto Precious Metal to hold the top share in the Japanese market of dental alloys for metal-ceramic restoration. This study examined the mechanism by which the entrepreneurial identity of Hirohisa Yamamoto formed the organizational capability of Yamamoto Precious Metal and ultimately led to its competitive advantage.