Published on October 2, 2023
Job titles and other details are as of the time of publication.
(The interview was conducted in Japanese and was thereafter translated into English.)

Everything is service—the worldview of service-dominant logic

I specialize in service management.

Past research on services categorized industries, for example, distinguishing service industries from manufacturing. Service management at that time focused on the characteristics distinguishing services from goods, including “simultaneity,” where production and consumption occur at the same time; “perishability,” where services cannot be stored; “intangibility,” where services cannot be seen or touched; and “heterogeneity,” where the nature of the service depends on the provider, and to whom, when and where the service is delivered. By focusing on these characteristics unique to services and absent in goods, companies were able to identify the management challenges these characteristics created and develop management principles to address them. This approach defined service management from the 1980s through the early 2000s.

To tackle the management challenges posed by the unique characteristics of services, it is essential to integrate marketing management, human resources management, and operations management at the exact time and space where interactions with customers occur, rather than addressing each function separately.

For instance, Starbucks is known for basing its strategy on providing a “Third Place,” a space that is neither home nor workplace. “The Third Place” is a setting where people savor aromatic, delicious coffee, unwind in a comfortable environment, and enjoy friendly interactions with the staff. To create this environment, it is essential to integrate marketing management focused on customer interactions, human resources management that enhances employee skills and motivation, and operations management that ensures efficient and effective store operations—all at the precise moment and place of customer interaction. To support this integration, frameworks such as the Service Profit Chain were developed.

Since the 2000s, service management has evolved to view everything as service, rather than separating goods from services. For example, it is difficult to separate the iPhone from its applications as it embodies both product and services. Similarly, IoT (Internet of Things) platforms, such as Komatsu’s KOMTRAX (a wireless monitoring system for construction equipment), extend customer engagement beyond the point of purchase, enabling a continuous connection with customers through the purchase. Service management has since developed into a field that seeks to clarify the management principle of “value co-creation,” in which customer actions in using products or services are interwoven with various activities carried out by the company to create value together.

This approach views all economic and management phenomena from a service perspective and focuses on value co-creation between a company, its customers, and various external stakeholders. Known as “service-dominant logic,” this worldview not only underpins my research but also shapes my approach to education.

Being the eldest son of a kimono shop owner in Kyoto—my first step into the world

I was born the eldest of three sons to a family operating a kimono shop in Kyoto. Though it was never explicitly stated, I grew up with the expectation that one day I would take over the family business. While my parents and many of my relatives and neighbors were self-employed, two of my uncles instilled in me a deep desire to explore the outside world—one on my mother’s side who worked for a trading company and traveled internationally, and the other on my father’s side who worked for a manufacturer and regaled us with stories of his experiences in various countries.

A turning point came during my high school years. Educational reforms implemented under the administration of then-Prime Minister Yasuhiro Nakasone made it possible for students to apply to multiple national universities. I decided to apply to both Hitotsubashi University and Kobe University. While my choice was not readily supported by the people around me, the influence of my two business-minded uncles was significant. I chose these two universities out of the conviction that I would need to study business to step out into the world, ultimately enrolling in the Faculty of Economics at Hitotsubashi University.

Around the time I enrolled in 1987, Professor Ikujiro Nonaka, now an emeritus professor, joined Hitotsubashi University at the invitation of the late Professor Kenichi Imai, who was then dean of the Faculty of Commerce and later an emeritus professor. Many other faculty members, including Professor Hirotaka Takeuchi, who earned a Ph.D. in business administration in the United States and is now an emeritus professor, were also returning from overseas around this time. This period saw the launch of the International Student Exchange Program thanks to support from Josuikai, the university alumni association, and other organizations.

Enrolled in the Faculty of Economics at Hitotsubashi University, I joined Professor Takeuchi’s seminar in the Faculty of Commerce in my third year and spent a year at the Wharton School of the University of Pennsylvania through the above international student exchange program.

Alternating between theory and practice—mutual respect

Spending a year at the Wharton School prompted me to consider a career as a researcher, rather than pursuing the business path I had originally envisioned. At Wharton, I was deeply struck by how earnestly students from around the world approached their studies—not for exams but out of a genuine desire to learn. I lived in the on-campus dormitory with three roommates: a first-year student from India (who later took over his family’s diamond business), a third-year student with both German and Spanish heritage (now a professor at the University of St. Gallen in Switzerland), and an exchange student from France (who later left his engineering career to run for French president, ultimately losing out narrowly to President Macron). Students from all over the world gathered to learn, regardless of nationality. The impact of this experience did not fade after I returned to Japan; I could not shake off the thought that while I slept, they kept on studying. I believe it was during this time that I developed the mindset of valuing every moment to continue learning.

I was also inspired to pursue a research career through my involvement in two projects as a research assistant after returning to Japan. One was a project led by Professor Takeuchi in collaboration with Professor Nonaka, which later became the basis for the book The Knowledge-Creating Company (Toyo Keizai Inc.). The other was a project led by Professor Michael Porter of Harvard Business School, which involved analyzing the competitiveness of ten countries and was later published as The Competitive Advantage of Nations (Diamond, Inc.), with the Japan segment overseen by Professor Takeuchi. Professor Takeuchi, my supervisor, along with Professors Nonaka and Porter, presented invaluable opportunities for direct interaction. This experience of alternating between research and application, and between theory and practice, was not just a matter of moving back and forth; it involved respecting both worlds and actively communicating to share insights. When I learned that such a career was possible, I decided to pursue research as my way forward.

Students’ remarkable growth—the impact of education

The professors’ dedication was not limited to research activities involving large-scale projects; they were completely devoted to teaching and educational endeavors as well.

Research is a steady, ongoing effort that spans many years, or sometimes even decades, and I see it as a pursuit that contributes to humanity’s collective wisdom. Each layer of knowledge may be thin, but it forms the foundation for future layers to be built upon. Likewise, I believe that education, though distinct in nature, can offer an equally impactful contribution to humanity. Education has the potential to create profound changes over a relatively short period—sometimes just months, weeks, or even days. What other profession allows you to witness, up close, the growth and development of those you work with?

The MBA program course I teach at Hitotsubashi University Business School’s School of International Corporate Strategy (Hitotsubashi ICS) places Participant-Centered Learning at its core to maximize the benefits of mutual learning among the participants. Nearly 90% of the students are international, bringing diversity in terms of nationalities, industries, and professional backgrounds. I strive to create a learning experience that fully leverages this diversity. To facilitate this goal, I evaluate each student’s input in class discussions on a five-point scale, from +3 to -1, based on their level of contribution, and provide feedback accordingly. A score of “1” is given for contributions that advance the discussion, based on thorough preparation of case materials and statements grounded in facts and data. A score of “2” is given for contributions where the student clearly articulates their stance on an issue and explains the reasoning with both qualitative and quantitative analyses, thereby deepening the discussion or contributing to diversity by inviting differing perspectives. A score of “3” is reserved for contributions that enable the class to view an issue from a new perspective or create a timely opportunity to transition to the next major topic. In contrast, scores of “0” or “-1” are given to students who come unprepared, fail to listen to the discussion, or repeat points already raised—actions that ultimately waste the time of everyone gathered with the intention of learning together. Course preparation is demanding for both the students and me, but their attitudes toward learning and their actions that contribute to discussions change remarkably from class to class, term to term, and year to year. The joy of witnessing these transformations firsthand is truly unparalleled.

My starting point in service management—formative experiences from my family’s kimono shop

Hitotsubashi ICS is a graduate school for working professionals, and applicants are expected, through document screening and interviews, to reflect on their professional lives to date, clarify what they hope to learn during their studies, and articulate how they intend to apply that knowledge after completing the program. After admission I provide an environment that continuously encourages students to stay true to their aspirations—to remain mindful of what they aim to learn here and why. In a sense, this is the very essence of service management in practice.

So why am I so passionate about service management? It originated as a field studying services in contrast to goods, and has since evolved into a discipline that seeks to understand the logic of value co-creation through interactions between oneself and others. In both research and teaching, my ultimate goal is to create happiness in collaboration with individuals right in front of me. In reflecting on this, I realize that my starting point lies in my childhood, where I grew up in my family’s kimono shop in Kyoto and observed my parents’ dedication to sincerely serving each customer and nurturing relationships that endured over time.