Microfoundations of kaizen activities: the role of the team knowledge process and employee voice behavior in the foreign subsidiaries of Japanese companies

Purpose This study aims to examine the microfoundations of kaizen activities in Japanese companies’ foreign subsidiaries, with a focus on team knowledge processes and employee voice behavior. It explores how team–member exchange (TMX), transactive memory systems (TMSs) and employee voice behavior enhance kaizen performance by facilitating knowledge sharing, structuring and combining within work teams. Design/methodology/approach This study uses a knowledge-based view (KBV) and organizational learning theory to test a moderated serial mediation model, examining the influence of headquarters’ (HQ) guidance on the pathway from TMX to kaizen performance through TMSs and employee voice behavior. Data from 371 supervisor–employee dyads across 66 teams in 7 Japanese manufacturing companies in Thailand were analyzed using multilevel path analysis to capture both team- and individual-level dynamics. Findings The findings support the model, showing that TMSs and employee voice behavior sequentially mediate the relationship between TMX and kaizen performance. Furthermore, Japanese HQ guidance moderates the effect of TMX on TMSs, with stronger relationships observed when HQ guidance is high, indicating HQ’s critical role in facilitating procedural knowledge transfer. Practical implications Kaizen performance improves through a KBV, whereby frequent team interactions facilitate the development of a collective knowledge structure. This structure fosters employee voice behavior, which is essential for refining ideas and driving continuous improvement. Both declarative and procedural knowledge are key to successful kaizen activities. Originality/value This study offers a micro-level framework that integrates TMX, TMSs and employee voice behavior to explain team knowledge processes in kaizen activities from the KBV. By incorporating both declarative and procedural knowledge within an organizational learning perspective, it highlights how team dynamics and HQ guidance jointly shape kaizen performance in foreign subsidiaries.