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The purpose of the research was to examine the part a creative environment plays in creating the foundation for BPR efforts. A comparison between creative environments in US and Japanese companies was used to address the research question. The creative environment of each company was examined by looking at four categories of factors--people, process, output, and environment. These categories were used to organize and systematically analyze the data. In general, the researcher found that Japanese companies tend to adopt incremental business process improvement (BPI) rather than BPR. BPI is a way of life. Emphasis is placed on the 'group' rather than the individual. Since the group is emphasized, individual innovation and creativity is not generally nurtured by management. However, some Japanese companies are beginning to see the value of individual creativity. They are starting creativity training programmes for key employees. Nevertheless, it will take some time before a paradigm of individuality is generally accepted. Since US companies want to change quickly and radically to become more competitive, many are experimenting with BPR. However, a critical success factor of BPR is teamwork and cooperation. Although US companies have historically been very individualistic, teaming and nurturing is beginning to make its way into the culture of many organizations. Successful BPR hinges on changing to an environment conducive to change. Organizations that understand the importance of a change-oriented environment will have the best chance of success. It appears that US and Japanese companies are converging on similar paradigms of work. US companies are moving from "rugged" individualism to cooperation and teamwork. Japanese companies are moving from a group consensus paradigm to one that encourages individual creativity. Although US companies have a long way to go, it might be more difficult for Japanese companies. The culture in Japan is much more homogeneous. In addition, free flow of ideas has not been a part of the Japanese culture. Whether or not companies in the US embrace teamwork and individual creativity, the basic culture of the US has always been democratic and has encouraged free speech. [ABSTRACT FROM AUTHOR]