This paper provides new practical viewpoints regarding the knowledge management and leadership theory of project management through an in-depth case study. It argues that community leaders can develop a concept of a business community comprised of diverse types of business and processes to achieve business innovation. The paper studies a regional initiative in Japan towards electronic networking that illustrates the use of information and multimedia technologies as an instance of the latest business case of strategic community management. The case study shows how community leaders have created networked strategic communities in which the central government, regional governments, universities, hospitals, private businesses and non-profit organizations take part in the advancement of regional electronic networking. The paper provides new practical viewpoints regarding the knowledge management and leadership theory of project management.