Japanese Management in the Low Growth Era: Between External by Daniel Dirks, Jean-Francois Huchet, Thierry Ribault

By Daniel Dirks, Jean-Francois Huchet, Thierry Ribault

Japanese agencies are in the middle of the main protracted monetary situation of their post-war historical past. the tip of the "bubble economic system" has ended in an extended period of low progress. this alteration within the normal enterprise surroundings has profound outcomes for the administration and the association of company Japan, in addition to for the idea of the japanese company. The contributions to this booklet conceal a extensive variety of topics, from the ideas and organizational constructions to the administration of human assets and innovation techniques within the Nineteen Nineties. those alterations are systematically commented on through box experts from in a foreign country, specifically Europe, pertaining to the placement in Japan to similar advancements in different countries.

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As VCRs became matured products, Kotobuki again diversified, this time into computer peripherals such as optical disk drives. The diversifications were made with the assistance of MEl's R&D centres and sales organizations. Developing the optical disc drive, Kotobuki thus enjoyed the cooperation of a research lab within MEl that had earlier developed optical devices based on the technology of CD players. This research lab had then promoted its ideas to various divisions and affiliates. Kotobuki was the fastest in responding, manufacturing and supplying optical disk drives to group-external customers on an Externalization of Organizations and the Dual Governance Structure 25 OEM basis, arranged through the sales force of MEL Kotobuki's success in new product development was made possible due to its speedy reactions and its flexible capitalization on MEl's resources.

The wage levels of small firms are usually lower than those of large corporations. Externalization therefore is a means to capitalize on this wage difference (ODAGIRI 1992). Small firms are usually less constrained by the social norm that employees should not be fired. Externalization builds on this flexibility of small firms. These reasons may explain some cases of externalization. For instance, NEe has established manufacturing affiliates in developing areas in Japan, a possible reaction to local labour market conditions (availability of labour, lower wage levels).

If the company buys the stock, insider trading may be suspected. Thus, the stock market's evaluation is independent from MEL While difficult to explain how exactly the market evaluates a company, numerous criteria are taken into consideration: profitability, market positions, top management leadership, technological resources, organizational culture, quality of human resources and so on. The multiplicity of criteria makes it difficult for the subsidiaries to improve their evaluation simply by temporary measures such as creating short-term profits while sacrificing long-term profit potentials.

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