Growth Through Competition, Competition Through Growth : Strategic Management and the Economy in Japan

This book examines two characteristics that lie at the core of Japanese management: growth pursuit by internal investments (as opposed to acquisitions), and the intensive competition within and among Japanese firms. Odagiri also looks at how these firms maintain flexibility and efficiency under the seemingly rigid system of "lifetime" employment. This work begins with an enquiry into the financial and human aspects of the firm, with particular emphasis on its human portion. The motivation, behavior, and organization of Japanese management as well as the consequences of the system on the Japan's industrial organization and economy are explored. Emphasis is placed on the fact that competition is at the center of the Japanese economy and management style to the same, if not a greater, degree as in the West. This competition is enhanced by the growth preference of the Japanese management style and it also, in turn, makes growth possible. Contents......Page 8 List of figures and tables......Page 12 I. HOW IT WORKS......Page 16 1.1. The Firm as a Collection of Human Resources......Page 18 1.2. Growth Preference and Competition: Two Key Concepts......Page 20 1.3. Competition: Alternative Concepts......Page 22 1.4. Japanese Management as Viewed in Past Studies......Page 35 1.5. The Plan of the Book......Page 37 2.2. The Pattern of Share Ownership......Page 44 2.3. The Influence of Financial Institutions and Inter-Company Shareholdings......Page 50 2.4. The Power of Managers......Page 55 2.5. The Background of Managers......Page 59 2.6. Summary and Implications for Management Motivation......Page 62 3.1. Labour Practices in Japanese Firms: The Stereotype......Page 65 3.2. The Reality......Page 67 3.3. Employment Adjustment......Page 73 3.4. Skill Formation: Training and Rotation......Page 81 3.5. Internal Competition for Promotion......Page 88 3.6. Conclusion......Page 93 4.1. Growth Preference......Page 95 4.2. A Model of Corporate Growth......Page 100 4.3. Investment Behaviour......Page 104 4.4. The Mode of Growth......Page 109 4.5. Research and Development......Page 114 4.6. Conclusion......Page 118 II. HOW IT ORGANIZES......Page 120 5.1. Introduction: Why Are There Fewer Mergers and Acquisitions in Japan?......Page 122 5.2. The Trend of Mergers: The JFTC Data......Page 126 5.3. Mergers and Acquisitions in Japan, 1980–1987......Page 127 5.4. Are Mergers and Acquisitions Profitable or Contributing to Growth?......Page 141 5.5. Which Mergers and Acquisitions Are More Successful?......Page 145 5.6. What firms Are Undertaking Mergers and Acquisitions?......Page 147 5.7. Conclusion......Page 150 6.1. Introduction......Page 153 6.2. The Functional as Opposed to the Divisional Form......Page 155 6.3. Hive-off......Page 161 6.4. Manufacturer–Supplier Relationships......Page 168 6.5. Keiretsu......Page 178 6.6. Conclusion......Page 181 7.1. Introduction......Page 183 7.2. The Zaibatsu before the War......Page 185 7.3. The Dissolution of the Zaibatsu......Page 188 7.4. Business Groups Today......Page 191 7.5. Performance of Business Groups......Page 205 7.6. Conclusions and Speculations on the Future of Groups......Page 211 III. HOW IT AFFECTS......Page 216 8.1. Introduction......Page 218 8.2. Market Structure......Page 221 8.3. Company Profit Rates......Page 224 8.4. Persistence of Profits......Page 232 8.5. Changing Behavioural Modes of Oligopolists......Page 235 8.6. Conclusion......Page 245 Appendix: Accounting Rules and Profit Rates: International Differences......Page 249 9.1. Introduction......Page 251 9.2. A Model of Labour-Hoarding......Page 254 9.3. Application to Japan's Experience......Page 260 9.4. Price Mark-up and Business Fluctuation......Page 263 9.5. Conclusion......Page 270 10.1. Introduction......Page 272 10.2. An Equilibrium Model of a Corporate Economy......Page 274 10.3. Growth without Internally Generated Productivity Increase......Page 277 10.4. Growth with Internally Generated Productivity Increase......Page 278 10.5. Interpreting Japan's Economic Growth......Page 280 10.6. Rate of Return and Rate of Profit......Page 284 10.7. Conclusion......Page 289 Appendix: Macro-Equilibrium in a Corporate Economy......Page 292 11.1. Introduction......Page 295 11.2. Antimonopoly Policy......Page 297 11.3. Industrial Policy......Page 305 11.4. Technology Policy......Page 311 11.5. A Case-Study: The Computer Industry......Page 318 11.6. Conclusion......Page 325 12.1. Growth Preference, Competition, and Accountability Revisited by Way of Summary......Page 327 12.2. Japanese Management Abroad......Page 334 12.3. Investment in Overseas Distributions......Page 339 12.4. Acquisitions of Foreign Firms, Acquisitions by Foreign Firms......Page 347 12.5. What Can We Expect in the Future?......Page 350 Bibliography......Page 355 D......Page 372 K......Page 373 O......Page 374 S......Page 375 Y......Page 376 I......Page 378 P......Page 379 W......Page 380 Y......Page 381

this Book Examines Two Characteristics That Lie At The Core Of Japanese Management: Growth Pursuit—not By Acquisitions—but By Internal Investments, As Well As The Intensive Competition Within And Among Japanese Firms. Odagiri Also Scrutinizes The Manner In Which These Firms Maintain Flexibility And Efficiency Under The Seemingly Rigid System Of Lifetime Employment. This Work Begins With An Enquiry Into The Financial And Human Aspects Of The Firm, With Particular Emphasis On Its Human Portion. The Motivation, Behavior, And Organization Of Japanese Management As Well As The Consequences Of The System On The Japan's Industrial Organization And Economy Are Explored. Emphasis Is Placed On The Fact That Competition Is At The Center Of The Japanese Economy And Management Style To The Same, If Not Greater, Degree As In The West. It Is This Competition That Is Enhanced By The Growth Preference Of The Japanese Management Style And Is, In Turn, That Which Makes Growth Possible.

Two particularly distinctive features of Japanese management are growth pursuit--not by acquisitions, but by internal investment--and intensive competition within and between Japanese firms. This book examines these two central aspects and also looks at how Japanese firms maintain efficiency and flexibility under the apparently rigid system of "lifetime" employment. The author begins by enquiring into the financial and human aspects of the firm with a particular emphasis placed on the human side. The motivation, behaviour, and organization of Japanese management are discussed and the consequences of Japan's management system on its industrial organization and macroeconomy are examined. Throughout the book, it is emphasized that competition is at the heart of the Japanese economy and management to the same, if not to a greater degree than in the West. This competition is enhanced by the growth preference of Japanese management, and competition in turn makes growth feasible This book examines two central aspects of Japanese management - growth pursuit by internal investment (as opposed to acquisition), and intensive competition within and between Japanese firms. It also looks at how Japanese firms maintain efficiency and flexibility under the apparently rigid system of 'lifetime' employment. The author begins by enquiring in to the financial and human aspects of the firm with a particular emphasis placed on the human side. T he motivation, behaviour, and organization of Japanese management are discussed and the consequences of Japan's management system on its industrial organization and macroeconomy are examined. Throughout the book, it is emphasized that competition is at the heart of the Japanese economy and management to the same, if not to a greater degreee than in the West. This competition is enhanced by the growth preference of Japanese management, and competition in turn makes growth feasible. This book examines two factors which are at the heart of Japanese management - the pursuit of growth and the intensive competition within and between Japanese firms. The author looks at how they interact and how they affect economic efficiency, stability, and dynamism. He avoids popular cultural/sociological explanations and applies economic principles to understanding the Japanese firm. An examination of the pursuit of growth and the intensive competition within and between Japanese firms, this title looks at how they interact and how they affect economic efficiency, stability, and dynamism. He avoids popular cultural/sociological explanations and applies economic principles to understanding the Japanese firm