Japanese Firms in Transition, Volume 17: Responding to the Globalization Challenge (Advances in International Management)

The decade long period of slow growth in Japan has raised provocative questions relating to theory development in international management. Japan's "lost decade" has led to changes in both overall strategy and to increased variety in individual firm responses to slower growth. The combination of internal changes in the Japanese domestic business environment and external changes in the international environment has generated strong incentives for Japanese firms to seek new ways to structure and compete. These adjustments have necessitated changes not only in the management of Japanese firms domestically, but in overseas markets as well. This volume includes contributing chapters from authors based in Asia, Europe, and North America to examine how Japanese firms have responded to the challenge of a slower domestic economy and a more competitive international economy. Articles were selected to address three aspects of this issue: adaptation to domestic environmental changes, adjustments in inter-organizational relations, and the experience in foreign MNCs in Japan and Japanese MNCs abroad 01......Page 1 02......Page 4 03......Page 6 ADAPTABILITY AND CHANGE IN JAPANESE MANAGEMENT PRACTICE: A LONGITUDINAL INQUIRY INTO THE BANKING INDUSTRY - THROUGH THE BUBBLE ECONOMY AND BEYOND......Page 11 JAPAN - PRECEDENCE OF INDUSTRIAL AND FINANCIAL CHANGE......Page 12 Convergence, Divergence, and Crossvergence......Page 13 Why Banking?......Page 15 Theoretical Foundation......Page 16 A Typical Culture Map of Japan......Page 17 INDIVIDUALISM/COLLECTIVISM......Page 18 Collectivism in Historic Perspective......Page 19 POWER DISTANCE......Page 20 Power Distance in Historic Perspective......Page 21 UNCERTAINTY AVOIDANCE......Page 22 Uncertainty Avoidance and Banking in Japan......Page 23 RESULTS/METHODOLOGY......Page 25 Collectivism/Individualism......Page 30 Uncertainty Avoidance......Page 31 Power Distance......Page 32 Crossvergence......Page 33 REFERENCES......Page 35 INTRODUCTION......Page 39 RECENT EVOLUTION OF THE JAPANESE SYSTEM OF GOVERNANCE: THE END OF THE J-MODEL?......Page 41 Legal Changes and their Impact on Governance......Page 42 Weakening of Control by Banks......Page 45 Increased Pressure from Shareholders......Page 47 Monocausal Approaches......Page 48 The Political Approach......Page 49 Going Beyond Monocausal Approaches: The Theory of Institutional Change Applied to Systems of Corporate Governance......Page 50 Static analysis: Decision-making in a given institutional framework......Page 51 Dynamic analysis: The process of institutional change......Page 52 From Institutional Change to the Dynamics of Corporate Governance Systems......Page 53 From Financial Crisis to the Sogo Bankruptcy......Page 58 Comparison Between the Sogo Case and the Theoretical Framework......Page 61 CONCLUSION......Page 65 REFERENCES......Page 66 INTRODUCTION......Page 69 General Assumption: Deregulation Leads to Decreasing Amakudari......Page 74 Amakudari as a Way of Enforcing Industrial Policy......Page 75 Amakudari, Industrial Policy and Keiretsu......Page 76 The Paradigm Shift: From State Regulation to Self-Regulation......Page 77 Data......Page 79 Determining the Influence of the Institution......Page 80 Determining the Role in the Board of Directors......Page 82 ANALYSIS......Page 83 Industry-Bureaucracy Networks and Industrial Policy......Page 84 Amakudari, Industrial Policy, and Keiretsu......Page 86 Amakudari Networks and Corporate Success......Page 88 Integration of Findings: The Amakudari Network Production Function......Page 90 CONCLUSION......Page 92 REFERENCES......Page 94 THE WINDS OF CHANGE IN JAPANESE TRADE POLICY: TEXTILE MULTINATIONALS AND INTRA-INDUSTRY CLASHES OVER MARKET PROTECTION......Page 97 FROM CROSS-SECTORAL TO INTRA-SECTORAL CORPORATE PRESSURES......Page 98 JAPANESE CROSS-SECTORAL PRESSURES AND THE WTO......Page 100 THE TEXTILE MNCS: FOREIGN PRODUCTION AND THE POLITICIZATION OF JAPAN'S TRADE POLICY......Page 103 Who are the Japanese Textile MNCs? Shifting Composition of Textile FDI Flows......Page 104 The Second Boom in Japanese Textile FDI......Page 105 THE BATTLE OF THE MULTINATIONALS: TRADE REMEDIES AND REVERSE IMPORTS......Page 108 FROM CORPORATE PREFERENCES TO TRADE SAFEGUARDS: JAPAN-CHINA DISPUTE......Page 113 CONCLUSIONS......Page 115 REFERENCES......Page 118 INTRODUCTION......Page 120 KEIRETSU TIES IN THE JAPANESE ECONOMY......Page 121 Benefits of Keiretsu Organization......Page 123 MODERN KEIRETSU TIES......Page 124 Evolution of Japanese Equity Markets......Page 125 Changing Banking Relationships......Page 126 RESEARCH PROPOSITIONS......Page 128 Sample......Page 131 Methodology......Page 132 Keiretsu vs. Independent Firms in 1992 and 1997......Page 134 EVOLVING KEIRETSU TIES......Page 136 CONCLUSIONS AND IMPLICATIONS FOR FUTURE RESEARCH......Page 139 REFERENCES......Page 140 INTRODUCTION......Page 144 Value Creation from Downsizing......Page 145 Changing the Strategic Focus from Growth to Cost Cutting......Page 149 M&As in the Banking Industry......Page 151 The Post-World War I Era......Page 153 The Convoy System......Page 155 Uniquely Japanese?......Page 157 INDUSTRIAL GROUP CONSOLIDATION......Page 158 SUMMARY AND CONCLUSIONS......Page 159 REFERENCES......Page 161 DYAD AND NETWORK: MODELS OF MANUFACTURER-SUPPLIER COLLABORATION IN THE JAPANESE TV MANUFACTURING INDUSTRY......Page 163 INTRODUCTION1......Page 164 THEORIES OF BILATERAL EXCHANGE......Page 166 The Industry......Page 168 Methodology......Page 170 The Matsushita Kyoei-Kai as a Case of Network Governance......Page 171 The Sanyo Electric Case......Page 175 LEVELS OF COOPERATION AND MODES OF GOVERNANCE......Page 177 Differences by Parts......Page 179 Differences by Governance Form......Page 180 CONCLUSIONS......Page 184 REFERENCES......Page 188 SAME RULES, DIFFERENT GAMES: VARIATION IN THE OUTCOMES OF "JAPANESE-STYLE" SUPPLY RELATIONSHIPS......Page 190 INTRODUCTION......Page 191 PRIOR RESEARCH ON JAPANESE SUPPLY RELATIONSHIPS......Page 192 Low Generalized Trust......Page 195 Scarce, Ineffective Transaction-Costs Engineers......Page 196 PROPOSITIONS......Page 197 THE NOTEBOOK COMPUTER INDUSTRY......Page 198 Data......Page 199 Use of Long-Term Suppliers......Page 201 Low Level of Outsourcing......Page 203 Discussion......Page 206 CONCLUSION......Page 208 REFERENCES......Page 212 THE TRANSNATIONAL CHALLENGE: PERFORMANCE AND EXPATRIATE PRESENCE IN THE OVERSEAS AFFILIATES OF JAPANESE MNCs......Page 216 INTRODUCTION......Page 217 Predictors of Performance......Page 218 Predictors of Expatriate Presence......Page 221 Variables Used in the Study......Page 224 Dependent Variables......Page 226 Independent and Control Variables......Page 227 Subsample Descriptive Statistics......Page 228 Multivariate Analyses: Analysis of Performance......Page 229 Interpretation of Performance Results......Page 231 Multivariate Analysis: Expatriate Presence......Page 233 Interpretation of Expatriate Presence Results......Page 235 DISCUSSION......Page 236 CONCLUSION......Page 237 REFERENCES......Page 239 PREDOMINANT POSITION OF JAPANESE BUSINESS IN ASIA......Page 244 Management by Japanese Persons......Page 245 Management in Japanese......Page 248 Japanese Central Hub Model......Page 250 The Successful Japanese Production System......Page 251 Limits of Japanese-Style International Management......Page 252 CHINESE MANAGEMENT AND FREE-MARKET COMPETITION......Page 253 Investment in Asia and Hollowing out in Japan......Page 255 Resistance to Change......Page 257 Management by Internally Promoted Old Men......Page 258 CONCLUDING REMARKS......Page 259 REFERENCES......Page 260 INTRODUCTION......Page 262 THEORETICAL BACKGROUND AND HYPOTHESES......Page 264 Global Orientation of Top Management......Page 265 Boundary Spanning Structures and Processes......Page 267 Geocentrism......Page 268 Sample......Page 269 Research Methods......Page 270 Global Orientation of Top Managers......Page 271 Boundary Spanning Structures, Processes, and Practices......Page 272 Data Analysis......Page 273 RESULTS......Page 275 DISCUSSION......Page 281 CONCLUSIONS AND LIMITATIONS......Page 282 REFERENCES......Page 284 Global Orientation......Page 287 Geocentrism......Page 288 Cosmopolitan Background......Page 289 CHANGES IN THE DETERMINANTS OF PROFIT: A STUDY OF FOREIGN SUBSIDIARIES IN THE JAPANESE MANUFACTURING INDUSTRIES IN THE 1980s AND 1990s......Page 290 INTRODUCTION......Page 291 The Transition of Inward FDI in Japan......Page 293 Firm-Specific Factors......Page 295 Structural Impediment: Distribution......Page 296 Entry Mode......Page 297 Changes in the Determinants of Profits......Page 299 Exploration on Joint-Venture Effects......Page 301 Data......Page 302 Performance Measure......Page 303 Independent Variables......Page 305 Interactions......Page 307 Firm Factors and a Structural Impediment......Page 309 Comparison Between the Two Time Periods......Page 312 JV Effects......Page 314 DISCUSSION AND CONCLUSION......Page 320 REFERENCES......Page 323 This Volume Includes Contributing Chapters From Authors Based In Asia, Europe, And North America To Examine How Japanese Firms Have Responded To The Challenge Of A Slower Domestic Economy And A More Competitive International Economy. Articles Were Selected To Address Three Aspects Of This Issue: Adaptation To Domestic Environmental Changes, Adjustments In Inter-organizational Relations, And The Experience In Foreign Mncs In Japan And Japanese Mncs Abroad.--jacket. Preface / Thomas Roehl, Allan Bird -- Adaptability And Change In Japanese Management Practice : A Longitudinal Enquiry Into The Banking Industry- Through The Bubble Economy And Beyond / Lane Kelley, Brent Macnab, Reginald Worthley, Ian Pagano, Lenard Huff -- Learning Process And The Dynamics Of Corporate Governance Systems : The Case Of Japan / Christine Pochet -- The Changing Trend In Links Between Bureaucracy And The Private Sector In Japan / Andreas Moerke -- The Winds Of Change In Japanese Trade Policy : Textile Multinationals And Intra-industry Clashes Over Market Protection / Saadia Pekkanen, Mireya Solis -- Keiretsu Organization In A Changing Economic Context : The Evolution Of Debt And Equity Ties Among Keiretsu Firms / Jean Mcguire, Sandra Dow -- M & As In The Japanese Banking Industry : The More Things Change? / Elizabeth L. Rose, Kiyohiko Ito -- Dyad And Network : Models Of Manufacturer-supplier Collaboration In The Japanese Tv Manufacturing Industry / Didier Guillot, James R. Lincoln -- Same Rules, Different Games : Variation In The Outcomes Of Japanese-style Supply Relationships / Glenn Hoetker -- The Transnational Challenge : Performance And Expatriate Presence In The Overseas Affiliates Of Japanese Mncs / Schon Beechler, Vladimir Pucik, John Stephan, Nigel Campbell -- Decline Of Japan's Predominance In Asia / Hideki Yoshihara -- Does It Really Matter If Japanese Mncs Think Globally? / Schon Beechler, Orly Levy, Sully Taylor, Nakiye Boyacigiller. Edited By Thomas Roehl, Allan Bird. Includes Bibliographical References. Examines how Japanese firms have responded to the challenge of a slower domestic economy and a more competitive international economy. This work addresses three aspects of this issue: adaptation to domestic environmental changes, adjustments in inter-organizational relations, and the experience in foreign MNCs in Japan and Japanese MNCs abroad