The Business Reinvention of Japan: How to Make Sense of the New Japan and Why It Matters

by Ulrike Schaede

Overview

After two decades of reinvention, Japanese companies are re-emerging as major players in the new digital economy. They have responded to the rise of China and new global competition by moving upstream into critical deep-tech inputs and advanced materials and components. This new "aggregate niche strategy" has made Japan the technology anchor for many global supply chains. Although the end products do not carry a "Japan Inside" label, Japan plays a pivotal role in our everyday lives across many critical industries.

This book is an in-depth exploration of current Japanese business strategies that make Japan the world's third-largest economy and an economic leader in Asia. To accomplish their reinvention, Japan's largest companies are building new processes of breakthrough innovation. Central to this book is how they are addressing the necessary changes in organizational design, internal management processes, employment, and corporate governance. Because Japan values social stability and economic equality, this reinvention is happening slowly and methodically, and has gone largely unnoticed by Western observers. Yet, Japan's more balanced model of "caring capitalism" is both competitive and transformative, and more socially responsible than the unbridled growth approach of the United States.

Product Details

ISBN-13:	9781503612259
Publisher:	Stanford University Press
Publication date:	06/16/2020
Pages:	280
Sales rank:	735,504
Product dimensions:	6.00(w) x 9.00(h) x (d)

About the Author

Ulrike Schaede is Professor of Japanese Business at the School of Global Policy and Strategy, and Director of the Japan Forum for Innovation and Technology, at the University of California San Diego. She is the author of seven books, including Choose and Focus: Japanese Business Strategies for the 21st Century (2008).

Table of Contents

Preface vii

1 Introduction: The Reinvention 1

2 The Setting: Corporate Renewal in a Tight Business Culture 21

3 The Background: Japan's Economic Rise-Stability Through Lifetime Employment 43

4 The Core Concept: Aggregate Niche Strategy 68

5 The Impact: Japan's Role in Global Business 94

6 Management Change: Governance, Stewardship, and Executive Pay 114

7 Financial Markets: Private Equity and M&A 137

8 Managing the Reinvention: Culture Change 158

9 Employment and Innovation: The Reinvention of the Kaisha 181

10 Japan Going Forward: Reinventing for the Digital Economy 203

Notes 221

References 239

Index 251

Editorial Reviews

"Ulrike Schaede's new book combines an invaluable primer on Japanese business culture with a striking analysis of Japan's little understood strategy for producing enduring economic strength based on manufacturing excellence and constant, managed change. I came away with renewed admiration for the country's political and corporate leadership, and Japan's ability to forge a successful economic future despite the many daunting challenges one often hears about."—Ambassador Ira Shapiro, former U.S. Trade Negotiator with Japan, former Chairman of the National Association of Japan-America Societies

"This authoritative and sophisticated account of how Japanese companies have quietly reformulated how they compete in the global economy is a timely reminder why we need to pay attention to Japan. Japanese companies and their technologies remain, and will continue to remain, critically relevant in our fast-changing world."—Alberto Moel, VEO Robotics

"For more than a generation, the outside world has been ready to write off Japan's economy as yesterday's story, in contrast to the tomorrows being created elsewhere, especially in China. Ulrike Schaede clearly and convincingly lays out how out-of-touch that judgment is—and how much more impressive the creativity, flexibility, and re-invention of the Japanese business system look when examined up close. The crispness and concision of the book make it a pleasure to read, and its originality will make it useful for anyone who wants to understand the next stage in global business."—James Fallows, The Atlantic

"Schaede truly understands Japanese business strategy and culture. With deep insights and keen analysis, she offers an update on how Japanese companies are evolving to compete in the new global economy. And, she shows how they carefully harmonize social stability with economic success."—Kyota Omori, Chairman, Mitsubishi Research Institute

"A gem! Schaede links corporate culture to incentives and outcomes, and shows how Japanese firms have kept the tight corporate culture that makes things right, but add elements of the loose culture that makes the right things. She gives concrete examples of Japanese firms that got it right and how they did it."—Robert Alan Feldman, Tokyo University of Science

"Schaede's book offers an up-to-date, intriguing, rich, and easy to read account of changes in Japanese business over the last 20 years. As such, it deserves a wide readership and it will definitely enter my reading list for students."—Harald Conrad, The Journal of Japanese Studies

"Japan's economy and its evolving business systems matter, and this insightful evaluation explains how and why. A definite read."—Hugh T. Patrick, Chairman, Center on Japanese Economy and Business, Columbia Business School

"Schaede's book not only advances our view of the possibilities for Japanese business reinventions on a variety of technology frontiers, but also the broader nature of linkages that underpin the prospects for prosperity and security in Asia and beyond."—Saadia M. Pekkanen, Pacific Affairs

From the Publisher

"Schaede truly understands Japanese business strategy and culture. With deep insights and keen analysis, she offers an update on how Japanese companies are evolving to compete in the new global economy. And, she shows how they carefully harmonize social stability with economic success."

Mitsubishi Research Institute - Kyota Omori

"Ulrike Schaede's new book combines an invaluable primer on Japanese business culture with a striking analysis of Japan's little understood strategy for producing enduring economic strength based on manufacturing excellence and constant, managed change. I came away with renewed admiration for the country's political and corporate leadership, and Japan's ability to forge a successful economic future despite the many daunting challenges one often hears about."

former Chairman of the National Association of Japan-America Societies - Ambassador Ira Shapiro

"This authoritative and sophisticated account of how Japanese companies have quietly reformulated how they compete in the global economy is a timely reminder why we need to pay attention to Japan. Japanese companies and their technologies remain, and will continue to remain, critically relevant in our fast-changing world."

VEO Robotics - Alberto Moel

"Schaede's book not only advances our view of the possibilities for Japanese business reinventions on a variety of technology frontiers, but also the broader nature of linkages that underpin the prospects for prosperity and security in Asia and beyond."

Pacific Affairs - Saadia M. Pekkanen

"A gem! Schaede links corporate culture to incentives and outcomes, and shows how Japanese firms have kept the tight corporate culture that makes things right, but add elements of the loose culture that makes the right things. She gives concrete examples of Japanese firms that got it right and how they did it."

Tokyo Universityof Science - Robert Alan Feldman

"Schaede's book offers an up-to-date, intriguing, rich, and easy to read account of changes in Japanese business over the last 20 years. As such, it deserves a wide readership and it will definitely enter my reading list for students."

The Journal of Japanese Studies - Harald Conrad

"For more than a generation, the outside world has been ready to write off Japan's economy as yesterday's story, in contrast to the tomorrows being created elsewhere, especially in China. Ulrike Schaede clearly and convincingly lays out how out-of-touch that judgment is—and how much more impressive the creativity, flexibility, and re-invention of the Japanese business system look when examined up close. The crispness and concision of the book make it a pleasure to read, and its originality will make it useful for anyone who wants to understand the next stage in global business."

The Atlantic - James Fallows

"Japan's economy and its evolving business systems matter, and this insightful evaluation explains how and why. A definite read."

Columbia Business School - Hugh T. Patrick