The Effect of Japan's Structural Difficulties in the 1990s on the Japanese Management Model

Karl-Guenther Illing

dic 2003 · GRIN Verlag

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Essay from the year 2003 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3 (A), University of Nottingham (Nottingham University Business School), course: East Asian Business and Society, language: English, abstract: In the decades after the second World War the Japanese economy experienced phenomenal growth. Western academics and press have often praised the Japanese management model as a major success factor for the “Japanese miracle”. Many have called for the adoption of Japanese practices in Western firms in order to remain competitive against the Far-Eastern counterparts. But in the 1990s the burst of the bubble economy and the resulting recession have lead to a change in the view on Japanese management practices. Many now see the Japanese model as outdated and ready for a thorough overhaul. This essay explores in how far the problems and structural changes that Japan experienced over the last ten to fifteen years have necessitated a radical change in her management practices. After briefly introducing the Japanese management model in the second section, several social and economic developments are discussed that might have a lasting impact in the management practices. The fourth section examines and explains observations made about the actual effect on Japanese management in the face of these developments. Finally, the essay concludes that, while incremental adjustments are taking place, rather than a radical change or, indeed, a westernisation of Japanese management, a more fundamental rethinking might take place in the future.