Abstract
Japan has developed its business system by making heavy use of its inherited traditions (Whitley, 1992). Instead of simple-mindedly focusing on such neoclassical concepts as profit, price, cost, and quantity to achieve allocating or accounting efficiency, Japanese companies and the government have strongly emphasized non-allocative or production efficiency, promoting worker participation, long-term relations, cooperative learning, and capability building1 (Leibenstein, 1987; Dore, 1987; Porter, 1990; Ettlinger, 1991). Institutional arrangements2 and various systems were developed to enhance this Japanese heritage, especially by promoting cooperation among economic actors and orchestrating harmonies in industrial, inter-firm and government-business relations, which consequently functioned well to achieve an effective mix of allocative and non-allocative efficiency (Abegglen, 1958; Dore, 1973, 1986; Aoki, 1984; Iwata, 1977; Tsuda, 1984; Imai, 1988a, 1988b; Johnson, 1982; Kitschelt, 1991).
Efficiency is understood as generating a maximum total value of outputs from any given set of inputs (Shepherd, 1997) and is an outcome of a combination of both allocative and non-allocative efficiency. The former is accomplished by allocating resources to maximize the output most effectively achieved by introducing competition and rewarding a winner in a market, and the latter is determined by other factors such as developing group dynamics, soliciting commitment, and stimulating motivational drives
An institutional arrangement is a set of interrelated systems that regulates intersystem relations and the behavior of individuals and organizations in recurrent situations in a society
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— (1996) “DRAM seisan tettai—Nihon IBM, Bei ni shuyaku, kokunai wa kofukakachihin ni (IBM Japan withdraws from DRAM production—IBM to integrate DRAM production in U.S.; only high value-added goods to be produced in Japan).” 6 April, morning, p. 1.
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— (1998d) “Hitachi Seisaskusho—Sogogata keiei o bappon kaikaku (5 nengo karute) (Hitachi Corporation—radical reform of all-purpose management (how it looks five years later).” 18 May, p. 47.
— (1998e) “Daiichibu motto mae e (2) Hitachi ga honsha o kaitai suru hi (Chapter 1: Moving further forward (2): The day Hitachi dismantles its parent company).” 16 April, morning, p. 1.
— (1999a) “Fujitsu, risutora oowaku kanryo, hanyo DRAM ryosan kara tettai—joho sabisu jigyo kyoka (Fujitsu completes overall framework for restructuring, with-drawing from all-purpose DRAM mass production—strengthening information service business).” 11 January, morning, p. 13.
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— (2000a) “Matsushita, handotai bumon fukkatsu e—shisutemu LSI ni shojun (Matsushita revives semiconductor division—focusing on system LSI).” 16 February, morning, p. 8.
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— (2001a) “DRAM tettai, Toshiba, kokusai saihen tatare ketsudan—doitsusha to togo fuchoni, gyoseki koten mikomezu (Toshiba fails to develop international alliance and decides to withdraw from DRAM—negotiations to integrate with German company and improve future performance bog down).” 19 December, morning, p. 13.
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— (2001d) “Matsushita-Hitachi ga kaden teikei,’ shiromon’ sogo ni seisan itaku—dejitaru bunya, kyodo de kaihatsu (Matsushita and Hitachi align to mutually produce ‘white goods’—jointly develop digital area).” 21 May, morning, p. 1.
— (2001e) “Dai 3 sedai keitai, Matsushita, NEC teikei happyo—sofuto gijutsusha 5,000 nin kesshu (Matsushita and NEC announce joint development of third generation mobile telephone—allocate 5,000 software engineers).” 22 August, morning, p. 11.
— (2001f) “Sony kanpani-sei saihen—keitai, shuryoku bumon ni kakuage (Sony reorganizes in-house companies—mobile telephone upgraded to main business).” 29 March, morning, p. 11.
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— (2002a) “NEC 14,000 nin sakugen konki sosu (NEC reduces a total of 14,000 employees this fiscal year).” 1 February, morning, p. 11.
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— (2002c) “Dejitaru kaden sofuto toitsu, NEC nado 22 sha kaihatsu—kokusan OS saiyo, kosuto osaeru (22 companies including NEC jointly develop unified digital home appliance software based on Japanese OS to cut costs).” 23 June, morning, p. 1.
— (2002d) “Matsushita, digitaru kaihatsu ryoku kyoka. Gurupu saihen—‘mochikabu kaisha koso’ e zenshin. (Matsushita strengthens digital device development by reorganizing group, advancing holding company concept).” 27 April, morning, p. 11.
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— (1995) “R&D saizensen (28) Sony/Beikoku Risachi Rabo—saijyuyo bunya o mora (R&D frontlines (28) Sony/U.S. Research Laboratory to cover most important areas).” 17 January, p. 8.
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— (1998c) “Sony-Fujitsu, jisedai handotai de teikei—tasha no saihen ni eikyo mo (Sony and Fujitsu to align for next-generation semiconductor, possibly influencing other companies’ alliances).” 26 January, p. 9.
— (1998d) “2,500 okuen renketsu saishu akaji—dongyu Hitachi okureta kaikaku (250 billion yen final consolidated deficit—slowpoke Hitachi, late for reform).” 4 September, p. 1.
— (1999) “Matsushita koshueki fukkatsu e no chosen (I) Renketsu besu de sentaku to shuchu—Matsushita Denshi o kaitai (Matsushita’s attempt at high profit rate recovery by selection and concentration, based on consolidated accounting—dissolving Matsushita Electronics).” 24 February, p. 8.
— (2000a) “Dai 8 bu, konmei suru sochi sangyo (4) Keiretsu meka shonenba (shirikon indasutori no miraizu) (Chapter 8: Bewildered semiconductor equipment industry (4): keiretsu makers face crucial period).” 24 February, p. 8.
— (2000b) “Dai 7 bu, Nihon fukkatsu no shinario (10) Mitsubishi Den (II) (sirikon indasutori no miraizu) owari (Chapter 7: Scenario for Japanese recovery (10): Mitsubishi Electric (II)—future map of the silicon industry—conclusion).” 15 February, p. 9.
— (2000c) “Toshiba no handotai kanpani, kaihatsu bumon nimo koritsuka no nami—IT katsuyo, sekkei nado rinki ohen ni (Toshiba semiconductor company, wave of rationalization even in R&D section: Flexible design making use of IT).” 14 April, p. 7.
— (2000d) “NEC kanpanisei shido—Nishigaki kaikaku, tsugi wa gurupu (NEC starts in-house company system: Nishigaki reform, the group is next).” 4 April, p. 36.
— (2001) “Nishigaki kaikaku dai 2 maku, NEC kuju no ketsudan (I) jinin sakugen kieta seiiki—kojo tohaigo ni nayamu (Second Nishigaki reform, NEC makes difficult decision (I): Employee reductions, a disappearing sanctuary, facing factory mergers and closures).” 6 August, p. 5.
— (2002a) “Mitsubishi Denki, gurupu shain 2,100 nin sakugen—konki eigyo akaji ni tenraku (Mitsubishi Electric reduces 2,100 employees within group, falls into deficit this term).” 1 March, p. 8.
— (2002b) “Mezase ‘joho no NEC,’ handotai jigyo o bunsha—soryushon suishin (Aiming to be the ‘NEC of information’ by making semiconductor business independent: Promoting solutions).” 17 May, p. 3.
— (2002c) “NEC-Toshiba jisei zairyo, kako yoi ni—MRAM kyodo kaihatsu (NEC and Toshiba jointly develop MRAM, including magnetic materials for easier processing).” 18 September, p. 3.
— (2002d) “Dai 3 sedai keitai, Toshiba-Mitsubishi ga teikei—kyodo kaihatsu, 2004 nen ni shohinka (Toshiba and Mitsubishi align to jointly develop third-generation mobile telephone to be marketed in 2004).” 14 March, p. 5.
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Okada, Y. (2006). Institutional Changes and Corporate Strategies for Survival in the Japanese Semiconductor Industry. In: Okada, Y. (eds) Struggles for Survival. Springer, Tokyo. https://doi.org/10.1007/4-431-28916-X_4
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