Strategic Industrial Sourcing: The Japanese Advantage

by Toshihiro Nishiguchi

Overview

A major aspect of Japan's international economic success has been its industrial firms' ability to develop a system of subcontracting with suppliers. Through an exploration of the evolution of subcontracting in Japan as well as an analysis of its current practice in advanced economies, Nishiguchi reveals what he believes to be the shortcomings of existing theories of contractual relations. He shows that subcontracting can be described as the evolutionary product of complex historical interaction among social, political, technological, and company-level strategic plans—but not one constrained by culture. This makes it possible for other countries to use models similar to those employed in Japan, encouraging continuous improvement in product quality and cost reduction.

Product Details

ISBN-13:	9780195071092
Publisher:	Oxford University Press
Publication date:	02/17/1994
Pages:	352
Product dimensions:	9.57(w) x 6.43(h) x 1.23(d)

About the Author

Hitotsubashi University

Table of Contents

AbbreviationsTables and FiguresAcknowledgements1. OverviewI. The History of Subcontracting in Japan2. The Origins of Dualism and the Rise of Subcontracting in Japanese Manufacturing Industries, 1900-19453. The Emergence of Postwar Subcontracting, 1945-19604. The Transformation of Japanese Subcontracting, 1960-1990II. The Contemporary Practice of Subcontracting5. Asset Specificity Revisited6. Bargaining or Problem Solving? 7. Sources of Flexibility8. ConclusionAppendix AAppendix BAppendix CAppendix DBibliographyIndex

Editorial Reviews

"One of the most interesting parts of Nishiguchi's descriptions is his contrast of Japanese-style managers' attitudes toward suppliers with the attitudes of American and British managers whose firms have not adopted these practices...No amount of asset flexibility can substitute for a system of flexible employees such as is described in Strategic Industrial Sourcing. Management scholars fail to see the true contours of the Japanese business landscape if the reality of these business arrangements is ignored."—Academy of Management Review

"Based on eight years of research and over 1,000 interviews, Nishiguchi's book provides a detailed and well-balanced account of why subcontracting persists in Japan more than in other countries and how it has contributed to Japan's economic success story."—Contemporary Sociology

"Constitutes a definitive study of Japanese subcontracting, supported by numerous tables and figures, and extending in coverage to Europe and the US....One of the important contributions of the book is its proof of cross-cultural applicability of the Japanese system. This work also contains rich and captivating anecdotal evidence. Highly recommended."—Choice

"I have always thought that in the long run the Japanese system of subcontracting is beneficial to all parties... I am grateful that Dr. Nishiguchi, through his painstaking research, breaks down myths about the Japanese subcontracting system."—Fujio Cho, President, Toyota Motor Manufacturing U.S.A.

"The coordination of the supply chain has always been the secret weapon of the best Japanese firms. In this remarkable volume Toshihiro Nishiguchi finally explains how they do it. Any Western manager who fails to read, indeed to study this book, is passing up an extraordinary opportunity to improve industrial performance. "—James P. Womack, Coauthor of The Machine that Changed the World

From the Publisher