Japanese-Style Partnerships: Giving Companies a Competitive Edge

Keywords

Miti, Japanese-style partnerships, keiretsu

Abstract

Was Japan’s powerful Ministry of International Trade and Industry (MITI) serious when it made this statement? Is it possible that much of Japan’s competitive advantage can be attributed simply to its subcontracting structure? Indeed, evidence from an increasing number of industries and sources suggests that much of the Japanese success can be attributed to Japanese-style business partnerships. Consider the auto industry, for example. From 1965 to 1989, the combined Japanese market share of worldwide passenger car production jumped from 3.6 percent to 25.5 percent. In striking contrast, the market share of U.S. firms dropped from 48.6 percent to 19.2 percent.2 Moreover, by the early 1980s, Japanese firms had achieved a 20 percent to 25 percent cost advantage, per car, versus U.S. automakers, while receiving customer satisfaction scores 50 percent higher than those of competing U.S. cars.

Original Publication Citation

Dyer, Jeffrey H. and William G. Ouchi, (1993). "Japanese Style Partnerships: Giving Companies a Competitive Edge." Sloan Management Review, Volume 35, No. 1, Fall.

Document Type

Peer-Reviewed Article

Publication Date

1993

Publisher

Sloan Management Review

Language

English

College

Marriott School of Business

Department

Marketing

University Standing at Time of Publication

Full Professor

Link to Full Text

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