Christina L. Ahmadjian

Safety in Numbers: Downsizing and the Deinstitutionalization of Permanent Employment in Japan:

This study examines the role of downsizing in the deinstitutionalization of permanent employment among publicly listed companies in Japan between 1990 and 1997. We found that although economic pressure triggered downsizing, social and institutional pressures shaped the pace and process by which downsizing spread. Large, old, wholly domestically owned, and high-reputation Japanese firms were resistant to downsizing at first, as were firms with high levels of human capital, as reflected by high wages, but these social and institutional pressures diminished as downsizing spread across the population. We argue that this breakdown of social constraints was due to a safety-in-numbers effect: as downsizing became more prominent, the actions of any single firm were less likely to be noticed and criticized, and the effect of the institutional factors that once constrained downsizing diminished.

Organizational Learning and Purchase-Supply Relations in Japan: Hitachi, Matsushita, and Toyota Compared

This article deals with the role of purchase-supply relations in organizational learning and knowledge-creation in Japan and how such relations are currently undergoing change. Drawing on interviews with managers, it presents case studies of the customer-supplier partnerships of three prominent Japanese manufacturing firms: Hitachi, Matsushita, and Toyota. The Hitachi case illustrates in a somewhat novel way the prevailing paradigm of how long-term, high-trust supply relations in Japan enhance organizational knowledge creation, learning, and innovation. The Toyota and Matsushita cases demonstrate that the dynamics of learning are behind two very different kinds of change in keiretsu supply networks. Toyotas evolving relationship with long-term partner, Denso Corporation, appears to fit the popular view that globalization and technological change are eroding Japanese keiretsu ties. The Matsushita case, by contrast, demonstrates that these same forces of change in other industrial settings may in fact be strengthening keiretsu-style partnerships.

Changing firm boundaries in Japanese auto parts supply networks

The Japanese and the US business presses are full of articles about change in Japanese business practices—in particular, changes in relationships between customers and suppliers. Are closely knit networks of customers and suppliers—the keiretsu—breaking down? We argue that while there is no sign of a dramatic, abrupt breakdown in the system, Japanese automakers are beginning to rethink the make versus buy decision. Automakers are taking firmer control over some transactions while allowing others to become more arms-length. These changes are traceable to some basic changes in the transactions themselves—increased power on the part of suppliers due to changes in technology and globalization, and decreased need for customer-specific investments due to standardization. Furthermore, a sense of economic crisis has caused Japanese firms to question the value of certain business practices, and has made it easier for automakers to rethink their contracting relationships.

Managing International Business Ventures in China

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