The Changing Dynamics Of A Japanese Company Amid The Globalizing Business Environment: A Case Study Of Hitachi Construction Machinery Company

Abstract

Japan’s mature market combined with its decreasing population has left little room for domestic market expansion. Because of this, many Japanese companies have been required to explore overseas markets in order to maintain and expand their sales revenue. While numerous Japanese companies have struggled to adapt to globalization, Hitachi Ltd., a Japanese multinational conglomerate, has become a frontrunner in its organizational transformation. A recent example is its move from the traditional, seniority and lifelong employment system to a merit-based salary system, which aims to attract talented, high-level workers overseas. Hitachi Construction Machinery (HCM), one of Hitachi’s eleven businesses, is an excellent case study of how Japanese companies are changing in response to globalization. Three research groups investigated this on-going, momentous transformation of a representative of Japan Inc., HCM, through first-hand experiences and semi-structured interviews with company representatives throughout Japan. The research included in-depth investigations of how globalization has affected HCM in three areas: language, cultural, and unification training processes; human resource management; and reaction to global environmental issues through its product lines.