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

Stephanie Danielle Drago, Emily Stanevicius, Shawna Ables, Sarah Funke, Trang (Jenny) Ho, Gage Meyers

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.

Keywords


Japan; Globalization

References


Albertini, Elizabeth. 2013. "Does Environmental Management Improve Financial Performance? A Meta-Analytical Review." Organization Environment 26 (4): Nov 7 2014-432.

Ambec, Stefan and Paul Lanoie. 2008. "Does it Pay to be Green? A Systematic Overview." Academy of Management Perspectives: Nov 7 2014-48, 58.

Amin, Hiten. "Traditional Employment Practices in Japan." DISCO Inc., accessed Nov 7, 2014, http://www.disc.co.jp/en/resource/pdf/TraditionalEmployment.pdf.

Bansal, Pratima and Roth Kendall. 2000. "Why Companies Go Green: A Model of Ecological Responsiveness." Academy of Management Journal 43 (4): Nov 14 2014-718, 724.

Chandran, Nyshka. "With Small Steps, Japan Wages Move Towards Merit System." CNBC, accessed September 26, 2014-1, http://www.cnbc.com/id/102034867.

"CSR Report 2008 Aiming for and Appropriate Execution of Fair, Transparent Management." Hitachi Construction Machinery Group, accessed Nov 15, 2014-26, https://www.hitachi-c-m.com/global/pdf/company/csr/report08/2008_11.pdf.

"Environmental Activities : Hitachi Construction Machinery." Environmental Activities : Hitachi Construction Machinery. Hitachi Construction Machinery, accessed 13 Nov., 2014 https://www.hitachi-c-m.com/global/environment/.

"Grow Together 2016." Hitachi Construction Machinery. Hitachi, accessed Jan 3, 2016-7, https://www.hitachi-c-m.com/global/pdf/ir/library/management2016.pdf.

Guðjónsson, Daníel Jón. 2009. "The Japanese Business Model, and how Globalization is Changing it. is Change Necessary for Japanese Companies?" Universitatis Islandiae: 2.

Harner, Stephen. 2012. "Hitachi Ltd. CEO Nakanishi Writing Template for Restoring Global Competitiveness for Japanese Industry." Forbes Online: August 21 2014.

HCM Staff. "HCM Interviews." Interviews by Stephanie Drago, Gage Meyers, Emily

Stanevicius, Shawna Ables, Sara Funke, and Jenny Ho. June 2015.

“HCM's Manufacturing Bases - Hitachi Construction Machinery." Hitachi Construction

Machinery. Accessed May 11, 2016. https://www.hitachicm.com/global/company/company-profile/plant/ .

"History: Hitachi Construction Machinery." Hitachi Construction Machinery. Hitachi, accessed Nov 22, 2015, https://www.hitachicm.com/global/company/company-profile/company-history/.

Hitachi Construction Machinery Group Kenkijin Spirit Handbook 2008-1,3. Hitachi.

"Hitachi Tierra." Tractor & Construction Plant Wiki. Accessed May 11, 2016.

http://tractors.wikia.com/wiki/Hitachi_Tierra .

Ishizuka, Tatsuro. "Hitachi Smart Transformation Project: Hitachi IR Day 2014." Microsoft PowerPoint file.

Iwatani, Naoyuki, Gordon Orr, and Brian Salsberg. 2011. "Japan’s Globalization Imperative." McKinsey Quarterly: 3-90.

"KOF Index of Globalization.", accessed Nov 10, 2014, http://globalization.kof.ethz.ch/.

Nakakuro, Hidekazu, Manabu Arami and Hongjuan Wang. “Global Buisness Plan of Construction Machinery Solutions.” Hitachi Review, No. 2. (2013)

Neeley, Tsedal. "Global Business Speaks English." Cross-Cultural Management. May 1,

Accessed May 11, 2016. http://www.hbs.edu/faculty/Pages/profile.aspx?facId=438575 .

Orsato, Renato J. 2006. "Competitive Environmental Strategies: When does it Pay to be Green?" California Management Review 46 (2): 127-143.

Schilling, Melissa A., and Melissa Esmundo. "Technology S-curves in Renewable Energy Alternatives: Analysis and Implications for Industry and Government." Energy Policy 37, no. 5 (2009): 1. Accessed May 11, 2016.

Sekiguchi, Toko. "Japan Opens Door Wider for Foreign Workers: Tokyo Looks to Address Construction Labor Gap." The Wall Street Journal, April 4, 2014. Accessed May 12, 2016.


Full Text: PDF

Refbacks

  • There are currently no refbacks.