Does the Japanese employment system harm productivity performance? A perspective from DEA-based productivity and sustainable HRM
Asia-Pacific Journal of Business Administration
ISSN: 1757-4323
Article publication date: 1 September 2014
Abstract
Purpose
The purpose of this paper is to examine the impact of employment systems on productivity performance in Japanese companies from the perspective of data envelopment analysis (DEA) and sustainable human resource management (HRM).
Design/methodology/approach
In all, three employment models including employment indicators in addition to financial indicators are examined between 2006 and 2012 with 2,738 listed Japanese companies. This study verifies robustness of the results by testing multiple DEA measurements and conducting industrial analysis.
Findings
The results indicate employment systems influence productivity performance in Japanese companies and the characteristics of Japanese employment systems harm productivity performance. In particular, higher liquidity of human resource is essential contrary to the philosophy of long-term employment. Furthermore, new initiatives such as promotion opportunities for women have not been successful up to now.
Research limitations/implications
This study investigates limited aspects of HRM practices and employment systems in Japanese companies due to data availability. This study is designed to investigate mainly organizational outcome considering sustainability. More research is needed to identify comprehensive influence from Japanese employment system not only on corporate performance but also reduction of harm on a variety of stakeholders such as employee, community and government.
Practical implications
These findings suggest that it is necessary for executives in Japanese companies to pay attention to their HRM practices under Japanese employment system, in particular, entry and exit of human resource and support systems for female employees.
Originality/value
There are few studies that investigate the relationship between employment system and productivity performance in Japanese companies. This research provides empirical evidence for potential influence of the Japanese employment system.
Keywords
Acknowledgements
The authors thank the anonymous reviewers whose constructive comments and evaluation improved the quality of this paper.
Citation
Sotome, R. and Takahashi, M. (2014), "Does the Japanese employment system harm productivity performance? A perspective from DEA-based productivity and sustainable HRM", Asia-Pacific Journal of Business Administration, Vol. 6 No. 3, pp. 225-246. https://doi.org/10.1108/APJBA-02-2014-0031
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited