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Applying the concept of “entrepreneur managers” from dynamic capabilities theory to the question of how some Japanese managers develop and use their relationships with foreign investors, this article explores organizational contexts in which Japanese managers use foreign shareholders as resources to enhance firm capabilities in the global marketplace, deploy assets effectively and implement changes to traditional organizational customs. The article asks why and how some top managers implemented institutional changes and adopted customs that are common in the shareholder-based system while others did not.

We conducted qualitative interviews with 11 inverstor relations (IR) managers of large, listed Japanese firms in Kyoto and Tokyo.

First, by inviting a hedge fund partner and using their human capital and social capital, a Japanese CEO committed to strengthening his firm’s competencies in the global market and introduced changes that are common in the shareholder-based system. Second, a CEO with an MBA degree and exceptional communication skills in English and Japanese dedicated himself to executing much of the strategic advice suggested to him by foreign shareholders and altered some of his firm’s traditional Japanese management practices. Third, even though many Japanese firms welcomed and used foreign shareholders as advisors to help them streamline and/or acquire firm assets, their top leaders’ implementation of organizational changes was limited. Fourth, the top leaders of family-owned firms were reluctant to initiate dialogue with foreign investors.

This article adds some useful organizational context to existing scholarship on institutional theory by examining Japanese leaders’ strategic management in their relations with foreign investors. Using the concept of dynamic capabilities, it addresses the role of innovative strategic managers in firms’ institutional changes.

The distinctiveness of Japanese management practices offers invaluable insights for the strategic development and operational excellence of small and medium-sized enterprises (SMEs) worldwide. Recognizing this, the purpose of this study is to explore an extensive review of the literature on Japanese SMEs. The aim is to reveal previously explored research domains and to systematically categorize the unique factors contributing to the success and challenges of SMEs. This investigation not only illuminates the peculiarities of Japanese SMEs management but also sets the stage for applying these insights globally to SMEs across diverse industries.

Using a systematic review approach, 63 studies on Japanese SMEs from 1996 to 2021 were identified and analyzed.

This analysis identified six critical themes in Japanese SME management: nuanced firm management practices; forefront innovation and technology; internationalization; supportive government policies; commitment to corporate social responsibility and sustainable development; and vibrant entrepreneurship. The authors also spotlight challenges like navigating global competition and adapting to rapid technological changes. These insights, alongside noted methodological gaps in existing literature, suggest fertile grounds for future research and hold significant implications for SMEs globally.

The investigation of Japanese SMEs in this study highlights valuable insights for SMEs, policymakers and scholars, as it represents a rich and distinctive research phenomenon with various organizational, cultural, economic and political implications.

This research aims to explore whether or not the widely adopted diversity management strategy of Japanese firms aids female self-initiated expatriates' careers. Japan is famous for its male-dominated society (e.g. Hofstede, 2003), which seems to conflict with the recent fading of this strategy in Japanese firms. To what extent does the strategy work for Japanese organisations and how do female self-initiated expatriates perceive it?

An interview-based qualitative methodology is used to collect testimony from female self-initiated expatriates who are currently working fulltime in Japanese firms. The interviews were conducted with 22 female expats who come from 13 different countries.

Although the strategy aims for equality, gender still matters in Japanese society and within firms. The interviews found that male-centred rules set out every single step for local employees' behaviours. “Male things” are defined everywhere at work, which makes female expats sceptical of Japan and Japanese firms. The dynamics of the male-based rule seem to eliminate female expats from the centre of organisational society.

Discussion over female expatriates has been increasing due to the frequent movement of international labour to Japan. Also gender fairness has been pushed by the international community, including Japanese. These factors, however, have yet to be explored in the context of the Japanese workplace for female international expatriates. What do we know about female expats working in Japan? What does the male dominance mean for female expats? This study provides an initial insight on female and expatriate diversity management in Japan.

This study investigated how the Covid-19 pandemic impacted cross-border acquisitions. Though literature suggests that cross-border investments decreased during the pandemic, there is little conclusive evidence on specific characteristics in the execution of particular acquisitions during such times. We applied the case study format to conduct our investigation by (1) providing a classification of influences on cross-border procedures and (2) highlighting critical characteristics during three phases of acquisitions, namely, search, negotiation and integration periods.

The grounded theory approach was applied to three in-depth case studies of German companies that acquired Japanese targets during the Covid-19 pandemic. Data were supplemented by information received through additional case studies of German subsidiaries in Japan and interviews with consultants.

Firms had already intended to acquire their respective targets, with their decisions having been made prior to the Covid-19 pandemic. Thus, the pandemic had no impact on target selection in the case firms. Owing to travel restrictions, information exchange was limited which inevitably led to higher usage of digitalization. While several barriers led to delays in negotiations, prevailing mutual trust and assistance from consultants helped to reduce difficulties. During the integration period, we found delays in synergy creation and increases in remote communication. Nevertheless, the digital workflow improved the efficiency.

Our study provides novel insights into the execution of cross-border acquisitions impacted by the Covid-19 pandemic. We discuss new implications for mergers and acquisitions (M&A) research and practice for the post-pandemic era, focusing on German firms acquiring Japanese targets.

The authors' work aims to identify the employer-specific drivers of the college (or university) wage gap, which has been identified as one of the major determinants of the dynamics of overall wage and income inequality in the past decades. The authors focus on three employer-level features that can be associated with asymmetries in the employment relation orientation adopted for college and non-college-educated employees: (1) size, (2) the share of standard employment and (3) the pervasiveness of incentive pay schemes.

The authors' establishment-level analysis (data from the Basic Survey on Wage Structure (BSWS), 2005–2018) focusses on Japan, an economy characterised by many unique economic and institutional features relevant to the aims of the authors' analysis. The authors use an adjusted measure of firm-specific college wage premium, which is not biased by confounding individual and establishment-level factors and reflects unobservable characteristics of employees that determine the payment of a premium. The authors' empirical methods account for the complexity of the relationships they investigate, and the authors test their baseline outcomes with econometric approaches (propensity score methods) able to address crucial identification issues related to endogeneity and reverse causality.

The authors' findings indicate that larger establishment size, a larger share of regular workers and more pervasive implementation of IPSs for college workers tend to increase the college wage gap once all observable workers, job and establishment characteristics are controlled for. This evidence corroborates the authors' hypotheses that a larger establishment size, a higher share of regular workers and a more developed set-up of performance pay schemes for college workers are associated with a better capacity of employers to attract and keep highly educated employees with unobservable characteristics that justify a wage premium above average market levels. The authors provide empirical evidence on how three relevant establishment-level characteristics shape the heterogeneity of the (adjusted) college wage observed across organisations.

The authors' contribution to the existing knowledge is threefold. First, the authors combine the economics and management/organisation literature to develop new insights that underpin the authors' testable empirical hypotheses. This enables the authors to shed light on employer-level drivers of wage differentials (size, workforce composition, implementation of performance-pay schemes) related to many structural, institutional and strategic dimensions. The second contribution lies in the authors' measure of the “adjusted” college wage gap, which is calculated on the component of individual wages that differs between observationally identical workers in the same establishment. As such, the metric captures unobservable workers' characteristics that can generate a wage premium/penalty. Third, the authors provide empirical evidence on how three relevant establishment-level characteristics shape the heterogeneity of the (adjusted) college wage observed across organisations.

This paper aims to investigate how the Japanese media conveyed the country’s foreign aid policy and analyse how framing biases in the news differ depending on which language (either Japanese or English) was used in the broadcasts.

This study uses a qualitative single case-study design and conducts a content analysis. The study uses news videos about the fifth Tokyo International Conference on African Development aired on YouTube by the Japanese media using Japanese and English.

The findings reveal subtle but notable differences in the patterns of the framing biases in the Japanese media’s news aired in Japanese intended for the domestic audience, and in the news on the same topic broadcast in English to the international audience.

The limitation of the study is the rather small data set used for the single case study of one event.

Framing biases could lead the general public in a monolingual society to a more skewed view of their government’s policy and its activities abroad. This could be an obstacle to developing a common ground for global issues and cross-border policy agendas.

The study explores an under-researched function of language in international affairs. It highlights how the mass media in a non-English-speaking country uses a dual approach to framing news while addressing different audiences. To the best of the author’s knowledge, the context that this paper deals with is novel because there are limited studies on the nexus between the influence of language choices and media logic in the field of international business.

The literature on information technology outsourcing (ITO) prioritises monetary considerations and overlooks human aspects. This qualitative study adopts a contextualised approach to address a research gap in understanding agency workers’ intent to stay in the ITO sector.

In contrast to previous studies that focus on intra-organisational factors and use quantitative designs, this study takes a qualitative approach. It analyses data from 85 in-depth interviews with agency workers in the Chinese ITO supply chain and project managers of supplier and client firms.

The study constructs an integrated framework covering 15 factors at three levels and shows how they interact to influence Chinese agency workers’ intent to stay in the ITO supply chain. Variations in outsourcing management styles and practices among U.S., Japanese and Chinese client firms are presented to enrich the understanding of outsourcing dynamics in a global context.

This study contributes to the ITO literature by providing new insights into the retention of highly skilled agency workers and deepening the contextual understanding of this issue, throwing light on the human aspects often overshadowed by monetary considerations.

With the ongoing industrial transformation of the Japanese sake industry and the continuous growth of exports in recent years, terroir, one of the core concepts in the wine culture, has been strategically used in the sake industry. Therefore, as an essential investigation, the purpose of this study is to elucidate when, how and why terroir has been used in the sake industry. This study starts with the research question: When, how and why has terroir come to be used strategically in the sake industry?

This study investigates the use of terroir in the Japanese sake industry, examining all 196 newspapers that referenced terroir from 1998 to 2022, sourced from the renowned newspaper database Nikkei Telecom 21. This study’s outcomes have been visualized through categorization work and text mining.

In this study, the use of terroir in the Japanese sake industry has gained significant momentum since 2015, with a remarkable surge observed in the 2020s. With the continuous growth in sake exports, industry players such as sake brewers are strategically structuring terroir to reinforce the authenticity of the brewing process, emphasizing the uniqueness of natural elements, such as water, sake rice and the natural environment. These findings highlight the critical role of terroir in the Japanese sake industry’s added value expansion.

This study provides objective insights regarding the recent industrial transformation for the practical sake industry, such as sake exporters and distributors. Additionally, this study enables the wine industry’s audience to understand the sake industry’s evolution in terms of wine culture.

Effective total quality management (TQM) practices rely on the accurate classification of critical success factors (CSFs). The impact matrix cross-reference multiplication technique for classification (MICMAC) or/and fuzzy MICMAC (FMICMAC) can be used to identify key factors in the complex set. However, TQM includes both “hard” and “soft” factors, limiting application of the traditional MICMAC/FMICMAC method.

Previous literature on TQM was reviewed, CSFs were identified, and factors were sorted into soft and hard categories. The combined fuzzy integration and dual-aspect MICMAC (fuzzy dual-aspect MICMAC approach) was then applied to identify, cluster and prioritize the CSFs of TQM.

A total of 20 factors (10 soft and 10 hard) were identified and isolated to assess the manufacturing- and service-related TQM practices of the Pearl River Delta Region of China. Seven driver factors and one linkage factor emerged as the key CSFs that managers should prioritize.

A major limitation of this study is the dependency of the results on the definitions of linguistic labels. If the linguistic definitions of TQM CSFs do not closely correspond to the expert opinion data, then the analysis results may be inaccurate. Additionally, although expert opinions are utilized in the proposed method for comprehensive assessments, these opinions may influence the final results due to their inherent subjectivity.

A novel fuzzy dual-aspect MICMAC approach was developed to identify and classify CSFs for optimal TQM practices. This approach allows clustering of CSFs so that decision-makers can prioritize factors according to their dependence and driving powers. Practitioners should concentrate on the CSFs with higher driving powers for successful TQM.

Extending the springboard perspective with the resource dependence theory, the authors posit that cross-border mergers and acquisitions (M&As) are a new channel for emerging economy firms (EEFs) to enhance their technology capabilities. This study aims to examine the impact of cross-border M&As initiated by EEFs on their technology augmentation vis-à-vis matched domestic M&A cases and investigate the factors influencing the difference in post-merger innovation capability.

This paper estimates the post-acquisition innovation capability of acquirers from emerging economies (EEs) that engage in cross-border M&As. To remove possible selection bias, the authors leverage a difference-in-difference-style approach in combination with a matched sample constructed by pairing each cross-border M&A case with a similar domestic deal. The data set contains 266 cross-border M&As and 266 matched domestic M&A deals between 2003 and 2011, whereby acquirers are based in 6 EEs and targets are in 36 countries consisting of both EEs and advanced economies (AEs).

The present empirical results show that cross-border M&As engaged by EEFs are an important engine for improving EEFs’ innovation capability through technology augmentation. The main empirical results are as follows. First, compared with matched domestic acquirers with similar characteristics, EE cross-border M&As have a positive effect on innovation capability. Second, the positive effect of the EEFs’ cross-border M&As relative to the matched domestic M&As on innovation capability is driven largely by cross-border M&As with targets in AEs. Third, the increase in post-M&A innovation capability of the EE cross-border acquirers comes mainly from deals where targets are based in countries with relatively superior human capital and innovation capability than those of the acquirers.

To the best of the authors’ knowledge, this study is the first systematic study of whether cross-border M&As serve as an effective channel of technology augmentation for EE acquirers compared to matched domestic acquirers with similar characteristics.