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An empirical investigation of the relationship between IT and competitiveness of Japanese manufacturing companies, this paper finds an indirect correlation between the two variables. IT improves competitiveness through labor empowerment and strategic alliances rather than directly. The paper further argues that sustainability of IT‐based competitive advantages depends on the nature of IT systems. Competitive advantages based on stand‐alone IT systems that can be implemented with little internal and external cooperation are not sustainable, while competitive advantages based on cooperative IT systems that can be implemented with substantial internal and external cooperation are sustainable.

Extending Simon’s (1990) work, this paper proposes an effective management control system that allows companies to integrate different management control systems in order to improve operational effectiveness, employee creativity, and company competitiveness. Reviews conventional and modern competitive strategies and discusses both positive and negative effects of management control systems. Argues that to be effective, diagnostic management systems must be supplemented by boundary control systems, interactive control systems, and belief systems. Effective integration of the four different management control systems, it is argued, is dependent on companies applying them in a way that maximises operational effectiveness without limiting employee creativity. The importance of starting the design of a management control system with the specification of a system of beliefs which defines the company’s values and direction is highlighted.

Investigates EU‐Asian economic relations and identifies some of the factors that can explain their lag vis‐à‐vis Japan and the USA. Argues that the Asian economic turmoil offers the EU a second chance to catch up in their economic relations with the region. Argues further that recent EU initiatives and the European recovery will make it easier for Asian countries to expand their exports to Europe than to the USA and Japan.

This article takes a close look at the ways US, Israeli, and Irish policy makers have addressed the start‐up equity‐financing gap. US policy makers have been indirect, providing funds and creating the regime conducive to the growth of the private venture capital industry. Israeli policy makers have been less indirect, taking equity positions in start‐ups, and in venture capital funds in partnership with the private sector. Irish policy makers have been direct, setting up and managing start‐up venture capital funds.

Presents an updated inquiry into the relative strengths and weaknesses of the three contenders for the marathon of the world leadership, Europe, the USA and Japan. Argues that although the USA is currently leading the race, she will not win the gold medal, which will most probably go to Japan.

Crosscurrents between globalization and localization have created two world industry segments, an open highly competitive global industry, and a closed highly localized industry. Searching for competitive advantage in this new market environment, global manufacturers are becoming more like local service providers by executing a dual strategy: a global cost leadership strategy and a local product differentiation strategy. To achieve global cost leadership, manufacturers cooperate with their competitors to reach economies of scale and reduce costs. To achieve local product differentiation, manufacturers compete with their global partners by cooperating with local service providers to differentiate their offerings. This trend is analyzed to suggest two interdependent mechanisms for building successful bundling strategies. The competitiveness of a bundle that brings together global products and local services depends upon the degree of bundle localization. Sustainable bundling strategies should be treated as bundles of international business relationships.

As automation spreads around the world, there is a broad spectrum of scenarios regarding the changes it brings in the productive forces and relations of an economy. Some of these scenarios are driven by the futurists' imagination while others are tugged behind the pragmatists' reasoning of real world difficulties; in either case further theoretical and empirical research is needed before any scenario is taken for granted.

Investigates an economic barrier for foreign affiliates in Japan, the high cost of local labour: to attract qualified workers, foreign affiliates must pay a basic wage premium and offer fewer hours of work over their Japanese counterparts, a factor which reduces cost flexibility and impairs foreign competition in the Japanese market. Foreign affiliates′ inability to offer employment security is a plausible explanation for such wage premium.

Enquires into the link between the Tokyo and New York equity markets. Finds that the link between the two markets strengthens at some times and weakens at others. Staggering business cycles and the breaking of global co‐operation are two plausible explanations of the weakening of the links between the two markets.

Responding to Michael Porter’s claim that “Japanese companies rarely have a strategy”, this paper argues that the competitive advantage of Japanese enterprises is not to be found in traditional practices. Rather, it is due to the way these practices are upgraded and reinforced by ideological factors such as the “community of fate”, as well as the formation of governance structures that cultivate the development of contextual knowledge that leads to the efficient and effective production of complex products.