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Economic Models - Convex Optimization

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Toward a Theory of Japanese Organizational Culture 147<br />

In a Japanese company, the LSs and the OC are designed by the HRM<br />

system; these are not coming from outside. An effective corporate performance<br />

is the result of these underlying determinants of OC and LSs. Thus,<br />

in a Japanese organization, LS is rooted in the HRM system, which emerges<br />

from the MEVs of the Japanese national culture.<br />

Whether efficient CPs can be repeated in foreign locations depends on<br />

the transmission mechanism of the Japanese OC, which in turn, depends on<br />

the adaptations of the Japanese style HRM system. This can face obstacles<br />

due to the different MEVs in a foreign society and as a result, OC in a<br />

foreign location may be different from the OC of the company in Japan.<br />

Adaptation of the operations management system alone will not create an<br />

effective performance of a Japanese company in a foreign location. Creation<br />

of an appropriate HRM system and appropriate OC are essential for an<br />

effective performance.<br />

6. Conclusion<br />

A proposed theory of the relationship, among NC, OC, human resources<br />

practices, and CPs for the Japanese multinational companies, is narrated.<br />

Cultural differences are important and these factors affect every component<br />

of the company behaviors and performances. The question was raised<br />

regarding the factors, which are relatively more important than the others<br />

and whether it will be possible to manipulate these factors in order to<br />

increase the performances of the multinational companies. The proposed<br />

theory may provide an answer to these issues.<br />

References<br />

Aoki, M (1990). Towards an economic model of the Japanese firm. Journal of <strong>Economic</strong><br />

Literature 28, 1–27.<br />

Axel, M (1995). Culture-bound aspects of Japanese management. Management International<br />

Review 35(2), 57–73.<br />

Barlett, CA and H Yoshihara (1988). New challenges for Japanese multinationals: is organization<br />

adaptation their Achilles Heel. Human Resources Management 27(1), 19–43.<br />

Basu, S (1999). Corporate Purpose. New York: Garland Publishers.<br />

Calori, R and P Sarnin (1991). Corporate culture and economic performance: a French study.<br />

Organization Studies 12(1), 49–74.<br />

Cameron, KS and R Quinn (1999). Diagnosing and Changing Organizational Culture:<br />

Based on the Competing Values Framework. New York: Addison-Wesley.<br />

Denison, DR and AK Mishra (1995). Toward a theory of organizational culture and effectiveness.<br />

Organizational Science 6(2), March–April, 204–223.

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