DECLINE OF JAPAN’S PREDOMINANCE IN ASIA

Until around 1980, Japanese companies occupied a predominant position in Asia. Their Asian operations are managed by Japanese persons and in the Japanese language. This Japanese-style international management is well suited to transfer technology and know-how from Japanese parent companies to their overseas subsidiaries. But, it does not provide opportunities to local managerial and professional employees to display their abilities and initiatives. Japanese companies also have problems in Japan. They invest more in foreign countries than in Japan, which results in the hollowing out at home. Japanese companies are managed by old men and thus lack a strong leadership. Japanese multinationals are facing a challenging task of management innovation both at home and abroad.