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Purpose

This paper aims to explain how female promotion can help to improve organizational performance in the Japanese environment.

Design/methodology/approach

It is based on a case study of Aeon, a major Japanese retailer, which dramatically increased its percentage of female store managers through the implementation of a systematic plan with top management support.

Findings

The key finding is that the factor, which led to success, was ensuring a fit between organizational features and the plan for change. This required careful attention to existing organizational features and developing trends as well as concentrated efforts to change those features that might have been stumbling‐blocks.

Research limitations/implications

Since the study was based on a single case, future research should include longer‐term and broader studies to ensure the generalizability of the findings.

Practical implications

This study implies that diversity management can be successfully introduced in a Japanese context: managers cannot be allowed to argue that they are powerless to effect change.

Originality/value

The key value‐added is to move beyond arguing whether Japanese companies should introduce diversity and point the way to how they can do so successfully.

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