Japanese industry has shown its superiority in a range of traded goods sectors. It was thought that this competitive advantage arose from the use of electronics-based flexible automation technologies, but it is now clear that the major source of this industrial strength is in the development and diffusion of new management techniques such as just-in-time production and total quality management.
A number of Western firms have begun to introduce these management techniques and have begun to reap significant benefits, not just in lowering costs but also in improving product variety and...