Convergence/Divergence: A Temporal Review of the Japanese Enterprise and Its Management

Veblen (1915) argued that, as countries modernize, their organizational structures and value systems inevitably converge. Since then, a central debate on the Japanese enterprise has continued to revolve around this convergence theory. A review of the convergence/divergence debate is given, based on approximately 500 books and articles. The debate is summarized historically. It is concluded that most large Japanese firms that operate in Japan exhibit differences from Western firms. These differences relate to: 1. personnel practices and decision-making processes, and 2. manufacturing philosophies and practices. Despite continued assertions of convergence, little evidence supports convergence toward the Western model for Japanese firms operating in Japan. Two major exceptions to this include: 1. the modification of the Japanese paternalistic management style, and 2. the adoption of corporate planning strategies.