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Sources of Machine-Tool Industry Leadership in the 1990s: Overlooked Intrafirm Factors

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  • Hiroyuki Chuma

Abstract

Through the use of extensive field research and an original international questionnaire, the main sources of the leapfrogging development of the Japanese machine-tool industry in the past 19 years were investigated. Past studies have emphasized the strategic R&D alliance with superlative computerized numerical control (CNC) makers, the extensive use of outsourcing from excellent precision parts' suppliers, and the extraordinary development of automakers. This paper critically considered these factors and verified their inadequacy in explaining the further development of this industry in the 1990s. Hence, attention was paid to the significant roles of "intrafirm factors" such as: (a) the simultaneous and cross-functional information sharing system at an early stage of new product development processes, (b) the positive and early participation of frontline skilled workers in assembly or machining shops, and (c) the existence of highly skilled assemblymen or machinists. The significant roles of these intrafirm factors were robustly validated by the statistical analysis of the questionnaire survey as well as by the results of our field research. The results showed striking similarities between the Japanese and the German machine-tool makers and notable dissimilarities between the two and the US makers.

Suggested Citation

  • Hiroyuki Chuma, 2001. "Sources of Machine-Tool Industry Leadership in the 1990s: Overlooked Intrafirm Factors," Working Papers 837, Economic Growth Center, Yale University.
    • Handle: RePEc:egc:wpaper:837
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    File URL: http://www.econ.yale.edu/growth_pdf/cdp837.pdf
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    References listed on IDEAS

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    1. Mowery,David C. & Nelson,Richard R. (ed.), 1999. "Sources of Industrial Leadership," Cambridge Books, Cambridge University Press, number 9780521645201.
    2. Secondo Rolfo, 1993. "The Italian Machine Tool Industry," CERIS Working Paper 199304, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    3. Fleischer, Manfred, 1997. "The inefficiency trap: strategy failure in the German machine tool industry," EconStor Books, ZBW - Leibniz Information Centre for Economics, number 122877, July.
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    More about this item

    Keywords

    Machine-tool; Product Development Process; Information Sharing;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L64 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Machinery; Business Equipment; Armaments

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