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Recovering from SuccessInnovation and Technology Management in Japan$
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D. Hugh Whittaker and Robert E. Cole

Print publication date: 2006

Print ISBN-13: 9780199297320

Published to Oxford Scholarship Online: September 2007

DOI: 10.1093/acprof:oso/9780199297320.001.0001

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Modular production' impact on Japan's electronics industry 1

Modular production' impact on Japan's electronics industry 1

Chapter:
(p.47) 3 Modular production' impact on Japan's electronics industry1
Source:
Recovering from Success
Author(s):

Timothy J. Sturgeon

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199297320.003.0003

This chapter examines modular production/manufacturing (as well as emulation), which pose a direct challenge to a host of the most cherished strategies of Japanese electronics firms, including employment protection. Contradictory pressures to respond to the modularization challenge on the one hand, and maintain cherished strategies on the other, lead to electronics firms shedding and protecting jobs at the same time, moving out of old business lines and adding new ones, opening sourcing networks and investing in new in-house component plants, expanding some facilities and shrinking or closing others. Overall, adoption of aspects of modular production in low-end manufacturing can be seen, this is much less so for advanced products and technologies. The result is the creation of a ‘mixed model’.

Keywords:   modular production, Japan, electronics industry, employment protection, contract manufacturing, mixed model

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