This paper presents a model which suggests that four factors-national and ownership structure, an industrial encouragement policy, barriers to entry and the labor market-combine to produce a situation in which Japanese management is freed from all the major threats to its dominance-shareholders, trade unions, government, domestic competitors, domestic speculators, foreign competitors and foreign capital. Hence, in line with classical managerial theories of the firm, Japanese managers have developed the long run strategies and policies that are typical of the large Japanese corporations-market share emphasis, slow personnel evaluation, MIT systems, etc. Some suggestions for further work are offered.
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