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Management article
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Reference no. 90609
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1990

Abstract

Small and midsize companies make up 99% of Japanese industry, and are the real foundation of the Japanese economy. The high-quality goods that come bearing a famous maker''s name are seldom the product of that company''s factory -- in fact, small companies usually designed, assembled, packaged, and shipped it. These subcontractors are like serfs in a highly structured feudal system. The big companies are the daimyo -- feudal overlords who control the fates of their subjects.

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Abstract

Small and midsize companies make up 99% of Japanese industry, and are the real foundation of the Japanese economy. The high-quality goods that come bearing a famous maker''s name are seldom the product of that company''s factory -- in fact, small companies usually designed, assembled, packaged, and shipped it. These subcontractors are like serfs in a highly structured feudal system. The big companies are the daimyo -- feudal overlords who control the fates of their subjects.

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