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(★)(This open access book introduces more than twenty of Japan´s leading innovative entrepreneurs from the 17th century to the present. The author outlines the innovative business models created by entrepreneurs including SoftBank´s Masayoshi Son, Fast Retailing (Uniqlo)´s Tadashi Yanai, Honda´s Soichiro Honda, Sony´s Akio Morita, Panasonic´s Konosuke Matsushita, and Toyota´s Kiichiro Toyoda, as well as their predecessors including Takatoshi Mitsui of Mitsui Zaibatsu, Shibusawa Eiichi of Daiichi Bank.／ While introducing the innovators, the author also raises three broader questions : 1.Why did Japan industrialize earlier than any other country outside Europe and the United States? 2.Why was Japan able to realize unsurpassed economic growth between the 1910s and the 1980s? 3.Why has Japan´s economy stagnated for more than 30 years since the 1990s? Drawing upon analytical concepts including Schumpeter´s breakthrough innovation, Kirzner´s incremental innovation, and Christensen´s disruptive innovation, the author contends that Japan´s successes were based on unique and systematic breakthrough innovation and an accumulation of incremental innovation, while it later fell victim to a combination of breakthrough innovation from advanced countries and disruptive innovation by developing nations.／ ◆Takeo Kikkawa is Professor at the International University of Japan and Professor Emeritus at the University of Tokyo and Hitotsubashi University.／ ▼CONTENTS／ ■PART I : THE ERA OF BREAKTHROUGH INNOVATIONS／ OVERVIEW I : EDO PERIOD／ ●CASE 1. ZEN-EMON KONOIKE : Successive Innovations Impacting the Nationwide Market (The Konoike Family Tree／Development of Clear Sake and Its Shipment to Edo／The Beginning of (Konoike´s) Water Transport Business／Expansion into Financing and Lending to Daimyo／´Financial Statement´ and Double-Entry Bookkeeping／The Konoike Family After the Meiji Restoration ●CASE 2. TAKATOSHI MITSUI : New Business Opportunities and the Retail Revolution (Brief Biography of Takatoshi Mitsui／Groundbreaking Nature of ´Tanasaki Uri´ (Store-Front Sales)／The Ground-Breaking Nature of Takatoshi Mitsui´s Retail Innovation／Introduction of the Joint Ownership System ●CASE 3. GENZAEMON NAKAI : A Regional Merchant Thriving on the National Stage (The Rise of Omi Merchant／The Nakai Family Tree／Epoch-Making Nature of the Nakai Management Style／The Limits of the Nakai Family and Their Background ●DISCUSSION POINT 1 : Early Modern or Pre-Modern? (The ´Novelties´ of the Edo Period／Matao Miyamoto´s ´Edo Period ＝ Early Modern´ Theory／Prerequisites for Japanese Economy´s Early Takeoff／ OVERVIEW 2 : FROM PORT OPENING TO POST RUSSO-JAPANESE WAR PERIOD (Japan´s Encounter with Global Capitalism／Accumulation of Capital and Labor／Industrial Revolution in Japan／Three Types of Businessmen ●CASE 4. HIKOJIRO NAKAMIGAWA : Zaibatsu Reform by Salaried Managers (Characteristics of Japanese Zaibatsu／Brief Biography of Hikojiro Nakamigawa／Recovery of Non-performing Loans／Appointment of Salaried Managers／Industrialization Effort and Its End ●CASE 5. YATARO IWASAKI and YANOSUKE IWASAKI : Formation of Zaibatsu by Owner Managers (Brief Biography of Yataro Iwasaki／Brief Biography of Yanosuke Iwasaki／Breaking Away from Political Powers／Appointment of Salaried Managers／Promotion of Industrialization) ●CASE 6. ZENJIRO YASUDA and SOICHIRO ASANO : Zaibatsu Formation Through the Collaboration of Two Owner-Managers (General Zaibatsu and Financial/Industrial Zaibatsu／´Yasuda Zenjiro´ by Tsunehiko Yui／Brief Biography of Zenjiro Yasuda／Brief Biography of Soichiro Asano／Cooperation Among Owner-Managers) ●CASE 7. EIICHI SHIBUSAWA : Mobilization of Managerial Resources by an Investor-Manager (A Tumultuous Life／As an Investor-Manager／Complementary Effects Among the Three Types of Managers／As a Social Entrepreneur／As a Business Leader／As a Private-Sector Diplomat／´Gapponshugi´ and Its Significance Today) ●DISCUSSION POINT 2 : How Did Japan´s Economy Manage to Take Off So Early? Conditions That Enabled the First Successful Industrialization Case Among Latecomer Nations (General Requirements for Latecomer Nations´ Industrialization／Unique Conditions That Made Japan the First Case of Successful Industrialization Among Latecomer Nations／Interplay Among the Three Types of Managers／Early Take-Off as the Outcome of Breakthrough Innovations／ ■PART II : THE ERA OF INCREMENTAL INNOVATION／ OVERVIEW 3 : WORLD WAR I TO THE 1980S (World War I and Economic Turmoil／The Japanese Economy Gets on a Long-Term Growth Track／The Years Leading to World War II／From High Growth to Stable Growth／Incremental Technological Innovation and ´Japanese Style Management´) ●CASE 8. ICHIZO KOBAYASHI : A Leader in Urbanization Creates a New Industry (Urbanization and Electrification Pave the Way for a Mass Consumer Society／Housing Shortages in Osaka／Minoh-Arima Electric Railway Enters the Real Estate Business／Ichizo Kobayashi´s Entrepreneurial Innovation／Kobayashi Also Contributes to Electrification) ●CASE 9. YASUZAEMON MATSUNAGA : Electrification Leader Establishes Private Sector-Led Public Utility Operations (Encounter with the Electric Power Business／Practicing ´Scientific Management´／Matsunaga´s Foresight in ´Personal Opinion on Electric Power Regulation´／The Japanese Government Imposes Controls over the Electric Power Industry／Matsunaga Leads the Reorganization of the Electric Power Industry／Two Contributing Factors to Matsunaga´s Ascent／Establishment of the ´Private Sector-Led Utility´ Model) ●CASE 10. SABUROSUKE SUZUKI II : Commercialization of Exceptional Breakthrough Innovation (´Three Greatest Inventions in Japan´／Invention of Ajinomoto by Kikunae Ikeda／The Commercialization Effort by Saburosuke Suzuki II and Others／Saburosuke Suzuki II Before His Encounter with Ajinomoto／Conditions That Enabled Ajinomoto´s Commercialization／Struggles Leading Up to Ajinomoto´s Commercialization／What Made Ajinomoto´s Commercialization Possible?) ●CASE 11. KIICHIRO TOYODA : From Breakthrough to Incremental Innovations (´The Business History of the Toyoda Family´s Spinning and Weaving Business´ (Toyoda-ke Boshoku Jigyo no Keiei-shi) by Hiroaki Yamazaki／Sakichi, Risaburo, and Kiichiro Toyoda／Development of the Model G Automatic Loom／Entry into Automobile Manufacturing／Toyota´s Labor Dispute and Kiichiro´s Retirement／The Toyota Production System) ●CASE 12. SHITAGAU NOGUCHI and YOSHISUKE AIKAWA : Emergence of New Konzerns and Foray into the Continent (New Konzerns／Brief Biography of Shitagau Noguchi／Brief Biography of Yoshisuke Aikawa／´Yoshisuke Aikawa, Founder of Nissan´ by Masaru Udagawa／Expansion into the Asian Continent) ●CASE 13. SAZO IDEMITSU : ´Oil Merchant of the Continent´ to ´Hero of Native Oil Companies´ (The Miracle of the Nissho-Maru／Idemitsu´s Overseas Expansion／Expansion into Manchuria and Delivery of Axle Oil to the South Manchuria Railway／Pursuing an ´Emphasis on Overseas Territories´Deployment to the South and Japan´s Defeat in World War II／Transformation into ´Hero of Native Oil Companies´) ●CASE 14. YATARO NISHIYAMA : Leader of Capital Investment Drives High Economic Growth (A Decade of Revitalization／Yet Another Miracle／Key Points of Nishiyama´s Innovativeness／The Man who Changed the History of Japan´s Steel Industry／Decision-Making with a Rational Thinking／Into the Era of High Economic Growth) ●CASE 15. KONOSUKE MATSUSHITA : Initiator of the ´Consumer Revolution´ Drives High Economic Growth (The Progression of the ´Consumer Revolution´／Creation of Dedicated Distribution Networks by Home Appliance Manufacturers／´Matsushita´s Way of Doing Business´ as Practiced by the ´God of Management´／Konosuke Matsushita Before WWII／Konosuke Matsushita After WWII) ●CASE 16. MASARU IBUKA, AKIO MORITA, SOICHIRO HONDA, and TAKEO FUJISAWA : The Groundbreaking Nature of Sony and Honda Becoming Global Companies (´Sony of the World´ ; ´Honda of the World´／Profiles of the Four Businessmen／Commonality of Their 1946 Founding and Early Product and Sales Strategies／Overseas Business Trips in 1952 and Investment for Competitiveness／Full-Scale Entry into Overseas Markets in 1963-64／Objective Conditions That Enable Innovative Entrepreneurial Activities／Subjective Factors That Enable Innovative Entrepreneurial Activities) ●CASE 17. TOSHIO DOKO : The Sense of Crisis Harbored by the ´Fine Physician of the Business World´ and ´Mr. Administrative Reform´ (Building the Foundation for ´Doko the Turbine Man´／Delivery of the First Domestically Produced Turbine／Revamping the Management of Ishikawajima Shibaura Turbine／Rebuilding the Management of Ishikawajima Heavy Industries／Rebuilding Toshiba´s Management／From Keidanren Chairman to ´Mr. Administrative Reform´／A Sense of Crisis Harbored by Doko) ●DISCUSSION POINT 3 : HOW DID JAPAN´S ECONOMY CONTINUOUSLY GROW OVER A LONG PERIOD ? CATCH-UP and DOMESTIC DEMAND (Examining Akira Suehiro´s ´Catch-Up Industrialization Theory´／Examining the World Bank´s ´East Asian Miracle´／Long-Term Growth as a Result of Incremental Innovations)／ ■PART III : THE ERA OF STRUGGLE : JAPAN CAUGHT BETWEEN TWO TYPES OF INNOVATION／ OVERVIEW 4 : JAPAN SINCE THE 1990S (The Japanese Economy Takes a Darker Turn／Japanese-Style Management Turns Dysfunctional／Investment Restraint Mechanism) ●CASE 18. KAZUO INAMORI : Managerial Renewal by a Venture Manager (Inamori Begins Kyoto Ceramic (Kyocera) as a Venture Manager／Future-Oriented Market Cultivation and Technological Development／Hourly Profit System and ´Amoeba Management´／An Entrepreneur Who Upholds His Philosophy on Management／Founding of Daini-Denden Inc.(DDI)／Restructuring Japan Airlines) ●CASE 19. TOSHIFUMI SUZUKI : Convenience Store Innovations from Japan to the World (The Dynamism of Japan´s Retail Industry Development／Brief Biography of Toshifumi Suzuki／Suzuki´s Convenience Store Deployment Strategy／Introduction of the Franchise System／Product-by-Product Merchandise Management and ´Hypothesis-Testing Ordering´) ●CASE 20. TADASHI YANAI and MASAYOSHI SON : Exceptional Challenges Undertaken by the Two Risk Takers (Tadashi Yanai Before 2003／Uniqlo Kicks Off the ´Made in China´ Era／Tadashi Yanai Since 2004／Masayoshi Son Before 2006／Masayoshi Son After 2007) ●DISCUSSION POINT 4 : WHY DID JAPAN´S ECONOMY SLOW DOWN? ICT REVOLUTION and ´DISRUPTIVE INNOVATION´ (Establishment of ´First Mover Advantage´ Through the ICT Revolution／´Disruptive Innovation´ in the Innovator´s Dilemma by Clayton M. Christensen／´The Innovator´s Solution´ and Answer to the Remaining Question) ●CONCLUSION : REVIVING INNOVATION --REQUIREMENTS FOR THE ´TWO-FRONT OPERATION´ (Summary of This Book／Ways to Revive Innovation) |
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