MANAGEMENT PRACTICE OR STRUCTURAL FACTORS - THE CASE OF AMERICA VERSUS JAPAN IN THE CAR INDUSTRY

This article analyses the determinants of Japanese success against Ame rica in the car industry. It examines the physical productive performa nce gap between the national sectors in terms of hours to build, and t he financial performance of major companies in terms of value added an d cash flow. It then outlines the pertinent structural variables befor e demonstrating their relevance to the competitive outcome in this cas e. The conclusion is that management action may be relevant to competi tion within national settlements, but structural variables are likely to be decisive in competition between social settlements where structu ral variables like wages and hours worked have different values.