During this essay, it will be analysed the differences and similarities between The Japanese Theory Firm plus the Transactional Cost Approach by Williamson and we will see how genuine could be this method in our modern day economy program.

One particular crucial aspect that helped the current Technical Revolution was your Japanese Theory of the Company best developed by Aoki, when the firm is seen from a different perspective as it was seen just before from the United States. To understand better this big difference, it is necessary to generate a comparison between both types.

To start with, the Unit H which means the Company in america which was viewed as a hierarchical model in which the frequency from the transaction was important to assess if it was better to internalize instead of externalize constantly respecting the hierarchical style within the company. I think that model could better used in a framework of concern and changing markets what differs through the Japanese Version.

The Horizontal Dexterity is one of the most crucial characteristics with the Japanese Style, there must be a horizontal coordination in order to work in a quick and flexible approach to respond far better to the scientific changes and variations of the market, and for the Model H, this might be a problem, since Aoki (1990) argues " the H mode of coordination may become problematical, however , if diverse consumers, tastes comes come to demand a various products" and " when the need to deliver ordered products without holdups hindrances impediments becomes essential for gaining a competitive edge" (pag 4). It explains the fact that model They would just focuses on the information " a priori", information that already is available from the specialization of assets, it means for example the production great which are also specific and standardized, this may be for the H Version. Aoki (1990) argues that " The H version has to necessary features: you The hierarchical separation between planning and implemental operations and a couple of the focus on the financial systems of the specialization" (page 5).

Alternatively, in the Japanese model the info ex-post that emerges from the practice is usually taken into account in order to change the first production planning and it might be used for the organizational desired goals for instance, if there are clients asking for new releases, if there is a problem in the quality of the product, the initial development planning could possibly be adjusted as a result of stakeholder's needs and the enhancements made on the market and this asks for a Side to side Coordination.

I consider that the Japanese people Model could better applied in firms than the Hierarchical Model because of certain advantages that one version has above the other. For example, the capacity of learning from the private when applying new technology to produce the goods, the importance of communication between the executive levels in the organization when for instance , within the organization the production office needs help from the marketing department which may have information on the up date stakeholder's demands as well as enabling someone from department to move to another one particular, in this way automobile could get familiar with other job processes which facilitates the exchange and technique of information to be able to guaranty better ways of development. These may be the more relevant advantages from the Japanese Version. One example of the Horizontal Dexterity would be the Automotris case which is sometimes called " kanban" this is a card that will bring connect 1 section of the availability area with another, the moment for example there is certainly one garage area that requires bits to set up a car they will send this card directly to the next storage area to get the products then they are sent to the issuer. That actually decreases time and cost to get in touch with the other areas without having to speak with the suppliers area displaying this that The Horizontal Dexterity works better than the Hierarchical Dexterity.

In the Japanese model the employee could possibly be...

References: Aoki, M. (1986), " Horizontal Vs . Straight Information Framework of the Firm”. The American Economic. 76

Aoki, Meters, (1990) " Toward and Economic Type of the Japanese Firm”. The Record of Economic Literature. Vol 28.

Diana Carolina Poveda

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