Labour regime and industrialisation in the knowledge economy : the Japanese model and its possible hybridisation in other countries

Abstract

Given the perceived role of Japanese Human Resources Management policies and labour regimes in fostering innovation and industrialisation, it is interesting to see whether these practices have or will spread beyond Japan. While the recent financial difficulties in Japan have brought this model into question, Japanese-style organisational methods and labour regime in human resources management have not been totally discredited. Many elements of the innovation system are still considered a source of strength and continue to provide a reference for future industrial development. This article starts by explaining the different dimensions of what has become known as the Japanese innovation system, highlighting the elements which appear pertinent in the modern economy. It then assesses which dimensions of the Japanese model have been retained in a foreign setting, Canada, and how Canadian emulators of the Japanese model compare with Japanese firms. The observation leads to a conclusion of continuity and transition. While many quality-oriented Canadian firms have moved towards the Japanese model of innovation and production organisation, these practices seem to have been substantially adapted to the local context.