Introduction

The Japanese economy and society have reached a high state of maturity. In view of the depth and extent of the current crisis, the time has come to reassess the future of the major features of Japanese management, in particular in relation to employment practices. In contrast to the then much-acclaimed Japanese model of human resource management, industrial prowess and financial organization, the economic downturn that followed in the 1990s raised serious doubts about the real effectiveness of the Japanese business system. Standard theories of the company, based on neo-classical economic analysis were shown to be inadequate to explain the model of the Japanese company. As growth slowed, already in the 1970s pressure started to develop between the business environment and traditional management practices, and Japan entered into a period that Hasegawa described as one of "contrived compatibility". Although Japanese people have legitimate concern about the shape of their financial institutions, the country is not on the brink of collapse.