ABSTRACT

Japan has successfully transformed from a country whose economy and industrial base was in shambles after World War II to become a true “economic superpower.” Japanese goods, once equated with poor craftsmanship and quality, now inundate the US market and have driven many US rms out of business. A number of different theories-ranging from macro to micro to cultural-have been advanced to explain the success of Japanese companies in penetrating foreign markets (Dooley et al. 1990) Japanese corporations used “superior quality” to capture, hold, and build market share (Ghobadian and Woo 1996). A key theme that has emerged is the relentless pursuit of quality by most of the successful Japanese companies. The emphasis on quality permeates throughout Japanese organizations and is embodied in the widespread adoption of TQC principles and statistically based methods within rms and across industries. Positive reinforcement is provided in the form of a national award-the Deming Prize (Dooley et al. 1990).