ABSTRACT
The chapter discusses what the traditional Japanese HRM system is and what it implies for Japanese firms and their employees. Why has the system remained intact for so long among most Japanese firms? This point needs to be understood from the point of view of institutional theory, which helps to describe the systematic characteristics of the firms and their difficulties in transforming the system. Interestingly, the number of Japanese employees who prefer lifetime employment has increased recently. The traditional Japanese HRM system is furthermore adopted by Japanese firms’ overseas subsidiaries through organisational expatriates. Whether and how the system can be legitimated by local employees is also introduced. While the book focuses on self-initiated expatriates who work in Japanese firms in Japan, the case of Japanese firms’ overseas branches hiring local staff can show us some experiences that relate to this book’s empirical studies.
