Empirical Study on the Application of Strategic Management Tools and Techniques in the Japanese Companies

Abstract

Companies are under pressure to develop management strategies with a focus on intensifying global competition due to big changes in the business environment and the wave of globalization.  Even though management strategy tools and techniques were developed over half a century ago in the academic field of business administration, little research has been found on how much these are used in Japanese companies. Furthermore, it is necessary to clarify how effective the management strategy tools and techniques actually are. This study examines the usage (usage quantity and rate) of 26 main strategic management tools and techniques used in a preceding study, with KAIZEN, ISO9001, BCP (Business continuity plan) which are thought to be spreading in Japanese companies in the manufacturing and retail industries. Because the managers’ awareness (how much interest they have in the tools and awareness of their effectiveness ) is considered to influence organisational performance, we decided to use the statistical method such as regression analysis.  The results of the analysis show that there were tools and techniques that had a high to low usage rate and it is clear that there is a difference in the usage rate between industry (manufacturing industry and retail industry). Also, when using such tools and techniques, we could substantiate that they have a  positive influence on organisational performance (financial performance and nonfinancial performance). Regarding managers’ awareness, the more the companies are interested in tools and techniques and have awareness of their effectiveness, the higher the organisational performance.  It is suggested that it is important for managers in Japanese companies, to be familiar with the tools and techniques and that they be used in a timely and appropriate manner.

Keywords: Strategic management tools and techniques, Strategic planning, Organisational performance