Lessons to be learned from the Japanese construction industry

Abstract

The paper examines the innovative and competitive strategies adopted within Japanese industry and, in particular, within the Big Six Japanese construction companies. It analyses the competitive advantage given to the Big Six through the operation of Japanese industry as a whole, and examines the relationship between the Japanese construction industry and the Japanese Government, and with the culture and work ethic of the people. Factors examined include Japanese industrial policy, industrial targeting, research and development, the objective of global market share, favourable interest rates, and advantageous company structures and investment. With particular regard to the Japanese construction industry, reference is made to the links with enterprise groups and trading companies, the domestic protected market, construction and management methods, and contract management, and comments are made on total quality control and construction philosophy. Strategies which may be of benefit to Western construction projects are identified, with opinions being given on implementation.