Abstract
The purpose of this paper is to examine how the foreign affiliated companies contributed to the Japanese modernization of management system in production, marketing and employment mechanism in the pre-war period.
In production, the Japanese companies studied production technology, mass production system and Taylor system. In marketing, the Japanese companies studied franchise system and sales in installment system.
In employment mechanism, the Japanese companies did away with subcontract system and introduced the direct employment.
In conclusion, the Japanese modernization of business management has been done throughout the transfer of business system that the foreign affiliated companies had introduced. At the same time, both the Japanese companies and the foreign affiliated companies have taken a positive attitude to R & D.
