DIFFERENTIATION OF GLOBALIZATION: JAPAN’S ECONOMIC SECURITY AND JAPANESE COMPANIES

Abstract

　Businesses play a vital role in society. As society changes, they must adapt accordingly. Business administration, which deals with corporate management, must also keep up with these changes. This paper focuses on the social transformation known as “the transformation of globalization and globalism.” In particular, it discusses the impact of globalization on the management of Japanese companies and the study of business administration.

　Globalization is a social phenomenon characterized by the integration of civilizations and the movement of people, goods, money, and information. According to Jones (2005), a leading scholar of international business history, globalization can be divided into three periods: (1) the first global economy (1880-1929), (2) the period of fragmentation (1930-1979), and (3) the new global economy (1980-). However, it is possible that (3) the new global economy ended in 2015 and (4) the era of re-fragmentation began in 2016.

　In the era of re-fragmentation, multiple globalizations will develop while globalism is maintained instead of globalism receding and nationalism and regionalism rising. In other words, globalization will be “differentiated” into two camps: the liberal camp led by the U.S. and the authoritarian camp led by China and Russia. As the movement of many kinds of resources is impeded, the distance between the two camps is expected to enlarge, particularly regarding laws and institutions.

　Japanese firms must deal with the differences in laws and institutions, which will also be a response to Japan’s economic security. The restructuring of the supply chain, especially semiconductors, will be an important management issue. It is an opportunity for management scholars to study non-market strategies such as lobbying and deepen the dynamic capability theory by applying psychology. Management scholars should use this opportunity to build up new knowledge in management research.