This article explores companies in developing countries, and how their recognition of the Japanese production system (JPS) affects their capability building. A case study was conducted of Hyundai Motor Company, which recognized the implementation of the JPS as an “overall goal” of capability building, aiming to introduce the JPS thoroughly throughout the organization. Although it was not able to introduce the JPS completely, the non-implementation of the JPS in certain areas of the organization stimulated the development of a unique production system both within and outside Korea. From this case, we can argue that (1) recognizing the JPS as an overall goal can stimulate capability building of companies in developing countries, and (2) the technology, knowledge, and management systems of companies in developed countries can help companies in developing countries expand overseas.