Technology Strategy and Industrial Relations: Case Studies of Japanese Multinationals in the United States

Abstract

Eight case studies of U.S. manufacturing subsidiaries of Japanese multinationals are analyzed in terms of variations in competitive strategies and industrial relations practices. Based on data collected in 1980 during on-site visits, each firm is reviewed in light of the technology contributions coming from the Japanese parent and is categorized as having product-, process-, and/or management-centered technology strategies. The industrial relations practices are also grouped according to similarities observed. These groupings are then compared and contrasted. The findings are consistent with hypotheses that firms with management-centered strategies are more likely not to be unionized and to oppose unionization, to prefer a less stratified work force in terms of number of job classifications and specifically identified job assignments, to maintain flexibility in work-force management, to conduct considerable cross-training and to strive to avoid layoffs of production personnel. Conversely, the groupings indicated little relationship, if any, between technology strategy and compensation levels. The findings are interpreted in light of product-life-cycle and risk-aversion models of firm behavior. The question of whether technology strategy is a reasonably good predictor of industrial relations practices is also addressed.