From the description above it would seem clear that i

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Unformatted text preview: ctively Japanese and differ from those of other OECD countries. 14 How far they go will ultimately be settled by the complex interplay of the interests of business, politicians, and bureaucrats. A preferable economic, or ‘structuralist’ view is the one which can be discerned in the earlier discussion of the notion of the firm as a system of attributes. If various aspects of the Japanese model are intertwined, that, in itself, provides an obvious reason to expect only incremental change. From the description above it would seem clear that: (i) a breakdown of the labour-market system would alter the incentives for commitment which make the information structure work; (ii) a breakdown of the insider system of corporate governance would threaten the relationshipspecific investments made by labour and management; that, in turn, would require more development of external labour markets, would reduce on-the-job training incentives and would probably lead to different forms of incentive contracts f...
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