Roles and Problems of Mother Plants in Automobile and Electronics industries

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This study examines the roles and problems of mother plants and headquarters in Japan to their affiliates abroad, particularly focusing the transfer of technology.1.There is no question that the 'Material-Result' type of technology transfer, such as product technology, and capital goods including equipment and components from Japan, had playd a crucial role in the transfer of technology by mother plants to their affiliates.2.The 'Material-Method' type of technology transfer, such as maintenance of equipment and quality control, is also important. The tasks of Japanese expatriate and temporarily dispatched employees are often relevant to these efforts.3.Japanese compains educate and train local employees enthusiastically, especially by emphasizing production control. With an emphasis on OJT,Japanese companies often supplement insufficient training at affiliated plants by sending numerous local employees to Japan for training at the mother plants. This type of enthusiasm for education and training is a salient feature of Japanese multinational companies.Nevertheless, Japanese multinationa ; companies must face a number of problems.1.'Human-Method' type of technology transfer, such as multifunctional skills and employee participation to management, lags behind 'Material-Method' type of technology transfer. This leads to poor co-ordination between different sections, which in turn may hamper trouble shooting regarding quality or maintenance.2.Reliance of 'Material-Result' type of technology transfer contributes to a trade deficit with Japan on the part of the host countries.3.In numerous cases, strong authority is exercised by headquarters or mother plants in Japan. This stifles the motivation of local employees and imposes too heavy burden for headquarters in terms of information processing.