"Purpose – This study investigates the dynamic production structure of the Japanese manufacturing industry by using the adjustment cost approach. The study is to shed some light on the unique dynamic structure of the Japanese manufacturing industry. The study attempts to help design and predict industrial policies that are implemented to enhance domestic investments by the Japanese government.
Design/methodology/approach – This study obtains a system of dynamic factor demand and output supply equations by applying the dual approach to the intertemporal value function as represented by the Hamilton–Jacobi equation. By using industrial panel data for 1973–2012 of the Japanese manufacturing industry, the study estimates the system of the behavioral equations and corresponding elasticities. The study uses hypothesis tests and dynamic elasticities to investigate the dynamic structure of the Japanese manufacturing industry.
Findings – Estimation results show that labor and capital are quasi-fixed variables that adjust about 0.2 percent annually to the long-run optimum levels. Estimated adjustment rates are very slow as often presumed about the Japanese manufacturing industry, which uses lifetime employment practice and slow decisionmaking process in investment decisions. The results also show that output supply and factor demand elasticities vary greatly depending on time horizon. Factor demand increases when its own price increases in the short run, suggesting that factor adjustment is mostly determined factor prices in the past due to sluggish factor adjustment. However, factor demand becomes a normal downward-sloping curve in the long run as factor adjustment gets completed.
Originality/value – Japanese manufacturing firms hire employees through lifetime contract to exploit the benefits of dynamic learning-by-doing and execute investments carefully considering all the possible impacts. Under the strategy, adjustment costs for changing workers and capital stock are minimized. Dynamic adjustment model is expected to shed some light on the unique dynamic structure of the Japanese manufacturing industry. However, researches regarding the dynamic factor adjustment of the Japanese manufacturing industry are hard to find. This study is expected to fill the research vacuum."
Keywords
Adjustment costs, Dynamic duality, Production, Japanese manufacturing
2025, Journal of Asian Business and Economic Studies
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Abstract
Purpose
The development of green manufacturing has become essential to achieve sustainable development and modernize the nation’s manufacturing and production capacity without increasing nonrenewable resource consumption and pollution. This study investigates the effect of green industrial practices on technical efficiency for Thai manufacturers.
Design/methodology/approach
The study uses stochastic frontier analysis (SFA) to estimate the stochastic frontier production function (SFPF) and inefficiency effects model, as pioneered by Battese and Coelli (1995).
Findings
This study shows that, on average, Thai manufacturing firms have experienced declining returns-to-scale production and relatively low technical efficiency. However, it is estimated that Thai manufacturing firms with a green commitment obtained the highest technical efficiency, followed by those with green activity, green systems and green culture levels, compared to those without any commitment to green manufacturing practices. Finally, internationalization and skill development can significantly improve technical efficiency.
Practical implications
Green industry policy mixes will be vital for driving structural reforms toward a more environmentally friendly and sustainable economic system. Furthermore, circular economy processes can promote firms' production efficiency and resource use.
Originality/value
To the best of the authors' knowledge, this study is the first to investigate the effect of green industry practices on the technical efficiency of Thai manufacturing enterprises. This study also encompasses analyses of the roles of internationalization, innovation and skill development.
2025, Journal of Asian Business and Economic Studies
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Abstract
Purpose
Green innovation by organisations has the potential to create social impact across five dimensions: social capital, collective identities, environmental literacy, community well-being and human capital. However, the link between green innovation and these dimensions of social impact is underexplored, particularly in developing countries such as Vietnam, where environmental policies are still being framed. Thus, this study provides an exploratory analysis of the social impact of green innovation undertaken by organisations in Vietnam.
Design/methodology/approach
The perspectives of a focal organisation in Vietnam and three related stakeholders are examined. Data were obtained from the research participants using a photo-elicitation interviewing strategy with concept cards. A hybrid deductive–inductive approach to thematic analysis identified five themes.
Findings
There is evidence that green innovation positively influences social impact across the five identified dimensions. Additionally, the analysis suggests that green innovation can generate spillover effects amongst stakeholder organisations.
Research limitations/implications
An obvious limitation of this study is that it is based solely on interviews of executives and managers linked to a focal organisation that is already undertaking green innovation. Due to time and resource limitations, it was not possible to examine other sources of information, such as documentary evidence, which would have increased the reliability of the data.
Practical implications
This paper makes two contributions. First, it presents stakeholders’perceptions of the social impact of an organisation’s implementation of a green innovation strategy. Second, the study demonstrates the use of a novel photo-elicitation technique – concept cards – in undertaking interviews with busy business executives. Such an approach has rarely been used in business settings.
Social implications
This study provides managers with a framework for measuring the social impact of their green initiatives. It is no longer sufficient to evaluate a firm’s financial performance alone. With a growing emphasis on the United Nations Sustainable Development Goals, managers must be able to report the impact of their work beyond business boundaries. Our research findings are also insightful for policymakers working in innovation-related government, providing a comprehensive framework for evaluating the social impact of innovation.
Originality/value
This study investigates the emerging concept of green innovation using a novel “concept cards” interviewing technique. The perceptions of individuals from a sample of organisations in Vietnam provide a practical foundation for organisations’ future development of effective green innovation strategies.
2020, Journal of Asian Business and Economic Studies
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Abstract
Purpose – The purpose of this paper is to evaluate the technical efficiency in the Jordan insurance market and examine the internal and external determinants that appear to affect the technical efficiency of the insurance companies.
Design/methodology/approach – The study used panel data for 22 insurance companies operating inside Jordan over the period 2000–2016. The author used the data envelopment analysis to evaluate the technical efficiency scores, slacks-based and logit models to examine the efficiency determinants.
Findings – The study found that there is a slight development of technical efficiency for the Jordanian insurance companies during the study period. In addition, there is a substantial efficiency difference among insurance companies each year, and there is a variation at the level of efficiency for each company in each year. The results also showed that owners’ equities are among the most important internal determinants of companies’ efficiency, and there is a significant correlation between type, size and return on assets of the insurer and its efficiency.
Originality/value – This study provides insurance management with relevant indicators that would guide them to make efficient use of the resource base. The period of study also covers the period following the adoption of the insurance law and the issuance of most of the legislation related to the work of insurance companies.
