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Organizational Learning for Sustainable Semiconductor Supply Chain Operation: A Case Study of a Japanese Company in Cross Border M&A

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  • Masaki Okada

    (Japan Advanced Institute of Science and Technology, 1-1 Asahidai, Nomi 923-1292, Ishikawa, Japan)

  • Kunio Shirahada

    (Japan Advanced Institute of Science and Technology, 1-1 Asahidai, Nomi 923-1292, Ishikawa, Japan)

Abstract

As semiconductor usage is prevailing, sustainable growth is deemed highly dependent on the semiconductor supply chain. Accordingly, it is essential to establish robust supply chain capability for a semiconductor company. Especially for Japanese semiconductor manufacturers, it is critical to secure robust and flexible supply chain operation with the background of the experience of supply chain disruption caused by the East Japan Earthquake. So far, we identified that Japanese semiconductor manufacturers and Japanese automotive manufacturers have been in cooperation to secure the semiconductor supply chain. However, the global electronic industry environment has been significantly changed and it is not enough just to consider natural disasters. With this perspective, it is not yet fully studied how Japanese semiconductor manufacturers adapted to global operation through organizational learning. This paper examines how a Japanese semiconductor firm conducted organizational learning and adapted to environmental changes in cross-border M&A transactions. Traditionally, Japanese firms have established organizational routines for the management control systems of their overseas subsidiaries by relying on the expatriates’ transactive memory systems (TMS), which is based on their personnel experiences over the countries and cultural background understanding. Japanese firms have used TMS of expats to manage their global organizations. Recently, however, not a small number of Japanese companies have accelerated their globalization through cross-border M&A, which requires organizational capabilities different from those of conventional TMS formation. In this paper, we studied a case of cross-border M&A of a Japanese semiconductor company by modeling the organizational learning structure throughout the extracted concepts summarizing semi-structure interview outcome. As a result, it has been found out that, by shifting from Japanese cultural norms to more global values in terms of management systems, benefits can be achieved. The company unlearned organizational routines that relied on TMS and created new organizational routines. This study provides direction from a practical perspective on how Japanese firms can transform their global organizations and adapt to changes in the environment for sustainable growth.

Suggested Citation

  • Masaki Okada & Kunio Shirahada, 2022. "Organizational Learning for Sustainable Semiconductor Supply Chain Operation: A Case Study of a Japanese Company in Cross Border M&A," Sustainability, MDPI, vol. 14(22), pages 1-18, November.
  • Handle: RePEc:gam:jsusta:v:14:y:2022:i:22:p:15316-:d:976445
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    References listed on IDEAS

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