Competitive Advantages of Family Businesses in Traditional Industries : Case Study of the Cutlery Industry in Japan and Germany

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  • 伝統産業におけるファミリービジネスの競争優位 : 日本とドイツの刃物産業の事例研究
  • デントウ サンギョウ ニ オケル ファミリービジネス ノ キョウソウ ユウイ : ニホン ト ドイツ ノ ハモノ サンギョウ ノ ジレイ ケンキュウ

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Abstract

Mass production systems and mass consumption have destroyed the natural environment. At the same time, modern industries have concentrated in big cities, and suburban economies have declined. Nowadays, traditional industries have become the subject of discussions in management literature, because such industries have formed industrial clusters that have a significant impact on the growth of the local economy. However, traditional industries face challenges of inefficiencies that come from old business practices and legacy production systems. However, traditional industry companies can also rely on the strengths of family-run businesses. This study uses a case study analysis of the cutlery industry in Japan and Germany to examine the competitive advantages of traditional industries. The research shows that companies that have survived for a long time in traditional industries have strong family ties, preserve traditional skills, produce high quality products, possess strong brands, use wide networks, and fulfill their corporate social responsibilities. As a result, the next generation can continue successfully in traditional industries.

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