Problems of Small and Mid-Sized Enterprises in Japan’s Software Industry

Mita Takahashi ()
Additional contact information
Mita Takahashi: Osaka Sangyo University, Japan

Eurasian Journal of Economics and Finance, 2020, vol. 8, issue 4, 274-278

Abstract: This paper examines the reasons that most small and mid-sized enterprises (SMEs) in Japan’s software industry do not develop into large firms. Thousands of SMEs are informally organized under several large companies. Those SMEs have experienced difficulty developing into large firms. This industrial structure has remained for several decades. Several papers have already suggested reasons for this phenomenon, but each paper in the literature has given few reasons. This paper analyzes the issue more comprehensively. First, this article surveys the literature and determine several factors that contribute to the issue. Then, this paper demonstrates how they complicate the issue and make it difficult to solve. Finally, the paper illustrates several approaches in an effort to find solutions. The first method is introducing agile modeling and other iterative software development processes. Agile modeling adjusts design change more easily compared with other software development processes. Other iterative software development processes also adjust design change easily compared to the waterfall model. By using these processes, software engineers can avoid long overtime work, which contributes to the difficulties in securing human resource. The second method is for software firms to demand appropriate compensation for each design change. If many Japanese firms did this, overtime work would be shorter, and the working environment of SMEs would improve. Then, SMEs obtain excellent workers. This will help SMEs to grow to large firms.

Keywords: Software Industry; SMEs; Japan; Custom Software (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://eurasianpublications.com/wp-content/uploads/2021/02/EJEF-8.4.7.pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ejn:ejefjr:v:8:y:2020:i:4:p:274-278

Access Statistics for this article

Eurasian Journal of Economics and Finance is currently edited by Xuan Vinh Vo

More articles in Eurasian Journal of Economics and Finance from Eurasian Publications
Bibliographic data for series maintained by Esra Barakli ().