Japanese Sogo Shosha Corporations and Hidden Champions’ Barriers to Digital Transformation (DX)

Joe Hug () and Hirohisa Abekawa ()
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Joe Hug: iU University
Hirohisa Abekawa: iU University

A chapter in Business and Management in Asia: Digital Innovation and Sustainability, 2023, pp 19-33 from Springer

Abstract: Abstract This chapter explored the extent to which Japanese MNCs known as sōgō shōsha (総合商社) are able to meet digital transformation (DX) initiatives. The aim was to understand DX barriers of both large and small enterprises. Interview participants were senior executives and higher-level managers of Japanese organizations. Qualitative data consisted of individual online interviews. Data analysis findings identified that a similar barrier existed for both large and small companies related to a shortage of skilled talent. Participants were asked about current internal and external processes, emergence of silos within their organization, and human resources challenges to Dx. Interviews with SME leaders from businesses that can be categorized as Japanese “Hidden Champions” or traditional Japanese companies. In the final section, we examined the cultural factors associated with risk avoidance versus uncertainty avoidance. We also examined the ability of these companies to create innovative solutions to avoid the 2025 Digital Cliff.

Keywords: Digital Transformation (DX); Japan; Multinational Corporation (MNC); Small and mid-size Enterprise (SME); Sōgō shōsha; Trading Company; Hidden Champions (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-19-6418-3_2

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DOI: 10.1007/978-981-19-6418-3_2

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