Business in Japan and the United States of America; some implications for management science and operations research

Significant differences exist between United States-managed and Japanese-managed organizations.

• •• U.S. firms are epitomized by surplus behaviors (emphasis on profits and returns on assets, investments and equity).
• •• Japanese firms are characterized by scarcity behaviors (emphasis on husbanding resources and reduction of waste).
• •• Management Science has been used in the generally surplus-oriented Western-world. Western values drive its application, or the decision not to apply it.
• •• Management Science can work effectively within a scarce-resource framework, as well as within a surplus-resource framework.
• •• Management Science has been barely used by the Japanese, although they might use it effectively. A possible explanation is that the Japanese culture is pervasive and consistent in dealing with scarcity.
• •• Management Science, when combined with a severe distaste for waste, may enable Western-world management to develop better strategies to achieve Global Competitiveness.
• •• The scarcity-oriented value system elevates the importance of people as resources. Management Science, to be effective, must do the same.