Export Dynamics,Strategies and Performance within Japan's Machine-Tool Industry

Despite increased global market competition, Japan remains a leading producer of metal-cutting machinery. Exporting plays an important role in firm-level strategies, an approach that has occurred with much success in many of Japan's capital goods sectors. This article examines the dynamics of exporting within Japan's machine-tool sector in the context of recent industry changes and in terms of evolving product make-up. Evidence from a recent series of interviews mainly conducted in 2006 suggests that firms use a variety of strategies to succeed in export markets, with an emphasis on increased precision and service. These strategies continue to keep many Japanese producers in prominent market positions, despite spatial redistributions of world manufacturing activities.