organizational governance and ethical systems a covenantal approach to building trust american businesses and corporate executives are faced with a serious problem the loss of public confidence public criticism increased government controls and growing expectations for improved financial performance and accountability have accompanied this decline in trust traditional approaches to corporate governance typified by agency theory and stakeholder theory have been expensive to direct and have focused on short term profits and organizational systems that fail to achieve desired results we explain why the organizational governance theories are fundamentally inadequate to build trust we advance a conceptual framework based on stewardship theory characterized by covenantal relationships and argue that design of governance mechanisms using a covenantal approach is more effective in building trust in organizations a covenantal relationship is a specialized form of a relational contract between an employee and his or her organization we argue that regardless of incentives and control mechanisms carefully designed through contractual mechanisms in the absence of covenantal relationships it is extremely difficult to build trust within organizations we propose that organizations are more likely to build trust both at the organizational level and at the interpersonal level when they create reinforcing and integrated systems that honor implied duties of covenantal relationships

national and organizational culture differences and international joint venture performance this study examines the effect of dimensions of national and organizational culture differences on international joint venture ijv performance based on data from a survey of executives from joint ventures between indian partners and partners from other countries we found that the presumed negative effect from culture distance on ijv performance originates more from differences in organizational culture than from differences in national culture

corporate governance reform as institutional innovation the case of japan to address the convergence divergence debate in corporate governance we conduct a multiple case multiple level study to analyze the diffusion of governance innovation in japan we argue that japanese systems of corporate governance neither fully converge to nor completely diverge from the anglo american model rather sony the pioneer of corporate governance reforms and its followers selectively adopted features from this model decoupled them from the original context and tailored them to fit to their own situations to generate governance innovation however we find that the spread of innovation across firms and institutional levels is far from linear and straightforward and that other well regarded firms raised strong opposition to the institutionalization of corporate governance reforms eventually the ministry of justice revised the commercial code to legitimize different systems which led to the emergence of diverse corporate governance practices based on the results of our study we construct an analytical framework to examine innovation diffusion in light of conflicting institutional pressures for change and continuity our analysis adds complexity to the convergence divergence debate by identifying the creation of hybrid corporate governance systems and the nonlinear evolution of such systems as a result of interactions across multiple levels we show the various degrees of decoupling from the anglo american model and identify the antecedents we then extend the conventional focus of innovation research on diffusion across firms to examine diffusion across institutional levels we also contribute to institutional theory by offering insights into organizational field formation and the conceptualization of the state in shaping institutional change and continuity

policy technology and management strategies for achieving sustainable agricultural intensification considerable agreement exists among researchers development practitioners and policymakers regarding the goals of sustainable agricultural intensification sai they include achieving agricultural productivity growth household food security and improved rural livelihoods and employment while simultaneously mitigating environmental degradation however the multiplicity of these objectives as well as the choice of approaches to achieving them and the site and context specificity of specific technological and institutional interventions assures that the research and policy challenges to achieving sai will remain considerable this article summarizes the contributions of the articles in this special issue in four areas of the literature first labor market constraints the labor intensity of specific agricultural technologies and practices and labor s substitutability or complementarity with other inputs are shown to widely influence their viability and related input efficiencies second the articles identify specific tradeoffs and synergistic relationships that arise in the attainment of these multiple goals stemming from technologies management practices and policies introduced under specific agroclimatic market and institutional conditions third these papers contribute to the literature on agricultural technology adoption by furnishing additional empirical evidence on the determinants and effects of investment behavior and adoption of specific technologies and management practices finally the articles in this special issue emphasize that there is no single policy nor technological management or institutional innovation that unambiguously promotes sai preferred policies must be contextualized and sensitive to initial biophysical market and institutional conditions

the translation of corporate governance changes across national cultures the case of germany contrasting systems of corporate governance persist internationally but are subject to regulatory and firm level institutional change such changes may be viewed as organisational innovations often imported from the usa in the face of different national cultures this paper analyses the implications of national culture for the translation of innovations and provides case study illustrations of regulatory and firm level governance changes experienced in germany these illustrations demonstrate that the diffusion of both kinds of change has been subject to substantial translation that is consistent with german national culture

global effects of fiscal stimulus during the crisis abstract the imf s global integrated monetary and fiscal model is used to compute short run multipliers of fiscal stimulus measures and long run crowding out effects of higher debt multipliers of two year stimulus range from 0 2 to 2 2 depending on the fiscal instrument the extent of monetary accommodation and the presence of a financial accelerator mechanism a permanent 10 percentage point increase in the us debt to gdp ratio raises the us tax burden and world real interest rates in the long run thereby reducing us and rest of the world output by 0 3 0 6 percent and 0 2 0 3 percent respectively

management ownership and market valuation an empirical analysis we investigate the relationship between management ownership and market valuation of the firm as measured by tobin s q in a 1980 cross section of 371 fortune 500 firms we find evidence of a significant nonmonotonic relationship tobin s q first increases then declines and finally rises slightly as ownership by the board of directors rises for older firms there is evidence that q is lower when the firm is run by a member of the founding family than when it is run by an officer unrelated to the founder

cultural influence on the development of accounting systems internationally a test of gray s 1988 theory this paper attempts to test the theory developed by gray 1988 linking accounting values and systems with hofstede s 1980 cultural constructs based on data from twenty nine countries it finds that while gray s 1988 model has statistically significant explanatory power it is best at explaining actual financial reporting practices and is relatively weak in explaining extant professional and regulatory structures from a cultural base this paper further finds that both the development of financial markets and levels of taxation enhance the explanations offered by gray 1988

fiscal and monetary policies in complex evolving economies what is the most appropriate combination of fiscal and monetary policies in economies subject to banking crises and deep recessions we study this issue using an agent based model that is able to reproduce a wide array of macro and micro empirical regularities simulation results suggest that policy mixes associating unconstrained counter cyclical fiscal policy and monetary policy targeting employment is required to stabilise the economy we also show that discipline guided fiscal rules can be self defeating as they depress the economy without improving public finances finally we find that the effects of monetary and fiscal policies become sharper as the level of income inequality increases

screening for managerial objectives the debate between agency and stewardship theorists on the nature of managerial objectives in itself implies that a principal may be uninformed about managers objectives this article introduces a model of adverse selection in managerial types where classically opportunistic agents are contrasted with stewards who exhibit intrinsic preferences for the organization s success and experience betrayal crowding out when they are incentivized as if they were agents the analysis characterizes stewardship inefficiencies not previously identified by stewardship theorists this inefficiency is minimized via a menu of contracts that emphasizes the fixed component of pay for stewards moreover steward run firms are more successful than agent run firms

resistance to reform status quo bias in the presence of individual specific uncertainty comment why do governments so often fail to adopt policies which economists consider to be efficiency enhancing our answer to this question relies on uncertainty regarding the distribution of gains and losses from reform we show that there is a bias towards the status quo and hence against efficiency enhancing reforms whenever some of the individual gainers and losers from reform cannot be identified beforehand there are reforms which once adopted will receive adequate political support but would have failed to carry the day ex ante the argument does not rely on risk aversion irrationality or hysteresis due to sunk costs jel d72 f13 why do governments so often fail to adopt policies that economists consider to be efficiency enhancing this is one of the fundamental questions of political economy the answer usually relies on what may be

conservation agriculture organic marketing and collective action in the honduran hillsides conservation agriculture ca is often perceived to provide win win outcomes for farmers leading to reduced erosion and off site sedimentation as well as improved soil fertility and productivity however adoption rates for ca in many regions of the world remain below expected levels this article looks at the effects of participation in organic markets and farmers organizations on the adoption of soil conservation practices based on original survey data from 241 small scale farm households in honduras we find that both participation in organic markets and farmer based groups have positive effects on the number of soil conservation practices adopted the results indicate that besides supply oriented policy measures such as the provision of technical assistance and extension demand related factors are likely to play an important role in sustainable soil management demand oriented policy measures include support for labeling initiatives and consumer education to facilitate value added product differentiation and market segmentation jel classifications q01 q12 q13 q16

culture meaning and institutions executive rationale in germany and japan this paper contributes rare primary empirical evidence to one of the major research questions in the social sciences today namely the linkage between national cultures and institutional structures of national business systems drawing on the work of redding we explore the thinking or rationale of senior executives of leading german and japanese firms about the ideal structure of the economy we find considerable variation in rationale across the two countries and in comparison with the shape of the business system of the united states our study has implications for our understanding of the meaning of economic activity in different countries and of the evolutionary trajectories of national business systems

top executive pay and firm performance in china the sensitivity of executive pay to share price performance has been the main focus of western executive pay studies reflecting shareholders efforts to reduce agency problems by better aligning the rewards of executives with their own however these studies have ignored motivational effects and possible two way pay performance causation this paper reports chinese executive pay performance sensitivity with international comparisons to examine whether china s unique institutional environment has produced outcomes consistent with those for western market economies this same unique environment makes possible the first estimates of two way causation based on panel data analysis the results show that executive pay and firm performance mutually affect each other through both reward and motivation

theorising from case studies towards a pluralist future for international business research the literature on case studies both in the field of international business ib and in the social sciences more generally has tended to focus on the methods of data production and analysis suited to this research strategy in contrast in this paper we investigate methods of theorising from case studies we seek to understand how case researchers theorise and how future ib research might utilise case studies for theorising by means of a qualitative content analysis of case studies published in journal of international business studies academy of management journal and journal of management studies we construct a typology of theorising from case studies two dimensions of the case study namely causal explanation and contextualisation form the basis for our typology we distinguish four methods of theorising inductive theory building interpretive sensemaking natural experiment and contextualised explanation only the first of which has been widely used in jibs in the period that we investigate on the basis of our own qualitative analysis we show the limitations of inductive theory building and argue that greater utilisation of the other methods of theorising would enhance the case study s explanatory power and potential for contextualisation we argue for a more pluralist future for ib research

impact of post restatement actions taken by a firm on non professional investors credibility perceptions the frequency of earnings restatements has been increasing over the last decade restating previous earnings erodes perceived trustworthiness and competence of management giving firms strong incentives to take actions to enhance perceived credibility of future financial reports farber d b 2005 the accounting review 80 2 539 561 using an experimental case we examine the ability of post restatement actions taken by a firm to positively influence non professional investors perceptions of management s financial reporting credibility our examination considers credibility judgments following two types of restatements those resulting from fraud in which the character ethics and values of an organization may be called into question cf copeland jr j e 2005 accounting horizons19 1 35 43 and those resulting from non fraud i e aggressive accounting

suppliers as stewards managing social standards in first and second tier suppliers buyer supplier relationships are often framed as principal agent relationships based on contractual arrangements that temporarily align the goals of both parties the underlying notion is that the relationship between buyers and suppliers is adversarial in nature and that the supplier acting in the role of the agent will take advantage of the principal if not sufficiently controlled we propose that there is empirically also another type of partnership which reflects the propositions of stewardship theory according to this theory suppliers are motivated to work autonomously towards contractually agreed objectives we analyse how the agency and stewardship theories differ regarding their descriptions of autonomy motivation identification authority stakeholder orientation and short versus long term collaboration we analyse the case of a first tier supplier and four second tier suppliers situated in turkey in the area of istanbul which collaborate with the aim of improving their social and environmental performance the results show that the relationship between the partners in this case has become more collaborative over time and can now be described in terms of stewardship theory rather than in terms of agency theory we conclude that the distinction between agency and stewardship relationships is empirically meaningful in the context of supplier buyer relationships and adds a new aspect to our understanding of how to achieve more sustainable supply chains

striking a balance between rules and principles based approaches for effective governance a risks based approach several recent studies and initiatives have emphasized the importance of a strong ethical organizational dna odna to create and promote an effective corporate governance culture of trust integrity and intellectual honesty this paper highlights the drawbacks of an excessively heavy reliance on rules based approaches that increase the cost of doing business overshadow essential elements of good corporate governance create a culture of dependency and can result in legal absolutism the paper makes the case that the way forward for effective corporate governance is to strike an optimal balance between rules based and principles based approaches the recent corporate scandals have demonstrated that the ethical odna is critical to the driving force and basis of legal and regulatory requirements effective governance means adhering to ethical principles not merely complying with rules and is a crucial guardian of a firm s reputation and integrity it is through an effective corporate governance program that is one that optimally captures and integrates the appropriate aspects of rules based and principles based approaches and identifies and assesses the related risks that an organization can reconfigure its odna for improved performance focusing on the ethical odna as the basis of new governance measures provides an opportunity to develop a competitive advantage as it represents a potential source of differentiation strengthens the relationship with all stakeholders of the organization by building a culture of trust and integrity and re instills investor confidence this paper employs dialectical reasoning that links the odna through principles driven rules in developing a risks based approach a comparison from a risk assessment perspective between rules based and principles based approaches is presented although there have been few applications employing dialectical reasoning in business research this methodology can be extremely useful in isolating ethical issues and integrating them into the business process the risks based approach captures the benefits of both rules based and principles based approaches and incorporates trust based principles such as solidarity subsidiarity and covenantal relationships

rethinking fiscal policy the use of fiscal policy as a stabilization device has all but vanished more or less explicitly in europe and de facto in the united states the practical consequences have not been entirely satisfactory in either place so it is important and timely that the oxford review is devoting a special issue to the macroeconomics of fiscal policy in this paper i want to discuss two underlying questions about the eclipse of fiscal policy why did this happen and was it a good ideaq and if it was not a good idea then what followsq copyright 2005 oxford university press

developing difference social organization and the rise of the auto industries of south korea taiwan spain and argentina theories of economic development as diverse as modernization dependency world system and market reform take a critical factor view proponents of each theory argue that countries fail to develop because of an obstacle to economic growth we argue instead that neither a critical factor nor a single path leads to economic development viable paths vary economic growth depends on linking a country s historically developed patterns of social organization to the opportunities of global markets we formulate a sociological theory of cross national comparative advantage including not only economic factor endowments but also institutionalized patterns of authority and organization such patterns legitimize certain actors and certain relationships among those actors which facilitate development success in some activities but not in others we illustrate this approach to understanding development outcomes with a comparative analysis of the difficult rise of the automobile assembly and components industries in south korea taiwan spain and argentina

the socio cultural environment for entrepreneurship a comparison between east asian and anglo saxon countries this study uses a theory of face to identify predictors of interest in entrepreneurship in six east asian and four anglo saxon countries at the cultural level social status of entrepreneurship and shame from business failure predict interest in entrepreneurship better in east asian than anglo countries at the individual level social status predicts interest in entrepreneurship in the entire sample

comparing capitalisms understanding institutional diversity and its implications for international business this paper examines the role of institutional analysis within the field of international business ib studies within ib institutions matter but the view of institutions tends to be thin utilizing summary indicators rather than detailed description and thus approaches institutions as unidimensional variables that impact on particular facets of business activity this paper argues that ib research would be usefully advanced by greater attention to comparing the topography of institutional landscapes and understanding their diversity a number of alternative case based approaches are outlined that draw on a growing comparative capitalisms literature in sociology and political science the paper develops a number of empirical examples to show the utility and limits of these approaches for ib scholars

strategies for sustainable intensification in east african highlands labor use and input efficiency strategies for poverty alleviation and sustainable natural resource management usually focus on land use options for improving yields increasing the returns to critical factors requires possibilities for input substitution inadequate timing of input applications or nonavailability of complementary factors can seriously hinder this substitution such constraints particularly apply in less favored areas where soil organic matter content is too low for enabling efficient nutrient uptake and soil structure limits water infiltration and moisture retention this article focuses attention on the importance of labor for crop management activities and input applications that enhance input efficiency in highland area cropping systems of northern ethiopia given the inherent complementarities between labor and nutrient supply during critical phases of the plant growth process input efficiency strongly depends on labor use we present a semiparametric bioeconomic modeling approach to analyze the available options for improving input efficiency in agricultural production input response equations are used that consider the returns per unit of land and labor as a function of specific combinations of material inputs and management practices critical trade offs may arise when opportunity costs for labor are considered or when complementary factors appear as binding constraints the model enables assessment of feasible pathways for enhancing sustainable intensification and poverty alleviation in typical settings of the east african highland region

the effect of cultural differences on behavioral responses to low job satisfaction this article reports the results of a field study that evaluated behavioral responses to low job satisfaction of participants in hong kong and new zealand culture measured by vertical and horizontal individualism and collectivism had both main and moderating effects on responses first cultural groups responded differently to low job satisfaction with exit voice loyalty or neglect second culture moderated the effect of quality of job alternatives and job satisfaction on exit and loyalty and moderated the effect of quality of job alternatives on voice

neither principles nor rules making corporate governance work in sub saharan africa corporate governance is often split between rule based and principle based approaches to regulation in different institutional contexts this split is often informed by the types of institutional configurations their strengths and the complementarities within them this approach to corporate governance regulation is mostly discussed in the context of developed economies and their regulatory demands however in developing and weak market economies such as in sub saharan africa there is no such explicit split and the debates on such contexts in the comparative corporate governance literature have been meagre nonetheless there are sparks of good corporate governance practices in the region drawing from institutional theory and a case study of a largest economy we explore the appropriateness or suitability of corporate governance regulatory frameworks in sub saharan africa our findings suggest that nigeria needs an integrated system that combines elements of both rule based and principle based regulation supported by a multi stakeholder co regulation strategy this paper departs from the mainstream rule based and principle based categorisations by forging ahead new perspectives on corporate governance regulation especially in weak market economies

investor protection and corporate governance recent research has documented large differences among countries in ownership concentration in publicly traded firms in the breadth and depth of capital markets in dividend policies and in the access of firms to external finance a common element to the explanations of these differences is how well investors both shareholders and creditors are protected by law from expropriation by the managers and controlling shareholders of firms we describe the differences in laws and the effectiveness of their enforcement across countries discuss the possible origins of these differences summarize their consequences and assess potential strategies of corporate governance reform we argue that the legal approach is a more fruitful way to understand corporate governance and its reform than the conventional distinction between bank centered and market centered financial systems

culture and congruence the fit between management practices and national culture the financial performance of european and asian work units of one multinational company is examined as a function of the congruence between management practices and national culture using hofstede s five national culture dimensions and analogous management practices we find that work unit financial performance is higher when management practices in the work unit are congruent with the national culture

thermoclimate culture and poverty as country level roots of workers wages most employees are under or overpaid relative to their country s level of wealth this 58 nation study makes a case for more temperate less cold or hot climate as a root of a more mastery oriented culture which in turn is associated with wealth referenced overpayment overpayment is larger in poorer countries that also have a more temperate climate a more mastery oriented culture or both supplementary examination of 25 rival predictors corroborated the conclusions

what differences in the cultural backgrounds of partners are detrimental for international joint ventures an international joint venture implies that a firm has to cooperate with a partner with a different cultural background in this study hypotheses about which differences in national culture are most disruptive for international joint ventures were developed and tested using hofstede s five dimensions the study focused on how these dimensions affect the survival of international joint ventures as well as their incidence relative to wholly owned subsidiaries the hypotheses were tested on longitudinal data about 828 foreign entries of twenty five dutch multinational in seventy two countries between 1966 and 1994 the database which spans almost three decades was also used to provide new evidence on a key assumption of hofstede s work that cultural values are stable over time

keeping good company a study of corporate governance in five countries this study describes in turn the systems that operate in five leading industrial countries germany japan france the usa and the uk it establishes two basic principles of good corporate governance and shows how they are applied in each country indicating where methods vary and how most countries fall short of the ideal the book concludes by highlighting the uk s strengths and weaknesses and calls for a thorough overhaul of policy

deprived land use intensification in shifting cultivation the population pressure hypothesis revisited this article provides a theoretical framework based on optimal control theory to analyze farm households land use intensification decisions in forest based shifting cultivation slash and burn agroecosystems the main results from the analysis generally coincide with the population pressure hypothesis pph as an important driver of soil degradation due to the so called fallow crisis or deprived land use intensification in shifting cultivation however the model also shows from a supply perspective that such a vicious circle of lower yields and greater forest land clearing may be avoided when the production elasticity of on farm labor outweighs the elasticity of substitution between farm labor and soil fertility furthermore using data from shifting cultivating households from yucatan mexico we calibrate the effect of changes in population density the numerical analysis suggests that by contrast to better off households when population density increases poorer shifting cultivating households optimal labor allocation strategy is to further extensify land use by clearing more forest in the village common property land or ejido land

cultural adaptation of business expatriates in the host marketplace satisfaction with the host culture has been found to influence the expatriate s commitment to the local operation and to the parent company this paper investigates the role that the expatriate s consumer experiences play in the determination of his her satisfaction with the new culture market alienation has a negative effect on satisfaction but it is reduced by participation in the host marketplace further cultural knowledge was not found to be directly related to satisfaction with the host culture but rather was related indirectly through its association with participation in the host marketplace

multiculturalism from a cognitive perspective patterns and implications multiculturalism the internal representation of multiple cultural meaning systems has critical implications for global managers and multinational corporations mncs understanding multiculturalism is becoming increasingly important given that the locations within which mnc activity resides and the composition of the workforce even within a given location are more diverse building on the connectionism perspective we offer a novel cognitive conceptualization of multiculturalism that incorporates the individual s multicultural cognitive content and structure based on that we explain how specific sociocultural experiences interact with existing individual cognitions to form different patterns of multiculturalism specifically we propose five stylized patterns compartmentalization integration inclusion convergence and generalization and explain how they are developed through specific sociocultural experiences we discuss how different patterns of multiculturalism influence specific capabilities of multicultural mnc managers and their effectiveness in a variety of critical mnc tasks we believe the cognitive connectionist perspective which has not been brought before into international business discussions of culture and cultural capabilities holds great promise for better understanding global managers capabilities and development

how corporate social performance is institutionalised within the governance structure since ackerman in corporate social responsiveness the modern dilemma 1973 pleaded for the institutionalisation of corporate social performance csp in business processes researchers have focused on the role of strategy in csp this article demonstrates that csp is institutionalised within the governance structure we will attempt to make this clear by means of a description of the dutch system of corporate governance under certain circumstances dutch companies are already bound to csp due to prevailing legislation a governance perspective shows that csp is institutionalised within a company s governance structure processes of responsiveness since long regarded as a starting point of csp analysis appear to be decision making processes within these processes the expectations of the stakeholders can be institutionalised trust can be built and interests can be incorporated this makes csp context dependent however it is possible to analyse companies by comparing the companies individual governance structures the article concludes that csp analysis can fruitfully extend into analysing in the role of the stakeholders in the influence pathways that are incorporated within the governance structure

institutional cultural and transaction cost influences on entry mode choice and performance in this study we examine foreign market entry mode choice and firm performance for a sample of european union firms examining both financial and non financial performance measures we attempt to determine if firms that select their entry mode based on transaction cost institutional context and cultural context variables perform better than firms that make other mode choices we found that mode choice did matter firms whose mode choice could be predicted by the extended transaction cost model performed significantly better on both financial and non financial measures than did firms whose mode choice could not be predicted by the extended transaction cost model implications for future research are discussed

the role of automatic stabilizers in the u s business cycle most countries have automatic rules in their tax and transfer systems that are partly intended to stabilize economic uctuations this paper measures how eective they are at lowering the volatility of u s economic activity we identify seven potential stabilizers in the data and include four theoretical channels through which they may operate in a business cycle model calibrated to the u s data the model is used to compare the volatility of output in the data with counterfactuals where some or all of the stabilizers are shut down our rst nding is that proportional taxes like sales property and corporate income taxes contribute little to stabilization our second

explaining diversity in the worldwide diffusion of codes of good governance extending earlier literature on diffusion of codes of good governance cggs by integrating the effect of national culture this study offers a novel perspective on cross national diversity in the worldwide diffusion of corporate governance best practices we argue that particular cultural dimensions affect the indicators i e total number of codes per country and identity of issuing organizations of such diffusion for a sample of 67 countries our analysis reveals that individualist cultures have a stronger tendency to develop cggs in cultures with a high receptivity to power differences there is a higher probability that the first issuers are the government directors or professional associations whereas with low receptivity the stock exchange and investors groups of issuers are more likely to initiate the first code the effects of culture remain significant even after accounting for differences in legal systems and economic institutions indicating that national culture may serve as a comprehensive indicator of the regulatory stance with respect to good governance indeed the effect size is large enough to give pause e g to a location choice and possibly has relevance for strategic decision making by international companies

national institutional structures transaction cost economizing and competitive advantage the case of japan japan s economic success since world war ii has been striking modern japan was the first major industrial economy to emerge from outside the western tradition economically devastated in 1945 by 1990 japan had the world s second largest economy and a gdp per head 20 percent greater than that of the united states in this paper it is argued that one reason for japan s success is that the costs of achieving cooperation and specialization are lower in japan than in the west cooperation and specialization have been acknowledged to have a beneficial impact upon productivity ever since adam smith wrote about cooperative specialization in the context of the division of labor modern economic theory however suggest that in a world of self interested individuals the costs of achieving cooperation and specialization are substantial in this paper it is argued that the cultural value system that japan has inherited from its preindustrial past and particularly the tokugawa period helps facilitate cooperation b