Japanese companies were not nimble enough to change their business models. Markets today are more efficient and mobile. Moreover, we live today in a more global world than we did ten years ago. Thus, information, human resources and capital flow more smoothly across borders today. With the advances in technology, it is even possible to move physical goods fairly inexpensively across the seas.
Japanese executives continue to hold on to their jobs.
Just because their companies are not performing or they may not have made the most effective decisions does not mean that they should leave or will be replaced by a new set of executives who think differently and can bring some fresh approach. Accordingly, these executives are incapable of destroying the business models that they actually built 10-20 years ago. No wonder, inefficient plans are not being shut, unnecessary workers still have jobs twiddling their thumbs all day, and banks continue to lend money merely on the basis of relationships. To expect anything to change including the GDP growth would be hard in such an environment. American economy is currently experiencing same challenges as the Japanese economy did when the bubble burst.