| The Japanese construction industry has become a huge market with 600,000 licensed contractors and 6.5 million workers who are engaged in £400 billion annual construction input, accounting for nearly 14% of GDP. Large-sized general contractors, referred to as gene-cons in Japanese (Zene-con), which have also become huge against the background of Japan's post-war economic growth are major players in the industry. As the nation now faces zero economic growth, the distinctive system of the Japanese construction industry has started to show cracks and some players in the industry, although not necessarily gene-cons, have started seeking ways in which they can solve its problems. Despite the scale and the scope of operations, the business systems of gene-cons, and the environment where they operate appear to be completely closed to most people's eyes outside the industry. The aim of this research is to explore the distinctive business system of gene-cons in the context of institutional factors that have developed historically in Japan. As the environment that influences the business systems of gene-cons results in interactions not only among the gene-cons but also at the national, sector, firms and project levels, the research is carried out at these four levels where appropriate. The empirical analysis is based on a combination of interviews and questionnaire survey covering major players in the construction business, and case studies covering construction projects that illustrate the current status and new developments in the Japanese construction sector. In conclusion, the implications of the institutional factors that determine the characteristics of the Japanese gene-cons and the construction business system are explained. The Japanese construction industry has had little success in the international market for the same reasons that have now put their domestic operations into a state of flux; i.e., heavy dependence on endogenous factors throughout their development. The prospects for reforming their business system are also discussed with a view to paving the way for further research in the future. |
