Monozukuri capability to address product variety: A comparison between Japanese and German automotive makers

The aim of this paper is to provide a better understanding of monozukuri capability as a way to address the increasing product variety in industrial firms. To this effect, we conducted a comparative case study at Japanese and German automakers with more than 40 interviews and 30 factory visits from 2007 to 2012. The results were analyzed using a framework incorporating insights from both open system and configurational approaches to organizational analysis. Based on the analysis, this paper examines the characteristics of monozukuri capabilities of Japanese and German makers, and argues for the context-sensitive nature of monozukuri capability, as well as its potential trade-off and link to power balance among different organizational functions. Finally, we highlight a new understanding about the “Japanese model” based on an integrative perspective between production, sales and purchasing activities.