The paper “ A View on Toyota Motors Corporation from an Eclectic Paradigm” is a convincing case study on management. The Dunning Paradigm has been used by various international business scholars to asses the strategy used by various multinationals in running operations. The Dunning Paradigm seeks to assess how MNEs utilize aspects of ownership, location, and internalization to their benefit. In other words, it assesses how firms manage to gain competitive advantages out of their ownership (firm-specific), geographic location (country-specific) and international presence. The Japanese based Toyota Motors Corporation is a global brand in motor vehicles employing about 320,808 people employed worldwide with 52 production facilities in 26 countries, 12 product design and research and development centers in 7 countries (Toyota 2010).
The Toyota brand is well known globally and the firm has been on a consistent upward growth path for a long time. This paper will use the Eclectic paradigm to demonstrate how Toyota as used the various aspects of the paradigm for its own benefits. DiscussionThe ownership aspect in the eclectic paradigm is largely derived from the resource-based view of the firm (Dunning & Lundan 2008).
From the resource-based view, an MNE emerges as a result of a growth process that goes beyond national and geographic boundaries. However, the new approach focuses on the mechanism that firms employ to differentiate their resources, capabilities, and access to markets from competitors (Huang 2006). Resources are recognized both as tangible and intangible. It is only recently that intangible resources have taken center stage in this approach. In particular, knowledge is regarded as firm-specific capability and international knowledge experience as a priceless and distinctive asset that cannot be easily imitated.
Tacit knowledge or personal knowledge takes center stage in discussing knowledge as a resource while organizational knowledge plays a secondary role. Hagharian (2009) advises that tacit knowledge is hard to transfer through organizational hierarchies unless it happens on a personal level. This has been practiced by Toyota Motors on so many levels. For instance, when the company is planning to open a new factory in a new market, the firm typically selects a sizeable number of new employees and sends for several months' training and work in some of the existing Toyota factories.
When these workers return home, they do not return alone but are also accompanied by about two hundred highly experienced expatriates to work alongside them in the long term. The expatriates and the trained employees work alongside all new employees to ensure that knowledge of how the Toyota production process works is transferred to all employees in the new factory. Quality management at Toyota Motors has attained undisputed success in all its factories globally. As pioneers of the Total Quality Management tool, Toyota has excelled in ensuring high quality in all stages of production and business processes.
This has been achieved b utilizing teamwork optimally. Employees from various departments are grouped into teams with a team leader. At the end of every week, production teams from various stages met to discuss the performance of their stage and high potential problems and make suggestions on potential solutions (Alina 2009). These quality meetings are called quality circles at Toyota. As for the members of these teams, each one of them is empowered and encouraged to ‘ own’ quality control and strive for ‘ kaizen’ -continuos improvement.
The management acknowledges supplements these efforts by adopting employee suggestions. According to Toyota Georgetown, over 90,000 employee suggestions are adopted annually with individual team member suggestions being over 1000 (Toyota 2010).