Sustaining growth in electronic manufacturing sector: lessons from Japanese mid-size EMS providers

Many small and medium enterprises (SMEs) suffered badly from the recent economic crisis. However, a range of overseas Japanese SMEs in the electronic manufacturing sector seemed to do well, even achieving significant growth. Despite that, the electronic sector is in deep recession. Using three in-depth cases in the electronic manufacturing sector, this article discusses how successful overseas Japanese SMEs could achieve further growth and resilience to marketplace uncertainties. The findings suggest that firm growth could be achieved through (1) re-organising of manufacturing supply chain by reducing overseas Keiretsu obligations; (2) gaining negotiation powers to achieve economies of scale through acquisitions; and (3) adopting IT technology to achieve Lean and increase responsiveness to market changes. The implications of these findings for SMEs in other sectors are additionally explored.