Japan plays an important role in the world economy, and as a major U.S. trading partner.  Yet most U.S. business schools have not adequately reflected this in their courses and faculty research activities.  So at a time when recent political shifts make it more critical than ever to understand Japanese business practices, American business school faculty and graduates remain relatively unsophisticated in their knowledge of the Asian powerhouse and how it operates.

"In U.S. education we have been tempted to discuss Asian economies as a whole, as a parallel to the European Union, and this has caused much confusion among our students," said Pat Cantrell, associate professor at the College of Business Administration, University of Central Arkansas.

"This is not a world in which we've done business.  We are all just learning," added Daniel E. Costello, dean of the College of Business at Colorado State University.

To help close this gap in understanding, AACSB has, since 1994, teamed with the Keizai Koho Center (KKC), a leading Japanese business organization, to offer an annual study tour to Japan for U.S. business school faculty and administrators.  The 12-day program is designed to stimulate curricular change at the participants' institutions and to provide opportunities for comparative research.

To learn about Japan's economy and business climate, the group visits businesses and industries where they observe the Japanese economy in action.  They also participate in discussions with top executives and attend seminars with Japanese academics.

"We firmly believe that the Japan Study Tour has helped AACSB member institutions to integrate a Japanese dimension into their teaching, curriculum development and research," said John J. Fernandes, AACSB president and chief executive officer. "A number of deans have mentioned to me personally how wonderful their experience was and how much they appreciated the KKC's contribution."

"We would like to express our appreciation to AACSB for continuously supporting the Japan Study Tour over the past years," said Masami Tashiro, KKC senior director.  "The Keizai Koho Center highly values its relationship with AACSB and welcomes the opportunity to work with such an influential organization."

Eleven people took part in last June's tour, which focused on e-commerce and Japanese and U.S. management styles.  The group visited the headquarters of organizations such as Toyota Motor Corporation, Matsushita Electric Industrial Co., Ltd. (Panasonic), Misumi Corporation, NTT DoCoMo, Inc. and the American Chamber of Commerce in Japan.  They also met with representatives of the Ministry of International Trade and Industry (MITI); Bank of Japan; Sun Microsystems; Tokyo University; Matsui Securities Co., Ltd.; NEC Corporation; Bridgestone Corporation; Ito-Yokada, Co., Ltd. and others.

"We were amazed by the technological advancements and the vitality of the businesses we visited," said Cantrell, tour participant.

Costello added that the tour "provided us with an understanding of the Japanese economy from the perspectives of the past, present and future.  The current economic challenges were seen as a result of changes in the global business infrastructure.  For Japan to stay competitive, many domestic reforms were identified."  He added that "learning to see business strategies from the Japanese perspective was extremely worthwhile."

Debra J. Cohen, associate professor, School of Business and Public Management, George Washington University, added, "The combination of speakers and company visits allowed us to gain an understanding of a multitude of Japanese business issues."

A presentation at Sun Microsystems, for example, summarized the Japanese economy over the last decade, including the effects of Japanese financial policy and corporate governance.  The AACSB/KKC group learned about the Japanese emphasis on a networked society, with management based on human rather than financial resources.  They also heard about changes in industrial structure, the financial and accounting reforms expected, and the support rationales for these reforms.

The visit to Toyota provided opportunities to observe assembly-line operations where human beings work together wit robotics and to inspect and drive futuristic prototype vehicles.

"I particularly enjoyed the tour of the Toyota facility," said Brian F. O'Neil, professor and director of graduate business programs in the School of Business at Clarkson University.  "The opportunity to see first hand the assembly operations was fantastic.  I very much look forward to using the experience in the classroom," he said.  "Also, having the chance to ride in two state-of-the-art vehicles was very much appreciated."

At Matsushita Electric, the tour included the Hall of Science and Industry, which is filled with products that have not been introduced to the market or have been introduced only in Japan.  Since the Japanese market is aging, Matsushita emphasizes design elements geared to an older population.

The government's role in supply chain management and coordination of standards was presented at MITI, where industry leaders participated in discussion.

A production facility staffed primarily by handicapped workers was what the group saw at the Omron Kyoto Sun Industries plant.  Of the 206 production workers, 149 are handicapped.  The severely handicapped live on the plant site in dormitories.

The group especially enjoyed the presentation by the Ito-Yokada, Co. Ltd., which operates Seven-Eleven Japan retail stores.  They learned about the adaptation of the superstore concept to meet the high service and quality expectations of the Japanese consumers and the strategy of using convenience stores as part of an e-commerce sales strategy.  "Gradually we recognized the usefulness of frequent trips to the convenience stores because of the lack of storage space [in homes].  The intersection of social, technological and economic trends was pronounced," reported Karen A. Froelich, assistant professor of management, College of Business Administration, North Dakota State University.

Visits to dot.com entrepreneurs were a highlight of the trip.  "These innovative global businesses and developers of the third- and fourth-generation Internet technologies spoke of a future world of international markets and unlimited applications," Cantrell said.

The group was surprised to learn that Japanese regulations prohibit many industries from creating cyber-malls.  "The law still requires hard copy paper confirmation of orders, outlines of corporate policies, etc.," said Frederick Anthony Palumbo, associate professor, Sy Syms School of Business at Yeshiva University.  "But the policy is changing, and Internet transactions will be permitted by 2003."

An inspiring session focusing on Japan's technological movement into the 21st century was held at NTT DoCoMo, Inc., where the group learned about the fusion of telecommunications and the Internet.  The company's I-mode technology is essentially an extremely small cellular phone weighing about two ounces.  From this phone a person can see the Internet and conduct banking, make travel arrangements and entertainment reservations and send and receive Email.  To date, this technology is available only in Japan, where in 16 months the number of I-mode subscribers grew from zero to 7.5 million.  "While some of the things they are doing are being done elsewhere, the diffusion of technology into the Japanese marketplace is truly amazing," said Eric James Burton, dean of the College of Business at Middle Tennessee State University.

All along the way, the tour participants made comparisons between the Japanese and U.S. economies, sometimes with surprising conclusions.  "One of the main results of the experience was the recognition of the many areas in which Japan is a more advanced economy than the U.S., and a clarification of the mutual economic interests of the two countries,: Cantrell said.  "In U.S. education, we have tended to focus on the rapid development of the 'Asian Tiger' economies rather than the absolute achievement levels of the Japanese economy.  This tour showed us that Japan is not just another Pacific Rim economy but rather a society equal to or superior to the U.S."

At the conclusion of this year's tour, participants were enthusiastic about taking what the had learned back to their institutions.

"What I had read about the Japanese management style and what I was told during this trip was the real situation will definitely affect how I discuss this topic in the classroom," said Ellen J. Frank, professor and director of the Global Center at Southern Connecticut State University's School of  Business.  "My grasp of international finance and its trends in the future has increased.  I can foresee much more interesting lectures in my International Business course."

"My dean has requested a course in the Economy of Japan and, given the abundance of materials and experiences with the Keizai Koho Center, this will be a possibility in the near future.  This experience has motivated me to increase communication with Japan experts on our campus in art, language and history," said Cantrell.

Nachum Sicherman, associate professor at Columbia University's Graduate School of Business, foresaw using Matsui Securities as an example of "how dramatic changes in barriers to entry can totally change an industry even in a conservative place like Japan."

Middle Tennessee's Burton said the tour would be most helpful as he interfaced with the Japan Program on campus and with the Japan Society of Tennessee, with which the university is affiliated.  The experience gave him "a much improved understanding of the cultural differences that influence how business is done both in Japan and the U.S."  It also provided  "a deeper appreciation of the richness of the Japanese culture," he said

Several members of the group found their curiosity aroused for future study and travel.  Debra Cohen wants to learn more about the Japanese culture and to explore Japanese human resource management issues.  "I have already begun revising some of my teaching materials and approaches in my International Human Resource Management course to incorporate what I have learned," she said.

"At CU we will sponsor initiatives that include Japan," said Donald L. Stevens, professor, assistant vice chancellor for academic affairs and director of the Institute for International Business at the University of Colorado at Denver.  "Our International Executive Roundtable will include Japan speakers; I will discuss with faculty the inclusion of Japanese topics in the Faculty Development in International Business workshops that we sponsor each June.  I will raise the possibility of a Japan study tour for our Executive MBA program and propose adding a Japan site to our undergraduate study tour program."  He added that his experience on the AACSB/KKC tour would affect the agenda he sets for the Institute for International Business.

North Dakota State's Froelich said her experience would have an immediate impact on courses in money and banking, intermediate macroeconomics, and strategic management.  She is planning to share information and materials with colleagues on her own campus and, more broadly, in a consortium of local universities.  "Longer-term impacts include continuation of a research project examining the coverage of the Japanese economy in business school curriculums in the U.S.," said Froelich.  "Further, I will work through the curriculum committee to achieve greater coordination of content between the existing international business electives and required courses in order to improve coverage of Japan."

Michael G. Tearney, associate dean of academic affairs and director of international programs at the Gatton College of Business and Economics at the University of Kentucky, said he would integrate much of what he learned and saw into his accounting lectures.  "Of particular importance is the information on corporate governance and disclosure," he said.  Tearney also plans to develop an international accounting course, in which much of what he learned on the tour would be "invaluable."

Upon his return, Colorado State's Costello shared the information he gained on Japan's e-business with colleagues who teach international business.  He also taught a distance-learning session on the Japanese economy to 450 MBA students in 50 states and 11 countries.  He was asked to provide assistance in the planning of Denver Mayor Willington Webb's fall economic development trip to Japan and to talk about the Japanese economy at a university-wide fall forum.  In addition, Costello is exploring opportunities for a CSU Denver Executive MBA trip to Japan and plans to encourage students to take study-abroad programs there.

Cantrell was confident that the trip met its objectives: "The program is extraordinary.  I believe it will prove very successful in convincing the business educator, and in turn the business student in the U.S., of the unique importance of Japan in the global economy and of accurately informing them about the social and economic goals of the Japanese people."

Kentucky's Tearney added, "The AACSB/KKC 2000 Japan Study Tour was the singularly most outstanding faculty development activity I have ever been fortunate enough to attend.  I learned more in a shorter period of time about the Japanese approach to capitalism, the severity of the 1990s recession in Japan, cultural differences between Japanese and Americans, and the general beauty of the Japanese countryside and people than I ever thought imaginable."