Organizational capability for quality management focusing on Japanese automobile industry: An empirical study on quality accident

In recent years, the product recall cases of Japanese companies which had organizational quality accidents have been seen frequently and these cases have made significant impact on corporate management. The study focuses on the Japanese automobile industry and aims to analyze relations between quality management and organizational capability by focusing on product defects and recalls data. First, the comparative analysis of a trend of automakers, regarding especially four major companies in Japan, is conducted by using the recall data reported to the Ministry of Land, Infrastructure and Transport Japan (MLIT). Based on this analysis, the business strengths and weaknesses of these companies are clarified. In addition, the representative two companies among four sample companies are selected and analyzed the relation between the product defect problems and the trends in organizational structure and capability according to literatures and interview research. The Company A´s product defects and recalls problems led to social problems in 2004. On the other hand, same problems by the Company B were not limited in Japanese society but spread to the United States from 2009 through 2010. Based on these analyses, an appropriate organizational management is proposed for quality accidents in automobile industry.