Thriving in the shadow of giants: The success of the Japanese surgical needle producer MANI, 1956–2016

Abstract

Large companies have a clear presence in the medical instruments industry, but in their shadow, many small and medium-sized enterprises (SMEs) have successfully carved out and defended niches. This article examines one of these enterprises in detail: MANI, a Japanese company that manufactured the world’s first stainless steel surgical needles and remains among the top three producers of these needles today. This article explains the company’s success using the ‘dynamic imbalance’ framework; this framework helps map MANI’s development of a sustainable competitive advantage as the result of internally driven and repeated processes rather than externally driven and specific technological inventions.

Keywords:

• Medical instruments industry
• small and medium-sized enterprise (SME)
• dynamic imbalance
• technological capability
• Japan

Acknowledgements

I would like to thank the editor Pierre-Yves Donzé and two anonymous reviewers for their valuable comments and suggestions. I am also grateful to Matthias Kipping for his constructive feedback on earlier versions of this article.

Notes

1. ‘Tsuisoroku: Matsutani Masao’ [Reminiscences of Masao Matsutani].

2. ‘Matsutani Seisakujo Intanetto’ [Promotion by the Internet].

3. Matsutani, K., Personal Communication via E-mail (May 8, 2017).

4. Noguchi, ‘Seicho e no Sekkeizu’ [Blueprint for Growth]; The Stock Research Center, ‘Horisutikku Kigyo Repoto’ [Holistic Corporate Report].

5. MANI, Homepage of MANI. Accessed May 8, 2017. http://www.mani.co.jp/

6. Cunningham et al., ‘Medical Device Sectoral Overview’.

7. Ibid.

8. Pullen, et al., ‘Open Innovation in Practice’.

9. Ibid.

10. Zemtsov, et al., ‘Uncovering Regional Clustering’.

11. Donzé, ‘Japanese Medical Instruments Industry’.

12. Takeuchi, ‘Tokyo ni Okeru Iryo’ [Regional Structure of Medical].

13. Hall, et al., ‘Innovation and productivity’.

14. Sass, ‘Internationalisation of innovative SMEs’.

15. Ibid.

16. Yanagawa, ‘MANI Kabushikigaisha’ [Mani Inc].

17. Matsutani and Yanagawa, ‘MANI Matsutani Kanji’ [Interview to Kanji Matsutani].

18. Japan Finance Corporation for Small and Medium Enterprises, Hasso to Gijutsu [Innovative Companies].

19. Nikkei Top Leader, Kiseki no Seizogyo [Miracle Manufacturing Companies].

20. Kipping et al., ‘Analyzing and Interpreting Historical’.

21. Matsutani, K., Brief Explanation of MANI (February 22, 2016).

22. Hirschman, The Strategy of Economic Growth; Itami and Roehl, Mobilizing Invisible Assets; Rosenberg, ‘The Direction of Technological Change’.

23. Hirschman, The Strategy of Economic Growth.

24. Japan Finance Corporation for Small and Medium Enterprises, Hasso to Gijutsu [Innovative Companies]; Nikkei Top Leader, Kiseki no Seizogyo [Miracle Manufacturing Companies].

25. Kipping et al., ‘Analyzing and Interpreting Historical’.

26. MANI, Homepage of MANI. Accessed on May 8, 2017. http://www.mani.co.jp/

27. MANI. ‘Yukashoken Hokokusho 2016 [Securities Report 2016]’.

28. The Stock Research Center, ‘Horisutikku Kigyo Repoto’ [Holistic Corporate Report].

29. Matsuzaki, ‘Eigyo Riekiritsu 34%’ [Operating Profit Rate is 34%].

30. ‘Tsuisoroku: Matsutani Masao’ [Reminiscences of Masao Matsutani].

31. ‘Kenkyu Kyoten o Miru’ [Observation for Research]; ‘Shikayo Daiya Bar’ [MANI Entered the Dental].

32. Matsutani, K., Brief Explanation of MANI (February 22, 2016).

33. Freidin and Marshall, Illustrated Guide.

34. ‘Fukyo ni Makenai’ [Against the Recession].

35. Furuhashi and Sasamoto, Zusetsu Shujutsu Kikai [Everything about Surgical Instruments].

36. Nikkei Top Leader, Kiseki no Seizogyo [Miracle Manufacturing Companies]; Oguchi, ‘Ningen Hakken 1’ [The President of MANI Vol. 1].

37. Freidin and Marshall, Illustrated Guide; Furuhashi and Sasamoto, Zusetsu Shujutsu Kikai [Everything about Surgical Instruments].

38. Matsutani, K., Brief Explanation of MANI (February 22, 2016).

39. Freidin and Marshall, Illustrated Guide; Furuhashi and Sasamoto, Zusetsu Shujutsu Kikai [Everything about Surgical Instruments].

40. MANI. ‘Yukashoken Hokokusho 2014’ [Securities Report 2014]; ‘Yukashoken Hokokusho 2015’ [Securities Report 2015]; ‘Yukashoken Hokokusho 2016’ [Securities Report 2016].

41. MANI. ‘Yukashoken Hokokusho 2016’ [Securities Report 2016].

42. The Stock Research Center, ‘Horisutikku Kigyo Repoto’ [Holistic Corporate Report].

43. MANI. ‘Yukashoken Hokokusho 2014’ [Securities Report 2014].

44. Matsutani, K., Personal Communication via E-mail (May 8, 2017).

45. Ibid.

46. ‘Habataku Bencha’ [Successful Venture]; Japan Finance Corporation for Small and Medium Enterprises, Hasso to Gijutsu [Innovative Companies]; Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016); Matsutani, M., Personal Interview (March 22, 2016); Oguchi, ‘Ningen Hakken 2’ [The President of MANI Vol. 2].

47. Miyamoto et al., Nihon Keieishi [Japanese Business History].

48. Fukunaga, Nihon Byoinshi [The History of Japanese Hospitals].

49. Saiseikai Utsunomiya Hospital, Soritsu 15 Shunen Kinen [The Memorial 15th Anniversary].

50. Fukunaga, Nihon Byoinshi [The History of Japanese Hospitals].

51. Ibid.

52. Saiseikai Utsunomiya Hospital, Soritsu 15 Shunen Kinen [The Memorial 15th Anniversary].

53. Sakakibara, Tabu ni Mesu [Surgeon Broke the Taboo].

54. Shimazaki, Nihon no Iryo [Japanese Medical Care].

55. Tochigi Prefecture, Tochigi Prefecture.

56. Tochigi Shimbunsha, Tochigi Nenkan 1957 [Yearbook of Tochigi Prefecture 1957].

57. Tochigi Shimbunsha, Tochigiken Shoko Yoran [Commerce and Industry Handbook].

58. ‘Tsuisoroku: Matsutani Masao’ [Reminiscences of Masao Matsutani].

59. Sakai, Personal Interview (February 17, 2016).

60. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016); Matsutani, M., Personal Interview (March 22, 2016).

61. Fujikeizai, Ryutsu Mappu [Overview of Distribution in 1977]; Matsutani, M., Personal Interview (March 22, 2016); Sakai, Personal Interview (February 17, 2016).

62. Fujikeizai, Ryutsu Mappu [Overview of Distribution in 1977].

63. Sakai, Personal Interview (February 17, 2016).

64. Fujikeizai, Ryutsu Mappu [Overview of Distribution in 1977].

65. Fujikeizai, Ryutsu Mappu [Overview of Distribution in 1977]; Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016); Matsutani, M., Personal Interview (March 22, 2016); Sakai, Personal Interview (February 17, 2016).

66. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016); Matsutani, M., Personal Interview (March 22, 2016); Sakai, Personal Interview (February 17, 2016).

67. Freidin and Marshall, Illustrated Guide; Furuhashi and Sasamoto, Zusetsu Shujutsu Kikai [Everything about Surgical Instruments]; Nomoto, Personal Interview (March 18, 2016); Sakai, Personal Interview (February 17, 2016).

68. Furuhashi and Sasamoto, Zusetsu Shujutsu Kikai [Everything about Surgical Instruments]; Morino, ‘Shugyoku no Chusho Kigyo’ [Excellent Small].

69. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016); Sakai, Personal Interview (February 17, 2016).

70. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016).

71. Hagane, Personal Interview (March 18, 2016); Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016); Matsutani, M., Personal Interview (March 22, 2016); Nomoto, Personal Interview (March 18, 2016).

72. Furuhashi and Sasamoto, Zusetsu Shujutsu Kikai [Everything about Surgical Instruments].

73. ‘Tsuisoroku: Matsutani Masao’ [Reminiscences of Masao Matsutani].

74. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016); Matsutani, M., Personal Interview (March 22, 2016).

75. ‘Habataku Bencha’ [Successful Venture]; ‘Tsuisoroku: Matsutani Masao’ [Reminiscences of Masao Matsutani].

76. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016); Morino, ‘Shugyoku no Chusho Kigyo’ [Excellent Small].

77. Morino, ‘Shugyoku no Chusho Kigyo’ [Excellent Small]; ‘Tsuisoroku: Matsutani Masao’ [Reminiscences of Masao Matsutani].

78. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016); Oguchi, ‘Ningen Hakken 2’ [The President of MANI Vol. 2].

79. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016).

80. Ibid.

81. ‘Kitakanto no Seichokigyo’ [A Growing Company].

82. ‘Tochigiken Kigyo’ [A Company in Tochigi].

83. ‘Habataku Bencha’ [Successful Venture]; ‘Kenkyu Kyoten o Miru’ [Observation for Research]; Noda, ‘Keieisha Intabyu’ [CEO Interview].

84. ‘Habataku Bencha’ [Successful Venture].

85. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016).

86. ‘Habataku Bencha’ [Successful Venture]; ‘Kenkyu Kyoten o Miru’ [Observation for Research]; Morino, ‘Shugyoku no Chusho Kigyo’ [Excellent Small].

87. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016); Noda, ‘Keieisha Intabyu’ [CEO Interview].

88. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016).

89. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016); Morino, ‘Shugyoku no Chusho Kigyo’ [Excellent Small].

90. ‘Habataku Bencha’ [Successful Venture].

91. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016).

92. Ibid.

93. Furuhashi and Sasamoto, Zusetsu Shujutsu Kikai [Everything about Surgical Instruments].

94. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016).

95. ‘Kenkyu Kyoten o Miru’ [Observation for Research]; ‘Habataku Bencha’ [Successful Venture].

96. Matsutani, K., Personal Interview (January 15, 2016).

97. Morino, ‘Shugyoku no Chusho Kigyo’ [Excellent Small]; ‘Tsuisoroku: Matsutani Masao’ [Reminiscences of Masao Matsutani].

98. Hagane, Personal Interview (March 18, 2016); Nomoto, Personal Interview (March 18, 2016); Sakai, Personal Interview (February 17, 2016).

99. Ibid.

100. Hagane, Personal Interview (March 18, 2016); Nomoto, Personal Interview (March 18, 2016).

101. Ishihara, Kango 20 Nenshi [Twenty Years of Nursing History]; Nomoto, Personal Interview (March 18, 2016).

102. Hashioka, ‘Sengo no Kango Rodo’ [What Labor Movements]; Ishihara, Kango 20 Nenshi [Twenty Years of Nursing History].

103. Hashioka, ‘Sengo no Kango Rodo’ [What Labor Movements].

104. Kameyama, Kangofu to Ishi [Nurses and Doctors].

105. Hagane, Personal Interview (March 18, 2016); Nomoto, Personal Interview (March 18, 2016).

106. Furuhashi and Sasamoto, Zusetsu Shujutsu Kikai [Everything about Surgical Instruments].

107. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016); Sakai, Personal Interview (February 17, 2016).

108. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016).

109. Noda, ‘Keieisha Intabyu’ [CEO Interview]; Oguchi, ‘Ningen Hakken 3’ [The President of MANI Vol. 3].

110. Porter, Competitive Strategy.

111. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016); Sakai, Personal Interview (February 17, 2016).

112. Furuhashi and Sasamoto, Zusetsu Shujutsu Kikai [Everything about Surgical Instruments]; Hagane, Personal Interview (March 18, 2016); Nomoto, Personal Interview (March 18, 2016); Sakai, Personal Interview (February 17, 2016).

113. Matsutani, K., Personal Communication via E-mail (May 8, 2017).

114. Matsutani, K., Brief Explanation of MANI (February 22, 2016); Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016).

115. Ibid.

116. Hagane, Personal Interview (March 18, 2016); Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016); Nomoto, Personal Interview (March 18, 2016).

117. Freidin and Marshall, Illustrated Guide.

118. Hagane, Personal Interview (March 18, 2016); Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016); Nomoto, Personal Interview (March 18, 2016).

119. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016).

120. Ibid.

121. MANI, Homepage of MANI. Accessed May 8, 2017. http://www.mani.co.jp/

122. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016); Sakai, Personal Interview (2016, February 17).

123. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016).

124. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016); Sakai, Personal Interview (February 17, 2016).

125. Freidin and Marshall, Illustrated Guide; Furuhashi and Sasamoto, Zusetsu Shujutsu Kikai [Everything about Surgical Instruments].

126. Matsutani, K., Brief Explanation of MANI (February 22, 2016).

127. Matsutani, K., Brief Explanation of MANI (February 22, 2016); Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016).

128. Ibid.

129. Ibid.

130. Freidin and Marshall, Illustrated Guide.

131. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016).

132. ‘Habataku Bencha’ [Successful Venture].

133. Ibid.

134. ‘Matsutani Seisakujo Intanetto’ [Promotion by the Internet].

135. Porter prize, ‘MANI Kabushikigaisha’ [MANI Inc.].

136. Matsutani, K., Brief Explanation of MANI (February 22, 2016); Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016).

137. Matsutani, K., Personal Interview (February 22, 2016).

138. ‘Habataku Bencha’ [Successful Venture]; Japan Finance Corporation for Small and Medium Enterprises, Hasso to Gijutsu [Innovative Companies]; ‘Kenkyu Kyoten o Miru’ [Observation for Research].

139. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016).

140. Oguchi, ‘Ningen Hakken 3’ [The President of MANI Vol. 3].

141. Ibid.

142. Shimoda, Reiza to Butsuri [Razer and Physics].

143. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016); Oguchi, ‘Ningen Hakken 3’ [The President of MANI Vol. 3].

144. Matsutani, K., Brief Explanation of MANI (February 22, 2016); Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016).

145. Ibid.

146. Oguchi, ‘Ningen Hakken 4’ [The President of MANI Vol. 4].

147. ‘Shinkojo o Kansei Sogyo’ [MANI Has Completed a New Factory].

148. ‘Shikayo Daiya Bar’ [MANI Entered the Dental].

149. ‘Mushiba o Daiya’ [Coating Technology].

150. ‘Shikayo Daiya Bar’ [MANI Entered the Dental].

151. Oguchi, ‘Ningen Hakken 4’ [The President of MANI Vol. 4].

152. Kameyama, Kangofu to Ishi [Nurses and Doctors]; Nomoto, Personal Interview (March 18, 2016).

153. Tanaka, ‘Kangoshi no Seikatsu’ [Life and Labor of Nurses].

154. Ibid.

155. Statistics and Information Department, Minister's Secretariat, Ministry of Health, Labour and Welfare. ‘Byosho no Shuruibetsu Byoinbyoshosu’ [Hospital Beds by Kind 1910–2004].

156. Statistics and Information Department, Minister's Secretariat, Ministry of Health, Labour and Welfare. ‘Iryo Kankeisyasu’ [Medical Care Personnel 1874–2004].

157. Ibid.

158. Statistics and Information Department, Minister's Secretariat, Ministry of Health, Labour and Welfare. ‘Byosho no Shuruibetsu Byoinbyoshosu’ [Hospital Beds by Kind 1910–2004].

159. Tanaka, ‘Kangoshi no Seikatsu’ [Life and Labor of Nurses].

160. Ibid.

161. Nomoto, Personal Interview (March 18, 2016).

162. Matsutani, K., Personal Interview (January 15, 2016; February 22, 2016); Sakai, Personal Interview (February 17, 2016).

163. ‘Habataku Bencha’ [Successful Venture].

164. ‘Kagicho no Chumoku Hatsumei’ [Science and Technology Agency].

165. ‘Shika Chiryoki Innai Kansen’ [Preventing Hospital Infections].

166. Noda, ‘Keieisha Intabyu’ [CEO Interview].

167. ‘Kitakanto no Seichokigyo’ [A Growing Company].

168. Noda, ‘Keieisha Intabyu’ [CEO Interview].

169. Ibid.

170. ‘Kenkyu Kyoten o Miru’ [Observation for Research].

171. Noda, ‘Keieisha Intabyu’ [CEO Interview].

172. ‘Shinsozai Tsukai Hogoshin’ [New Material Surgical Needles].

173. ‘Hochikisu’ [Suture Stapler].

174. ‘Sekai Saisho no Hogoshin’ [The Smallest Surgical Needle].

175. ‘Iryokiki no Matsutani Seisakujo’ [MANI Will Reduce Manufacturing Costs].

176. ‘Shin Kiyohara Kojo’ [The Construction of the New Kiyohara Factory].

177. ‘Tochigiken Kigyo’ [A Company in Tochigi].

178. Nikkei Top Leader, Kiseki no Seizogyo [Miracle Manufacturing Companies].

179. ‘Tobidasu Chiho Kigyo’ [Progressive Local Company].

180. ‘Fukyo ni Makenai’ [Against the Recession].

181. ‘Habataku Bencha’ [Successful Venture].

182. ‘Iryokiki no Matsutani Seisakujo’ [MANI Will Reduce Manufacturing Costs].

183. ‘Tobidasu Chiho Kigyo’ [Progressive Local Company].

184. ‘Shin Wagasha no Senryaku’ [Our New Corporate Strategy].

185. ‘Fukyo ni Makenai’ [Against the Recession].

186. Noguchi, ‘Seicho e no Sekkeizu’ [Blueprint for Growth].

187. Takeda, ‘MANI Tsugi no Suteji’ [MANI toward the Next Stage].

188. ‘Doku Shika Chiryo’ [MANI Acquired All Shares]; MANI, ‘Yukashoken Hokokusho 2015’ [Securities Report 2015].

189. Itami and Roehl, Mobilizing Invisible Assets.

190. Rosenberg, ‘The Direction of Technological Change’.

191. Barney, ‘Firm Resources’; Barney, Gaining and Sustaining.

192. Leonard-Barton, ‘Core Capabilities and Core Rigidities’.