A Study of the Sogo Shosha, Japanese foreign trade companies as a model for Turkey

Abstract

ABSTRACT This study hypothesizes that the sogo shosha, Japanese foreign trade companies, are not an appropriate model for Turkey. First, the Infrastructure of the sogo shosha are analyzed. It Is discovered that the domestic environment of the sogo shosha, which Is characterized by stable and close relationships between these companies and a few select government agencies, and by the unique role of the government In Japan, do not exist In Turkey. Also, the International trading environment of Japan Is very different from Turkey's: Japan is a physically and psychologically isolated resource-poor nation that is dependent on Imports from distant sources for most of Its essential needs. Turkey is nearly self-sufficient In most critical categories, and has low Import dependency rates for most products. It Is historically and physically Integrated Into the trading pattern or system of the Mediterranean basin where trade flows from Europe, Africa, and Asia Intersect. The distances Involved are much less than the distances between Japan and its trading partnes. Such significant differences In the Infrastructure would normally mean that the sogo shosha superstructure built above It could have no relevence for Turkey. However, It may have been still possible that essential elements of the sogo shosha superstructure that give It Its competitive edge, could still have relevance for the Turkish Foreign Trade Companies. -vi-We have also looked Into this possibility, and found out that the most important superstructural element of the sogo shosha is their very strong strategic orientation which is singlemindedly market-driven. The FTCs we have looked into do not display a strong strategic orientation. In many cases, their approach to strategy appears confused and incongruous. Consequently, their marketing and customer focus is weak. Also, all the structures and systems that follow strategy, and are often determined or influenced by cultural factors, are very different in the FTC than the sogo shosha. A combination of such differences in both the superstructure and the infrastructure of the sogo shosha construct make it an inappropriate model for Turkey.