A systematic literature review of Japanese SMEs: trends, challenges and insights for future research and practice

Purpose The distinctiveness of Japanese management practices offers invaluable insights for the strategic development and operational excellence of small and medium-sized enterprises (SMEs) worldwide. Recognizing this, the purpose of this study is to explore an extensive review of the literature on Japanese SMEs. The aim is to reveal previously explored research domains and to systematically categorize the unique factors contributing to the success and challenges of SMEs. This investigation not only illuminates the peculiarities of Japanese SMEs management but also sets the stage for applying these insights globally to SMEs across diverse industries. Design/methodology/approach Using a systematic review approach, 63 studies on Japanese SMEs from 1996 to 2021 were identified and analyzed. Findings This analysis identified six critical themes in Japanese SME management: nuanced firm management practices; forefront innovation and technology; internationalization; supportive government policies; commitment to corporate social responsibility and sustainable development; and vibrant entrepreneurship. The authors also spotlight challenges like navigating global competition and adapting to rapid technological changes. These insights, alongside noted methodological gaps in existing literature, suggest fertile grounds for future research and hold significant implications for SMEs globally. Originality/value The investigation of Japanese SMEs in this study highlights valuable insights for SMEs, policymakers and scholars, as it represents a rich and distinctive research phenomenon with various organizational, cultural, economic and political implications.