Japan, as a defeated nation in World War II, was devastated, so the first priority of the Japanese government was reconstructing the nation. With scarce resources and capabilities, the Japanese government was heavily involved in developing certain industries such as motorcycles, sewing machine, steel, and shipbuilding through directing necessary resources (Porter, 1990). Companies in these industries were able to gain competitive advantages under the government’s support, protection from foreign competitors, and policies like market liberation in a timely manner. Although there were other factors such as demand conditions and disciplined workers, the role of Japanese government was significant in reviving its industries.