Annavajhula JCB Industrial subcontracting of parts and components, commercial subcontracting of whole products and labour- only subcontracting go a long way to account for the rapid growth, domestic and international competitive strength and resilience against crisis of the Japanese industrial system. The nature and effects of unequal inter-firm relations and labour rationalisation schemes that are subsumed under these subcontracting systems, unscramble to some extent the mystique of the Japanese miracle.