Johnson 2 : Knowledge goes to Hollywood

This paper evaluates Tom Johnson's analysis of the causes of American uncompetitiveness which leads him now to recommend TOM where previously he endorsed the reform of management accounting. It argues that, although the prescriptions change, Johnson's early and late work is unified by a set of assumptions and assertions which identify management calculation as the major cause of US uncompetitiveness. The article then challenges this identification by presenting case study evidence on the US and Japanese car industries which establishes the importance of structural variables, especially differences in wage costs.