James R. Lincoln
- Published in print:
- 2006
- Published Online:
- September 2007
- ISBN:
- 9780199297320
- eISBN:
- 9780191711237
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199297320.003.0012
- Subject:
- Business and Management, Innovation
Keiretsu are important for understanding the openness, or otherwise, of Japan's innovation system and MOT, corporate specialization, and boundary management. This chapter draws ...
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Keiretsu are important for understanding the openness, or otherwise, of Japan's innovation system and MOT, corporate specialization, and boundary management. This chapter draws on a series of studies which portray keiretsu ties as both a cause and a consequence of innovation. They foster organizational learning and innovation, and they grow through strategies which allow spin-offs to commercialize core-company R&D. Innovation strategies can cause the ties to strengthen (as in the case of Matsushita), or weaken or become strained (Toyota-Denso). A quantitative study finds that keiretsu ties remained influential for non-R&D activities in the 1990s, while R&D relations became more strategic and less influenced by ‘legacy relations’.Less
Keiretsu are important for understanding the openness, or otherwise, of Japan's innovation system and MOT, corporate specialization, and boundary management. This chapter draws on a series of studies which portray keiretsu ties as both a cause and a consequence of innovation. They foster organizational learning and innovation, and they grow through strategies which allow spin-offs to commercialize core-company R&D. Innovation strategies can cause the ties to strengthen (as in the case of Matsushita), or weaken or become strained (Toyota-Denso). A quantitative study finds that keiretsu ties remained influential for non-R&D activities in the 1990s, while R&D relations became more strategic and less influenced by ‘legacy relations’.
Christina L. Ahmadjian
- Published in print:
- 2006
- Published Online:
- September 2007
- ISBN:
- 9780199287345
- eISBN:
- 9780191713514
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199287345.003.0002
- Subject:
- Business and Management, International Business
This chapter describes the recent changes in Japanese keiretsu. Japan’s home-grown banking crisis began in the early 1990s, even before the Asian Crisis, when the stock market and real estate markets ...
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This chapter describes the recent changes in Japanese keiretsu. Japan’s home-grown banking crisis began in the early 1990s, even before the Asian Crisis, when the stock market and real estate markets declined dramatically after the burst of the asset bubble in the late 1980s. Several banks went bankrupt and some high-profile inter-group bank mergers occurred. The tightening of requirements for consolidated accounting also made it harder for firms to manage their earnings by allocating gains and losses among group firms. Moreover, increased foreign ownership helped loosen inter-firm ties between keiretsu firms. This chapter examines the ownership and director ties of keiretsu firms to find out whether the keiretsu form was disrupted due to this series of events. The conclusion is that, although some peripheral relationships have been disrupted, the relationships among core firms have remained robust despite these changes.Less
This chapter describes the recent changes in Japanese keiretsu. Japan’s home-grown banking crisis began in the early 1990s, even before the Asian Crisis, when the stock market and real estate markets declined dramatically after the burst of the asset bubble in the late 1980s. Several banks went bankrupt and some high-profile inter-group bank mergers occurred. The tightening of requirements for consolidated accounting also made it harder for firms to manage their earnings by allocating gains and losses among group firms. Moreover, increased foreign ownership helped loosen inter-firm ties between keiretsu firms. This chapter examines the ownership and director ties of keiretsu firms to find out whether the keiretsu form was disrupted due to this series of events. The conclusion is that, although some peripheral relationships have been disrupted, the relationships among core firms have remained robust despite these changes.
Hideaki Miyajima and Fumiaki Kuroki
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780199284511
- eISBN:
- 9780191713705
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199284511.003.0003
- Subject:
- Economics and Finance, South and East Asia
As the ownership structure of Japanese corporations has changed dramatically during the 1990s, this chapter examines the causes and consequences of the decline in cross-shareholding. Using detailed ...
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As the ownership structure of Japanese corporations has changed dramatically during the 1990s, this chapter examines the causes and consequences of the decline in cross-shareholding. Using detailed and comprehensive data on ownership structure, including data on individual cross-shareholding relationships and other variables (Tobin's q) developed by the Nissai Life Insurance Research Institute and Waseda University, the chapter highlights the determinants of the choice between holding or selling shares for both banks and firms. Profitable firms with easy access to capital markets and a high level of foreign ownership prior to the banking crisis tended to unwind cross-shareholdings, while low-profit firms which had difficulty accessing capital markets and low foreign ownership tended to keep cross-shareholding with banks. High institutional shareholding and, surprisingly, block shareholding have had positive effects on firms' performance, while bank ownership has had consistently negative effects on firm performance. The result has been a growing diversity of ownership patterns among Japanese firms.Less
As the ownership structure of Japanese corporations has changed dramatically during the 1990s, this chapter examines the causes and consequences of the decline in cross-shareholding. Using detailed and comprehensive data on ownership structure, including data on individual cross-shareholding relationships and other variables (Tobin's q) developed by the Nissai Life Insurance Research Institute and Waseda University, the chapter highlights the determinants of the choice between holding or selling shares for both banks and firms. Profitable firms with easy access to capital markets and a high level of foreign ownership prior to the banking crisis tended to unwind cross-shareholdings, while low-profit firms which had difficulty accessing capital markets and low foreign ownership tended to keep cross-shareholding with banks. High institutional shareholding and, surprisingly, block shareholding have had positive effects on firms' performance, while bank ownership has had consistently negative effects on firm performance. The result has been a growing diversity of ownership patterns among Japanese firms.
Tatsuya Kikutani, Hideshi Itoh, and Osamu Hayashida
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780199284511
- eISBN:
- 9780191713705
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199284511.003.0008
- Subject:
- Economics and Finance, South and East Asia
This chapter examines the restructuring of Japanese business groups during the 1990s. Using the Basic Survey of Business Structure and Activity, the chapter analyses the business portfolio of ...
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This chapter examines the restructuring of Japanese business groups during the 1990s. Using the Basic Survey of Business Structure and Activity, the chapter analyses the business portfolio of Japanese firms from the perspective of the group structure of parent and affiliate. While previous studies have examined the net shift in diversification or specialization of business, the chapter also adopts an original approach by looking at the actual flow of entry and exit from business segments. The analysis demonstrates that Japanese business groups engaged in a high level of restructuring during the 1990s, and a growing preference to separate businesses into subsidiaries and affiliated firms rather than managing them in house. Although Japanese firms have no trend toward greater diversification or greater focus on aggregate, entry and exit are important complementary strategies that improve firms.Less
This chapter examines the restructuring of Japanese business groups during the 1990s. Using the Basic Survey of Business Structure and Activity, the chapter analyses the business portfolio of Japanese firms from the perspective of the group structure of parent and affiliate. While previous studies have examined the net shift in diversification or specialization of business, the chapter also adopts an original approach by looking at the actual flow of entry and exit from business segments. The analysis demonstrates that Japanese business groups engaged in a high level of restructuring during the 1990s, and a growing preference to separate businesses into subsidiaries and affiliated firms rather than managing them in house. Although Japanese firms have no trend toward greater diversification or greater focus on aggregate, entry and exit are important complementary strategies that improve firms.
Hiroyuki Odagiri
- Published in print:
- 1994
- Published Online:
- November 2003
- ISBN:
- 9780198288732
- eISBN:
- 9780191596711
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198288735.003.0006
- Subject:
- Economics and Finance, South and East Asia
This chapter discusses several aspects of intra‐ and inter‐company organization in Japan. The divisional form (or M‐form) is less prevalent and less complete in Japan than in the USA and the UK, but ...
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This chapter discusses several aspects of intra‐ and inter‐company organization in Japan. The divisional form (or M‐form) is less prevalent and less complete in Japan than in the USA and the UK, but hive‐off of some activities is common and increasing. This tendency, we argue, is consistent with the human management system of Japanese firms that aims at company‐wide interaction and utilization of human resources, and the acquisition of broad as well as deep skills. As regards the supplier‐assembler relationship (the so‐called vertical keiretsu relationship), we emphasize that the practice of continuous trading by no means implies lack of competition. In this long‐term relationship, which has been indispensable to Japanese production systems, such as the just‐in‐time and kanban methods, a price adjustment scheme has been in effect in order to share risks, to guarantee returns on innovation, and to maintain the competitiveness of the final product.Less
This chapter discusses several aspects of intra‐ and inter‐company organization in Japan. The divisional form (or M‐form) is less prevalent and less complete in Japan than in the USA and the UK, but hive‐off of some activities is common and increasing. This tendency, we argue, is consistent with the human management system of Japanese firms that aims at company‐wide interaction and utilization of human resources, and the acquisition of broad as well as deep skills. As regards the supplier‐assembler relationship (the so‐called vertical keiretsu relationship), we emphasize that the practice of continuous trading by no means implies lack of competition. In this long‐term relationship, which has been indispensable to Japanese production systems, such as the just‐in‐time and kanban methods, a price adjustment scheme has been in effect in order to share risks, to guarantee returns on innovation, and to maintain the competitiveness of the final product.
Hiroyuki Odagiri
- Published in print:
- 1994
- Published Online:
- November 2003
- ISBN:
- 9780198288732
- eISBN:
- 9780191596711
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198288735.003.0007
- Subject:
- Economics and Finance, South and East Asia
The difference between business groups today (kigyo‐shudan, also called horizontal keiretsu) and their predecessors before the war, zaibatsu, is emphasized. Unlike the zaibatsu, in which the group ...
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The difference between business groups today (kigyo‐shudan, also called horizontal keiretsu) and their predecessors before the war, zaibatsu, is emphasized. Unlike the zaibatsu, in which the group holding company controlled many firms through majority shareholdings and acted as the central decision‐making unit, present‐day groups are loose combinations of independent companies with equal power. To substantiate this argument, the structure and activity of kigyo‐shudan is discussed in detail. A comparative study of the performance, in terms of profitability, stability, and growth, of group members and nonmembers gives some, albeit weak, evidence to support the hypothesis that the groups contributed to growth and mutual insurance until 1971. However, this evidence does not hold any more after 1974.Less
The difference between business groups today (kigyo‐shudan, also called horizontal keiretsu) and their predecessors before the war, zaibatsu, is emphasized. Unlike the zaibatsu, in which the group holding company controlled many firms through majority shareholdings and acted as the central decision‐making unit, present‐day groups are loose combinations of independent companies with equal power. To substantiate this argument, the structure and activity of kigyo‐shudan is discussed in detail. A comparative study of the performance, in terms of profitability, stability, and growth, of group members and nonmembers gives some, albeit weak, evidence to support the hypothesis that the groups contributed to growth and mutual insurance until 1971. However, this evidence does not hold any more after 1974.
Hiroshi Oda
- Published in print:
- 2009
- Published Online:
- May 2009
- ISBN:
- 9780199232185
- eISBN:
- 9780191705335
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199232185.003.0015
- Subject:
- Law, Comparative Law
This chapter focuses on Japan's Anti-Monopoly Law. Topics discussed include the historical background of the law, an outline of the law, private monopolization, prevention of excessive concentration ...
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This chapter focuses on Japan's Anti-Monopoly Law. Topics discussed include the historical background of the law, an outline of the law, private monopolization, prevention of excessive concentration of economic power, unfair trade practices, problems of keiretsu (companies linked together by continuous business relations), application of the Anti-Monopoly Law on international transactions, and procedures and sanctions.Less
This chapter focuses on Japan's Anti-Monopoly Law. Topics discussed include the historical background of the law, an outline of the law, private monopolization, prevention of excessive concentration of economic power, unfair trade practices, problems of keiretsu (companies linked together by continuous business relations), application of the Anti-Monopoly Law on international transactions, and procedures and sanctions.
Jordi Canals
- Published in print:
- 1997
- Published Online:
- October 2011
- ISBN:
- 9780198775065
- eISBN:
- 9780191695353
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198775065.003.0007
- Subject:
- Business and Management, Finance, Accounting, and Banking, Strategy
This chapter analyzes the Japanese financial model. After outlining the main features of the Japanese financial system and its differences from the German system, it discusses the role and importance ...
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This chapter analyzes the Japanese financial model. After outlining the main features of the Japanese financial system and its differences from the German system, it discusses the role and importance of universal banks in Japan. In particular, it analyzes the concept of the main bank, its special relationships with non-financial companies, within business groups known as ‘keiretsu’, and their role within the framework of a financial system in which financial markets will play an increasingly important role.Less
This chapter analyzes the Japanese financial model. After outlining the main features of the Japanese financial system and its differences from the German system, it discusses the role and importance of universal banks in Japan. In particular, it analyzes the concept of the main bank, its special relationships with non-financial companies, within business groups known as ‘keiretsu’, and their role within the framework of a financial system in which financial markets will play an increasingly important role.
Masahiko Aoki and Ronald Dore
- Published in print:
- 1994
- Published Online:
- October 2011
- ISBN:
- 9780198288152
- eISBN:
- 9780191684579
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198288152.003.0001
- Subject:
- Economics and Finance, South and East Asia
This book is a collection of chapters written by specialists in diverse disciplines, ranging from theoretical and institutional economics to economic history, econometrics, sociology, organizational ...
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This book is a collection of chapters written by specialists in diverse disciplines, ranging from theoretical and institutional economics to economic history, econometrics, sociology, organizational theory, political science, and engineering. The chapters give personal interpretations to the issues in discussion here deriving opinions from other disciplines. This interactive multidisciplinary approach makes for a broader and richer perspective on what is, by any reckoning, a complex phenomenon. The individuality of this book is that no one in it claims to have discovered the secret of the Japanese firm, the autonomous factor that explains its competitive strength. Whether their topic be human resource management, the organization of innovation, or keiretsu ties, most of the contributors see the specific attributes of the Japanese firm with which they deal as elements of a broader system the parts of which are dependent on other parts for their effective functioning. The collection is its recognition of diversity is another specialty in this book.Less
This book is a collection of chapters written by specialists in diverse disciplines, ranging from theoretical and institutional economics to economic history, econometrics, sociology, organizational theory, political science, and engineering. The chapters give personal interpretations to the issues in discussion here deriving opinions from other disciplines. This interactive multidisciplinary approach makes for a broader and richer perspective on what is, by any reckoning, a complex phenomenon. The individuality of this book is that no one in it claims to have discovered the secret of the Japanese firm, the autonomous factor that explains its competitive strength. Whether their topic be human resource management, the organization of innovation, or keiretsu ties, most of the contributors see the specific attributes of the Japanese firm with which they deal as elements of a broader system the parts of which are dependent on other parts for their effective functioning. The collection is its recognition of diversity is another specialty in this book.
Yoshiro Miwa and J. Ramseyer
- Published in print:
- 2006
- Published Online:
- February 2013
- ISBN:
- 9780226532707
- eISBN:
- 9780226532721
- Item type:
- book
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226532721.001.0001
- Subject:
- Economics and Finance, International
For Western economists and journalists, the most distinctive facet of the post-war Japanese business world has been the keiretsu, or the insular business alliances among powerful corporations. Within ...
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For Western economists and journalists, the most distinctive facet of the post-war Japanese business world has been the keiretsu, or the insular business alliances among powerful corporations. Within keiretsu groups, argue these observers, firms preferentially trade, lend money, take and receive technical and financial assistance, and cement their ties through cross-shareholding agreements. This book demonstrates that all this talk is really just urban legend. In their analysis, the chapters here show that the very idea of the keiretsu was created and propagated by Marxist scholars in post-war Japan. Western scholars merely repatriated the legend to show the culturally contingent nature of modern economic analysis. Laying waste to the notion of keiretsu, the book debunks several related “facts” as well: that Japanese firms maintain special arrangements with a “main bank,” that firms are systematically poorly managed, and that the Japanese government guided post-war growth. In demolishing these long-held assumptions, this book aims to offer a reliable chronicle of the realities of Japanese business.Less
For Western economists and journalists, the most distinctive facet of the post-war Japanese business world has been the keiretsu, or the insular business alliances among powerful corporations. Within keiretsu groups, argue these observers, firms preferentially trade, lend money, take and receive technical and financial assistance, and cement their ties through cross-shareholding agreements. This book demonstrates that all this talk is really just urban legend. In their analysis, the chapters here show that the very idea of the keiretsu was created and propagated by Marxist scholars in post-war Japan. Western scholars merely repatriated the legend to show the culturally contingent nature of modern economic analysis. Laying waste to the notion of keiretsu, the book debunks several related “facts” as well: that Japanese firms maintain special arrangements with a “main bank,” that firms are systematically poorly managed, and that the Japanese government guided post-war growth. In demolishing these long-held assumptions, this book aims to offer a reliable chronicle of the realities of Japanese business.
J. Mark Ramseyer
- Published in print:
- 2006
- Published Online:
- February 2013
- ISBN:
- 9780226532707
- eISBN:
- 9780226532721
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226532721.003.0001
- Subject:
- Economics and Finance, International
This introductory chapter discusses the theme of this volume which is about keiretsu, post-war Japanese insular business alliances. This volume argues that keiretsu is nothing more than an urban ...
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This introductory chapter discusses the theme of this volume which is about keiretsu, post-war Japanese insular business alliances. This volume argues that keiretsu is nothing more than an urban legend propagated by Marxist scholars in the 1950s. It also debunks other related myths about the Japanese business world including zaibatsu, which explains government guidance and maintenance of special arrangement with main bank.Less
This introductory chapter discusses the theme of this volume which is about keiretsu, post-war Japanese insular business alliances. This volume argues that keiretsu is nothing more than an urban legend propagated by Marxist scholars in the 1950s. It also debunks other related myths about the Japanese business world including zaibatsu, which explains government guidance and maintenance of special arrangement with main bank.
Michael Gerlach
- Published in print:
- 1997
- Published Online:
- May 2012
- ISBN:
- 9780520208896
- eISBN:
- 9780520919105
- Item type:
- book
- Publisher:
- University of California Press
- DOI:
- 10.1525/california/9780520208896.001.0001
- Subject:
- Anthropology, Asian Cultural Anthropology
Business practices in Japan inspire fierce and even acrimonious debate, especially when they are compared to American ones. This book attempts to explain the remarkable economic success of Japan in ...
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Business practices in Japan inspire fierce and even acrimonious debate, especially when they are compared to American ones. This book attempts to explain the remarkable economic success of Japan in the postwar period—a success it is crucial for us to understand in a time marked by controversial trade imbalances and concerns over competitive industrial performance. It focuses on what it calls the intercorporate alliance, the innovative and increasingly pervasive practice of bringing together a cluster of affiliated companies that extends across a broad range of markets. The best known of these alliances are the keiretsu, or enterprise groups, which include both diversified families of firms located around major banks and trading companies, and vertical families of suppliers and distributors linked to prominent manufacturers in the automobile, electronics, and other industries. In providing a key link between isolated local firms and extended international markets, the intercorporate alliance has had profound effects on the industrial and social organization of Japanese businesses. The book casts its net widely. It not only provides a rigorous analysis of intercorporate capitalism in Japan, making useful distinctions between Japanese and American practices, but also develops a broad theoretical context for understanding Japan's business networks. Addressing economists, sociologists, and other social scientists, the book argues that the intercorporate alliance is as much a result of overlapping political, economic, and social forces as are such traditional Western economic institutions as the public corporation and the stock market.Less
Business practices in Japan inspire fierce and even acrimonious debate, especially when they are compared to American ones. This book attempts to explain the remarkable economic success of Japan in the postwar period—a success it is crucial for us to understand in a time marked by controversial trade imbalances and concerns over competitive industrial performance. It focuses on what it calls the intercorporate alliance, the innovative and increasingly pervasive practice of bringing together a cluster of affiliated companies that extends across a broad range of markets. The best known of these alliances are the keiretsu, or enterprise groups, which include both diversified families of firms located around major banks and trading companies, and vertical families of suppliers and distributors linked to prominent manufacturers in the automobile, electronics, and other industries. In providing a key link between isolated local firms and extended international markets, the intercorporate alliance has had profound effects on the industrial and social organization of Japanese businesses. The book casts its net widely. It not only provides a rigorous analysis of intercorporate capitalism in Japan, making useful distinctions between Japanese and American practices, but also develops a broad theoretical context for understanding Japan's business networks. Addressing economists, sociologists, and other social scientists, the book argues that the intercorporate alliance is as much a result of overlapping political, economic, and social forces as are such traditional Western economic institutions as the public corporation and the stock market.
Michael L. Gerlach
- Published in print:
- 1997
- Published Online:
- May 2012
- ISBN:
- 9780520208896
- eISBN:
- 9780520919105
- Item type:
- chapter
- Publisher:
- University of California Press
- DOI:
- 10.1525/california/9780520208896.003.0001
- Subject:
- Anthropology, Asian Cultural Anthropology
This chapter presents an overview of market capitalism and the business sector in Japan. It explores the network of alliances among the major corporations that make up the Japanese economy, and ...
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This chapter presents an overview of market capitalism and the business sector in Japan. It explores the network of alliances among the major corporations that make up the Japanese economy, and provides a schematic representation of strategic alliances and intermarket keiretsu. The chapter also suggests that the proliferation of complex new forms of strategic alliances elsewhere has raised the issue of how different Japanese patterns of intercorporate relations really are. The analysis indicates that intercorporate alliance structures are a core feature of Japanese market capitalism and that they also represent a form of rational economic organization.Less
This chapter presents an overview of market capitalism and the business sector in Japan. It explores the network of alliances among the major corporations that make up the Japanese economy, and provides a schematic representation of strategic alliances and intermarket keiretsu. The chapter also suggests that the proliferation of complex new forms of strategic alliances elsewhere has raised the issue of how different Japanese patterns of intercorporate relations really are. The analysis indicates that intercorporate alliance structures are a core feature of Japanese market capitalism and that they also represent a form of rational economic organization.
Michael L. Gerlach
- Published in print:
- 1997
- Published Online:
- May 2012
- ISBN:
- 9780520208896
- eISBN:
- 9780520919105
- Item type:
- chapter
- Publisher:
- University of California Press
- DOI:
- 10.1525/california/9780520208896.003.0004
- Subject:
- Anthropology, Asian Cultural Anthropology
This chapter discusses the structure and form of the Japanese keiretsu. It describes Japan's business groupings, including the creation of higher-level executive councils, the structuring of exchange ...
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This chapter discusses the structure and form of the Japanese keiretsu. It describes Japan's business groupings, including the creation of higher-level executive councils, the structuring of exchange networks, and the promotion of groupwide industrial and public relations projects. The analysis indicates systematic and continuing patterns of preferential business relationships based on keiretsu affiliation.Less
This chapter discusses the structure and form of the Japanese keiretsu. It describes Japan's business groupings, including the creation of higher-level executive councils, the structuring of exchange networks, and the promotion of groupwide industrial and public relations projects. The analysis indicates systematic and continuing patterns of preferential business relationships based on keiretsu affiliation.
Michael L. Gerlach
- Published in print:
- 1997
- Published Online:
- May 2012
- ISBN:
- 9780520208896
- eISBN:
- 9780520919105
- Item type:
- chapter
- Publisher:
- University of California Press
- DOI:
- 10.1525/california/9780520208896.003.0005
- Subject:
- Anthropology, Asian Cultural Anthropology
This chapter analyzes the overall patterns of affiliation and alliance formation in the Japanese economy. It examines the processes of group expansion and the evolution of group affiliations over ...
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This chapter analyzes the overall patterns of affiliation and alliance formation in the Japanese economy. It examines the processes of group expansion and the evolution of group affiliations over time, commonalities among keiretsu and independent firms and factors associated with group membership. The chapter describes the three key features of the alliance formation of Japanese businesses. These include the continually changing market opportunities that actors seek to appropriate and the considerable difference between actors' network positions and resulting market power.Less
This chapter analyzes the overall patterns of affiliation and alliance formation in the Japanese economy. It examines the processes of group expansion and the evolution of group affiliations over time, commonalities among keiretsu and independent firms and factors associated with group membership. The chapter describes the three key features of the alliance formation of Japanese businesses. These include the continually changing market opportunities that actors seek to appropriate and the considerable difference between actors' network positions and resulting market power.
Yoshiro Miwa and J. Mark Ramseyer
- Published in print:
- 2005
- Published Online:
- March 2012
- ISBN:
- 9780199290703
- eISBN:
- 9780191700576
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199290703.003.0027
- Subject:
- Law, Company and Commercial Law
In the modern banking literature, scholars who write about Japan focus on the concept of a ‘main bank’: the notion that all large Japanese firms maintain a specially close relationship with one bank ...
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In the modern banking literature, scholars who write about Japan focus on the concept of a ‘main bank’: the notion that all large Japanese firms maintain a specially close relationship with one bank that performs multiple roles. That notion, however, constitutes but the most recent iteration of a myth that has thrived for nearly a half-century: the notion that large Japanese firms organise themselves around a few key banks as keiretsu corporate groups. And this myth, in turn, constitutes part of a larger tale that places Japanese firms within a non-market, government-dominated hothouse environment. This chapter attempts to unravel these inter-related urban legends. Part II explains the role the government has (and has not) played in the Japanese economy. It then discusses the putative keiretsu corporate groups and ‘main bank’ relationships. All three of these urban legends share a common intellectual ancestry that traces its roots to the peculiar politics of the post-war Japanese and American universities. Accordingly, Part III closes by telling that intellectual history.Less
In the modern banking literature, scholars who write about Japan focus on the concept of a ‘main bank’: the notion that all large Japanese firms maintain a specially close relationship with one bank that performs multiple roles. That notion, however, constitutes but the most recent iteration of a myth that has thrived for nearly a half-century: the notion that large Japanese firms organise themselves around a few key banks as keiretsu corporate groups. And this myth, in turn, constitutes part of a larger tale that places Japanese firms within a non-market, government-dominated hothouse environment. This chapter attempts to unravel these inter-related urban legends. Part II explains the role the government has (and has not) played in the Japanese economy. It then discusses the putative keiretsu corporate groups and ‘main bank’ relationships. All three of these urban legends share a common intellectual ancestry that traces its roots to the peculiar politics of the post-war Japanese and American universities. Accordingly, Part III closes by telling that intellectual history.
J. Mark Ramseyer
- Published in print:
- 2006
- Published Online:
- February 2013
- ISBN:
- 9780226532707
- eISBN:
- 9780226532721
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226532721.003.0002
- Subject:
- Economics and Finance, International
This chapter evaluates the concept of Japanese insular business alliances called keiretsu. It analyzes whether information about keiretsu matches business data from Japan and examines the so-called ...
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This chapter evaluates the concept of Japanese insular business alliances called keiretsu. It analyzes whether information about keiretsu matches business data from Japan and examines the so-called vertical keiretsu. The analysis reveals that there are no keiretsu and never have been any. At root, the keiretsu instead represent a fable about the mythical vision of the Japanese economy.Less
This chapter evaluates the concept of Japanese insular business alliances called keiretsu. It analyzes whether information about keiretsu matches business data from Japan and examines the so-called vertical keiretsu. The analysis reveals that there are no keiretsu and never have been any. At root, the keiretsu instead represent a fable about the mythical vision of the Japanese economy.
J. Mark Ramseyer
- Published in print:
- 2006
- Published Online:
- February 2013
- ISBN:
- 9780226532707
- eISBN:
- 9780226532721
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226532721.003.0003
- Subject:
- Economics and Finance, International
This chapter examines the concept of the zaibatsu, pre-World War 2 Japanese business conglomerates. It suggests that the zaibatsu did exist but were not like the groups that academics described. The ...
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This chapter examines the concept of the zaibatsu, pre-World War 2 Japanese business conglomerates. It suggests that the zaibatsu did exist but were not like the groups that academics described. The analysis also reveals that the zaibatsu acquired their intellectual prominence because they happened to be thriving when muckraking journalists in the 1920s and 1930s came looking for someone to blame for the depression. This chapter also trace the ties between zaibatsu and the fable of the keiretsu.Less
This chapter examines the concept of the zaibatsu, pre-World War 2 Japanese business conglomerates. It suggests that the zaibatsu did exist but were not like the groups that academics described. The analysis also reveals that the zaibatsu acquired their intellectual prominence because they happened to be thriving when muckraking journalists in the 1920s and 1930s came looking for someone to blame for the depression. This chapter also trace the ties between zaibatsu and the fable of the keiretsu.
J. Mark Ramseyer
- Published in print:
- 2006
- Published Online:
- February 2013
- ISBN:
- 9780226532707
- eISBN:
- 9780226532721
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226532721.003.0007
- Subject:
- Economics and Finance, International
This chapter sums up the key findings of this study about some of the myths about the Japanese economy. It confirms that the fables about Japanese bureaucrats, keiretsu, main banks, and ...
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This chapter sums up the key findings of this study about some of the myths about the Japanese economy. It confirms that the fables about Japanese bureaucrats, keiretsu, main banks, and systematically misgoverned firms are just fables with no factual basis or data to support them. This chapter also provides an analysis of the possible causes of the economic crisis in Japan in the 1990s.Less
This chapter sums up the key findings of this study about some of the myths about the Japanese economy. It confirms that the fables about Japanese bureaucrats, keiretsu, main banks, and systematically misgoverned firms are just fables with no factual basis or data to support them. This chapter also provides an analysis of the possible causes of the economic crisis in Japan in the 1990s.
Gary G. Hamilton and Solee Shin
- Published in print:
- 2016
- Published Online:
- April 2016
- ISBN:
- 9780198729167
- eISBN:
- 9780191795886
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198729167.003.0007
- Subject:
- Business and Management, International Business, Political Economy
This chapter argues that East Asian business systems are best conceptualized as emergent outcomes of competition in and across capitalist markets. The ways economies become organized and change over ...
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This chapter argues that East Asian business systems are best conceptualized as emergent outcomes of competition in and across capitalist markets. The ways economies become organized and change over time results directly from capitalist economic activities, and only indirectly from institutions that in various ways constitute and frame the economic actors and their activities. Competition in capitalist markets is directly related to technologies that entrepreneurs adapt to making money in an ever-changing economic environment. In East Asia, state officials, as well as the owners and managers of private businesses, are among those entrepreneurs that attempt to channel market economies according to their own interests. These interests are in turn shaped by political and social institutions. We show that, as East Asian economies adapt to global changes in technologies for making money, there is considerable continuity in how national business systems reproduce themselves in a global capitalist economic environment.Less
This chapter argues that East Asian business systems are best conceptualized as emergent outcomes of competition in and across capitalist markets. The ways economies become organized and change over time results directly from capitalist economic activities, and only indirectly from institutions that in various ways constitute and frame the economic actors and their activities. Competition in capitalist markets is directly related to technologies that entrepreneurs adapt to making money in an ever-changing economic environment. In East Asia, state officials, as well as the owners and managers of private businesses, are among those entrepreneurs that attempt to channel market economies according to their own interests. These interests are in turn shaped by political and social institutions. We show that, as East Asian economies adapt to global changes in technologies for making money, there is considerable continuity in how national business systems reproduce themselves in a global capitalist economic environment.
