Authors
Takao Ito, Tsutomu Ito, Katsuhiko Takahashi, Makoto Sakamoto, Satoshi Ikeda,
Rajiv Mehta
Corresponding Author
Takao Ito
Available Online 1 September 2015.
DOI
https://doi.org/10.2991/jrnal.2015.2.2.13
Keywords
Influence, Degree, Effective Size, the IDE model, keiretsu loosening
Abstract
This paper introduces recent fundamental modifications to the Japanese
alliance system known as the keiretsu, and analyses how these changes have
affected corporate performance. More specially, the performance of Japanese
auto manufacturers, such as Toyota, Nissan and others, has significantly
improved due to sophisticated production system technologies, highly productive
workers, and recurring transaction relationships with their network family
partners. After economic bubble of the 1990s, the strong ties between automobile
makers and their supplier partners experienced significant changes, which
are known as “keiretsu loosening”. Consequently, what is the status quo
of automotive keiretsus? Does cross-shareholding, which is one specific
form of capital relationship in keiretsu, still contribute to improving
corporate performance? To answer these questions, this research reports
the results of a study that collected data on cross-shareholdings to shed
light on the relationship between inter-firm capital relationship and corporate
performance. The findings of this empirical investigation reveal that:
(1) Keiretsu is a flexible, highly adaptive organizational form; its scale
changes in response to economic situations; (2) Capital relationships still
remain a significant determinant of increasing profits for keiretsu partners
even after the bubble burst in the 1990s.
Copyright
© 2013, the Authors. Published by ALife Robotics Corp. Ltd.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).