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Asia Pac J Manag (2009) 26:333351
Jean McGuire & Sandra Dow
Published online: 14 June 2008# Springer Science + Business Media, LLC 2008
Abstract This article reviews major theoretical and empirical work on vertical and horizontal Japanese keiretsu. We first outline the history, characteristics, and strategic and performance implications of each type of business group. We then discuss changes in the Japanese economy during the post-1992 Japanese economic decline and their implications for the persistence and continued benefits of each form of inter-corporate grouping followed by a discussion of empirical findings regarding the continued role of keiretsu in the Japanese economy. The review concludes by exploring areas of future research into the evolution of keiretsu ties and their implications.
Keywords Business groups . Japan . Keiretsu . Corporate governance
Keiretsu are established and commonly recognized networks of Japanese firms. Japanese industrial organization has long been characterized by two important forms of inter-corporate linkages. Historically, six major horizontal keiretsu dominated the industrial landscape of Japan. Complementing these horizontal keiretsu are vertical keiretsu usually organized around a major industrial firm and its buyers and suppliers. Examples of these groupings are those centered around major automobile
We are grateful for the helpful comments we received from Mike Peng (Editor-in-Chief) on an earlier draft of this manuscript. The authors also thank the Social Science and Humanities Research Council of Canada (Grant 410 2006 1468) and the Fonds Qubcois de la Recherche sur la Socit et Culture (Grant 2007 SE 111772) for their research support. The opinions expressed are those of the authors and do not necessarily reflect those of the granting agencies.
Department of Management, Ourso College of Business, Louisiana State University, Baton Rouge, LA 70808, USAe-mail: [email protected]
Department of Finance, cole des Sciences de la Gestion, Universit du Qubec Montral, 315 rue Sainte-Catherine Est, Montral, Quebec H2X 3X2, Canadae-mail: [email protected]
Japanese keiretsu: Past, present, future
334 J. McGuire, S. Dow
manufacturers such as Toyota and Honda. The objective of this paper is to review research on keiretsu and propose directions for future inquiry. How was this research done in the past? What are the main streams at the present? How will the future of this research evolve?
Accomplishing this objective.
