The History and Structure of Business Groups in Japan

Abstract

Abstract The USA-Japan bilateral Structural Impediments Initiatives (SIi}, which began in 1989, marked the start of serious debate concerning business groups and keiretsu, as interest mounted in the nature of the special inter firm networks formed by Japanese companies, and in their role in promoting Japan ‘s resilient international competitiveness. Seemingly unique Japanese business practices, along with the closed or exclusive nature of Japanese corporate complexes, were also addressed. Specifically, the mutual stockholding arrangements forming the basis for the six major complexes became a focus of attention, and the exclusivity of intra complex transactions was made a target for criticism. However, the six major complexes are not the only significant constellations of firms in the Japanese economy. There are, for example, pyramid-like ‘corporate groups ‘ featuring a large enterprise at the apex, supported by a large number of subsidiaries. These are generally known by the parent ‘s name, as in the Toyota group, the Matsushita group, or the Sony group.