nach oben

Asia Pacific Journal of Management

Erschienen in:

01.12.2006

Japanese horizontal keiretsu and the performance implications of membership

verfasst von: Takehiko Isobe, Shige Makino, Anthony Goerzen

Erschienen in: Asia Pacific Journal of Management | Ausgabe 4/2006

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

Our study investigates the effect of Japanese horizontal keiretsu group membership on firm risk and return. Like prior studies, our results show that horizontal keiretsu membership has a negative effect on firm profitability. However, we find that horizontal keiretsu networks are likely to increase the gap between targeted and realized returns, which we call the outcome–aspiration gap. Moreover, in contrast to prior studies, our results indicate that keiretsu membership does not enable member firms to reduce risks by smoothing profitability. Instead, our findings provide evidence that is counter to the conventional notion that Japanese horizontal keiretsu allows their member firms to trade off profits for reduced risk.

Vorheriger Artikel Business groups and market failures: A focus on vertical and horizontal strategies

Nächster Artikel Business group affiliation and firm performance in a transition economy: A focus on ownership voids

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Of 48 firms which disappeared from Nakatani’s list, 23 firms have gone bankrupt or delisted from stock markets and 25 firms were merged or integrated. As a robustness check, we used all firms listed in Tokyo Stock Market as of the year of 2000, the results are quite similar to those of this study suggesting that the elimination of the firms from Nakatani’s sample does not bias our results.

Prior studies have controlled for industry effects on firm risk by using dummy variables. Our results show that keiretsu membership is negatively associated with volatility of firm profitability which is consistent with prior studies. Thus, the relationship between keiretsu membership and firms risk is clearly influenced by the methodological techniques to control the industry effects.

Aoki, M. 1990. Toward an economic model of the Japanese firm. Journal of Economic Literature, 28(1): 1–27.

Attaran, M., & Zwick, M. 1987. Entropy and other measures of industrial diversification. Quarterly Journal of Business and Economics, 26(4): 17–34.

Bourgeois, L., & Singh, J. 1983. Organizational slack and political behavior among top management teams. Academy of Management Proceedings: 43–47.

Bromiley, P. 1991. Testing a causal model of corporate risk taking and performance. Academy of Management Journal, 34(1): 37–59.CrossRef

Burt, R. 1992. Structural holes: The social structure of competition. Cambridge, MA: Harvard University Press.

Carney, M. 2005. Globalization and the renewal of Asian business networks. Asia Pacific Journal of Management, 22(4): 337–354.CrossRef

Carney, M., & Gedajlovic, E. 2003. Strategic innovation and the administrative heritage of East Asian family business groups. Asia Pacific Journal of Management, 20(1): 5–26.CrossRef

Christensen, H., & Montgomery, C. 1981. Corporate economic performance: Diversification strategy versus market structure. Strategic Management Journal, 2(4): 327–344.CrossRef

Chu, W. 2001. Contingency organizations and shared values: Multiple logics in managing diversification. Asia Pacific Journal of Management, 18(1): 83–99.CrossRef

Coleman, J. 1990. Foundations of social theory. Cambridge, MA: Belknap

Dalton, D., Daily, C., Ellstrand, A., & Johnson, J. 1998. Meta-analytic reviews of board composition, leadership structure, and financial performance. Strategic Management Journal, 19(3): 269–290.CrossRef

Delios, A., & Beamish, P. 1999. Geographic scope, product diversification, and the corporate performance of Japanese firms. Strategic Management Journal, 20(8): 711–727.CrossRef

Dow, S., & McGuire, J. 1999. The sources and advantages of Japanese industrial organization. Asia Pacific Journal of Management, 16(1): 47–74.CrossRef

Dyer, J., & Singh, H. 1998. The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Academy of Management Review, 23(4): 660–679.CrossRef

Flath, D. 1996. The keiretsu puzzle. Journal of the Japanese and International Economies, 10(2): 101–121.CrossRef

Gerlach, M. 1992. Alliance capitalism: The social organization of Japanese business. Los Angeles: University of California Press.

Granovetter, M. 1994. Business groups. In Smelser, N., & Swedberg, R. (Eds.). The handbook of economic sociology: 453–475. Princeton, NJ: Princeton University Press.

Granovetter, M. 1995. Coase revisited: Business groups in the modern economy. Industrial and Corporate Change, 4(1): 93–130.CrossRef

Greve, H. 2004. A behavioral theory of R&D expenditures and innovations: Evidence from shipbuilding. Academy of Management Journal, 46(6): 685–702.

Gulati, R. 1998. Alliances and networks. Strategic Management Journal, 19(4): 293–317.CrossRef

Gulati, R., & Singh, H. 1998. The architecture of cooperation: Managing coordination costs and appropriation concerns in strategic alliances. Administrative Science Quarterly, 43(4): 781–815.CrossRef

Hargadon, A., & Sutton, R. 1997. Technology brokering and innovation in a product development firm. Administrative Science Quarterly, 42(4): 716–749.CrossRef

Hoshi, T., Kashyap, A., & Scharfstein, D. 1990. The role of banks in reducing the costs of financial distress in Japan. Journal of Financial Economics, 27(1): 67–88.CrossRef

Hoshi, T., Kashyap, A., & Scharfstein, D. 1991. Corporate structure, liquidity, and investment: Evidence from Japanese industrial groups. Quarterly Journal of Economics, 106(1): 33–60.CrossRef

Japan Fair Trade Commission. 2001. State of corporate groups in Japan: The seventh survey report. 12-01-001.264-00-A. Washington, District of Columbia: The Fair Trade Commission.

Khanna, T., & Palepu, K. 1997. Why focused strategies may be wrong for emerging markets. Harvard Business Review, 75(4): 41–49.

Khanna, T., & Rivkin, J. 2001. Estimating the performance effects of business groups in emerging markets. Strategic Management Journal, 22(1): 45–74.CrossRef

Khanna, T., & Yafeh, Y. 2005. Business groups and risk sharing around the world. Journal of Business, 78(1): 301–340.CrossRef

Kim, H., Hoskisson, R., & Tihanyi, L. 2004. The evolution and restructuring of diversified business groups in emerging markets: The lessons from chaebols in Korea. Asia Pacific Journal of Management, 21(1–2): 25–48.CrossRef

Levitt, B., & March, J. 1988. Organizational learning. Annual Review of Sociology, 14: 319–340.CrossRef

Lincoln, J., Gerlach, M., & Ahmadjian, C. 1996. Keiretsu networks and corporate performance in Japan. American Sociological Review, 61(1): 67–88.CrossRef

Lubatkin, M., & Chatterjee, S. 1994. Extending modern portfolio theory into the domain of corporate diversification: Does it apply?. Academy of Management Journal, 37(1): 109–136.CrossRef

Miller, K., & Reuer, J. 1996. Measuring organizational downside risk. Strategic Management Journal, 17(9): 671–691.CrossRef

Miwa, Y., & Ramseyer, J. 2002. The fable of the keiretsu. Journal of Economics and Management Strategy, 11(2): 169–224.CrossRef

Nahapiet, J., & Ghoshal, S. 1998. Social capital, intellectual capital, and the organizational advantage. Academy of Management Review, 23(2): 242–266.CrossRef

Nakatani, I. 1984. The economic role of financial corporate grouping. In Aoki, M. (Ed.). The economic analysis of the Japanese firm: 227–258. Amsterdam, The Netherlands: North Holland.

Palepu, K. 1985. Diversification strategy, profit performance, and the entropy measure of diversification. Strategic Management Journal, 6(3): 239–255.CrossRef

Peng, M. 2003. Institutional transitions and strategic choices. Academy of Management Review, 28(2): 275–286.CrossRef

Ramanujam, V., & Varadarajan, P. 1989. Research on corporate diversification: A synthesis. Strategic Management Journal, 10(6): 523–551.CrossRef

Sheard, P. 1989. The main bank system and corporate monitoring and control in Japan. Journal of Economic Behavior and Organization, 11(3): 399–422.CrossRef

Sitkin, S., & Pablo, A. 1992. Reconceptualizing the determinants of risk behavior. Academy of Management Review, 17(1): 9–39.CrossRef

Sutton, R., & Hargadon, A. 1996. Brainstorming groups in context: Effectiveness in a product design firm. Administrative Science Quarterly, 41(4): 685–718.CrossRef

Tabeta, N. 1998. The kigyo keiretsu organization and opportunism in the Japanese automobile manufacturing industry. Asia Pacific Journal of Management, 15(1): 1–18.CrossRef

Tabeta, N., & Rahman, S. 1999. Risk sharing mechanism in Japan’s auto industry: The keiretsu versus independent parts suppliers. Asia Pacific Journal of Management, 16(3): 311–330.CrossRef

Uzzi, B. 1996. The sources and consequences of embeddedness for the economic performance of organizations: The network effect. American Sociological Review, 61(4): 674–699.CrossRef

Wang, H., Huang, P., & Bansal, P. 2005. What determined success during the Asian economic crisis?: The importance of experiential knowledge and group affiliation. Asia Pacific Journal of Management, 22(1): 89–106.CrossRef

Weinstein, D., & Yafeh, Y. 1995. Japan’s corporate groups: Collusion or competitive? An empirical investigation of keiretsu behavior. Journal of Industrial Economics, 43(4): 359–376.CrossRef

Titel: Japanese horizontal keiretsu and the performance implications of membership
verfasst von: Takehiko Isobe
Shige Makino
Anthony Goerzen
Publikationsdatum: 01.12.2006
Verlag: Springer US
Erschienen in: Asia Pacific Journal of Management / Ausgabe 4/2006
Print ISSN: 0217-4561
Elektronische ISSN: 1572-9958
DOI: https://doi.org/10.1007/s10490-006-9015-2

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Weitere Artikel der Ausgabe 4/2006

What determines the scope of the firm over time and around the world? An Asia Pacific perspective

Creating relational rents: The effect of business groups on affiliated firms’ performance in Indonesia

Business groups and their types

Indian business groups: Evolution and transformation

Business groups and market failures: A focus on vertical and horizontal strategies

Oscillating between a relationship-based and a market-based model: The Salim Group

Premium Partner