IDEAS home Printed from https://ideas.repec.org/p/eti/rdpsjp/09017.html
   My bibliography  Save this paper

Pluralistic Evolution of the Japanese-Style Enterprise System: Toward the Hybrid Model (Japanese)

Author

Listed:
  • MIYAJIMA Hideaki

Abstract

The goal of this report is to overview the characteristics of the evolution and current status of corporate governance of Japanese companies from the 1990s to recent years, by focusing on two keywords: diversification and hybridization. We also seek to identify the policy implications with respect to the direction of future reform. First, we will present our view on the dispute as to whether the evolution of the enterprise system will converge into one system or whether it will continue to exist in different forms. We will emphasize the fact that the evolution of Japanese companies is not considered as simply converging with the American style, because it has not shown the uniformed pattern; rather, it is manifesting a hybrid evolution, the combining of the two different modes of a market-based system and a relationship-based system. Second, we will examine the process of the evolution of the enterprise system that commenced in the 1980s and accelerated from the middle of the 1990s, by focusing on the company called the Type I Hybrid in this report. In doing so, we will concentrate on how corporate governance and internal organizations that are mutually complimentary by rights have evolved into a hybrid structure. Third, we will examine whether or not the hybrid-type company that emerged through the evolution process as described above has actually had a significant impact on corporate activities or performance. In this connection, we will present the possibility of the hybrid-type company playing a key role in enhancing the performance of Japanese companies. Moreover, by using an example of a company choosing M&A, we will show that corporate governance and organizational structures significantly impact on the company's strategic decisions in areas such as M&A. Finally, we will summarize the challenges associated with reforms to corporate governance in the future, by focusing on the three different types of Japanese companies that currently exist.

Suggested Citation

  • MIYAJIMA Hideaki, 2009. "Pluralistic Evolution of the Japanese-Style Enterprise System: Toward the Hybrid Model (Japanese)," Discussion Papers (Japanese) 09017, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:rdpsjp:09017
    as

    Download full text from publisher

    File URL: https://www.rieti.go.jp/jp/publications/dp/09j017.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Andrei Shleifer & Florencio Lopez-de-Silanes & Rafael La Porta, 2008. "The Economic Consequences of Legal Origins," Journal of Economic Literature, American Economic Association, vol. 46(2), pages 285-332, June.
    2. Michel Aglietta & Antoine Rebérioux, 2005. "Corporate Governance Adrift," Books, Edward Elgar Publishing, number 3675.
    3. Nicholas Bloom & John Van Reenen, 2007. "Measuring and Explaining Management Practices Across Firms and Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(4), pages 1351-1408.
    4. Julian FRANKS & Colin MAYER & MIYAJIMA Hideaki, 2009. "Equity Markets and Institutions: The case of Japan," Discussion papers 09039, Research Institute of Economy, Trade and Industry (RIETI).
    5. Hall, Peter A. & Gingerich, Daniel W., 2004. "Varieties of Capitalism and Institutional Complementarities in the Macroeconomy," MPIfG Discussion Paper 04/5, Max Planck Institute for the Study of Societies.
    6. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998. "Law and Finance," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1113-1155, December.
    7. Henry Hansmann & Reinier Kraakman, 2000. "The End Of History For Corporate Law," Yale School of Management Working Papers ysm136, Yale School of Management, revised 01 Feb 2001.
    8. Thelen,Kathleen, 2004. "How Institutions Evolve," Cambridge Books, Cambridge University Press, number 9780521546744.
    9. Streeck, Wolfgang & Thelen, Kathleen (ed.), 2005. "Beyond Continuity: Institutional Change in Advanced Political Economies," OUP Catalogue, Oxford University Press, number 9780199280469.
    10. Rajan, Raghuram G, 1992. "Insiders and Outsiders: The Choice between Informed and Arm's-Length Debt," Journal of Finance, American Finance Association, vol. 47(4), pages 1367-1400, September.
    11. Nicholas Bloom & Christos Genakos & Raffaella Sadun & John Van Reenen, 2011. "Management Practices Across Firms and Countries," CEP Discussion Papers dp1109, Centre for Economic Performance, LSE.
    12. Andrei Shleifer, 2009. "The Age of Milton Friedman," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 123-135, March.
    13. Takeo Hoshi & Anil Kashyap & David Scharfstein, 1993. "The Choice Between Public and Private Debt: An Analysis of Post-Deregulation Corporate Financing in Japan," NBER Working Papers 4421, National Bureau of Economic Research, Inc.
    14. Raffaella Sadun & John Van Reenen & Nick Bloom, 2008. "Measuring And Explaining Decentralization Across Firms And Countries," 2008 Meeting Papers 246, Society for Economic Dynamics.
    15. Masahiko Aoki & Gregory Jackson, 2008. "Understanding an emergent diversity of corporate governance and organizational architecture: an essentiality-based analysis -super-1," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 17(1), pages 1-27, February.
    16. Boyan Jovanovic & Peter L. Rousseau, 2002. "The Q-Theory of Mergers," American Economic Review, American Economic Association, vol. 92(2), pages 198-204, May.
    17. Thelen,Kathleen, 2004. "How Institutions Evolve," Cambridge Books, Cambridge University Press, number 9780521837682.
    18. Park, Kwangwoo, 2002. "Foreign Ownership and Firm Value in Japan," CEI Working Paper Series 2002-15, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Prasnikar, Janez & Mikerevic, Dragan & Voje, Damjan, 2014. "Blockholding and organisational diversity: the case of a transition economy," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 19(3), pages 277-304.
    2. Ahlquist, John S. & Breunig, Christian, 2009. "Country clustering in comparative political economy," MPIfG Discussion Paper 09/5, Max Planck Institute for the Study of Societies.
    3. Deeg, Richard, 2005. "Complementarity and institutional change: How useful a concept?," Discussion Papers, Research Unit: Institutions, States, Markets SP II 2005-21, WZB Berlin Social Science Center.
    4. Luke Nottage, 2006. "Nothing New in the (North) East? Interpreting the Rhetoric and Reality of Japanese Corporate Governance," Governance Working Papers 21819, East Asian Bureau of Economic Research.
    5. James B. Ang & Jakob B. Madsen, 2012. "Risk capital, private credit, and innovative production," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 45(4), pages 1608-1639, November.
    6. Buchen, Clemens, 2010. "Emerging economic systems in Central and Eastern Europe – a qualitative and quantitative assessment," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 37141, July.
    7. Oriana Bandiera & Luigi Guiso & Andrea Prat & Raffaella Sadun, 2015. "Matching Firms, Managers, and Incentives," Journal of Labor Economics, University of Chicago Press, vol. 33(3), pages 623-681.
    8. Schmid, Thomas & Ampenberger, Markus & Kaserer, Christoph & Achleitner, Ann-Kristin, 2010. "Controlling shareholders and payout policy: do founding families have a special 'taste for dividends'?," CEFS Working Paper Series 2010-01, Technische Universität München (TUM), Center for Entrepreneurial and Financial Studies (CEFS).
    9. Alberto Chong & Angelo Cozzubo, 2019. "Perverse Incentives? Labor Market Regulation and Performance in the Public Sector," Southern Economic Journal, John Wiley & Sons, vol. 86(1), pages 271-285, July.
    10. van Hoorn, Andre, 2016. "How much does job autonomy vary across countries and other extra-organizational contexts?," MPRA Paper 80010, University Library of Munich, Germany.
    11. Paolo Buccirossi & Lorenzo Ciari & Tomaso Duso & Giancarlo Spagnolo & Cristiana Vitale, 2013. "Competition Policy and Productivity Growth: An Empirical Assessment," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1324-1336, October.
    12. Lin, Chen & Ma, Yue & Malatesta, Paul & Xuan, Yuhai, 2013. "Corporate ownership structure and the choice between bank debt and public debt," Journal of Financial Economics, Elsevier, vol. 109(2), pages 517-534.
    13. DiVito, Lori, 2012. "Institutional entrepreneurship in constructing alternative paths: A comparison of biotech hybrids," Research Policy, Elsevier, vol. 41(5), pages 884-896.
    14. John L. Campbell & Ove K. Pedersen, 2007. "Institutional competitiveness in the global economy: Denmark, the United States, and the varieties of capitalism," Regulation & Governance, John Wiley & Sons, vol. 1(3), pages 230-246, September.
    15. Hazwan Haini, 2020. "Examining the relationship between finance, institutions and economic growth: evidence from the ASEAN economies," Economic Change and Restructuring, Springer, vol. 53(4), pages 519-542, November.
    16. Bose, Udichibarna & MacDonald, Ronald & Tsoukas, Serafeim, 2019. "Policy initiatives and firms' access to external finance: Evidence from a panel of emerging Asian economies," Journal of Corporate Finance, Elsevier, vol. 59(C), pages 162-184.
    17. Deakin, Simon & Sarkar, Prabirjit & Siems, Mathias, 2018. "Is There a Relationship Between Shareholder Protection and Stock Market Development?," Journal of Law, Finance, and Accounting, now publishers, vol. 3(1), pages 115-146, May.
    18. Alan Hughes, 2014. "Short-Termism, Impatient Capital and Finance for Manufacturing Innovation in the UK," Working Papers wp457, Centre for Business Research, University of Cambridge.
    19. Chen Liu, 2017. "International Competitiveness and the Fourth Industrial Revolution," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 5(4), pages 111-133.
    20. Ayyagari, Meghana & Demirguc-Kunt, Asli & Maksimovic, Vojislav, 2012. "Financing of firms in developing countries : lessons from research," Policy Research Working Paper Series 6036, The World Bank.

    More about this item

    Keywords

    diversification and hybridization. we also seek to identify the policy implications with respect to the direction of future reform. first; we will present our view on the dispute as to whether the evolution of the enterprise system will converge into one system or whether it will continue to exist in different forms. we will emphasize the fact that the evolution of japanese companies is not considered as simply converging with the american style; because it has not shown the uniformed pattern; rather; it is manifesting a hybrid evolution; the combining of the two different modes of a market-based system and a relationship-based system. second; we will examine the process of the evolution of the enterprise system that commenced in the 1980s and accelerated from the middle of the 1990s; by focusing on the company called the type i hybrid in this report. in doing so; we will concentrate on how corporate governance and internal organizations that are mutually complimentary by rights have evolved into a hybrid structure. third; we will examine whether or not the hybrid-type company that emerged through the evolution process as described above has actually had a significant impact on corporate activities or performance. in this connection; we will present the possibility of the hybrid-type company playing a key role in enhancing the performance of japanese companies. moreover; by using an example of a company choosing m&a; we will show that corporate governance and organizational structures significantly impact on the company's strategic decisions in areas such as m&a. finally; we will summarize the challenges associated with reforms to corporate governance in the future; by focusing on the three different types of japanese companies that currently exist.;
    All these keywords.

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eti:rdpsjp:09017. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: TANIMOTO, Toko (email available below). General contact details of provider: https://edirc.repec.org/data/rietijp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.