„Traditionelle Unternehmen haben ausgedient, die Zeit der Netzwerke bricht an.“ – Ken Everett, Australian manager
Thinking about social networks one might first think about times long ago when hierarchical structures were a target thing. In those days people were more related on each other. As there has been no social solution in cases of illness or unemployment, for instance, the family was the only solution to help one in such crises. Furthermore the people were living together in tribes , where all generations came together, so the group-feeling was very strong.
Nowadays people, especially in the Western cultures, try to create a system of individuality and independence: children should be reared in a way that they are become independent very early and more generations families living in same house together are hardly to find.
But of course there are still areas where networks play an important role. Looking in the internet, for instance, one can find an immense number of networks and communities.
Although individuality is quite important, furthermore networks play a more and more important role in the business world, as researchers found out that economy is a compact netting of social networks. (Krupp 1996: 290)
But Nevertheless, the role of social networks differs between the cultures. In Japan, for instance, business networks have existed for hundreds of years and play an essential role, while Western cultures have just started to discover their importance in business.
As the Japanese economy is playing an increasingly important role as a leader and economic superpower in the world (second largest economy on the globe) (De Mente 2005: 140), one may assume that by copying the Japanese networks, one can also copy their success.
By looking at these Japanese networks and analysing them, this essay will try to prove, that the Western cultures can learn and benefit from these networks.
To make the origin of the Japanese networks understandable to the reader the second chapter is going to look at the main aspects of the Japanese society. The third chapter looks at the networks in Japan and their role in Japanese business, starting with the first form Zaibatsu, from its beginning until the Second World War.
Table of Contents
1. INTRODUCTION
2. THE JAPANESE SOCIETY
3. JAPANESE NETWORKS
3.1. Mitsui-Zaibatsu
3.2. Keiretsu
3.2.1. Horizontal Keiretsu
3.2.2. Vertical Keiretsu
3.2.2.1. Production Keiretsu (seisan keiretsu)
3.2.2.2. Distribution Keiretsu (ryûtsû keiretsu)
3.3. Compare: Zaibatsu – Keiretsu
3.4. Advantages and Disadvantages of Keiretsu
4. Conclusion
Objectives and Topics
This paper examines the evolution and influence of Japanese business networks, specifically analyzing the transition from the historical Zaibatsu systems to modern Keiretsu structures within the context of Japanese society and its unique cultural values.
- The influence of group-oriented culture on Japanese business practices.
- Historical analysis of the Mitsui-Zaibatsu conglomerate.
- Structural differences between Horizontal and Vertical Keiretsu.
- Comparative study between historical Zaibatsu and modern Keiretsu forms.
- Evaluation of the economic impact and global competitiveness of these network systems.
Excerpt from the Book
3.1. Mitsui-Zaibatsu
Powerful arrangements and close groups are characteristic for Japan’s history. The first form of powerful close networking systems is called Zaibatsu. Although the structures have strongly changed during the centuries, a look at the past can help to understand the very complex structure of the Japanese networks in the present-time. (Wagner 1997: 42)
The translation of the term Zaibatsu is “wealthy clique” or “conglomerate”. The expression Zaibatsu consist the two Japanese scripts “zai” (estate) and “batsu” (group). (Voack 1962:15)
One of the first and most relevant Zaibatsu was founded by the family Mitsui in the 16th century. Sokubei Mitsui was a Samurai who first brewed rice-wine and later started to give customer loans. (Wade 2004)
After he passed away, his wife took care of the business. Her mission statement was economy. Even her eight children were educated very economically. When two of her oldest sons, Toshitsugu and Shigetoshi, were old enough she sent them to Tokyo (which was called Edo by this time). In 1634 they opened a textile store there with the capital of their mother. The shop was successful and the third son, Takatoshi, joined them. Because of his outstanding business-talent
Chapter Summary
1. INTRODUCTION: Outlines the historical importance of networks in human society and introduces the role of business networks in Japan.
2. THE JAPANESE SOCIETY: Explores the cultural and psychological characteristics of the Japanese people, emphasizing group orientation, harmony, and perfectionism.
3. JAPANESE NETWORKS: Investigates the structural development of business conglomerates from the historical Zaibatsu to modern Keiretsu systems.
4. Conclusion: Summarizes the findings and discusses the potential for Western cultures to benefit from Japanese networking principles while balancing them with individualistic values.
Keywords
Japan, Business Networks, Keiretsu, Zaibatsu, Japanese Society, Corporate Culture, Group Orientation, Mitsui, Economic Development, Horizontal Keiretsu, Vertical Keiretsu, Industrial Organization, Globalization, Corporate Strategy, Management.
Frequently Asked Questions
What is the core subject of this paper?
The paper explores how social networks, specifically business conglomerates like Zaibatsu and Keiretsu, have shaped the Japanese economy and business landscape.
What are the primary thematic fields?
The study focuses on Japanese cultural sociology, the historical development of business groups, and the structural differences between pre- and post-war economic networks.
What is the main research question?
The paper aims to analyze how Japanese networks have evolved over time and whether Western cultures can learn from or benefit from these unique business structures.
Which scientific method is utilized?
The research is based on a qualitative literature review, analyzing historical and management-related academic sources to evaluate the evolution of corporate structures.
What topics are covered in the main body?
The main body covers the cultural foundations of Japan, the history of the Mitsui-Zaibatsu, the typology of Keiretsu (horizontal and vertical), and a comparative analysis of these network forms.
Which keywords best characterize this work?
The work is characterized by terms such as Keiretsu, Zaibatsu, Group Orientation, Corporate Strategy, and Japanese Business History.
How does the "One-Set Principle" affect the horizontal Keiretsu?
It ensures diversification within the group by guaranteeing that only one company exists in each specific market sector, thereby avoiding internal competition.
What role do the "Presidents-Clubs" play in modern Keiretsu?
They serve as informal coordination forums for managers to exchange information and strengthen social relations, helping to prevent conflicts within the group.
- Quote paper
- Katharina Niciejewska (Author), 2007, The influence of social networks in japanese business – Keiretsu as a japanese network, Munich, GRIN Verlag, https://www.grin.com/document/73421
