Definition
Keiretsu is a group of companies that are intertwined in terms of business relationships and stock ownership. An example of an informal business group is the entrepreneur’s association. During the second half of the twentieth century, the keiretsu retained its grip on the Japanese economy.
What is ‘Keiretsu’
A loose agglomeration of businesses that share one or more common denominators is referred to as a kaizen in Japanese. It is not necessary for the firms to own shares in each other’s businesses.
Explaining ‘Keiretsu’
This phrase has been in the headlines from time to time, particularly when it comes to discussions about Silicon Valley. One such example is the strong connection that exists between AOL and Sun Micro. Although the two companies are not shareholders in one other, they collaborate on a variety of initiatives.
Keiretsu FAQ
What is a keiretsu system?
Keiretsu is a Japanese word that refers to a corporate network that is formed of several firms that have close relationships with one another and in some instances own small equity holdings in one another while being operationally independent.
Further Reading
- The governance structure of the Japanese financial keiretsu – www.sciencedirect.com [PDF]
- Shareholding in the keiretsu, Japan’s financial groups – www.jstor.org [PDF]
- Business networks in postwar Japan: whither the keiretsu? – www.oxfordhandbooks.com [PDF]
- The fable of the keiretsu – onlinelibrary.wiley.com [PDF]
- Propping and tunneling: Empirical evidence from Japanese keiretsu – www.sciencedirect.com [PDF]
- Keiretsu networks and corporate performance in Japan – www.jstor.org [PDF]
- Taxes, keiretsu affiliation, and income shifting – www.sciencedirect.com [PDF]
- The effect of market returns, interest rates, and exchange rates on the stock returns of Japanese horizontal keiretsu financial firms – www.sciencedirect.com [PDF]
- The persistence and implications of Japanese keiretsu organization – link.springer.com [PDF]
