By James R. Lincoln

This booklet makes use of quantitative and ancient tips on how to hint the evolution of the japanese economy's enterprise community from the prewar interval to the tip of the century. It addresses no matter if the arguable "keiretsu" firm groupings have outlived their usefulness and are withering away within the face of deregulation, globalization, and industry liberalization. whereas concluding that those relationships are nonetheless valuable to jap enterprise, the booklet additionally notes that they're even more subordinated to the options of person firms than used to be actual of the prewar community economic system.

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Extra resources for Japan's Network Economy: Structure, Persistence, and Change (Structural Analysis in the Social Sciences)

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In this, they said, lies the distinctive “wetness” of Japanese economic relations. It is hard for a Japanese company to tell a long-term supplier that it can offer it no more business. This kimochi (mood, sentiment) rests on personal relations of giri and ninjo (obligation and human feeling). Japan, as Dore suggests, may be an outlier in the degree to which economic exchange is imbued with such cultural norms and sentiments but it is by no means unique in this respect. 23 Podolny and Page (1998), reviewing research on the topic, agree that network organization implies a distinctive set of norms and motives and that these permit a degree of “flexibility and adaptability” in exchange relations that formal contracts do not: To be sure, it is probably true that a “moral community” or “spirit of goodwill” is not a functional necessity for a network form of organization to exist.

The power of Japan’s top politicians is derived from a large complex of intermeshing jinmyaku forged with favours, money, marriage ties and political acumen. The Japanese state has not been very large by any measure. The Ministry of International Trade and Industry (MITI) for decades ran Japan’s international and industrial policy making with a staff of about 2,500 people and a small budget. 5 The image of a powerful state exercising strong guidance runs through much commentary on the post-war Japanese political economy.

Uzzi and Gillespie, 2002). Dore (1983); Gouldner (1960). , through late-night gettogethers) with suppliers’ representatives. Ronald Dore (1983) has argued that the Japanese take this farther than most societies do. ” The trouble with the Japanese is that they have never really caught up with Adam Smith. They don’t believe in the invisible hand. The butcher and the brewer have got to be benevolent. They need to have a conscience about the quality of the meat and the beer they supply. They need to care.

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