The keiretsu structuring of assembler-supplier relations historically enabled Japanese auto assem... more The keiretsu structuring of assembler-supplier relations historically enabled Japanese auto assemblers to remain lean and flexible while enjoying a level of control over supply akin to that of vertical integration. Yet currently there is much talk of breakdowns in keiretsu networks. This paper examines some recent developments in Japanese parts-supply keiretsu. We argue that keiretsu relationships are drifting from “hybrid” or “network” (i.e., keiretsu) governance modes toward the extremes of arms-length contracting and top-down administration. These changes are best understood through a combination of transaction cost and learning perspectives on alliance. Consistent with transaction-cost economics, the shift in purchase-supply relationships can be traced to changes in the nature of parts transactions and keiretsu-governance structures. A learning perspective on alliance complements and extends transaction-cost theory, providing additional explanation of the sources of change and t...
Industrial Relations: A Journal of Economy and Society, 1995
From a series of qualitative interviews with Japanese managers and German managers and workers in... more From a series of qualitative interviews with Japanese managers and German managers and workers in thirty‐one Japanese‐owned companies in the Düsseldorf region of western Germany, this article discusses differences in cultural patterns and organizational styles between the German and Japanese employees and the problems these pose for communication, cooperation, and morale. First, we deal with cultural contrasts: language issues, interpersonal styles (personability and politeness), and norms regarding the taking of responsibility. Second, we examine the impact on cross‐nationality relations of established organizational practice: for example, German specialism vs. Japanese generalism; direct and vertical vs. indirect and incremental decision making. We also discuss efforts by these firms to find compromise systems that would meet the needs and interests of both sides. The third focus is the reactions of Japanese companies in North Rhine‐Westphalia to German unions, works councils, and...
The Japanese and the US business presses are full of articles about change in Japanese business p... more The Japanese and the US business presses are full of articles about change in Japanese business practices—in particular, changes in relationships between customers and suppliers. Are closely knit networks of customers and suppliers—the keiretsu—breaking down? We argue that while there is no sign of a dramatic, abrupt breakdown in the system, Japanese automakers are beginning to rethink the make versus buy decision. Automakers are taking firmer control over some transactions while allowing others to become more arms-length. These changes are traceable to some basic changes in the transactions themselves—increased power on the part of suppliers due to changes in technology and globalization, and decreased need for customer-specific investments due to standardization. Furthermore, a sense of economic crisis has caused Japanese firms to question the value of certain business practices, and has made it easier for automakers to rethink their contracting relationships.
The Fable of the Keiretsu: Urban Legends of the Japanese Economy. By Yoshiro Miwa and J. Mark Ramsayer. Chicago: University of Chicago Press, 2006. xiii + 181 pp. Figures, tables, bibliography, notes, index. Cloth, $32.50. ISBN: 0-226-53270-4
The word marugakae literally means an "all encompassing embrace. " ...It describes the relationsh... more The word marugakae literally means an "all encompassing embrace. " ...It describes the relationship between firms closely allied with one another. (It) can lead to substantial .. .progress when there is some combination of moderate ... uncertainty and pace of change. Yet when there is ... high uncertainty,
Purchase-supply relations in Japanese electronics are less close and cooperative than in the auto... more Purchase-supply relations in Japanese electronics are less close and cooperative than in the automobile industry and involve less formal knowledge sharing. Our interviews with a number of major Japanese electronics firms reveal that suppliers are less involved in manufacturers' product development processes and are brought in at later stages. However, too much attention to such formal knowledge sharing events may blind one to patterns of cross-firm learning and sharing that transfer the most tacit kinds of organizational knowledge, such as the normative and affective elements of a corporate culture. Using interview information, we discuss the phenomenon of shukko (employee transfers) among Japanese companies. Shukko is often viewed as a downsizing device, although firms claim they do it mostly to exchange knowledge with partners. Our view is that it serves both purposes. However, the volume of shukko varies with the electronics firm. It is most common where customers and suppliers are bound to one another in equity and other "keiretsu" relationships. Shukko is an effective mechanism of cross-firm socialization, so we might expect that firms that shukko extensively are also more likely to develop network-wide cultures of obligation and reciprocity. An example supporting that hypothesis is "Kigyo Denki," our pseudonym for a large, old-line electronics company with strong ties to one of Japan's "big-six" horizontal keiretsu groups. However, some companies, such as Matsushita, have a corporate culture that appears to coordinate and motivate suppliers even in the absence of shukko and other keiretsu ties.
This paper provides an overview and interpretive analysis of the Japanese strategic alliance proc... more This paper provides an overview and interpretive analysis of the Japanese strategic alliance process. Both international and domestic alliances are considered, although the emphasis is on domestic partnerships. I argue that the domestic Japanese economy is "underallianced" relative to Japanese firms' extensive involvement in partnerships with foreign firms. This is particularly true if government-sponsored consortia and keiretsu-based tie-ups are excluded. Japanese companies appear, for a variety of institutional and cultural reasons, to have had some difficulty partnering with strangers and competitors and that has led to the formation of fewer synergistic and otherwise constructive intra-country cooperation arrangements than corporate Japan arguably needs. That pattern is changing, however, and there is evidence that the rate of intra-country alliances among Japanese firms is accelerating, particularly when the focus of the alliance is technology and innovation.
Work and friendship ties in organizations: A comparative analysis of relation …
Administrative Science Quarterly, 1979
We are indebted to Joseph Galaskiewicz and several anonymous ASQ reviewers for critical readings ... more We are indebted to Joseph Galaskiewicz and several anonymous ASQ reviewers for critical readings of earlier drafts. This paper was presented at the Ninth World Congress, International Sociological As- sociation, Uppsala, Sweden, August 1978. 1 Perhaps the key "alternative strategy" we ...
The keiretsu structuring of assembler-supplier relations historically enabled Japanese auto assem... more The keiretsu structuring of assembler-supplier relations historically enabled Japanese auto assemblers to remain lean and flexible while enjoying a level of control over supply akin to that of vertical integration. Yet currently there is much talk of breakdowns in keiretsu networks. This paper examines some recent developments in Japanese parts-supply keiretsu. We argue that keiretsu relationships are drifting from “hybrid” or “network” (i.e., keiretsu) governance modes toward the extremes of arms-length contracting and top-down administration. These changes are best understood through a combination of transaction cost and learning perspectives on alliance. Consistent with transaction-cost economics, the shift in purchase-supply relationships can be traced to changes in the nature of parts transactions and keiretsu-governance structures. A learning perspective on alliance complements and extends transaction-cost theory, providing additional explanation of the sources of change and t...
Industrial Relations: A Journal of Economy and Society, 1995
From a series of qualitative interviews with Japanese managers and German managers and workers in... more From a series of qualitative interviews with Japanese managers and German managers and workers in thirty‐one Japanese‐owned companies in the Düsseldorf region of western Germany, this article discusses differences in cultural patterns and organizational styles between the German and Japanese employees and the problems these pose for communication, cooperation, and morale. First, we deal with cultural contrasts: language issues, interpersonal styles (personability and politeness), and norms regarding the taking of responsibility. Second, we examine the impact on cross‐nationality relations of established organizational practice: for example, German specialism vs. Japanese generalism; direct and vertical vs. indirect and incremental decision making. We also discuss efforts by these firms to find compromise systems that would meet the needs and interests of both sides. The third focus is the reactions of Japanese companies in North Rhine‐Westphalia to German unions, works councils, and...
The Japanese and the US business presses are full of articles about change in Japanese business p... more The Japanese and the US business presses are full of articles about change in Japanese business practices—in particular, changes in relationships between customers and suppliers. Are closely knit networks of customers and suppliers—the keiretsu—breaking down? We argue that while there is no sign of a dramatic, abrupt breakdown in the system, Japanese automakers are beginning to rethink the make versus buy decision. Automakers are taking firmer control over some transactions while allowing others to become more arms-length. These changes are traceable to some basic changes in the transactions themselves—increased power on the part of suppliers due to changes in technology and globalization, and decreased need for customer-specific investments due to standardization. Furthermore, a sense of economic crisis has caused Japanese firms to question the value of certain business practices, and has made it easier for automakers to rethink their contracting relationships.
The Fable of the Keiretsu: Urban Legends of the Japanese Economy. By Yoshiro Miwa and J. Mark Ramsayer. Chicago: University of Chicago Press, 2006. xiii + 181 pp. Figures, tables, bibliography, notes, index. Cloth, $32.50. ISBN: 0-226-53270-4
The word marugakae literally means an "all encompassing embrace. " ...It describes the relationsh... more The word marugakae literally means an "all encompassing embrace. " ...It describes the relationship between firms closely allied with one another. (It) can lead to substantial .. .progress when there is some combination of moderate ... uncertainty and pace of change. Yet when there is ... high uncertainty,
Purchase-supply relations in Japanese electronics are less close and cooperative than in the auto... more Purchase-supply relations in Japanese electronics are less close and cooperative than in the automobile industry and involve less formal knowledge sharing. Our interviews with a number of major Japanese electronics firms reveal that suppliers are less involved in manufacturers' product development processes and are brought in at later stages. However, too much attention to such formal knowledge sharing events may blind one to patterns of cross-firm learning and sharing that transfer the most tacit kinds of organizational knowledge, such as the normative and affective elements of a corporate culture. Using interview information, we discuss the phenomenon of shukko (employee transfers) among Japanese companies. Shukko is often viewed as a downsizing device, although firms claim they do it mostly to exchange knowledge with partners. Our view is that it serves both purposes. However, the volume of shukko varies with the electronics firm. It is most common where customers and suppliers are bound to one another in equity and other "keiretsu" relationships. Shukko is an effective mechanism of cross-firm socialization, so we might expect that firms that shukko extensively are also more likely to develop network-wide cultures of obligation and reciprocity. An example supporting that hypothesis is "Kigyo Denki," our pseudonym for a large, old-line electronics company with strong ties to one of Japan's "big-six" horizontal keiretsu groups. However, some companies, such as Matsushita, have a corporate culture that appears to coordinate and motivate suppliers even in the absence of shukko and other keiretsu ties.
This paper provides an overview and interpretive analysis of the Japanese strategic alliance proc... more This paper provides an overview and interpretive analysis of the Japanese strategic alliance process. Both international and domestic alliances are considered, although the emphasis is on domestic partnerships. I argue that the domestic Japanese economy is "underallianced" relative to Japanese firms' extensive involvement in partnerships with foreign firms. This is particularly true if government-sponsored consortia and keiretsu-based tie-ups are excluded. Japanese companies appear, for a variety of institutional and cultural reasons, to have had some difficulty partnering with strangers and competitors and that has led to the formation of fewer synergistic and otherwise constructive intra-country cooperation arrangements than corporate Japan arguably needs. That pattern is changing, however, and there is evidence that the rate of intra-country alliances among Japanese firms is accelerating, particularly when the focus of the alliance is technology and innovation.
Work and friendship ties in organizations: A comparative analysis of relation …
Administrative Science Quarterly, 1979
We are indebted to Joseph Galaskiewicz and several anonymous ASQ reviewers for critical readings ... more We are indebted to Joseph Galaskiewicz and several anonymous ASQ reviewers for critical readings of earlier drafts. This paper was presented at the Ninth World Congress, International Sociological As- sociation, Uppsala, Sweden, August 1978. 1 Perhaps the key "alternative strategy" we ...
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Papers by James Lincoln