Disaggregating the Group Effect: Vertical and Horizontal Keiretsu in Changing Economic Periods

This paper examines the evolution of the strength of group affiliation among members of horizontal and vertical keiretsu in Japan over two time periods: 1991-1996, and 1997-2001. Our findings indicate that ties were considerably more stable in the later time period. Using multinomial logistic regres...

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Main Authors: YOSHIKAWA, Toru, Dow, Sandra, McGuire, Jean
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2006
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Online Access:https://ink.library.smu.edu.sg/lkcsb_research/179
https://aib.msu.edu/events/2006/AIB2006_Proceedings.pdf
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spelling sg-smu-ink.lkcsb_research-11782010-09-23T06:24:04Z Disaggregating the Group Effect: Vertical and Horizontal Keiretsu in Changing Economic Periods YOSHIKAWA, Toru Dow, Sandra McGuire, Jean This paper examines the evolution of the strength of group affiliation among members of horizontal and vertical keiretsu in Japan over two time periods: 1991-1996, and 1997-2001. Our findings indicate that ties were considerably more stable in the later time period. Using multinomial logistic regression, we show that both vertical and horizontal firms undergoing increasing, decreasing, or exhibiting tie strength stability had performance and "financial tie" characteristics which significantly predicted membership in one of these groups. Firms which increased their keiretsu affiliations over time are characterized more by evolving financial ties rather than distinctive performance patterns. Vertical and horizontal firms responded to heightened foreign investment by strengthening ties with other stakeholder groups – significant shareholders in the case of vertical keiretsu firms; and creditor ties in the case of horizontal keiretsu firms. Both vertical and horizontal firms which loosened their keiretsu affiliations over the period appear to have done so without much disruption to equity ties. Rather, performance characteristics are the most important elements distinguishing "decreasing horizontal" and "decreasing vertical" firms. 2006-06-23T07:00:00Z text https://ink.library.smu.edu.sg/lkcsb_research/179 https://aib.msu.edu/events/2006/AIB2006_Proceedings.pdf Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Strategic Management Policy
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Strategic Management Policy
spellingShingle Strategic Management Policy
YOSHIKAWA, Toru
Dow, Sandra
McGuire, Jean
Disaggregating the Group Effect: Vertical and Horizontal Keiretsu in Changing Economic Periods
description This paper examines the evolution of the strength of group affiliation among members of horizontal and vertical keiretsu in Japan over two time periods: 1991-1996, and 1997-2001. Our findings indicate that ties were considerably more stable in the later time period. Using multinomial logistic regression, we show that both vertical and horizontal firms undergoing increasing, decreasing, or exhibiting tie strength stability had performance and "financial tie" characteristics which significantly predicted membership in one of these groups. Firms which increased their keiretsu affiliations over time are characterized more by evolving financial ties rather than distinctive performance patterns. Vertical and horizontal firms responded to heightened foreign investment by strengthening ties with other stakeholder groups – significant shareholders in the case of vertical keiretsu firms; and creditor ties in the case of horizontal keiretsu firms. Both vertical and horizontal firms which loosened their keiretsu affiliations over the period appear to have done so without much disruption to equity ties. Rather, performance characteristics are the most important elements distinguishing "decreasing horizontal" and "decreasing vertical" firms.
format text
author YOSHIKAWA, Toru
Dow, Sandra
McGuire, Jean
author_facet YOSHIKAWA, Toru
Dow, Sandra
McGuire, Jean
author_sort YOSHIKAWA, Toru
title Disaggregating the Group Effect: Vertical and Horizontal Keiretsu in Changing Economic Periods
title_short Disaggregating the Group Effect: Vertical and Horizontal Keiretsu in Changing Economic Periods
title_full Disaggregating the Group Effect: Vertical and Horizontal Keiretsu in Changing Economic Periods
title_fullStr Disaggregating the Group Effect: Vertical and Horizontal Keiretsu in Changing Economic Periods
title_full_unstemmed Disaggregating the Group Effect: Vertical and Horizontal Keiretsu in Changing Economic Periods
title_sort disaggregating the group effect: vertical and horizontal keiretsu in changing economic periods
publisher Institutional Knowledge at Singapore Management University
publishDate 2006
url https://ink.library.smu.edu.sg/lkcsb_research/179
https://aib.msu.edu/events/2006/AIB2006_Proceedings.pdf
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