Institutional Complementarity and Firm Performance: The Case of Japan

• Main Author: Yoshikawa, Toru
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 1997
• Subjects: Business Law, Public Responsibility, and Ethics; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/3019
• Institution: Singapore Management University

The major premise of the article is that economic organizations of a nation can succeed in market competition only if there are institutional completmentarities,because such complementarities enhance effective functioning of each institucional in the nation and thus,produce the positive economic effects. The article applies this premise to case of Japan and examines the Japanese institutions and their complementarities,especially those that support the main bank system and the employment system.The main argument of the article is that the supeioreconomic performance of the industrial system that has institucional changes.The emerging gaps between institutions can have negative effects on the performance of Japanese firms.