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

• Main Authors: Dow, Sandra, McGuire, Jean, YOSHIKAWA, Toru
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2011
• Subjects: Horizontal keiretsu; Vertical keiretsu; Economic change; Regulatory change; Asian Studies; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/3131; https://doi.org/10.1007/s10490-009-9160-5
• Institution: Singapore Management University

This paper examines the evolution of keiretsu group affiliation among members of horizontal and verticalkeiretsu in Japan over two time periods: 1992–1997, and 1997–2002. We found that ties were more stable in the later time period and therefore restricted our empirical analysis to the 1992–1997 period. We also found differences in the response of vertically and horizontally linked groups to economic downturn and capital market change—vertically linked groups weakened their ties while horizontally linked groups showed more stability.