Conversely, while the practices of long-term subcontracting relationships, lifetime employment, and emphasis on generalists, job rotation, and vertical and horizontal keiretsu
facilitate organized technology fusion, they are inimical to spontaneous technology fusion" (p.
The President Council membership of the six major corporate groups was used to identify horizontal keiretsu
11) Horizontal keiretsu
are groups of firms across a wide range of industries, typically centered around a main bank that owns significant shares in these firms.
This corporate structure is known as the financial or horizontal keiretsu.
This structure, known as financial or horizontal keiretsu, produces a group of firms centered on affiliated banks and financial institutions (Hoshi, Kashyap, and Scharfstein, 1990b).
may usually be comprised of several diverse industries such as commercial banks, trust banking, life insurance, and trading company.
Toyo-Keizai's Keiretsu Soran was used to classify firms into vertical keiretsu, horizontal keiretsu
, and independent companies.
The horizontal keiretsu
are deeply involved in services such as banking, insurance, transport and trading.
Companies in the horizontal keiretsu
are more often unrelated, with looser supplier-customer relations.
l0 Consistent with Weinstein and Yafeh (1995) and Wu and Xu (2005), firms are classified as being affiliated with a keiretsu if they are members of the six largest horizontal keiretsu
groups, namely, DKB, Fuyo, Mitsubishi, Mitsui, Sanwa, and Sumitomo.
Constand, 2000, "Ownership Structure and Performance of Japanese Firms: Horizontal Keiretsu
, Vertical Keiretsu, and Independents," Review of Pacific Basin Financial Markets and Policies 3, 535-556.
There are two types of keiretsu: i) horizontal keiretsu
and ii) vertical keiretsu.