Institutional changes and the emergence of electronic transactions in the Japanese manufacturing industry: beyond the dichotomy of technical efficiency and social legitimacy in institutions

Information and communication technology (ICT) stimulates electronic transactions, particularly with an increase in the popularity of the Internet. Much of discussion has advocated the technical openness of electronic transactions that constitute the base of an “electronic market.” The electronic market is expected to reduce other incurred costs and the dissemination of asymmetric information; it is also expected to increase innovation and be more adaptable to environmental changes. Contrary to these expectations, although many electronic markets were established in the 1990s, most of these are now closed. Some strongly contend that an electronic transaction should not correspond with keiretsu – an institution of Japanese manufacturing firms.