ABSTRACT
This chapter situates the keiretsu within the existing strategic management and economics of institutions literature on company networks and governance. It addresses the changes of vertical manufacturing keiretsu and highlights structural changes affecting governance modes in Japanese keiretsu. The chapter situates the Japanese organizational structure and then presents a review of the main stages of the change that has affected vertical keiretsu, together with the factors that have contributed to this change. It analyses the evolution of corporate governance and ownership of keiretsu. The chapter illustrates the evolution of keiretsu through the Nissan case study. It assesses the specificities of Japanese corporate governance practices and examines more precisely the effects of the changing Japanese economy on a vertical keiretsu: Nissan Motors. Corporate governance refers to the activities of control and coordination that compose the internal regulation in compliance with external obligations. The corporate governance structure is dynamic, developing in response to country-specific factors and new market conditions.
