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Corporate Restructuring in Japan Part I: Can M‐Form Organization Manage Diverse Businesses?

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  • Hideshi Itoh

Abstract

The purpose of this paper is to examine the recent organizational restructuring in Japan in the framework of organizational economics, assuming that the product/market portfolio of the firm is fixed. How does a firm set about organizing its internal divisions? I first summarize some stylized facts on corporate diversification strategy and multi‐divisional (M‐form) organization in large Japanese firms from different perspectives. I then analyse the problem of choosing an organizational form. In particular, I argue that, precisely because of its related diversification, the multi‐business Japanese firm adopting the M‐form finds it difficult to differentiate its diverse businesses internally.

Suggested Citation

  • Hideshi Itoh, 2003. "Corporate Restructuring in Japan Part I: Can M‐Form Organization Manage Diverse Businesses?," The Japanese Economic Review, Japanese Economic Association, vol. 54(1), pages 49-73, March.
  • Handle: RePEc:bla:jecrev:v:54:y:2003:i:1:p:49-73
    DOI: 10.1111/1468-5876.00245
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    References listed on IDEAS

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    1. Toyohiro Kono, 1984. "Strategy and Structure of Japanese Enterprises," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-17627-4, December.
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    Cited by:

    1. Zhonghua Wu & Andrew Delios, 2009. "The Emergence of Portfolio Restructuring in Japan," Management International Review, Springer, vol. 49(3), pages 313-335, June.
    2. Mari Sako & Gregory Jackson, 2006. "Strategy Meets Institutions: The Transformation of Management-Labor Relations at Deutsche Telekom and Ntt," ILR Review, Cornell University, ILR School, vol. 59(3), pages 347-366, April.
    3. Kangsik Choi, 2022. "Organizational form and multiple exportable goods in export rivalry trade," Manchester School, University of Manchester, vol. 90(5), pages 565-586, September.
    4. Fukui, Yoshitaka & Ushijima, Tatsuo, 2007. "Corporate diversification, performance, and restructuring in the largest Japanese manufacturers," Journal of the Japanese and International Economies, Elsevier, vol. 21(3), pages 303-323, September.
    5. Fukui, Yoshitaka & Ushijima, Tatsuo, 2011. "What drives the profitability of Japanese multi-business corporations? A variance components analysis," Journal of the Japanese and International Economies, Elsevier, vol. 25(2), pages 1-11, June.

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