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Full-Text Articles in Business
Keirestsu Centrality - Profits And Profit Stability: A Power Dependence Perspective, Lance Eilot Brouthers, Yan Gao, Stuart Napshin
Keirestsu Centrality - Profits And Profit Stability: A Power Dependence Perspective, Lance Eilot Brouthers, Yan Gao, Stuart Napshin
Faculty Articles
Prior studies compare keiretsu member firm and independent firm performance. Here, we use historical and power dependence perspectives to theorize that the Japanese keiretsu system primarily benefits the most central firms. We test this by examining the performance of two types of keiretsu firms (central firms and other member firms) within two types of keiretsu (horizontal and vertical). We hypothesize and find that: (1) central vertical keiretsu firms are more profitable than central horizontal keiretsu firms; (2) central horizontal keiretsu firms have greater profit stability than central vertical keiretsu firms; (3) central vertical keiretsu firms are more profitable than non-central …