From being the last country in the world to open its doors to global trade in the 1850s to becoming the second industrialized nation in the 1960s, Japan has experienced impressive economic and social development over the last two centuries. In the last three decades, however, it became entrenched in a long phase of economic stagnation, dropping from second to third place in the global economy, having been overtaken by China in 2010. Inspired by the recent works on the history of capitalism, this history of business shows that the Japanese company was not the product of a unique national culture. Japanese capitalism was largely shaped by a political, economic, and institutional environment, which offered a variety of new opportunities to entrepreneurs, who also played a central role in the process of change. Rural capitalism that formed during the period of national seclusion shifted to industrial capitalism after the opening of the nation to global trade: this form of capitalism was close to those observed in other late industrializing countries, and was characterized by the monopolistic domination of large business groups or zaibatsu during the interwar years. The Second World War saw the emergence of wartime capitalism with the central government as the dominant actor in the economy, and, after 1945, the need to reconstruct the country and catch-up with advanced Western economies gave birth to a new form of capitalism based on a cooperative relationship between business and the state: communitarian capitalism, more broadly known as the Japanese Business System. The liberalization and deregulation brought new changes in the business system, marked by the emergence of financial capitalism in the 1980s and 1990s.

Inspired by the recent works on the history of capitalism, this history of business shows that the Japanese company was not the product of a unique national culture.

After two decades of reinvention, Japanese companies are re-emerging as major players in the new digital economy. They have responded to the rise of China and new global competition by moving upstream into critical deep-tech inputs and advanced materials and components. This new "aggregate niche strategy" has made Japan the technology anchor for many global supply chains. Although the end products do not carry a "Japan Inside" label, Japan plays a pivotal role in our everyday lives across many critical industries. This book is an in-depth exploration of current Japanese business strategies that make Japan the world's third-largest economy and an economic leader in Asia. To accomplish their reinvention, Japan's largest companies are building new processes of breakthrough innovation. Central to this book is how they are addressing the necessary changes in organizational design, internal management processes, employment, and corporate governance. Because Japan values social stability and economic equality, this reinvention is happening slowly and methodically, and has gone largely unnoticed by Western observers. Yet, Japan's more balanced model of "caring capitalism" is both competitive and transformative, and more socially responsible than the unbridled growth approach of the United States.

The current world economic crisis and its impact on Japanese capitalism contains many paradoxes. After the historical conditions of continuous growth under US economic hegemony broke down, generating a global economic crisis from the beginning of the 1970s, the restructuring of capitalism through the 'information revolution' seems paradoxically to be causing a historical reverse in social conditions of over a century. Although the Japanese economy is often regarded as an exceptionally successful economy it is not immune from the crisis. The process of restrengthening Japanese competitive power has weakened the social position of Japanese workers. This book offers a stimulating analysis of the dynamics of the world and Japanese economy. The author's previous book The Basic Theory of Capitalism gives a solid theoretical basis for the treatment of the current crisis in this present study.

Business practices in Japan inspire fierce and even acrimonious debate, especially when they are compared to American practices. This book attempts to explain the remarkable economic success of Japan in the postwar period—a success it is crucial for us to understand in a time marked by controversial trade imbalances and concerns over competitive industrial performance. Gerlach focuses on what he calls the intercorporate alliance, the innovative and increasingly pervasive practice of bringing together a cluster of affiliated companies that extends across a broad range of markets. The best known of these alliances are the keiretsu, or enterprise groups, which include both diversified families of firms located around major banks and trading companies and vertical families of suppliers and distributors linked to prominent manufacturers in the automobile, electronics, and other industries. In providing a key link between isolated local firms and extended international markets, the intercorporate alliance has had profound effects on the industrial and social organization of Japanese businesses. Gerlach casts his net widely. He not only provides a rigorous analysis of intercorporate capitalism in Japan, making useful distinctions between Japanese and American practices, but he also develops a broad theoretical context for understanding Japan's business networks. Addressing economists, sociologists, and other social scientists, he argues that the intercorporate alliance is as much a result of overlapping political, economic, and social forces as are such traditional Western economic institutions as the public corporation and the stock market. Most compellingly, Alliance Capitalism raises important questions about the best method of exchange in any economy. It identifies situations where cooperation among companies is an effective way of channeling corporate activities in a world marked by complexity and rapid change, and considers in detail alternatives to hostile takeovers and other characteristic features of American capitalism. The book also points to the broader challenges facing Japan and its trading partners as they seek to coordinate their distinctive forms of economic organization. This title is part of UC Press's Voices Revived program, which commemorates University of California Press's mission to seek out and cultivate the brightest minds and give them voice, reach, and impact. Drawing on a backlist dating to 1893, Voices Revived makes high-quality, peer-reviewed scholarship accessible once again using print-on-demand technology. This title was originally published in 1993. Business practices in Japan inspire fierce and even acrimonious debate, especially when they are compared to American practices. This book attempts to explain the remarkable economic success of Japan in the postwar period—a success it is crucial for us to

Shibusawa Eiichi (1840–1931) was a Japanese banker and industrialist who spearheaded the modernization of Japanese industry and finance during the Meji Restoration. He founded the first modern bank in Japan and his reforms introduced double entry accounting and joint-stock corporations to the Japanese economy. Today, he is known as the “father of Japanese capitalism.” Ethical Capitalism is a volume of essays that tackles the thought, work, and legacy of Shibusawa Eiichi and offers international comparisons with the Japanese experience. Eiichi advocated for gapponshugi, a principle that emphasized developing the right business, with the right people, in service to the public good. The contributors build a historical perspective on morality and ethics in the business world that, unlike corporate social responsibility, concentrates on the morality inside firms, industries, and private-public partnerships. Ethical Capitalism is not only a timely work; it is a necessary work, in a rapidly globalizing world where deregulation and lack of oversight risk repeating the financial, environmental, and social catastrophes of the past.

First published in 1991. In general, Japan's economic system is viewed as being capitalism, and there seems to be no room for doubting otherwise. If one glances at the many subsystems that form the Japanese economy's foundation, for example, such as private ownership of property, joint stock companies and well-developed markets, one is forced to conclude that yes, indeed, Japan belongs to the group of highly developed capitalist nations. Although not widely recognized yet, a new economic system has developed and been nurtured in Japan inside a shell of capitalism. The new system differs greatly from traditional capitalism, but that does not mean to say it has drawn close to socialism. Nor can the newness of this system be understood by viewing it as depending principally on either market or planning principles, or on the two in combination. This book discusses the new corporate system in specific terms, explaining how it differs from the system of orthodox capitalist corporations, in being both more progressive and more fitting for meeting the various conditions of contemporary industrial society. It also explains the circumstances, in the context of the new corporate system, that brought forth powerful corporations for which it is difficult to find comparisons in other countries.