THE GENEALOGICAL STRUCTURE OF JAPANESE FIRMS - PARENT-SUBSIDIARY RELATIONSHIPS

We analyze the genealogical structure of large Japanese firms, with pa rticular emphasis on the relationship between parent firms and spinoff subsidiaries. The wide use of spinoffs and subsidiaries in Japan prov ides for flexible organizational mutations that appear to facilitate i ncreased competitiveness and offer the opportunity to obtain benefits through a deliberate separation of core competencies. We discuss a con ceptual framework for the spinoff arrangement, the results of an explo ratory empirical analysis of the relationship between parent and subsi diary organizations, and implications of the use of this organizationa l structure. We suggest the importance of a consideration of the gneal ogical aspects of large Japanese firms in strategy research.