SOSC 300 K.ppt

SOSC 300 K Lecture Note 6 Business Networks Gary G. Hamilton and Nicole Woolsey Biggart, 1988, “Market, Culture and Authority: A Comparative Analysis of Management and Organization in the Far East” How can this article help us to better understand Hong Kong’s post-war state/business relationship? Patterns of industrial organization in T, J, SK in the 1980s (comparison) (1) Similarities among the two economies from the 1980s: 1. Export-oriented economy; 2. Rapid economic growth after recovering from the destruction of the W. W. II.; 3. U. S. economic aid and direction after the war; 4. None of them has rich natural resources (minerals, land) 5. Similar cultural influences (Confucian and Buddhist traditions) Patterns of industrial organization in T, J, SK in the 1980s (comparison) (2) An overview of major patterns of industrial organizations in J, SK and T: Japan: 1) corporate groups; 2) vertical linkages between major manufacturing and their subsidiaries South Korea: Chaebol [?? ; 財閥] Taiwan: family firm and the business group The Japanese Pattern of Industrial Organization (1) Two interrelated networks of firms: 1. Linkages among large firms (“relational contracting between equals” in Dore’s terms): These networks are normally groups of firms in unrelated businesses that are joined together by central banks or by trading companies. Most of them were developed from the pre-war zaibatsu (財閥). “Relational contracting”: the stability of contracting relationship. Both sides recognize an obligation to try to maintain it. Zaibatsu: any of the large capitalist enterprises of Japan before World War II, usually organized around a single family. One zaibatsu might operate companies in nearly all important areas of economic activity. They transformed into Kigyo shudan (corporate groups) after the war. Notable zaibatus included present-day Misui (三井), Misubishi (三菱) corporate groups. The Japanese Pattern of Industrial Organization (2) 2. Connection among small- and medium-s