enterprise group

A keiretsu was a powerful alliance of Japanese businesses, dominant in the Japanese economy from the 1950s to the early 2000s. These groups were characterized by cross-shareholding and long-term relationships between member companies, forming an intricate network linking banks, manufacturers, suppliers, and distributors.12

Keiretsu could be horizontally integrated, with core firms linked by capital and transactional relationships, or vertically integrated, with core companies tied to numerous subcontracting firms. Six major keiretsu, known as the "Big Six," included Mitsui, Mitsubishi, and Sumitomo. These groups played a significant role in Japan's postwar economic growth by collaborating on long-range strategies and managing risks. However, the keiretsu system began to weaken in the 1990s due to changes in the financial environment.13