Hierarchical Network Governance: An Examination of Keiretsu Networks
Date
2011
Authors
Ito, T.
Medlin, C.
Editors
Aurifeille, J.
Medlin, C.
Tisdell, C.
Lafuente, J.
Aluja, J.
Medlin, C.
Tisdell, C.
Lafuente, J.
Aluja, J.
Advisors
Journal Title
Journal ISSN
Volume Title
Type:
Book chapter
Citation
Globalisation, Governance and Ethics: New Managerial and Economic Insights, 2011 / Aurifeille, J., Medlin, C., Tisdell, C., Lafuente, J., Aluja, J. (ed./s), pp.125-142
Statement of Responsibility
Takao Ito and Christopher John Medlin
Conference Name
Abstract
This chapter elaborates network governance on the basis of information and influence. A network structure is defined in terms of boundaries and differentiation of interdependencies between firms. Two hypotheses allow examination of the relative role of relational versus hierarchical governance, through the mechanisms of information sharing versus influence respectively. In an empirical examination of the Keiretsu networks of Toyota and Mazda, we find a strong correlation between network centrality, measured as out-closeness, and firm profitability. This result suggests that influence proceeds mainly in the direction of share ownership and that these networks are hierarchical. The final sections of the chapter discuss the limitations of the research and future research. © 2010 Nova Science Publishers, Inc. All rights reserved.