Revolutionizing Japanese Corporate Governance

Abstract

A corporation’s governance model is deeply entwined with its business model. In a business where cost and efficiency are of paramount importance, a corporate governance model that tightly coordinates, controls and audits operations is necessary, whereas in a business where knowledge and new value are core, a governance model that accentuates networking among business partners and customers is key. Accordingly, as evident in the revolution in Japanese business and management practices occurring in the last decade, both models are mutually influential and co-evolve with changes in a corporation’s internal and external environments (see Figure 14.1).