Abstract
This chapter presents compelling evidence that challenges the notion of Japan aligning with neoliberal management thinking, thereby questioning the existence of a global management elite. Through life-course analysis, it is observed that there is a minimal representation of managers with academic backgrounds in economics or business administration in Japan. The data further underscores a limited degree of internationalization in Japanese managers’ education, though international working experience has gained significance. Examining neoliberal mindsets reveals that Japanese top managers are not gravitating towards neoliberalism in financial market orientation, leadership principles, or life conduct. The financial market orientation mindset, influenced by the 2008 financial crisis in the USA and the failure of shareholder maximization principles, demonstrates a strong inclination to revert to traditional Japanese capitalism. Leadership values continue to emphasize relationships, harmony, and coordination among company members, supported by the dominance of internal labor market promotions. Leaders from this internal market are expected to foster stable relationships based on long-term commitment and loyalty. In terms of life conduct, neoliberal ideas are also rebuffed, despite a changing mindset among young managers regarding family. Family is still perceived as a factor to be minimized for professional success, rather than being a driving force or tool for optimizing work performance.
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Notes
- 1.
A keiretsu is a set of companies with interlocking business relationships and shareholdings. It is a type of informal business group. The keiretsu maintained dominance over the Japanese economy in the second half of the twentieth century. Keiretsu is divided into two types of structures: a horizontal keiretsu, which is set up around a bank through cross-shareholding relationships with other companies, and a vertical keiretsu, which is based upon vertical relations between a parent company and its suppliers, manufacturers and distributors on the sub-level.
- 2.
Economic growth rate was 10% in the 1960s. Due to the energy crisis in 1973 and 1979, it dropped to 5% in the 1970s, although this was still high compared to the global average.
- 3.
Zaibatsu is a Japanese term which refers to industrial and financial business conglomerates in the Empire of Japan, whose influence and size allowed control over significant parts of the Japanese economy from the Meiji period until the end of World War II.
- 4.
A Bachelor’s Degree (BA) in Japan usually refers to a 4-year period of education, as in the USA.
- 5.
In this paper, elite universities refer to University of Tokyo, University of Kyoto, Hitotsubashi University, Waseda University, and Keio University.
- 6.
In this paper, in-house career refers to the career track in which job mobility occurs either within the same company or within the same company group (keiretsu). This includes both the bank-centered horizontal keiretsu, such as business groups, and the vertically structured keiretsu, such as buyer–supplier relationships.
- 7.
In our proportional quota sampling, the percentage of CEOs of top 100 industry companies in 2010 who majored in natural sciences and engineering is 46%, in economic and business administration is 25%, and the remainder 21%.
- 8.
In our proportional quota sampling, out of top 100 industrial companies in 2012, the share of CEOs who have no international educational background is 89.5% and the share of CEOs who have in-house career is 99%.
- 9.
In our interview samples, the companies are Sumitomo and Mitsubishi.
- 10.
Marshall (1967) discusses the different capitalist creeds between the Japanese business class and elites in England and America in the early twentieth century. “Self-denial” in the fulfillment of duty is one of the characteristics that the Japanese business class had, which was distinctive from the features of elites in England and America.
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Kwon, J. (2024). Japan’s Flashback to Traditional Capitalism. In: Pohlmann, M., Elias, F. (eds) Global Economic Elites and the New Spirit of Capitalism. Organization, Management and Crime - Organisation, Management und Kriminalität. Springer VS, Wiesbaden. https://doi.org/10.1007/978-3-658-42644-6_9
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