Corporate Governance in Japan: Institutional Change and Organizational Diversity

Masahiko Aoki*, Gregory Jackson, Hideaki Miyajima

*Corresponding author for this work

Research output: Book/ReportBook

104 Citations (Scopus)


This book uses comparative institutional analysis to explain differences in national economic performance. Countries have their own rules for corporate governance and they have different market arrangements; and these differences in rules and organization affect the way firms behave. Countries also tend to develop conventions of organizational architecture whether their hierarchies are functional, horizontal, or decentralized. This affects the way in which they process information, and information management is increasingly seen as being of crucial importance to a firm's performance. This book accords more importance to these factors than to the factors conventionally used in applying a neoclassical model of economic efficiency. It applies game theory, contract theory, and information theory. By describing the rules and norms in Japan, the USA, and the transitional economies, the book shows how firms can achieve competitive advantage in international markets if these conventions and rules are well suited to the industrial sector in which the firms operate. The book is particularly concerned with how Japan, with its main bank and lifelong employment systems, as well as information-sharing firm organizational structure, might reform its institutions to maintain competitive advantage in the world economy.

Original languageEnglish
PublisherOxford University Press
Number of pages472
ISBN (Electronic)9780191713705
ISBN (Print)9780199284511
Publication statusPublished - 2007 Sept 1
Externally publishedYes


  • Comparative institutional analysis
  • Contract theory
  • Corporate governance
  • Decentralized hierarchies
  • Functional hierarchies
  • Game theory
  • Horizontal hierarchies
  • Information management
  • Information theory
  • National economic performance

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)


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