Japanese Shinise: Long-Standing Businesses and Their Strategies to Protect the ie Under Extreme Environments

Abstract

Japan is characterized by its businesses older than 100 years, commonly known as shinise – long-standing companies – which tend to be family businesses. Longevity in Japanese family businesses has been attributed, among other factors, to the system of the ie, or patrilineal household line. This chapter follows a sociocultural perspective and uses documental and media textual analysis to identify the cultural and structural attributes and the strategies that shinise have implemented when facing new and intimidating economic, political, and social circumstances under extreme contexts such as wars, structural changes, and national catastrophes and crises while protecting the family structure behind the firm. It is found that, for these firms, the ie comes first than individuals, and so does talent over lineage. The relevance of someone who shares the values that resonate with those of the business is imperative, but also that the leader has a resilient character and an innovative and proactive mind, and understands that his/her major purpose should be protecting the firm and securing its continuity.