Japanese keiretsu are not as static as is often thought. Subsidiaries are given flexibility to move in the organizational hierarchy and to specialize.
This dynamic view allows room for change, innovation and competition at the supply chain level.
Compare this with the “American model of the independent company.”
Example: From an investigation of Japanese production systems.
Source: Koike, K. (1990) Aspects of excellence in Japan’s production system. Economic Eye, Vol. 11, No. 4, pp. 27-31.