Structures and Functions of Large Corporate Groups

Part II considers the development of a new system of industrial concentration after World War II. In this part, new developments in the system of large corporate groups and industrial systems based on industry–bank relationships as an issue of industrial concentration closely tied to the characteristics of Japanese capitalism and German capitalism will be examined. This chapter discusses the development of a new system of industrial concentration post WWII in relation to large corporate group systems. Post WWII, large corporate group systems evolved during the dissolution and reconcentration of monopolies in Japan and Germany. They have played an important role in postwar development of corporation and Japanese and German capitalism’s accumulation structures. Therefore, this chapter considers the restructuring of a system for large corporate groups in relation to the dissolution of monopolies under the occupation policy and their reconcentration after the war. First, it examines the dissolution of monopolies by victorious nations such as the United States and its influence. Next, it analyzes the reconcentration of monopolies beginning in the 1950s and new developments in the system of large corporate groups that accompanied reconcentration. Drawing on this discussion, this chapter explains the manner in which large business operations were restructured through reconcentration or concentration, and the characteristics and significance of the system of large corporate groups.