A Decade of Change, Corporations in Japan
The 1990s began with the bursting of the asset price bubble that had inflated throughout the late 1980s. The Nikkei stock index, which had reached an all-time high in 1989, saw a dramatic decline, leading to a prolonged period of economic stagnation known as the "Lost Decade." This economic downturn forced corporations to reassess their strategies, focus on efficiency, and adapt to a rapidly changing global market.
"The 1990s were a defining decade for Japanese corporations, characterized by economic challenges, cultural shifts, and a reexamination of traditional practices."
Japanese corporations traditionally operated under a model known as "keiretsu," which involved interlinked companies that collaborated closely. However, the economic pressures of the 1990s prompted many firms to reevaluate this structure. This period saw a shift towards more flexible organizational models, as companies sought to streamline operations and reduce costs.
The corporate culture, which emphasized lifetime employment and seniority-based promotion, also began to face scrutiny. As companies struggled to maintain profitability, many started to lay off employees, leading to a shift in employee expectations and corporate loyalty.
