Strategic management Journal
Volume 25, Issue 7, July 2004, Pages 613–636
 

Hicheon Kim, Robert E. Hoskisson, William P. Wan
http://onlinelibrary.wiley.com/doi/10.1002/smj.395/abstract

Abstract
Conceptualizing the keiretsu as a power-dependence system, we propose that benefits accruing from keiretsu affiliation differ across member firms, depending on their power in (or dependence on) the keiretsu. By integrating power with governance and internal market perspectives on group affiliation, we develop and find general support for the hypotheses that powerful keiretsu member firms are able to place more emphasis on growth in pursuing product and international diversification, whereas less powerful keiretsu member firms are subject to strong monitoring and emphasize profitability. These findings provide support to the study's proposition that power-dependence relationships in a keiretsu influence member firms' appropriation of group affiliation benefits in pursuing diversification strategies.