Longevity of Japanese Family Businesses

In the 2021 lecture „Longevity of Japanese Family Business – Good for the buyer, good for the seller, good for the world“, Dr Sigrun Caspary explains why Japan has a particularly high number of very old family businesses worldwide. At the heart of the lecture is the question of which cultural, legal and familial structures help ensure that companies can remain under the influence of a family for centuries.

The post shows that the Japanese „Ie“ family system forms a central basis for long-term continuity. The passing on of the family name, ancestor worship and the clear role of the head of the family shape the understanding of succession. Particular emphasis is placed on the tradition of adopting suitable successors, which allows family businesses to be continued even when no biological son is available or an external candidate is deemed more suitable.

Using examples such as Hōshi, Gekkeikan, Shiseido, Suntory and Suzuki, the lecture illustrates how succession, family constitutions and value-oriented guiding principles contribute to longevity. The principle of „Sampō yoshi“ – good for the seller, the buyer and society – points to an early understanding of corporate responsibility. At the same time, current challenges become apparent, such as falling birth rates, changing succession preferences, female succession and heavy inheritance tax burdens.