Kikkōman Corporation, Japan: A Case Study on Family Business Longevity

Abstract

Despite their practical and academic importance, family businesses (FBs) have not been well-studied in terms of their longevity. The present study addresses this gap through the case of Kikkōman Corporation, one of Japan’s leading FB with over 360 years of history. Founded in 1661 as a soy sauce brewery, this FB has grown into a leading international condiment and processed food company. As one of Japan’s leading publicly listed FBs, it has achieved the challenging feat of maintaining family influence in ownership and management while maintaining cohesion among its eight founding families. The firm has also leveraged external human capital, including a non-family CEO, as well as financial capital. This study identifies five key factors (values, maintaining and expanding family capital, governance, business succession and social contribution) through the case of Kikkōman Corporation for achieving long-term survival in FBs amidst the challenges of the business environment. This study employs the resource-based theory to examine the longevity of FBs, using the case of Kikkōman Corporation as an example. The study also examines literature on the longevity of FBs, with a key focus on Japan and its contributing factors.