The fall of the keiretsu has perhaps started. Shares are being sold, banks are no longer at the center of the networks and large manufacturers are no longer relying on small Japanese suppliers. The argument that Mitsubishi is sinking fast (Bremner and Thornton, 2000), perhaps shows that the keiretsu are already in trouble. Whether the interfirm networks are in demise or whether they are restructuring, illustrated by the bank mergers is not known. However the evidence suggest that the keiretsu are going to have to overcome many situations to survive. Only the future can determine where interfirm networks are going, if anywhere.
Interfirm networks are prevalent in Japan due the history, culture, and government action and the benefits that are gained by them. However their prevalence in the Japanese economy in changing. Changing situations such as the recession, the changing role of Banks, the influx of foreign competitors and change in manufacturer and small supplier relationships. Interfirm networks can be effective in promoting industrial competitiveness. There are many advantages of membership to an interfirm network, and these are converted in firms to be effective in industrial competition. Yet the Japanese economy is still changing. Many of the traditional elements of Japanese industry are disappearing. The once acclaimed and admired Japanese way of doing things have now under criticism. The interfirm networks are an element of the Japanese economy that has been criticized. The reality is that the future of Japan s interfirm networks is pessimistic. There are many obstacles that interfirm networks have to overcome to survive. The networks are going to have to restructure and evolve to exist in Japan s future economy.