The general heuristic is that we’re in the midst of an ever-increasing period of creative destruction, with innovative startups stealing the lunch of slower incumbents.  While the data doesn’t really support this heuristic, a recent study from The Open University of Japan is nonetheless interesting as it explores what it is about Japan that sees them have quite so many companies that have been around for an incredibly long time.

The researchers explain that while the West may have a handful of companies that have been around for 100 years or more, Japan has over 33,000, with many stretching back two or three centuries, or in the case of seven companies, over 1,000 years of business.

Achieving longevity

The researchers quizzed the owners of 10 Japanese companies, each of which was established over 300 years ago, to try and understand the reasons for their longevity.  They also conducted surveys, with text mining used to try and extract key themes that could potentially add further context to their enduring success.

Four key factors emerged that the researchers believe have contributed to the longevity of these Japanese firms:

• The owners and employees
• Management and business credo
• Change and risk management
• Customers and products

The results also suggest that it was extremely important for the company to be a positive member of the wider community, with these non-economic values strongly embedded in the culture and mindset of the business and its owners.

“The developed framework will be a guideline for researchers and practitioners to further share the wisdom of long-established firms,” the researchers conclude.