2024/11/12-11/16

What can Taiwan’s businesses Learn from Kyoto’s Centuries-Old Enterprises?（2024/11/12-11/16）

Japan boasts a unique distinction as the home to some of the world’s oldest companies, which have endured centuries while remaining culturally and economically relevant. These "longevity enterprises" are not merely businesses but living testaments to resilience, innovation, and an unwavering commitment to heritage. To uncover their secrets, a delegation of Taiwanese family business leaders and academics embarked on a three-day study tour to Kyoto and Shiga Prefecture, immersing themselves in the stories behind Japan’s enduring family businesses.

The delegation, led by Dr. Shyh-Jer Chen and Dr. Pao-Lien Chen, comprised of 23 practitioners, including founders and family members of Taiwanese family businesses and researchers such as Dr. Chiung-Wen Tsao from National Tainan University and Dr. Cheng-Yu Lee from National Chiayi University, and Yen-Chu Lai a PhD student from National Sun Yat-sen University. Together, they explored how Japanese firms deftly navigate the delicate balance between tradition and modernity, visiting iconic sites such as the Matsushita Memorial Museum, Inamori Memorial Museum, Komaruya Sumii, Shoyeido, and Tsukaki Group.

Philosophy at the Core of Longevity

The tour began with a visit to the Matsushita Memorial Museum, where the business philosophy of Panasonic founder Konosuke Matsushita took centre stage. His “Seven Business Spirits” remain at the heart of the company, providing a framework that has helped it navigate the challenges without losing sight of its core values.

One story resonated deeply with participants: Matsushita’s response to taxation. Far from resisting, he embraced taxes as a means of contributing to society’s development, framing business as a vehicle for public good. "It’s a powerful reminder," one participant reflected, "that business operations are inseparable from the support of a nation's infrastructure; therefore, enterprises have a duty not only to generate profit but to serve the greater good."

Kyocera’s Inamori Memorial Museum introduced another compelling vision of leadership. Founder Kazuo Inamori’s principle, "Reverence for Heaven and Love for People," underpins a culture of altruism and accountability. Inamori’s remarkable revival of Japan Airlines after his retirement stood out as a case study in crisis leadership, demonstrating how value-driven governance can steer even struggling organisations towards renewal. One participant remarked, "These two late founders not only achieved commercial success but also exemplified selflessness, giving back generously to their employees and society." The enduring philosophies of Matsushita and Inamori offer a timeless blueprint for contemporary businesses seeking to align profitability with sustainable and socially responsible practices.

Balancing Tradition and Modernity

Visits to family businesses such as Komaruya Sumii and Shoyeido offered a vivid portrayal of how centuries-old firms adapt to contemporary demands. Komaruya Sumii, a 400-year-old craft business, owes much of its revival to 10th-generation leader Keiko Sumii, who introduced modern design elements while maintaining traditional craftsmanship. Her governance reforms and emphasis on continuous innovation highlight the strategic interplay between legacy and modernisation. Shoyeido, meanwhile, has reimagined its ancient incense-making techniques to appeal to global markets, emphasising the cultural depth of "kōdō" (the Way of Fragrance). By blending tradition with global adaptability, these firms stand as powerful examples of how cultural heritage can fuel modern relevance.

Succession planning emerged as a pivotal theme during this tour. At the Tsukaki Group, now led by its sixth generation, clear governance structures and a systematic approach to leadership transition have been instrumental in maintaining stability. The successors, many of whom studied abroad, bring fresh perspectives to the business while remaining deeply connected to their historical roots. Personal narratives from Komaruya Sumii and Shoyeido added a poignant layer to the succession dialogue. For some successors, joining the family business was less a calling and more an obligation driven by familial expectations. Yet, over time, these leaders discovered their own paths, leveraging their strengths to innovate and drive sustainable growth. As one participant insightfully noted, “Succession isn’t merely about transferring assets; it’s about safeguarding and evolving the values, vision, and identity that define the enterprise.”

Lessons for Taiwan’s Family Businesses

The study tour served as a mirror for Taiwanese family businesses, shedding light on cultural contrasts and opportunities for growth. One participant noted that Japanese firms excel in fostering collaboration and embedding social responsibility into their operations, a stark contrast to the competitive ethos often seen in Taiwan. “It’s a lesson in how trust and shared values can become a source of resilience,” they remarked. The delegation returned with valuable insights, particularly on integrating succession planning and cultural preservation into long-term strategies. By prioritising collective good over individual gain, Taiwanese businesses could unlock a new dimension of sustainability.

Japan’s century-old enterprises remind us that business success is not measured solely in years but in the ability to adapt while staying true to a clear purpose. For practitioners and scholars alike, the lesson is timeless: resilience is built on a foundation of values, vision, and an enduring commitment to serving tradition and adapting without losing sight of what matters most.

The recent visit received high praise, though limited Q&A time—especially during visits to PHP and Kyocera—left some wishing for deeper discussions. Over 70% of attendees said they would recommend the programme to colleagues or friends and expressed strong interest in future overseas study opportunities. They also suggested themes such as family business succession, digital transformation, hybrid work models, AI-era leadership, next-generation workplace culture, and ESG strategies. These ideas reflect participants’ demand for strategic insights and provide valuable direction for future themes.