A study of Japanese wholesale firm evolution from the perspective of business history:

<p>　The paper will explain the methodology and the perspective of business history as the author understands it. He also re-examines “the theory of distribution revolution” advocated by Shiuji Hayashi and A.D. Chandler, Jr.'s model of the historical relationship between manufacturers and intermediate distributors. This is discussed based on an exploration of manufacturers' strategy of intermediate distribution in the supply of everyday necessities, for which there is relatively little research, and on an introduction of the view that wholesalers are unnecessary as insisted upon by the manager of an EDI (Electronic Data Interchange) company serving as an intermediate in this industry. In addition, the paper will provide an overview of the long-term trends in the changing position of wholesalers since the start of modern Japan, including factors for success and failure of wholesalers under increasing pressures from both upstream (manufacturers) and downstream (retailers). The paper will conclude that one important factor was the strategies and investments that improved and modernized management functions and the system for beating out the vertical and the horizontal competition, as well as the recruitments of able employees to realize these strategies. These strategies and investments were created by young executives of wholesalers, who understood the boom of “the theory of distribution revolution” as a warning bell for wholesalers and eagerly exchanged information among this younger generation of executives.</p>