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Have you ever wondered what it takes for a business to survive for centuries? Let’s explore the fascinating story of Kongō Gumi, the world’s oldest continuously operating company, and uncover the strategies that have kept it thriving for nearly 1500 years.
A Unique Construction Sign
While construction signs are ubiquitous worldwide, one particular flag in Japan caught my eye when I was traveling there.


This unusual sign led me to discover Kongō Gumi, a construction company founded in 578 AD in Osaka, Japan. With over 1,400 years of history, it’s a testament to enduring business practices. The construction techniques of shrines and temples originated in China, but have been well preserved in Japan, forming a unique traditional skill.
The Pillars of Kongō Gumi’s Longevity
1. Geographical Stability

Japan’s unique geographical position has been a cornerstone of Kongō Gumi’s longevity:
- Natural Protection: As an island nation, Japan benefited from a natural “moat” that shielded it from the constant wars and invasions that plagued mainland countries. This stability allowed businesses like Kongō Gumi to focus on growth and refinement rather than survival.
- Sakoku Period: During the 17th-19th centuries, Japan’s self-imposed isolation (Sakoku) created a self-sustained economy. This period fostered the development of unique Japanese arts, crafts, and business practices, allowing companies like Kongō Gumi to deepen their expertise without external competition.
- Industrialization Impact: Japan’s early and rapid industrialization in the late 19th century led to the establishment of strong internal markets. This economic environment supported long-lasting businesses by providing a stable customer base and encouraging local innovation.
2. Cultural Stability

Kongō Gumi’s deep integration with Japanese culture has been crucial to its endurance:
- Religious Roots: Founded to construct Shitenno-ji, Japan’s first official Buddhist temple, Kongō Gumi established itself as an integral part of Japan’s religious infrastructure from the outset. This connection to spirituality and tradition has provided a constant stream of work and cultural relevance.
- Continuous Involvement: Over centuries, Kongō Gumi has been repeatedly called upon to reconstruct and maintain important temples. This recurring role has solidified its position as a guardian of Japanese architectural heritage.
- Community Connection: The company’s work on temples and shrines places it at the heart of community life. In Japan, these structures are not just religious sites but also centers of social and cultural activities, ensuring Kongō Gumi’s relevance across generations.
3. High-Level Craftsmanship

Kongō Gumi’s unwavering commitment to excellence and adaptation has been key to its survival:
- Generational Expertise: With 40 generations of family ownership, the company has perfected the art of knowledge transfer. Each generation builds upon the skills and wisdom of the previous one, creating an unbroken chain of expertise in temple construction.
- Adaptability in Crisis: During World War II, when temple construction halted, Kongō Gumi demonstrated remarkable adaptability by shifting to manufacturing wooden boxes for the military. This flexibility ensured the company’s survival without compromising its core skills.
- Quality Over Quantity: Kongō Gumi chooses the best craftsman with an aptitude for leadership, not necessarily a family member (e.g., Documents from the Edo Period show if the family has no male heir, arrangements may be made for a daughter to take a husband who can become the head carpenter.)
- “Kumi” Mechanism: Eight independent groups of carpenters works for Kongō Gumi, they compete and improve skills.

4. Adaptive Management
Kongō Gumi’s ability to evolve while preserving its core values has been crucial to its longevity:
- Strategic Acquisition: In 2006, Kongō Gumi was acquired by Takamatsu, demonstrating its willingness to adapt for survival.
- Modernization of Operations: Under new management, the company: Implemented transparent financial reporting Developed manuals and flow charts for business processes Adopted strict cost management practices
- Balancing Tradition and Innovation: Retained traditional craftsmanship in temple and shrine construction Maintained long-standing relationships with clients Preserved the Kongō name and its centuries-old reputation
- Financial Stability: Achieved profitability post-acquisition Increased workforce from 80 to 110 employees
- Preserving Cultural Legacy: Maintained the Kongō family’s symbolic role in ceremonies Continued the tradition of the ‘sho daiku’ (master carpenter) title
Key Takeaways for Modern Businesses
- Niche Expertise: Develop and maintain unparalleled expertise in a specific area.
- Cultural Integration: Align your business with enduring cultural values and practices.
- Adaptability: Be prepared to pivot during challenging times while maintaining core competencies.
- Innovation Within Tradition: Embrace new technologies and methods that enhance, not replace, traditional skills.
- Long-Term Vision: Focus on sustainability and legacy rather than short-term gains.
How can your business apply these centuries-old strategies to ensure longevity in today’s fast-paced world? Share your thoughts in the comments!
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Sources:
[2]https://www.kongogumi.co.jp/about_history.html
[3] https://takamatsu-cg.co.jp/eng/about/esg/social/culture/post-3.html
[4] https://www.youtube.com/watch?v=4lxrxRxZr28