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The Enigma of Toyota's Competitive Advantage: Is Denso the Missing Link in the Academic Literature?

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  • Evelyn Anderson

Abstract

This paper analyses the reasons for the competitiveness of Toyota. It focuses on the company’s unique relationship with one partner supplier – Denso – where contingency loss potential is the greatest. A literature review reveals some gaps between the English and Japanese literature. The author uses resource based view literature, game theory literature, transaction cost literature and the concept of positive external economy to explain Toyota’s success. She also identifies a future research question: might Toyota’s domestic success have arisen partly because its competitors did not understand the way it worked?

Suggested Citation

  • Evelyn Anderson, 2003. "The Enigma of Toyota's Competitive Advantage: Is Denso the Missing Link in the Academic Literature?," Asia Pacific Economic Papers 339, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:csg:ajrcau:339
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    File URL: https://crawford.anu.edu.au/pdf/pep/pep-339.pdf
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    References listed on IDEAS

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    Cited by:

    1. Anderson, Evelyn, 2004. "The Keiretsu Fable - Where does the Truth Lie?," MPRA Paper 8112, University Library of Munich, Germany.

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    JEL classification:

    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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