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Keiretsu Divergence in the Japanese Automotive Industry

Author

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  • Akira Takeishi

    (Kyoto University)

  • Yoshihisa Noro

    (Mitsubishi Research Institute, Inc.)

Abstract

The keiretsu relationship in the Japanese automotive industry was once admired as a source of competitive advantage. Yet, after the collapse of the bubble economy, arguments emerged that keiretsu was instead a source of weakness and its role had ended; in fact, some automakers dismantled their keiretsu relationships. Meanwhile, however, other automakers have maintained these relationships, and as such, discussions continue regarding whether or not keiretsu contributes to competitive advantage. In this study, we analyze some empirical data in order to explore the changes to keiretsu relationships in the Japanese automotive industry, and the reasons behind these changes. We propose that there are two types of keiretsu relationships, inward and outward keiretsu, where the former type is likely to be dismantled and the latter to be maintained. Future research agenda are also presented.

Suggested Citation

  • Akira Takeishi & Yoshihisa Noro, 2017. "Keiretsu Divergence in the Japanese Automotive Industry," Working Papers hal-02952225, HAL.
    • Handle: RePEc:hal:wpaper:hal-02952225
    Note: View the original document on HAL open archive server: https://hal.science/hal-02952225
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    References listed on IDEAS

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    1. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    2. Asanuma, Banri, 1989. "Manufacturer-supplier relationships in Japan and the concept of relation-specific skill," Journal of the Japanese and International Economies, Elsevier, vol. 3(1), pages 1-30, March.
    3. Christina L. Ahmadjian & James R. Lincoln, 2001. "Keiretsu, Governance, and Learning: Case Studies in Change from the Japanese Automotive Industry," Organization Science, INFORMS, vol. 12(6), pages 683-701, December.
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    Cited by:

    1. Gábor Túry, 2018. "Consequences Of Technological Changes In The Automotive Industry – Perspectives Of The Central European Region As Part Of The Global Value Chains," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 6(2), pages 82-94, December.

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