IDEAS home Printed from https://ideas.repec.org/p/jet/dpaper/dpaper419.html
   My bibliography  Save this paper

Exploring the sources of China's challenge to Japan : models of industrial organisation in the motorcycle industry

Author

Listed:
  • Fujita, Mai

Abstract

In view of the recent rise of China, this paper looks into one of the most important yet relatively overlooked ingredients of the Chinese success: industrial organisation. It will examine the case of the motorcycle industry, in which the rise of Chinese manufacturers even disrupted the established dominance of Japanese industry leaders. Adopting the modified version of the global value chain governance framework, this paper shows that the rise of China has been driven by a distinctive arm’s-length model of industrial organisation, which is in sharp contrast to the conventional captive model that has sustained the Japanese leadership.

Suggested Citation

  • Fujita, Mai, 2013. "Exploring the sources of China's challenge to Japan : models of industrial organisation in the motorcycle industry," IDE Discussion Papers 419, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper419
    as

    Download full text from publisher

    File URL: https://ir.ide.go.jp/?action=repository_action_common_download&item_id=37756&item_no=1&attribute_id=22&file_no=1
    File Function: First version, 2013
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. John Humphrey & Hubert Schmitz, 2008. "Inter-firm relationships in global value chains: trends in chain governance and their policy implications," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 1(3), pages 258-282.
    2. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    3. 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.
    4. Timothy J. Sturgeon, 2002. "Modular production networks: a new American model of industrial organization," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(3), pages 451-496, June.
    5. Michael A. Cusumano & Akira Takeishi, 1991. "Supplier relations and management: A survey of Japanese, Japanese‐transplant, and U.S. auto plants," Strategic Management Journal, Wiley Blackwell, vol. 12(8), pages 563-588, November.
    6. Peter Galvin & Andre Morkel, 2001. "Modularity On Industry Structure: The Case Of The World The Effect Of Product Bicycle Industry," Industry and Innovation, Taylor & Francis Journals, vol. 8(1), pages 31-47.
    7. Carliss Y. Baldwin & Kim B. Clark, 2000. "Design Rules, Volume 1: The Power of Modularity," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262024667, April.
    8. Langlois, Richard N. & Robertson, Paul L., 1992. "Networks and innovation in a modular system: Lessons from the microcomputer and stereo component industries," Research Policy, Elsevier, vol. 21(4), pages 297-313, August.
    9. Posthuma, Anne Caroline, 1995. "Japanese techniques in Africa? Human resources and industrial restructuring in Zimbabwe," World Development, Elsevier, vol. 23(1), pages 103-116, January.
    10. Timothy Sturgeon & Johannes Van Biesebroeck & Gary Gereffi, 2008. "Value chains, networks and clusters: reframing the global automotive industry," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 297-321, May.
    11. Ohara, Moriki & Sato, Yuri, 2008. "Asian Industrial Development from the Perspective of the Motorcycle Industry," IDE Discussion Papers 182, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    12. Abernathy, William J. & Clark, Kim B., 1985. "Innovation: Mapping the winds of creative destruction," Research Policy, Elsevier, vol. 14(1), pages 3-22, February.
    13. 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.
    14. Kaplinsky, Raphael, 1995. "Technique and system: The spread of Japanese management techniques to developing countries," World Development, Elsevier, vol. 23(1), pages 57-71, January.
    15. Harriss, John, 1995. ""Japanization": Context and culture in the Indonesian automotive industry," World Development, Elsevier, vol. 23(1), pages 117-128, January.
    16. Ulrich, Karl, 1995. "The role of product architecture in the manufacturing firm," Research Policy, Elsevier, vol. 24(3), pages 419-440, May.
    17. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
    18. Sako, Mari, 1996. "Suppliers' Associations in the Japanese Automobile Industry: Collective Action for Technology Diffusion," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 20(6), pages 651-671, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fujita, Mai, 2013. "The Japanese and Chinese models of industrial organisation : fighting for supremacy in the Vietnamese motorcycle industry," IDE Discussion Papers 420, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    2. Vincent FRIGANT, 2013. "Une comparaison de l’internationalisation des chaînes d’approvisionnement automobiles allemande et française," Cahiers du GREThA (2007-2019) 2013-09, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    3. Vincent Frigant & Damien Talbot, 2003. "Convergence et diversité du passage à la production modulaire dans l'aéronautique et l'automobile en Europe," Post-Print hal-00246171, HAL.
    4. Joachim Henkel & Alexander Hoffmann, 2019. "Value capture in hierarchically organized value chains," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(2), pages 260-279, April.
    5. Anna Cabigiosu, 2018. "When do modular dominant designs emerge? A theoretical framework," Working Papers 05, Department of Management, Università Ca' Foscari Venezia.
    6. Murmann, Johann Peter & Frenken, Koen, 2006. "Toward a systematic framework for research on dominant designs, technological innovations, and industrial change," Research Policy, Elsevier, vol. 35(7), pages 925-952, September.
    7. Vincent Frigant & Damien Talbot, 2005. "Technological Determinism and Modularity: Lessons from a Comparison between Aircraft and Auto Industries in Europe," Industry and Innovation, Taylor & Francis Journals, vol. 12(3), pages 337-355.
    8. Frigant, Vincent, 2014. "Une comparaison de la fragmentation internationale des chaînes d’approvisionnement automobiles allemande et française," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 15.
    9. Scaringella, Laurent & Burtschell, François, 2017. "The challenges of radical innovation in Iran: Knowledge transfer and absorptive capacity highlights — Evidence from a joint venture in the construction sector," Technological Forecasting and Social Change, Elsevier, vol. 122(C), pages 151-169.
    10. Vincent Frigant & Damien Talbot, 2007. "Proximites Et Logique Modulaire Dans L'Automobile Et L'Aeronautique : Vers Une Dualisation Des Espaces D'Approvisionnement," Post-Print hal-02376436, HAL.
    11. Rahul Kapoor, 2013. "Persistence of Integration in the Face of Specialization: How Firms Navigated the Winds of Disintegration and Shaped the Architecture of the Semiconductor Industry," Organization Science, INFORMS, vol. 24(4), pages 1195-1213, August.
    12. Johannes Van Biesebroeck & Alexander Schmitt, 2022. "Testing predictions on supplier governance from the global value chains literature [Using hostages to support exchange: dependence balancing and partial equity stakes in Japanese automotive supply ," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 31(1), pages 89-111.
    13. Nicholas Burton & Peter Galvin, 2020. "Component complementarity and transaction costs: the evolution of product design," Review of Managerial Science, Springer, vol. 14(4), pages 845-867, August.
    14. Dewen Yao, 2013. "Understanding Industrial Innovation and Upgrade from Modularization’s Perspective," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 3(6), pages 1-11, December.
    15. Frigant, 2004. "Modularity: the foundations of an architect firm? (In French)," Industrial Organization 0405002, University Library of Munich, Germany.
    16. Cédric Durand & David Flacher & Vincent Frigant, 2018. "Étudier les chaînes globales de valeur comme une forme d’organisation industrielle," Revue d'économie industrielle, De Boeck Université, vol. 0(3), pages 13-34.
    17. Cabigiosu, Anna & Zirpoli, Francesco & Camuffo, Arnaldo, 2013. "Modularity, interfaces definition and the integration of external sources of innovation in the automotive industry," Research Policy, Elsevier, vol. 42(3), pages 662-675.
    18. Mario Benassi, 2009. "Investigating modular organizations," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 13(3), pages 163-192, August.
    19. Vincent FRIGANT, 2007. "Between Internationalisation and Proximity: the internationalisation process of automotive first tier suppliers," Cahiers du GREThA (2007-2019) 2007-13, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    20. Genjiro Kosaka & Koichi Nakagawa & Seiji Manabe & Mizuki Kobayashi, 2020. "The vertical keiretsu advantage in the era of Westernization in the Japanese automobile industry: investigation from transaction cost economics and a resource-based view," Asian Business & Management, Palgrave Macmillan, vol. 19(1), pages 36-61, February.

    More about this item

    Keywords

    China; Japan; Motorcycles; Industrial policy; Industrial structure; Industrial organisation; Model; Motorcycle industry; Global value chain;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jet:dpaper:dpaper419. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michitaka Imamitsu (email available below). General contact details of provider: https://edirc.repec.org/data/idegvjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.