Inter-firm relations and technological change: Empirical study of structural changes in component procurement system in the Japanese automobile industry

About this project

Japan Grant Number
JP18K01834
Funding Program
Grants-in-Aid for Scientific Research
Funding organization
Japan Society for the Promotion of Science
Project/Area Number
18K01834
Research Category
Grant-in-Aid for Scientific Research (C)
Allocation Type
  • Multi-year Fund
Review Section / Research Field
  • Basic Section 07080:Business administration-related
Research Institution
  • Gakushuin University
  • Kyoto University
Project Period (FY)
2018-04-01 〜 2022-03-31
Project Status
Completed
Budget Amount*help
4,420,000 Yen (Direct Cost: 3,400,000 Yen Indirect Cost: 1,020,000 Yen)

Research Abstract

This research empirically investigates how inter-firm relations, such as vertical keiretsu and long-term relationships, affect inter-firm transactions, drawing on a panel data set over 32 years on component transactions between OEMs and suppliers in the Japanese automotive industry. Our statistical analysis shows that while many keiretsu suppliers had shrunk their role since the early 2000s, some, particularly Toyota’s, had maintained their role. The result indicates a possible mechanism to maintain keiretsu relations, where keiretsu suppliers could survive through improving competitive advantage and expanding customer scope. This research also conducted a questionnaire survey with Japanese suppliers and revealed some relations between oversea and domestic transactions.

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