Imperfection of Japanese Supplier Relationship: An Empirical Research of Changing Inter-Organizational Management Control

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Japanese supplier relationships, or Keiretsu systems, are recognized as a major contributing factor of competitive advantage of Japanese firms. Some Western firms have introduced this practice and have achieved outcomes such as significant cost reduction and/or outstanding quality improvement. Against the reputation, Keiretsu systems among Japanese firms are facing various difficulties. Especially, costs of maintaining systems become significant. Some portions of Japanese firms abandon their existing value chain and introduce recent Western practices including global sourcing and electronic purchasing. But little is known how Japanese firms have perceived their supply chain and try to change. In this paper, changes of supplier relationships and supply chain management among Japanese firms are examined. Firstly, characteristics of Japanese firms’supplier relationships are figured out through the comprehensive literature surveys. Secondly, the closer look of Japanese supply chain management are presented. The main focus here is the collaborative efforts between buyers and suppliers, especially at both R&D and production stages. Thirdly, the result of questionnaire survey is presented. Questionnaires were mailed to 353 manufacturing companies listed their stocks in Section One of Tokyo Stock Exchange. Finally, the new avenue of inter-organizational managerial accounting research is indicated to stimulate the future research in this field.

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