Organizational Restructuring and Locational Hysteresis in R&D: Case Study of Spatial Division of Labor in Japanese Synthetic Chemical Companies Established by <i>Zaibatsu</i>

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  • 研究開発機能の組織再編と立地履歴——旧財閥系総合化学企業における空間的分業の事例——
  • 研究開発機能の組織再編と立地履歴 : 旧財閥系総合化学企業における空間的分業の事例
  • ケンキュウ カイハツ キノウ ノ ソシキ サイヘン ト リッチ リレキ : キュウ ザイバツケイ ソウゴウ カガク キギョウ ニ オケル クウカンテキ ブンギョウ ノ ジレイ

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Abstract

<p>Multinational companies (MNCs) have increasingly been trying to make use of globally dispersed knowledge. Several research groups, including geographers, have examined the resulting globalization of R&D, but most seem to have ignored the interaction between international and domestic R&D. It is reasonable to consider these two activities separately provided that they are not significantly interrelated. However, Japanese MNCs typically concentrate most of their primary technological resources and R&D personnel in Japan. Hence, to understand how these companies establish links between their core competencies and the knowledge acquired in a foreign environment, it is important to discern the processes of both the evolution and globalization of their domestic R&D functions.</p><p>To study this issue, Japanese synthetic chemical companies established by zaibatsu, i.e., large Japanese industrial and financial groups, were examined. Using securities reports, newspaper articles, and information on company history, the author analyzed: 1) the locational hysteresis and organizational structure of main R&D functions in Japan; and 2) changes in the spatial division of labor between domestic and overseas R&D facilities. Then, by applying social network analysis based on the patent applications by the three companies during 2005–2012, the knowledge flow among internal R&D facilities and between internal and external organizations was determined. These analyses were supported by interviews with company staff in 2012.</p><p>The results indicate that Sumitomo disperses its R&D efforts, but Mitsui and Mitsubishi have concentrated their R&D activities into a single site each, located in the Tokyo metropolitan area, since the 1990s megamergers conducted by the two zaibatsu. In addition, Sumitomo’s R&D system is “vertical” and focuses on its product divisions, while those of Mitsui and Mitsubishi are “horizontal” and encourage cooperation among R&D divisions. Furthermore, these differences affect the knowledge flow not only among their facilities and organizations in Japan, but also among their domestic and overseas R&D facilities. Because this study focuses on both domestic and overseas R&D activities, it provides a profound understanding of the spatial division of labor in R&D.</p>

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