Advertisement

Interfirm Networks in Manufacturing Industry Agglomerations in Japan: Evidence from Survey Data

  • Iichiro UesugiEmail author
Chapter
Part of the Advances in Japanese Business and Economics book series (AJBE, volume 4)

Abstract

This chapter focuses on interfirm networks in Japan’s major manufacturing agglomerations and conducts fact-finding analyses on the following three issues: (1) the nature of interfirm transaction relationships, including developments in such relationships over time; (2) firms’ participation in network activities other than supplier-customer transactions; and (3) interactions between interfirm transaction relationships and relationships of other types. Based on the results of a unique firm-level survey completed by more than 1800 firms in December 2009, it is found, first, that the number of interfirm transaction relationships, especially those involving smaller firms, has declined over the past ten years. Second, the survey indicates that, apart from transaction relationships, many firms participated in group activities in individual industry associations and local chambers of commerce, indicating that firms tend to maintain relationships with firms similar to themselves. Third, it is found that bank lending attitudes are positively associated with the extent to which a firm is interconnected with other local firms, indicating that interfirm and firm-bank relationships are complementary.

Keywords

Interfirm networks Firm-bank relationships Joint R&D 

References

  1. Branstetter, L. G., & Sakakibara, M. (2002). When do research consortia work well and why? Evidence from Japanese panel data. American Economic Review, 92(1), 143–159.CrossRefGoogle Scholar
  2. Goyal, S. (2007). Connections. Princeton: Princeton University Press.Google Scholar
  3. Goyal, S., & Moraga-Gonzalez, J. L. (2001). R & D networks. RAND Journal of Economics, 32(4), 686–707.CrossRefGoogle Scholar
  4. Jackson, M. O. (2008). Social and economic networks. Princeton: Princeton University Press.Google Scholar
  5. Kranton, R. E., & Minehart, D. F. (2001) A theory of buyer-seller networks. American Economic Review, 91(3), 485–508.CrossRefGoogle Scholar
  6. Lazarsfeld, P. F., & Merton, R. K. (1954) Friendship as a social process: A substantive and methodological analysis. In M. Berger (Ed.), Freedom and control in modern society. New York: Van Nostrand.Google Scholar
  7. Melitz, M. (2003) The impact of trade on intra-industry reallocations and aggregate industry productivity. Econometrica, 71, 1695–1725.CrossRefGoogle Scholar
  8. Miotti, L., & Sachwald, F. (2003). Co-operative R & D: Why and with whom? An integrated framework of analysis. Research Policy, 32, 1481–1499.CrossRefGoogle Scholar
  9. Small and Medium Enterprises Agency of Japan. (2010). White paper on SMEs. Tokyo: GyoseiGoogle Scholar
  10. Uesugi, I. H., Okamuro, H. H., & Ohkubo, S. (2010). Interfirm networks in manufacturing agglomerations: A summary of the survey results implemented in December 2009 (Seizougyo shuhsekichi ni okeru kigyokan no tsunagari). Design of Interfirm Network to Achieve Sustainable Economic Growth WP Series No. 2 (in Japanese).Google Scholar
  11. Vega-Redondo, F. (2007). Complex social networks (Econometric society monographs). Cambridge: Cambridge University Press.CrossRefGoogle Scholar

Copyright information

© Springer Japan 2015

Authors and Affiliations

  1. 1.Institute of Economic ResearchHitotsubashi UniversityKunitachiJapan

Personalised recommendations