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Long-term Cooperation in Japanese Vertical Relationships

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  • Kenji Kojima

    (Kobe University)

Abstract

The primary purpose of the study is to identify significant features of Japanese vertical relationships and to provide economic rationale. Japanese vertical relationships, particularly automobile industry, are examined in comparison with those in the U.S. Both buyers and suppliers can be identified to be mutually dependent and have developed long-term cooperative relationships with relationship-specific investments. They have developed facilitating practices to build and maintain trust between them. It could reduce transaction costs and eliminate inefficiencies in trading relationships with cooperation and reputation in long-term relationships.

(This abstract was borrowed from another version of this item.)

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File URL: http://www.rieb.kobe-u.ac.jp/academic/ra/researchseries/review.html
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Bibliographic Info

Article provided by Research Institute for Economics & Business Administration, Kobe University in its journal Kobe Economic & Business Review.

Volume (Year): 46 (2002)
Issue (Month): (February)
Pages: 5-26

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Handle: RePEc:kob:review:feb2002::v:46:p:5-26

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Related research

Keywords: Commitment; Cooperation; Japanese firms; Long-term relationships; Relationship-specific investment; Reputation; Vertical relationships;

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