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The Enigma of Toyota's Competitive Advantage: Is Denso the Missing Link in the Academic Literature?

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  • Evelyn Anderson

Abstract

This paper analyses the reasons for the competitiveness of Toyota. It focuses on the company’s unique relationship with one partner supplier – Denso – where contingency loss potential is the greatest. A literature review reveals some gaps between the English and Japanese literature. The author uses resource based view literature, game theory literature, transaction cost literature and the concept of positive external economy to explain Toyota’s success. She also identifies a future research question: might Toyota’s domestic success have arisen partly because its competitors did not understand the way it worked?

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File URL: http://crawford.anu.edu.au/pdf/pep/pep-339.pdf
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Bibliographic Info

Paper provided by Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University in its series Asia Pacific Economic Papers with number 339.

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Length: 38 pages
Date of creation: 2003
Date of revision:
Handle: RePEc:csg:ajrcau:339

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  1. Williamson, Oliver E, 1983. "Credible Commitments: Using Hostages to Support Exchange," American Economic Review, American Economic Association, vol. 73(4), pages 519-40, September.
  2. Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-95, December.
  3. Joskow, Paul L, 1988. "Asset Specificity and the Structure of Vertical Relationships: Empirical Evidence," Journal of Law, Economics and Organization, Oxford University Press, vol. 4(1), pages 95-117, Spring.
  4. Kawasaki, Seiichi & McMillan, John, 1987. "The design of contracts: Evidence from Japanese subcontracting," Journal of the Japanese and International Economies, Elsevier, vol. 1(3), pages 327-349, September.
  5. Clive T. Edwards, 1997. "Japanese Interfirm Networks: Exploring the Seminal Sources of their Success," Journal of Management Studies, Wiley Blackwell, vol. 34(4), pages 489-510, 07.
  6. Bart Nooteboom & Gjalt De Jong & Robert Vossen & Susan Helper & Mari Sako, 2000. "Network Interactions And Mutual Dependence: A Test In The Car Industry," Industry and Innovation, Taylor & Francis Journals, vol. 7(1), pages 117-144.
  7. Williamson, Oliver E., 1989. "Transaction cost economics," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 3, pages 135-182 Elsevier.
  8. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
  9. Coase, R H, 1988. "The Nature of the Firm: Origin," Journal of Law, Economics and Organization, Oxford University Press, vol. 4(1), pages 3-17, Spring.
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Cited by:
  1. Anderson, Evelyn, 2004. "The Keiretsu Fable - Where does the Truth Lie?," MPRA Paper 8112, University Library of Munich, Germany.

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