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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Publisher Info
Paper provided by East Asian Bureau of Economic Research in its series Microeconomics Working Papers with number
376.
Length: 45 pages Date of creation: Jan 2003 Date of revision: Handle: RePEc:eab:microe:376
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Find related papers by JEL classification: C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory D41 - Microeconomics - - Market Structure and Pricing - - - Perfect Competition L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment
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