Impacts of the Information-technology Revolution on Japanese Manufacturer-supplier Relationships
Abstract'Vertical keiretsu', characterized by suppliers' willingness to make customized investments and their long-term relationships with manufacturers, had been recognized as an important source of strength in Japanese industries. Our model predicts that, in contrast to the recent popular argument, the information-technology revolution can strengthen 'vertical keiretsu'. This is because the efficiency of designing customized parts is significantly enhanced if suppliers undertake a substantial level of IT investments such as the introduction of 3D CAD systems, and the customized nature of such investments could reduce the number of potential suppliers. Our interviews with Japanese manufacturers provide a support to this prediction.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Industrial Organization with number 0207009.
Length: 28 pages
Date of creation: 10 Aug 2002
Date of revision:
Note: Type of Document - pdf; pages: 28; figures: included
Contact details of provider:
Web page: http://126.96.36.199
Customized investment; Information technology; Japanese firm; Vertical Keiretsu; Subcontracting;
Other versions of this item:
- Morita, Hodaka & Nakahara, Hirohiko, 2004. "Impacts of the information-technology revolution on Japanese manufacturer-supplier relationships," Journal of the Japanese and International Economies, Elsevier, vol. 18(3), pages 390-415, September.
- L29 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-08-19 (All new papers)
- NEP-SEA-2002-08-19 (South East Asia)
- NEP-TID-2002-08-19 (Technology & Industrial Dynamics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Roger B. Myerson, 1978. "Optimal Auction Design," Discussion Papers 362, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Paul Klemperer, 1999.
"Auction Theory: A Guide to the Literature,"
- J. Yannis Bakos, 1997. "Reducing Buyer Search Costs: Implications for Electronic Marketplaces," Management Science, INFORMS, vol. 43(12), pages 1676-1692, December.
- Flath, David, 1996. "The Keiretsu Puzzle," Journal of the Japanese and International Economies, Elsevier, vol. 10(2), pages 101-121, June.
- David Lucking-Reiley & Daniel F. Spulber, 2001.
"Business-to-Business Electronic Commerce,"
Journal of Economic Perspectives,
American Economic Association, vol. 15(1), pages 55-68, Winter.
- David Lucking-Reiley & Daniel F. Spulber, 2000. "Business-to-Business Electronic Commerce," Vanderbilt University Department of Economics Working Papers 0016, Vanderbilt University Department of Economics.
- Banri Asanuma, 1985. "The Organization of Parts Purchases in the Japanese Automotive Industry," Japanese Economy, M.E. Sharpe, Inc., vol. 13(4), pages 32-53, July.
- Ulrich, Karl, 1995. "The role of product architecture in the manufacturing firm," Research Policy, Elsevier, vol. 24(3), pages 419-440, May.
- Baba, Yasunori & Nobeoka, Kentaro, 1998. "Towards knowledge-based product development: the 3-D CAD model of knowledge creation," Research Policy, Elsevier, vol. 26(6), pages 643-659, February.
- Shuhei Nishitateno, 2012. "Global Production Sharing in the Japanese Automobile Industry: A Comparative Analysis," Departmental Working Papers 2012-02, The Australian National University, Arndt-Corden Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.