IDEAS home Printed from
   My bibliography  Save this article

Relational Governance in Japanese Vertical Relationships


  • Kenji Kojima

    (Kobe University)


The primary purpose of the study is to characterize significant features of relational governance in Japanese vertical relationships and to provide an economic rationale. Japanese vertical relationships, particularly in automobile industry, are examined in comparison with those in the U.S. Both buyers and suppliers have recognized the need to be interdependent and have responded by developing bonding mechanisms that build mutual trust. It could reduce transaction costs and enhance efficiency in trading relationships with relationship-specific investments in long-term relationships.

Suggested Citation

  • Kenji Kojima, 1999. "Relational Governance in Japanese Vertical Relationships," Kobe Economic & Business Review, Research Institute for Economics & Business Administration, Kobe University, vol. 43, pages 25-63, February.
  • Handle: RePEc:kob:review:feb1999::v:43:p:25-63

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Incomplete contracts; Japanese firms; Long-term relationships; Procurement; Relationship specific investment; Vertical relationships;

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kob:review:feb1999::v:43:p:25-63. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Office of Promoting Research Collaboration, Research Institute for Economics & Business Administration, Kobe University). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.