The Organization of Parts Purchases in the Japanese Automotive Industry

Abstract

It is often claimed that the distinctive feature of Japanese industrial organization is the presence of horizontal and vertical firm groupings (business groups and keiretsu) and the prevalence of the "subcontractor relationship" between a firm and its suppliers. The following will examine the "subcontractor" typology, but as these three forms of organization tend partially to overlap in the real world, the study should also help to deepen our understanding of corporate groups.