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  • Interfirm Networks in the Japanese Electronics Industry

Interfirm Networks in the Japanese Electronics Industry

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Japanese Interfirm Networks" analyzes changes in production networks in the Japanese electronics industry. Japan's post-war success in the assembly industries (primarily automobiles and electronics) is frequently attributed to innovative approaches to the organization of production: rather than relying on full scale vertical integration or arm's-length market transcactions, Japanese assemblers have tended to forge intricate networks of long-term interfirm business relationships that have afforded them with a host of advantages over their competitors. Paprzycki argues that as a result of global industry dynamics, such monolithic 'pyramidal' production networks have come under mounting pressure to and are giving way to an increasing diversity of network arrangements.
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