Interfirm Networks in the Japanese Electronics Industry analyses
changes in production networks in the Japanese electronics
industry. Japan's post-war success in the assembly industries is
frequently attributed to innovative approaches to the organization
of production: Japanese assemblers have tended to forge intricate
networks of long-term interfirm business relationships.
Traditionally, these networks have been characterized by
hierarchical interfirm relationships resembling a pyramid.
Paprzycki argues that as a result of global industry dynamics, such
monolithic 'pyramidal' production networks have come under mounting
pressure and are giving way to an increasing diversity of network
arrangements. A major contributing factor is the growing cost and
complexity of technology, which forces even the largest
manufacturers to look beyond traditional network boundaries in
order to gain access to complementary (technological) assets and
capabilities.
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