Takao Ito1, Tsutomu Ito2, Rajiv Mehta3, Seigo Matsuno2, Makoto Sakamoto4
1Graduate School of Advanced Science and Engineering, Hiroshima University,
1-4-1 Kagamiyama, Higashi Hiroshima, 739-7527, Japan
2Department of Business Administration, National Institute of Technology,
Ube College, 2-14-1 Tokiwadai, Ube City, Yamaguchi Pref.,755-8555, Japan
3Martin Tuchman School of Management, New Jersey Institute of Technology,
Newark, New Jersey, 07102-1982, U.S.A.
4Faculty of Engineering, University of Miyazaki, 1-1 Gakuen Kibanadai-Nishi,
Miyazaki, 889-2192, Japan
pp. 175-180
ABSTRACT
The formation of successful corporate strategy among vertically integrated
organizations is predicated upon a plethora of dynamic relationships among
buyer-seller firms. Albeit growing in interest, there is a paucity of research
that focuses on predicting the nature of interfirm relationships among
Japanese keiretsu members. Discerning this knowledge can help formulate
successful strategic decisions, such as whether to continue procuring parts
or increasing future investments in partner firms. As studies on predicting
interfirm relationships among keiretsu member firms has been scant, this
research offers insights by illustrating a newer approach for making decisions
regarding corporate strategy. Using data collected on transaction from
Yokokai—parts suppliers of Mazda—in this study a new model is developed
to predict the nature of interfirm relationships using the degree index
and DEA model. The primary contribution of this research is that interfirm
relationships not only depend on uture trends, but are also determined
by the interactions among member firms of a keiretsu.
ARTICLE INFO
Article History
Received 11 November 2019
Accepted 07 September 2020
Keywords
Out-degree
Rate of change
Interfirm relationship
Cross-sectional interaction
Yokokai
JAALR1403
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