Networks, keiretsu, and locations of the Japanese electronics industry in Asia

It has been assumed that industrial networks, particularly of keiretsu-based organizations, play the major role in dictating the formation of industrial agglomerations for Japanese investment in overseas locations. In this paper, I examine whether currently available establishment data on Japanese f...

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Bibliographic Details
Published inEnvironment and planning. A Vol. 32; no. 2; pp. 223 - 244
Main Author Aoyama, Yuko
Format Journal Article
LanguageEnglish
Published London Pion Ltd, London 01.02.2000
Pion Ltd
SeriesEnvironment and Planning A
Subjects
Asia
Company management
Electronics
Foreign direct investment
Industrialization
Networks
Production structure
Production systems
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Summary:It has been assumed that industrial networks, particularly of keiretsu-based organizations, play the major role in dictating the formation of industrial agglomerations for Japanese investment in overseas locations. In this paper, I examine whether currently available establishment data on Japanese firms in Asia confirm this tendency for the electronics industry. The data show that actual reliance on keiretsu networks in Asia is relatively low, and keiretsu relationships are more likely to reflect a strong relationship at the global level, rather than relationships with suppliers within host countries. This result poses questions on the assumptions of network-based industrialization affecting locations of foreign direct investment.
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ISSN:0308-518X
1472-3409
DOI:10.1068/a31169