Chapter

Interfirm Networks

W. Mark Fruin

in The Japanese Enterprise System

Published in print June 1994 | ISBN: 9780198288985
Published online November 2003 | e-ISBN: 9780191596285 | DOI: http://dx.doi.org/10.1093/0198288980.003.0008

Series: Clarendon Paperbacks

 Interfirm Networks

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This chapter uses the interfirm network model developed by the Toyota Motor Company and its suppliers as an example of multi‐layered managerial coordination and network organization‐based business strategy. It is argued that Toyota's strategy of producing high‐volume, high‐quality, low‐cost motor vehicles is directly related to the interfirm network model of organization that it has adopted. The three main sections of the chapter look at the multi‐layered managerial coordination at Toyota, the nature of interfirm relations in the Toyota group, and choice and interdependence.

Keywords: business strategy; choice; interfirm networks; interfirm relations; Japan; multi‐layered managerial coordination; organizational interdependence; Toyota

Chapter.  20714 words.  Illustrated.

Subjects: Business and Management

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