The Myth of Japanese Buyer‐Supplier Relationships

Abstract

This paper examines whether or not the close relationship between buyers and suppliers in the Japanese automotive industry was also the norm in the electronic equipment and office machine industries. The results indicate that it was not. In fact, the level of integration between buyers and suppliers in Japan was even lower than in the U.S. American buyers were more likely than their Japanese counterparts to provide technical, financial, and managerial assistance. American buyers and suppliers were also more likely to participate in joint R&D projects. However, Japanese buyers placed greater emphasis upon trust‐building activities such as developing long‐term relationships, dedicating funds to customized investments, and making frequent face‐to‐face contact. The research findings point to the danger in generalizing about the entire Japanese economy based upon the record of the Japanese automotive keiretsu. At the very least, the Japanese electronic industry does appear to be open to outside suppliers.

Citation

Hirakubo, N., Kublin, M. and Topol, M.T. (2000), "The Myth of Japanese Buyer‐Supplier Relationships", American Journal of Business, Vol. 15 No. 2, pp. 85-92. https://doi.org/10.1108/19355181200000014