The Dynamics of Interfirm Relationships

The Dynamics of Interfirm Relationships

Markets and Organization in Japan

Yongdo Kim

The goal of this pathbreaking volume is to relativize the experience of Japanese industries in terms of both location and time, exploring its similarities and differences with other countries and its unique relationship with the “global standard” of company performance set by US firms. By examining the intertwining of the organizational and market principles in interfirm relationships, this book tries to overcome the weaknesses of existing studies by looking beyond organizational principles, overturning stereotypes, and covering a wide range of industries.

Chapter 4: The market and organizational principles in the interfirm relationships of the Japanese LCD materials industry

Yongdo Kim

Subjects: business and management, asia business, knowledge management, organisational innovation

Extract

Various kinds of chemical materials are used to manufacture liquid-crystal displays (LCDs), known as LCD materials. The demand for LCD materials has increased since the 1990s due to the rapid increase of the digital camera, mobile phone and digital TV markets. Moreover, the purchasing cost of LCD materials became a high proportion of the manufacturing costs for LCD manufacturers. In particular, along with the enlarged size of the LCD panels, the proportion of purchasing cost of LCD materials to manufacturing costs of LCD increased. Therefore, this increase in demand and purchasing costs made LCD materials more important for LCD manufacturers. The LCD materials industry is different from the steel, machine tool and integrated circuit (IC) industries, as briefly described in the introduction. First, when compared to these industries, the LCD materials industry has a rather narrow scope since these materials are used almost exclusively for LCDs, whereas steel, machine tools and ICs have a wide range of applications. In addition, the LCD industry is relatively new considering that it was not established until the 1990s. Furthermore, as Japanese LCD companies were overtaken by South Korean and Taiwanese LCD companies in the 2000s, Japanese LCD materials firms have since then frequently transacted with foreign customers. As a result, there is only a short period when Japanese LCD materials companies depended largely on Japanese customers compared to the steel and machine tool industries.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information