Business networks in japan supplier customer interaction in product development (routledge advances in asia pacific business)

Business Networks in Japan The remarkable success of Japanese industry has frequently been attributed to the inter-corporate alliances and networks that exist in the Japanese economic system Many commentators argue that it is these networks which have been key to both the rapid growth and success of Japanese industry Business Networks in Japan explores the creation of suppliercustomer relationships through case studies of two of Japan’s largest companies: the Toshiba Corporation and the Nippon Steel Corporation Jens Laage-Hellman examines the advantages that have been gained from cooperation with suppliers and customers in industrial markets and how these advantages have been utilized to develop and commercialize new products Importantly, the study reveals the differences and similarities in the networking and interacting behavior of Japanese and Western companies, highlighting the importance of the Japanese industrial culture in fully realizing the benefits of networks Jens Laage-Hellman is Associate Professor of Industrial Marketing at Chalmers University of Technology, Gothenburg, Sweden He is also affiliated with Uppsala University and IM-Gruppen Routledge Advances in Asia-Pacific Business Employment Relations in the Growing Asian Economies Edited by Anil Verma, Thomas A.Kochan and Russell D.Lansbury The Dynamics of Japanese Organizations Edited by Frank-Jürgen Richter Business Networks in Japan Supplier-customer interaction in product development Jens Laage-Hellman Business Relationships with East Asia The European experience Edited by Jim Slater and Roger Strange Business Networks in Japan Supplier-customer interaction in product development Jens Laage-Hellman London and New York First published 1997 by Routledge 11 New Fetter Lane, London EC4P 4EE Simultaneously published in the USA and Canada by Routledge 29 West 35th Street, New York, NY 10001 Routledge is an imprint of the Taylor & Francis Group This edition published in the Taylor & Francis e-Library, 2003 © 1997 Jens Laage-Hellman All rights reserved No part of this book may be reprinted or reproduced or utilized in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data Laage-Hellman, Jens Business networks in Japan: supplier-customer interaction in product development/Jens Laage-Hellman p cm Includes bibliographical references (p ) and index Industrial marketing—Japan Industrial procurement—Japan Business networks—Japan Strategic alliances (Business)—Japan Toshiba, Kabushiki Kaisha—Case studies Shin Nihon Seitetsu Kabushiki Kaisha—Case studies I Title HF5415 1263.L3 1997 658.8’3’30952–dc20 96–16039 CIP ISBN 0-203-44117-6 Master e-book ISBN ISBN 0-203-74941-3 (Adobe eReader Format) ISBN 0-415-14869-3 (Print Edition) Contents List of figures Preface vii ix Introduction 1.1 The importance of technological cooperation 1.2 Purpose of the study and content of the book 1 Technological development in industrial markets: an interaction and network approach 2.1 The concept of business relationships 2.2 A network-based framework for description and analysis of business relationships 2.3 Networks, relationships and technological development 26 Methodology 34 8 18 Development and commercialization of Zn-Fe alloy coated steel sheet for autobodies: the case of Nippon Steel 4.1 Introduction 4.2 Nippon Steel Corporation 4.3 Development of coated steel sheet for automotive bodies: historical background 4.4 The case of DUREXCELITE 4.5 Other developments 4.6 International outlook 4.7 Some comments on the Nippon Steel case 42 45 57 61 62 Development and commercialization of structural fine ceramics: the case of Toshiba 5.1 Introduction 65 65 v 37 37 37 vi Contents 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 Fine ceramics: definition and characteristics Toshiba Development of nitride-based ceramics in Toshiba Cummins Engine The agreement between Toshiba and Cummins Toshiba’s and Cummins’ joint development of wear-resistant silicon nitride components for diesel engines The current situation Some comments on the Toshiba case Case analysis 6.1 Degree of cooperation and integration with the network 6.2 Selection of partner 6.3 Management of cooperative relationships A concluding note on the interacting and networking behavior of Japanese companies 7.1 The Japanese industrial system and technological cooperation 7.2 The Japanese company and technological cooperation Notes Bibliography Index 65 68 73 82 88 90 97 100 102 102 109 118 131 133 142 150 154 159 Figures 2.1 2.2 2.3 2.4 2.5 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 5.1 5.2 5.3 5.4 5.5 5.6 5.7 6.1 6.2 Example of a company network Interaction model Schematic illustration of a network Network model Summary of the conceptual framework for analysis of inter-company relationships in industrial networks The organization of the Technical Development Bureau Protection methods against corrosion of automobile bodies Continuous galvanizing line No at Nagoya Works Electrolytic galvanizing line No at Nagoya Works Structure of two-layer Zn-Fe coating film Different steps in developing DUREXCELITE Changes in corrosion-resistant steel sheets for autobodies in Japan Targets of corrosion-resistant steel Manufacturing process for fine ceramics Organization of the Material & Components Group, Toshiba Toshiba’s R&D laboratories High-strength silicon nitride ceramics Development of nitride ceramics in Toshiba Conception of a ceramic diesel engine Ceramic links for diesel engines Nippon Steel’s joint R&D organization with large domestic customers The dual problem of exploiting the new technology outside the cooperative relationship vii 11 20 23 26 40 43 46–7 48–9 51 52 58 60 67 69 71 74 77 84 93 120 127 viii Figures 7.1 Groups of factors influencing the interaction and networking behavior of Japanese companies Different Toshiba units involved in the development of silicon nitride components 7.2 133 145 Preface In 1991 I was offered the opportunity to spend half a year as a visiting research fellow at Hitotsubashi University’s Institute of Business Research in Tokyo During the preceding ten years I had been involved in a number of research and consulting studies on marketing, purchasing and technological innovation in industrial markets I belonged to a group of researchers at Uppsala University who for many years had devoted themselves to the study of industrial (i.e., business-to-business) markets As a result of this research, which to a large extent had been carried out in cooperation with colleagues from Sweden and other European countries, a so-called interaction and network approach to the study of industrial markets had been developed I had used this approach as a theoretical framework for studies of technological innovation in several fields, such as specialty steel, biotechnology and medical devices In parallel, technological development in other industries had been investigated by some of my colleagues In accordance with the chosen framework the main theme in this research concerned how various ‘industrial actors’, such as selling and buying firms, interacted with each other in the context of technological innovation Some studies focused on the interaction taking place within individual business relationships, others focused on the pattern of technological development in networks of connected relationships Among other results, our research showed that for buyers and sellers of industrial goods technological cooperation with various kinds of partners is an important element in the development and commercialization of new products and new manufacturing processes Therefore, the issue of how companies, as sellers or buyers, should manage their external interaction with other ‘industrial actors’ in the surrounding network is an important and relevant field of study ix Notes INTRODUCTION By the term ‘industrial products’ we mean goods and services which are used by firms or organizations as input to their own operations (e.g., manufacturing or distribution) Raw or processed materials, components, and production equipment can be mentioned as three important categories of industrial goods (Håkansson, 1982b, pp 34–5) In a more recent study, it has been concluded that relationships between makers and users of machine tools are weaker in the US than in other countries This is said to be a key contributor to the decline of the American machine-tool industry and the users’ own lack of competitiveness in international markets (Dertouzos et al., 1989, p 100) TECHNOLOGICAL DEVELOPMENT IN INDUSTRIAL MARKETS This model is more thoroughly described in Laage-Hellman (1989, Ch 3) It is a further development of an earlier model for analyzing buyerseller relationships from a marketing and purchasing point of view (Håkansson, 1982b, Ch 2) This is said to characterize the Japanese society (Campbell et al., 1990, Appendix 2) This section is based on Håkansson and Snehota (1995, Ch 2) Håkansson’s (1989 and 1990) cross-sectional study of 123 Swedish industrial firms addresses these questions more explicitly and describes at an aggregated level the patterns of external collaboration that characterize these companies By relating the observed collaborative modes to variables describing other dimensions of corporate behavior and its environment, Håkansson draws a number of conclusions about how companies handle their technological development in relation to external firms and organizations 150 Notes 151 METHODOLOGY There are reasons to believe that differences between individual companies’ behavior within a country are at least as great as differences between countries DEVELOPMENT AND COMMERCIALIZATION OF Zn-Fe ALLOY COATED STEEL SHEET FOR AUTOBODIES In Håkansson (1987a) the term ‘mummify’ is used to name this type of behavior Waluszewski’s (1989) study of the emergence of a new pulpmaking technology gives several examples of equipment and knowledge that were reevaluated when it was discovered that they could be combined with other resources not available previously DEVELOPMENT AND COMMERCIALIZATION OF STRUCTURAL FINE CERAMICS ‘Fine ceramics’ is the English term customarily used in Japan ‘Advanced ceramics’ and ‘engineering ceramics’ are other common terms used to denote the same class of materials In connection with the hundred-year anniversary of the Ceramic Society of Japan in 1991, Dr Komeya received an award for his research on nitride ceramics It can be mentioned that Norton Company, the technically most advanced US manufacturer, chose not to sell its powder in order to protect its proprietary technology Part of this research was done within the frame of MITI’s Fine Ceramics Project These activities have not resulted in any practically useful patents, but have given an important contribution to the longterm knowledge development in the field of nitride ceramics The turbocharger rotor was first developed by Nissan and NGK Spark Plug and introduced in 1985 In Japan it is now produced by four companies and commercially used by three auto manufacturers (among which, one, Toyota, has in-house production) Using Wheelwright and Clark’s (1992) terminology for classifying development projects based on the degree of change in the product and the manufacturing process, the Nippon Steel case can be designated as an example of a ‘platform project’ Toshiba’s development of silicon nitride, on the other hand, belongs to the category of ‘breakthrough projects’ Such projects involve significant technological change and establish new core products and processes that differ fundamentally from previous generations CASE ANALYSIS The same cannot be said about consumer goods, where there is no need to establish the same type of activity links and resource ties between manufacturers and users 152 Notes There may exist a more developed research network among scientists, but this has not been investigated in the study Membership in an intermarket keiretsu can be defined, among other criteria, by a company being represented in the group’s presidents’ council (shacho-kai) Toshiba’s president sits on the Mitsui presidents’ council, which is called nimoku-kai The concept of keiretsu and its importance for understanding the organization of Japanese business is thoroughly discussed in Gerlach (1992b) If a company wants to commercialize a patent, it has to pay a licensing fee to a state-owned body However, the importance of domestic customers as R&D partners is decreasing for many of the large Swedish companies It is, among other reasons, the result of the ongoing internationalization of the R&D function (which is partly caused by the large number of foreign acquisitions made in the 1980s) ‘Tacit’ knowledge, to be distinguished from ‘explicit’ knowledge, is highly personal, hard to formalize, and difficult to communicate It is deeply rooted in action and in an individual’s commitment to a specific context, such as a particular technology, market or company Tacit knowledge partly consists of technical skills and know-how, partly of mental models, beliefs, and perspectives In other words, it has an important cognitive dimension which profoundly shapes how different individuals perceive the world around them (Nonaka, 1991, p 98) See Laage-Hellman (1989, Ch 4) for a more extensive discussion of technology-related network connections in industrial networks It can be noted that Nippon Steel also considers its large size to be advantageous when it comes to production Thanks to its large number of plants it is easier for Nippon Steel than it is for its competitors to keep production for different customers apart In Axelsson and Håkansson’s (1984) terms the purchasing departments of these companies are performing a ‘network role’ It means that they are consciously making their purchases so that the supply market structure develops in a direction which is in the long-term interest of the buying firm A CONCLUDING NOTE ON THE INTERACTING AND NETWORKING BEHAVIOR OF JAPANESE COMPANIES See Gerlach (1992b) for a comprehensive analysis of keiretsu and their role in the Japanese economy A literature survey of Japanese corporate networks and R&D has been made by Harryson (1995) A result of these structural changes in the Japanese subcontracting system is that the number of small and medium-sized manufacturing firms has declined since the mid-1980s (Tselichtchev, 1994, p 57) Notes 153 In North America the markets may be functioning somewhat differently; that is, the relationships between sellers and buyers tend to be more at arm’s length and short term However, there are reasons to believe that business relationships play a more important role, especially with regard to technological development, than has been attributed to them in the mainstream marketing literature More recently, it seems that the academic interest in studying buyer-seller relationships has increased in the US A stable network structure is not necessarily the opposite of rapid technological development On the contrary, the existence of longlasting relationships may in fact facilitate the technological exchange in the network and thereby create conditions which favor the development and introduction of new products For example, in the early 1980s Kyocera started cooperation with Isuzu Motors and some other users These cooperations resulted in a number of automotive components which are now in production Asahi Glass tied up with Mitsubishi Motors, and Hitachi Chemicals started development of a ceramic diesel engine together with Nissan Diesel Motor NGK Spark Plug developed a turbocharger rotor together with Nissan See, e.g., Takeuchi and Nonaka (1986, pp 139–40) and Imai et al (1988, pp 539–42) for a discussion of the use of self-organizing project teams by leading Japanese companies Based on the literature and widely accepted perceptions of Japanese management it can be questioned if this is typical of Japanese companies For example, the possibilities to create corporate research laboratories in Japan that are governed by the norms of open inquiry, individually directed research and publication have been questioned by critics arguing that the Japanese companies would have great difficulty in funding the long-term, highly speculative research that is necessary to produce basic knowledge and science-based innovation (Westney, 1991) The case also illustrates the advantage of having a large multidisciplinary R&D laboratory This kind of corporate laboratory is common among the big Japanese companies but in many cases has been abolished or downsized by Western companies, for example when decentralizing the R&D function It can be argued that some Western 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Westney, D.E., 1991, ‘The Evolution of Industrial R&D in Japanese Firms’, Paper presented at the Japan in a Global Economy Conference in Stockholm, Sweden, September 5–6 Wheelwright, S.C and Clark, K.B., 1992, ‘Creating Project Plans to Focus Product Development’, Harvard Business Review, March-April, pp 70–82 Index Achilladelis, B activities/activity links (business relationships) 19–26, 103, 106–8, 111–12, 119 activity coordination 29, 101, 104, 106, 122 actors/actor bonds (in business relationships) 14–15, 19–26, 29–30, 103–4, 112, 119 adaptations (in business relationships) 10 adiabatic diesel engine 83–7, 92, 111, 117, 146 Adiabatics Inc 86–7 Agency for Industrial Science and Technology (of MITI) 71 alumina 87 aluminium nitride 73 anti-trust legislation 17 Asahi Glass 81, 85, 87, 144 Asanuma, B 137 Axelsson, B 4, 16 Audi 61 Automotive Engineering 62 autonomous business units 8–9 ‘ball type’ ceramic components 94–5, 97 Ballon, R 136 Battelle Laboratories 85 Biemans, V.G business-to-business markets business relationships 4; concept of 8–18; functions 23–5; networkbased framework 18–26; networks and technology development 26–33; partner selection 32, 109–18; substance of 18–23 Business Week buyer-seller relationships see business relationships buyers (demanding customers) 139–41 Campbell, N.C.G 144 capital markets (in keiretsu) 135–6 case analysis: cooperation/integration with network 102–9; management of cooperative relationships 118–30; partner selection 109–18 case studies (methodology) 34–6 Caterpillar 95 ceramic diesel engine (development) 83–5 ceramic long links 92–3, 97 ceramics (Toshiba case study) 6, 34–6, 65–101, 105–8, 112–14, 116, 118, 125, 141, 145 ‘classic ceramics’ 66 coated steel sheet (Nippon Steel case study) 35, 37–64, 126, 143 commercial applications (nitride ceramics) 79–80 commercial exchange 11, 12, 13, 28 Commission on Industrial Productivity (MIT) 5, 62 Components Group (Cummins) 82–3, 94, 95 conflict and cooperation (in business relationships) 10, 15 continuous galvanizing line (CGL) 45, 46–7 cooperation: and conflict (business relationships) 10, 15; see also technological cooperation 159 160 Index cooperative relationships (management of) 118–30 coordination with internal activities and resources 123–5 corrosion protection (coated steel sheet) 35, 37–64, 102–5, 126, 143 cosmetic corrosion (autobodies) 43, 45, 50, 60 Cummins Engine Company 6, 35–6, 65, 80, 101, 146; agreement with Toshiba 88–97; case analysis 106–7, 111–17, 121–2, 124–5, 130; company history and background 82–3; current situation 97–100; development of ceramic diesel engine 83–5; development of wear-resistant components 87–8, 90–7; strategy change 85–7 customers: demanding 139–41; lead 30, 81, 110 Dai-Ichi Kangyo 134 Denki Kagaku Kogyo 81 Dertouzos, M.L 5, 62 Detroit Diesel 95 development/testing phase (DUREXCELITE) 51–4 development function 21, 22, 24–5 Diamond Shamrock 44 diesel engine: adiabatic 83–7, 92, 111, 117, 146; ceramic 83–5; wearresistant silicon nitride components 87–8, 90–7, 112, 116 Display Devices Laboratory (Toshiba) 72 Dosi, G DUREXCELITE 37, 61, 62, 64; case analysis 104–6, 109–10, 126–8; project development 45–57, 59 DURGRIP 44, 45 DURGRIP-E 46–7, 60 Easton, G 16 economics-oriented research 2–3 electrolytic galvanizing 48–9, 50, 54 Enceratec 35, 67, 83, 94–5, 96, 121 Energy Division (Toshiba) 79, 98 Engine Development Groups (Toshiba) 92, 124 Engine Group (Cummins) 93, 96 Engineering Research Association 81 environment (of business relationships) 16–18 ESK (Hoechst subsidiary) 98 exchange process 11–14 exchange relationships 8–9, 14–26 explicit knowledge 28, 121 Feldmühle 87 financial exchange 11, 12, 13 fine ceramics (Toshiba case study) 6, 34–6, 65–101, 105–8, 112–14, 116, 118, 125, 141, 145 Fine Ceramics Division (Toshiba) 72, 76, 105, 125, 145 Fine Ceramics Project (MITI) 71, 80–2, 141 Ford, D 4, Ford Motor Company 144 foreign partner, selection of 112–13 formal agreements 123–4 Freeman, C Fuji 134 Fuji Iron and Steel Company 38, 39 functional ceramics 66 functional fit (partner selection) 116 ‘fusion innovation’ 136, 137 Gadde, L.-E 8, galvanneated steel sheet 44–5, 50–1, 59–61, 126 Garrett 144 Gerlach, M.L 107, 135–6, 138 ‘grant back’ licensing agreements 82 GTE 87 Hada, Takashi 56, 57, 60 Håkansson, H 4, 7–10,16, 18, 23, 27, 63, 123 Hälldahl, L 70 Harryson, S 107, 137 Hitachi 41 Holden, N.J 139 Honda 59 horizontal cooperation 5–6 horizontal keiretsu 134, 137 human resource management system 142 Imai, K 4, 135, 137, 138, 147–8 industrial markets, technological development in 8–33 industrial network (environment) 16–18 industrial policy (Japan) 141–2 Index industrial system (Japan) 133–42 information sharing 28 Inland Steel 61 innovation process 13, 24, 26–7, 31, 137–8; international differences 131–2; partner selection 32, 109–18; redundancy and phase overlapping 146–9; technological cooperation 1–6 Inoue Japax Research 81 integration with network (case analysis) 102–9 interaction and network approach: behavior of Japanese companies 131–49; Japanese industrial system 133–42; technological development in industrial markets 8–33 intermarket keiretsu 134–6, 138 internal activities and resources, coordination with 123–5 internal characteristics (interaction model) 11, 14 international outlook (Nippon) 61–2 Ishiguro, Y 66, 99 Itoh, Kametaro 40, 45, 52 Japan Fine Ceramics Association 99 Japanese companies: interacting and networking behaviour 131–49; and technological cooperation 142–9 Japanese industrial policy 141–2 Japanese industrial system 133–42 Jinmyaku 139 job rotation 142, 147 Johanson, J joint agreements: ToshibaCummins 88–90; ToyotaNippon 55–6 joint development projects 21, 22, 62 kaizen 143 Kamo, Roy 83–5, 86, 87, 146 Kanamaru, Tatsuya 50 Kawasaki Heavy Industries 41 Kawasaki Steel 55, 59, 85, 103 Keihin Product Operations (Toshiba) 72 keiretsu 5, 107, 133–9, 148 161 Kimitsu Works (Nippon Steel) 38, 39, 59 Kimura, H 144 knowledge: creation 28–9, 101, 104, 106, 108, 121–3, 126, 148–9; exchange 12–13, 28; explicit 28, 121; tacit 13, 28, 121–2, 137, 147–8 Kobe Steel 55, 81, 103 Kodama, F 136 Komeya, Katsutoshi 73, 75, 78, 85, 145 Koransha 85 Kotler, P Koyo Seiko 80, 98, 111, 112 Krosaki 81 Kyocera 81, 85, 87–8, 98, 116–17, 144 kyoryokukai 138 Laage-Hellman, Jens 4, 7, 35, 63, 141 Langrish, J ‘lead customers’ 30, 81, 110 legal bonds 22 legal system 17 licensing agreements 82, 128–30 long links, ceramic 92–3, 97 longsightedness (Japanese companies) 143–4 Lucas 83 Lucas-Cockson 87 Lundgren, A 4, Lundvall, B.A Mack Trucks 95 Mainichi Industrial Technology Award 57 Mainichi Shimbun 57 Makino, N 136, 137 Malerba, F management: of cooperative relationship 118–30; issues (technological development) 31–3 Manufacturing Engineering Laboratory (Toshiba) 78 Marquis, D.G Material and Components Group (Toshiba) 68–9, 70, 94, 96, 97, 99 Materials Engineering Department (Cummins) 85, 90–2, 96, 124 Materials Research and Process Development Department (Toyota) 53 Matsushita Electric 44–5, 50, 126–7 Mazda 57, 59 162 Index Metal Products Division (Toshiba) 76, 78–81, 90, 92, 105, 110, 145 Metals and Ceramics Laboratory (Toshiba) 70, 72, 73 methodology 34–6 Military Systems (Cummins) 82 MIT Commission on Industrial Productivity 5, 62 MITI 41, 108; Agency for Industrial Science and Technology 71; Fine Ceramics Project 71, 80–2, 99, 141 Mitsubishi Heavy Industries 41, 134, 136 Mitsui Group 107, 113, 134, 136 multiple-business management plan (Nippon Steel) 38–9 Myers, S Nagoya Works (Nippon Steel) 38, 44–54 Nakatani, I 2, 107, 136, 137 National Steel (in USA) 44 nemawashi 142 network-based framework (business relationships) 18–26 network approach (environment) 16–18 network connections, technology exploitation and 125–30 networking behavior (Japanese companies) 131–49 networks 4–5, 11, 14, 15; cooperation and integration with 102–9; relationships and technological development 26–33; social, keiretsu and 134–9 New Material Engineering Laboratory (Toshiba) 70, 72, 81 NGK Insulators 81, 85, 98 NGK Spark Plug 81, 85, 144 Nippon Steel case study 81, 100; agreement with Toyota 6, 35–7, 44–5, 50–7, 59–64; case analysis 103–4, 108–10, 112, 114, 116, 119–20, 123, 125–30; comments 62–4; company background 37–42; development of coated steel sheet 42–5; DUREXCELITE project 45–57; international differences and similarities 131, 136–8, 140–1, 143; international outlook 61–2; methodology 35–6; other developments 57–61 Nissan 57, 59, 62–3, 110, 125, 144 nitride-based ceramics (development) 73–82 NKK 55, 59, 103 Nonaka, I 28, 121, 147, 149 Norton 87, 98, 144 NTK 85, 87, 98 Oita Works (Nippon Steel) 38 organizational fit (partner selection) 117 organizational structure 14–15 overlapping approach (redundancies) 146–9 partner selection (case analysis) 32, 109–18 Patten, James W 85–6, 88–9, 95 perforative corrosion (autobodies) 43, 53, 59–60 phase overlapping (redundancies) 146–9 Porsche 61 Power Systems (Cummins) 82 President’s Prize (Nippon Steel) 57 press formability (of galvannealed steel) 45, 53 productivity 24, 25–6 redundancy (in Japanese companies) 146–9 relationship effects see activity coordination; knowledge (creation); resource mobilization research: issues 31–3; methodology 34–6 research and development 3, 5, 142–3; business relationships 12, 14, 17, 21, 27–31; case analysis 104–6, 108–9, 112–15, 119–20; Nippon Steel 38–42, 50–3, 62–3, 104–5, 119–20; Toshiba 65, 67, 70–82, 99–100, 106 Research and Development Center (Toshiba) 70–82, 92, 108, 145 Research and Engineering Center (Nippon) 39 resource mobilization 29–30, 101,104, 106–8 resource ties 21–4, 26, 103, 106–7, 111–12, 119 Index resources: business relationships 18–19, 21–6; coordination with internal activities and 123–5 ringi 142 Rosenberg, Nathan Rosenthal 87 Rothwell, R routinization (business relationships) 10 Sakai, Masato 97, 99 Sanwa 134 SAPPHO project Science and Technology Agency 41 selection of partner (case analysis) 32, 109–18 Shaw, B Shimizu, Shogo 78, 79 Shinagawa Refractories 81 Showa Denko 81 Sialon 87 silicon carbide 81, 87 silicon nitride ceramics 34–5, 65–101, 106, 112, 114, 116, 144, 145 sintering process 73, 76–8, 82, 145 Snehota, I 8, 10, 16, 18 social exchange 11, 12–13 social interaction 10–13 social network, keiretsu and 134–9 sogo shosha 134 steel industry (corrosion protection) 35, 37–64, 102–5, 126, 143 Steel Research Laboratories 39–41, 42 strategic fit (partner selection) 116–17 structural fine ceramics 34–5, 65–101, 105–8, 136, 143–4 ‘study groups’ 139 study purpose 6–7 subcontractors 137, 138 Sumitomo Electrical Industries 81 Sumitomo Metal Industries 55, 103, 134 ‘supplier networks’ 137–8 Surface Treatment Research Laboratory (DUREXCELITE) 50, 52, 56 tacit knowledge 13, 28, 121–2, 137, 147–8 Takeuchi, H 121, 147 Tayo Seiko 57 team function (business relationships) 24 163 teamwork approach 144–6 Technical Development Bureau (Nippon Steel) 39, 40 technological cooperation 31–2; case analysis 102–9, 115–18; importance of 1–6; international differences 131–2; Japanese companies and 142–9; and Japanese industrial system 133–42 technological development: industrial markets 8–33; networks and relationships 26–33 technological exchange 2–6, 131, 140, 143; case analysis 112, 119–23, 125; effects of 27–30; exchange process 11–14; organization of 119–23 technology: exploitation (network connections) 125–30; licensing 82, 128–30; transfer 76, 78, 126, 129 Teramoto, Y testing phase (DUREXCELITE) 51–4 Thyssen 61 time fit (partner selection) 117–18 Toshiba case study 6; agreement with Cummins 88–97; case analysis 105–8, 110–18, 121–5, 129–30; comments 100–1; company background 68–72; Cummins Engine 82–8; current situation 97–100; definition/characteristic of fine ceramics 65–8; international differences/similarities 131, 136, 141, 143–5, 147; methodology 34–6; nitride-based ceramics 73–82 Toshiba Ballotini 69 Toshiba Ceramics 68–70, 72, 76, 78, 125 Toshiba Chemical Corporation 69 Toshiba Glass 69 Toshiba Silicon 69, 79 Toshiba Steel Tube 69 Toshiba Today 70 Toshiba Tungaloy 68–70, 72, 79 Toyoda Machine Works 81 Toyota Motor Corporation 81, 136, 137, 148; agreement with Nippon Steel 6, 35–7, 44–5, 50–7, 59–64; case analysis 104, 108–10, 112–13, 116, 125–9 trust 13, 118, 123, 137, 138, 139 Tselichtchev, I.S 138 Tsuge, Dr 85 turbocharger rotor 98 Turnbull, P 164 Index two-layered Zn-fe electroplated steel sheet see DUREXCELITE WELCOTE 59 Westinghouse 144 Valla, J.-P van Wolferen, K 139 vertical cooperation 5–6 vertical integration 133 vertical keiretsu 135, 136–7, 138 vertical specialization 134 von Hippel, E 3–4 Yawata Iron and Steel Company 38 Yawata Works (Nippon Steel) 38 yttria (ceramic development) 73, 75, 145 Wahiszewski, A 4, wear-resistant components (for diesel engines) 87–8, 90–7, 112, 116 zaibatsu 134 Zincrometal 44, 57 zirconia 87 Zn-Fe alloy coated steel sheet (Nippon Steel case study) 35, 37–64 Zn-Ni coated steel 50, 57, 58, 59, 61 ... Jens Business networks in Japan: supplier- customer interaction in product development/ Jens Laage-Hellman p cm Includes bibliographical references (p ) and index Industrial marketing Japan Industrial... Supplier- customer interaction in product development Jens Laage-Hellman Business Relationships with East Asia The European experience Edited by Jim Slater and Roger Strange Business Networks in Japan. .. the main empirical base of the present study This book is thus about supplier- customer interaction in product development and aims at increasing our understanding of this phenomenon The international