Theory & Research: Internet-based Entrepreneurial Networking to Evolve the Japanese Industrial Structure

The aim of this paper is to analyze the recent emergence of Internet-based entrepreneurial networks which are now causing an evolution of the Japanese industrial structure. The number of Internet-based entrepreneurial networks in Japan is rapidly growing, particularly because they are expected to provide new opportunities to business by linking various knowledge-bases beyond the borders of firms. They are considered as reliable and capable tools for promoting business start-ups. Through a comprehensive study of the Greater Boston area, Kanai (1995) discusses the evolution and function of personal networking which covers the area and pointed out that the personal networking plays an essential role for the inter-firm networking. Our intensive observations of the situations in Japan, however, suggest that though both the personal and inter-firm networking should be a driving device for evolution of the industrial structure, we should distinguish one from the other, since (1) they work at different level, and (2) the personal networking is critical to empowers each business start-up while the inter-firm networking assists firms to set up new business in practices. The main findings of this study are as follows: First, we found that entrepreneurial networkin