Small Firm Networks – The Case of Industrial Districts in Japan

The present research examines small-firm networks in Japanese industrial districts. We propose and discuss the typology of these networks. Special attention is paid to horizontal networks, characterised by enhanced co-operation and competition between small firms. We analyse these networks from the perspective of the social embeddedness approach and the resource-based view. We argue that the horizontal form is the most appropriate network form for small-sized firms. In the concluding section some of the limits of the paper and future research directions are outlined.ou