technology diffusion

Mari Sako* This paper analyses the structure and functions of suppliers ' associations (kyory-okukai) in the automobile industry in Japan. The bilateral assembler-supplier relationship has received much attention recently as a source of Japanese industrial competitiveness. However, this paper argues that the hitherto neglected area of intersupplier co-ordination in technology diffusion is at least as important as the bilateral assembler-supplier relationship in accounting for the overall performance of the Japanese automotive industry. On the basis of company visits and a large-scale survey of first-tier suppliers conducted by the author, the paper analyses the reasons why suppliers ' associations were established and why they continue to exist today, and their effects on economic performance. © 1996 Academic Press Limite