Determinants of Firm Boundaries: Empirical Analysis of the Japanese Auto Industry from 1984 to 2002

We have assessed the determinants of the choice of integration, relational contracting (keiretsu sourcing) and market sourcing by seven Japanese automobile manufacturers (OEMs) with respect to 54 components in light of contract economics. Our major findings are the following. First, the specificity and interdependency of a component significantly promotes vertical integration over keiretsu and keiretsu over market, consistent with transaction cost economics. Second, interdependency is a more important consideration for the former choice than for the latter choice, and the reverse is the case for specificity. This suggests that the hold-up risk due to specific investment can be often effectively controlled by a relational contracting based on keiretsu sourcing, while accommodating non-contractible design changes may often require vertical integration. Third, while higher testability of a component makes the effects of specificity significantly smaller, it also promotes the choice of keiretsu sourcing over market sourcing. One interpretation of this last result is that while higher testability improves the contractibility of the component with high specificity, it simultaneously enhances the advantage of keiretsu sourcing since it provides more opportunities for the supplier to explore new information for a collaborative exploitation with an OEM.

Short-term Venous Patency after Implantation of Permanent Pacemakers or Implantable Cardioverter Defibrillators

AbstractThere is little information on venous patency after pacing leads are inserted in veins during pacemaker or implantable cardioverter defibrillator (ICD) implantation. Herein we present a report on venous patency during the immediate postoperative period after permanent pacemaker or ICD implantation.Subjects and Methods: Twenty-five patients underwent a permanent pacemaker or ICD implantation by venous puncture method, and venography was performed 1 week later. We assessed the pacemaker-implantation side, approach used, implanted device, number of implanted leads, and clinical symptoms.Results: Narrowing of the vein was found in 14 patients (56%), including 7 patients (28%) with occlusion. Stenosis and occlusion were seen more in patients with left-sided implantation than those with right-sided implantation (71% vs. 25%, P < 0.05). ICD implantation was more frequently associated with venous stenosis or occlusion than pacemaker implantation (65% vs. 37.5%, P < 0.05). The approach used and the number of leads implanted did not correlate with venous stenosis or occlusion. Six of the 7 patients who developed complete occlusion showed clinical symptoms.Conclusion: Thrombus formation after pacemaker implantation can occur in the acute stage within 1 week. The incidence of venous stenosis or thrombus formation was higher with leftsided implantation and ICD

Keiretsu Divergence in the Japanese Automotive Industry: Why Have Some, But Not All, Gone?

The keiretsu relationship in the Japanese automotive industry was once admired as a source of competitive advantage. Yet, after the collapse of the bubble economy, arguments emerged that keiretsu was instead a source of weakness and its role had ended; in fact, some automakers dismantled their keiretsu relationships. Meanwhile, however, other automakers have maintained these relationships, and as such, discussions continue regarding whether or not keiretsu contributes to competitive advantage. In this study, we analyze some empirical data in order to explore the changes to keiretsu relationships in the Japanese automotive industry, and the reasons behind these changes. We propose that there are two types of keiretsu relationships, inward and outward keiretsu, where the former type is likely to be dismantled and the latter to be maintained. Future research agenda are also presented

Determinants of firm boundaries: Empirical analysis of the Japanese auto industry from 1984 to 2002

Using the framework of contract economics, we assess the determinants of the choice of vertical integration, relational contracting (keiretsu sourcing) or market sourcing by seven Japanese automobile manufacturers (OEMs) with respect to 54 components. Our major findings are as follows. First, the specificity of a component significantly promotes keiretsu over market sourcing. This effect declines with the testability of the component, consistent with transaction cost economics. Second, the interdependency of a component makes vertical integration significantly preferred to keiretsu sourcing, while the specificity of the component does not. These results suggest that the hold-up risk due to specific investment can often be effectively controlled by relational contracting based on keiretsu sourcing, while accommodating non-contractible design changes may often require vertical integration. Third, high testability of a component significantly promotes the choice of keiretsu over market sourcing. One interpretation of this result is that a keiretsu supplier may have both the incentive to gather information for quality improvement in an environment of high testability, and the incentive to share the information with the OEM for its implementation. J. Japanese Int. Economies 22 (2) (2008) 187-206.