This article discusses the role of purchase and supply relationships in organizational learning and knowledge creation in Japan, and how these relations are changing. Based on interviews with managers, it presents case studies customer-supplier partnership of three major Japanese manufacturers: Hitachi, Matsushita and Toyota. Hitachi illustrates the case in some new way of the dominant paradigm, both long-term supply of high-trust relationships in Japan improve organizational knowledge creation, learning and innovation. Toyota and Matsushita cases show that the dynamics of learning for two very different kinds of changes in the networks of keiretsu supply. Toyota developing relationships with long-term partner Denso Corporation appears to fit the popular view that globalization and technological change are eroding Japanese keiretsu relationships. Case Matsushita, in contrast, shows that the same forces of change in other industrial plants may actually be strengthening keiretsu-style partnerships. "Hide
by James R. Lincoln, Christina L. Ahmadjian, Elliot Mason Source: California Management Review 25 pages. Publication Date: April 1, 1998. Prod. #: CMR118-PDF-ENG