Permeable networks: A future option for the European and Japanese car industries

Abstract

Like their counterparts in Europe, the Japanese car manufacturers are facing recession. The Japanese have also been forced to rethink their previously successful global strategies. Frank-Jürgen Richter and Yukihiro Wakuta explore the Japanese problems and compare the car manufacturers' relationships with suppliers in Japan and Europe. Until recently, European car manufacturers favoured an open-network strategy, but are beginning to imitate the Japanese closed network system. The two authors, however, recommend a new alternative — permeable networks — as preferable to both.