Abstract
This paper focuses on knowledge linkages among global firms by applying social network analysis to interorganizational structures using the data on the results of the introduction of foreign investment into Japanese firms. In addition, using covariance structure analysis, the study considers the relationship between the network indices that depend on knowledge linkages and the performance of firms. The following findings were obtained. First, 18 industry sectors can be classified into six groups based on network indices such as the number of components and the average degree. The structures in complex networks that consist of many Japanese and foreign firms can be contracted or reduced by block modeling, and groups of nodes like global hubs, which play a crucial role in knowledge linking, are extracted. Second, by simultaneous analysis of multiple groups, it is shown that a network advantage results in the improved performance of firms. Furthermore, the influence of a network advantage works strongly in specific industry sectors, such as pharmaceuticals, electric equipment, motor vehicles, and precision instruments, that require scientific and analytical knowledge.
