Abstract
The interorganizatinal network in Japanese Firms is characterized by long-term and fixed transactions which is the institutional arrangements. The reason is that many firms in Japan make relationship-specific investments because they place higher priorities on the downstream stage in the product developments, which increase productivites of developments, but restricts market chances. This investments are sunk. Implicit contracts such as business practices are used to arrange flexible relations of transactions. These excessive long-term transactions do not always have competitive advantages in the maturity.
