The Mechanisms Underlying Networks in Industrial Agglomerations: The Case of The Okayama Jeans Agglomeration

Abstract

This paper is an analysis of how the competitive advantages of industrial agglomerations can be strengthened by the networks that exist between the firms within them, using as a case study the Okayama jeans agglomeration. The manfacturers in this example are able to supply jeans flexibly, according to the demands of the market, through close−knit interactions between the branded jeans companies and their preferred specialist supplier companies within the agglomeration network. At the same time, similar interactions taking place across the entire network ensure a sustainable level of production is maintained for the agglomeration as a whole. Based on the above, we can formulate a hypothesis about the factors that help to support the advantages of industrial agglomerations.