The theory of agglomeration proposed by Marshall is a functional theory, while that proposed by Weber is generative. The two theories must be integrated to view industrial agglomeration from a dynamic perspective. Hence, a literature review is performed from the functional perspective of industrial agglomeration in Japan. The results show that while the function from the perspective of parties receiving sales orders is discussed, there is no analysis yet from the perspective of parties placing orders. Therefore, there is a need to clarify the logic and formulate a theory of both parties by examining three separate groups: large companies, direct suppliers, and small/micro companies.