Technological innovation has brought spatial reorganization of production systems in the electrom ics industry in Japan since the 1980s. Especially on the fringes of metropolitan regions, some main fac-tories owned by large corporations have made serious change in their factories' functions. Thus, it is necessary to disentangle linkages of subcontractors in those regions from a spatial viewpoint.
The purpose of this study was to elucidate the linkage system of a large electronics factory located in the fringe of the Keihin area, which consists of Tokyo, Kawasaki, Yokohama and their suburban re-gions, and which contains the largest concentration of electronics factories in Japan. The Ome plant of Company T, located in the western part of the Keihin area, was chosen because company T is one of the largest electronics manufacturers in Japan. To reveal linkages between the Ome plant and its first-tier subcontractors, and between first-tier and second-tier subcontractors, the author conducted interviews with executive officers at the Ome plant and at the headquarters of Company T, and questionnaire surveys at each first-tier subcontractor, in 1992. There were 45 first-tier subcontractors and 138 second-tier ones.
The Ome plant was established in 1968 to produce computers, but its intra-firm function has shifted from production to research and development. In order to keep producing at this site, the Ome plant was forced to rationalize its production. Parts requiring high skill levels were processed and assembled at the plant, and final assembly was performed. Numerous other processes and assem-blies that did not require high levels of skill depended on first-tier subcontractors. Company T's sub-sidiaries supplemented first-tier subcontractors within the linkage system of the Ome plant. The policy decision was that the higher value-added activities would remain within the Ome plant itself. First-tier subcontractors undertook less profitable process or products, Agreements with first-tier subcontractors served to lower variable costs and surplus investment in equipment. Company T's policy on the use of the subcontract system is to shift short-term costs to subcontractors by means of inter-subcontractor competition and intensification of orders to specific subcontractors.
Although many first-tier subcontractors are located in the fringe of Keihin Area, we found a some-what wide spatial dispersion among them. There were two regional differences in subcontracts: one was used in the Keihin area, where specialized processing techniques were used; the other was used in peripheral regions, where large-scale and standardized production was undertaken. Some spatially dispersed plants were established as branches by the first-tier subcontractors in the Keihin area. This fact indicates that Company T at Ome is responding to increasing demands without establishing a mass-production plants.
In considering transactional relationships, first-tier subcontractors did not always depend on the Ome plant for processing techniques. The subcontractors accumulate their own technology or tech-niques, and have many business relationships among themselves and with other large machinery firms located in the Keihin area. In the process of increasing transactions with large firms, the first-tier subcontractors spatially dispersed toward regions far from the Keihin area.
The first-tier subcontractors depended on second-tier subcontractors in many production processes. By intention of subcontract, second-tier linkages were divided into two categories: one was related to specialized techniques and equipment, the other to cheap labor cost. The former type of linkage was especially seen in orders to Keihin's second-tier subcontractors. This means that there was a strict dependence on an existing agglomerated area with technical processes in a lower tier of the pro-duction system.
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