The “keiretsu†structuring of assembler-supplier relations historically enabled Japanese auto assemblers to remain lean and flexible while enjoying a level of control over supply akin to that of vertical integration. Yet there is much talk currently of breakdown in keiretsu networks....

We examine the use of partial equity stakes and volume-based dependence balancing in Japanese automotive supply relationships. Building on Williamson's (1983) hostage model, we argue that the robustness of different types of hostage arrangement depends on the value, durability, and observability...

Since its first appearance, Williamson's (1983) hostage model of exchange has been highly influential in guiding analysis and interpretation of "non-standard" contracting arrangements. Prior research has developed a compelling case for the existence of hostage-type arrangements in many...

We examine the use of partial equity stakes and volume-based dependence balancing in Japanese automotive supply relationships. Building on Williamson's (1983) hostage model, we argue that the robustness of different types of hostage arrangement depends on the value, durability, and observability...